Russian Environmental Industry E-mail
Wednesday, July 15, 2009

Short snapshot on Russian environmental industry

Russian Environmental Industry Moving Forward With Opportunity

Posted on: Monday, 23 July 2007

There are significant changes in the policy and business environment of the Russian environmental industry. As the economy gradually opens to foreign participants, the policy framework and implementation mechanisms are being revamped and fine-tuned. Cooperation with other countries and anticipated political dialogues are likely to expand opportunities in the Russian environmental industry. The government is also committed to improve the water and wastewater treatment facilities in the country.

Since the year 2000, there has been an increasing trend of private companies entering contract, either by forming public-private partnerships or build-own operate transfer contracts with Russian vodokanals (water utilities). Currently, foreign companies also penetrate the market by registering Russian subsidiaries, establishing local facilities, entering joint ventures, or licensing contracts with domestic participants.

This briefing will benefit environment equipment manufacturers and distributors, particularly in the air pollution control, solid waste treatment equipment and water and wastewater treatment equipment sub segment. It will also benefit companies offering environmental services by discussing emerging trends and providing information and forward projections for the Russian environmental industry.

Highlights of the briefing include the following: an analysis of political and policy support received by the Russian environmental industry, analysis of Russian economy and impact on environmental industry segments, assessment of infrastructural developments, as well as identification of significant growth opportunities for industry participants.

"The Russian environmental industry is in for a gradual overhaul," observes Frost & Sullivan Research Analyst Archana Amarnath. "The implementation mechanisms ensuring compliance to various policies are expected to become stricter. Adherence to emission limit values (ELVs) and environmental quality standards (EQSs) will be stressed upon. Fiscal incentives and trade tariffs for environmental equipment are to become more attractive for foreign participants. However, the most dynamic change will be the proposed infrastructural changes in the water and wastewater and solid waste disposal facilities. Most of the vodokanals are tying up with local and foreign participants to increase the quality of the infrastructure to achieve the environmental standard set by the government."

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