A socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5,000 people working in Russia and abroad.

The Foundation works alongside various UN departments and other international organizations, and is building multi-format cooperation with 173 economic partners, including industrialists’ and entrepreneurs’ unions, financial, trade, and business associations from 78 countries worldwide, and 188 Russian public organizations, federal and legislative agencies, and federal subjects.

The Roscongress Foundation has Telegram channels in Russian t.me/Roscongress, English – t.me/RoscongressDirect, and Spanish t.me/RoscongressEsp. Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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Infrastructure investment. Construction

One of the reasons for recent bankruptcies and dissolutions of numerous major players of the Russian construction market was a severe shortage of public projects and contracts felt by the industry since 2014. The government is planning to start infrastructure construction on a massive scale in the coming six years but the InfraONE analysts consider it unlikely that the construction industry will be able to quickly adapt to the country’s new requirements and restore its lost capacities.

Although the volume of construction projects in nominal terms has grown nearly twofold in eight years, reaching 7.54 trillion rubles in 2017, the volume of works in real terms has been decreasing. According to InfraONE estimates, construction companies have managed to implement no more than 40-50% of all investments made in the country’s infrastructure in 2017, spending the remaining funds on needs which weren’t directly related to construction. This proportion is likely to last.

The construction market in Russia is notable for its non-uniformity, with the companies concentrated in a limited number of highly developed regions. The greatest share of all construction works carried out in Russia over the last 13 years (53.8%) is accounted for by as few as 13 regions. Most major contractors are located in these regions too.

The government pledges to invest an additional 3 to 6 trillion rubles in infrastructure before 2024; however, according to InfraONE estimates, construction companies in the infrastructure segment will be able to digest 2.8 trillion rubles at most, while contractors in related segments (oil and gas infrastructure and real estate construction) will implement another 2 trillion rubles. The most qualified segment of the Russian construction market comprises the top 170 construction companies and groups with a total revenue of around 3.55 trillion rubles in 2017, or 47% of the total volume of construction works. In actual fact, the qualified segment of the construction market is even narrower as 20.8% of the top 170 companies (in terms of revenue) is accounted for by non-market companies acting on behalf of parent monopolies and holdings or controlled by regional authorities or agencies. There are as few as 14 large and extra-large construction companies in Russia, while the highest total revenue is found in the segment of companies with yearly earnings of 10 to 50 billion rubles.

In addition, the authors mention that construction companies in Russia are operating with a marginal net profit, with the greatest losses shown by state-affiliated companies.

Analytics on the topic