Russian business flaunts its potential

Russia is declaring itself open for business

Russian businesses have arrived in the UK on a grand scale, selling their potential to investors.

This week, London is host to Russia's biggest-ever trade fair, carrying the slogan "Russia is open to the world".

Mr Trovimov is hoping to attract more than 3,000 UK firms

More than 150 companies are represented, as well as 17 ministries and 25 regions.

Sergei Trovimov, the exhibition organiser, told BBC News Online that he was hoping to attract at least 3,000 British companies to the event.

And he said the trade fair was a two-way ticket, allowing investors to see the potential of Russia but also giving Russian firms an opening into the UK.

All sizes

The UK is one of five major trade partners with Russia, with turnover between the two countries estimated at about $4.3bn (£2.7bn) a year.

It is also one of the largest investors in the Russia economy, accounting for 7% of total foreign investments.

Amongst the biggest firms on display are oil giant Yukos, diamond firm Alrosa and the only wholly Russian mobile phone firm, Megafon.

There are also a host of smaller firms, including individuals showcasing handmade jewellery and woodwork.

Worldwide tour

Foreign direct investment, or FDI, in Russia is tiny compared with that in other East European countries - and the situation is getting worse.

FDI fell 25% in the first half of this year to a paltry $1.1bn, according to figures released last month by the Central Bank of Russia.

Russia is also trying desperately to push through legislative reform programme in order to cut red tape.

London is the first leg in a tour that proceeds to Berlin in February and New York in March.

The exhibition is also designed to demonstrate the cultural potential of Russia, and is timed to celebrate the 300th anniversary of the building of St Petersburg.