Wednesday, August 23, 2017

Finnish export to Russia increases amid economic recession

A May report showed Finnish exports to Russia are on the rise, while exports to other European nations are declining, due in large part to Russia's relative resiliency during the period of economic recession in Europe.

Finnish company Kesko, for example, opened its second supermarket in Russia and has made plans to open eight more by 2016. Similarly, Stockmann, a Finnish grocer, has claimed a rise in profits in its Russian operations, while its domestic profits dwindle, Barentsnova reports.

Nokian, a Finnish tire manufacturer, has opened a factory in St. Petersburg this year and is working to corner the Russian market in the face of decreased domestic spending. Nokian, and many other Finnish companies following its lead, are enjoying success in Russia due to the excellent reputation Finnish products have in Russia.

Since 2008, Finnish companies have invested nearly $16 billion in their Russian operations and into regional Russian development efforts, according to Barentsnova.