GENERAL MARKET INFORMATION
For almost six years now, the Russian economy has been in a buoyant growth phase. Real GDP expanded by 7.3% in 2003 and due to the crude-oil boom of recent years the government budget has benefited (targeted surplus in 2004 0.5% of GDP). Fuelled by the petrochemical business, foreign trade has continued to grow at a dynamic pace: large investments are planned in both the oil/mining industry and in building construction. Due to further privatisation of the property market investment volumes in 2001 reached 26.6 billion USD and this figure is expected to rise further. There is also a need to upgrade technology and improve efficiency, which is giving rise to a growing demand for international machines, heavy construction equipment and material.

The building construction market is growing (+5 % growth p.a.)

• A total of 41.2 mio square metres of new buildings went into operation
  in Russia in 2001
• 77 % for residential housing, 6 % industry, 5 % commercial buildings, 3 % rural economy, 9 % others
• Centres for residential housing : Moscow and Moscow district (21 %),
  St. Petersburg (6 %), Tatarstan (5 %)
• Non-residential housing is a growth driver in building construction (growth rate 2000-2001 16 %), thereof industrial buildings (+27 %) and commercial buildings (+24 %) have the highest growth rates
• Building construction is mainly in private hands in Russia 69 % of building contracts volume (total 26.6 billion USD in 2001) was realized by wholly private developers, 19 % by private-governmental partnerships