Foreign Direct Investment Strategies in Environmental Services in Russia

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The research examines Russian water business landscape attractive to enter for international companies, taking all influences that are related to a market entry strategy, e.g. political stability, regulations, infrastructure, etc. into account. FDI market entry strategy is the most promising to enter the Southern Russian water business market. The methodology that is used in this research is based on the mix methods i.e. qualitative as well as of quantitative. Qualitative research is based on the analysis of the prior literature. On the other hand interviews are conducted with the managerial positions of different SMEs (small medium size) organizations as well as of different multinationals. The nature of this type of interview based research is exploratory and open-ended. The questionnaire has been designed on the basis of aims and objectives. The questions that were asked to the sample are uniform. The findings are based on the basis of the response of the respondents which is suggested that it is quiet very important to prepare and adopt a national water strategy of the Russian Federation in 2020. The collection of these measures and actions should lead to the achievement of strategic goals and tactical objectives in the field of water management and protection of water resources of the Russian Federation. Investment research process is increasingly rigorous site selection teams typically consider hundreds of factors to ensure that new investment to provide the most optimal combination of cost and value. Finally, the research may concluded as the investment options, some elements can easily be quantified, For example, the basic direct costs, including labor costs, taxes and the cost of construction or lease. Other elements require more qualitative Judgments, such as the assessment of road conditions, efficiency of government services and so on.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Research1

Hypothesis1

Aims and Objectives2

Importance of the Research2

Business:2

Academic:3

Social:3

Environmental:4

Personal:4

Academic Literature Basis of The Research5

Research Question6

Theoretical Frame work6

CHAPTER 2: LITERATURE SURVEY9

The Discharge Of Wastewater Into Rivers And Lakes Of Russia9

Foreign investments12

Environmental Protection and Health12

Russian Businesses Fail To Adapt To Market Economy13

WTO Membership Pending14

Onerous Regulations Deter Would-Be Investors14

New Laws Encourage Investment15

CHAPTER 03: RESEARCH METHODOLOGY17

Research Method17

Desk Research18

Qualitative Research (Interviews)18

Sampling19

Quantitative Research20

CHAPTER 04: RESULTS AND ANALYSIS21

Southwest Waste Water Treatment Plant21

Russian Water Management System22

FDI Market Entry Strategy25

Interview Analysis40

CHAPTER 6: CONCLUSIONS AND RECOMMENDATION45

Future Research Implications46

BIBLIOGRAPHY47

APPENDICES52

Questionnaire52

Table 0155

Table 0255

CHAPTER 1: INTRODUCTION

Background of the Research

Foreign Direct Investment (FDI) inflows into Russia have picked up strongly since 2004. Investors are attracted by Russia's strong macroeconomic fundamentals and the rapid expansion of its large consumer market. Despite concerns about increased state intervention in certain strategic sectors ...