INVESTMENT opportunities abound in Russia, but Asian investors are still hesitant to enter the market, according to Troika Dialog, the country's largest investment bank.

'There's a lack of understanding of how to do business in Russia; many things are not clear to international investors,' said Philippe Rakotovao, Troika head of international network, adding that the country's size also poses a challenge to foreigners aiming to set up businesses there.

However, the Russian government has, in recent years, created 'additional opportunities' for domestic and foreign investors, said Troika managing director Andrei Sharonov. For example, it has set up three economic zones for the high-tech, industrial, and leisure and tourism industries, which entitle investors to tax, custom or administrative benefits, he said.

And Troika, he added, also hopes to play a role in attracting investment into the country by 'partnering the government' and acting as a 'channel for international investors'.

Mr Rakotovao said that the bank has set up an infrastructure fund that invests mainly in utilities and logistics, and three Russia-based venture capital funds for the telecommunications, nanotechnology and biotechnology sectors that will offer 'good opportunities for Asians and Singaporeans'.

Troika will also open an office in Singapore to facilitate cross-border deals between Asia and Russia, he revealed, adding that a team is still being formed and the office will be up-and-running this month if all goes well.

He added: 'Trust has to be built; Russia has to be on the radar (as) Singaporeans are afraid to invest in Russia.'

Mr Rakotovao, Mr Sharonov and Troika chairman and chief executive officer Ruben Vardanian were speaking to the press ahead of the third Russia-Singapore Business Forum today.

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