Agalarov: I’m having my business in Russia only

Crocus Group is one of Russia’s leading developers and a partner of the Ministry of Economic Development of the Russian Federation. Its business portfolio includes an international exhibition center, a 6000-seat concert venue, shopping malls, residential and office real estate and much more. The Voice of Russia talked to Aras Agalarov, General Director and President of Crocus Group. He was named Developer of the Year at Commercial Real Estate Awards 2011 and leads Forbes’ rating of commercial real estate owners in Russia.What makes doing business in Russia different from other countries, in your view?First of all, I need to say that I’m having my business only in Russia. I have nothing to compare it with. It’s hard to say but according to my understanding the procedures could be made a little bit easier.Have you ever considered expanding your business to international markets in the long term?No, for now I don’t have any plans like that.What about the investment climate in Russia? How attractive is it?Some legislative initiatives make it hard, for example, there is an attempt to raise taxes on real estate to adjust it to the world level. I don’t think it is a good initiative. In the west countries big chains, I’m talking about 5000 square meters and more, are usually free of paying this kind of tax, since they have a lot of employees. In any company like Auchan and Metro, there are more than thousand people working there.The BMW factory has the same amount of people. We are putting a lot of effort on the government level to attract BMW to our country, and the amount of people working for them is the same as in the store chains. If you look at the west experience, it’s quite hard to enroll people to work in the service sector right now: in trading, medicine, banking, tourism, hotels, etc. Heavy industry cannot provide a necessary amount of job places. If the sector is pressed even more by the taxes, we in our turn will not strive for the new job places.Are you planning to diversify your business? Maybe new restaurants?Restaurants are just a dressing for the main dish. Our business is rather diversified now because we have an exhibiting center, we have a shopping mall Tvoy dom, Crocus Expo, Vegas, Agalarov Estate. We are quiet diversified.Are there any sectors that could be of interest to you in the future?If what I have just mentioned is not enough, we have to go to raw materials market, coal and mineral extractions. Why not? Maybe. But not now.How tough is the competition in your sphere right now?Well, there are a lot of centers that are being built right now. We need to work more, use modern experience in terms of logistics, depending on what you are doing.

Read more: http://voiceofrussia.com/2013_11_20/I-m-having-my-business-only-in-Russia-Aras-Agalarov-0756/

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