Cheapest Labor Since Tsars Ruled Russia a Draw for Samsung, Ikea - Bloomberg - 0 views
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Cheapest Labor Since Tsars Ruled Russia a Draw for Samsung, Ikea
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A combination of the country’s worst currency crisis since 1998 and an unprecedented slide in real wages for most of the past two years has resulted in salaries that have become “broadly competitive” with China’s for the first time since the tsarist era ended a century ago, according to Renaissance Capital.
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“It won’t be an exaggeration to say that Russia may become the region’s factory,” said Yaroslav Lissovolik, chief economist at the Eurasian Development Bank. “The goal of our manufacturers in Russia is to create alliances with foreign companies, to become part of regional and global chains of added value and thus to increase not only the country’s competitive potential, but also its export potential.”