Interview with Vladimir Ismailov

Vladimir Ismailov, from the Association of European Businesses in Russia, joined Russia Today to discuss how excited business is about investment opportunities in Sochi.

Russia Today: How interesting is Sochi for European businesses?

Vladimir Ismailov: Thank you for hosting me. Sochi is very interesting for European businesses as any other regional city at the moment. We see a clear trend for businesses to go regional now. European businesses are not excluded from this process. Since the Olympics is going to turn out in a such a high profile, in terms of financing and government back-up project, obviously businesses, including European, would be looking for an opportunity.

RT: What kind of businesses are expected to benefit most in Sochi?

V.I.: Being based on the history, it is not obviously a secret anything to do with the real estate, utilities, construction, hotels, tourism, media, telecom these are probably the main sectors that would benefit from the project.

RT: When it is said that the development of such a huge resort as Sochi will definitely affect other areas and territories around. How do you see the future of the whole Krasnodar region in seven years time?

V.I.: It should be bright. In fact, the Association of European Businesses recently conducted a survey of our members, approximately 500 businesses. Right now Krasnodar region is the third on the list with obviously Moscow and Saint-Peterburg being the first. That is why we provide help to our members to go out to the Southern region and meet with the authorities. In fact, starting on Monday, for one week a delegation from the Association will be visiting Rostov-on-Don, Krasnodar and Sochi, meeting with the representative of the President in the Southern region, the Governor and the Mayor of Sochi, explore opportunities that the region represent to businesses. It is a second trip that our members make. Last year there was a trip to Vladikavkaz and it was very much successful so we are looking forward to the next trip.

RT: Sochi now is quite an expensive place. Many people are worried about prices in the future for services and real estate. So, how is it going to change?

V.I.: I'm not optimistic on that. As any other supply and demand situation, with the high demand and little supply prices normally are above average and I am afraid this is going to be a trend until the end of the Olympics. But the bright side that could be of this process that right after the Olympics the prices may come down a little bit. The question whether the prices go down to the level of a year ago or not is still open. I expect some adjustment will be made after the Games.   

RT: Can it be that hosting the Winter Olympics in Sochi could turn out to be an unprofitable experience?

V.I.: Based on my preliminary research it is a common opinion that all Olympic Games after Los Angeles 1984 were not loss-making at least. I think the success of any project depends on the commitment both from business and government. Also careful planning and perfect execution play an important role. There are too many factors to consider and rely upon to answer this question in a short time but I hope that the project will be a success.