Australia: A Destination Of Choice For Russian Investors

Australia's strong economy and opportunities in the resource sector put it in the box seat to be a destination of choice for Russian investors, said Australian Minister for Industry, Tourism and Resources Ian Macfarlane yesterday. In a press release from the Department of Industry, Tourism and Resources, Macfarlane noted a meeting with a high-level Russian trade delegation, as part of the Russia-Australia Business Forum in Brisbane, adding that while Russian businesses have already invested between $5-6 billion in Australia, there is room for growth. "Russian investment in Australia is extremely strategic and highly valued. We are encouraged that having established investment bases in Australia, many companies are looking to expand their Australian resource interests. "For example, aluminium producer UC Rusal's 20 per cent holding in Queensland Alumina means it is exploring other options for an aluminium smelter and a power generation plant using alternative fuels," he said. Macfarlane said with Australia's low sovereign risk and expertise in mining, there are other reasons besides mining the raw resource for Russian to invest in. "Russian companies are securing natural resources abroad but they are also looking to invest in mining technology and services. Given Australia's track record in world-leading technology and services, it puts us in the box seat as an investment destination of choice. "Opportunities for further investment exist in nickel and steel, as well as in exploration and production of oil and gas resources and low emission energy technologies." A spin-off from the resource sector that could provide further opportunities for Russian investors was in infrastructure, where Australian and state governments are slated to build over $100 billion worth of projects by the end of 2013-14. "There are significant opportunities for overseas firms to participate in major infrastructure projects across Australia through public-private partnerships. "We are keen to increase Australian capacity to build very large-scale commercial and engineering projects and provide construction industry expertise like engineering and project management," Macfarlane said.