Our above-ground risk assessment of the business environment in a remote region of Russia enabled a multinational mining client to fully understand the risks and opportunities of investment.
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Challenge
In the heart of coal rich Kuzbass region, deep in Russia’s Siberian heartland, it is particularly difficult for investors to accurately assess the operational risk environment, due to the remote location and a highly authoritarian local government. As part of their engagement in the region our client needed a better understanding of local conditions to base their investment decisions on.
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Solution
Through on-the-ground research trips, data, and using a combination of specialist contacts and information gleaned from local Russian language media, we developed a bespoke risk assessment on the site for our client. We isolated a number of particularly severe regional risk factors, as well as national trends impacting the potential project to provide a clear picture of the local operating environment.
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Outcome
In addition to external factors, such as local organized crime, the risk assessment highlighted reputational and compliance risks, such as poor enforcement of safety standards and labour rights. Equipped with these insights our client was able to take make informed commercial decisions and take precautionary measures to mitigate against these risks, and ensure a successful engagement.
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