All About the Russian Boat Market

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Today lets take a look at some of the other international countries that seem to be giving India a run for their money where yachting is concerned. No! We are not talking about China… The India China comparison has been done endlessly by many. We are talking about ‘Russia’ which boasts of one of the biggest billionaires in the world (Roman Ambrovich) and is also home to over 100 billionaires according to the Forbes.

Roman Ambrovich has always been recognized worldwide for his passion and collection of super yachts. Its not just him anymore, Russians have taken to yachting in a big way by contributing to almost 30% of the luxury yachts produced worldwide which means that 1 out of 3 megayachts are bought by a Russian. The 30% mark did not take long to reach and was achieved within 3 yrs flat wherein in 2005 Russians contributed to only 6% of all the luxury yachts worldwide. The current global credit crunch does not seem to have affected the Russian yacht buyers as the industry is increasing about 50-60% YOY.


To mention some concerns, the custom duties in Russia are much higher than India wherein the import duties can be upto 40-41% of the cost of the boat. The boating infrastructure which includes dock space and fueling stations is not in place yet and is still very nascent much like India. "Russia has many beautiful places to take a yacht to, but there is nowhere to moor the boats and no easy access to fuel," said Alexei Gorsky, director of Premium Yachts, a Russian company that has been selling luxury Italian yachts for five years.


We feel that Roman Ambrovich could be a key factor in propelling the yachting culture in Russia considering he has a collection of 3 amazing yachts. it could be mere imitation of the rich tycoon due to which exportation of Italian yachts to Russia amounted to 11.8 million euros, a growth of 143% over the previous year.



"Certainly, such duties essentially reduce the opportunity for Russians to buy boats, especially yachts," said Andrey Boyko, director of Bure vestnik, the largest importer of yachts in Russia.

The 12th Moscow International Boat Show (MIBS 2006) enjoyed a 21% increase over the previous year. More than 250 exhibitors, 10% of them first time participants. 80% were foreign companies from 15 countries including the UK, Poland, Finland and Turkey.



"This marina is a good example of the business' growth," said Moscow boat show director Tamara Lukyanenko. "It's only a year old, but all of the 100 berths have been sold out already," she said. The country's yacht business is growing by 30 to 40 percent every year, she added. Foreign firms are also beginning to target Russians as they believe they will make up a significant part of the market in the near future.



Although Russians seem to be buying yachts rapidly it still remains a privilege to a few unlike the USA where a yacht can be fond in galore. The boat clubs have started popping up in Russia and it is only recently that a yachting culture is starting to cultivate among the yacht owners. For some, yachts are more than a status symbol. Some spend the summer season living in them or even conducting business on the water.


Many Russians have now started buying waterfront properties and in the process are looking to purchase boats to the tune of 200,000 euros. This is one similarity with India where one has observed increase of boats in water front areas. Alibaugh (near Mumbai) is one such example. To conclude we would like to mention that although Russia seems to be a big prospective market, the recent war with Georgia could cause distress and discomfort among international companies exporting to Russia.