Business Opportunities In Russia

Traditional Russian business - venikRussia was the biggest part of the former Soviet Union. Even today, it covers the largest land mass of any country in the world. It stretches across both the Asian and European continents and, although 80% of the population is ethnically Russian, it is racially diverse and home to many multicultural groups. It spans 8 time zones.

Russia is now a federal state of 89 regions. In 1991 an unsuccessful coup led to the disintegration of the Soviet Union and the Communist Party rule. Individual republics began to declare independence from the Kremlin authorities. Russia is a collection of often-diverse regions with continuing struggles for control between central and regional politicians. Vladimir Putin has striven to consolidate the power http://www.russiawithoutborders.com of central government’s executive powers.

The Russian economy has heavily dependent on natural resources, particularly oil. Recent booming oil prices have supported economic performance, but reliance on volatile natural resources is risky. Short to medium term the risks are few with significant oil reserves available to bail out the economy in the event of any turn down in performance. However, Russian business is still over regulated and the Government’s preparedness to roll out reforms and success in their fiscal management is key to long-term prosperity.

Russia has experienced some significant technological developments since the 1990’s. Whilst rural parts of the country are still underdeveloped, the urban hubs of Moscow and St. Petersburg now have well-established systems. There are over 20 http://www.russiawithoutborders.com million land line telephones and over 30 million mobile phone users. Internet and email services are gradually improving as extensive work continues on the telecommunications infrastructure.

Look at some points accepting them give you easier ways for your business in Russia:

Ensure appropriate controls are in place and overseen regularly. Ensure proper audit trails.

Building relationships with trustworthy local officials is important in Russia. Make sure that the authorities, central, local and regional, are kept abreast of your plans.

Follow all of the legislative and taxation rules within the country. Be specific, detailed and straightforward.

Pay all taxes and bear no heed to those advising you of various loopholes. The Russian Government is quite prepared to make examples of foreign http://www.russiawithoutborders.com businesses and the penalties can be severe.

Take a ‘no bribe’ stance early and stick to it whatever the temptation. Companies that are scrupulously ‘clean’ find that the approaches dry up after a while, whilst those that are not tend to find the requests and amounts increase!

Promote yourself. Invest in your brand and be prepared to communicate inside and outside your organization as well as with the relevant authorities.


Localize all communications into Russian. Even if the recipient speaks English, you will gain credibility by translating.

The choice of entry strategy with any new market is key, but particularly in Russia. If yours is merely a sales strategy, take care in selecting the right distribution partner. If you http://www.russiawithoutborders.com intend to have production capabilities in the region, Greenfield options, with support, are plentiful but so are Russian businesses for sale.

Take care over the recruitment of talented local people and support them with quality individuals within your own organization.

Be patient. Russia retains a much more hierarchical structure than we are used to. This tends to put delays in systems or even simple replies to emails.
business discussion in Russia - Russian bathroom
As Russia continues to develop post Soviet Union break-up, there are significant opportunities for EU and US corporations. Difficulties remain over the move to free-market economies and the central government continue to wrestle with the twin challenges of bureaucracy and corruption. The economy remains strong. Although over-exposed to natural resources. There are http://www.russiawithoutborders.com moves to drive inward investment and it can be reasonably assumed that these will continue and expand.

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6 thoughts on “Business Opportunities In Russia

  1. Hey! Do you use Twitter? I’d like to follow you if that would be ok. I’m undoubtedly enjoying your blog and look forward to new posts.

  2. I really want to migrate from Canada and work in Russia. I have a double degree in business and russian language which I am proficient in. I also have job experience but so far my work has been based in Canada. I don’t know what kinds of jobs will be available to me as a person who doesn’t have Russian university education. Does anyone have an idea of how I can get started? Thank you for the replies if there would be any :)

  3. If you can form a business arrangement with the Russia business that is one more stream of profit that can be applied to doing similar efforts in war torn countries such as Afghanistan, Iraq, Lebanon, Jordan, Israel, China, Korea, Vietnam, Pakistan, Uzbekistan.

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