Russia

russia

Quick facts:

Territory 17,098,242 km2
Population ca 143.6 million (2013)
Currency Russian rouble (RUB)
Capital Moscow
Official language Russian
Memberships The United Nations Security Council, the G8, G20, the Council of Europe, the Asia-Pacific Economic Cooperation, OSCE, WTO, the Commonwealth of Independent States, Eurasian Group (EAG). To join the OECD in 2015.
Real GDP per capita  12,700 USD / 9,577 EUR (06.2012-06.2013)
Growth of GDP, % 4.2% in 2011, 3.4% in 2012. Forecast: 1.8% in 2013, 3% in 2014, 3.1% in 2015, 3.3% in 2016
Average gross salary 29,640 RUB (October 2013)
VAT rate 18% – general rate;  reduced rates: 10% and 0%
Company Income Tax 20% general rate; reduced rates: 0%, 9% and 15%. Incomes of foreign representations that are not originating from Russia – 10%, 20%
Phone code +7
Top domain .ru /.su /.рф

Russia is the largest country in the world by land mass and has the world’s eighth-largest population. Russia has been an independent country since the dissolution of the Soviet Union in December 1991. In the 1990’s the country underwent a process of economic reform and privatisation of industry to become a globally integrated open-market economy.   Today, most of Russian industries, except for strategic sectors such as Military & Defence and Energy, are privatised.

Russia is one of the world’s richest countries in terms of the natural resources it possesses: natural gas, oil and minerals. In 2011 it became the world’s leading producer of oil and the 2nd largest producer of natural gas. Russia also has a very strong metals sector and is one of the world’s top producers and exporters of metals, mainly, steel and primary aluminium.

In the pre-crisis period, the Russian GDP grew at 6% per year on average. Favourable changes took place in processing industries and infrastructure, manufacture of machines and equipment, metallurgy, pulp-and-paper and chemical industries, food production, pipeline transit and in communication sectors. The country has been running a number of state programs to support the development of its key priority industries.

Based on the results of 2008, Russia’s economy grew by 5.6%. In 2009 the crisis bore its full effect facilitating a 7.9% decline of the GDP. At the end of 2009, thanks to the Government’s anti-crisis measures, the Russian economy started to recover and in 2011 it grew by 4.2%. In 2012 the growth slowed down to 3.4% and in 2013 declined further to 1.8%, due to a number of domestic and external factors including weak investment activity, low demand on commodity exports, an overall decrease of global trade, a low growth of domestic consumption and a hard labour market with capacity utilisation close to 80%, a 5.5% unemployment rate and a significant shortage in the labour force.

During 2014-2016, Russia’s economy is expected to grow at 3-3.3% per year. The main factors that will stimulate the growth will be increased export volumes and FDIs, as well as a revival of the global economy, and stable oil prices.

According to the World Bank “Doing Business” ranking, Russia ranks 112th out of 183 listed countries. Although Russia still remains a challenging business environment, the main issues being protection of property rights, the state’s heavy interference in the private sector, and corruption, a great number of foreign companies are still looking to establish a presence in this huge market.

We have conducted various market research and business partner search projects in Russia across a number of sectors. Please visit Our Experience section to see the specific industries of our expertise.