|Population||ca 143.6 million (2013)|
|Currency||Russian rouble (RUB)|
|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%|
|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.