Tremendous Growth

At the end of 2007, Russia marked its ninth straight year of growth, with an average of 7% annually – a rate that far surpasses average international growth. Among the fastest growing economies in Europe, at the end of 2007 the country boasted a massive GDP of $2.08 trillion (PPP) – the 7th highest in the world - and continues to attract immense levels of foreign investment.

The country's economy has never been healthier. Russia's enormous domestic market, vast natural resources, and superior workforce have sparked substantial foreign interest. Among many clear signs of Russia’s snowballing wealth is the recent report on the Forbes annual list of the world’s richest people. According to Forbes, Russia's billionaires nearly doubled their riches during the last year.

The combined net worth of Russia’s billionaires skyrocketed from $90.6 billion in 2005 to $172.1 billion in 2006. The new list, published in mid-March includes 33 Russians, seven of whom are newcomers. Twelve Russians are in the world's top 100 richest people - up from five last year.

Doing Business in Russia

Leading European, Asian and American companies have established operations in the industrial and consumer sectors in Moscow, St. Petersburg, and regional locations. Extremely strong investment growth has been seen in such areas as telecommunications, automobiles, computers, and energy.

Moscow and St. Petersburg are the most popular locales for foreign investors.

Although the way of life in Moscow is somewhat unique from other Russian regions, doing business there is very much the same as in the country’s other regions, with the obvious exception of increased volume levels.

Moscow attracted the most foreign direct investment in 2000, worth more than $1.47 billion. Other top regions for foreign investment were: Krasnodar Territory (almost $1 billion), Sakhalin ($246 million), Leningrad Oblast (just over $205 million), and Moscow Oblast (just under $205 million). Novosibirsk, Tyumen, and St. Petersburg city all received between $145 - $151 million.

Foreign direct investment in Russia has far outpaced foreign direct investment in the other ex-Soviet Newly Independent States.

One of the world’s most exciting cities, Moscow is particularly thrilling if you are involved in international financial services, as the city offers huge earnings potential. With over 100,000 expatriates and Russians wanting to invest, there is never a shortage of prospects.

In addition, even more so than in other expat locales, the majority of expats in Russia tend to hold very senior positions in firms there, commanding extremely high salaries, with loads of disposable income.

Buzzing Moscow

Moscow itself is a 24/7 buzzing city. In many ways, it is technologically advanced and in other ways seems years behind the rest of the world.

The city of Moscow, the country’s capital, serves as Russia’s primary political, economic, financial, educational and transportation centre. Located on the river Moskva, Moscow’s urban area comprises about one-tenth of the entire population, rendering it the most populous European city.

Moscow occupies a central position in all aspects of Russian life – historical, political, economic, cultural and spiritual. Lying at the heart of the densely populated Russian plain, it forms the historical nucleus of the Russian empire and houses the present government.

It is Russia’s largest city, with a population of close to 11 million, and is an industrial powerhouse in the middle of the country’s most developed region.

By nature, Russians are flexible, inventive, energetic, resourceful, and humorous. This is especially true of those Russians (usually young) who have decided to learn English and become qualified in a discipline required by a foreign company.

Day-to-day business affairs are not that different from those in the West, if perhaps a little more bureaucratic, but definitely less politically correct. Invoices are issued, they get paid (usually by bank transfer), a sandwich trolley comes round, all the office equipment is modern, telecommunications are efficient and quite cheap, everyone has mobiles, and so on.

Currency

The unit of currency in Russia is the ruble. It is illegal to conduct cash transactions in foreign currency with Russia. There are many ATM machines and all places of business accept most credit cards. Russia

Moscow = Much to Do!

The least of your worries as an IFA working in Moscow will be finding ways to spend your leisure time.

Moscow has always been a popular locale for the expat and holiday maker alike, largely because of the multitude of sights, sounds and exciting happenings there.

As well as fantastic restaurants, cafes and bars, the city offers world class performances of opera and ballet, in addition to many magnificent museums, breath-taking art galleries, and splendid churches and cathedrals.

Among the city’s many popular and unlimited landmarks and attractions:

• Kremlin
• Novodevichy Convent
• Red Square
• Church of the Ascension at Kolomenskoye
• Pushkin Museum of Fine Arts
• Moscow Zoo
• Bolshoi Theatre
• Saint Basil's Cathedral
• Iberian Gate and Chapel

Russians are well-known for their busy, enthusiastic and, sometimes, boisterous social lives. Expats in-the-know who live there report a lifestyle that is at once tremendously profitable from a financial standpoint and incredibly gratifying from a social perspective.

Moscow is definitely one of the top cities in the world for an expat IFA!