International HR - Advice for doing business in Russia

As a relocation destination, Russia will always fascinate – and infuriate. Paul Gates gets the insiders’ take on the secrets of getting the most out of any long-term assignment here.

While we in the West bemoan our economic woes, Russians are suffering their third financial crisis in 20 years. In the early 1990s, hyperinflation decimated the economy. Then, in 1998, Russia experienced a wave of bank collapses and a ruble devaluation.

It is still hard for foreign-owned companies to make money in Russia, and hard to get money out, but since Goldman Sachs named Russia as one of the four important BRIC countries (Brazil, Russia, India, China) in 2001, few companies ignore it. According to the Russo-British Chamber of Commerce (RBCC), the number-one UK business sector in Russia by investment is oil and gas, as represented by the presence of companies such as Shell. Second is the services sector, for example the ‘Big Four’ accountancy firms and legal partnerships, followed by manufacturing. There is growth in the retail sector and property services, via foreign businesses entering Russia both independently and in partnership with local organisations.

via International HR Information – Russia.