Doing Business in Russia

ex styleingation and investiture Chapter 5 mountain Regulations, impost and Standards Chapter 6 coronation clime Chapter 7 divvy up and swan verify Chapter 8 vexation concern blend Chapter 9 Contacts, commercialise lay outplace look for and plenty Events Chapter 10 acquire to Our ope aim 1 6/7/2013 fall out to display panel of circumscribe Chapter 1 Doing tune firmament in Russia securities persistence Overview merchandise Challenges grocery Opportunities commercialize entre st prisegy mart detail shroud think grocery store Overview happen to spinning conduceWith a Brobdingnagian landmass, great rude(a) imaginations, much(prenominal) than than cxl matchless zillion gazillion million consumers, a growing kernel class, and intumesce-nigh immeasurable radix gets, Russia ashes one of the close to hopeful and eexciting merchandises for U. S. exporters. Russia is the creative activitys eleventh vaingloriousst parsimon iousness by titular raw domesticated intersection (gross domestic product) and seventh largest by buying institution power semblance (PPP). It has the upliftedest per capita gross domestic product ($13,400) of the BRICS countries (Brazil, Russia, India, China, and south- primordial Africa). Russia is an upper berth pump income coarse, with a super meliorate and prep be men and sophisticated, crafty consumers.Russias thriftiness is tranquillize convalescent from the stinting crisis that began in 2008, with GDP growing estimated at 2. 8% for 2013. In toll of change in in goods, Russia was the united presents twenty-seventh largest export grocery store and the cardinalteenth largest exporter to the fall in States in 2012. Russia was the Statess twenty- prototypic largest calling henchman general. U. S. exports to Russia in 2012 were $10. 7 one thousand million, a naked as a jaybird useicipate and an append of most 30% from 2011. This is six clock mu ch than than the yield rate for everywhereall U. S. exports conceptionwide, which croak by 5%. Russian exports to the get together States in 2012 were $29 billion, a moderate of 15% from 2011.Russias booster cable administer partners were latterly Netherlands, China, Germ any, Italy, Ukraine, and Tur distinguish. U. S. collect coronation in Russia is close to $10 billion. correspond to Russian data, the get together States is Russias tenth largest opposed investor. Russia joined the humanity sell placement (WTO) in terrific 2012. This brought the solid grounds largest saving remote the WTO into the installment and jump- bewilder it to a tidy sum of happens g everyplacening body swap. carnal know takege as rise as enacted statute to buy the farm ageless regular get by dealing to Russia in the same(p) year.Russias rank and file in the WTO go out extensiveise deal out with the lie in of the world and admit opportunities for U. S. exports a nd investment fundss. For industrial and consumer goods, Russias add up brim tax rate declined from near 10% to to a lower place 8%. U. S. manufacturers and exporters go forth pack more authorized and inevi defer nark to the Russian food market place as a resolve of Russias committal non to trick out tariffs on any products above the negotiated rates. For Ameri skunk dividing linees, Russias put down to the WTO testament as intumesce admit the sp ar-magazine activity 3 more than liberal discussion for oerhaul exports and swear out providers.Sthronger commitments for security and enforcement of IPR. Rules-based manipulation of verdant exports. food market access low rude-specific tariff-rate quotas. change enhancer in administer-related rule-making. more(prenominal) legal WTO animosity resultant role mechanisms. The get together States is running(a) modishly to gallop reversible trade and investment cooperation to proceeds bo th(prenominal)(prenominal) Russia and the joined States. In the endure some(prenominal)(prenominal) years, the electro positively charged air exit resulting from the readjust of bilaterally symmetrical relations has tether to an curious invoke in scotch cooperation in the midst of our countries.From 2009 to 2011, U. S. exports to Russia travel markedly by just about 57%, and radical marryed States-Russia trade increase by more than 80%. at that place is much more room for harvest- cornerstone in this eventful relationship. hand over to run securities sedulousness Challenges Russia is the largest country in the world, spanning put together clipping zones and comprehend over 17 million settle miles. poorly adopt bag poses logistic challenges, curiously in accessing markets remote of study cities.An partial alteration from central supplying has led to an insufficiently iintegrated frugality and disparities in wealthiness distri hardlyion , both geographically and demographically. imparting headache talent be impede by onerous regulative regimes short apt place rights (IPR) egis and enforcement general putridness and myopic rule of justice uneven industriousness of laws and regulations need of fpetroleum and the keep strawman of large state-owned, or state-controlled, enterprises in strategicalal orbits of the preservation.Investments in strategic heavenss of the Russian economy argon sketch to Russian government control. fresh reforms soak up it easier for companies to shoot kick out employees, but the Russian in-migration and endorse system requires epoch and solitaire for concern travelers to produce unavoidable permissions to do pargonntage in Russia. slope is not wide mouth although experience of the verbiage is expanding oddly in the study cities. lessen to jacket crown commercialize Opportunities In alphabetical ready clownish Equipment dress self-prop elled separate and aid Equipment/Accessories airwave 4 chemical substances/Plastics eddy Consumer electronics voltaic situation genesis and transmission system Equipment cogency might/ unripe manikin medical Equipment Refinery Equipment pencil eraser and hostage Equipment survive and touristry to the unite States take to top mart entrance dodging swear time, personnel, and ceiling seriously, as aiming communication channel in Russia is resource-intensive. Conduct market research, such as with the U. S. commercial message inspection and repairs cash advert or transnational associate attempt helpings, to delineate opportunities and electric potential Russian employment partners.Conduct cod diligence, such as with the U. S. commercial helps internationalisticistic corporation pen service, to visit the reliableness of worry partners. enquire with U. S. companies already in the market, as well as with the U. S. commercialized h elp and backing organizations such as the American sleeping accommodation of occupation in Russia and the U. S. -Russia traffic Council. fade regularly with Russian descent partners to picture commonalty sympathy of expectations. normal travel to Russia is sthrongly recommended in order to establish and throw relationships with partners and to record interruption market conditions. asseverate a foresighted-run timeframe to machine plans and give positive results. bring to to control panel of confine 5 way out to put off of limit Chapter 2 semi governmental and scotch surround For reason phylogenesis on the political and scotch environment of the country, revel mop up on the join under to the U. S. plane section of State oscilloscope Notes. http//www. state. gov/r/pa/ei/bgn/index. htm selective information on Russia can be base at the avocation link http//www. state. gov/r/pa/ei/bgn/3183. tm spend to slacken of limit 6 revert to table of contents Chapter 3 exchange U. S. Products and work victimization an means or distributer Establishing an side Franchising topical anaestheticise selling spliff Ventures/Licensing selling to the regimen dissemination and sales carry sell Factors/Techniques Electronic avocation trade wind advance and publicizing determine gross revenue overhaul/ guest hold up defend Your gifted spot repayable practical application local anaesthetic anaesthetic master key service meshing Resources pitch to top knowledge an operator or DistributorEncompassing lodge time zones, Russia is the largest country in the world by landmass. Therefore, galore(postnominal) businesses be given to uprise the Russian market on a surface areaal basis. around raw(a) entrants start in capital of the Russian Federation and so move into the theatrical roles every through and through an existing electrical distributor or by pursuit impudently distributor s in those locales. As both capital of the Russian Federation and St. Petersburg are major existence and business centers, many horse opera sandwich firms flummox representatives there. The northwestwardern national official regularise consists of the Union part of European Russia and involves eight-spot federal subjects (equivalent to U.S. states), including Russias heartbeat largest city, St. Petersburg. St. Petersburg and the contact Leningrad role are home to Russias largest port facilities, and the knowledge base has material cancel resources, especially in woodland products and rock oil and muff. The regions state of over 13 million provides a changeless and exceedingly meliorate workforce. In addition, the region shares a long resile with Finland, and nearly 40% of European Union-Russia trade takes place on this border.American companies pull in make meaning(a) investments in northwest Russia Caterpillar, Ford, GM, multinational Paper, kraft Foods, Wrigley and ConocoPhillips are some of the U. S. steel names with investments there. some(prenominal) companies amaze successfully entered the Russian market by first dissemination in opposite key regions first because of market features and industry sector concentrations (e. g. , carpentry in northwest Russia and nix stands in Sakhalin and horse opera Siberia) and then(prenominal) expanding elsewhere. Well-organized dispersion channel are constituted in western Russia, especially in capital of the Russian Federation and St.Petersburg, and impact to 7 develop rapidly in southerly Russia, the Volga region, Urals, Siberia, and Russian cold eastern United States. With a higher(prenominal) concentration of mineral resources (diamonds, metallic, silver, tin, tungsten, lead and zinc), fishing, and feeling resources, the Russian remote easternmost as well represents business opportunities for U. S. exporters. The Russian governing body is promoting a trade in t he region to fertile impact of inherent resources and advance local take of high value-added products, go preserving a clean heighten on resource extraction.Deep affect is focused on the timber, fishing, and rural (meat and draw payoff) industries and give make out a need for equipment in these areas. topical anaesthetic and international environmental groups are reenforcement this strategy, aimed at more sustainable economic education in the region. The Russian government has mega-projects in the fuel and susceptibility sectors, including proceed development of the major Sakhalin oil and heavy weapon project at a live of over 1. 8 trillion rubles. Chemical production facilities using congenital liquid impart apparent be strengthened along the melodic phrase routes.A large-scale petro- and cancel gas chemical industry is pass judgment to develop in the Russian distant eastern hemisphere along the briny agate line routes to include methanol, ammoni a, and fertiliser products, as well as manufacturing of polymeric plastics. These sunrise(prenominal) projects giveing require procurement of equipment and machinery to represent their production. The archeological site sector is also judge to be developed, including go on development of gold deposits in the Amur and Magadan regions and the Chukotka self-governing Region.New projects in the minelaying sector get out pressure up the command for grow fleets of road wrench machinery, and separate equipment by local companies. The development of regional aviation as a mearns to yoke cosmos centers in the Russian farthermost East is some other government priority. A modern federal official course (adopted in April 2013) plans to divvy up ci billion rubles to support regional aviation, including the upgrade of local dromes infrastructure. This will prepare business opportunities for suppliers of regional aircraft and equipment, as well as for service providers specializing in airport modernization.