A changing legal environment

The constant changes in the business environment can make business activities hard to plan for investors and managers.

The administrative, tax and banking reforms should be continued in a way that could create a more welcoming climate for foreign investors.

Business crime and corruption

Companies and individuals doing business in Russia can become a target of Russian criminals. The mafia used to commit crimes against member of the communist party, but after the fall of Communism, every successful citizen who managed to make money became the mafia’s target. Thousands of business people have mysteriously disappeared since the beginning of the 90s. Any foreigner who would like to set up a business in Russia have therefore to take into consideration the need to spend some amount of money on security.

Legal remedies for fraud, recovery of damages, or reimbursement on business losses as in the United States do not exist in Russia. The U.S. judicial system provides unique recourse for both civil remedies and pursuit of criminal violations.

Bribe-taking is still a standard practice among Russian Government officials, civil servants and many others. Therefore it may be necessary to give away bribes when operating in Russia, despite the fact that such acts are illegal under both Russian and European law. However, businessmen doing so should be aware that they are facing the risk to pay important fines.

The relation between the UE and Russia are privileged and can enable to reduce some of the risks faced when operating a business in Russia.

2014 Index of Economic Freedom

Source: Heritage Foundation, 2014

 

Other useful sections of the website

 

Business and trade in Russia

Economic sectors

 

To go further

doingbusiness.org/data/... - Doing Business Data 2012 for Russia - The World Bank

heritage.org/index/country/russia - Index of Economic Freedom for Russia, Heritage Foundation