Russia’s workforce is numerous and well-educated, especially in technical subjects. Russian employees have a broad range of skills and abilities. A growing number of Russians can work in an English environment. The labor is, especially in comparison to the Western Europe standard, low paid.

The poor living conditions and the high level of alcoholism among the Russian population is affecting the productivity and the efficiency as well as resulting in a high absenteeism rate. Also, part of the workforce have been used to work under a communism regime, were the individual initiative was seldom rewarded. It is a common practise for Russian workers to sell private and secretive information on companies activities to criminal organizations in order to make money. For example, financial information could be communicated to criminal groups who can then use the information to extort money.

 

privatization

The privatization process has started in 1992, under the tenure of President Yeltsin. In the beginning of 2005, more than 80% of the companies were wholly or partly privately owned. As a result of this process, a Russian equities market was born.

The more interesting shares from the largest Russian companies (Surgutneftegaz, Norilsk Nickel, Lukoil) have been sold to large investors, both Russian and foreign.

 

State companies lost their lead by the end of 1990s. They continue to persist in natural resources sphere.

The entrepreneurial spirit is not strong yet but is developing fast.

Russian private companies are numerous, service oriented, aims principally the huge domestic market and are rather competitive.

 

Concern “Kalina”, a leading manufacturer in the Russian Perfumery and Cosmetics Market.

 

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