This is the first post in a series highlighting KPMG’s annual “Doing Business in Russia” report.
The introductory section of KPMG’s Doing Business in Russia report focuses on Russia’s investment climate and sets the tone for those who wish to do business there. This section also provides insight for those not familiar with the country and its recent developments on the innovation and modernization front while offering tips to those who seek to live and work in the country.
An introduction the Russian economy today
Property Magazine International recently reported that Russia’s economy continued to recover in the first half of 2011. This falls in line with First Deputy Prime Minister Igor Shuvalov’s expectation for the GDP growth to reach pre-crisis levels by 2012, as noted in KPMG’s report.
Signs of foreign direct investment are also prevalent. KPMG stated that the Russian consumer market consists of more than 140 million people, and is a place where many international brands have dropped their anchor. Cisco, PepsiCo, Papa John’s, Kimberly-Clark and Kraft are a few household names that invest in the Russian economy today.
As the largest country in the world with relation to territory, Russia offers investors a highly diverse environment in which to do business. In addition to pairing regions in Russia with specific industries, the report highlights the 10 regions in Russia with the most potential:
1. Moscow
2. St. Petersburg
3. Moscow oblast
4. Sverdlovsk
5. Krasnodar
6. Khanty-Mansiysk
7. Tatarstan
8. Krasnoyarsk
9. Perm
10. Nizhny Novgorod
Economic developments and useful tips
KPMG also provides an overview of the government’s recent achievements in innovation as part of President Medvedev’s goals to move away from an oil-focused economy.
One of the ways in which the government has begun to implement this plan is through tax concessions for companies that provide high intellectual capital and for residents of the special economic zones.
In addition to laying out the facets of Russia’s modernization, KPMG provides practical advice to those who seek to live and work there. One important aspect to consider as an expat is the need to register and unregister each time when traveling abroad outside of Russia.
To read the complete introduction to Russia’s investment climate, economic modernization and innovation developments as well as useful tips for working and living in the country, click on the document below. "Introduction to Russia" begins on page 6.
Up next in the KPMG series: Starting a business in Russia
Previous articles in this series:
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