Doing Business in Russia
Russia is the most politically powerful of the independent states of the former Soviet Union, and it has instituted sweeping economic reforms including broad privatization. The nation ended 2007 with its ninth straight year of growth, averaging 7 percent annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble initially drove this growth , since 2003 consumer demand and, more recently, investment have played a significant role. Over the last six years, fixed capital investment have averaged real gains greater than 10 percent per year and personal incomes have achieved real gains more than 12 percent per year. During this time, poverty has declined steadily and the middle class has continued to expand. The nation has also improved its international financial position since the 1998 financial crisis. This is a nation with precious natural resources, a huge consumer market, and an educated workforce. With massive shortages of consumer as well as capital goods, it continues to seek many joint-venture opportunities. Investors may now buy hard currency and repatriate profits and dividends. Foreign trade activity has not only been authorized, but it is encouraged. Russia is a member of the International Monetary Fund and the World Bank. This means, in practical terms, that there is hard-currency credit available for imports. Nevertheless, many transactions still involve barter trade.
Doing Business in Russia
Russia is the most politically powerful of the independent states of the former Soviet Union, and it has instituted sweeping economic reforms including broad privatization. The nation ended 2007 with its ninth straight year of growth, averaging 7 percent annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble initially drove this growth , since 2003 consumer demand and, more recently, investment have played a significant role. Over the last six years, fixed capital investment have averaged real gains greater than 10 percent per year and personal incomes have achieved real gains more than 12 percent per year. During this time, poverty has declined steadily and the middle class has continued to expand. The nation has also improved its international financial position since the 1998 financial crisis. This is a nation with precious natural resources, a huge consumer market, and an educated workforce. With massive shortages of consumer as well as capital goods, it continues to seek many joint-venture opportunities. Investors may now buy hard currency and repatriate profits and dividends. Foreign trade activity has not only been authorized, but it is encouraged. Russia is a member of the International Monetary Fund and the World Bank. This means, in practical terms, that there is hard-currency credit available for imports. Nevertheless, many transactions still involve barter trade.
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