Russia – and in particular Moscow – offers an Offshore Sales professional much,
much more than he or she would likely bargain for.
Winston Churchill famously described Russia as “a riddle wrapped in a mystery inside
an enigma.”
The Russian Federation is the world largest country territorially, with an area
of more than 17 million square kilometres (about 6.5 million square miles), and
houses a population of close to 144 million.
The nation has undergone numerous and significant changes in recent years. The most
instrumental of those changes was, of course, the end of communism and the break-up
of the U.S.S.R. into independent states.
Since the Soviet Union’s collapse in 1991, the country launched a slew of reforms
– including the privatisation of many industries – which resulted in an economy
that is robust, and possesses tremendous growth potential.
Among the slew of foreign destinations a Sales profesionnal can choose from, Russia
is one about which you will likely hear the most drastically varied – and exaggerated
– information possible. You might be tempted to adhere to the old adage of, ‘Believe
half of what you see and none of what you hear.’
However, if you do your homework properly, you will discover that Russia does in
fact offer some exceptional business attributes that currently make it one of the
most promising Sales locales.
Tremendous Growth
At the end of 2007, Russia marked its ninth straight year of growth, with an average
of 7% annually – a rate that far surpasses average international growth. Among the
fastest growing economies in Europe, at the end of 2007 the country boasted a massive
GDP of $2.08 trillion (PPP) – the 7th highest in the world - and continues to attract
immense levels of foreign investment.
The country's economy has never been healthier. Russia's enormous domestic market,
vast natural resources, and superior workforce have sparked substantial foreign
interest. Among many clear signs of Russia’s snowballing wealth is the recent report
on the Forbes annual list of the world’s richest people. According to Forbes, Russia's
billionaires nearly doubled their riches during the last year.
The combined net worth of Russia’s billionaires skyrocketed from $90.6 billion in
2005 to $172.1 billion in 2006. The new list, published in mid-March includes 33
Russians, seven of whom are newcomers. Twelve Russians are in the world's top 100
richest people - up from five last year.
Doing Business in Russia
Leading European, Asian and American companies have established operations in the
industrial and consumer sectors in Moscow, St. Petersburg, and regional locations.
Extremely strong investment growth has been seen in such areas as telecommunications,
automobiles, computers, and energy.
Moscow and St. Petersburg are the most popular locales for foreign investors.
Although the way of life in Moscow is somewhat unique from other Russian regions,
doing business there is very much the same as in the country’s other regions, with
the obvious exception of increased volume levels.
Moscow attracted the most foreign direct investment in 2000, worth more than $1.47
billion. Other top regions for foreign investment were: Krasnodar Territory (almost
$1 billion), Sakhalin ($246 million), Leningrad Oblast (just over $205 million),
and Moscow Oblast (just under $205 million). Novosibirsk, Tyumen, and St. Petersburg
city all received between $145 - $151 million.
Foreign direct investment in Russia has far outpaced foreign direct investment in
the other ex-Soviet Newly Independent States.
One of the world’s most exciting cities, Moscow is particularly thrilling if you
are involved in international financial services, as the city offers huge earnings
potential. With over 100,000 expatriates and Russians wanting to invest, there is
never a shortage of prospects.
In addition, even more so than in other expat locales, the majority of expats in
Russia tend to hold very senior positions in firms there, commanding extremely high
salaries, with loads of disposable income.
Buzzing Moscow
Moscow itself is a 24/7 buzzing city. In many ways, it is technologically advanced
and in other ways seems years behind the rest of the world.
The city of Moscow, the country’s capital, serves as Russia’s primary political,
economic, financial, educational and transportation centre. Located on the river
Moskva, Moscow’s urban area comprises about one-tenth of the entire population,
rendering it the most populous European city.
Moscow occupies a central position in all aspects of Russian life – historical,
political, economic, cultural and spiritual. Lying at the heart of the densely populated
Russian plain, it forms the historical nucleus of the Russian empire and houses
the present government.
It is Russia’s largest city, with a population of close to 11 million, and is an
industrial powerhouse in the middle of the country’s most developed region.
By nature, Russians are flexible, inventive, energetic, resourceful, and humorous.
This is especially true of those Russians (usually young) who have decided to learn
English and become qualified in a discipline required by a foreign company.
Day-to-day business affairs are not that different from those in the West, if perhaps
a little more bureaucratic, but definitely less politically correct. Invoices are
issued, they get paid (usually by bank transfer), a sandwich trolley comes round,
all the office equipment is modern, telecommunications are efficient and quite cheap,
everyone has mobiles, and so on.
Currency
The unit of currency in Russia is the ruble. It is illegal to conduct cash transactions
in foreign currency with Russia. There are many ATM machines and all places of business
accept most credit cards.
Moscow = Much to Do!
The least of your worries as a Sales professional working in Moscow will be finding
ways to spend your leisure time.
Moscow has always been a popular locale for the expat and holiday maker alike, largely
because of the multitude of sights, sounds and exciting happenings there.
As well as fantastic restaurants, cafes and bars, the city offers world class performances
of opera and ballet, in addition to many magnificent museums, breath-taking art
galleries, and splendid churches and cathedrals.
Among the city’s many popular and unlimited landmarks and attractions:
- Kremlin
- Novodevichy Convent
- Red Square
- Church of the Ascension at Kolomenskoye
- Pushkin Museum of Fine Arts
- Moscow Zoo
- Bolshoi Theatre
- Saint Basil's Cathedral
- Iberian Gate and Chapel
Russians are well-known for their busy, enthusiastic and, sometimes, boisterous
social lives. Expats in-the-know who live there report a lifestyle that is at once
tremendously profitable from a financial standpoint and incredibly gratifying from
a social perspective.
Moscow is definitely one of the top cities in the world for an expat Sales professional!
For further information about Russia we recommend that you visit http://en.wikipedia.org/wiki/Russia
where you will find many useful links and informative articles to prepare you for
your move.