World Travel Guide

City Guide  - Moscow  - Business
Business

Business Profile: Despite the upheavals in Chechnya and the change of government, the first shoots of economic hope are springing up Russia, but it still too soon to say that these will bring full-scale growth and recovery. 1999 saw a positive growth in GDP of 2.0% - only the second time this had happened since 1991. The tripling of international oil prices at the end of 1999 was partly responsible for this economic upturn, increasing the export surplus in that year to $29 billion. Estimates for 2000 are somewhere between 5-6% as long as oil prices remain high. But while the official figures for 1999 put unemployment levels at 12.6 percent, the real number is likely to be at least twice that.

Suspension of IMF aid will remain an obstacle to Russia's economic recovery as investigations continue into the diversion of up to ten billion US Dollars since 1998. Spearheaded by the FBI, US banking institutions and British law enforcement agencies, the investigations are likely to reveal some very damning evidence against Russian officials. The total extent to which the ordinary Russian has been defrauded out of funds earmarked for state purposes is likely to be much greater still, with money siphoned out of official coffers ending up in private bank accounts. Such high levels of corruption have been a tragedy for ordinary Russians who have seen their wages fall by 30% and their pensions by 45% in real terms since 1999. Vladimir Putin has promised to crack down on the oligarchs who have cashed in on Russia's frail economic infrastructure.

Western manufacturing companies based in the capital such as General Electric, Sun Microsystems, Rank Xerox, Siemens, Peugeot, IBM and Hewlett Packard continue to develop their brands in Russia but have reported massive decreases in sales since the 1998 crash. Despite this, consumer confidence seems to be on the increase, the rouble's devaluation has given domestic producers the edge over imported goods and Muscovites still prosper from the presence of Western banking and accounting firms such as Salomon Smith Barney and PriceWaterhouseCoopers.

Business Etiquette: The business culture in Moscow, has changed dramatically in the past decade. Investment from major Western corporations has brought wealth for a select few as well as a more Western approach to business. English is far more prevalent than it used to be, but it's always worth making sure there is an interpreter on hand.

Offices are generally open Monday to Friday 0900-1800, and although Russians are not always punctual, it is important to arrive on time. Business cards are readily handed out; they should have a Russian translation on the reverse. Business lunches are quite common, but evening meetings tend to be more social and occasionally Russians will bring their spouses with them. If invited to a Russian's home, guests should bring a gift (wine, chocolates or an uneven number of flowers) and something small for the children. Refusing to drink a toast is a major faux pas and once a bottle is opened it will be finished. Business suits should be worn for meetings, but otherwise dress is slightly more casual than elsewhere in Europe. A fair amount of sexism still persists in Russian society and businesswomen are advised to dress conservatively.



Copyright © 2001 Columbus Publishing
    
GENERAL
City Overview
City Statistics
Cost of Living
History
Language
Accommodation
 
GETTING THERE
Air
Road
Rail
 
GETTING AROUND
Getting Around
 
BUSINESS
Business
 
SIGHTSEEING
Sightseeing
Key Attractions
Further Distractions
Tours of the City
Excursions
 
ENTERTAINMENT
Nightlife
Sport
Shopping
Culture
Special Events
Food and Drink