First Time In Russia: Car Hire, Customs Rules, Climate, Language

Car Hire

You can hire a car in an airport or a hotel, but then you should not expect it to come cheap. It is better to employ services of car hire companies. You can hire a car with or without a driver.

In Russia they drive on the right hand side. The speed limits are 60 km/h (about 37 mph) in built up areas, outside the city limits - 90 km/h (about 56 mph). Wearing a seatbelt is mandatory!

Driving in Russia is not the simplest of tasks. Large cities have very intense traffic, you can be stuck in a traffic jam for hours, and there are serious parking problems. The road surface quality often leaves much to be desired. Different cities have different driving styles. It may seem somewhat aggressive to a European. We do recommend you hire a car with a driver.

Customs Rules for Individual Persons

You can bring into or out of Russia foreign and (or) Russian cash as well as travellers cheques, foreign and (or) domestic securities in physical certificated form in the sum of up to the equivalent of 3000 US dollars. When the amount is in excess of this sum, the money must be declared to the customs office by submitting a TD-6 customs declaration stating the sum total of money carried.

Climate

One of the most widespread stereotypes is the Russian colds. First of all - it is not always cold. Secondly, even though there is this stereotype, the Russian cold is often underestimated. The fact that Russian territory is so huge makes it virtually impossible to assert anything regarding "Russian climate". The same day may see +20 Celsius (+68.00 Fahrenheit) in Sochi and -20 Celsius (-4.00 Fahrenheit) in the northern regions. In the South the summer heat may exceed +40 Celsius (+104.00 Fahrenheit) while even -50 Celsius (-58.00 Fahrenheit) is usual for the winter in the North. The only thing to advise is watching the weather forecast and not the one for Moscow, but for the city or the region you are planning to visit. The weather there may differ from that in Moscow by 30 degrees. Either up or down.

Language

You may encounter language problems. There are not a lot of people who know English, not even enough for everyday simple communications. Amongst middle-aged and older people - virtually none. This includes those serving you - waiters (with the exception of expensive hotels), taxi drivers, and security guards. The situation is better amongst young people. If you want to find out something - do try asking young people. In every three to four people there would be someone who would understand you. We do strongly advise to spend some money on a professional interpreter.

On the other hand be prepared for a keen interest in your person. Russia is not a country used to a big tourist influx. With the exception of Moscow and St. Petersburg, foreigners are perceived as something exotic here.

First Time In Russia: Clothes, Drinks, Entertainment, Safety, Water, Food

Clothes

They do not wear valenki, touloups, and sarafans in Russia and have not been for some time. These exotic things you may find in a remote village and not that often either. The style in clothing of the urban population does not differ from clothes Europeans wear. If you work in a bank, a large company, or an office of authority, it is customary to wear suit. If you do not want to appear strange, dress as you would back home or smarter. The latter is especially true for women - being too casual in clothes and total lack of makeup in Russia might be perceived as being unkempt and not looking after yourself.

Drinks

Another one of widespread misbeliefs is that Russians drink vodka all the time. Maybe it was so once upon a time, but now vodka is not the most popular drink in Russia by far. Beer is more popular today. The choice is huge - from very cheap to elite international brands. In business circles cognac is much favoured traditionally, and in recent years - whisky. You may encounter large quantities of vodka during certain parties or celebrations. If you are not experienced in consuming ample amounts of this drink, it would be wiser to abstain. Those around you would understand.

Leisure and Entertainment

Entertainment industry is well developed in large Russian cities. Any taste is catered for. There are many cafes with ethnic cuisines - from Japanese to French, a multitude of entertainment centres, dance clubs and cinemas. In any city large or not so large you find theatres, often rather good. In regional centres you easily find a typical English pub and a Mediterranean cuisine restaurant. The difference between high and low prices may be very dramatic, especially in large cities. Even if you order roughly the same food, a dinner (including drinks) may cost you both under 20 Euro and over 500. The service changes accordingly. This is why we strongly recommend that you seek advice in the hotel. Another peculiarity is the age group composition of the customers. People you see in many respectable places are quite young; appearance of a middle age person on a dance floor of the majority of clubs might be perceived as rather odd.

Safety

The situation in large Russian cities is not much different from that in a European megapolis - there are "good" and "bad" areas. It is not advisable to walk around at night in the outskirts, talk to strangers, or go to dubious establishments. Money and valuables in the hotel room are best locked in the safe. If you left something in a taxi, most likely you can think of it as gone. On the whole, adhering to common safe behaviour standards you have been used to in your country would be enough.

Water

Water mains water in different cities is different quality - from fully compliant to the European standards to totally unfit for drinking. Good bottled drinking water may be purchased in any shop or a street stall/kiosk - there are very tough government regulations for drinking water manufacturers.

Food products

Food is best purchased in a large supermarket. The choice is not that much different from European. You will find goods of all best known brands on the shelves. Local products (primarily meat and dairy products, bread) differ considerably from what you would be used to - flavour and fat content are totally different. Convenience stores are open very late - at least until 8 PM, some even later. There are shops which stay open around the clock.

Chili's Grill & Bar Will Open 25 Restaurants In Russia

 Chain of restaurants Chili's Grill & Bar owned by American restaurant holding Brinker will open its first restaurant in Russia on February 1, 2010. PR Agency Provision Communications reported. 


According to the agency the network in Russia will be developed y a local franchise partner - the company Trio Group Ltd. The Department of Investor Relations of Brinker reported that a franchise agreement with Trio Group Ltd, registered in Switzerland, was signed in August 2009. 


Trio Group Ltd shall open 25 restaurants chain in Russia until 2017, opening of first one was scheduled for November 2010. But the first Russian restaurant of the chain will be opened in Moscow on Novy Arbat street only in Februery 2011, reported Pro-Vision Communications. 


Chili's Grill & Bar is the main rival of the American TGI Friday's, which operates in the Russian restaurant market through the holding Rosinter.

IPO Of Chelyabinsk Pipe Rolling Plant

Chelyabinsk Pipe Rolling Plant is waiting capitalization at the amount of $ 2,0-2,7 bln after the intended  IPO in London.

One of the largest pipe manufacturers in Russia - Chelyabinsk Pipe Rolling Plant  intends after the IPO in London to get the capitalization in the range of $ 2,0-2,7 billion. Price range per share of Chelyabinsk Pipe Rolling Plant  for the placement is defined in the range of $ 3,50-4,60 per share and the same amount is for a receipt, the company reported. 


The main shareholder of Chelyabinsk Pipe Rolling Plant can raise $ 157,5-207,0 million from the sale of the existing shares and receipts in the IPO, and two subsidiaries of Chelyabinsk Pipe Rolling Plant may raise $ 472,5-621,0 million.

German TUI Buys Russian Svoi Travel Group

 The company TUI Russia & CIS created with the participation of German tourism group TUI, said that his company buys Russian SvoiTravel Group which deals with booking hotels and travel arrangements. Amount of the purchase were not disclosed. 


After completion of the transaction Svoi Travel Group will join TUI Travel PLC Accomodation & Destinations, which specializes in outbound tourism for different customers' groups. 


Completion the transaction is scheduled for late March 2011 after obtaining all legal approvals, TUI Travel reports. 


TUI Travel Russia & CIS was established in April 2009 as a joint venture of investment company S-Group owned by billionaire Alexei Mordashov and the German TUI Travel, which has 49 per cent in the joint venture. 


The deal will be the fourth purchase of TUI Travel Russia & CIS: the company acquired 75 percent of Russian VKO Group and Mostravel, as well as control of the Ukrainian tourist company Voyage Kiev. 


S-Group of Alexey Mordashov, in turn, is the largest shareholder of German TUI AG, the parent company of TUI Travel with a share of 18 percent.

Rusagro Plans IPO In April 2011 In London

 Russia's largest producer of sugar agroholding Rusagro resumed preparations for the IPO and plans the placement in April 2011 on the London Stock Exchange, Reutersreported. 


the selling shareholders will be a Cyprus subsidiary of Rusagro - the company Matchzone Holdings Limited. In late December Matchzone increased its share in Rusagro to 14,3 percent of shares. Traditionally, the minimum amount companies attract during the IPO in London is about $ 400 million. 


Organizers of the placement were chosen last year. They are Renaissance Capital, Credit Suisse, Alfa-Bank and Sberbank.

First Time In Russia: Personal Contacts, Telecommunications, Money

Personal Contacts

One of the peculiarities of the Russian business life is that personal contacts are of the greatest importance here. Many issues you could settle over the phone or via mail back home here would demand a meeting in person. These meetings, especially for the first time, often take much longer time than necessary for the solution of the issues in question. This is a Russian peculiarity - people are willing to offer higher levels of trust to those they know personally. Personal connections are highly valued here. Situations happen when people here would prefer less profitable conditions of a contract with long-established partners to more profitable but offered by an unknown company. Establish and maintain as many personal contacts as possible. This is one of the cornerstones of business success in Russia.

Telecommunications

All types of communications are rather well developed in Russia. Most of the country's territory is covered by cellular services (GSM 900/1800 is the dominating standard). International roaming is possible virtually anywhere. If you are planning to stay for a long time, it would be advisable to buy a local provider's SIM card - this would make your calls within the country much cheaper. Russia's country code is +7.

Except for the very remote countryside areas, the Internet access is possible everywhere. You may gain access in almost any hotel or an internet cafe. In large cities there are many areas with Wi-Fi internet access coverage. As the last resort you may use GPRS internet access virtually anywhere.

Money

The rouble is the Russian national currency. Any other currency is not accepted anywhere. The exceptions where you can pay dollars or Euros are so few that it is pointless to list them. There are many currency exchange outlets even in towns not frequented by tourists. In large cities the ATM network is very well developed, many ATMs are accessible 24 hours. Visa and Master Card are most commonly acceptable. They are accepted by many retail outlets, cafes, and restaurants. However, we do recommend that you enquire in advance whether credit cards are accepted; warning customers that cards are not acceptable is not usual in Russia.

Tips

In this respect Russia has an advantage over other countries. Leaving a tip is not mandatory here. Exceptions include expensive hotels and restaurants where there are a lot of foreigners. In other places it is all up to you. A tip of about three Euro would almost always be enough in a restaurant; any tipping at all would seem excessive in a small street cafe. Tipping taxi drivers is not done.

First Time In Russia: Laws, Work Hours, Business, Authorities

Laws

It has not been that long since the collapse of the Soviet Union. The current Russian legislation is very young and is still under continuous development. There are loads of documents clarifying and amending the effective laws. It is not easy to grasp all these nuances. This is why we recommend, when sorting out any issues concerning law (customs, drafting contracts, buying assets), to resort to the services of specialized Russian companies. There is a large number of legal, consulting, and brokerage companies working in large Russian cities. By European standards their prices are not that high as a rule. All you need to do is choose carefully.

Opening/work hours

In companies not involved in production the working day starts at about 9 to 10 AM. In production plants the day starts about an hour earlier. The majority of Russian managers are fairly easy regarding the upper limit of the working hours: if necessary they can stay at work longer, many are prepared to work on weekends. In Russia a business dinner is far wider spread an occurrence than a business lunch.

There is a wide spread opinion that Russians would rather work long hours very hard for a few days than work monotonously every day for the whole year. It is hard to say whether this can be said only about Russians. Although the colossal amounts of work they can turn out "at the last moment" can be really astounding for a newly arrived foreigner...

Holdings

Foreigners find the Russian holding companies most puzzling. There are vast numbers of them in Russia. Some of them combine companies of similar profile thus forming highly efficient integrated structures. Others may include companies of the most peculiar combination of various industries. Each company seems to have an independent management and the fact that the company belongs to a holding altogether is known to very few people. This may result in rather difficult situations. For example you negotiate, at the production site, the conditions for supplying your product, and at the very last moment it turns out that all the efforts were in vain. The decision regarding the selection of the supplier must be approved by the management of the holding and your yesterday's counteragents do not have the authority even to prepare the draft offer. And - the holding management may be in a city thousands of kilometres away from the production facility itself. This is why prior to negotiations or in the very beginning it would be useful to understand clearly the decision making structure and who are the people you have to negotiate with.

Business and Authorities

Authorities have always had a great influence over business in Russia. Managers of the majority of Russian companies pay attention, to a greater or lesser extent, to the opinion of authorities whose influence on some companies is practically without limits. Do not try to cut down on the time you spend establishing contacts with the representatives of regional authorities and presenting your projects. You can believe that they would gladly hear you out. It is much easier to talk to business people when you have the support of authorities. However, the influence of authorities must not be overestimated either. This applies especially to small townships where leaders of large companies which provide most of the employment locally, hold in their hands almost absolute control of most things.

Fund Skolkovo and Nokia Siemens Networks Will Sign Memorandum of Intent

On the eve of the signing of a Memorandum of Intent between the Skolkovo Fund and Nokia Siemens Networks there will be a press conference, which will be attended by the President of Fund Skolkovo  Viktor Vekselberg and Director on operating interaction with clients, a member of the Board of Nokia Siemens Networks Bosco Novak. 
The event will be held at Monday, January 24 2011.

Presentation Of Skolkovo At Asian Financial Forum In Hong Kong

As part of the Asian Financial Forum in Hong Kong there was a presentation of the Innovation Center Skolkovo. 


Head of Department for International Development of the Fund Skolkovo Alexei Sitnikov in the thematic session on innovation, described the activities of the Centre. He stressed that participants of Skolkovo can be not only Russian but also foreign companies including Asia-Pacific region. 


Fund Skolkovo's representative said that private investment will be involved at all stages of the innovation process - from creating ideas to running it in production. 


"Representatives of the Asian investment companies that were present at this Forum were of potential interest to the Innovation Center Skolkovo. To acquaint the participants of the Forum with the conditions and plans of the Center we have organized an information stand Skolkovo", - said Alexei Sitnikov. 


Asian Financial Forum (AFF) is held every year in Hong Kong and is a unique educational platform for financiers and investors. This year's forum brought together over 1600 participants from all over the world, among them - there are representatives of major financial corporations and state organizations, economists and financial analysts.

Japanese Mitsui Co Ltd Bought 14,9% Of Russian QIWI Ltd

Popular in Russia system of instant payments QIWI gained a new shareholder - a Japanese group of companies Mitsui & Co. Ltd. The Japanese company bought 14,9% QIWI Ltd. (formerly OE Investments Ltd.) in accordance with the agreements dated December 20, 2010. This information follows from the documents released today by the company.  


The Japanese company Mitsui & Co. Ltd  noted that QIWI is the leader of its market in Russia: about 80% of mobile subscribers use the terminals of this system to pay for services, and the total market share of Qiwi in Russia reaches 45%. 


In view of the last transaction control shareholding of QIWI (63,7%) remains in the hands of the management of the company itself. The second largest shareholder is Mail.ru Group with 21.4% share. 

VimpelCom Will Buy Wind Telecom

The Supervisory Board of VimpelCom Ltd. approved the purchase of Wind Telecom S.p.A (formerly Weather Investments) by majority vote, despite the active opposition of its Scandinavian shareholders. 

The merger of VimpelCom and Wind Telecom will create the world's sixth-largest telecommunications company providing mobile services in 19 countries with a population of 838 million people and the number of subscribers 173 million. The deal is scheduled for the II half of 2011.


Under the agreement, after completion of the transaction VimpelCom will own a 51.7% stake in the Egyptian telecom operator Orascom Telecom Holding SAE and 100% of Italian Wind Telecomunicazioni S.p.A. For this transaction VimpelCom Ltd (a company of Russian origin) will pay $1.5 billion cash and shares.

VSMPO-Avisma Will Increase Production Output By 20% In 2011

In 2011 VSMPO-Avisma Corporation will increase the amount of investment in production growth up to $250 million. It is half of the amount intended for investment in renovation by the corporation management till 2015.

As it was stated by Mikhail Voevodin, General Director of VSMPO-Avisma, implementation of many investment projects was intentionally postponed till 2011-2013. Most likely, their revival has been triggered by the Russian government's order concerning establishment of the Titanium Valley, a special economic zone, in the Sverdlovsk Region, with VSMPO-Avisma taking the key role. The corporation is planning to invest $100-150 million in the special economic zone project.

VSMPO-Avisma's press service informed that in 2010 the corporation shrank its credit portfolio by $100 million. The second half of the past year witnessed an increase in orders for the products made by the monopoly manufacturer of Russian titanium.

Mikhail Voevodin anticipates that the corporation's production output will increase at least by 20% in 2011 as compared to 2010, thus making it possible for VSMPO-Avisma to regain its before-crisis production levels. 

Based on the official records, over January-September of 2010 the corporation's after-tax profit amounted to 384.75 million rubles at the operating revenue totaling 17,771 billion rubles.

German Douglas Holding Sold Its Russian Network To Rive Gauche

German company Douglas Holding AG retailer of perfumes, cosmetics, books and jewelry, sold its business in Russia - perfume Network LLC Douglas Rivoli to the cosmetic network Rive Gauche developed by PS Group, the company Douglas Rivoli reported. 


The transaction (amount was not disclosed) was completed by 30 December 2010. 


The German company as a whole appreciated the activities in the Russian market, but noted that achieving market leadership in Russia requires a significant investment.  The company also noted the high level of rent for premises in Russia. 


Estimating these factors, the company decided to sell 32 stores Douglas Rivoli, with annual sales of EUR 55 million to the network Rive Gauche. 


The company notes that the network will operate under the former name for the next three years in accordance with license agreements.

Groupon Attracted $1 Billion By IPO

The American Internet company Groupon providing services in the field of online retailers, has completed the process of raising funds through private placements of shares in the amount of 950 million dollars to raise funds and repurchase shares from a number of former investors and to continue business expansion of Groupon outside the U.S. 


New investors are private individuals and various companies, including the Russian Mail.ru Group. Financial advisor for placement was the company Allen & Company LLC. 

VEB Will Hold On 12-14 January Road-show of Eurobonds In Swiss Francs

 State Corporation "Bank for Development" (VEB) will hold on 12-14 January 2011 road-show of Eurobonds denominated in Swiss francs, a source in banking circles of Russia told to RIA Novosti. 

VEB appointed the organizers and book-runners of possible issue of Eurobonds in Swiss Francs in the volume of benchmark Barclays Capital, BNP Paribas , - said the source.
According to the source meetings with investors will be held on January 12 in Geneva, 13 - in Zurich and 14 - in Lugano.

Personal Legalization Of Foreign Employee Working In Russian Company

Below we speak about the situation when a foreigner has an intention to be employed long-term by a Russian company.

To stay and to work legally in Russia every foreign employee  should obtain a work visa, which is issued only on the basis of a work permit. Work permit can be obtained only after the company has got an employment permit. 

Below is a step-by-step procedure (all steps are essential):

1. Company obtains employment permit in Federal Migration Service

(Obtaining of Employment permit (stages 1) and registration of the company at PVU GUVD of Moscow (stage 3) can go simultaneously if the director of the Company is a Russian citizen. If not, the order is as stated above)

2. All foreign employees obtain work permits in Territorial Migration Service

3. Registration of the company at Passport and Visa Department of Moscow (if it is not registered yet)

4. Applying to PVU GUVD of Moscow for obtaining work invitation

5. Applying for 3-month single entry work visa to the Russian                  embassy abroad

6. Obtaining a multiple entry work visa for a year and its registration

The company can invite foreigners on its behalf only if the company is registered with Passport and Visa Department of Moscow. It is absolutely essential that the Employer-Company named in the work permit of the foreign citizen should be the inviting company named in the visa. 

Working in Russia on a basis of a business visa issued by some Russian commercial organization that is not the Employer is a breach of Russian legislation. Sanction is penalty. Worst case scenario is deportation.

Total time needed for a foreigner to enter Russia and legally work is 3.5-4 months (standard term) or 2.5-3 months (speed up term). Provided that a company is already registered in PVU GUVD of Moscow.

Representative Office Or A Branch Of Your Company in Russia

Foreign individuals and legal entities have right to participate in establishment of business partnerships and companies  in Russia or to acquire a share in the registered capital or shares in established legal entities. 

A foreign legal entity may open on the territory of  Russia  its  representative office or a branch. 

Relationships concerning the state guarantees for foreign investors' rights while investing on the territory of  Russia are regulated by the Federal Law № 160-FZ "On Foreign Investment in the Russian Federation" dated 9 July 1999.

A representative office of a foreign legal entity

It is a separate subdivision which does not assume either property or personal non-property rights and cannot be either a claimant or a respondent in court. A representative office is always located on the territory of Russia where it represents and protects interests of a foreign legal entity and does not carry out independent industrial economic activities.

A branch of a foreign legal entity 

It is created for the purposes of carrying out those activities  in Russia which are carried out by the parent organisation abroad  and is liquidated on decision of a parent organisation. 

State control over establishment, activities, and liquidation of a branch is effected by its accreditation in accordance with the procedure determined by the Government of the Russian Federation.

IPO of RTS Stock Exchange

RTS Stock Exchange  plans to conduct additional issue of ordinary shares in an amount of 47.9 million units under the IPO, which would increase the share capital by 29.9%. 

RTS plans to split shares, in which each security with the nominal value of 100 rubles will be converted into 100 ordinary shares with par value of 1 ruble. As a result, the number of authorized common shares will increase to 160 million units.
The authorized capital of RTS will be increased through the placement by public subscription of new ordinary shares in an amount of 47.999 million units. 


Shareholders of the RTS, the holders of ordinary shares will have a preferential right to purchase the additional shares in proportion to the number of their ordinary shares.

Moscow Will Sell Vnukovo Airport In 2011

Moscow authorities are going to sell their shares of the foowing companies: Vnukovo Airport, the International Trade Centre (ITC) and the company Gostinyi Dvor in 2011,  Mayor of Moscow Sergei Sobyanin said at an operational meeting.

This year Moscow authorities will increase revenues from the sale of state assets compared with 2010 by 14 times.

In addition to the above mentioned, Moscow plans to sell stakes in such well-known companies as Capital Insurance Group, Mospromstroi, Komkor, Obyedinennye Konditery.

"We also plan to privatize the stock of the factory AMO-Plant, and a number of objects that are located in other subjects of the Russian Federation ", - the Mayor said. He also recalled that Moscow today owns 433 stocks of different companies. 200 of them are preparing for privatization.