Russia Business : Analyze the Economy, Understand the Society, Manage Effectively

A comprehensive guide in a compact format on doing business in Russia. This book contains everything business-minded individuals need to know, using practical information and numerous tips to succeed in Russia. ‘Russia Business ’ discusses the economy, highlights the challenges Russia would face after the Coronavirus crisis, and covers key societal topics. In addition, it gives a greater insight into the work culture, business regulation and provides first-hand advice on how to manage a business in Russia.This book covers topics of interest to business professionals looking to enter the Russian market, to grow their Russian operations, and to all managers who intend to update their knowledge about Russia in relevant business areas. Acknowledgments About the Book Contents Editors and Contributors List of Abbreviations List of Figures List of Tables Part I: Russia Today: Economy 1: Russia: A Giant in Figures 2: Political System and Administrative Structure Structure of State Administrative Structure Political System: Main Structure Executive Power Role of President in Russia National Government Legislative Powers The Federal Council of Russia The State Duma Factions and Political Parties Political Parties Judicial System Conclusion INSIGHT: What factors are influencing Russian politics? INSIGHT: Putin ́s 2020 Constitutional Amendments Reference 3: Economic Structure GDP Development GDP Structure Regional GDP Structure Public Debt to GDP Wealth Distribution and Living Standards Trade Foreign Direct Investment Challenges References 4: Economic Clusters and Regional Policy Clusters and Cluster Initiatives in the Russian Federation: The Picture Today Skolkovo: Government-Created Clusters Within a Centralized Innovation Center Taking Stock: The Russian Cluster Observatory The Pilot Innovative Cluster Program on Its Way to Internationalization Challenges and Opportunities Between Past and Future Centralization State Dominance Traditional Separation of University and Science-Based Innovation/Start-Ups Relevance for Foreign Investors and Outlook References 5: Transport Infrastructure Density and Quality Railroads Roads and Highways Airports Seaports Pipelines Funding and State Monopolies Reference 6: Competitiveness The Ruble ́s Influence on Competitiveness The New Industrial Policy Outlook 7: Trading in Times of Sanctions and Protectionism Introduction The Crisis in Ukraine and Its Aftermath Sanctions Against Russia Reaction and Countersanctions of Russia Sanction and Protectionism Effects Global Effects Specific Economic Effects for the EU and the USA Winners and Losers of Sanctions in Russia Ways Out of the Deadlock Conclusion References 8: Russian Banking System 1988-1996 Initial Privatization 1997-1998 Reformation and Maturity 1999-2009 Formation of Monopolistic Structures 2009-2015 Strengthening of State Banks 2016 Until Today: Further Consolidation The Banking System Today A Strongly Nationalized System Recent Reforms and Trends Outlook References 9: The Russian Stock Market Statistics of the Stock Market Equities Bonds Other Instruments of the Market Indices Investors Suggestions for Further Reading 10: The Russian Ruble and Monetary System Currency Control Regulations The New Foreign Exchange Regime Since 2014 The Russian Gamble Are Sanctions Effective? Entangled with Oil Price Impact How Should One Deal with the Situation? References 11: Cryptocurrencies in Russia References 12: Russian Energy: Hanging on the Needle? Introduction: Oil and Gas as National and International Forces The EU and Russian Energy Russian Gas for the EU Geopolitical Considerations and Outlook How Do Western Sanctions Affect Russia ́s Oil and Gas Sector? The USA: A New Energy Giant Russia ́s Position and Outlook Suggestions for Further Reading 13: Import Substitution in Russia Incentives, Restrictions, Regulations Import Substitution Since 2014 Made in Russia Results and Future of Import Substitution Suggestion for Further Reading 14: The Russian Start-Up Ecosystem Where Do Russian Start-Ups Come from? Incubators and Accelerators Venture Capital and Grants International Ambitions Suggestions for Further Reading Universities Start-Up Companies Accelerators Venture Capital Funds Grant-Givers Export Promotion Agency Global Corporate Partnership Programs and the AHK ́s Activities Part II: Society 15: Brief Overview over Russian History The Origin of the Land of Rus ́ The Twentieth Century: Soviet Era Perestroika and Glasnost End of the Soviet Era Suggestion for Further Reading 16: Geography Climate Mineral Resources Agriculture and Animal Husbandry Drinking Water References 17: Population and Demography Demographic Crisis Birth Rates The Aging Population and High Death Rates Reference 18: Ethnicity and Languages Subethnic Groups: Cossacks Languages Language Endangerment Russian Language Russian Alphabet Foreign Languages References 19: Migration International Migration: Brain Drain and Muscle Inflow Internal Migration Residence Permit: Propiska Labor Migration Today References 20: Centralization and Urbanization Urbanization: The ``Dying Village ́ ́ Reference 21: Religion and Philosophy History of Russian Christianity Church and State Religion and Sexual Minorities Philosophy References 22: Festivals: Knowing the Roots New Years Victory Day Ancient Slavic Festivals Orthodox Celebrations International Women ́s Day Professional Days 23: Corruption and Fraud Risks Everywhere in Daily Life Anti-Corruption Efforts Suggestions for Further Reading References 24: Health and Healthcare Health Status Suicide Rate Regional Disparities Unhealthy Lifestyle AIDS and HIV Healthcare System Efficiency and Reform Obligatory Medical System Private Medical Insurance INSIGHT: CoVid-19 and Russia Suggestions for Further Reading References 25: Snapshot of Mass Media Print Media TV and Radio Internet and Social Networking Control and Censorship Propaganda References Part III: Doing the Business 26: Legal Forms for Business Activity in Russia Overview of the Legal Forms Representative Office Opening a Representative Office Activities of the Representative Office Special Case: Branch Subdivision Limited Liability Company Founding Procedures Creation of the Charter Change in Ownership Joint Stock Company Issuance of Shares Bodies of the Joint Stock Company 27: The Russian Taxation System Basics of the Russian Tax System Types of Taxes Tax Administration-Selected Aspects Compulsory Tax Registration for Legal Entities Tax Return and Tax Payment Statute of Limitation and Tax Audits Corporate Income Tax Taxation of Income from Business Activities in Russia Permanent Establishment Withholding Tax Personal Income Tax and Social Security Contributions Personal Income Tax Social Security Contributions Value Added Tax (VAT) Other Types of Taxes Recent Trends in Russian Tax Law Transfer Pricing ``De-Offshorization ́ ́ Developments Anti-Abuse Provisions COVID-19 28: Tax Incentives and Tax Opportunities Special Economic Zones (SEZ) Benefits for Residents in an SEZ Legal Basis and Prerequisite for Becoming an SEZ Resident Technology Innovative SEZ Industrial Production SEZ Tourism and Recreational SEZ Port SEZ Geographical SEZs Kaliningrad and Magadan Special Investment Contract (SPIC) Incentives on Activities Customs Duties Incentives for Foreign Investors Benefits and State Support on Regional Level Other Areas with Special Conditions Advanced Development Zones (ADZ) Free Port of Vladivostok Republic of Crimea and Sevastopol City Incentives Skolkovo Incentives Summary 29: Protection of Intellectual Property in Russia What Can Be Protected? Copyright Law in Russia Patent Law in Russia Trademark Law Protection of a Company ́s Intellectual Assets Protection of High-Tech IP Rights Should a Company Always Protect and Register Its IPR in Russia? Obtaining Protection and Enforcement Outlook and Challenges References 30: Etiquette: Do ́s and Don ́ts Business Meetings and Banquets Meeting and Greeting During the Business Meeting After the Business Meeting: Conversation and Rules of Hospitality Do ́s and Don ́ts in a Nutshell Do ́s Don ́ts Drinking and Toasting Gifts and Other Rituals INSIGHT: Russian Eating Habits and Traditions of Russian Hospitality Suggestion for Further Reading References 31: Education: Quality and Quantity The Structure of the Education System Reformation of Education and Public Financing Curriculum and Unified Exam Education System and Financing Social Concerns Around Education Access to Education and Corruption Commercializing of Public Schools Introduction of Unified State Exam and Rise of Corruption State-Sponsored Higher Education The Cult of Higher Education: Quality and Quantity References 32: Working Culture and Effective Management Style Hierarchy Micro-Management Focusing on People Trust Is Good, Control Is Better Communication Cultural Sensitivity Inappropriate People Management Missing Process Support High Turnover Rates 33: Negotiations: How to Deal in Russia Reference Index A comprehensive guide in a compact format on doing business in Russia. This book contains everything business-minded individuals need to know, using practical information and numerous tips to succeed in Russia. ‘Russia Business’ discusses the economy, highlights the challenges Russia would face after the Coronavirus crisis, and covers key societal topics. In addition, it gives a greater insight into the work culture, business regulation and provides first-hand advice on how to manage a business in Russia. This book covers topics of interest to business professionals looking to enter the Russian market, to grow their Russian operations, and to all managers who intend to update their knowledge about Russia in relevant business areas.