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Today's Russia has a vibrant consumer market. For the last eight years, actual purchasing power of Russia's residents has been effectively doubling biannually. At this time juncture, certain sectors of the Russian economy such as services, residential construction and automotive sales are either the second fastest or the fastest growing respective segments in Europe, in some cases, the world. Russia's GDP as adjusted per purchasing power parity (PPP) is now the 10th largest in the world, ahead of Spain, Canada, Mexico, Australia, Indonesia or Argentina, and the growth trend is strongly positive. On the other hand, all perspective market entrants to Russia face difficulties of the kind they would not encounter anywhere else. One of such obstacles is the product certification in Russia. This should come as no great surprise if one considers that to a large extent the country has been isolated from the rest of Europe for two thirds of a century, and has inherited entire unreformed structure of Soviet administration and governance. Many foreign businesses wishing to tap into Russian market must first tackle the problem of Russia certification, a process that can be complicated, arduous, expensive and time consuming. Attempts of small and medium sized foreign companies wishing to find reliable local distributors and agents or establish Russian subsidiaries on their own might become frustrated by misunderstandings, impenetrable language barriers and what might often appear as complete lack of common sense. Official procedures are often grotesquely complex, rules are arbitrary, petty and pointless. Amounts of paperwork involved in most mundane endeavors are epic. On the other hand, individuals and companies which manage to overcome these obstacles, admittedly they do so rarely on their own, reap rewards of a vast booming market still hungry for products and services. It's fairly common for foreign companies, especially for small and medium sized European exporters and manufacturers of food products, beverages, health- and dental care items, to become so successful in Russia fast that the profits derived from this newly entered market exceed those earned in their long-established domestic marketplace. |
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