own. This runs somewhat contrary to attitudes in other countries, such as the Netherlands or Belgium, were even smaller companies like to get involved with import operations and as readily export or re-export what they had imported. Trading traditions are lacking in Russia. Very cumbersome, always shifting, customs regulations repulse potential importers. Even more important are the product certification requirements. Russian companies don't want to certify someone else's products for importation because the process is complicated and expensive and the exporter or manufacturer is to benefit most and may, if so desires, sell the same but already certified products to someone else. Letters of credit are largely unheard of and no one in Russia would wire cash to an exporter. Besides, direct purchases against advance payment are frowned upon by the authorities. In case of non-delivery, the tax authorities view the transaction as a case of illegal capital export. Hence people prefer to deal with foreign exporters who have established their own facilities in Russia and prefer to buy products already in the country without getting entangled in an importing operation.

Unpredictability of state actions in certain sectors of the economy.
Largely bowing to popular pressure, a natural development in a democracy, Russian state has occasionally interfered in certain “sensitive” segments of the economy. The sectors state action affected the past and may again get involved in the future are oil and energy, natural resources, gambling, tobacco as well as manufacture and distribution of alcoholic beverages. While the above areas of economic activity are as promising as they have always been throughout human history, a likely entrant must well be aware that likewise historically these sectors had been prone to occasional governmental interference.

The Conclusion
Bureaucracy is strong, regulations are often nonsensical, though these drawbacks might be perceived as an indirect tax one has to pay for doing business in Russia. In all other respects, as things stand now Russia is one of least taxed and most dynamic nations on the globe. Entering Russian market bears few relatively minor risks but offers enormous rewards. If you are interested in the Russian market, want to certify your products for export sale in Russia or establish a subsidiary in the Russian Federation, contact us via email at info@russiacertifaction.com or by regular mail.

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