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RUSSIA

  • State
  • Population
  • Currency
  • Politics
  • Time zone
  • How to get to Russia?
  • Infrastructure
  • Wages
  • Economic information and foreign trade
  • Legal framework
  • Official papers
  • Cultural heritage and gastronomy
  • Prices
  • Safety
  • Working hours
  • Public holidays

    State

    Official name:Russian Federation
    Area:17 075 200 km², largest country in the world
    Administrative divisions: Russia is divided into 89 administrative divisions, which include provinces, two federal cities (Moscow and St.Petersburg), 16 republics with their own independent governments, 5 autonomous regions and 10 national regions; the latter two enjoy less autonomy than the republics.

    Cities:

  • Moscow (14 million people), Russia’s chief business centre and magnet for foreign investments
  • St. Petersburg (5,5 million people) is considered Russia’s most European city
  • Novosibirsk (1,3 million people), largest city and major industrial centre in Siberia
  • Nizhni Novgorod (1,3 million people), major river port at the confluence of Oka and Volga, industrial center and railroad hub
  • Vladivostok (600 000 people), main port in the eastern part of Russia, at the crossroads of northeast Asia, close to the Chinese border

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    Population

    Population: 143,5 million inhabitants

    Ethnic groups:

    Russian (81,5%), Tatar (3,8%), Ukrainian (3%), Chuvash (1,2%), Bashkir (0,9%), Byelorussian (0,8%), other (8,8%)

    Official language: Russian is the official language.

    However, about another 50 languages are used by the different nationalities living in the Russian Federation.

    Religion:

    Majority Orthodox, but also Muslim, Buddhist, Catholic, Protestant, Judaic

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    Currency:

    Official currency: Russian Rouble (RUB)
    Exchange rate: 1 EUR = 33,24 RUB (last update: 24-03-03)

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    Politics

    Political system: Presidential democracy
    President: Vladimir Putin
    Prime Minister: Mikhail Kasyanov

    Political parties:

    Communist Party of the Russian Federation is the successor of the Communist party that has ruled over the former USSR for over 70 years. Although it has reformed some of its views and has accepted the need for socio-economic reforms, the party finds support with the conservative parts of the population. The discourse of its leaders is somewhat nationalistic and nostalgic of the former “glorious” past of Russia as a world super-power.

    Inter-Regional Movement Unity- Medved is a populist party.

    Fatherland All Russia is a centrist grouping aiming to protect the Russian manufacturers and farmers and to reinforce the regulatory role of the state.

    Union of Right Forces is a coalition of small, centre-right parties dominated by the Democratic Choice of Russia. The Union advocates pro-Western, reformative policies.

    Liberal Democratic Party of Russia is a nationalist and xenophobic party centred on its leader and his populist, inflammatory speech. Its followers are among the population that was most effected by the transition and reforms.

    Apple advocates for economic reforms linked with social protection programmes. It is a liberal reformist party and most of its followers are among the small Russian middle class.

    Our Home is Russia is a moderate reformist party.

    Elections:

  • Next elections for Presidency in 2004
  • Next elections for Parliament in 2007

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    Climate

    Russia has a differentiate climate extending throughout the country from east to west. Most of the European part of Russia as well as the northern part are characterized by a continental, temperate climate with very cold winters and hot summers. The climate is milder along the Baltic coast. Siberia is characterized by very cold and long winters whereas summers are short and humid. A drier steppe climate extends from the Black Sea to the northeastern part of Russia.

    The average temperature in Moscow ranges from -6°C in December to 19°C in July, in St. Petersburg the average temperature ranges from -7°C in February to 18°C in July.

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    Time zone

    There are eleven time zones; Moscow is three hours ahead of GMT, two hours ahead of Belgium, the Netherlands, and Germany.

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    How to get to Russia?

    By plane

  • Moscow: daily flights to/from all major European cities by most major European airlines
  • St.Petersburg: daily flights to/from many European capitals, or via Moscow
  • Novosibirsk: direct flights from Frankfurt, Hannover, or via Moscow or St. Petersburg
  • Nizhni Novgorod: via Moscow (530 km away) or St. Petersburg (180 km away)
  • Vladivostok: via Moscow

    By car

    Travelling by car is rather not a good idea. Very few adventure to travel by their own car to Russia, because of the long distances, the pile of documents needed to drive inside the country and the poor road safety.

    Driving distance Sofia-major European cities

    Km Driving time (hours)
    Amsterdam 2 478 28,5
    Belgrade 2 09727
    Berlin 1 85223
    Bratislava 1 89522,5
    Brussels 2 58329
    Bucharest 1 78322
    Budapest 1 85624
    Copenhagen1 34934
    Frankfurt 2 31927
    Ljubljana 2 31927
    London 2 86533
    Munich 2 24827
    Paris 2 86632
    Prague 1 86823
    Rome 3 02633,5
    Sofia2 19027
    Vienna 1 96223,5
    Vilnius87711
    Warsaw 1 26015,5
    Zagreb 2 24727,5

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    Infrastructure:

    Russia has an extensive road network of 952 000 km of road, but many of the existing highways need upgrading and there is a stringent need to further develop the existing road infrastructure. Most roads are situated in the European part of Russia whereas in Siberia and the remote eastern parts, road density is lower. The entire federal highway system is centred on Moscow. There are plans to improve the current situation by building another 50 000 km of highways over the next decade as well as refurbish about 47 000 km of the existing infrastructure. Traffic jams are quite frequent in Moscow.

    The existing highway system includes:

  • M1: Moscow - Smolensk (some sections are motorways)
  • M2: Moscow - Tula - Kursk - Belgorod (Moscow-Tula is a motorway)
  • M3: Moscow - Bryansk - Sevsk
  • M4: Moscow - Voronezh - Rostov-na-Donu - Krasnodar
  • M5: Moscow - Ryazan' - Penza - Samara - Ufa
  • M6: Moscow - Tambov - Volgograd
  • M7: Moscow - Vladimir - Nizhniy Novgorod - Kazan - Ufa - Chelyabinsk
  • M8: Moscow - Yaroslavl - Arkhangelsk
  • M9: Moscow - Rzhev & Velikiye Luki (motorway)
  • M10: Moscow - St.Petersburg
  • M18: St.Petersburg - Murmansk
  • M29: Rostov-na-Donu - Mineralnye Vody - Nalchik - Makhachkala
  • Siberian highway: Yekaterinburg - Perm, Chelyabinsk - Omsk - Novosibirsk - Kemerovo - Krasnoyarsk - Irkutsk - Chita
  • AYAM highway: Aldan - Yakutsk
  • Don highway: Moscow-Kashira- Chita - Khabarovsk (Moscow-Kashira: motorway)

    Russia has a well-developed rail infrastructure (149 000 km of rail, 38 000 km electrified). It is the preferred way to travel by most Russians. Rail transport is quite cheap, but sometimes uncomfortable and slow. Moscow has eight train stations and St. Petersburg has four train stations and they are well connected to all large cities as well as to other countries (China, the Baltic States, Finland, Germany, Poland, Ukraine and Byelorussia). The trains run by private companies are faster, cleaner, more comfortable and more expensive and they usually have a name (e.g. Krasnaya Strela (Red Arrow) train connecting Moscow to St. Petersburg). The Trans-Siberian stretches from Moscow to the Far East (Moscow to Vladivostok), connecting the capital to Siberia and far-away eastern areas.

    Moscow and St. Petersburg are the main international airports and are serviced by most European carriers as well as Delta and Lufthansa. Air travel isn’t very expensive and, given Russia’s large territory, it can prove a good alternative when travelling inside the country, and at times the only viable option when travelling from Moscow to some remote parts in Eastern Russia. There are many small national carriers and not all of them are very reliable. Aeroflot and Transaero are Russia's most respected carriers.

    The length of the navigable river and lake ways in Russia is 89 000 km. The most important navigable waterways are on the river Volga, Severnaya Dvina, Don, Ob, Yenisey, Lena, Amur. The main river ports are Nizhni Novgorod, Saratov, Samara, Tver, Rostov-na-Donu, Archangelsk.

    The most important seaports for year-round navigation are: St. Petersburg, Murmansk, Vladivostok, Kaliningrad, Nakhodka, Vostochny, Vanino.

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    Wages:

    Average gross wage (2002): 145 EUR

    Average wage for a manual labourer: 100 EUR

    Average wage for economist leaving university: 250 EUR

    There are considerable regional differences in wage levels. Therefore when looking for staff, it is important not to pay exuberant wages, as they will not motivate your local staff at all, but on the other hand beware not to pay too low wages, as they will without doubt demotivate your local staff. Eastwards takes care of your recruitment of local top management, sales and financial management or specialists, and will consult you which wage packages are most suitable for the job responsibilities and place of employment you offer.

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    Economic information

    2000 2001
    Inflation 20,8% 20,7%
    Real GDP growth rate
    (change to previous year)
    9% 5%
    GDP per capita 1 872 EUR 2 382 EUR
    Unemployment 10,5% 8,7%


    Trade with Germany

    2001 Percentage of the total
    Exports to DE 8 543,3 mil. EUR 9,3%
    Imports from DE 4 920,7 mil. EUR 12%


    Trade with Italy

    2001 Percentage of the total
    Export to IT6 889,8 mil. EUR7,5%
    Imports from IT 1 558,2 mil. EUR3,8%


    Trade with Ukraine


    2001 Percentage of the total
    Exports to UA4 776,9 mil. EUR5,2%
    Imports from UA4 141,6 mil. EUR10,1%


    Trade with USA


    2001 Percentage of the total
    Exports to USA4 042 mil. EUR4,4%
    Imports from USA3 239,4 mil. EUR7,9%


    Trade with UK

    2001 Percentage of the total
    Exports to UK3 950,1 mil. EUR4,3%
    Imports from UK 943,1 mil. EUR2,3%


    Trade with EU

    2001 Percentage of the total
    Export to EU47 686 mil. EUR86%
    Imports from EU27 961 mil. EUR 30,4%


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    Legal framework for doing business in Russia - types of companies

    Full partnership
    Trust partnership
    Limited partnership
    Limited liability company
    Double liability company
    Closed joint stock company
    Open joint stock company

    For further information on establishing a company in Russia, please contact us.

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    Official documents

    International passport needed for entering the country, you will be controlled at the border. EU nationals need a visa as well when entering the country. You can always apply for visa at the closest Russian embassy or consulate abroad. Prices vary depending on the length and purpose of your stay.

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    Cultural heritage & gastronomy

    Russia is a country of great and rich natural resources and cultural heritage, the bridge between Europe and Asia. Moscow with its historic centre (the Kremlin and the Red Square) bears the imprint of history-studded centuries. It is the seat of the Russian Orthodox Church as well as many other world-famous cultural institutions, e.g. Bolshoi Theatre, the Maly Theatre, the Moscow Art Theatre, the State Pushkin Museum of Fine Arts. St. Petersburg, founded by the emperor Peter the Great, is considered Russia’s most beautiful city, the Venice of the North. It is one of the great centres of Russian culture hosting the world-renowned Hermitage Museum with a wide collection of European, Asian and Russian art. It is the center of Russian classical dance and home of the Mariinsky Opera and Ballet Theatre. Apart from the two metropoles, Russia has a lot to offer and given its size, it is a country of great contrasts. The most adventerouse ones can go up to Siberia, to the remote Altai mountains, or the volcano land, Kamchatka.

    Historic cities: Moscow, St.Petersburg, Novgorod, Kaliningrad, Vladivostok
    Smaller historic places: Vladimir, Suzdal, Kostroma, Yaroslavl, Rostov Velikiy, Pereslavl-Zalesskiy, Sergiev Posad, Petrodvorets, Pushkin, Zelenogorsk, Vyborg, Tver, Tula
    Nature: Lake Baikal (deepest freshwater lake in the world), Kamchatka, Altai Mountains, Karelia

    Gastronomy

    Traditionally, almost any meal begins with zakusky, the name under which a wide range of appetizers and starters are served. Traditional meals include: borsh (cabbage and beetroot soup), pirozhky (fried dough filled with meat or cheese), blini (pancakes), pelmeni, vareniki (dumplings with cheese, meat), shashlyk (meat kebabs). Bread is an important part of the Russian diet. Black tea and kvas (non-alcoholic drink that tastes like beer) are largely consumed. Vodka drinking is a national tradition.

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    Prices

    Regional price differences are huge. The capital and the major cities are more expensive than the rest of the country.

    RUBEUR
    bread100,3
    0,5 l of beer200,6
    1 cup of coffee300,9
    1 bottle of wine100-10003-30
    1 litre of milk200,6
    1 kg of chicken meat651,9
    1 litre of petrol120,36
    Average cost of meal
    (Moscow/St.Petersburg)
    250-4507,5-13,6
    Real estate/m2
    (outside Moscow)
     300-700
    Real estate/m2
    (in Moscow)
     700-1600
    1 movie ticket30-5000,9-15
    Average cost of lodging60-200

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    Safety

    In larger cities it is quite safe during the day and in the evening. Although common sense precautions apply in Russia just as anywhere else: avoid carrying with you and exposing too much cash, expensive equipment, lumps of gold etc. A Russian-speaking guide is always an asset.

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    Working hours

    Public institutions 9.00-17.00 often closed for lunch
    13.00-14.00 or 14.00-15.00
    Business offices09.00-18.00
    Banks9.00 - 18.00
    Department stores09.00 -19.00
    Shops (grocery stores)08.00-21.00

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    Public holidays

    2004
    New Year’s Day January, 1st,
    January, 2nd,
    Orthodox Christmas January, 7th
    Fatherland Defender Day February, 23rd
    Women’s Day March, 8th
    Easter Monday April, 28th
    Labour Day May, 1st-2nd
    Victory Day May, 9th
    Independence Day June, 12th
    Day of Accord and Reconciliation November, 7th
    Constitution Day December, 12th

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