Why Invest in Russia

Russia had its ups and downs in terms of investments through the years, but now it is situated in a favorable position. Ernst & Young's European Attractiveness Survey ranked Russia by 21% rating in 2008, which meant nine points above the registered score in 2007. Although it has never been a top destination for foreign capital, Russia is an attractive spot for entrepreneurs who are looking for a country rich in natural resources, with an extended consumer market and a strategic location on the map.

Location

Russia is the largest country in the world, extended on two continents, Europe and Asia, and bordering 14 countries: Norway, Finland, Estonia, Latvia, Lithuania, Poland, Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia and North Korea. This is the reason why it also represents a large consumer market of over 140 million people with access to many more, practically the whole world by sea, roads, air and pipelines.

Special Economic Zones 

The main Special Economic Zones in Russia are only available for industrial production, technology and tourism. Foreign investors who decide to set up a firm in one of these areas benefit from a period of low taxation and business support from the Russian government.

Natural Resources

Russia occupies the first place in the world in terms of gas production and reserves of natural gas. It also has the most reserves of coal, peat, forest and iron. Furthermore, Russia owns the most sodium salt reserves, water reserves, zinc and titanium reserves. It has 18% of the world reserves of oil and 40% of the world reserves of nickel.  In addition to that, Russia occupies the first place in the world in terms of diamond reserves, production and exports. 

Workforce

Russia offers a skilled and highly-educated workforce, due to the solid educational system. Strong scientific and research knowledge are formed in schools, preparing future scientists for the research and development departments. The results are also reflected in the technological innovations introduced by Russians in aviation, shipbuilding, construction, metallurgy or chemistry.

Taxes

The Russian corporate tax has been reduced from 24% in 2008 to 20% and the VAT maintains to a standard of 18%. However, some entrepreneurs may apply for VAT exemption if their annual turnover does not exceed 46,000 EUR. Moreover, the Special Economic Zones are subject to a special tax treatment.

BridgeWest offers assistance for setting up a company in Russia, including virtual office and other related services.