Business

Environment in Russia

Presented
by :
Pooja -21
Nitin-22
Vaishali-23

Overview of the Russia

Economy

Russia is the sixth largest economy in the world by PPP

and tenth largest at market exchange rates .
Russia is unusual among the major economies in the way
that it relies on energy revenues to drive growth
Russia has one of the world's largest and most
influentialfinancial markets
Russias nominal GDP was estimated to be $1.175 trillion
as of Q1 2015 and $ 3.458 trillion (April 2015) (PPP)
World Bank predicted that Russias economy would
shrink by 2.7 percent in 2015, but return to growth of 0.7
percent in 2016

Overview of the Russias

Economy
GDP
GDP rank

$1.175 trillion (nominal; 2014)

$3.458 trillion (PPP; 2014)

10th(nominal) /6th(PPP)

GDP growth

-4.6% (Q2, 2015)

GDP per capita

$14,099 (2014)
$24 067( Estimated 2015)
53th(nominal) /74th(PPP)

GDP by sector

Agriculture: 4.0%
Industry: 36.3%
Services: 59.7%
(2014 est.)

Inflation(CPI)

15.3% (June 2015)

Unemployment

5.3% (June 2015)

Exports

$210.2 billion (Jan-Jul 2015)

Imports

$110.9 billion (Jan-Jul 2015)

Foreign reserves

$359.9 billion (Jul 2015)

Pros of Doing Business

in
Russia

Dynamic Economic Growth

Russia is growing more moderately at 3.8% to
4.2% a year
One of the LargestConsumer Markets
4th largest market in Europe
Over 140 million consumers with increasing
incomes
World-Renowned Human Capital
One of the most highly skilled workforces in the
world
Strong education
Unique Geographic Position
Excellent access to sea, road, and rail routes as

Pros of Doing Business in

Russia
Vast Natural Resources
35% world gas
production and exports
47% of world reserves
of peat
23% of world forest
resources
Attractive Taxation
System
One of the most
generous non-offshore
tax regimes in the world
aimed at promoting
investment
further developing the
economy.

Extensive Government Support

Russian government works with
business community
Public-private partnership
programs
Existing infrastructure,large
investment and development
programs
Stable Social and Political
System
Living standards have been
steadily improving
World's 7th largest economy by
purchasing power parity
Russia is a member of G8, the
United Nations, APEC, SCO, and

Russia

ECONOMY OVERVIEW
Region: Europe & Central Asia

Income category: High income

Population: 143,499,861
GNI per capita (US$): 13,860
DB2015 rank:
62
DB2014 rank: 64*
Change in rank: 02
DB 2015 DTF:
66.66
DB 2014 DTF:
65.04
Change in DTF: 1.62

Doing Business
Report
Life cycle of a business consists of:
Starting a business

Dealing with construction permits

Getting electricity
Registering property
Getting credit
Protecting minority investors
Paying taxes
Trading across borders
Enforcing contracts
Resolving insolvency
Labour market regulations

Starting a business

According to data collected by Doing Business,

starting a business in Russia requires 4.4
procedures, takes 11.2 days, costs 1.2% of
income per capita and requires paid-in
minimum capital of 0.0% of income per capita
Globally, Russia stands at 34th in the ranking
of 189 economies on the ease of starting a
business

Starting a business
Reforms

Russia-DB2015
The Russian Federation made starting a
business easier by eliminating the requirement
to deposit the charter capital before company
registration as well as the requirement to notify
tax authorities of the opening of a bank account.
This reform applies to both the Moscow and St.
Petersburg

Dealing with
Construction Permits

According to data collected by Doing

Business, dealing with construction permits in
Russia requires 19.8 procedures, takes 238.4
days and costs 1.9% of the warehouse value
Globally, Russian Federation stands at 156 in
the ranking of 189 economies on the ease of
dealing with construction permits

Getting electricity

According to data collected by Doing Business,

getting electricity in Russia requires 5.6
procedures, takes 179.1 days and costs
321.0% of income per capita
Globally, Russian Federation stands at 143 in
the ranking of 189 economies on the ease of
getting electricity

Registering Property

According to data collected by Doing Business,

registering property in Russia requires 3.0
procedures, takes 19 days and costs 0.1% of
the property value
Globally, Russian Federation stands at 12 in
the ranking of 189 economies on the ease of
registering property

Registering Property
Reforms

DB2014
Russia made transferring property
easier by streamlining procedures and
implementing effective time limits for
processing transfer applications
DB2015
Russia
Federation
made
transferring property easier by eliminating the
requirement for notarization and introducing
tighter limits for completing the property
registration. This reform applies to both
Moscow and St. Petersburg

Getting credit

The Russian Economy has a score of 7 on the

depth of credit information index and a score
of 4 on the strength of legal rights index
Globally, Russian Federation stands at 61 in
the ranking of 189 economies on the ease of
getting credit

Protecting minority
investors

The Russian economy has a score of 5.1 on

the strength of minority investor protection
index, with a higher score indicating stronger
protections.
Globally, Russian Federation stands at 100 in
the ranking of 189 economies on the strength
of minority investor protection index

Paying Taxes

In Russia, On average, firms make 7.0 tax

payments a year, spend 168.0 hours a year
filing, preparing and paying taxes and pay
total taxes amounting to 48.9% of profit
Globally, Russian Federation stands at 49 in
the ranking of 189 economies on the ease of
paying taxes

Paying Taxes
Reforms

DB2013 Russia eased the administration

burden on taxes for firms by simplifying
compliance procedures for value added tax
and by promoting the use of tax accounting
software and electronic services

Trading Across Borders

According to data collected by Doing Business,

In Russia, exporting a standard container
of goods requires 9 documents, takes 21.1
days and costs $2400.5. Importing the
same container of goods requires 10
documents, takes 19.4 days and costs
$2594.5
Globally, Russian Federation stands at 155 in
the ranking of 189 economies on the ease of
trading across borders

Enforcing Contracts

According to data collected by Doing Business,

In Russia contract enforcement takes 267.0
days, costs 14.9% of the value of the claim
and requires 35.0 procedures
Globally, Russian Federation stands at 14 in
the ranking of 189 economies on the ease of
enforcing contracts

Resolving Insolvency

According to data collected by Doing Business,

In Russia resolving insolvency takes 2.0 years
on average and costs 9.0% of the debtors
estate, with the most likely outcome being
that the company will be sold as piecemeal
sale.
Globally, Russian Federation stands at 65 in
the ranking of 189 economies on the ease of
resolving insolvency

Resolving Insolvency
Reforms

DB2010 Russia enhanced its insolvency

process by introducing several changes to its
insolvency law to speed up the liquidation
procedure and strengthen the legal status of
the secured creditors
DB2011 Russia introduced a series of
legislative measures in 2009 to improve
creditor rights and the insolvency system

Labour Market
Regulation

Doing Business measures flexibility in the

regulation of employment, specifically as it
affects the hiring and redundancy of workers and
the rigidity of working hours.

Overview

Conclusion

Although the Russia ranks 62 in over all ease of

doing business, which better than other BRIC
countries (China 90, Brazil 120, India 142), it needs
further tax reforms tax rates are very high at to
48.9%.
Russian economy is heavily dependent on Oil and
Gas is another matter of concern on the long term.
Russia foreign policy especially its covert wars with
its neighbours has invited economic sanctions which
creates some level of economic uncertainty
Economy seems to be robust withstanding some of
these issues in environment.

Thank you