Corruption in Russia

[Smilygirl]

Do you think that the level of corruption in Russia is really so high? Will you still try to do business in Russia? What could be the ways to fight corruption?

 

[RBS]

Yes and No. We need more details to give you any advice.

 

[TotallySport]

no more than in the UK or anywhere else

 

[Smilygirl]

TO tell the truth I am myself from Russia. But for me it is interesting, what foreign people think about it? What does really prevent foreign companies from opening their business in Russia, if as you say, corruption level in UK and in Russia is practically the same?

 

[TotallySport]

TBH I have no idea about corruption in Russia, only whats in films and thats not reliable, but there is corruption everywhere, corruption also depends on your point of view.

 

[Method Man]

I think political instability is more of a concern at the moment.

 

[Smilygirl]

Well, then, you could the person who will be ready to open the business in Russia))))))

If you want to know about corruption in Russia, you can read an article named "Corruption perception index in Russia".

I am new here, so I don't know if I have a right to put here the name of the website where you can find this article or the link to it. Do you know? If yes, I can add also the link to it, because it is quite an interesting article.

 

[TotallySport]

i do know and no your carn't as its self promotion, you can post a blog though.

 

[Smilygirl]

Yes, political instability is of more concern due to our presidential elections that will happen in March and all these protests. Everybody discusses here if now Putin has a real chance to become the president and can Russian people imagine their country without Putin.

Good question. Unfortunately, there are no worthy candidates.

 

[Smilygirl]

Ok ,thanks, it is not my article, but still it is interesting. Later I will post a blog

 

[Deleted member 130387]

A lot of Cypriots have invested in Russia: banking, construction and services. These companies can afford a due diligence on a foreign market. Plus these industries are more straightforward to get into.
In my business we could not identify the correct partners to enter the Russian market. We know it is potentially a huge market. Instead we are entering the UK market. Easier to perform market analysis, communication etc.

Andreas

 

[Smilygirl]

Andreas, I understand you. A lot of people say that they don't want to invest into Russia because of lack of information, etc.

If you want maybe I can help you to find partners here, because I work in the sphere where we promote investment projects of Russian regions and also we provide promotion services and informational support for foreign companies

 

[MikeJ]

Having done business in Russia, been to Russia several times, been arrested in Russia, and seen first hand bribes being taken by customs officers (and a police officer, in order for me to become de-arrested), I'm quite confident that Russia is a bit more corrupt than the UK.

 

[Method Man]

Mmmmm

I think that out of the so called BRIC economies, Russia is the one that I'd feel least confident dealing with.

Isn't there an oil billionaire currently serving something like four life sentences in jail over there for whistling on a Tuesday?

 

[boob930]

Want to know that the REAL corruption means?
Try to deal with Russia!
Successful traditional russkies tandem of burocracy anr corruption will ruin any businnes in that damn country.

And try hahaped.

 

[Smilygirl]

Yes there is such a billionaire, Khodorkovsky. But that is the problem, Russian lost the confidence of foreigners. But TBH it is possible to do business in Russia. Yes, you will have to take into consideration Russian traditions and business manners and to learn them!!! And after it will be easier. Investment climate is improving. Even tenders for governmental orders are gaining momentum

 

[Jacob F]

I won't be booking any hotel rooms for the London 2012 games from Russian registered websites.

 

[Method Man]

I think that given the UK's current economic outlook, Russia represents too high a risk to do business with.

I'll leave it to the Chinese thanks.

 

[Aurora Baltika]

It's potentially a great market with huge risks and no rules.

 

[Method Man]

It's potentially a great market with huge risks and no rules.

How on earth do huge risks and no rules make for a "great market" even potentially :|

To me, those two drawbacks would rule out any so called potential entirely.

 

[Aurora Baltika]

How on earth do huge risks and no rules make for a "great market" even potentially :|

To me, those two drawbacks would rule out any so called potential entirely.

That's why you don't do business there, I assume

 

[andypow]

Having lived there and conducted business there in the 90's for 4 years I can tell you corruption was rife. today it can be easier, but you need experience in the market, someone who knows the way things are done and who to turn to if things go wrong. Someone earlier said that they only have experience of corruption in Russia from the movies and that you couldn't really trust that. Well trust me, if I were to write a script of what I have actually witnessed, nobody would believe it! But would I do it all again, hell yes.

It is a great country with great people and of course there is a risk/reward ratio, but risks can be kept to a minimum.

Do not place too much faith in the law, it will not be there for you.

Pick a partner and tread carefully.

 

[blueprint]

Russia has tens of thousands of businesses being illegally closed by courts when owners go on holidays every year. Owners come back and all assets are sold and the business is closed. Is it really worth a risk?
Russia has extremely corrupted government and legal system that is run by mafia.

 

[Psl]

Corruption in Russia starts at the top and doesn't trickle down, more like cascades down through politics and business.

You only have to look at the very public case of Mikhail Khodorkovsky and Yukos. How many more businesses has the 'state' meddled in?

That said I would love to do business in Russia, with the right partner of course.

 

[360interactive]

no more than in the UK or anywhere else

and this is based on your own experience?

Edit - just read your post number 5, so need to respond.:roll eyes:

I spent some time (only 2 weeks mind) there last year, it was one hell of an eye opener. With only a small amount of cash you can buy your way out of anything. With large amounts, the country is your oyster.

 

[Nuno]

Corruption rules all areas in Russia.

Last month the Phobos-Grunt space craft crashed and the industry talk is that all the chips on board were signed off as being able to withstand high radiation, whereas they were low radiation chips. They burned, it crashed, someone made some money.

Not good for the reputation of Mother Russia.
Probably not good for the long term health of the bribe takers and all involved, lots of 'fell off top of building' events coming up.

 

[getitstraight]

no more than in the UK or anywhere else

Wrong. Fact.

TBH I have no idea about corruption in Russia

Oh, thats explains it. But why post if you have no idea?

 

[Iranda]

Corruption is rampant in all developing companies but people still do business there... i think the trick is to avoid learn to identify and avoid the potholes...

 

[Dan@Printwell]

Does anyone think it will change if Putin goes?

 

[FilterationChina]

It's nothing compare to China in the political, you should be happy.

 

[greenwisehandbags]

I think the same as Smilygirl.I do business with Russia and it is always most sensitive for shipment to be received from customs before some money paid this way or the other.Customers there they know the situation but they can not do anything about it.Pay and get your shipment.I hope the situation will be improved......

 

[vAn_734]

i"m not really familiar with Russia , but comparing it to UK might be somehow off - i got a research months ago about governments who are contributing to less fortunate countries and UK and Sweden is among them.

 

[Capricorps]

A very funny readung! Thanks for those users who still believe Moscow to be full of men with balalaikas and bears)))
I am in the field of trading in Moscow and other russian cities for over 5 years by the moment. I bought things in England, Australia, USA and other countries and sold these products in Russia.
Just imagine you are a footbal player, you play in the yard with your friends for years and discuss Inter and Real. Suddenly you find yourself in semifinal in Euroligue on the field and you play against, say, Manchester United))) Naturally you and your friends will be out of breath in 15 minutes. Still, people know how to win this monster.
If you know how to solve problem you can solve it. Get prepared for customs clearence beforehand and do not wait for officer to say that you need to get a certificate GOST or exemption letter or estimate the value of goods correctly.
Do not try to chiet, get prepared properly and there is not going to be any problem. Right now I am a project manager and prepare business strategies for foreigners in Russia. Why? It is much possible.

 

[Nuno]

"get prepared properly"

The point of this thread is that the preparations you need to make include graft, bribery and corruption. Perhaps less than some places, certainly more than many places.

A blind acceptance that it is part of the way things are ignores the fact that corruption increases the risk of doing business, which means people will need a higher return and this increases the cost of business. This limits the amount of business done.
Right now Russia is coasting on a sea of energy money and doesn't have to worry about this. This will change, and it will just be third world with missiles again. The UK will probably be in the same club for other reasons.

 

[odgate]

business is everywhere,no matter whether the level of corruption is high or not,maybe it's will be better for you to do business in that situation,but about Russia,I don't know much about it,so ....but can i know what the line of business are you in ?

 

[Capricorps]

A lot of Cypriots have invested in Russia: banking, construction and services. These companies can afford a due diligence on a foreign market. Plus these industries are more straightforward to get into.
In my business we could not identify the correct partners to enter the Russian market. We know it is potentially a huge market. Instead we are entering the UK market. Easier to perform market analysis, communication etc.

Andreas

Hm... There are greate quantity of companies that render different services in the sphere of protion of foreign companies in Russia. Send me a PM, I am exactly in this way and with a bnit of experience.

 

[Edward Mos]

Well, it's rather interesting what you are writing here. I can tell you, your opinions are not quite true. I'm living in Moscow and until recently I was engaged in business. Several weeks ago I have sold it (it's ok I had a very successful deal).
Today corruption in Russia is everywhere, and please do not compare with 90's. Сorrupt officials in 90's just children as against with current.

If you really want to know out the level of corruption in Russia please come here and try to do business here.

 

[2ruink]

corruption is everywhere

 

[MASSEY]

no more than in the UK or anywhere else

That's wrong.

Companies in the UK can do as they please.

Companies in Russia.... Did you watch the BBC show "Putin and the West".

They get up to all sorts.

One oil company, a private one, was going to sell half to a USA company so Putin went in and claimed they were tax evading and threw the director in jail so USA could not get half the company.

They also went into companies that were laying off lots of staff and threatened to have the state take over the company - basically jilting the directors out of their money.

 

[Edward Mos]

One oil company, a private one, was going to sell half to a USA company so Putin went in and claimed they were tax evading and threw the director in jail so USA could not get half the company.

That's true. It's about Mikhail Khodorkovsky. He certainly was not a very good guy in oil business, but after he was jailed the guys from former KGB received a signal. Besides, Khodorkovsky was imprisoned on false charges.