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Huge Investment Opportunities in Russia for International Investors
Since 1986, many companies have successfully established their presence as a result of encouragement by the Soviet government started encouraging foreign investors to seek ventures in various industries with local partners.
What makes Russia an attractive place for business among foreign investors?
What was once a command economy overruling the largest country in the world ultimately transformed into a free-market system following the breakup of the Soviet Union in 1991. With Russia's value proposition consisting of its highly educated workforce, a well-developed industrial sector, appealing tax structure, private spending capacity, and vast natural resource base, the country promises huge growth potential for local and foreign investors alike.
The Impact of the Coronavirus Pandemic to International Companies
Despite the rapid onslaught of challenges brought about by recent investment downturn, falling oil prices, declining household incomes, and the COVID-19 pandemic, almost 92% of international companies firmly believes that Russia is an interesting place to establish business in various key industries. In fact, a large percentage of companies regard Russia as a key market year after year. As a sign of the trust and confidence of foreign investors, almost 76% of international companies that have successfully established their brand in Russia provided up to USD 15.5 million worth of financial assistance to medical, social, and charitable organizations to effective deal with the COVID-19 pandemic.
Existing foreign companies managed to cope well despite pandemic restrictions by shifting employees to remote or work-from-home setup.
There are still many regulatory barriers prevailing in Russia. Laws that relate to doing business in Russia change constantly while some legislations are less developed than others.
Double Tax Treaties with Other Countries
The extensive network of Double Tax Treaties (DTA) Russia engaged in are extremely useful among foreign companies. It protects international trade businesses from being simultaneously taxed in two countries. The Federal Tax Service of Russia has enacted clauses that allow for the reduction of income tax, VAT, and other tax obligations between other treaty member nations.
Companies need to build a smart and realistic strategy under these challenging conditions to achieve long-term success when doing business in Russia. Damalion, an independent consulting firm located in Luxembourg has set up a Russia desk in association with distinctive experts located in Russia. The firm leverages its vast network and long-term relationship with seasoned professionals, accounting firms, law firms and financial advisors to guarantee a successful business set-up and development of Russian companies on behalf of foreign investors. Damalion is available at : https://www.damalion.com
Page Updated Last on: Nov 01, 2021