It is becoming safer to run a business in Russia but crime and corruption are still the predominant political issue. Crime and corruption put foreign (but also domestic) companies interests, assets and personnel in danger.

Companies and individuals doing business in Russia can become a target of Russian criminals. The mafia used to commit crimes against member of the communist party, but after the fall of Communism, every successful citizen who managed to make money became the mafia’s target. According to many sources, approximately 10 000 business people have mysteriously disappeared since the beginning of the 90s. Any foreigner who would like to set up a business in Russia have therefore to take into consideration the need to expend large amount of money on security.

Legal remedies for fraud, recovery of damages, or reimbursement on business losses as we know them in the United States do not exist in Russia. The U.S. judicial system provides unique recourse for both civil remedies and pursuit of criminal violations.

Bribe-taking is still a standard practice among Russian Government officials, civil servants and many others. Therefore it may be necessary to give away bribes when operating in Russia, despite the fact that such acts are illegal under both Russian and European law. However, businessmen doing so should be aware that they are facing the risk to pay important fines.

The relation between the UE and Russia are privileged and can enable to reduce some of the risks faced when operating a business in Russia.

2004 Index of Economic Freedom

Source: Heritage Foundation, 2004