Close

Legal services for business and people

What foreign business in Russia may expect

  • Main
  • /
  • News
  • /
  • What foreign business in Russia may expect

All we know what is happening at the world right now. Big number of companies have involved in Russian economy. There are a lot of contracts and agreements with Russian big and not too big business. There are some foreign interests in Russian investment and investment in Russia. What are going to be after all? That's the question.

What to do if your business is already in Russia?

All sanctions are imposing from foreign countries. At the time Russia can't impose back any sanctions on foreign business in Russia due to self-harm reason. It is obvious Russian authorities will urge foreign business stay in. That means Russian government may assist foreign business to stay instead. Would foreign country fine the company because of staying in Russia nobody knows but obviously Russia wouldn't in any case - it is simply unprofitable. Would Russia ban transferring money from Russia to abroad? This is the main question. This scenario highly likely.

Is it worth to begin business in Russia now?

The answer is obvious - no. There are a lot of risks in Russia due to latest events. But if the business is not connected to Europe or other US-focused market barely it would be affected and should be a concern. Because of latest events a lot of raw materials may become free of foreign market. The raw is the raw. If it is cheaper to buy it in Russia why not to do it. And it will happen if the events will take place as all expect. That applies to goods as well. If there is no buyer on your product it goes down on price.

Besides raw material Russia will be forced produced more goods for self-maintenance. Therefore, more Russian will need to obtain more service and goods from other than West sources.

Very unlikely Russian government would take any actions on violating of foreign business' rights.

How to evaluate risks?

We propose services of risk evaluation to our foreign colleagues. We can check all consequences of business in Russia in specific realm. But all the risks certainly on the business owner shoulders.

How can we help you?

If you have any interests in Russia and have questions about next steps please don't hesitate to contact us. If we able to respond your issue we will and assist immediately.

28.02.2022

We have been working since 2006.