Russia

Presentation by Mohammed Naseer Khan

Shiva Sakath Reddy Rakesh

• The Russian Federation stretches across Eurasia from Eastern Europe to the Pacific coast. Even after the collapse of the Soviet Union, Russia remains the largest country in the world in terms of territory.

GDP:1.7 Trillion $ (6th)GDP growth:7%Inflation:11.9%

24% increase in Foreign TradeExchange Rate:1$=23.6 Ruble

Labor Force:71.68 Million (Agr:12%,Industry:23%,Services:65%

Unemployment Rate:8.5%

About Russia

Exports - commodities: petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures.

Russian commodity Trade exports:-

Russia commodity Trade imports:-

Russia jumps record 30 places in ‘Doing Business’ ranking

Russia is now ranked 62nd in the World Bank’s new 2014 Doing Business report, which measures the ease of doing business in 189 countries worldwide. The country climbed 30 positions from 92nd spot in 2013.

• Foreign Investment law -1991• First legal framework conducive to foreign investors• The basic tenet of the code was national treatment for foreign

investors.

• Law on Foreign investments in Russia 1999• Elaborate framework to protect the rights of investors.

• Grandfather Clause - which protects the investor from unfavorable changes in the legal and tax regulation for a period up to 7 years.

Legal Framework - FDI

FDI Inflow In Russia

3.5

7.9

12.5

16.7

2002 2003 2004 2005

Foreign Direct Investmentin Russia, USD billion

FDI Inflow In Russia – Sector-wise Breakup

FDI confidence index A.T.Kearney in 2005

ChinaIndia

United StatesUnited Kingdom

PolandRussia

BrazilAustraliaGermany

Hong KongHungary

Czech RepublicTurkeyFranceJapan

MexicoSpain

SingaporeItaly

ThailandCanada

Dubai/UAESouth KoreaCentral Asia

Romania

Maintained ranking

Moved down

Moved up

Foreign exchange controls

• The currency controls are imposed on the transaction of both export and import type (these include transaction of capital).

• There are restrictions regarding the amount of foreign currency which could be kept on the bank account of the residents.

• • Russian rouble is the only legal currency in the

territory of Russia.

Eastern European Group

Russia regional grouping

Russia future prospects

Thank you