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37 Business in Russia

Business in Russia

Posted on April 23, 2007 by


People say doing business in Russia is cool – so many possibilities and unoccupied niches are still left on market. But.. do you want to see how police conducts searches in Russian companies? Here is the video. Business is easy but law should be respected?

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37 Responses to “Business in Russia”

  1. Borah a.k.a. Sarah Levi-Alkolupukki says:

    I don’t see anything wrong there.

    This firm is suspected in financial machination. So MVD (police) came to them. And they don’t open doors to let policemen do their job! Who should policemen do? They have to break the doors!

    Financial criminals like Hodorkovsky and Berezovsky have to be in prisons.

  2. Borah a.k.a. Sarah Levi-Alkolupukki says:

    Russia is the real land of opportunities! Not the USA and not the UK, but Russia! In USA only 6% of business start-ups are successful, while in Russia about 70% of business start-ups are successful!

    • Popka says:

      So long as you pay off the Russian Mafia, yes?

      Then again, I suppose it’s not much different to paying your taxes to the UK/USA government ;)

  3. Boris Abramov says:

    How else are you supposed to tackle corruption and mafia problems??

    You should see how they deal with these sort of problems in Colombia and Brazil LOL!!!

  4. Boris says:

    Looks like they forgot to bribe the police.

  5. Boris says:

    About the tax thing, it would be impossible for a business to survive in Russia if they legally paid the tax. Instead they try to evade them as much as possible. Business practices are further corrupted by widespread use of bribes. I won’t even get into what happened during privatization.

    Also some businesses are harassed by criminals\gangsters. For example, almost the only vacuum tube manufacturer in the world (in St. Petersburg) got harassed by criminals trying to buy the building to make a mall or some kind of useless shopping center. They even bought the local electrical utility and shut their power off, and tried putting dust into the vents to contaminate the cleanrooms inside. And the government did not care after they filed complaints. The company makes rare tubes which are not made anywhere else. It would be a shame if they turned it into *another* overpriced clothing store.

  6. Borah a.k.a. Sarah Levi-Alkolupukki says:

    Milk in Russia is made from milk powder? Oh, comon, you have never been in Russia!

    • Эрик says:

      Milk is from powder in Russia. And only buy the milk that comes in a bag, the boxed stuff has been sitting there for months and is treated with radiation so it doesn’t spoil

    • maxD says:

      yup.

      Due to the poor infrastructure it’s impossible to get fresh milk from the countryside to the cities, packaged and all that, without it getting bad. Most milk is from milk powder plus pasteurized [can last for years without getting bad].

      There you have it. For some other interesting background information go to http://www.globalrus.ru [russian only].

      A company which is paying tax and is now being harassed is Independent Media, publisher of Playboy, Cosmopolitan, Moscow Times etc. in Russia.
      At this moment they’re at the High Court after appealing several times against enormous tax assessments. And even now, according to their chairman, they’re told [ 'via via' ] that for the right money in the right place a ‘welcome’ verdict might come through. The High Court !!

      Anecdote : their chairman Derk Sauer [Dutch guy] once was fined a considerable amount of money because he was slightly overdue with his tax payments. He ordered a truck, filled it up to the rim with 1 ruble banknotes and send it to the tax department. Never problems from that department again !

      Income tax in cyprus and gibraltar is even lower. Income tax in Russia is 15% for residents and 35 % for non-residents.

      • Boris Abramov says:

        Yes…, something is very suspicious about him…

        I don’t think he ever did do business in russia.

        • maxD says:

          Here’s the link to the full story about the milk powder:

          http://www.point.ru/forecasts/2007/04/16/6352

          Russian only – sorry !

          The rublebanknote thing : I got mixed up there. Sorry !

        • Texas1 says:

          Being serious for a minute, I have heard that there is a shortage of real milk. It may not be true in Moscow, but I knew a russian girl from college that told me the exact same thing. Actually, her mother is a doctor in Russia and has seen babies in great need of calcium. I couldn’t understand everything that she told me. However, she said something to the extent that in the villages the women would lick white paint because they thought it contained calcium. It sounds strange, but in a rural area with unfortunate conditions and an uneducated population it could be true. Right? Anyway, I had no reason not to believe her. She also pointed out that while the paint on the wall didn’t contain calcium it did contain either lead or mercury. The whole situation just sounded really sad. I was told this about 3 years ago.

          • Bizen says:

            That’s amazing! A friend of mine in college knew someone whose *father* was a doctor in Albania where people licked walls and fences painted white because they thought it might contain milk. He said that it was a most unfortunate condition, particularly in the rural areas there. It’s so sad that there are so many rural uneducated populations licking walls around the world, isn’t it? Do you think maybe her mother and the father of my friend’s friend knew each other?

            I had a baby alligator when I was growing up in NYC.

      • Adrian says:

        I am looking for a reliabale company in Russia to Do business.

        Please advice if you know any. Tks
        Adrian

        • Adrian says:

          Hi I am Adrian,

          We are importers of Petroleum byproducts and exporters of natural rubber, looking for companies in Russia to work with in this regard. Please contact me on: bizintal@yahoo.com.

          Adrian from Sri Lanka

  7. ted says:

    Boris is gone!

  8. xyplex2 says:

    WHAT THE HELL KIND OF GLASS IS THAT?!

    WOW!

    At my work one swing and the whole window pane is down.

    That is some tough glass.

  9. Boris Jermy says:

    Were did you get this information from?

  10. adios says:

    Ельцин умер………………

  11. mrcann says:

    nicely written!

  12. Borah a.k.a. Sarah Levi-Alkolupukki says:

    Do you know what does the word “profit” mean? You can earn much more on your investments in Russia (more in 6-8 times), than on investments in the USA or UK.

    • maxD says:

      True. But risks are so much higher.

      Most foreigners are not aware of the fact that small neighborhood shops do not exist in large Russian cities, like a baker or a butcher or a shoemaker or a carpenter… everything comes from the factories where there is very little [if any] governmental control [so you can get away with all kinds of illegal stuff - bribes will solve the little problems if they arise].

      Like this example : Are you aware that the darker variant of the popular Baltic beer gets it’s dark color mostly because its filtered using asbestos filters ? A friend of mine worked in this factory and stopped drinking the stuff straight away when he found out. And look at this link, from BBC, explaining where the well-known yellow zombies are stemming from :

      http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/6434789.stm

      A medical disinfectant eating your liver away. Nice thought, next time you’re in the hospital. Those who know don’t bother. Most people do not know, of course.

      Consumers are seen as walking cash-registers by the factory owners. Short-term money making that’s what they want, and when they have the cash, off to Skt. Moritz or London. Where things are save.

      Your choices as a consumer are limited to the big hypermarkets which in fact have a monopoly. If they don’t sell it, you can’t get it. Prices are ridiculously high too because most stuff is imported and everybody involved has to make good money on it [read : bribes]. Why is a bottle of simple S-African wine which costs 3 euro in W-Europe 30 euro in Moscow ? Indeed.
      If you decide to start your own small business and step in the gap between virtually nothing and the big hypermarket you can make a very good income. In theory, that is. Lets assume you managed to get all the permits etc. and are able to get started. Pretty soon you’ll have some bullies knocking on your door, making you an offer you can’t refuse.. And no-one will come to your aid.

      Business in Russia – could be great, it is not. And that’s why it will take such a long time before things change for the better in Russia. Sad.

  13. Borah a.k.a. Sarah Levi-Alkolupukki says:

    official exchange rate doesn’t matter at all in the question of GDP. Much important is purchase parity rate.

  14. Alex says:

    LOL

    Ok fair enough you people have no clue about anything for the majority of the time, but this is crazy…

    I live in the UK and pay an income tax of 40% thats right not 14…but 40 , because I make over a certain amount… If I did the same in russia and got payed the same (in reality I would make more) I would only pay 13% on my income tax…

    so seriously stop this tax bollocks, you have no clue.

  15. 1l1 says:

    I know this video is kinda old, but next time just call for MCHS. Those guys will slice, cut off and open any door and any window u need to pass through :D

  16. Al says:

    I have been to Russia many times and take my word for it, milk there does not come from powder. You can get powered milk but the stuff in the strong plastic bags is not from powder. When Igo there I find I cannot drink it in large amounts at first because it is much richer than what I drink here in America. You people need to get your facts straight. Most of the food produced in Russia is of far better quality than I have access too in America.

    As for the video, you’d think they would open the door for the investigators. It’ll be open one way or another won’t it?

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