**TRICKS OF THE TRADE:**

**SECURING OFFICE SPACE ANDSERVICES IN YEKATERINBURG**

 

by YelenaZheberlayeva

 

Yekaterinburg, witha population of 1.5 million, is the capital of Sverdlovsk Oblast, and serves asthe de facto capital of the entire Urals region. Both Sverdlovsk Oblast andYekaterinburg city officials have encouraged foreign investment and created areceptive business climate. 

 

**Office Rental**

Businesses seeking to set up in Yekaterinburg may choose to rent officespace from another establishment (sublet), to rent an office in a businesscenter, or to purchase office space. Several hotels also provide office spaceon their premises. Modern facilities close to the city center command highprices. The price of a square meter of office space in the city center cityvaries from $7‑20 for medium-quality offices. The cost may also depend on thelandlord, who can sometimes assist in establishing a relationship with localauthorities and even in finding new customers and business partners. 

 

Because there is currently a surplus of available office space, allprices should be negotiated. However, it is difficult to find offices ready foroccupancy in Yekaterinburg that meet Western requirements. Older buildingsusually require significant renovation, and the style of offices in newbuildings can vary greatly from U.S. standards. Both the **World Trade Center**and the **Business Center** cater to Western firms. 

 

The World Trade Center opened in August 1998. It is the most modernbusiness center in the city. Its facilities include conference halls, officeequipment, fax‑modems, restaurants, parking space, and security services. Theprice is $500‑800 per square meter annually. The price includes membership inthe World Trade Center (WTC), which provides access to the WTC database andsome discounts for services. 

 

The Business Center on Gogol Street, opened in 1992, has onlyunfurnished offices available. The complex does not provide conference or otherbusiness services. Telephone lines may be installed in individual offices on request.Some official foreign representation offices are located in the building.Commercial leasing begins at $300 per square meter a year.

 

Educational, science, and research institutes and factories can provideinexpensive office space. These facilities often require considerableadditional investment to bring the offices up to Western standards.

 

It is also possible to purchase office space, which can be aninexpensive option in the long run. Firms interested in purchasing officesshould contact the City Property Committee, which can provide a current listingof available properties. 

 

**Telecommunications**

A written request must be submitted to the head of the City TelephoneExchange to install telephone equipment in Yekaterinburg. The cost of telephoneinstallation changes frequently. Currently, it is $200‑400. Telephone lines areconnected within a month after payment. 

 

The major cellular service providers in Yekaterinburg, all U.S.-Russianjoint ventures, are **Uralwestcom**, **Beeline**, and **Uraltel**.Uralwestcom offers the widest roaming within Russia and abroad. Beelineprovides roaming within 90 cities of the Nisand 70 foreign countries. Cellular services run $0.35‑0.75 per minute. 

 

**Internet and Postal Services**

Four firmsC**GlobalOne**, **Uralrelcom**, **EMTC**(City Telephone Exchange), and **Yekaterinburg Telegraph**Cprovide Internet access. Service costs varygreatly and are subject to frequent changes. Currently, Uralrelcom charges$1.08 per hour for Internet service, with no additional monthly fee. GlobalOne, a U.S.‑Russian joint venture, provides Internet services for $1.80/hour,and a $10 monthly fee. 

 

The local mail system is reliable, but the security of proprietaryinformation cannot be guaranteed. **DHL**, **Federal Express**, and **UPS**operate in Yekaterinburg. Delivery time is about 3‑5 days to the UnitedStates, and a bit longer to mail documents from the United States toYekaterinburg. For shipments other than documents, special arrangements shouldbe made to expedite customs clearance.

 

**Employment Agencies**

The financial crisis has had a great impact on Russia=s labor market. Many employees who worked forforeign companies, banks, and other financial institutions have been laid off.The labor market now includes large numbers of highly qualified, relatively low‑costprofessionals. 

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Local recruiting companies such as **Ankor**, **Triza**, and **UralskoyeKadrovoye Agentstvo** can help to identify appropriate personnel. They alsosurvey the labor market and provide professional consulting services. Salarieshave declined 30‑50 percent since the August 1998 financial crisis.

 

*For more information on opening an office in Yekaterinburg, includingthe legal issues involved and a contact list, visit **BISNIS Online** atwww.bisnis.doc.gov/bisnis/country/9906ur.htm.*

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*Yelena Zheberlayeva represents **BISNIS**and is colocated with theU.S. Consulate General in Yekaterinburg.*