**COUNTRY COMMERCIAL GUIDE--RUSSIANFEDERATION**

**FISCAL YEAR  2000**

 

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**IX.  BUSINESS TRAVEL**

 

**Business Culture and Customs**

 

Onechallenging aspect of doing business here is bridging the substantial culturalgulf between Russians and Americans. Russian business culture is different, and visitors should not assumethat Russians with whom they are dealing have adopted or understood Americanbusiness practice.  For example:

 

-Russiandecision-making is still highly centralized in most organizations.

 

-WhileAmericans prefer to base their business relationships on legally-bindingcontracts, many Russians still doubt the value of their business laws andcourts.  In contrast, many Russianbusiness dealings are based on strong personal relationships, with contractsconsidered merely a formality.

 

-ManyRussians want to keep wealth and business deals secret.  

 

-Westernersmay think "win-win," but Russians -- "win-lose."

 

**Travel Advisories**

 

The StateDepartment issues travel advisories when local unrest warrants.  Travel to Chechnya and surroundingareas is extremely dangerous due to continued political tension in thearea.  Some U.S. citizens have beenkilled or have disappeared in Chechnya or adjacent Dagestan; and local gangs continueto seize hostages on occasion. Anyone considering travel to such areas is strongly urged to obtain anup-to-date travel advisory from the U.S. Department of State (Tel 202-647-4000or the travel advisory link from website www.state.gov).  Public gatherings and demonstrationsoccur occasionally in major cities of Russia.  Although such demonstrations are usually peaceful, travelersare urged to exercise caution in areas where large groups are gathered.  Anti-American demonstrations during theearly days of the NATO bombing campaign in Yugoslavia briefly affected Embassyservices.  

 

Travelers mayneed to cross great distances, especially in Siberia and the Far East, toobtain services from Russian Government organizations, the U.S. Embassy inMoscow or U.S. consulates in St. Petersburg, Yekaterinburg or Vladivostok. 

 

**Visas**

 

All Americanstraveling to or transiting through Russia by any means of transportation musthave a passport and visa. Travelers who arrive without a passport or entry visa may be subject tofines, days of processing requirements imposed by Russian officials, and/ordeportation by route of entry at the traveler's expense.

 

Visas, otherthan for transit purposes, are issued based on support from a Russianindividual or organization - the sponsor. It is very important to know who your sponsor is and how he or she canbe contacted, as Russian law requires the sponsor to apply for replacement,extension or changes to your visa. The U.S. Embassy and Consulates cannot act as a sponsor.  Tourists should contact their tourcompany or hotel in advance for information on visa sponsorship.

 

Allforeigners must have an exit visa to depart.  For short stays, the exit visa is issued along with theentry visa.  For longer stays, theexit visa must be obtained by the sponsor after the traveler's arrival.  All travelers who spend more than threedays in Russia must register their visa through their hotel or sponsor.  Visitors who overstay their visas,  even for one day, or who neglect toregister their visa, may be temporarily barred from leaving.  Errors in dates or other information onthe visa can and do occur, and it is helpful to verify correctness of thisinformation before departing the United States.  We recommend that travelers have all points of entry and allitinerary points in Russia listed on their visa, in order to avoid anydifficulties in registering their visas or any delays in travel. (Note: Whileit is no longer legally required for all itinerary points to be listed, not alllocal authorities seem aware of the change).  Random document checks by police on foreigners areinfrequent but do occur, so U.S. citizens should carry their original orphotocopies of the passports and registered visas.  Failure to show proper documentation can lead to detentionand/or fines.  

 

Americans canobtain visas from the Consular Section of the Russian Embassy or from one ofthree other Russian Consulates in the United States, as follow:

 

**Russian Consulate – Washington, D.C.**

Tel:(202) 939-8907, 939-8918;  Fax:(202) 298-5735, 986-1207

 

**Russian Consulate - New York**

Tel:(212) 348-0955;  Fax:(212) 831-9162

 

**Russian Consulate - San Francisco**

Tel:(415) 928-6878;  Fax:(415) 929-0306

 

**RussianConsulate – Seattle**

Tel: (216) 728-1910; Fax: (216) 728-1817

 

**Russian Holidays**

 

January 1     --NewYear's Day

January 7      --Christmas (Orthodox)

March 8       --International Women'sDay

May 1          --International LaborDay

May 2          --Spring Day

May 9          --Victory Day

June 12        --IndependenceDay

November 7     --Revolution Day

December 12   --Constitution Day

 

When holidaysfall on weekends, Russian authorities generally announce during the week priorto the holiday whether it will be celebrated on the preceding Friday or thefollowing Monday.  

 

**Transportation**

 

Air travelwithin Russia is occasionally erratic but generally on-schedule, and theoverall quality of service continues to improve.  Some Russian-based that are certified to operateinternationally, airlines such as Aeroflot and Transaero, usually meet higherstandards than domestic-only carriers. Moscow has four major airports which ring the city.  Most international flights enter Moscowthrough Sheremetyevo-2.  Travelersmay continue to other Russian cities from any of the other three airports(Sheremeyevo-1, Vnukovo or Domodyedovo). Travel time to the departure airport can be as much as an hour and ahalf from Sheremetyevo-2, and ample time must be allowed for passport control,customs clearance and baggage retrieval. St. Petersburg’s airport has two terminals: Pulkovo-1 (domestic flights)and Pulkovo-2 (international flights). 

 

A good way toget around Russia is by train. Between cities as close as St. Petersburg and Moscow, travelers cangenerally ride overnight trains, although unaccompanied passengers are remindedto keep an eye on their valuables and lock their doors at night (if in asleeping compartment), as some incidents of pickpocketing have beenreported.  Inclement weather,erratic maintenance and a culture of aggressive driving make road conditionsthroughout Russia highly variable. Drivers and pedestrians should exercise extreme caution to avoidaccidents, which are common. Traffic police sometimes stop motorists to retrieve cash"fines," and bandits occasionally prey on travelers, especially inisolated areas.

 

In Moscow andSt. Petersburg, the metro (subway) is an efficient and inexpensive, if crowded,means of transport.  Signs are inRussian, so it is helpful at least to learn the Cyrillic alphabet before youcome.  Marked taxis areincreasingly present in Moscow, but not other cities.  Short-term business travelers may wish to consider renting acar and driver for extensive excursions, or hire taxis through their hotels forshorter jaunts.

 

**Personal Security**

 

Recent policestatistics for Moscow report an overall decline in crime, though drug-relatedcrimes, murders, and kidnappings have increased, and street crime, sometimesviolent, remains a continuing problem. The crime rate in Moscow is still below that of many major U.S. cities,and the rate is generally much lower in regions of Russia outside major cities(however, terrorist activity is a threat in and around Chechnya, including theadjacent republics of Dagestan and Ingushetia).

 

In Moscow,the most prevalent crime is theft, primarily from hotel rooms and traincompartments, and by pickpockets and bands of street criminals.  While there is little overtanti-American sentiment in Russia, Westerners are often targeted because oftheir perceived wealth, and street criminals operate in areas frequented bytourists and business travelers. Most foreigners are easily identifiable on Russian streets.  In April 1998, a series of violentattacks in Moscow by gangs of “skinheads” against persons of African and Asianorigin led to issuance of a travel warning to American citizens cautioning themof the possibility of such attacks.  

 

To reduce therisk of personal crime, U.S. businesspeople should be alert to theirsurroundings and guard belongings in hotels, restaurants and other high-densitytourist areas.  Do not assume thatyou can blend in on the street.  Donot leave valuables in hotel rooms -- keep your passport and visa with you atall times, and retain copies in separate locations in case of loss or theft ofthe originals.  Be alert to theftand assault in metro stations, on metro trains, and on inter-city trains (whentraveling on overnight trains, secure the door to your compartment with somesort of jamming device).  Whilemany Muscovites flag private “hacker” vehicles for rides, this is a riskier formof transport that is better avoided, and travelers are advised to use onlymarked taxis.  Finally, Americanbusiness people who utilize local services for banking, security and medicaltreatment should limit the information provided to the minimum required, asreports have been received indicating that some individuals working in thesesectors have passed confidential credit/financial, banking and medicalinformation to organized crime gangs who use it to make extortion threatsagainst foreigners.  

 

**Language**

 

Thoughbetter-educated Russians in major cities often speak good English, you shouldbe prepared to operate in Russian. U.S. businesses should hire a reputable interpreter when conductingimportant negotiations.  Not havingproduct literature in Russian will put your company at a big disadvantagerelative to your European and Asian competitors, not to mention local firms.

 

**Hotels**

 

Whileworld-class tourist and business facilities exist in Moscow and some otherlarge cities, they are undeveloped in most of Russia, and many goods andservices taken for granted in other countries are not yet available.  Moscow, St. Petersburg, Novgorod,Nizhnevartovsk, Perm, Samara, Yekaterinburg, Perm, Sochi, Yuzhno Sakhalinsk andVladivostok, among other cities, have Western-style hotels, though often pricedat a premium compared with other major cities of the world.  Outside major cities, traditionalRussian hotels often offer fairly modest accomodations.  Some regional hotels raise rates forforeign guests.  It is possible tofind well- appointed hotels in some small towns; it is equally possible to findyourself temporarily without water or electricity when visiting other regionsof Russia.  In regional cities suchas Tomsk, thrifty business travelers who are willing to forego  luxury can find hotel room bargains foras little as 204 rubles per night.

 

**Clothing**

 

Winters canbe extremely cold in Russia, with temperatures in the minus-20 Fahrenheit rangenot unusual.  Winter clothes may beneeded as early as October or as late as April.  Water-resistant footwear is advised, as uneven pavementallows large puddles to form quickly. Rubber-soled footwear will keep your feet warmer than leather-soledpairs if you are walking any distance in winter.  Summers, while brief, can be surprisingly hot, and travelersshould be prepared for the fact that air conditioning is still rare outsidebig-city hotels.

 

**Healthcare**

 

As in manycountries of the world, travelers should drink only boiled or bottledwater.  Medical care is usually farbelow Western standards, with frequent shortages of basic medicalsupplies.  Many resident Americanstravel to the West for their medical needs, but such travel can be veryexpensive if undertaken under emergency conditions.  The cost of a medical evacuation from some Russian regionsmay exceed $50,000.  Thus,travelers should check their insurance coverage and consider buyingsupplemental coverage for medical evacuation.  Elderly travelers and those with existing health problemsmay be at particular risk.  Furtherinformation on health matters can be obtained from the Centers for DiseaseControl and Prevention's international traveler's hotline at (404) 332-4559, orvia the CDC home page on the Internet at www.cdc.gov.   Access to the few quality facilities in major citiesusually requires cash payment at Western rates upon admission, although thenumber of such facilities in Moscow and St. Petersburg has grown significantlyin recent years.  The U.S. Embassyand Consulates maintain lists of such facilities and of English speakingdoctors.

 

**Food**

 

Restaurantsin Moscow, and to a somewhat lesser extent in St. Petersburg, are moreexpensive than in all but the largest American cities.  Most Westerners find Russian cuisinesuits their palate, and come to savor traditional dishes; those in search offood from other cultures should concentrate on the major cities.  In smaller communities, visitors oftenmust accept the food available at hotels.

 

**Money**

 

The ruble isthe only legal tender.  Many pricesremain marked in “old” (pre-1998) ruble prices as well as in “new” rubles (theruble was redenominated, with new notes issued, as of January 1998).  It is illegal to pay for goods andservices in U.S. dollars or other foreign currency.  Old, worn, or marked dollar bills are often not accepted atbanks and exchanges, even though this is technically a violation of currencylaws.  

 

Travelers’checks and credit cards are not yet widely accepted except in major cities, andonly rarely at stores catering mainly to Russians.  Travelers to regional cities or towns are advised to carryenough cash to cover foreseeable expenses.  Major hotels or the American Express offices in Moscow andSt. Petersburg may be able to suggest locations for cashing travelers checks orobtaining cash advances on credit cards. Automatic Teller Machines are now common in downtown Moscow, though manyhave not returned to service following the freeze-up of the payment system in1998.  Western Union has agents inMoscow, St. Petersburg, and some other large cities which disburse money wiredfrom the United States.

 

**Customs Regulations**

 

Russiancustoms laws and regulations are complicated and highly discretionary.  A 30-percent duty may be required toexport any personal item(s) worth over $10,000, although additional charges maybe required depending on the type of item to be exported.  Export duties may be imposed on anyitems which are determined by customs officials at the point of departure to beof commercial use.  Items which mayappear to have historical or cultural value -- icons, art, rugs, antiques, etc.-- may be taken out of Russia only with prior written approval of the Ministryof Culture and payment of 100 percent duty.  Certain items, such as caviar, medications, jewelry,precious/semiprecious stones or metals, and fuel may be exported duty-free inlimited amounts only.  Computers,electronic notebooks and related hardware must be presented to customsofficials at Moscow's Sheremetyevo airport for scanning at least two hoursprior to departure.  Failure tofollow the customs regulations may result in penalties ranging fromconfiscation of the property in question and/or the imposition of fines toarrest and possible imprisonment.

 

Arrivingtravelers must present a customs declaration upon arrival in which the amountof currency brought into the country is declared and items of value arelisted.  Travelers should ensurethat this declaration is stamped by customs officials at the point of entry inorder to prevent possible difficulties in taking currency and valuables backout.

 

**Drug Penalties**

 

U.S. citizensare subject to the laws of the country in which they are traveling.  Penalties for possession, use, ortrafficking in illegal drugs are strict and convicted offenders can expect jailsentences and fines.  

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**Registration and U.S. Embassy/ConsularLocations**

 

All Americanswho reside in Russia for three months or longer are encouraged to register atthe U.S. Embassy or at one of the U.S. Consulates.  Those staying for shorter periods may also register andinquire about updated travel and security information.  Registration facilitates replacement ofa lost or stolen passport as well as contact in case of emergency. 

 

U.S. Businesstravelers are encouraged to obtain a copy of the publication “Key Officers ofForeign Service Posts: Guide for Business Representatives,” sold by theSuperintendent of Documents, U.S. Government Printing Office, Washington, D.C.20402, Tel: (202) 512-1800, fax (202) 512-2250.  

 

Businessvisitors to Russia seeking appointments with the American Embassy in Moscow orConsulates-General in St. Petersburg, Yekaterinburg or Vladivostok shouldcontact the Commercial Sections at these posts in advance.     

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**U.S. and Foreign Commercial Service,Moscow**

Edgar Fulton,Minister Counselor for Commercial Affairs

BolshayaMolchanovka 23/28, Moscow 121069

Tel: (095)737-5030;  Fax: (095) 737-5033

E-mail:  [email protected]

 

**U.S. and Foreign Commercial Service,St. Petersburg**

MichaelRichardson, Principal Commercial Officer

StuartSchaag, Commercial Officer

25, Nevskyprospekt., St. Petersburg, Russia 191186

Tel: (812)326-2560; Fax: (812) 326-2561/62

 

**U.S. and Foreign Commercial Service,Vladivostok**

RichardSteffens, Principal Commercial Officer

32 PushkinStreet, Vladivostok, Russia 690000

SatelliteTel/fax: (509) 851-1211

Tel: (4232)300-093; Fax: (4232) 300-092

e-mail:[email protected]

 

**U.S. and Foreign Commercial Service,Yekaterinburg**

AlexanderDeyanov, Commercial Assistant

15A GogolStreet, Third Floor

Yekaterinburg,Russia

Tel: (3432)564-619; Fax: (3432) 564-515

Tel: (3432)564-736 (Foreign Commercial Service)

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