Development of e-commerce infrastructure presents investment opportunities for U.S. firms, however existing regulation and business practices suggest that a reliable Russian partner is a must. Market Overview Legal regulation of electronic commerce in Russia is still at the development stage. Although draft laws are under discussion, the legislature is delaying for the time being to avoid stifling the industry. From 1998 to 1999, the number of Russian companies that use the Internet for business purposes almost doubled. A good web site is considered a must for a reliable company, even though many are not updated on a regular basis.
Some companies go beyond web marketing and invest in online commerce.
Russians have ambivalent attitudes about new technologies and most have no confidence in virtual transactions, something Western consumers have been accustomed to through catalog purchases. Nevertheless, some B2C projects are expanding. As of summer 2000, Russia has about 500 online stores. Most retailers require on-delivery cash or credit card payment. The above-mentioned projects are very aggressive in brand development and have catchy names for the 2.5 million Russian Internet users.