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Country Commercial Guides for FY 2000: Russia Report prepared by U.S. Embassy Moscow, Released July, 1999 Note*

IX. BUSINESS TRAVEL

Business Culture and Customs

One challenging aspect of doing business here is bridging the substantial cultural gulf between Russians and Americans. Russian business culture is different, and visitors should not assume that Russians with whom they are dealing have adopted or understood American business practice. For example:

-Russian decision-making is still highly centralized in most organizations.

-While Americans prefer to base their business relationships on legally-binding contracts, many Russians still doubt the value of their business laws and courts. In contrast, many Russian business dealings are based on strong personal relationships, with contracts considered merely a formality.

-Many Russians want to keep wealth and business deals secret.

-Westerners may think "win-win," but Russians - "win-lose."

Travel Advisories

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

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

Visas

All Americans traveling to or transiting through Russia by any means of transportation must have a passport and visa. Travelers who arrive without a passport or entry visa may be subject to fines, days of processing requirements imposed by Russian officials, and/or deportation by route of entry at the traveler's expense.

Visas, other than for transit purposes, are issued based on support from a Russian individual or organization - the sponsor. It is very important to know who your sponsor is and how he or she can be 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 tour company or hotel in advance for information on visa sponsorship.

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

Americans can obtain visas from the Consular Section of the Russian Embassy or from one of three 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

Russian Consulate - Seattle
Tel: (216) 728-1910; Fax: (216) 728-1817

Russian Holidays

January 1     New Year's Day
January 7     Christmas (Orthodox)
March 8     International Women's Day
May 1     International Labor Day
May 2     Spring Day
May 9     Victory Day
June 12     Independence Day
November 7     Revolution Day
December 12     Constitution Day

When holidays fall on weekends, Russian authorities generally announce during the week prior to the holiday whether it will be celebrated on the preceding Friday or the following Monday.

Transportation

Air travel within Russia is occasionally erratic but generally on-schedule, and the overall quality of service continues to improve. Some Russian-based that are certified to operate internationally, airlines such as Aeroflot and Transaero, usually meet higher standards than domestic-only carriers. Moscow has four major airports which ring the city. Most international flights enter Moscow through Sheremetyevo-2. Travelers may 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 a half 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 to get around Russia is by train. Between cities as close as St. Petersburg and Moscow, travelers can generally ride overnight trains, although unaccompanied passengers are reminded to keep an eye on their valuables and lock their doors at night (if in a sleeping compartment), as some incidents of pickpocketing have been reported.

Inclement weather, erratic maintenance and a culture of aggressive driving make road conditions throughout Russia highly variable. Drivers and pedestrians should exercise extreme caution to avoid accidents, which are common. Traffic police sometimes stop motorists to retrieve cash "fines," and bandits occasionally prey on travelers, especially in isolated areas.

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

Personal Security

Recent police statistics for Moscow report an overall decline in crime, though drug-related crimes, murders, and kidnappings have increased, and street crime, sometimes violent, 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 the adjacent republics of Dagestan and Ingushetia).

In Moscow, the most prevalent crime is theft, primarily from hotel rooms and train compartments, and by pickpockets and bands of street criminals. While there is little overt anti-American sentiment in Russia, Westerners are often targeted because of their perceived wealth, and street criminals operate in areas frequented by tourists and business travelers. Most foreigners are easily identifiable on Russian streets. In April 1998, a series of violent attacks in Moscow by gangs of "skinheads" against persons of African and Asian origin led to issuance of a travel warning to American citizens cautioning them of the possibility of such attacks.

To reduce the risk of personal crime, U.S. businesspeople should be alert to their surroundings and guard belongings in hotels, restaurants and other high-density tourist areas.

Do not assume that you can blend in on the street. Do not leave valuables in hotel rooms -- keep your passport and visa with you at all times, and retain copies in separate locations in case of loss or theft of the originals.

Be alert to theft and assault in metro stations, on metro trains, and on inter-city trains (when traveling on overnight trains, secure the door to your compartment with some sort of jamming device).

While many Muscovites flag private "hacker" vehicles for rides, this is a riskier form of transport that is better avoided, and travelers are advised to use only marked taxis.

Finally, American business people who utilize local services for banking, security and medical treatment should limit the information provided to the minimum required, as reports have been received indicating that some individuals working in these sectors have passed confidential credit/financial, banking and medical information to organized crime gangs who use it to make extortion threats against foreigners.

Language

Though better-educated Russians in major cities often speak good English, you should be prepared to operate in Russian. U.S. businesses should hire a reputable interpreter when conducting important negotiations. Not having product literature in Russian will put your company at a big disadvantage relative to your European and Asian competitors, not to mention local firms.

Hotels

While world-class tourist and business facilities exist in Moscow and some other large cities, they are undeveloped in most of Russia, and many goods and services taken for granted in other countries are not yet available.

Moscow, St. Petersburg, Novgorod, Nizhnevartovsk, Perm, Samara, Yekaterinburg, Perm, Sochi, Yuzhno Sakhalinsk and Vladivostok, among other cities, have Western-style hotels, though often priced at a premium compared with other major cities of the world.

Outside major cities, traditional Russian hotels often offer fairly modest accomodations. Some regional hotels raise rates for foreign guests. It is possible to find well- appointed hotels in some small towns; it is equally possible to find yourself temporarily without water or electricity when visiting other regions of Russia.

In regional cities such as Tomsk, thrifty business travelers who are willing to forego luxury can find hotel room bargains for as little as 204 rubles per night.

Clothing

Winters can be extremely cold in Russia, with temperatures in the minus-20 Fahrenheit range not unusual. Winter clothes may be needed as early as October or as late as April. Water-resistant footwear is advised, as uneven pavement allows large puddles to form quickly. Rubber-soled footwear will keep your feet warmer than leather-soled pairs if you are walking any distance in winter. Summers, while brief, can be surprisingly hot, and travelers should be prepared for the fact that air conditioning is still rare outside big-city hotels.

Healthcare

As in many countries of the world, travelers should drink only boiled or bottled water. Medical care is usually far below Western standards, with frequent shortages of basic medical supplies. Many resident Americans travel to the West for their medical needs, but such travel can be very expensive if undertaken under emergency conditions.

The cost of a medical evacuation from some Russian regions may exceed $50,000. Thus, travelers should check their insurance coverage and consider buying supplemental coverage for medical evacuation. Elderly travelers and those with existing health problems may be at particular risk.

Further information on health matters can be obtained from the Centers for Disease Control and Prevention's international traveler's hotline at (404) 332-4559, or via the CDC home page on the Internet at www.cdc.gov.

Access to the few quality facilities in major cities usually requires cash payment at Western rates upon admission, although the number of such facilities in Moscow and St. Petersburg has grown significantly in recent years. The U.S. Embassy and Consulates maintain lists of such facilities and of English speaking doctors.

Food

Restaurants in Moscow, and to a somewhat lesser extent in St. Petersburg, are more expensive than in all but the largest American cities. Most Westerners find Russian cuisine suits their palate, and come to savor traditional dishes; those in search of food from other cultures should concentrate on the major cities. In smaller communities, visitors often must accept the food available at hotels.

Money

The ruble is the only legal tender. Many prices remain marked in "old" (pre-1998) ruble prices as well as in "new" rubles (the ruble was redenominated, with new notes issued, as of January 1998). It is illegal to pay for goods and services in U.S. dollars or other foreign currency. Old, worn, or marked dollar bills are often not accepted at banks and exchanges, even though this is technically a violation of currency laws.

Travelers' checks and credit cards are not yet widely accepted except in major cities, and only rarely at stores catering mainly to Russians. Travelers to regional cities or towns are advised to carry enough cash to cover foreseeable expenses. Major hotels or the American Express offices in Moscow and St. Petersburg may be able to suggest locations for cashing travelers checks or obtaining cash advances on credit cards. Automatic Teller Machines are now common in downtown Moscow, though many have not returned to service following the freeze-up of the payment system in 1998. Western Union has agents in Moscow, St. Petersburg, and some other large cities which disburse money wired from the United States.

Customs Regulations

Russian customs laws and regulations are complicated and highly discretionary. A 30-percent duty may be required to export any personal item(s) worth over $10,000, although additional charges may be required depending on the type of item to be exported. Export duties may be imposed on any items which are determined by customs officials at the point of departure to be of commercial use.

Items which may appear to have historical or cultural value -- icons, art, rugs, antiques, etc. -- may be taken out of Russia only with prior written approval of the Ministry of 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 in limited amounts only.

Computers, electronic notebooks and related hardware must be presented to customs officials at Moscow's Sheremetyevo airport for scanning at least two hours prior to departure.

Failure to follow the customs regulations may result in penalties ranging from confiscation of the property in question and/or the imposition of fines to arrest and possible imprisonment.

Arriving travelers must present a customs declaration upon arrival in which the amount of currency brought into the country is declared and items of value are listed. Travelers should ensure that this declaration is stamped by customs officials at the point of entry in order to prevent possible difficulties in taking currency and valuables back out.

Drug Penalties

U.S. citizens are subject to the laws of the country in which they are traveling. Penalties for possession, use, or trafficking in illegal drugs are strict and convicted offenders can expect jail sentences and fines.

Registration and U.S. Embassy/Consular Locations

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

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

Business visitors to Russia seeking appointments with the American Embassy in Moscow or Consulates-General in St. Petersburg, Yekaterinburg or Vladivostok should contact the Commercial Sections at these posts in advance.

U.S. and Foreign Commercial Service, Moscow Edgar Fulton, Minister Counselor for Commercial Affairs Bolshaya Molchanovka 23/28, Moscow 121069
Tel: (095) 737-5030; Fax: (095) 737-5033
E-mail: moscow.office.box@mail.doc.gov

U.S. and Foreign Commercial Service, St. Petersburg
Michael Richardson, Principal Commercial Officer
Stuart Schaag, Commercial Officer
25, Nevsky prospekt., St. Petersburg, Russia 191186
Tel: (812) 326-2560; Fax: (812) 326-2561/62

U.S. and Foreign Commercial Service, Vladivostok
Richard Steffens, Principal Commercial Officer
32 Pushkin Street, Vladivostok, Russia 690000
Satellite Tel/fax: (509) 851-1211
Tel: (4232) 300-093; Fax: (4232) 300-092
e-mail: csvlad@online.ru

U.S. and Foreign Commercial Service, Yekaterinburg
Alexander Deyanov, Commercial Assistant
15A Gogol Street, Third Floor
Yekaterinburg, Russia
Tel: (3432) 564-619; Fax: (3432) 564-515
Tel: (3432) 564-736 (Foreign Commercial Service)