The new government is intending to focus on implementing reforms that were started before the election and that protect property rights, limit bureaucracy and fight corruption. If these go though, investors will move into action.

So far the ones earning good money in Russia have been the world's largest corporations, as well as adventurous investors and entrepreneurial consultants. It’s worth noting that the Western businessmen’s perception of Moscow and the regions is very different; as a rule, foreigners find working in the capital safer and easier. One of the things perceived most negatively is legal chaos in the tax area and what appears to be an inconsistent interpretation of legislation by tax inspectors. Sometimes, when faced with another unpredictable tax audit, Western companies even prefer to close their branches and representative offices in Russia to avoid risk to their reputation should the inspectors come up with a bizarre and unforeseen interpretation of the law.

UK Investors Eye Russian Opportunities

UK corporate investors and representatives of private equity funds discussed possibilities for foreign investment in Russian economy at a meeting held at the residence of the Lord Mayor of London.

The event was attended by investors with more than a trillion pounds worth of assets under their management, which demonstrated the level of interest to Russian projects. It is known that the UK capital considers developing markets are the most promising areas of investment.

Over 600 British companies are operating Russia today.

As was noted by representatives of the Agency for UK Trade and Investment (UKTI) and the Russian Fund for private equity investments, Russia is currently the most favoured location British investors due to the sagging value of assets and the relatively low rate of inflation.

Emerging markets can be a source of excellent risk premium, and investors are expected to look at Russia with more confidence after the new government has been introduced.