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Report for investments in Russia

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  1. Environment component
    1. Potential weaknesses for doing business in Russia
    2. Advantages
  2. Computer usage
    1. Market attractiveness
    2. Weaknesses
    3. Russia's capacity for innovation
  3. Readiness component
    1. Supportive education
    2. Government passes on to the private sector
    3. A leading industry

Dear investors, This report will provide you with factual information on the importance of investing in the Telecommunications industry in Russia. Since 2006, the direct investments in Russia from external countries have increased a lot. It demonstrates that it is a strategic market in which the possibilities of development are significant. The total FDI in Russia represents 25% of the GDP. Thus, Russia stands first when compared to BRIC countries and Ukraine, regarding the number of foreign investments in the country per habitant. Currently, Russia is a strategic partner and if you want to be an active competitor on the market you may want to invest in Russia. A few points have to be highlighted regarding the main strengths of the market. Russia has a highly competitive mobile telephone industry, owing to a healthy competition between the country's main operators like MTS, VimpelCom and MegaFon. Huge amounts of money are being invested into the country's telecom sector, with operators looking to improve their services and networks.

[...] This means that for telecom, Russia did not want to invest in government use. Instead, it preferred to invest in the individual use of telecommunications as we shall see a little later. In other words, government usage is an axis to be developed in Russia. Moreover, we can underline that we are late on another point: the capacity for innovation. Although Russia is not the last on the latter point, it is unfortunately not well placed on innovation. Below, we realized a comparative chart to demonstrate you more easily the difference which we can have with the other countries: Source: The global information technology report 2008-2009 In spite of the fact that Russia is classified in the last ones, we cannot say that other BRICs countries are doing much better. [...]

[...] Time required to start a business The global Information technology report indicates us that it is faster to start a business in Russia than in China and India. It means that setting up a business in Russia can be done in no time at all, which shows that Russia benefits from a really good business friendly atmosphere. Number of procedures In Russia, we want to minimize the number of procedures but we also pay attention to the reduction of the risk of fraud, otherwise, businesses are trapped in the unregulated, informal economy, where they have less access to finance and hire fewer workers, and where workers lack the protection of labor law. [...]

[...] What can attract investors today in Russia is the level of expertise it has in technologies and its capacity for developing it. Over the past years, multinationals such as Hewlet Packard and Motorola have trusted Russia's R&D capacities for their operations. If these companies have invested in Russia, it is due to the country's commitment to high-quality math and science education. Russian universities graduate more engineers and computer scientists per capita than almost any other country BRIC countries. Indeed, when comparing Russia to the 3 other countries, Ukraine, India and China with The Global Competitiveness Report of 2008-2009 on the Availability of scientists and engineers and the quality of the educational system as well as on the quality of maths and science education, Russia stands significantly ahead with India. [...]

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