General Review

Since Russia began to emerge from a socialist system, it has on the whole been perceived to be a less immediately attractive investment option when compared to the other East European economies. Quite apart from the obvious deterrent of political instability, there have been other difficulties to face: an inadequate legal framework, alien business culture and poor communications infrastructure are often quoted.

In recent months, however, there have been some more positive signs that Russia can mature into a full market economy which deserves early attention from foreign investors. The currency has recently been stable and inflation rates are falling, membership of the World Trade Organisation is expected to be approved soon, and the legislature is beginning to address some of the legal inadequacies - anti-monopoly laws have been passed and laws strengthening property and investor protection rights are anticipated.