If you’ve been following the news recently, you’ve certainly noticed that Russia is talked about a lot since it took over Crimea region during the Ukraine crisis. This led to the United States of America and the European Union to impose sanctions on Russia. These sanctions were designed to restrict the import and export of certain types of products and services, including a freeze to assets of individuals and companies held in Western countries.
However, the Ukraine crisis has now somewhat settled and today Russia is actively working along with Western and international partners to end another crisis, terrorism plaguing the middle-east region.
As a result, tensions have settled down and Russia is starting to come back as a full member of the global economy. And despite the sanctions Russia is still regarded as a viable investment according to a poll carried out by the consultancy firm AT Kearney.
Russia is still an import market and trading with the country has always brought some challenges and risks. Though, it has significantly made progress in improving the business and investment environment thanks to a number of regulatory reforms implementations.
However, there a still work ahead and many obstacles to be overcome. To help exporters maximise their chances of business success in Russia, Atradius the trade credit insurer has published a “Trade safely with Russia” guide.
The report offers a ten easy to follow principles to help businesses to mitigate risks when exporting to Russia.
The key principles are summarised below
- Agreements governed by the United Nations Convention on Contracts for the International Sale of Goods are rarely used and therefore it is advisable to choose a law your business feel comfortable with and that can be easily applied by arbitrators in case of a dispute
- Ensure you have the basic rights and pay special attention to the nitty-gritty of contracts, agreements and companies’ details
- Use simple and transparent supply arrangements and try to avoid the complex import structures via offshore entities
- it’s advisable to agree on the securities with the parties in advance to forestall non-payments
- Ensure that the competition laws of the country are complied with
- Comply with the sanctions legislation and observe tax and custom regimes and import approvals
- And the last but not least: be insured
Atradius will also be broadcasting a free webinar on the topic on 15 October at 15:00 (Central European Time).