Eastern and Southern Europe dominate the new world pay map, with Russia’s senior managers third in the pay stakes, enjoying salary buying power equivalent to €77,400, and Poland’s senior managers sixth, with salary buying power equivalent to €76,300 when tax and cost of living are taken into consideration. Click HERE for full article.

EU - Russia visa agreement will be in force from January 1, 2007

Moscow, May 23 (RIA Novosti) - Russia wants visa facilitation and readmission agreements due to be signed this week with the European Union to come into force from January 1 next year, a presidential aide said Tuesday.  Sergei Yastrzhembsky, President Vladimir Putin's pointman on relations with the EU, said: "We hope that by the end of this year the agreements will be ratified, and that our European partners will also ratify them. From January 1, 2007, we want the agreements to be in force." .....›

British monument to Russian glory

MOSCOW. (RIA Novosti political commentator Alexander Yurov) - Lendalfoot is a tiny village in Western Scotland off the coast of the Irish Sea. Few people in Russia have heard of it. But a monument to the legendary Russian cruiser Varyag was inaugurated there on July 30, the day of the Russian Navy. The cruiser was sold for scrap after the October revolution. But she was not destined to disappear forever. When the Varyag was being towed off the Scottish coast in 1920, she ran aground, and in 1925 sank for good in the Irish Sea less than half a mile from Lendalfoot (Ayrshire). As I am a former Russian naval officer it was very interesting news for me to hear. I think some British and Russian people will be interested to read that as well.  1.....› 2.....›

CEOs with Military Experience Outperform S&P 500 Index                             

Study from Korn/Ferry International Examines Link Between Military Experience and CEOs -

Los Angeles, June 16, 2006 – Companies led by CEOs with military experience have outperformed the S&P 500 Index over the past three, five and 10-year periods by as much as 20 percentage points, according to a study by Korn/Ferry International (NYSE:KFY), the premier global provider of executive search, outsourced recruiting and leadership development solutions.

Published by Korn/Ferry in cooperation with the Economist Intelligence Unit, “Military Experience & CEOs: Is There a Link?” also found that CEOs with military experience tend to last longer in the job.  CEOs with military experience have an average tenure of 7.2 years, while CEOs without military experience have an average tenure of 4.6 years. 

The study found that the 59 companies on the S&P 500 headed by CEOs with military experience provided an average annual shareholder return of 21.3% over the three-year period ending September 2005, versus 11.0% for the S&P 500 Index during the same time.  For a five-year period, the ex-military CEOs provided a 9.5% return while the Index provided a -10.7% return, and for a ten-year period, the ex-military CEOs provided a 12.2% return versus a 9.4% return for the S&P 500 Index. .....›

GM to assemble HUMMER H3 and four Chevrolet models for Russian market in Kaliningrad

KALININGRAD, April 5, 2006  (General Motors - Europe) - GM today celebrated the start of production and sales of the HUMMER H3 in Russia at a ceremony at the Avtotor plant in Kaliningrad, Russia. In addition, GM announced the start of pilot production of four Chevrolet models in Kaliningrad.
GM and Avtotor have been collaborating since June 2004, starting with production of Hummer H2. Currently, there are three GM brands being produced at Avtotor: Cadillac STS, CTS and SRX; Hummer H2 and H3; and the Chevrolet Tahoe and Trail Blazer. The four new Chevrolet models will be produced with SKD (semi-knock down) technology. In 2007, one core model will be produced as CKD (complete-knock down) which will include painting, welding and general assembly operations. “The overall approach in Kaliningrad is a positive move towards expanding our total GM operation in Russia”, said Warren P. Browne, Executive-in-Charge, GM Russia.....›

Kaliningrad: from Russian relic to Baltic boom town

Independent, 23 March 2006, Stephen Castle report.                                                           

Once famous for brutalist Soviet architecture and soaring Aids rates, this tiny enclave is emerging as Putin's answer to Hong Kong.

Once it was a home of philosophy, a European capital and a centre of Baltic prosperity. These days those who have heard of Kaliningrad associate it with drugs, prostitution and the Russian Aids epidemic.

Jutting out into the Baltic, the region of Kaliningrad is an accident of history, a part of Russia now literally cut off from the rest of the motherland by Lithuanian territory. But this small, Russian fifth column inside an expanding EU is mounting a surprise comeback. Buoyed by something of an economic boom, the region's extrovert, 42-year-old governor, Georgy Boos, has ambitious plans to turn the enclave into the Hong Kong of the Baltic. He also wants to transform the city once known as Königsberg into one of Europe's least likely tourist destinations......›

Trade infrastructure development in Russian regions

British London & Regional Properties (L&RP), the biggest European developer intends to build the shopping centres 40 000-80 000 m² in Russian cities of Belgorod, Yaroslavl’, Tula, Ryazan’ and Ivanovo with population less than 1 million people. In March of this year L&RP signed an agreement with Swedish Centrum Group which will be managing the shopping centres. The first one called Centrum Park Kaluga, a 30,000 m² regional shopping centre in Kaluga, 190 km from Moscow will be opened in the end of year 2007 and within consequent five years will be launched 5-7 more of such projects with total cost of $300 millions.

Inteko Invests in British Farming Equipment

Moscow's Inteko has bought a stake in the British agricultural harvesting and farming equipment manufacturer Shelbourne Reynolds and plans to start joint production in the Kaliningrad region, Inteko vice president Viktor Baturin said Friday, Vedomosti reported.

The size of the stake was not announced, but Baturin said that Inteko paid several million pounds for the stock, which entitles Inteko to "make any decisions in terms of organizing production in Russia," the paper said.

Keith Shelbourne, chairman of Shelbourne Reynolds, said Monday that he hoped to start the production of the Shelbourne Headers line of next-generation combines by the end of 2006. The machines pick grain from the standing crop rather than cutting grain with the straw, Shelbourne said. The joint venture will aim to produce several hundred machines per year, he said.    

The most complicated parts of the machinery will still be produced in Britain, while assembly will be in Russia, Shelbourne said. So far, production in Kaliningrad is planned for the Russian market, where Inteko would act as the British company's distributor, he said.

"We already manufacture in Mexico, Hungary and China. If Kaliningrad is successful, we would consider switching some production to Russia," he said. (The Moscow Times, Tuesday, January 17, 2006)

Sweden opens consulate-general in Kaliningrad

KALININGRAD, February 17 (Itar-Tass) - Sweden has opened its consulate-general in Kaliningrad on Friday. The opening ceremony was attended by Swedish Foreign Minister Laila Freivalds.

She emphasized that “cooperation with Russia is a priority for Sweden, and the opening of the consulate-general in Kaliningrad will help to boost relations between our countries, contacts between Swedish and Russian citizens as well as states of the Baltic region as a whole”.

According to Freivalds, “especially close contacts have developed between southern Sweden and the Kaliningrad Region over the past 15 years: more than ten cities have twinned relations, which is very important for strengthening mutual confidence”. The minister noted that Sweden renders financial support in implementing several major projects in the Russian westernmost region.

The fact that the consulate will issue Schengen visas for Russians, starting with March, lends special importance to the opening of the Swedish consulate-general in Kaliningrad, the first diplomatic mission of a state member of the Schengen union, the minister claimed.

There will be no need now for residents of the region to travel to Moscow or St. Petersburg where there are Swedish consulates. “It will be easier for Kaliningraders to visit Sweden. As a result, contacts between people and businessmen will be more intensive,” the minister stated.

However, according to an issued visa, it will be necessary to tour Schengen agreement countries, starting precisely with Sweden, the consulate specified to Tass. It is planned to issue annually between 5,000 and 8,000 visas. The cost and time of making out visas will be the same as for citizens of “hinterland” Russia: consular charges – 35 euros and about a week for waiting. Swedish Consulate-General in Kaliningrad

The Nordic Council of Ministers opens office in Kaliningrad

An agreement to open a new Nordic Council of Ministers' office in Kaliningrad was signed in Moscow on 22 December by the Council of Ministers and the Russian Federation. The Nordic Council of Ministers has had offices in the Baltic capitals since 1991 and in St. Petersburg since 1995. Co-operation with North-West Russia will now be taken a step further by greater involvement in Kaliningrad.                                                                                           

In collaboration with local bodies, the office will co-ordinate and implement the Council of Ministers' Russia Programme in Kaliningrad - in particular in relation to the Nordic Council of Ministers' new guidelines and programme for co-operation with North-West Russia. The Nordic Council of Ministers' exchange and networking programme for civil servants, researchers, artists, politicians and business will be open to citizens of Kaliningrad.                                                                                                             

Co-operation projects will be launched involving local parties in Kaliningrad and partners in the Nordic Region. The Council of Ministers also envisages closer political co-operation with the local administration in Kaliningrad. The Nordic Council of Ministers has made co-operation with North-West Russia and the Baltic States one of its top priorities, a move reflected in the fact that it earmarks approximately 20% of the total annual budget for work in the area.          (Nordic Council)                                                          

Kaliningrad will become more transparent for Western investors

KALININGRAD, December 14 (GTRK "Kaliningrad) - Today, the regional development agency presented the "Virtual Integrated Service Center for Investors." The Center accumulates information about the development of industries across the districts of the oblast and investment projects. All data are structured across customer types and published in the respective sections of the Regional Development Agency web-site. The European Union has allocated Euro 3 million in the framework of the TACIS program to the build-up of this database. As yet, the Virtual Center contains information about only 7 districts of the oblast, however, already next year entrepreneurs will be able to familiarize themselves with investment programs of all municipalities.

British trade mission visits Russian exclave

KALININGRAD, November 7 (RIA Novosti-Northwest, Anatoly Nilov) - A British trade mission has begun a four-day visit to Kaliningrad, Russia's exclave on the Baltic Sea, the regional government press service said Monday.

"The Russian-British Chamber of Commerce, with the participation of the British Consulate General in St. Petersburg, under the auspices of the Kaliningrad region's government and city hall, has organized a trade mission of British businessmen to the region," a spokesman said.

He said the mission would provide an opportunity for British businessmen to familiarize themselves with Russia's northwestern region, noting that similar missions had been a success in other big Russian cities.

The businessmen represent companies that are members of the bilateral chamber of commerce, including Spirax Sarco, the world's leading supplier of pipeline controls and instrumentation for steam and other industrial fluids, and Russian-British joint venture LonMadi, which supplies construction equipment.

U.K. businessmen amazed by Britain's investment in Kaliningrad

KALININGRAD, November 8 (RIA Novosti-Northwest, Anatoly Nilov) - British businessmen are surprised at the share of British investment in the economy of the Kaliningrad region, Russia's exclave in the Baltic Sea, representatives of the Russian-British Commerce Chamber said Tuesday.                                                                                                               

Daniel Kearvell and Peter Langham, who head the British mission, told journalists referring to local Russian authorities that the UK's share was 13% of the total regional investment.

They said they intended to further contribute to developing British business in the region, like Spirax-Sarco, DLA Piper Rudnick Gray Cary and LonMadi.

British diplomas to be awarded at the Kant State University

KALININGRAD, November 17 (GTRK "Kaliningrad) - The Kant State University acted as the host of educators from Great Britain. The guests from the misty Albion wanted to personally prove the high standards of education at the leading higher education establishment of Kaliningrad. As a matter of fact, already next academic year the Kant State University is opening a new master program with participation of the Bristol University. Any graduate has the right to join the program. Within 18 months, students can improve their English and finally obtain diplomas of this prestigious European university.

Emerging market priorities for global Retailers

Every year, the retail landscape looks a little different. In 2005, consumer electronics, apparel and home-improvement companies are awakening to the global growth imperative. DIY retailer Kingfisher just opened in Russia, and The Home Depot set up shop in China. Next year, what format will appeal to what market?

The index not only provides an annual snapshot of how the opportunities in emerging markets stack up, but also offers insights into changing trends. A slight change in position from one year to the next may not seem significant, but over the course of a few years, we see just how important these subtle indicators can be. So when we report that India has overtaken Russia to take the lead spot this year, and that six of the top 10 most promising regions are in Eastern Europe, what does it mean? If Russia is the clear choice at number two this year, where was it five years ago? How important are country advances and declines on the index? Ukraine moved from number 11 to the number three spot in just one year. Surely there’s more than one reason for such a jump.... A.T. Kearney, Global Retail Development Index (GRDI), September 12

Russia to see investment boom

The World Bank forecasts an investment boom in Russia soon. “Investment activity, including foreign investment, appears to be picking up in the second half of 2005, and a genuine investment boom could be possible in Russia in the near future,” the bank said in its Russian Economic Report... RosBusinessConsulting, December 2

Why it is worth making investments in Kaliningrad

The Kaliningrad region is the most western region, separated from the mainland of the Russian Federation. Due to its geographical and political location, especially after Poland’s and Lithuania’s joining the EU, the Kaliningrad region is gaining a new challenge of extending and developing co-operation with the European countries in various fields, first and foremost, in economics. This site of Kaliningrad City Hall give you very useful  economic and legal information on investment environment in this region.

Russia banks on Governor's girl   

For a decade she had the ear of the Governor of the Bank of England; now she is one of the international faces of the increasingly authoritarian Russia of President Putin.

Liz George, whose father, Lord George, ran the Bank of England for ten years until 2003, is to be a news anchor for Russia Today, a controversial Kremlin-backed English language news channel that was launched last weekend...The Times, Jeremy Page, December 13

Amazing story of Russian who bought a great British name

IN the charmed world of Russia’s spectacularly rich tycoons, few walk on water with the ease of multi-billionaire Oleg Deripaska.

Yesterday he was in the Kremlin, advising President Putin about the bureaucratic obstacles to business in Russia.

But this week he came to the attention of this country – snapping up a piece of British industrial history, the van maker LDV.

Its roots go back to 1896, when the Lancashire Steam Motor Company was founded. The firm later became Leyland Daf before emerging with its present name. Daily Express, August 3 .....›

The Russians are coming

They may not be an Abramovich, says Mary Gold, but the rouble elite know how to get what they want. The trouble with being a Russian property-buyer is that everyone thinks you’re Roman Abramovich and whacks 10 per cent on the price. The Russians have woken up to this, and are becoming increasingly cunning when buying a home. Several agents in London have taken on Russian-speakers to make Russians feel more at home and to emphasise in their own language that they are not being ripped off... The Times

Oligarch of the Glen: Russia's second richest buys £7m estate

He is a gun-toting member of the super-rich Russian elite with a personal fortune of £5.4bn. Vladimir Lisin is also a former welder who has become his country's second-richest man with a place in President Putin's favoured circle.

But Scotland on Sunday can reveal today that the 49-year-old steel tycoon is also the new laird of Aberuchill Castle Estate, a prime slice of the Perthshire Highlands that he recently bought with £6.8m of "small change"... Scotland on Sunday, Jeremy Watson, December 11

Welcome to Londongrad

Armed with big wallets and bigger dreams, Russia's elite make the British capital their home away from home.... Forbes, Michael Freedman, May 23

Information      

Main Taxes Rates in Russia

Paying taxes in Russia for foreign/British residents

When you come to live or work in Russia, the Russian tax you'll pay depends on whether you have “resident” or “non-resident” status over there. Residents and non-residents paying taxes in case they receive income from the sources on the territory of the Russian Federation. Foreign citizen can be a tax resident of the Russian Federation if he resides on the territory of the Russian Federation not less than 183 days of the calendar year. Tax rates for residents and not residents are different. 13 % is for income received by tax residents; and 30 % is for income received by tax non-residents on the territory of the Russian Federation. An individual who is a non-resident of the Russian Federation may be exempt from taxation by Russian tax authorities, provided that he introduces (forwards) to Russian tax authorities an official confirmation that he is a resident of the state that has double taxation treaty with the Russian Federation. Russia and U.K. has double taxation treaty from 1994 No. 3213. Thanks to that you can decide where you want to pay your taxes in Russia or in U.K.

Law "On the Legal Status of Foreign Citizens in the Russian Federation" (Russian language) /  Закон "О правовом положении иностранных граждан в Российской Федерации" (с изменениями на 18 июля 2006 года)                                      

Defines the legal status of foreigners in the Russian Federation, and regulates conditions of their entry into and exit from Russia. It regulates relations between foreigners and state and local authorities in connection with the foreigner's temporary or permanent stay in Russia, including those related to foreigners' employment, commercial and other activities in Russia. Download

Travel rights for non-EU national family members of EU/UK citizens within the European Union

Neither the UK nor other EU countries such as Lithuania, Estonia, Latvia, Poland, Hungary, Slovakia, Czech Republic, Ireland, Cyprus, Slovenia, and Malta are currently signatories of the Schengen agreement that means in order to travel to another EU country members of the family of an EU/UK citizen should be required to obtain a visa. Such visas, where they are necessary, should be granted free of charge, and without undue formalities. This facilitated system of obtaining a visa will apply to non-EU national family members, however, only when they travel with an EU citizen.  Download

Right of admission foreign/Russian spouse of a British national to the UK without the need to obtain entry clearance

In the case of a British national spouse/partner have been lawfully resident in the other EEA country before applying to enter the UK - it is not needed to obtain entry clearance. More detailed explanation of European law further.

Kaliningrad Visas                                                                             

Kaliningrad operates a special visa system which allows visas to be issued at the border on arrival, thus avoiding Russian embassies abroad and complicated visa forms.  The short-term tourist visas (for stays of up to 72 hours on the territory of Kaliningrad oblast only) to foreign tourists (citizens of countries of the Schengen Treaty, the United Kingdom, Japan) on requests of Kaliningrad tourist agencies, that are registered for consular services at the Representative Office of Russian Ministry of Foreign Affairsand have the right to issue short-term visas, but not later than 48 hours prior to a supposed entry of a foreign tourist.  Download 

Main Taxes and Duties Rates in the Kaliningrad region Download

Certificate of Origin in the Kaliningrad Special Economic Zone 

This is a new process of obtaining Kaliningrad certificate of origin in correspondence with "Decision of the Government of the Russian Federation No. 171 of March 30, 2006 on the Endorsement of the Rules of Use of Criteria of Enough Processing and Issue of Appropriate Certificates for the Products of Processing of Commodities Imported under the Customs Regime of Free Customs Zone Applied in the Kaliningrad Region". Document contains an application form and list of documents which is necessary to submit while application process to Kaliningrad Chamber of Commerce and Industry. Download

Russian import duties                                                                                               

Find out the import duty for your product is possible in the "Applied Tariffs Database" of free European Union Market Access Database

Law on the special economic zone in the Kaliningrad region.

The new Federal law "On the Special economic zone (SEZ) in the Kaliningrad region" came into force on 1 April 2006. Under that law the new zone will be operational for 25 years. In the first six years entities will be exempt from the profit tax 100%, and they will enjoy 50% discount in profit taxes for another six years. In addition, investors will be exempt from the tax on organizations’ property for the first six years of their projects. But this is only for investors who bring at least one hundred and fifty million rubles of investment. They won’t have to pay customs duties on commodities brought to Kaliningrad for production purposes, as long as the commodities keep within the regional limits. Visa formalities will be reduced for investors. Companies which are registered before the law came into force have a ten-year long transition period and can use the old privileges. Privileges for them means that goods, manufactured in the Special economic zone (the fact that is verified by the certificate on the goods origin) and exported to the other countries and the Russian Federation, are exempt from Customs duties and other charges while going through the Customs and being cleared (except the Customs fees for drawing up the Customs clearance papers). Download

On submission of an investment declaration for SEZ resident

According to the Law № 16-FL “On the Special economic zone in the Kaliningrad region which come into force on 1 April 2006 the Government of the Kaliningrad region has approved a special form of an investment declaration for SEZ resident.

Now, with coming into force of the new law on SEZ, applicants for inclusion in the Register of residents of the Special economic zone in the Kaliningrad region should prepare and submit the following documents:

·        an application in the free form, addressed to the Head of the Administration of Special economic zone (Minister of Economics of the Kaliningrad region  F.F.Lapin) on inclusion of the legal person into register;

·        copies of legal person’s foundation papers, certified by a notary;

·        a certified copy of the document, attesting that the legal person has been entered in the general State register of legal persons;

·        the certificate of registration by the tax authority;

·      the investment declaration page 1  page 2

·        the business - plan of investment project.

This package of documents can be sent by mail to the address: 236007, Kaliningrad, Dmitry Donskoy street 1 or be brought into the reception office of Ministry of Economics of the Kaliningrad region (within working day) office 428 (phone: 599 024).

Civil Code of the Russian Federation (Part One)

Part I of the Civil Code upholds such rights as the rights to own and inherit property; to engage in entrepreneurial activity; to establish independent legal entities; and the protection of intellectual property rights. Part I also defines concepts such as securities, contractual rights, and the power of attorney. Download

Civil Code of the Russian Federation (Part Two)

Part II of the Civil Code further expands on these new civil relationships, and contains provisions governing certain types of agreements and the rights to sign contracts, to rent property, to receive loans, and to be compensated for injury. Download

Map of Europe with the Baltic Sea Countries and Kaliningrad

to download the great map click here

Deta