(Last updated: 8 May 2012)

Current business situation

Australians planning to travel to Russia/CIS are urged to exercise care and monitor developments that may affect their safety – both through Smartraveller, the Department of Foreign Affairs and Trade (DFAT) travel advice services and the media. Individuals should take sensible precautions and ensure that travel documentation, including passports and any necessary visas, for themselves and their dependents are up to date and valid for the entire period of travel.

It is recommended that Australians visiting the region register with the nearest Australian Embassy. To register online visit: www.orao.dfat.gov.au.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Russia's economy is making a rapid recovery after the global financial crisis, although tempered by the challenging international business environment. Economic growth for 2010 is forecast at 4.2 per cent (World Bank) and 4.5 per cent in 2011.

Russia's foreign trade leapt by 47 per cent in the first five months of 2010. The Russian Government has responded effectively to the international economic downturn, although the country still faces ongoing challenges to diversify its economic base and increase its competitiveness.

The Russian Federation is the world’s largest energy exporter, with enormous reserves of natural gas and oil. Today Russia has the world’s third largest gold and foreign currency reserves, valued at more than US$500 billion.

Russia’s key challenge, like Australia, is to effectively harness its wealth of natural resources, skilled workforce and infrastructure to build a broad and stable economic platform. Australia and Russia thus have strong complementarities and there are significant opportunities to build durable commercial and investment linkages.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

The Russian Federation consists of 85 administrative regions (‘subjects of federation’). Russia’s constitution was adopted in 1993 by popular referendum. Executive power resides with the President (head of state) and the Prime Minister (head of government). Legislative power resides in the two houses of Parliament: the State Duma (Lower House, 450 seats), and the Federation Council (Upper House, 176 seats).

(Source: Department of Foreign Affairs and Trade - Country brief)

Trade relations and statistics

In recent years, Russia's rapid economic growth and drive for modernisation have opened up trade and investment opportunities for Australia. This trend is expected to continue as Russia continues to negotiate for accession to the WTO.

An increasing number of Australian companies are operating successfully in the market. Many small and medium-sized companies are now represented in Russia alongside large, well-established multinational companies.

The official statistics also only tell part of the story, as some Australian products are re-exported to Russia via third countries, sometimes as components in another product and sometimes via the European operations of Australian multinational companies. Moreover the figures tend to understate the substantial growth in Australia’s services exports to Russia in recent years.

Russia will host the Winter Olympics in Sochi in 2014, the FIFA World Cup in 2018 and a Formula One Grand Prix from 2014. Austrade Moscow has established links with the relevant organising bodies and corporate participants and can help Australian companies with expertise in sports infrastructure to position themselves for the significant opportunities that are available.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.