Russia - Nuts and Bolts

The Russian Federation is the largest republic of the CIS; it's almost twice the size of the United States. Moscow, with nearly 9 million residents, is the largest city.

The Russian Federation officially came into existence in December 1991. Russia is a presidential republic, containing 22 autonomous republics that maintain an uneasy balance between the Russian president and the Congress of People's Deputies (parliament). In practice, the power base is much more complex. Russia's vast size (10.5 million square km) and population (148 million) could make the region ripe for exploitation by Western investors; the corrupt infrastructure, however, makes business profits unlikely for years to come.

Russian is the official language, although there are many local ethnic tongues. English is widely read but not yet fluently spoken. Translators, of varying abilities, will be found in all sizable organizations. The country boasts a nearly 100 percent literacy rate.

Business hours are from 9 a.m. to 1 p.m., with a break for the typical heavy Russian lunch between 1 and 2 p.m. Some stores close from 2 to 3 p.m. Banks are open from 9:30 a.m. to 12:30 p.m., with currency exchanges open longer. You can change money at Sheremetyevo II International Airport in Moscow 24 hours a day. Also, the American Express office in Moscow can cash your AMEX traveler's checks into dollars.

Russia is $160 billion in debt but still manages to keep finding major oil fields. The former USSR had about 6.4 percent of the world's oil reserves and was the world's largest producer and exporter of natural gas. However, poor management has led to annual decreases each year since the 1980s.

Gas comes from western Siberia; the largest areas are Urengoi and Yamburg. New fields on the Yamal peninsula are waiting for development. The former USSR was the world's third-largest coal producer (after China and the United States). Russia possesses the world's largest explored reserves of copper, lead, zinc, nickel, mercury and tungsten. It also has about 40 percent of the world's reserves of iron ore and manganese. Figures released in September 1990 show confirmed iron reserves of 33.1 billion tons. The world's largest gold deposits at the Sukhoi Log reserves are estimated at more than 1,000 tons, much of which is smuggled out of Russia through the Baltic States. Russia is also trying to retain more control over its diamond reserves. The government created the Federal Diamond Centre, granting parliament more control over the industry. The intent is to weaken control over Russia's diamonds by De Beers, which has operated a supply cartel and maintained Russia's output at 7,500,000 carats per year.

Russia will be a net food importer for some time to come. Even when there are record harvests, shortages of labor cause the crops to rot in the fields.

Arms sales continue to be an important part of Russia's exports, although there is worldwide concern that a lot of high-tech systems are getting into the wrong hands.

The official currency is the ruble; it's pointless to post its rate against the U.S. dollar, since it changes as frequently as most people change their underwear. We are not even going to hazard a guess how little the ruble will be by the time you read this. U.S. currency is still preferred in Russia. There are 100 kopeks to the ruble.

Electricity is 220V/50Hz.

Money Hassles

Traveler's checks and credit cards are not widely accepted in Russia; in many cities, credit cards are only accepted at establishments catering to Westerners. Old, or very worn, dollar bills are often not accepted, even at banks. Major hotels or the American Express offices in Moscow or St. Petersburg may be able to suggest locations for cashing traveler's checks or obtaining cash advances on credit cards. Western Union has agents in Moscow, St. Petersburg and some other large cities that can disburse money wired from the United States.

Resources

ITAR-TASS

http://www.itar-tass.com/itar-tass.htm

Interfax

http://www.interfax-news.com/

All about Russia

http://www.russianinfo.com/

Russian Studies Database

http://www.nupi.no/russland/russland.htm

Russia Today

http://www.russiatoday.com/

Better Living through Chemistry

Russia's drug addicts number 1.5 million (or 1 percent of the entire population), and the figure keeps growing. Illegal hemp fields in Russia cover an area exceeding 40 million hectares. During a recent eight-month period, Russian law enforcement bodies made arrests in connection with 40,000 drug-related crimes, seizing 13.3 tons of various drugs. Police have busted 3,300 gangs engaged in drug trafficking and sale. From 30 to 35 percent of the drugs are imported. In Moscow and St. Petersburg, however, the figure reaches 80 to 90 percent.

The price of one gram of cocaine in Moscow is from 400 to 900 percent higher than in New York, for which reason the Russian drug market looks very attractive to the international Mafia. The drug trade in Russia is a $100 million-a-year business. The police force fighting drug dealers today numbers as few as 3,500. Police are especially concerned that a new synthetic drug-trinisilsyntholin-is being produced in Russia. It formerly had only been produced in the U.S. The substance is so strong that one gram of it is enough to make 10 liters of narcotics more powerful than heroin or cocaine. Imported drugs, such as heroin and cocaine, are now sold everywhere in Russia. In Moscow, for instance, the price of one gram of heroin ranges from $200 to $300.