Russia

Large domestic market of 146 million people. Russia ranked as the 4th largest economy by PPP globally in 2025 (IMF DataMapper), providing substantial consumer and industrial demand for non-sanctioned investors.

World's largest natural gas reserves and a major exporter of oil, coal, and mineral resources. Energy and natural-resource sectors continue to attract investment from non-Western and non-sanctioned entities.

Educated, STEM-capable workforce: 99.7% literacy rate and strong university output in engineering, IT, and mathematics.

Low government debt of approximately 18% of GDP (2024) — among the lowest debt ratios of any major economy.

Skolkovo Innovation Center SEZ: qualifying resident technology companies benefit from 0% corporate income tax, a 14% social contributions rate, and VAT exemption during the active project phase.

Accredited IT companies pay 5% corporate income tax and 7.6% social contributions under Russian IT sector incentives (Decree No. 1850, 2022). Applicable to any foreign IT company that obtains Ministry of Digital Development accreditation.

EAEU free-trade zone: a Russian OOO opens the 183-million-person Eurasian Economic Union market (Belarus, Kazakhstan, Armenia, Kyrgyzstan) with no internal customs barriers under the EAEU Treaty.

Growing trade and payment infrastructure with China, India, Iran, and the UAE. Yuan-ruble settlement corridors and Chinese correspondent banking routes provide viable cross-border payment options for non-Western investors.

Comprehensive Western sanctions: US OFAC, EU, UK, Canada, and Japan impose asset freezes, sectoral bans, and technology transfer restrictions since February 2022. Most Fortune 500 companies have exited Russia. New investment by Western-headquartered entities is effectively non-viable.

SWIFT banking isolation: seven or more major Russian banks — including Sberbank, VTB, and Gazprombank — removed from the SWIFT network since 2022. International payments to most Western counterparties cannot be processed from Russia.

Capital controls under Presidential Decree No. 95 (March 1, 2022) restrict dividend repatriation, loan repayments, and currency transfers to residents of 'unfriendly states.' Government approval is required for most cross-border financial flows.

DTT suspension: Russia unilaterally suspended Double Taxation Treaties with approximately 40 'unfriendly states' via Presidential Decree No. 585 (August 8, 2023). Withholding tax on dividends reverts to 15%, on interest and royalties to 20%, for most Western investors.

CIT raised to 25% effective January 1, 2025 (from 20%) under Federal Law No. 176-FZ, while most DTTs are simultaneously suspended — making profit repatriation structurally more expensive than pre-2022.

Rule-of-law risk: Transparency International ranked Russia 157th out of 181 countries in the 2025 Corruption Perceptions Index. Foreign assets of 'unfriendly state' investors can be seized under emergency decrees.

Currency volatility: the ruble has weakened significantly since 2022 and has limited free convertibility. Unhedged ruble exposure carries material devaluation risk.

Reputational and secondary sanctions risk: commercial relationships with Russian-linked entities may trigger OFAC secondary sanctions scrutiny, even for non-US companies operating in third jurisdictions.

War economy distortions: approximately 40% of the government budget allocated to defence in 2025; civilian sector labour shortages; estimated 600,000–1,000,000 skilled workers have emigrated since February 2022.

Corporate bank account opening is extremely difficult post-2022. Practical timelines of 2–8 weeks, with options limited to Raiffeisenbank Russia, UniCredit Russia, Chinese-owned banks, and non-sanctioned regional Russian banks — all under ongoing regulatory pressure.