Foreign direct investment into the Russian economy increased 43% in the first three quarters of 2011, reaching $11.7 billion.

This foreign capital came mainly from Cyprus and the Netherlands, where many Russian enterprises have parent companies for tax reasons.

However, whilst foreign capital inflow grew almost threefold, capital outflow reached $94 billion dollars during the same period, with Russia mostly moving money into Switzerland and Austria.

With inflation down to 7%, its lowest level in Russian history, and foreign debt only accounting for 2.5% of the country’s GDP, the climate for foreign investment is predicted to become easier in 2012.

Irina Yakimenko, of Russian immigration and relocation services company Intermark, details the top ten things you, and your assignees, need to know about  moving to Moscow.

1. Immigration

Russian immigration is quite complicated and can take some time. We have certainly seen obvious positive tendencies in the last two years – for example, the introduction of three-year work permits and work visas – but we cannot over-emphasise the length and bureaucracy of the process.

Therefore, make sure you start the process as early as possible, and take professional advice. Minor details and paperwork can influence the whole process.

Outside Moscow, the major cities are St Petersburg and Nizhny Novgorod, to the west, and Novosibirsk and Ekaterinburg, towards the south east. The principal industries of these city regions include food and beverages, machine engineering and metal processing, energy, nonferrous metals, chemicals, and construction materials.

The rising economic tide has raised standards of living across most of the country. While upmarket boutiques are now a feature on the high streets of Russia’s top five cities, and frequent international flights the norm at regional airports, quality of life is markedly different from the capital city’s.

Demonstrating the scale of the business opportunities available in Russia is the development work currently underway in the Black-Sea coastal city of Sochi – a territory larger than Moscow – in preparation for its hosting of the 2014 Winter Olympic Games.

The Russian government is using the 2014 Games as a catalyst for development of the city and the whole region of Krasnodar Krai. Its aim is to create a sustainable longterm legacy that boosts the currently largely-domestic local tourism industry by improved facilities and the region’s imminent global exposure to:

When a family relocates to Russia, there are many things they need to consider in advance, in order to prepare themselves for life in a country that has its own rules, writes Detlef Kahlenborn, of Froesch AG, in Moscow.

In day-to-day life, transferees are like to encounter some very real challenges, including:

• A lack of people speaking English, including officials (public authorities/police/doctors, and so on). Therefore, without at least basic Russian language skills, life can become difficult
• The cold winter can be a huge challenge for transferees who are not well prepared for it. In Moscow, there can be snow from November to March/April. During the major winter months of December to February, the amount of snow can be huge, and very often the temperature in Moscow can reach minus 20 or 30. Winter clothes suitable for the Russian climate will not be available in all countries of origin

Steve Wilkins, of Harrow Green Global Moving Solutions, answers some frequently asked questions about the practical aspects of relocating to Russia.

Approximately how long does it take to arrange a move to Russia?

Transit times are dependent upon the customs documentation being available and authorised. Paperwork processing can be lengthy. Once authorised to proceed with the transfer of the consignment, the following transit times will generally apply:

• Full-load moves 10 days
• Part-load moves 10 to 21 days

Clearance takes two days upon arrival of the shipment in Russia.