Feb. 3 – Russia is to become Europe’s second largest retail market with sales in 2011 amounting to US$621 billion, according to Euromonitor International, and may become the largest market in Europe by 2013-2014.
Retail sales in Russia rose 9.5 percent year-on-year in December, compared to 2.6 percent growth in the UK. Read the rest of this entry »
Oct. 17 – The Anglo-Dutch Unilever PLC said Friday that it had agreed to buy 82 percent of the Yekaterinburg-based beauty and cosmetics products manufacturer OJSC Concern Kalina for 500 million euros (US$700 million).
The deal, which has to be approved by regulators, “will strengthen and re-balance Unilever’s portfolio and competitive position in Russia, an emerging market with considerable potential and one of our priority countries,” said Paul Polman, CEO of Unilever.
Kalina is Russia’s largest local personal care player with leading positions in skin and hair care and an expected 2011 turnover of around 303 million euros, Unilever said. Read the rest of this entry »
Aug. 26 – American payment system PayPal will begin carrying out money transfers in Russia and the Ukraine starting from the end of September, the company said in a statement.
The PayPal web site has published new money transfer tariffs that will come into force on September 24.
The fee for sending money to Russia will range from 0.5 percent to 1.5 percent depending on the country you are sending it from. Sending money within Russia will cost 1 percent. Read the rest of this entry »
Jul. 12 – The State Duma may approve additional restrictions on the sale of beer with alcohol content of more than 0.5 percent between 11 p.m. and 8 a.m. in the country before the summer recess. The bill would also ban the sale of beer altogether at outdoor kiosks (stalls), train stations and street stands, at which around one-third, or about US$6 billion of Russia’s beer is sold.
The bill also expands the number of places where alcohol consumption is prohibited. These places will now include courtyards, elevators, building entryways, playgrounds, forests, parks and beaches. The law is expected to fully enter into force by January 1, 2013, but it is already causing shock waves in the industry. Read the rest of this entry »
Nov. 4 – Russians will spend US$19.5 billion online this year, according to research of the market’s value released by Google Russia and Citibank on Tuesday.
Spending by online shoppers will grow to US$26 billion in 2012 from US$20 billion anticipated this year, the study found. Read the rest of this entry »
Oct. 8 – Sweden’s IKEA Group, one of the world’s largest home product retailers, turned down its plan to invest up to US$1 billion in the construction of a giant shopping complex in Moscow.
The shopping complex was expected to be the largest in Europe with a total area of 400,000 square meters over 50 hectares of land in the Mytishchi district of the Moscow region, which IKEA already bought. Read the rest of this entry »
Jul. 9 – Russia, Kazakhstan and Belarus have reached an agreement creating a new Customs Union (CU) starting this week that will put all three countries under one customs territory.
The new Customs Code will simplify Russian-Kazakhstan border customs registration, though Customs control at the border will be remain until 2011. The three countries have also adopted technical quality and sanitary standards for goods, a measure that allows goods tested and approved by watchdogs in Belarus to be sold in Russia and Kazakhstan without being tested by their agencies. Read the rest of this entry »
Mar. 30 – French retail giant Auchan, which has never publicized its financial indicators in Russia, has now been compelled to do so in a judicial dispute with tax inspectors.
The operational company of the hypermarket network Auchan, is trying to challenge the decision of the Moscow branch of The Russian Federal Tax Service (FTS) on tax grudges regarding the ministry’s attempt to collect 739.7 billion rubles of taxes, fines and penalties. Read the rest of this entry »
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Russia and Asia. These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about our practice, and our partner firm in Moscow and St.Petersburg, please contact us at russia@dezshira.com. Download our corporate brochure or visit at us www.dezshira.com.
