We are very pleased to be sending you the first issue of our new newsletter. The newsletter will serve a number of functions, including announcements of relevant events, feature articles on member companies doing business in Russia, news and links to practical information resources. As the newsletter grows and develops, we would like it to become an interesting and useful resource and to be the focal point of an active community of organizations and individuals engaged in business with Russia. We would look forward to your comments and contributions in the months to come.
If you enjoy this new issue, we encourage you to forward it on to others who might also find it useful. If you are a newcomer to this site or this letter, you may subscribe by simply entering your email address at the bottom right corner of our home page.
Upcoming Business Events - Conversation with Alan Greenspan
The Mass Technology Leadership Council's Fall Membership Meeting will feature a remarkable public figure and monumental economic leader - Dr. Alan Greenspan, former chair of the Federal Reserve and the man responsible for much of the current U.S. fiscal policy. The event will be held at the Sheraton Boston Hotel, Boston, MA, on September 25th, 2006. Click here for more details. USRCCNE Members are invited to attend at the MTLC Member rate!
Meet another charismatic figure in William Browder, the CEO of Hermitage Capital Management (one of Russia's largest investment funds), who has been featured much in the international press after the government of the Russian Federation barred him from re-entering the country on the grounds that he is a "security threat." Mr. Browder will speak to The University of Illinois at Urbana-Champaign Chancellor's Conference. The conference will be held October 12-13, 2006 at the Palmer House Hilton Hotel in Chicago, Illinois. Click here for more details.
Offshore IT outsourcing in Russia has grown from nothing to a more than a billion-dollar-a-year industry in less than two decades. There are many reasons for this. Russia has one of the world's best educated populaces, highest concentrations of scientists and engineers per capita, and, in it's still transitioning economy, relatively low wages. Russia has several successful firms operating IT outsourcing who work together to promote their abilities through industry organizations known as RUSSOFT and Fort Ross.
Articles and Resources on Russian IT: 1. Richard Golob of GGA Software Services, LLC contributed the following article about his personal experience in founding and running a software services company in Russia. 2. Daniel Satinsky, President of USRCCNE, contributed the following article about the economic implications of the phenomenal growth in this Russian market. 3. Daniel Satinsky is also the editor of a new book a new book: Buyer's Guide to the Russian IT Outsourcing Industry an essential resource for anyone hoping to enter or use the Russian IT outsourcing market.
Featured Member: Auriga
Auriga is an American IT outsourcing services provider with development centers in Russia (since 1990). Auriga was the first to adopt the Remote Engineering Center (REC) concept as its driving strategy. Recognized as one of the Top 5 outsourcing providers in Central & Eastern Europe, Auriga focuses on delivering robust business and technology solutions to the high-tech and specialty equipment manufacturers worldwide. Auriga's client list includes such industry majors as IBM, Dräger Medical Systems, LynuxWorks, NMS Communications, and many others.
USRCCNE, in partnership with member organization The School of Russian and Asian Studies, is constructing a new set of resources for businesses and professionals with an interest in Russia. Currently featured are several useful business news sites, Russian government organs, general information sites, and financial information sites - among others. This page of Internet resources will continue to grow and be updated over the next several months.
Opinion: Democracy and Economy
As we are all well aware, the political situation in a country can either help or hinder it's investment ratings. Russia's ratings seem to be continually improved, indicating that most investors are now confident that the political situation there is stable. However, the debate remains volatile - what type of political system has stabilized in Russia and what are the implications for the Russian people, for history, and for the economy?
Russia Business Watch recently printed two interesting articles on this topic. The first, by Michael McFaul, an associate professor at Stanford University, argues that "Putin has consolidated a regime ill-fitted for Russia's 21st century... Failure to develop institutions to support both economic and political competition will push Russia towards the periphery of the world." The second, by Sergei Markov, an assistant professor at MGIMO (one of Russia's top schools for political science), argues that "Russia is moving along the path to democratic development, albeit slowly and in a zigzag manner. However, if one compares Russia today with its Soviet past, this development toward freedom and democracy is not slow, but fast."
On September 1st, 2004, masked terrorists entered School Number One in Belan, North Ossetia, Russia and took 1200 children, teachers, administrators, and other people hostage. By the end of the crises, 344 civilians, including 186 children, would be dead. It was the worst terrorist act Russia has ever experienced.
On September 11th, 2001, terrorists hijacked four commercial airliners in different locations on the American east coast. Two were flown into the Twin Towers of the World Trade Center, a third struck the Pentagon, and the fourth crashed in a Pennsylvania forest. Some 3000 people, citizens of various countries, were killed. It was the worst terrorist act America has ever experienced.
Russian Corner: Tax Advice from Alinga Consulting Group
Alinga Consulting Group, a USRCCNE member, recently contributed the article "Corporate Profit Tax" toward a new project sponsored by the American Chamber of Commerce in Russia. The project, entitled "Doing Business in Russia" and available from the main menu of the Chamber's home page, seeks to provide a wide range of information on the concerns of doing business in Russia faced by foreign businesspeople.
Olga Dmitraschenko is a sixteen-year-old native Muscovite and incoming freshman to Moscow State University, one of Russia's most respected educational institutions. She served an internship with The School of Russian and Asian Studies during the summer of 2006. Impressed with her intelligence, creativity, and professionalism, she was asked to stay on with the company part time as a contributing writer on issues of language and culture. In that capacity, she will be the primary author "Olga's Blog," a new series of interactive Russian lessons. This first instalment discusses high school in modern Russia. Learn about today's Russia in today's Russian!