Editor’s Note: Over the last few weeks a multitude of readers have asked about how to go about investing in Russia. We tasked our in-house financial expert Paul Goncharoff — who has been doing business in Russia since before the internet was invented — to provide our readers with a short beginner’s guide. Paul Goncharoff is Chairman, Disciplinary Committee, National Association of Corporate Directors, Russia.
Lately, I have seen a noticeable increase in the number of non-Russians registering as so-called “tax residents” in the Russian Federation. This is by no means a tsunami of people, but it is increasing mainly due to opportunity and comparatively lower rates on personal income taxes. Additionally, it allows the resident unfettered access to bank accounts and to trade directly on the exchanges in Russia. Who can say, but some feel it may evolve to be a reliable “offshore” locale with privileges. As for investing in Russia, the Moscow Exchange, or MOEX whose website is in English has clear, informative and complete content for those who want to understand Russian trading opportunities. The MOEX is a good place to go to for detailed information about what is trading, from stocks, indexes, and commodities to forex.
If you are not a foreign resident in Russia then you can choose to buy exchange-traded funds (ETFs), American Depository Receipts (ADRs), and Global Depository Receipts (GDRs). These trade on U.S., London, and other exchanges. The advantage is easy access through any local broker you may be using. Good complete information on ADRs can be found here, on GDRs, and as far as top rated Russia ETF’s then have a look at.
There are several international brokerages offering direct or indirect access to trading on…