Name: Urnisha Ganguly

Sec: D
Roll No.: 25182
Sub: International Business
Assignment II

Political Risks:

 Political system is not evolving, some key political figures represent the
interest of the state.
 The government policies sometimes restrict operations for companies on
trading and investment.
 The problem of corruption.

Legal Risks:

 80% of the cargo that crosses the Russian border is examined by the
customs officers
 The Russian legislation makes a clear distinction between a
representative office and a branch.
 There are several employee taxes that must be paid, regardless of the
employee’s country of origin.

Economic Risks:

 Russia is heading toward a recession, with negative growth in most

sectors in 2020
 Russian banks entered the crisis with reasonable capital buffers and
comfortable liquidity.
 Escalated competition between Russian businesses and political elites as
they seek to grab limited resources, from business assets to state funding,
which could severely impact on foreign business partners.
 Lack of structural reforms and ageing of the population.