Since the collapse of Russia’s relationship with the West over Ukraine, there has been a fear factor associated with doing business in Russia. However, the largest country in the world has been continuing its transformation into a modern economy and the investment opportunities are blooming. Russia overcame being completely out of the map in terms of foreign trade and investment, and became a very attractive destination for investors and entrepreneurs. As business thrives, so do important services that help investors remain safe, such as Russia background check investigations and due diligence.

Russia is best known among international investors for its energy industry, as a leading exporter of oil and natural gas. The country is rich in natural resources and of the world’s hottest commodity markets. But those investing in Russia are also watching its growing information technology (IT) and telecommunications sectors. In particular, the country’s software industry is one of the fastest growing markets in the world. Another big opportunity comes from a growing middle class that is creating new markets and opening new opportunities for business.

However, there are still many risks and concerns involved in doing business in Russia. Corruption cases in this country have been widely covered by the media. It is also famous for giving birth to the biggest cybercrime networks in the world and since many business affairs are taken care of using the Internet, many people still feel skeptical about doing business here. These factors combined make Russia a high fraud risk nation despite the warnings from authorities, media and Russian private investigators.

Know the risks and take precaution

Risk is not a limitation if you understand how to manage and reduce the chances of being victim to fraud. Local Russian investigators, who know the culture and speak the language, will be very helpful in the process of obtaining reliable evidence and reducing risk. A local investigator can also give you some tips on how to start and maintain a good business relationship based on information and not on intuition.  Working with a professional to get clear evidence is critical.

Background check investigations, often called company verifications, separate failure from a successful investment. A professional investigation will provide the information you need to decide whether your Russian business partner or the company you are investing in are trustworthy. Having the right information may save an investor from big financial loss. Information is also key to finding new opportunities and helps you recognize whether a potential business merger or any new deal make sense and benefit your estate.  Don’t send money to a criminal or fake company.

It is also important to keep in mind that investigating on your own, without the necessary tools and experience,  can be as costly as not investigating at all. Hire experienced people who can go further than the web, who can find hidden data that companies may not be willing to share and who can uncover the truth. Corporate information that can be found online or in public data bases might not be enough or reliable, especially in Russia.  Remember to hire a professional firm with investigators on the ground in Moscow or St. Petersburg who speak the language, have the training and resources to gather evidence.

Prevention never hurts, especially when it has to do with your business and investment wellbeing. Contact us for a free quote if you are considering making an investment in Russia!

C. Wright
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