In light of the escalating geopolitical tensions and sweeping sanctions imposed by the United States and its allies, business travel to Russia has become increasingly complex and challenging. The ongoing conflict between Russia and Ukraine has significantly altered the landscape for U.S. businesses and individuals, as well as those from other Western countries, considering travel to or conducting business with Russia. Travel Business Assistance (TBA) is here to help you navigate these complexities and ensure that your business activities are compliant and well-informed. Here’s what you need to know about the current situation and how TBA can assist.

That said in all honesty it is probably best to avoid business with Russia and Ukraine for the time being as it is always better to do business in peaceful areas and without the risk of getting involved with money laundering or people or organizations that have been internationally sanctioned.

Travel Advisory

The U.S. State Department has issued a travel advisory urging U.S. citizens to reconsider travel to Russia due to the risks associated with the current geopolitical climate. The U.S. Embassy in Moscow has significantly limited capacity to provide routine or emergency services to U.S. citizens, making it imperative for travelers to stay updated through the U.S. Embassy’s website.

U.S. Embassy – Moscow Contact Information:

• Address: 8 Bolshoy Devyatinsky Pereulok, Moscow 121099
• Email: moscowacs@state.gov
• After-hours (emergencies): Tel: +7 (495) 728 5025/728 5000

Appointments are required for all services, and no walk-ins are accepted.

Visa Requirements

The Russian government mandates that business travelers obtain the appropriate category of visa for their activities. Visas and residence permits must be renewed periodically, often requiring the assistance of local legal counsel. U.S. citizens have faced detention and expulsion for conducting business on tourist visas, underscoring the importance of applying for the correct visa type.

Travelers staying in Russia for more than seven business days must register with local authorities. For up-to-date information on visa requirements and entry procedures, consult the U.S. State Department’s Bureau of Consular Affairs.

Currency and Financial Transactions

The local currency in Russia is the ruble. Due to the sanctions on the Russian banking sector, U.S. credit and debit cards no longer function in Russia, and electronic fund transfers from the United States are highly restricted. Travelers should plan accordingly and explore alternative means of managing finances during their stay.

Transportation

The availability of commercial flights to and from Russia has been drastically reduced. Many airlines have suspended services, and numerous countries have closed their airspace to Russian airlines. Within Russia, cities like Moscow and St. Petersburg boast extensive and efficient public transit systems. For taxis, it is recommended to use well-marked vehicles to avoid risks such as robbery or extortion.

Language

Russian is the official language, and proficiency in Russian can be beneficial for navigating daily activities and business dealings.

Safety and Health

U.S. travelers may face harassment and arbitrary enforcement of local laws by Russian security officials. The State Department advises a heightened awareness of these risks, as the U.S. Embassy’s capacity to assist is limited.

Health Considerations:

• Private medical care in major cities often meets Western standards, but services are typically below these standards in rural areas.
• The sanctions have affected the availability of medicines and medical devices, potentially leading to shortages.
• Private medical facilities require payment upfront and may not accept U.S. insurance as a guarantee.

Tourist Considerations

Despite the complex geopolitical situation, tourists are generally welcome in Russia and can be safe if they follow the laws and avoid dangerous areas. However, there are several important factors to consider:

Legal and Safety Issues:

• Medicine: U.S. travelers should research how their medical treatments or medications are handled in Russia. Some medications legal in the U.S. may be illegal in Russia, potentially leading to serious legal issues.
• LGBTQ+ Issues: While being homosexual is not illegal in Russia, public discussions and expressions of LGBTQ+ identity are restricted. Travelers should be discreet about their sexual orientation to avoid legal trouble.
• Political Topics: Criticism of the Russian government, military, or the ongoing conflict in Ukraine can lead to legal consequences. Travelers are advised to avoid political discussions and focus on tourism.

Money and Financial Transactions:

• Due to sanctions, U.S. credit and debit cards do not work in Russia. Travelers should bring enough cash for their trip and exchange it locally. Be aware of fluctuating exchange rates and the risk of carrying large amounts of cash. Opening a local bank account upon arrival might be advisable for longer stays.

Cultural Sensitivity:

• Russia is a multicultural, multi-religious, and multiethnic country. Travelers should respect local customs and traditions, which can vary significantly by region. For example, cultural norms in Moscow or St. Petersburg differ from those in Grozny or Chechnya.

Usage of Drones:

• Using drones in Russia is highly regulated and can result in fines or confiscation if used in prohibited areas. Travelers should research local regulations before using drones.

Implications for Doing Business with Russia

The sanctions imposed by the U.S. and its allies target a wide array of Russian entities and industries. Businesses must navigate a complex regulatory environment that includes export controls, import prohibitions, and financial restrictions. The latest sanctions have also focused on companies in China, Turkey, and the UAE that facilitate Russia’s access to critical technology and equipment.

Key Points to Consider:

• Conduct thorough due diligence to understand the full scope of sanctions and export controls.
• Be aware of the legal and reputational risks associated with doing business with Russian entities.
• Ensure compliance with all relevant U.S. regulations to avoid severe civil and criminal penalties.

How Travel Business Assistance Can Help

Travel Business Assistance is not advocating for doing business in Russia. We work with every country equally to make market entry and travel as simple as possible. In doing so, we strictly adhere to all applicable rules and sanctions.

We would actually advocate that this is not the best time to do business with Russia or even Ukraine.  To avoid complications Travel Business Assistance would turn down the majority of business looking to work with Russia at this time.  We would take on Travel Business Assistance to Russia in very limited circumstances that we would need to review on a case by case basis.

Navigating these complexities can be daunting, but if TBA were to take on any Travel Business Assistance to Russia we would work through each of the steps below with our client.

1. Comprehensive Due Diligence:

• TBA offers thorough due diligence services to help you understand and mitigate the risks associated with doing business in Russia. This includes compliance with sanctions, export controls, and import restrictions.

2. Visa and Legal Assistance:

• Our experts can guide you through the complicated visa application process and ensure you obtain the correct visa type for your business activities. We also provide legal assistance for renewing work and residence permits.

3. Financial Planning and Management:

• We help you navigate the financial restrictions by exploring alternative means of managing your finances in Russia. This includes advice on handling local currency and managing transactions under the current sanctions regime.

4. Travel Arrangements:

• TBA assists with booking flights and arranging transportation within Russia, ensuring that you use safe and reliable options. We also provide updates on the availability of commercial flights and travel advisories.

5. Language and Communication:

• We offer language support services to help you communicate effectively in Russian, enhancing your ability to conduct business smoothly.

6. Safety and Health Advisory:

• TBA provides safety briefings and health advisories to ensure you are prepared for the potential risks. We also assist with finding reputable medical facilities and understanding local health care requirements.

7. Strategic Planning:

• We help you develop strategic plans to navigate the complex regulatory environment, ensuring your business operations remain compliant with U.S. and international laws.

8. Crisis Management:

• In case of emergencies, TBA provides crisis management services, including assistance with legal issues, evacuation planning, and coordination with local authorities and the U.S. Embassy.

Conclusion

Business travel to Russia and engaging in business activities with Russian entities present significant challenges and risks in the current geopolitical environment. TBA is committed to helping you navigate these complexities with comprehensive support and expert guidance. By leveraging our services, you can ensure your business operations are compliant, efficient, and well-prepared for the evolving landscape. Stay safe, informed, and compliant to ensure your business endeavors in Russia are as secure and successful as possible.

For the latest updates and detailed information, consult the U.S. State Department and the U.S. Embassy in Moscow. Contact TBA today to learn more about how we can assist you with your business travel and operations in Russia.