April 2018’s Political Risk Advisory Briefing from KCS Group Europe focuses on Russia. The rating for Russia, based on selected Grey Area Dynamics is 5 – High
Corruption and lack of transparency represent the biggest threats for investors in Russia. Although the country has many resources to offer as well as a growing economy, the risk rating assigned to the country is 5 – High due to the widespread corruption embedded in the business culture and the lack of transparency. Even though there are signs indicating that the Government is fighting corruption these are mainly intended to win the public rather than actually solving a problem. Investors should therefore evaluate carefully prior deciding to invest in Russia. The expected returns are high but so too are the risks associated to them.
On the political side, Putin has secured another six-years term; he will consolidate his power even more and he will continue along his expansionist line aimed at establishing Russia’s superiority. The cyber capabilities represent a threat to other governments, especially in terms of cyber espionage and the establishment of troll farms directing propaganda. This is Russia’s strong point and it will likely develop even more.
- – Politics
- – Economy
- – Corruption
- – Business Environment
- – Foreign Affairs
- – Cyber Threat