1. How strong is the the Russian currency?

From http://en.wikipedia.org/wiki/Economy_of_Russia
"An important symptom of Russian macroeconomic instability has been severe fluctuations in the exchange rate of the ruble.
Russia's ruble has lost one third of its value since September while the stock markets shed 70 percent off their May highs. The credit crunch in Russia has also been made worse by lower prices for Russia's chief export commodities, oil and gas. The IMF predicts oil prices - the backbone of the Russian economy - to rebound in the second half of the year."

2. How does Russian exports look?

From internationaltrade.suite101.com:

"Here are seven little-known insights that may well represent storm clouds on the Russian trade horizon.

Economic growth slowed to 5.9% in 2005 and, while the underpriced Russian currency is fuelling increased exports, Russia's inflation rate remains high.
China being the modest exception, fast-growing economies like Brazil and India are not major customers for Russian exports that totalled some US$250 billion in 2005. Based on 2004 statistics, leading countries for Russian exports are the Netherlands (9.1%), Germany (8%), Ukraine (6.4%), Italy (6.2%), China (6%), United States (5%), Switzerland (4.7%) and Turkey (4.3%).
Led by consumer staples (meat), commodities (sugar), machinery and semi-finished metal products, Russian imports are long-term essentials that grew to an estimated $125 billion in 2005. Top importers into Russia include Germany (15.3%), Ukraine (8.8%), China (6.9%), Japan (5.7%), Kazakhstan (5%), United States (4.6%), Italy (4.6%) and France (4.4%).
Russian imports of machinery and metal products reveals an underlying trade weakness. Specifically, Russia's old and worn manufacturing base must be modernized or replaced to compete in the global economy.
Russia's banking system is weak and does not support the needs of small and medium-sized businesses. Some Russian banks are owned by elitist power barons who often use customer deposits to lend to their own companies, leaving little capital available for smaller-sized entrepreneurs.
Both foreign and Russian companies are handicapped by import barriers set by local specialist firms like the Russia Import Company that unfairly control the flow of goods and services into Russia.
After the breakup of the USSR, Russia's population growth has declined by over 500,000 to 143 million people. This fact brings into question whether the Russian economy can grow fast enough to compete at the highest levels of the global economy. "

3. What is the growth opportunities in Russia?

From http://rbth.ru/articles/2008/12/15/151208_investment.html:

"There are a number of risks involved with investing in Russia. Primarily, obtaining access to reliable facts about Russian markets is extremely difficult and, at the same time, strategically important. Therefore, getting guidance is absolutely necessary for companies and foreign investors looking for success in the developing Russian markets.

Frost & Sullivan's Director Beatrice Shepherd states, "The unfavourable press on doing business in Russia overshadows this country true potential. There is limited objectivity and willingness, coming from Western enterprises, to accept the differences of working with a different culture and business environment. At Frost & Sullivan we have been working on projects in Russia for global companies from the US, Europe and Asia but also for Russian companies. This gives us a unique perspective on this country, a truly objective view."

In 2008, Russia's Real GDP growth significantly outperformed average EU and global growth rates. Since 1999, Russia's Real GDP growth is 83%. "Having demonstrated incredible economic growth, Russia is now comparable to other European countries, with greater access to consumer goods and services," continues Beatrice Shepherd. "Perhaps the biggest draw to Russia is the fact that its markets are far from saturated, predicting future growth, yet underdeveloped, making it a prime investment region. Another compelling reason to invest in Russia is the double-digit increase in disposable income. Currently, Russian households have experienced a 163 percent increase in disposable income, which is funding the expansion in financial, retail, healthcare, media segments. Russia has a large population, with increasingly higher purchasing power. The combination of unsaturated markets and a growing percentage of disposable income provides a significant incentive for potential companies to enter this growing market."

4. Has corruption been cleaned up enough for foreign investment to increase?

From http://www.ethicalcorp.com/content.asp?ContentID=6215

"With Russia ratifying the Council of Europe's Criminal Law Convention on Corruption in 2006 and making a public commitment to implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions there is clearly some momentum building in Russia in the area.

ECI's report found business generally supports this shift and are increasingly optimistic about improvements to probity in the country.

Research found that existing legislation is both complex and unclear on how it relates specifically to business anti-corruption.

Russian law has some major omissions with regard to corruption both at higher levels in the country and customs officials in particular.

The new report found that selective and variable enforcement by officials is a common method of anticipating solicited bribes.

Lavish entertainment in business and employing friends and family in companies is also a major obstacle for foreign investors to consider.

Among other findings, the report considers how kickbacks in contracts are often structured, how local financial 'donations' to politicians are encouraged, and just how time consuming and costly fighting bribery attempts in local courts can be.

The role of agents, red tape challenges and attempted forced sales of companies are also well covered in the new report.

While many companies are reluctant to discuss anti-corruption for fear of either closer scrutiny or being tainted by association with the subject, some firms interviewed for the report offered valuable insights for foreign companies operating in Russia. "