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RUSSIA

Compiled from the October 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Russian Federation


PROFILE

Geography

Area: 17 million sq. km. (6.5 million sq. mi.); about 1.8 times the size of the United States.

Cities: Capital—Moscow (pop. 8.3 million). Other cities—St. Petersburg (4.6 million), Novosibirsk (1.4 million), Nizhniy Novgorod (1.3 million).

Terrain: Broad plain with low hills west of Urals; vast coniferous forest and tundra in Siberia; uplands and mountains (Caucasus range) along southern borders.

Climate: Northern continental, from subarctic to subtropical.

People

Nationality: Noun and adjective—Russian(s).

Population: (2004 est.) 144 million.

Annual growth rate: (2004 est.) −0.45%.

Ethnic groups: Russian 82%, Tatar 4%, Ukrainian 3%, other 11%.

Religions: Russian Orthodox, Islam, Judaism, Roman Catholicism, Protestant, Buddhist, other.

Language: Russian (official); more than 140 other languages and dialects.

Education: (total pop.) Literacy—99%.

Health: Life expectancy (2004 est.)—60 yrs. men, 73 yrs. women.

Work force: (72 million) Production and economic services—84%; government—16%.

Government

Type: Federation.

Independence: August 24, 1991.

Constitution: December 12, 1993.

Branches: Executive—president, prime minister (chairman of the government). Legislative—Federal Assembly (Federation Council, State Duma). Judicial—Constitutional Court, Supreme Court, Supreme Court of Arbitration, Office of Procurator General.

Political parties: Shifting. The December 2003 Duma elections were contested by United Russia, the Communist Party (KPRF), the Liberal Democratic Party (LDPR), the Homeland (Rodina) bloc, the Union of Right Forces (SPS) and Yabloko. SPS and Yabloko, parties favoring Western-style reforms, failed to clear the 5% threshold to enter the Duma as a party.

Administrative subdivisions: 21 autonomous republics and 68 autonomous territories and regions.

Suffrage: Universal at 18 years.

Economy

GDP: 13.255 trillion rubles or U.S. $460 billion in 2003. (Purchasing power parity estimated at __BODY__.29 trillion in 2003).

Growth rate: (2003) 7.3%.

Per capita GDP: $2,320 in 2003 (purchasing power parity estimated at $8,900 in 2003).

Natural resources: Petroleum, natural gas, timber, furs, precious and nonferrous metals.

Agriculture: Products—Grain, sugar beets, sunflower seeds, meat, dairy products.

Industry: Types—Complete range of manufactures: automobiles, trucks, trains, agricultural equipment, advanced aircraft, aerospace, machine and equipment products; mining and extractive industry; medical and scientific instruments; construction equipment.

Trade: (2003) Exports—$134.4 billion: petroleum and petroleum products, natural gas, woods and wood products, metals, chemicals. Major markets—EU, CIS, China, Japan. Imports—$74.8 billion: machinery and equipment, chemicals, consumer goods, medicines, meat, sugar, semi-finished metal products. Major partners—EU, U.S., NIS, Japan, China. U.S. exports—$2.45 billion. Principal U.S. exports (2003)—oil/gas equipment, poultry, inorganic chemicals, tobacco, aircraft, medical equipment, autos/parts. U.S. imports (customs value)—$8.62 billion. Principal U.S. imports (2003)—oil, aluminum, chemicals, platinum, iron/steel, fish and crustaceans, knit apparel, nickel, wood, and copper.


PEOPLE

Most of the roughly 145 million Russians derive from the Eastern Slavic family of peoples, whose original homeland was probably present-day Poland. Russian is the official language of Russia and is one of the six official languages of the United Nations. Russian has also been the language of such giants of world literature as Pushkin, Tolstoy, Dostoevsky, Chekov, Pasternak and Solzhenitsyn.

Russia's educational system has produced nearly 100% literacy. About 3 million students attend Russia's 519 institutions of higher education and 48 universities. As a result of great emphasis on science and technology in education, Russian medical, mathematical, scientific, and space and aviation research is generally of a high order. The number of doctors in relation to the population is high by American standards, although medical care in Russia, even in major cities, is far below Western standards. The unraveling of the Soviet state in its last decades and the physical and psychological traumas of transition during the 1990s resulted in a steady decline in the health of the Russian people. Poor nutrition among tens of millions of poorly nourished Russians produced high rates of chronic illnesses and stunted development in children. Widespread alcoholism and drug addiction among men contributed to the world's largest gap between male and female life expectancy. In 2000, life expectancy at birth was 62 for men and 73 for women. The large annual excess of deaths over births may cut Russia's population by several tens of millions over the next fifty years.

The Russian labor force is undergoing tremendous changes. Although well educated and skilled, it is largely mismatched to the rapidly changing needs of the Russian economy. Millions of Russian workers are underemployed. Unemployment is highest among women and young people. Many Russian workers compensate by working other part-time jobs. Following the 1991 collapse of the Soviet Union and the economic dislocation it engendered, the standard of living fell dramatically. The standard of living has been on the rise since 1999, but almost one-third of the population still does not meet the minimum subsistence level for income.

Moscow is Russia's largest city (population 8.3 million) and its capital. Moscow is also increasingly important as an economic and business center; it has become Russia's principal magnet for foreign investment and business presence. Its cultural tradition is rich, and there are many museums devoted to art, literature, music, dance, history, and science, as well as hundreds of churches and dozens of notable cathedrals.

The second-largest city in Russia is St. Petersburg, which was established by Peter the Great in 1703 to be the capital of the Russian Empire as part of his Western-looking reforms. The city was called Petro-grad during World War I and Leningrad after 1924. In 1991, as the result of a city referendum, it was renamed St. Petersburg. Under the tsars, the city was Russia's cultural, intellectual, commercial, financial, and industrial center. After Lenin moved the capital back to Moscow in 1918, the city's political significance declined, but it remained a cultural, scientific, and military-industrial center. The Hermitage, formerly the Winter Palace of the tsars, is one of the world's great fine arts museums.

Russia has an area of about 17 million square kilometers (6.5 million sq. mi.); in geographic terms, this makes Russia the largest country in the world by more than 2.5 million square miles. But with a population density of about 22 persons per square mile (9 per sq. km.), it is sparsely populated, and most of its residents live in urban areas.


HISTORY

Although human experience on the territory of present-day Russia dates back to Paleolithic times, the first lineal predecessor of the modern Russian state was founded in 862. The political entity known as Kievan Rus was established in Novgorod in 962 and lasted until the 12th century. In the 10th century, Christianity became the state religion under Vladimir, who adopted Greek Orthodox rites. Consequently, Byzantine culture predominated, as is evident in much of Russia's architectural, musical, and artistic heritage. Over the next centuries, various invaders assaulted the Kievan state and, finally, Mongols under Batu Khan destroyed the main population centers except for Novgorod and Pskov and prevailed over the region until 1480.

In the post-Mongol period, Muscovy gradually became the dominant principality and was able, through diplomacy and conquest, to establish suzerainty over European Russia. Ivan III (1462-1505) referred to his empire as "the Third Rome" and considered it heir to the Byzantine tradition. Ivan IV (the Terrible) (1530-1584) was the first Russian ruler to call himself tsar. He pushed Russian eastward with his conquests but his later reign was marked by the cruelty that earned him his familiar epithet. He was succeeded by Boris Godunov, whose reign commenced the so-called Time of Troubles. Relative stability was achieved when Michael Romanov established the dynasty that bore his name in 1613.

During the reign of Peter the Great (1689-1725), modernization and European influences spread in Russia. Peter created Western-style military forces, subordinated the Russian Orthodox Church hierarchy to the tsar, reformed the entire governmental structure, and established the beginnings of a Western-style education system. He moved the capital westward from Moscow to St. Petersburg, his newly-established city on the Baltic. His introduction of European customs generated nationalistic resentments in society and spawned the philosophical rivalry between "Westernizers" and nationalistic "Slavophiles" that remains a key dynamic of current Russian social and political thought.

Catherine the Great continued Peter's expansionist policies and established Russia as a European power. During her reign (1762-96), power was centralized in the monarchy, and administrative reforms concentrated great wealth and privilege in the hands of the Russian nobility. Catherine was also known as an enthusiastic patron of art, literature and education and for her correspondence with Voltaire and other Enlightenment figures.

Alexander I (1801-1825) began his reign as a reformer, but after defeating Napoleon's 1812 attempt to conquer Russia, he became much more conservative and rolled back many of his early reforms. During this era, Russia gained control of Georgia and much of the Caucasus. Throughout the 19th century, the Russian Government sought to suppress repeated attempts at reform from within, particularly under the reign of Nicholas I (1825-1855). Its economy failed to compete with those of Western countries. Russian cities were growing without an industrial base to generate employment, although emancipation of the serfs in 1861 foreshadowed urbanization and rapid industrialization late in the century. At the same time, Russia expanded into the rest of the Caucasus, Central Asia and across Siberia. The port of Vladivostok was opened on the Pacific coast in 1860. The Trans-Siberian Railroad opened vast frontiers to development late in the century. In the 19th century, Russian culture flourished as Russian artists made significant contributions to world literature, visual arts, dance, and music. The names of Dostoyevsky, Tolstoy, Gogal, Repin, and Tchaikovsky became known to the world.

Alexander II (1855-1881), a relatively liberal tsar, emancipated the serfs. His 1881 assassination, however, prompted the reactionary rule of Alexander III (1881-1894). At the turn of the century, imperial decline became evident. Russia was defeated in the unpopular Russo-Japanese war in 1905. The Russian Revolution of 1905 forced Tsar Nicholas II (1894-1917) to grant a constitution and introduce limited democratic reforms. The government suppressed opposition and manipulated popular anger into anti-Semitic pogroms. Attempts at economic change, such as land reform, were incomplete.

1917 Revolution and the U.S.S.R.

The ruinous effects of World War I, combined with internal pressures, sparked the March 1917 uprising that led Tsar Nicholas II to abdicate the throne. A provisional government came to power, headed by Aleksandr Kerenskiy. On November 7, 1917, the Bolshevik Party, led by Vladimir Lenin, seized control and established the Russian Soviet Federated Socialist Republic. Civil war broke out in 1918 between Lenin's "Red" army and various "White" forces and lasted until 1920, when, despite foreign interventions, the Bolsheviks triumphed. After the Red army conquered Ukraine, Belorussia, Azerbaijan, Georgia, and Armenia, a new nation, the Union of Soviet Socialist Republics (U.S.S.R.), was formed in 1922.

First among its political figures was Lenin, leader of the Bolshevik Party and head of the first Soviet Government, who died in 1924. In the late 1920s, Josef Stalin emerged as General Secretary of the Communist Party of the Soviet Union (CPSU) amidst intraparty rivalries; he maintained complete control over Soviet domestic and international policy until his death in 1953. In the 1930s, Stalin oversaw the forced collectivization of tens of millions of its citizens under state agricultural and industrial enterprises. Millions died in the process. Millions more died in political purges, the vast penal and labor system, or in state-created famines. During World War II, 20 million Soviet citizens died in the successful effort to defeat Fascism. After the war, the USSR became one of the Permanent Members of the UN Security Council. In 1949, the U.S.S.R. developed its own nuclear arsenal.

Stalin's successor, Nikita Khrushchev, served as Communist Party leader until he was ousted in 1964. Aleksey Kosygin became Chairman of the Council of Ministers, and Leonid Brezhnev was made First Secretary of the CPSU Central Committee in 1964. But in 1971, Brezhnev rose to become "first among equals" in a collective leadership. Brezhnev died in 1982 and was succeeded by Yuriy Andropov (1982-84) and Konstantin Chernenko (1984-85). In 1985, Mikhail Gorbachev became the next (and last) General Secretary of the CPSU. Gorbachev introduced policies of perestroika (restructuring) and glasnost (openness). But his efforts to reform the creaky Communist system from within failed. The people of the Soviet Union were not content with half-freedoms granted by Moscow; they demanded more and the system collapsed. Boris Yeltsin was elected the first president of the Russian Federation in 1991. Russia, Ukraine and Belarus formed the Commonwealth of Independent States in December 1991. Gorbachev resigned as Soviet President on December 25, 1991. Eleven days later, the U.S.S.R. was formally dissolved.

The Russian Federation

After the December 1991 dissolution of the Soviet Union, the Russian Federation became its largest successor state, inheriting its permanent seat on the UN Security Council, as well as the bulk of its foreign assets and debt. By the fall of 1993, politics in Russia reached a stalemate between President Yeltsin and the parliament. The parliament had succeeded in blocking, overturning, or ignoring the President's initiatives on drafting a new constitution, conducting new elections, and making further progress on democratic and economic reforms.

In a dramatic speech in September 1993, President Yeltsin dissolved the Russian parliament and called for new national elections and a new constitution. The standoff between the executive branch and opponents in the legislature turned violent in October after supporters of the parliament tried to instigate an armed insurrection. Yeltsin ordered the army to respond with force to capture the parliament building and crush the insurrection. In December 1993, voters elected a new parliament and approved a new constitution that had been drafted by the Yeltsin government. Yeltsin remained the dominant political figure, although a broad array of parties, including ultra-nationalists, liberals, agrarians, and communists, had substantial representation in the parliament and competed actively in elections at all levels of government.

In late 1994, the Russian security forces launched a brutal operation in the Republic of Chechnya against rebels who were intent on separation from Russia. Along with their opponents, Russian forces committed numerous violations of human rights. The protracted conflict, which received close scrutiny in the Russian media, raised serious human rights and humanitarian concerns abroad as well as within Russia. After numerous unsuccessful attempts to institute a cease-fire, in August 1996 the Russian and Chechen authorities negotiated a settlement that resulted in a complete withdrawal of Russian troops and the holding of elections in January 1997. A peace treaty was concluded in May 1997. Following a number of terrorist incidents blamed on Chechen separatists, the Russian government launched a new military campaign into Chechnya. By spring 2000, federal forces claimed control over Chechen territory, but fighting continues as rebel fighters regularly ambush Russian forces in the region. Throughout 2002 and 2003, the ability of Chechen separatists to battle the Russian forces waned but they claimed responsibility for numerous terrorist acts.

On December 31, 1999 Boris Yeltsin resigned, and Vladimir Putin was named Acting President. In March 2000, he won election in his own right as Russia's second president with 53% of the vote. Putin moved quickly to reassert Moscow's control over the regions, whose governors had confidently ignored edicts from Boris Yeltsin. He sent his own "plenipotentiary representatives" (commonly called 'polpred' in Russian) to ensure that Moscow's policies were followed in recalcitrant regions and republics. He won enactment of liberal economic reforms that rescued a faltering economy and stopped a spiral of hyperinflation. Putin achieved wide popularity by stabilizing the government, especially in marked contrast to what many Russians saw as the chaos of the latter Yeltsin years. The economy grew, in part because Putin was able to achieve reforms in banking, labor, and private property. The economy also benefited from rising oil prices. During this time, Russia also moved closer to the U.S., especially after the terror attacks of September 11, 2001. In 2002, the NATO-Russia Council was established, giving Russia a voice in NATO discussions.


GOVERNMENT AND POLITICAL CONDITIONS

In the political system established by the 1993 constitution, the president wields considerable executive power. There is no vice president, and the legislative branch is far weaker than the executive. The bicameral legislature consists of the lower house (State Duma) and the upper house (the Federation Council). The president nominates the highest state officials, including the prime minister, who must be approved by the Duma. The president can pass decrees without consent from the Duma. He also is head of the armed forces and of the National Security Council.

Duma elections were held most recently on December 7, 2003, and presidential elections on March 14, 2004. The pro-government party, United Russia, won close to half of the seats in the Duma. Combined with its allies, United Russia commands a two-thirds majority. The OSCE judged the Duma elections as failing to meet international standards for fairness, due largely to extensive slanted media bias in the campaign. Vladimir Putin was reelected to second four-year term with 71% of the vote in March 2004. The Russian constitution does not allow presidents to serve more than two consecutive terms.

Russia is a federation, but the precise distribution of powers between the central government and the regional and local authorities is still evolving. The Russian Federation consists of 89 regional administrative units, including two federal cities, Moscow and St. Petersburg. The constitution explicitly defines the federal government's exclusive powers, but it also describes most key regional issues as the joint responsibility of the federal government and the regional administrative units. In 2000, President Putin grouped the regions into seven federal districts, with presidential appointees established in Moscow and six provincial capitals. In March 2004, the Constitution was amended to permit the merger of two of the 89 region administrative units, effective in 2005; further consolidation is expected.

Judicial System

The Russian judicial system consists of the Constitutional Court, courts of general jurisdiction, military courts, and arbitrage courts (which hear commercial disputes). The Constitutional Court of the Russian Federation is a court of limited subject matter jurisdiction. The 1993 constitution empowers the Constitutional Court to arbitrate disputes between the executive and legislative branches and between Moscow and the regional and local governments. The court also is authorized to rule on violations of constitutional rights, to examine appeals from various bodies, and to participate in impeachment proceedings against the president. The July 1994 Law on the Constitutional Court prohibits the court from examining cases on its own initiative and limits the scope of issues the court can hear. The system of general jurisdiction courts includes the Supreme Court of the Russian Federation, regional level courts, district level courts and justices of the peace.

The Duma passed a Criminal Procedure Code and other judicial reforms during its 2001 session. These reforms help make the Russian judicial system more compatible with its Western counterparts and are seen by most as an accomplishment in human rights. The reforms have reintroduced jury trials in certain criminal cases and created a more adversarial system of criminal trials that protect the rights of defendants more adequately. In 2002, the introduction of the new code led to significant reductions in time spent in detention for new detainees, and the number of suspects placed in pretrial detention declined by 30%. Another significant advance in the new Code is the transfer from the Procuracy to the courts of the authority to issue search and arrest warrants.

In spite of the general tendency to increase judicial independence (for example, by recent considerable salary raise to judges), many judges still see their role not as of impartial and independent arbiters, but as of government officials protecting state interests.

Human Rights

Russia's human rights record remains uneven and has worsened in some areas in recent years. Despite significant improvements in conditions following the end of the Soviet Union, problem areas remain. In particular, the Russian Government's military policy in Chechnya is a cause for international concern. Although the government has made progress in recognizing the legitimacy of international human rights standards, the institutionalization of procedures to safeguard these rights has lagged. There are, however, indications that the law is becoming an increasingly important tool for those seeking to protect human rights.

The judiciary is often subject to manipulation by political authorities and is plagued by large case backlogs and trial delays. Lengthy pretrial detention remains a serious problem. Russia has one of the highest prison population rates in the world, at 685 per 100,000. There are credible reports of beating and torture of inmates and detainees by law enforcement and correctional officials. Prison conditions fall well below international standards. In 2001, President Putin pronounced a moratorium on the death penalty. There are reports that the Russian Government might still be violating promises they made upon entering the European Council, especially in terms of prison control and conditions.

In Chechnya, government forces have killed numerous civilians through the use of indiscriminate force. There have been credible allegations of violations of international human rights and humanitarian law committed by Russian forces. Chechen groups also have committed abuses as well as acts of terrorism. Human rights groups have criticized Russian officials concerning cases of Chechens disappearing while in custody. Chechen rebels have similarly been responsible for politically motivated disappearances. Russian authorities have introduced some improvements, including better access to complaint mechanisms, the formal opening of investigations in most cases, and the introduction of two decrees requiring the presence of civilian investigators and other nonmilitary personnel during all large-scale military operations and targeted search and seizure operations. Human rights groups welcome these changes but claim that most abuses remain uninvestigated and unpunished.

The Russian constitution provides for freedom of religion and the equality of all religions before the law as well as the separation of church and state. Although Jews and Muslims continue to encounter prejudice and societal discrimination, they have not been inhibited by the government in the free practice of their religion. High-ranking federal officials have condemned anti-Semitic hate crimes, but law enforcement bodies have not effectively prosecuted those responsible. The influx of foreign missionaries has led to pressure by groups in Russia, specifically nationalists and the Russian Orthodox Church, to limit the activities of these "nontraditional" religious groups. In response, the Duma passed a restrictive and potentially discriminatory law on religion in October 1997. The law is complex, with many ambiguous and contradictory provisions. The law's most controversial provisions distinguish between religious "groups" and "organizations" and introduce a 15- year rule, which allows groups that have been in existence for 15 years or longer to obtain accredited status. Senior Russian officials have pledged to implement the 1997 law on religion in a manner that is not in conflict with Russia's international human rights obligations. Some local officials, however, have used the law as a pretext to restrict religious liberty.

Government pressure continued to weaken freedom of expression and the independence and freedom of some media, particularly major national television networks and regional media outlets. A government decision resulted in the elimination of the last major non-state television station in 2003. A wide variety of views continue to be expressed in the press.

The constitution guarantees citizens the right to choose their place of residence and to travel abroad. Some bigcity governments, however, have restricted this right through residential registration rules that closely resemble the Soviet-era "propiska" regulations. Although the rules were touted as a notification device rather than a control system, their implementation has produced many of the same results as the propiska system. The freedom to travel abroad and emigrate is respected although restrictions may apply to those who have had access to state secrets. Recognizing this progress, since 1994, the U.S. President has found Russia to be in full compliance with the provisions of the Jackson-Vanik Amendment.

Principal Government Officials

Last Updated: 11/29/04

President: Putin, Vladimir Vladimirovich
Premier: Fradkov, Mikhail Yefimovich
Dep. Premier: Zhukov, Aleksandr Dmitriyevich
Min. of Agriculture: Gordeyev, Aleksey Vasilyevich
Min. of Civil Defense, Emergencies, & Natural Disasters: Shoygu, Sergey Kuzhugetovich
Min. of Culture & Mass Communication: Sokolov, Aleksandr Sergeyevich
Min. of Defense: Ivanov, Sergey Borisovich
Min. of Economic Development & Trade: Gref, German Oskarovich
Min. of Education & Science: Fursenko, Andrey Aleksandrovich
Min. of Finance: Kudrin, Aleksey Leonidovich
Min. of Foreign Affairs: Lavrov, Sergey Viktorovich
Min. of Health & Social Development: Zurabov, Mikhail Yuryevich
Min. of Industry & Energy: Khristenko, Viktor Borisovich
Min. of Information Technologies & Communications: Reyman, Leonid Dododzhonovich
Min. of Internal Affairs (MVD): Nurgaliyev, Rashid Gumarovich
Min. of Justice: Chayka, Yuriy Yakovlevich
Min. of Natural Resources: Trutnev, Yuriy Petrovich
Min. of Regional Development: Yakovlev, Vladimir Anatolyevich
Min. of Transportation: Levitin, Igor Yevgenyevich
Dir., Foreign Intelligence Service (SVR): Lebedev, Sergey Nikolayevich
Dir., Federal Security Service (FSB): Patrushev, Nikolay Platonovich
Head, Government Apparatus: Naryshkin, Sergey Yevgenyevich
Sec., Security Council: Ivanov, Igor Sergeyevich
Chmn., Central Bank of Russia: Ignatyev, Sergey Mikhaylovich
Procurator General: Ustinov, Vladimir Vasilyevich
Ambassador to the US: Ushakov, Yuriy Viktorovich
Permanent Representative to the UN, New York: Denisov, Andrey Ivanovich

The Russian Federation maintains an embassy at 2650 Wisconsin Ave., NW, Washington, DC 20007 (tel. 202-298-5700) and a consular section at 2641 Tunlaw Road, Washington, DC (tel. 202-939-8907/8913/8918). Russian consulates also are located in Houston, New York, San Francisco, and Seattle.


ECONOMY

The Russian economy underwent tremendous stress as it moved from a centrally planned economy to a free market system. Difficulties in implementing fiscal reforms aimed at raising government revenues and a dependence on short-term borrowing to finance budget deficits led to a serious financial crisis in 1998. Lower prices for Russia's major export earners (oil and minerals) and a loss of investor confidence due to the Asian financial crisis exacerbated financial problems. The result was a rapid and steep decline (60%) in the value of the ruble, flight of foreign investment, delayed payments on sovereign and private debts, a breakdown of commercial transactions through the banking system, and the threat of runaway inflation.

Still, Russia weathered the crisis well. In 1999, one year after the crisis, real gross domestic product (GDP) increased by the highest percentage since the fall of the Soviet Union, the ruble stabilized, inflation was moderate, and investment began to increase again. Russia is making progress in meeting its foreign debt obligations. Russia's sovereign debt has shrunken rapidly since 1998. High oil prices brought large fiscal surpluses of over 1% of GDP. This has allowed Russia to prepay part of its debt and repurchase private sector debt. Russia's foreign debt fell from 64% of GDP in 2000 to just 28% of GDP in 2003. Russia continues to explore debt swap/exchange opportunities.

An upgrade in Russian's sovereign credit ratings by Moody's to Baa3 in September 2003, and upgrade by Standard&Poor's to BB+ in January 2004, reflects higher confidence in the Russian Government's financial management. Credit ratings for Russian private debt remain low, however. Large current account surpluses have brought a real appreciation of the ruble over the past several years. The trade-weighted exchange rate of the ruble rose by 4% against the currencies of Russia's major trading partners during 2003. Upward pressure on the ruble has been reduced by sterilization of some of the inflows and by channeling some of the government's fiscal surplus into a stabilization fund. This fund will help cushion Russia from price shocks should energy prices remain low for an extended period. The ruble appreciation of the past several years has given back nearly all of the terms-of-trade advantage that Russia gained when the ruble fell by 60% during the 1998 debt crisis. Loan and deposit rates at or below the inflation rate, as well as a lack of depositor confidence in the Russian banks, inhibit the growth of the banking system and make the allocation of capital and risk much less efficient than it would be otherwise. The Russian government is currently in the process of implementing a deposit insurance scheme as part of its banking reform efforts.

Gross Domestic Product

Russia's GDP grew by 7.3% during 2003 to 13.255 trillion rubles or U.S. $460 billion in nominal terms, propelled by high oil prices, moderate inflation (12%), and strict government budget discipline. Real incomes grew by 10%, spurring considerable growth in private consumption. Industrial output in 2003 grew by 7% compared with 2002.

Monetary Policy

The exchange rate stabilized in 1999; after falling from 6.5 rubles/dollar in August 1998 to about 25 rubles/dollar by April 1999, one year later it had further depreciated only to about 28.5 rubles/dollar. As of January 2004, the exchange rate was 28.5 rubles/dollar, an appreciation of the ruble by 4% from January 2003. After some large spikes in inflation following the August 1998 economic crisis, inflation has declined steadily.

Government Spending/Taxation

Central and local government expenditures are about equal. Combined they come to about 38% of GDP. Fiscal policy has been very disciplined since the 1998 debt crisis. The combined budget surpluses during 2002 were 2.3% of GDP and 1% during 2003. Analysts remain skeptical that high rates of economic growth will continue should oil prices decline. However, high oil prices also have negative economic effects over time, as the consequent very large trade surpluses tend to push the ruble higher, making exports of manufactured goods lag.

Population

Russia's population of 143.8 million (2003 census) is falling. Lower birth rates and higher death rates have reduced Russia's population at a nearly 0.5% annual rate since the early 1990s. Russia is one of few countries with a declining population (although birth rates in many developed countries have dropped below the long-term population replacement). Population decline is particularly drastic in Russia, with higher death rates, especially among working-age males due to poverty, abuse of alcohol and other substances, disease, stress, and other afflictions. Russians generally disapprove of permanent or temporary immigration of workers from countries other than the Russian-speaking former Soviet states that might help solve economic problems brought on by its declining population.

HIV/AIDS

Russia and Ukraine are said to have the highest growth rates of HIV infection in the world. In Russia HIV seems to be transmitted mostly by intravenous drug users sharing needles, although data is very uncertain. Data from the Federal AIDS Center shows that the number of registered cases is doubling every 12 months and by November 2002 had reached 220,000 persons. When projections are made which allow for people in high-risk groups who have not been tested for the disease, estimates of the actual number of HIV-infected persons vary from 1 million to 2 million. The high growth rate of AIDS cases, if unchecked, will have negative economic consequences. Investment will suffer from the diversion of private and government funds to AIDS treatment. The effect on the labor force may be acute since about 60% of infected individuals in Russia are between 20 and 30 years of age. At the September 2003 Camp David Summit, Presidents Bush and Putin pledged to deepen ongoing cooperation between the two countries to fight HIV/AIDS.

Law

A particular brake on many areas of economic activity is the absence of relevant legislation—and where there is legislation, lack of effective law enforcement. During 2000 and 2001, changes in government administration increased the power of the central government to compel localities to enforce laws. Progress has been made on pension reform and reform of the electricity sector. Nonetheless, taxation and business regulations are not very predictable, and legal enforcement of private business agreements, especially outside of Moscow and St. Petersburg, is weak. Leftover attitudes from the Soviet period will take many years to overcome. Local officials in some areas interfere in business. Government decisions affecting business have often been arbitrary and inconsistent, and corruption remains a serious problem. Crime has increased costs for both local and foreign businesses. On the positive side, Russian businesses are increasingly turning to the courts to resolve disputes. The passage of an improved bankruptcy code in January 1998 was one of the first steps. In 2001, the Duma passed legislation for positive changes within the business and investment sector; the most critical legislation was a deregulation package. A new flat tax boosted income tax collections considerably. This trend in legislation continued through 2002 when the new corporate tax code went into effect.

Natural Resources

The mineral-packed Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the Russian Far East make Russia rich in natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. Nevertheless, Russia is a leading producer and exporter of minerals, gold, and all major fuels. Natural resources, especially energy, dominate Russian exports. Ninety percent of Russian exports to the United States are minerals or other raw materials. The Russian fishing industry is the world's fourth largest, behind Japan, the United States, and China. Russia accounts for one-quarter of the world's production of fresh and frozen fish and about one-third of world output of canned fish.

Industry

Russia is one of the most industrialized of the former Soviet republics. However, years of very low investment have left much of Russian industry antiquated and highly inefficient. Besides its resource-based industries, it has developed large manufacturing capacities, notably in machinery. Russia inherited most of the defense industrial base of the Soviet Union, so armaments are the single-largest manufactured goods export category for Russia. Efforts have been made with varying success over the past few years to convert defense industries to civilian use, and the Russian government is engaged in an ongoing process to privatize the remaining 9,222 state-owned enterprises, 33% of which are in the industrial manufacturing sector.

Agriculture

For its great size, Russia has relatively little area suited for agriculture because of its arid climate and inconsistent rainfall. Northern areas concentrate mainly on livestock, and the southern parts and western Siberia produce grain. Restructuring of former state farms has been an extremely slow process. The new land code passed by the Duma in 2002, which makes it easier for Russians to buy and sell farmland, should speed restructuring and attract new domestic investment to Russian agriculture. Foreigners are not allowed to own farmland in Russia although long-term leases are permitted. Private farms and garden plots of individuals account for over one-half of all agricultural production.

Investment

During 2003, cumulative foreign investment increased by 50% to $29.7 billion. Foreign direct investment (FDI) rose by 69% to $6.8 billion. Portfolio investment declined by 15% to $401 million. The "other investment "category, mostly loans, comprises 75.8% of all investment and rose 47% during 2003. Russia does poorly in the international competition for foreign investment due to a poor business climate, lack of transparency, and weak rule of law. Although foreign investment increased rapidly during 2003, Russia's total cumulative ratio of foreign direct investment to GDP is still low at about 6%. This is less than one-third the level in many other transition economies. Much of the foreign investment coming into Russia is actually returning Russian capital from such havens as Cyprus and Gibraltar. According to Russian Central Bank figures, in 2003 net outflow of private sector capital was $2.1 billion; however, previous years have seen outflows of $10 billion to $20 billion. A significant drawback for investment is the banking sector, which lacks the resources, the capability, and the trust of the population needed to attract substantial savings and direct it toward productive investments. Russia's banks contribute only about 3% of overall investment in Russia. While ruble lending has increased since the October 1998 financial crisis, loans are still only 45% of total bank assets. Although many Russians prefer to keep their money outside the banking sector, the recent appreciation of the ruble against the dollar has persuaded some Russians to keep their money in rubles or other currencies such as the euro. The poorly developed banking system makes it difficult for entrepreneurs to raise capital as well as to permit capital transfer from a capital-rich sector such as energy to capital-poor sectors such as agriculture and manufacturing and to diversify risk. Banks still perceive commercial lending as risky, and some banks are inexperienced with assessing credit risk.

Money on deposit with Russian banks represents only 7% of GDP. Sber-bank, Russia's largest bank and 60% owned by the Russian Central Bank, is widely seen as enjoying an implicit state guarantee and so has attracted 63-65% of all bank deposits. The bank deposit insurance law passed in 2003 should gradually end this near-monopoly of Sberbank. Sergei Ignatiev in 2002 replaced Viktor Gerashchenko as Chairman of the Russian Central Bank. Under Ignatiev's leadership, necessary banking reforms, including stricter accounting procedures and federal deposit insurance, have been slow to be implemented; for example, the switch to international accounting standards was pushed back from 2004 to 2007.

Trade

Russia's overall trade surplus during 2003 was $60 billion, up from $46 billion during 2002. World prices continue to have a major effect on export performance, since commodities—particularly oil, natural gas, metals, and timber—comprise 80% of Russian exports. Russian GDP growth and the surplus/deficit in the Russian Federation state budget are closely linked to world oil prices.

Russian exports to the United States rose by 26% during 2003 to $8.6 billion. Chief 2003 Russian exports to the U.S. were fuel oil, inorganic chemicals, aluminum, and precious stones. U.S. exports to Russia rose 2.2% to $2.45 billion. Chief 2003 U.S. exports to Russia were machinery, meat (mostly poultry), and electrical equipment.

According to the 2003 U.S. Trade Representative's National Trade Estimate, erratic customs enforcement has traditionally created problems for foreign and domestic trade and investment. The new customs code, which came into effect on January 1, 2004, has made some improvements to customs administration. However, full implementation has been not yet been achieved, and some customs facilities have been slow in making the shift to new procedures. In addition, a burdensome import licensing regime, including quotas for alcohol, has depressed imports of some products, including products containing alcohol. Uncertainty over Russian veterinary regulations cut U.S. poultry exports to Russia by 40% during 2002. Quotas introduced for poultry, pork, and beef in spring 2003 kept U.S. poultry exports below their 2001 peak. Large losses to U.S. audiovisual and other companies in Russia owing to poor enforcement of intellectual property rights in Russia is a growing irritant in U.S.-Russia trade relations.


DEFENSE

Russia's efforts to transform its Soviet-legacy military into a smaller, lighter and more mobile force continue to be hampered by an ossified military leadership, discipline problems, limited funding and demographics. Recent steps by the Government of Russia suggest a desire to reform. There has been an increased emphasis on practical training, such as the Mobility 2004 Exercises, and the government is introducing bills to improve the organization of the military.

Despite recent increases in the budget, however, defense spending remains unable to sustain Russia's oversized military. Current troop strength, estimated at one million, is large in comparison to Russia's GDP and military budget, which continues to make the process of transformation to a professional army difficult. This is the result of the Soviet legacy and military thinking that has changed little since the Cold War. Senior Russian leaders continue to emphasize a reliance on a large strategic nuclear force capable of deterring a massive nuclear attack.

In 2002, a conscript's salary was only 100 rubles a month, or roughly $3.50. Theoretically, the army provides all necessities, however, housing and food shortages continue to plague the armed forces. Problems with both discipline and brutal hazing are common as well. HIV infection rates in the Russian army are estimated to be between two to five times higher than in the general population, and tuberculosis is a persistent problem.

Such conditions and the poor combat performance of the Russian Armed Forces in the Chechen conflict continue to encourage draft evasion and efforts to delay their military service. Although the available manpower (males 15-49) for the Russian Armed Forces was projected at 39.1 million in 2004, only approximately 11% of eligible males do military service. Moreover, military officials complain that new recruit cohorts are plagued by increasingly incidences of poor education, communicable diseases and criminality.

The Russian government has stated a desire to convert to a professional army. However, implementation has been delayed repeatedly. Current plans envision a transition to a mixed force, in which professional soldiers fill the ranks of select units and conscription is gradually phased out. Some officials have talked of developing a non-commissioned officer corps to lead the professional army, but the military has yet to make any concrete investments in training or facilities that would begin this process.


FOREIGN RELATIONS

In the years after the dissolution of the Soviet Union, Russia took important steps to become a full partner in the world's principal political groupings. On December 27, 1991, Russia assumed the permanent UN Security Council seat formerly held by the Soviet Union. Russia also is a member of the Organization for Security and Cooperation in Europe (OSCE) and the Euro-Atlantic Partnership Council (EAPC). It signed the North Atlantic Treaty Organization (NATO) Partnership for Peace initiative on June 22, 1994. On June 24, 1994, Russia and the European Union (EU) signed a partnership and cooperation agreement. On May 27, 1997, NATO and Russia signed the NATO-Russia Founding Act, which provides the basis for an enduring and robust partnership between the Alliance and Russia—one that can make an important contribution to European security architecture in the 21st century. This agreement was later superseded by the creation of a NATO-Russia Council, which was developed at the Reykjavik Ministerial and unveiled at the Rome NATO Summit in May 2002. Russia has acquiesced (despite misgivings by some) in enlargement of NATO by members first of the former Warsaw Pact and most recently by the Baltic states that were forcibly integrated into the Soviet Union.

The Russian Federation has played an important role in helping resolve international conflicts. It is a cosponsor of the Middle East peace process and supports UN and multilateral initiatives in Cambodia, Angola, the former Yugoslavia, Haiti and elsewhere. Russia is also a member of the G-8, which it joined at the Denver Summit in June 1997. In November 1998, Russia joined the Asia-Pacific Economic Cooperation (APEC) forum, as well. Russia has contributed troops to the NATO-led Stabilization Force in Bosnia and has affirmed its respect for international law and OSCE principles. It has accepted UN and/or OSCE involvement in instances of regional conflict in neighboring countries, including the dispatch of observers to Georgia, Moldova, Tajikistan, and Nagorno-Karabakh.


U.S.-RUSSIA RELATIONS

The United States and Russia share common interests on a broad range of issues. Among the most of these is the work underway to reduce drastically our strategic arsenals. U.S. and Russian missiles are no longer targeted at the other's homeland, and we have become strong allies in the global war on terrorism. The U.S.-Russia Counterterrorism Working Group (CTWG) provides a framework for cooperation on a wide range of issues including intelligence sharing, aviation security, and terrorist financing. Russia shares our basic goal of stemming the proliferation of weapons of mass destruction and the means to deliver them. We are working with Russia to compel Iran to bring its nuclear programs into compliance with IAEA rules. On North Korea, Russia is playing a productive role in organizing and carrying out the six-party talks aimed at the complete, verifiable and irreversible dismantling of North Korea's nuclear program. Russia is an important partner in the Middle East Peace Process "Quartet" (along with the UN and the EU). The NATO-Russia Council is only two years old but has become a major accomplishment in Russia-NATO relations; Russia now interacts with NATO members as an equal but without veto power over NATO decisions. During the past year, Russia has intensified its efforts to combat trafficking in persons. We are cooperating in the fight against HIV/AIDS.

The focus of the September 2003 Camp David Summit with President Putin was to broaden and deepen cooperation and partnership with Russia with the aim of establishing a strategic relationship to deal with the challenges and opportunities of the 21st century.

Secretary Powell paid a highly successful visit to Moscow in January 2004. He emphasized to the Russian leaders—President Putin and his chief ministers—that the U.S. wants a robust partnership with Russia. He also stressed the need for a basis of common principles for the U.S.-Russian relationship. The Secretary underscored the importance of rule of law, freedom of the media, and transparent and fair judicial procedures as core democratic values. President Bush discussed these and other matters of international importance during his meeting with President Putin and other G-8 leaders in Sea Island, Georgia, in June 2004.

U.S. Assistance to Russia

The total amount budgeted by all U.S. Government agencies for assistance programs in Russia in FY04 is $880.2 million. This sum has been allocated for five sectors: Democracy Programs, Economic and Social Reform, Security and Law Enforcement, Humanitarian Assistance, and Cross Sectoral Initiatives. The United States provided over $660,000 worth of medical equipment, supplies, and other humanitarian assistance in the wake of the school hostage-taking tragedy in Beslan in September 2004.

Democracy Programs ($45.3 million). U.S. assistance has faced a number of challenges given Russia's inconsistent progress toward a democratic system. Programs have focused on supporting civil society, independent media, local government reform, the rule of law, and increasing voter participation. In particular, democratic assistance helps improve voter education, election monitoring, and training for young people and political leaders. U.S. technical assistance programs have helped Russia make significant strides in the development of an independent judiciary, which has held hundreds of successful local, regional and national elections. Democratic assistance has also strengthened NGOs. U.S. programs have provided training for journalists and work to establish better partnerships between Russian and American legal officials, and have helped to train several thousand local and regional television and radio stations.

Economic and Social Reform ($51.4 million). U.S. assistance programs support the small-to-mediumsized enterprise sector by training entrepreneurs and supporting non-bank credit institutions to respond to the need for credit to expand businesses and create jobs. Other programs are helping the Russian banking system transform itself into an effective intermediary of funds. In recent years, U.S. enterprise funds have allowed Russian companies to grow and turn handsome profits. U.S.-funded assistance programs also support Russia's efforts to address its serious problems in health and child welfare by encouraging improvements in primary healthcare, particularly for women and infants. Our success is evident in the reversal of Russia's infant mortality rate, which had been increasing over the past fifteen years. Another primary focus of U.S. assistance is the problem of HIV/AIDS infection in Russia; our activities are targeting reductions in HIV/AIDS infection by improving evidence-based models and practices.

Security and Law Enforcement Programs ($773.1 million). The bulk of U.S. assistance programs in the security area help Russia to consolidate, secure, destroy, or dismantle weapons of mass destruction. The Department of Defense's Cooperative Threat Reduction program is assisting Russia with the destruction of missiles and related equipment systems, as well as the construction a facility for the safe destruction of chemical weapons. Through the International Military Education and Training Program (IMET), the United States is providing English language instruction, professional military education, and military legal and peacekeeping training for Russian military and officials of the Ministry of Defense. The Anti-Crime Training and Technical Assistance program supports diverse activities, including the implementation of the July 2002 Criminal Procedure Code, adoption of modern investigative techniques, the development of USRussian legal cooperation under the Mutual Legal Assistance Treaty (MLAT), adoption of community-based policing in the Sakhalin region of the Russian Far East, and support of research into crime and corruption in Russia.

Humanitarian Assistance ($5.4 million). U.S.-based private volunteer organizations funded by the Department of State Humanitarian Transport Program distribute humanitarian assistance to the most needy regions of Russia. Since 1992, this program has facilitated the delivery of nearly $670 million in humanitarian commodities to Russia at a cost of $68 million. The total value of the humanitarian commodities provided to Russia in FY04 is estimated to be in excess of $6 million. This program will conclude at the end of FY04.

Cross-Sectoral Initiatives ($4.9 million). Some assistance cuts across traditional program borders. One of our natural resource assistance programs, for example, combines sound business and ecological techniques; another assistance program helps independent Russian research and policy institutions produce scholarly articles and advice for Russian policymakers. U.S. government assistance is also helping to bring civil society, local government, media, and business together to promote democracy and combat corruption across Russia. The "Regional Initiative," a program operated by the State Department, works to promote cross-cutting development in selected areas of the country outside of the major population centers. Current areas of focus are the Volga Federal District, the Tomsk/Novosibirsk area of Siberia, and the Russian Far East. This program helps coordinate assistance activities in these regions, provides information to local residents about programs active in the area, and encourages greater participation of regional governments in ongoing programs.

Additionally, exchange programs are a vital component of our assistance programs in all areas. In FY03, approximately 5,000 Russians came to the United States on U.S.-funded exchange and professional training programs. Since 1993, over 58,000 Russians have come to the United States on these programs.

Many agencies of the United States Government implement assistance programs, including the United States Agency for International Development (USAID), the Departments of Agriculture, Commerce, Defense, Energy, Health and Human Services, Justice, Labor and State, the Environmental Protection Agency and the Nuclear Regulatory Commission.

Principal U.S. Embassy Officials

MOSCOW (E) Address: 8 Bolshoy Devyatinskiy Pereulok Moscow 121099 Russian Federation; APO/FPO: Name PSC-77, (Name of Section) APO AE 09721; Phone: +7 (095) 728-5000; Fax: +7 (095) 728-5090; INMARSAT Tel: 76-322-2891; Workweek: MON–FRI 9:00 am-6:00 pm; Website: http://www.usembassy.ru/

Russia

AMB: Alexander R. Vershbow
AMB OMS: Karen Pennington
DCM: John R. Beyrle
DCM OMS: Joan Odean
CG: James Pettit
DPO/PAO: James Kenney
POL: Bruce Donahue (acting)
MGT: Edward Alford
AFSA: Randy Kreft
AGR: Allan Mustard
AID: Terry Myers
ATO: Jeffrey Hesse
CLO: Joy Salpini
CUS: Edgar Lacy (Dept. of Homeland Security)
DAO: Miles B. Wachendorf
DEA: Christopher Ogilvie
ECO: Pamela Quanrud
EEO: Jenny O'Connor and Naomi Lyew
EST: Sandra Dembski
FAA: James Nasiatka
FCS: Dorothy Lutter
FMO: Dirk Richards
GSO: Naomi Lyew
ICASS Chair: Kelsey Harris-Smith
IMO: William Curry
INS: Karen Landsness
IPO: Bryan Martin
ISO: William Mains
ISSO: Egan Wang
LAB: Nathan Lane
LEGATT: John DiStasio
NAS: Philip Cleary
OMS: Olga Pavlova
PAO: Laurence Wohlers
RSO: Robert Barton
State ICASS: Steven Rider
Last Updated: 11/2/2004

ST. PETERSBURG (CG) Address: Furshtadskaya Ulitsa 15, 191028 St. Petersburg, Russian Federation; APO/FPO: AmConGen, St. Petersburg, PSC 78, Box L, APO AE 09723; Phone: 7(812) 331-2600; Fax: 7(812) 331-2852; Workweek: 9:00-5:30 Mon.Fri.; Website: www.stpetersburgusconsulate.ru

CG: Morris Hughes
PO: Karen Malzahn
POL/ECO: Rafik Mansour
COM: William Czajkowski
CON: Jeff Vick
CLO: Laura Perry
GSO: Bill Hunt
ISO: Arthur Hutchinson
PAO: Jeff Murray
RSO: Noelle Licari
Last Updated: 8/20/2004

VLADIVOSTOK (CG) Address: 32 Pushkinskaya; Phone: 7-4232-30-00-70; Fax: 7 4232 49-93-72/71; INMARSAT Tel: Dial 9-810-873-683-142-222; Workweek: Monday-Friday 0900 to 1800; Website: vladivostok.us consulate.gov

CG: John Mark Pommersheim
PO: John Mark Pommersheim
POL/ECO: Randall Houston
COM: VACANT
CON: Ken Zurcher
MGT: Matthew E. Johnson
AGR: Svetlana Ily'ina
AID: Irina Isaeva
ECO: Randall Houston

EEO: VACANT
FMO: Matthew E. Johnson
GSO: VACANT
ISO: Stansbury, David
ISSO: Stansbury, David
PAO: Tara Rougle
RSO: PSO/Matthew E. Johnson
State ICASS: Matthew E. Johnson
Last Updated: 10/5/2004

YEKATERINBURG (CG) Address: Gogolya, 15 Yekaterinburg 620151 Russian Federation; APO/FPO: 5890 Yekaterinburg Pl Washington, DC 20521-5890; Phone: 7 (343) 379-3001; Fax: 7 (343) 379-4515; INMARSAT Tel: 76-322-2891; Workweek: MON–FRI 8:30 am-5:30 pm; Website: http://www.uscgyekat.ur.ru/

CG: Scott Rauland
PO: Scott Rauland
POL/ECO: Matt Purl
CON: Chris Beard
MGT: David Shao
ISO: Scott McKnight
ISSO: David Shao
PAO: Brad Hurst
Last Updated: 9/30/2004

TRAVEL

Consular Information Sheet

October 19, 2004

Country Description: Russia is a vast and diverse nation that continues to evolve politically and economically. T ravel and living conditions in Russia contrast sharply with those in the United States. Major urban centers show tremendous differences in economic development compared to rural areas. While good tourist facilities exist in Moscow, St. Petersburg and some other large cities, they are not developed in most of Russia and some of the goods and services taken for granted in other countries are not yet available. Travelers may need to cross great distances, especially in Siberia and the Far East, to obtain services from Russian government organizations, the U.S. Embassy in Moscow or one of the three U.S. Consulates General in Russia: St. Petersburg, Yekaterinburg, and Vladivostok. The Russian visa regime is very restrictive and complicated. A valid visa is necessary not only to enter Russia but also to transit or leave. U.S. citizens without valid visas, whether the visa is lost, stolen, or expired will be unable to leave Russia. Resolving this situation may take up to twenty days. At the same time, travelers without valid visas may not check in at any lodging establishment (i.e. hotel, guesthouse, hostel) in Russia. U.S. citizens without valid visas face long delays before they may leave and during this time may have trouble finding adequate accommodations. Travel to the Caucasus region of Russia is dangerous. The Department of State recommends Americans not travel to Chechnya and adjoining areas, and recommends that Americans who are in these regions depart immediately.

Entry/Exit Requirements: The Russian government maintains a restrictive and complicated visa regime for foreign travelers who visit, transit, or reside in the Russian Federation. The Russian system includes requirements of sponsorship, visas for entry and exit, migration cards, and registration. American citizens who also carry Russian passports face additional complicated regulations. Dual citizen minors who travel on their Russian passports also face special problems.

Russian immigration and visa laws have been recently changed, and, reportedly more changes are being contemplated. The implementation of these laws has not always been transparent or predictable. In addition, Russian Immigration officials at times implement the laws and regulations governing entry and exit inconsistently, especially in remote areas.

The Russian government does not recognize the standing of U.S. consular officers to intervene in visa cases. The U.S. diplomatic mission in Russia is not able to act as sponsor, submit visa applications, register private travelers, or request that visas or migration cards be corrected, replaced, or extended.

Entry Visas: Before traveling to Russia, U.S. citizens should verify the latest requirements with the nearest Russian Embassy or Consulate.

U.S. citizens must always possess a valid U.S. passport and appropriate visas for travel to or transit through Russia, whether by train, car, ship or airplane. The visas should be obtained from a Russian Embassy or Consulate in the U.S. or abroad in advance of travel, as it is impossible to obtain a Russian entry visa upon arrival. Travelers who arrive without an entry visa are not permitted to enter Russia and face immediate expulsion by route of entry, at the traveler's expense.

U.S. citizens transiting Russia in route to any other country do need transit visas. In several instances, travelers were advised differently and erroneously by their travel agents or sponsors. The misinformation caused great delays and hardships. Similarly, Russia-bound U.S. citizens attempting to transit Belarus or Ukraine or the Central Asian republics without visas, have encountered great difficulties. U.S. citizens are strongly advised to check the visa requirements for all countries on their itinerary.

A Russia entry/exit visa has two dates written in the European style (day, month, year). The first date indicates the earliest day a traveler may enter Russia; the second date indicates the date by which a traveler must leave Russia. Russian tourist visas are often granted only for the specific dates mentioned in the invitation letter provided by the sponsor. United States citizens often receive visas only valid for periods as short as four days. Even if the visa is misdated through error of a Russian Embassy or Consulate, the traveler will still not be allowed into Russia before the visa start date or be allowed to leave after the visa expiration date. Any mistakes in visa dates must be corrected before the traveler enters Russia. It is helpful to have someone who reads Russian check the visa before departing the United States

Visas are valid for specific purposes and dates. Travelers should ensure that they apply for and receive the correct visa that reflects their intended action in Russia (i.e., student visa, religious worker visa, commercial visa). Foreigners can be expelled for engaging in activities inconsistent with their visas.

All travelers must continue to list on the visa application all areas to be visited and subsequently register with authorities at each destination. There are several closed cities throughout Russia. Travelers who attempt to enter these cities without prior authorization are subject to fines, court hearings and/or deportation. Travelers should check with their sponsor, hotel, or the nearest Russian visa and passport office before traveling to unfamiliar cities and towns.

Sponsorship: Under Russian law, every foreign traveler must have a Russian-based sponsor (a hotel, tour company, relative, employer, etc.). Generally speaking, visas sponsored by Russian individuals are "guest" visas, and visas sponsored by tour agencies or hotels are "tourist" visas. Note that travelers who enter Russia on "tourist" visas, but who then reside with Russian individuals, may have difficulty registering their visas and migration cards and may be required by Russian authorities to depart Russia sooner than they had planned.

Even if your visa was obtained through a travel agency in the U.S., there is always a Russian legal entity whose name is indicated on the visa and who is considered to be your legal sponsor. It is important for travelers to know who the sponsor is and how to contact him/her because Russian law requires that the sponsor must apply on the traveler's behalf for replacement, extension, or changes to a Russian visa. U.S. citizens are strongly advised to contact their tour company or hotel in advance for the contact information of the visa sponsor.

To resolve any visa difficulties (lost visa, expired visa), the traveler's sponsor must contact the nearest Russian visa and passport office (OVIR/UVIR) for assistance. Resolving the visa problem usually requires the payment of a fee and a wait of up to twenty calendar days.

Exit Visa: A valid visa is necessary to depart Russia. Generally, the visa issued by a Russian Embassy or Consulate is valid for entry and exit.

Visitors who lose or have their U.S. passport and Russian visa stolen must replace their passport at the U.S. Embassy or one of the Consulates General, and then obtain a new visa to depart with the assistance of their sponsor (see above). Without a valid visa in their new United States passports, U.S. citizens cannot leave Russia.

By Russian law, travelers without a valid visa, whether the visa is lost, stolen, or expired, may not check in at any hotel, guesthouse, hostel, or other lodging establishment in Russia. United States citizens without valid visas face significant delays in leaving Russia and may have trouble finding adequate accommodation.

There are no adequate public shelters or safe havens in Russia and the Embassy or the Consulates General have no means to accommodate such stranded travelers.

Visitors, who overstay their visa's validity, even for one day, will be prevented from leaving until their sponsor intervenes and requests a visa extension on their behalf.

Student visas allow only for one entry. The sponsoring school is responsible for registering the visa and migration card and obtaining an exit visa.

Migration Card: All foreigners entering Russia must fill out a migration card, depositing one part with immigration authorities at the port of entry and holding on to the other part for the duration of their stay. Upon exit, the migration card, which serves as a statistical tool and a record of entry, exit, and registration, must be submitted to immigration authorities. The card is also necessary to register at hotels, most of which will not allow a traveler to check in if he or she does not have a migration card.

Migration cards, in theory, are available at all ports of entry from Russian immigration officials (Border Guards). The cards are generally left in literature racks at arrival points. Officials at borders and airports usually do not point out these cards to travelers and it is up to the travelers to find them and fill them out. From time to time, various ports of entry – even the major international airport in Moscow – run out of these cards. There is no mechanism to obtain such cards once a traveler has entered into Russia. The Russian government has not indicated what a traveler should do in such a case.

Lost/stolen migration cards cannot be replaced. While authorities will not prevent foreigners who have lost their migration cards and have not replaced them with a duplicate from leaving the country, foreigners could experience problems when trying to reenter Russia at a future date.

Registration: Travelers who spend more than three days in the country must register their visa and migration card through their sponsor. However, travelers spending less than three days are advised to register their visas as well, since they may encounter problems finding lodging without proper registration. Travelers staying in a hotel must register their visa and migration card with their hotel within one day. It is helpful to make a photocopy of your visa in the event of loss, but note that a copy of your visa will not be sufficient for leaving the country, as Russian border officials always ask for the original. A failure to register is unlikely to result in problems leaving Russia but travelers could experience problems when trying to reenter Russia at a future date.

Police have the authority to stop people and request their documents at any time without cause. Due to the possibility of random document checks by police, U.S. citizens should carry their original passports, registered migration cards, and visas with them at all times. Failure to provide proper documentation can result in detention and/or heavy fines. It is not necessary for travelers to have either entry or itinerary points in the Russian Federation printed on their visas.

Any person applying for a visa for a stay of more than three months must present a certificate showing that he/she is HIV-negative. The certificate must contain the applicant's passport data, proposed length of stay in Russia, blood test results for HIV infection, including date of the test, signature of the doctor conducting the test, medical examination results, diagnostic series and seal of the hospital/medical organization. The HIV test must be administered no later than three months prior to travel and the certificate must be in both Russian and English. Medical facilities are required to report positive HIV tests to the authorities. Foreigners who test positive for HIV while in Russia are subject to deportation.

American Citizens Also Holding Russian Passports: The United States government recognizes that dual nationality exists but does not encourage it as a matter of policy because of the problems it may cause. It expects American citizens to travel on U.S. passports. However, possessing and traveling on a Russian passport, outside of the United States, does not negate a traveler's American citizenship. American citizens who choose to enter Russia on a Russian passport do face several possible difficulties.

U.S. citizens who have at one time held Russian citizenship are often required to renounce Russian citizenship before applying for a Russian visa in their U.S. passport. Unless a former Russian citizen has formally renounced his or her Russian citizenship through a Russian Embassy or Consulate, he or she always risks being considered a Russian citizen and not allowed to depart on any travel document except a Russian passport. This can also interfere with access to U.S. consular services in case of an emergency. This risk is greatly diminished if the traveler enters Russia on a U.S. passport and Russian visa.

Such persons should also be aware that if their Russian passport expires after entry, Russian authorities will not permit them to depart Russia using their U.S. passport. They will be required to obtain a new Russian passport – a process that generally takes several months. Russian external passports extended by Russian Consulates or Embassies overseas are not considered valid for departure from Russia no matter how long the extension. Bearers of such passports will have to apply for a new passport inside the country.

Males of conscript age (18—27 years old) who are deemed to be Russian citizens may experience problems if they have not satisfied their military service requirement.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian if not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

American citizen minors, who also have Russian citizenship, and who are traveling on their Russian passports, must have a power-of-attorney, written in Russian, allowing them to travel if they are traveling alone or in the company of adults who are not their parents. Such minors will be stopped from leaving Russia if they cannot present such a power-of-attorney.

For additional information concerning entry and exit requirements, travelers may contact the Russian Embassy, Consular Section, 2641 Tunlaw Rd., NW, Washington, DC 20007, telephone (202) 939-8907, website http://www.russianembassy.org, or the Consulates in Houston (tel. 713-337-3300), New York (tel. 212-348-0926/55), San Francisco (tel. 415-928-6878, 415-929-0862, 415-202-9800/01) or Seattle (tel. 206-728-1910).

Safety and Security: Due to continued civil and political unrest throughout much of the Caucasus region, the Department of State continues to warn U.S. citizens against travel to Chechnya and all areas that border it: North Ossetia, Ingushetia, Dagestan, Stavropol, Karachayevo-Cherkessiya and Kabardino-Balkariya. The U.S. government's ability to assist Americans who travel to the northern Caucasus is extremely limited. Throughout the region, local criminal gangs have kidnapped foreigners, including Americans, for ransom. U.S. citizens have disappeared in Chechnya and remain missing. Close contacts with the local population do not guarantee safety. Recently, there have been several kidnappings of foreigners and Russians working for non-governmental organizations in the region. United States government personnel are prohibited from traveling to these areas, and American citizens residing in these areas should depart immediately as the safety of Americans and other foreigners cannot be effectively guaranteed.

Acts of terrorism, including bombings and hostage taking, have occurred in large Russian cities over the last several years. Bombings have occurred at Russian government buildings, hotels, tourist sites, markets, residential complexes and on public transportation. In October 2002, terrorists seized a Moscow theater and held its audience captive for several days before Russian Special Forces stormed it. Over 130 persons died in the seizure and subsequent rescue operation. In the summer of 2003, several venues, including an outdoor music festival, were targeted by suicide bombers, and in December 2003, a bomb exploded adjacent to the National Hotel in downtown Moscow, killing six people. In 2004, several incidents occurred: in February, a bomb exploded in a Moscow subway train killing over 40 people; in August explosives on two Russian domestic flights caused them to crash claiming 90 lives, the same week a bomb outside a Moscow Metro station killed another 9 people and injured dozens more; in September, the seizure of a school in the Russian Republic of North Ossetia by armed terrorists resulted in over 300 deaths.

Demonstrations occasionally occur in large cities, and sometimes in front of the U.S. Embassy and Consulates. While these demonstrations are for the most part peaceful and controlled, it is best to avoid such gatherings. For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current travel warnings and public announcements can be found. The Overseas Citizens Services call center at 1-888-407-4747 can answer general inquiries on safety and security overseas. This number is available from 8:00 a.m. to 8:00 p.m. Eastern time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Crime: As a visitor to Russia, be alert to your surroundings. In large cities, take the same precautions against assault, robbery, or pickpockets that you would take in any large U.S. city. Be aware that women and small children, as well as men, can be pickpockets or purse-snatchers. Groups of children and adolescents have been increasingly aggressive in some cities, swarming victims, or assaulting and knocking them down. They frequently target persons who are perceived as vulnerable, especially elderly tourists or persons traveling alone. Some victims report that the attackers use knives. Persons carrying valuables in backpacks, in back pockets of pants, and in coat pockets are especially vulnerable to pickpockets. Keep your billfold in an inner front pocket, carry your purse tucked securely under your arm, and wear the shoulder strap of your camera or bag across your chest. Walk away from the curb and carry your purse away from the street. The most vulnerable areas include underground walkways and the subway, overnight trains, train stations, airports, markets, tourist attractions, restaurants, hotel rooms and residences—even when locked or occupied.

Foreigners who have been drinking alcohol are especially vulnerable to assault and robbery in or around nightclubs or bars, or on their way home. Some travelers have been drugged at bars, while others have taken strangers back to their lodgings, where they were drugged, robbed and/or assaulted.

In many cases involving stolen credit cards, thieves use them immediately. Victims of credit card or ATM card theft should report the theft to the credit card company or bank without delay.

Travelers are advised to be vigilant in bus and train stations and on public transport. Always watch for pick-pockets in these areas. Travelers have generally found it safer to travel in groups organized by reputable tour agencies. Robberies may occur in taxis shared with strangers. Crime aboard overnight trains has occurred as thieves, on some trains, have been able to open locked compartment doors. U.S. citizens should never hitchhike or accept rides from strangers.

To avoid highway crime, travelers should try not to drive at night, especially when alone. Never sleep in vehicles along the road. Do not, under any circumstances, pick up hitchhikers, who not only pose a threat to your physical safety, but also put you in danger of being arrested for unwittingly transporting narcotics or narcotics traffickers in your vehicle. Your vehicle can be confiscated if you are transporting marijuana or other narcotics.

Violent, racially motivated attacks on people of color and foreigners have become widespread in Russia. Many of these attacks target university students, particularly those of Asian and African origin, but older tourists have also been targeted. Travelers are urged to exercise caution in areas frequented by "skinhead" groups and wherever large groups have gathered.

It is not uncommon for foreigners in general to become victims of harassment, mistreatment and extortion by law enforcement and other officials. Police do not need to show probable cause in order to stop, question or detain individuals. Be wary of persons representing themselves as police or other local officials. Try to obtain the officer's name, badge number, and patrol car number, and note where it happened, as this information assists local officials in identifying the perpetrators. Authorities are concerned about these incidents and have cooperated in investigating such cases. Report crimes committed against you by persons presenting themselves as police or other governmental authorities to the U.S. Embassy or the nearest U.S. Consulate.

Extortion and corruption are common in the business environment. Organized criminal groups and sometimes local police target foreign businesses in many cities and have been known to demand protection money. Many western firms hire security services that have improved their overall security, although this is no guarantee. Small businesses are particularly vulnerable. U.S. citizens are encouraged to report all extortion attempts to the Russian authorities and to inform consular officials at the U.S. Embassy or nearest Consulate.

Travelers should be aware that certain activities that would be normal business activities in the United States and other countries are either illegal under the Russian legal code or are considered suspect by the FSB (Federal Security Service). Americans should be particularly aware of potential risks involved in any commercial activity with the Russian military-industrial complex, including research institutes, design bureaus, and production facilities or other high technology, government-related institutions. Any misunderstanding or dispute in such transactions can attract the involvement of the security services and lead to investigation or prosecution for espionage. Rules governing the treatment of information remain poorly defined. During the last several years, there have been incidents involving the arrest and/or detention of U.S. citizens. While the U.S. Embassy has had consular access to these individuals, arrested Americans faced lengthy sentences—sometimes in deplorable conditions—when convicted.

The U.S. Embassy receives reports almost every day of fraud committed against U.S. citizens by internet correspondents professing love and romantic interest. Typically, the Russian correspondent asks the U.S. citizen to send money or credit card information for living expenses, travel expenses, or "visa costs." When the U.S. citizen asks to arrange a face-to-face meeting, the Russian correspondent often "dies" in a sudden accident. The anonymity of the Internet means that the U.S. citizen cannot be sure of the real name, age, marital status, nationality, or even gender of the correspondent. Several citizens' report losing thousands of dollars through such scams. U.S. citizens may refer to http://uscis.gov for authoritative information about the immigration process and the true costs involved. For example, U.S. law does not require Russian visitors to have a certain amount of "pocket money" or "walking around money" in either rubles or dollars.

Thefts of U.S. passports can and do occur. The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred.

Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlet, "A Safe Trip Abroad," for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular affairs home page at http://travel.state.gov.

Medical Facilities: Medical care is below western standards, with shortages of basic medical supplies and equipment and inferior standards of care and hygiene. The few "quality" facilities in Moscow that approach acceptable standards have limited spaces and do not accept all cases (i.e., they may reject cases of infectious illnesses or trauma). Access to these facilities usually requires cash payment at western rates upon admission.

The U.S. embassy and consulates maintain lists of such facilities and English-speaking doctors. Many resident Americans travel to the west for their medical needs. Such travel can be very expensive if undertaken under emergency conditions. Travelers should check their insurance coverage and purchase supplemental coverage for medical evacuation. A medical evacuation from Russian can cost between 50,000 to 100,000 U.S. dollars, depending on the complexity of the situation. Elderly travelers and those with existing health problems may be at particular risk. Elective surgery and non-essential blood transfusions are not recommended, due to uncertainties surrounding the local blood supply. Most hospitals and clinics in major urban areas have adopted the use of disposable syringes as standard practice; however, travelers to remote regions should bring a supply of sterile, disposable syringes for eventualities. Travelers should refrain from visiting tattoo parlors or piercing services due to the risk of infection.

Rates of HIV infection have risen markedly in recent years. While most prevalent among intravenous drug users, prostitutes, and their clients, the HIV/AIDS rate in the general population is increasing. Reported cases of syphilis are much higher than in the U.S., and some sources suggest that gonorrhea and chlamydia are also more prevalent than in Western Europe or the U.S. Travelers should be aware of the related health and legal risks and take all appropriate measures.

Information on appropriate health precautions can be obtained from local health departments or private doctors. General guidance can also be found in the U.S. Public Health Service book, "Health Information For International Travel," available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Tourists in frail health are strongly advised not to visit Russia because of the harsh conditions and lack of adequate medical facilities.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Because conditions in many hospitals do not meet American standards, medical evacuation is frequently necessary for illnesses or injuries that could be treated locally in other countries. Medical evacuation companies can require a substantial down payment before they commit themselves to arranging a flight out of Russia. In addition, medical evacuation from remote areas can be especially long and difficult. Evacuation from the interior of the country, such as Siberia, can take days to organize and set into motion. Also note that the U.S. Government cannot pay for a medical evacuation. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Other Health Information: Outbreaks of diphtheria have been reported throughout the country, even in large cities such as Moscow and St. Petersburg. The U.S. Centers for Disease Control and Prevention recommend up-to-date diphtheria immunizations before traveling to Russia and neighboring countries. Typhoid can be a concern for those who plan to travel extensively in the region. Cases of cholera have also been reported throughout the area. Tap water in St. Petersburg is considered unsafe to drink due to giardia. Drinking bottled water can reduce the risk of exposure to cholera. Tuberculosis and HIV have been an increasing source of concern for Russian healthcare providers.

Information on vaccinations and other health precautions may be obtained from the Centers for Disease Control and Prevention's international traveler's hotline at (877) FYI-TRIP (1-877-394-8747); fax: 1-888-CDC-FAXX (1-888-232-3299), or via their Internet site at http://www.cdc.gov.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Russia is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Safety of Public Transportation: good
Urban Road Conditions/Maintenance: poor
Rural Road Conditions/Maintenance: poor
Availability of Roadside Assistance: poor

In some areas of Russia roads are practically non-existent. Persons planning to drive in Russia should adhere to all local driving regulations. These are strictly enforced and violators are subject to severe legal penalties.

A valid U.S. driver's license with a notarized Russian translation of it or a valid Russian license is necessary to drive a vehicle in Russia. International driver's licenses issued by the American Automobile Association are not accepted in Russia. Tourists may use international driver's licenses issued by the American Automobile Association to drive in Russia. Foreigners who are in Russia on a business visa or with a permanent residence status in Russia are required by law to have a Russian driver's license. In order to obtain this license one has to take the appropriate exam. An American driver's license cannot be exchanged for a Russian license. Travelers without a valid license are often subject to prolonged stops by police and fines.

Drivers must carry third party liability insurance under a policy valid in Russia. U.S. automobile liability insurance is not valid in Russia nor are most collision and comprehensive coverage policies issued by U.S. companies. A good rule of thumb is to buy coverage equivalent to that which you carry in the United States. Drivers should be aware that Russia practices a zero tolerance policy with regard to alcohol consumption prior to driving.

Avoid excessive speed and, if at all possible, do not drive at night. In rural areas, it is not uncommon to find livestock crossing roadways at any given time. Construction sites or stranded vehicles are often unmarked by flares or other warning signals. Sometimes cars have only one headlight with many cars lacking brake lights. Bicycles seldom have lights or reflectors. Due to these road conditions, be prepared for sudden stops at any time. Learn about your route from an auto club, guidebook or a government tourist office. Some routes have heavy truck and bus traffic; others have poor or nonexistent shoulders. Also, some of the newer roads have very few restaurants, motels, gas stations or auto repair shops along their routes. For your safety, have your vehicle serviced and in optimum condition before you travel. It is wise to bring an extra fan belt, fuses and other spare parts.

Law enforcement checkpoints aimed at detecting narcotics, alien smuggling and firearms traffic are located at various places throughout the country. Many checkpoints are operated by uniformed officials; however, others will not be marked and are manned by police or military officers not in uniform. Traffic police sometimes stop motorists to extract cash "fines." For additional information about road safety, including links to foreign government sites, see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/travel/abroad_roadsafety.html. For specific information concerning Russian driving permits, vehicle inspection, road tax and mandatory insurance, contact the Russia national tourist organization offices in New York via the Internet at http://www.russia-travel.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Russia's civil aviation authority as Category 1 — in compliance with international aviation safety standards for oversight of Russia's air carrier operations. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa/index.cfm.

Travelers should note that air travel within Russia, particularly in remote regions, could be unreliable at times. Some small local airlines do not have advance reservation systems but sell tickets for cash at the airport. Flights often are canceled if more than 30% of the seats remain unsold.

Customs Regulations: When arriving in Russia travelers must declare all items of value on a customs form; the same form used during arrival in Russia must be presented to customs officials at the time of departure. Travelers may enter Russia with up to 10,000 U.S. dollars without submitting a customs declaration. They may now leave Russia with up to 3,000 U.S. dollars without submitting a customs declaration. Travelers may export up to 10,000 U.S. dollars by submitting a customs declaration form. In order to ensure one's ability to leave with valuable items (such as expensive jewelry) that were brought into the country, travelers should be sure to declare all such items upon arrival and receive a stamp on their customs declaration form. The stamped form will have to be submitted upon exit from Russia. Lost or stolen customs forms should be reported to the Russian police, and a police report (spravka) should be obtained to present to customs officials upon departure. Often, however, the traveler will find that the lost customs declaration cannot be replaced. Travelers attempting to depart Russia with more money than allowed under customs regulations face possible detention, arrest, fines and confiscation of currency.

Travelers should obtain receipts for all high-value items (including caviar) purchased in Russia. Any article that could appear old or as having cultural value to the customs service, including artwork, icons, samovars, rugs, military medals and antiques, must have a certificate indicating that it has no historical or cultural value. It is illegal to remove such items from Russia without this certificate. Certificates will not be granted for the export of articles that are more than 100 years old, no matter the value. These certificates may be obtained from the Russian Ministry of Culture. For further information, Russian speakers may call the Airport Sheremetyevo-2 Customs Information Service in Moscow at (7) (095) 578-2125/578-2120, or, in St. Petersburg, the Ministry of Culture may be reached at 311-3496.

Russia also has very strict rules on the importation of large quantities of medication: certain prescription and over the counter drugs that are common in the United States are prohibited in Russia and large quantities of any medicine will receive scrutiny. It is advisable to contact the Russian embassy or one of Russia's consulates for specific information regarding this or other customs regulations.

In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found here.

Global Positioning Equipment and Radio Electronics: The importation and use of Global Positioning Systems (GPS) and other radio electronic devices are subject to special rules and regulations in Russia. Mapping and natural resource data collection activities associated with normal, commercial and scientific collaboration may result in the seizure of equipment and/or arrest of the user. The penalty for using a GPS device in a manner that is determined to have compromised Russia's national security can carry a prison term of ten to twenty years. No traveler should attempt to import or use GPS equipment in any manner unless it has been properly and fully documented by the traveler in accordance with the instructions of the Glavgossvyaznadzor (Main Inspectorate of Communications) and is declared in full on a customs declaration at the point of entry to the Russian Federation.

All radio electronic devices brought into Russia must have a certificate from the Glavgossvyaznadzor of the Russian Federation. This includes all emitting, transmitting and receiving equipment such as GPS devices, satellite telephones and other kinds of radio electronic equipment. Excluded from the list are consumer electronic devices such as am/fm radios and cellular phones. A general information sheet on the importation and use of GPS devices, radio-electronic equipment, and computers in Russia is available on the Internet at http://travel.state.gov and from the American Citizens Services Unit of the U.S. Embassy in Moscow or U.S. Consulates elsewhere in Russia.

Criminal Penalties: While in a foreign country, U.S. citizens are subject to that country's laws and regulations. In some instances, laws in Russia differ significantly from those in the United States and do not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating the law, even unknowingly, may be arrested, imprisoned, expelled and forced to forfeit the unused part of a pre-purchased tour. Serious transgressions of the law can lead to arrest and imprisonment. Penalties for possession, use, or trafficking in illegal drugs in Russia are strict and convicted offenders can expect jail sentences and heavy fines.

Under the PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Special Circumstances: The restrictive and complicated Russian visa regime creates situations unique in the world and unexpected and irrational features of the Russian system will surprise even seasoned travelers. Most striking, Russian visa law requires travelers to have a valid visa to depart Russia and resolving this situation may take up to twenty days. At the same time, travelers without valid visas cannot check in to any hotel, guesthouse, hostel, or other lodging establishment in Russia. United States citizens without valid visas face significant delays lasting several days or more in leaving Russia and during this time may have trouble finding adequate accommodation.

There are no adequate public shelters or safe havens in Russia and the Embassy or the Consulates General have no means to accommodate such stranded travelers.

The ruble is the only legal tender. It is illegal to pay for goods and services in U.S. dollars except at authorized retail establishments.

Worn U.S. bills or bills marked in any way are often not accepted at banks and exchange offices, even though this constitutes a violation of currency laws. Travelers may sporadically experience some difficulty in obtaining or exchanging dollars outside of major cities in Russia.

Travelers need no longer bring large amounts of hard currency unless they expect to travel in rural areas. Outside of major cities, commercial enterprises still operate largely on a cash basis and travelers should plan accordingly.

Credit card acceptance, while not universal, is rapidly spreading in Moscow and to a lesser extent in other large cities. However, it is not always predictable. Travelers should check in advance whether a specific store, restaurant, or hotel accepts credit cards. Travelers should know that for no apparent reason Russian credit card readers sometimes decline some valid credit cards. For this reasons, travelers should also have a back up (multiple cards or an ATM card) in case their card is not accepted.

Automated Teller machines (ATMs) are plentiful throughout Moscow and to a lesser extent other large cities. As in any city, American citizens should only use ATMs in well-lit, populated places. Dark, deserted locations invite theft and attacks. In addition, ATM users in Russia are more susceptible to becoming victims of fraud than in the United States. To lessen the possibility of becoming a victim of ATM fraud, American citizens should use ATMs that are physically attached to an established banking institution. Avoid "stand-alone" machines found on street corners and in metro stations. ATM users should also monitor their bank accounts on a regular basis. Any irregular activity associated with unauthorized withdrawals should be reported immediately to the bank.

Holders of travelers' checks have reported problems having them accepted in many commercial enterprises and even some banks. Personal checks are rarely accepted in Russia. Western union agents in Moscow, St. Petersburg and other large cities, which disburse money wired from the U.S. to Russia, sometimes experience periodic cash shortages.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/family/index.html or telephone Overseas Citizens Services at 1-888-407-4747. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy and Consulate Locations: Americans living or traveling in Russia are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Russia. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Embassy's consular section is located in Moscow at Novinskiy Bulvar 19/23; The Embassy's switchboard is 7 (095) 728-5000, American Citizen Service's tel: (7) (095) 728-5000, after-hours emergencies: (7) (095) 728-5000, fax: (7) (095) 728-5084, email: consulmo@state.gov, and website: http://www.usembassy.ru.

U.S. Consulates General are located in:
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