The combination of a huge territory, endless reserves of natural resources, a unique geographic location, and a capacious domestic market attracts the attention of international business, which actively locates production and builds supply chains in the country.
The development of business ties between foreign and Russian companies, the constant growth of turnover and financial settlements between the participants in transactions create an ever-growing need for opening accounts in local Russian banks. Having an account as a foreign company in a Russian bank makes it possible to simplify and reduce the cost of settlements with counterparties in the domestic market, as well as to make international payments promptly.
The Russian banking system has gone through several stages of development. This process is actively stimulated by the Central Bank of Russia, which over the past five years has increasingly tightened the criteria for banking stability. Today, all Banks of Russia included in the TOP 10 show excellent results according to stability criteria and are distinguished by the presence of high reserve levels, liquidity, and a high-quality loan portfolio.
Nowadays there are state-owned banks in the Russian banking market, as well as private banks and foreign banks that operate in Russia.
The largest banks with state majority shareholding include Sber-bank and VTB. The majority shareholding in these banks belongs to the state. It is worth noting that Sbe-rbank was founded in 1841, and since then, it has never stopped its activity for a single day, not even during the outbreak of revolutions and wars. Sber-bank is the largest bank in Russia, Central and Eastern Europe, and one of the leading financial institutions worldwide.
Founded in 1990, VTB Bank is one of the primary commercial banks in Russia and operates in OECD and other countries. VTB Group has been successful in competition with Russian and international players for servicing major corporations.
The largest foreign banks operating in Russia are Citibank and Raiffeisen Bank. Both banks have an extensive network of branches both in the capital cities and in other regions of Russia. They work with both private clients and business structures.
The largest private bank in Russia is Alfa-Bank, which was founded by Russian entrepreneurs. Its reliability can be summed up with the popular phrase “too big to fail.” Alfa-Bank is a well-established diversified franchise and has a successful footprint of a mass corporate segment and solid positions in retail banking.
The Bank of Russia exercises continuous supervision over credit institutions to ensure their compliance with the applicable laws and, where necessary, removes banks from the market if their operations jeopardize the interests of creditors and depositors.
Despite sanctions imposed by the US and the European Union to hundreds of individuals for asset freezing and capital repartitions lock-down, the Russian Federation boasts liberal foreign exchange controls.
Both foreign companies and non-resident persons are allowed to open bank accounts in foreign currencies, including Euro, USD, and others.
A huge plus in opening a bank account in Russia is a loyal and flexible approach to the client. In international banking practice, there is a whole list of jurisdictions and companies which are included in the high-risk group. European banks refuse to work with them and open accounts. The situation in Russia is slightly different. Such companies are subject to requests for additional documents, but the result will be a full-fledged bank account.
A corporate bank account in Russia can be thought of as an offshore bank account. It will help you to diversify risks and make your banking more convenient and to perform faster transactions. If you do business with local companies, a bank account in Russia will also facilitate your work. Not to mention that your company will not have to pay any taxes in Russia if it does not do business in the country.
Other advantages of a bank account in Russia:
In most cases, a bank account can be opened remotely. Loyal approach to the jurisdiction of a foreign company. Adequate banking compliance requirements. Low rates for banking services. Fast consideration of documents and opening of accounts. Generally, no deposits to start working with the bank. Modern online banking systems with high levels of security. For companies, there is an exclusive opportunity to maintain a minimum monthly balance, on which an income of 3% is automatically accrued, which does not require freezing funds for deposits.
Non-residents have the right to open accounts in Russian banks freely and without any restrictions, to carry out transactions, obtain loans, have plastic cards issued, open savings accounts. A card for a foreign citizen in most of the banks can be obtained in 2-4 working days. Banks offer various bonus programs and cashback up to 15%. A foreign citizen can also open a deposit, the average interest rate is 3-5%.
Russia also has a deposit insurance system in place protecting depositors’ interests. It covers the funds of consumers, individual entrepreneurs, and small businesses. Most banks have joined this system, and the maximum insurance coverage established by the system amounts to 1.4 million rubles, including interest accumulated.
The requirements for necessary documents are minimal and the process is quick and transparent. The process can be done in a period starting from 14 days.
We can have a bank account opened remotely.
Solutions for clients
We are the official partners of several Banks in Russia, which allows us to offer a guaranteed solution to complex issues when clients have difficulties in cross-border settlements/transfers.
We minimize the loss of clients when carrying out banking transactions in the event of termination of settlements, freezing of accounts, blocking of an operation, suspension of settlements, or impossibility of transfer due to sanctions.
As an official partner of banks in Russia, we provide the opportunity to place clients’ bank assets in various investment products like stocks, fund units, gold, real estate funds, and other assets with a yield of 12% to 25% per annul.
Privatus Maximus highly recommends opening a bank account in Russia because of its immense advantages. Contact our experts today for a consultation.