TRICKS OF THE TRADE:
SECURING OFFICE SPACE AND SERVICES IN YEKATERINBURG
by Yelena Zheberlayeva
Yekaterinburg, with a population of 1.5 million, is the capital of Sverdlovsk Oblast, and serves as the de facto capital of the entire Urals region. Both Sverdlovsk Oblast and Yekaterinburg city officials have encouraged foreign investment and created a receptive business climate.
Office Rental
Businesses seeking to set up in Yekaterinburg may choose to rent office space from another establishment (sublet), to rent an office in a business center, or to purchase office space. Several hotels also provide office space on their premises. Modern facilities close to the city center command high prices. The price of a square meter of office space in the city center city varies from $7‑20 for medium-quality offices. The cost may also depend on the landlord, who can sometimes assist in establishing a relationship with local authorities and even in finding new customers and business partners.
Because there is currently a surplus of available office space, all prices should be negotiated. However, it is difficult to find offices ready for occupancy in Yekaterinburg that meet Western requirements. Older buildings usually require significant renovation, and the style of offices in new buildings can vary greatly from U.S. standards. Both the World Trade Center and the Business Center cater to Western firms.
The World Trade Center opened in August 1998. It is the most modern business center in the city. Its facilities include conference halls, office equipment, fax‑modems, restaurants, parking space, and security services. The price is $500‑800 per square meter annually. The price includes membership in the World Trade Center (WTC), which provides access to the WTC database and some discounts for services.
The Business Center on Gogol Street, opened in 1992, has only unfurnished offices available. The complex does not provide conference or other business services. Telephone lines may be installed in individual offices on request. Some official foreign representation offices are located in the building. Commercial leasing begins at $300 per square meter a year.
Educational, science, and research institutes and factories can provide inexpensive office space. These facilities often require considerable additional investment to bring the offices up to Western standards.
It is also possible to purchase office space, which can be an inexpensive option in the long run. Firms interested in purchasing offices should contact the City Property Committee, which can provide a current listing of available properties.
Telecommunications
A written request must be submitted to the head of the City Telephone Exchange to install telephone equipment in Yekaterinburg. The cost of telephone installation changes frequently. Currently, it is $200‑400. Telephone lines are connected within a month after payment.
The major cellular service providers in Yekaterinburg, all U.S.-Russian joint ventures, are Uralwestcom, Beeline, and Uraltel. Uralwestcom offers the widest roaming within Russia and abroad. Beeline provides roaming within 90 cities of the Nis and 70 foreign countries. Cellular services run $0.35‑0.75 per minute.
Internet and Postal Services
Four firmsCGlobal One, Uralrelcom, EMTC (City Telephone Exchange), and Yekaterinburg TelegraphCprovide Internet access. Service costs vary greatly and are subject to frequent changes. Currently, Uralrelcom charges $1.08 per hour for Internet service, with no additional monthly fee. Global One, a U.S.‑Russian joint venture, provides Internet services for $1.80/hour, and a $10 monthly fee.
The local mail system is reliable, but the security of proprietary information cannot be guaranteed. DHL, Federal Express, and UPS operate in Yekaterinburg. Delivery time is about 3‑5 days to the United States, and a bit longer to mail documents from the United States to Yekaterinburg. For shipments other than documents, special arrangements should be made to expedite customs clearance.
Employment Agencies
The financial crisis has had a great impact on Russia=s labor market. Many employees who worked for foreign companies, banks, and other financial institutions have been laid off. The labor market now includes large numbers of highly qualified, relatively low‑cost professionals.
Local recruiting companies such as Ankor, Triza, and Uralskoye Kadrovoye Agentstvo can help to identify appropriate personnel. They also survey the labor market and provide professional consulting services. Salaries have declined 30‑50 percent since the August 1998 financial crisis.
For more information on opening an office in Yekaterinburg, including the legal issues involved and a contact list, visit BISNIS Online at www.bisnis.doc.gov/bisnis/country/9906ur.htm.
Yelena Zheberlayeva represents BISNIS and is colocated with the U.S. Consulate General in Yekaterinburg.