You, Russians and Money

Although I am the proud holder of a British Passport, I have lived in Russia for so long that it is difficult for me to remember how it felt when I first arrived here. That said, I have worked with a number of ex-pats over the years and offered much free advice and support. Whilst the old maxim that “money cannot buy you happiness” is certainly true – failure to manage your financial arrangements in the days immediately before and after your re-location will certainly increase the chances of misery.

Before you get here

Your preparation for moving to Russia should really start before you arrive. I would encourage everyone – whether you are relocating as a result of your employment or with your spouse or partner, to have a comprehensive review with their existing bank. This should cover all those things that are impacted as direct result of living and/or working abroad – an “International Needs Review”, even if that does sound very grand.

The sort of areas this should cover includes:

• Can my current bank help me open an account in Russia before I arrive?

• Can I transfer money from my existing accounts to Russia and how much will it cost?

• Can I manage my existing bank accounts on the internet?

• Is there any impact to any of my existing financial arrangements – for example my pension; any savings accounts; any stocks and shares?

• Are there any implications if I buy or sell those investments while I am in Russia?

• What are the implications if I lease my home whilst I am in Russia?

• Is my will up to date – and are there any implications if I die in Russia?
  

There are countless questions and your current bank should be able to help you. They might suggest that you seek specific professional advice – a tax specialist for example before you leave. For many, their employer will make this service available. If so – take full advantage.

It is also worth asking your employer a few questions before you get here. Many employers have set allowances to support international postings. Make sure you understand exactly what these cover and how you will be recompensed for those expenses that you initially pay for. Ask what support you will get from Human Resources in your company – before you leave and when you arrive in Russia.

“How often will I be paid?” can be so basic – and is often missed. Many Russians are paid twice a month – which can have disastrous consequences if you have structured your existing regular payments on the same day.

Finally, don’t forget to arrive with some Rubles. These can be bought quite easily in Europe or the USA. This is the only legal tender in Russia. Trying to manage several large suitcases (to get through the first few weeks till your freight arrives) and managing an ATM at the airport is just unnecessary stress. The taxi driver will be less than impressed with anything other than Rubles.

OK I’m at the airport

Russia has a complex set of customs regulations relating to monies that can be brought into the country without filing a customs declaration. The position is exaggerated because the regulations change frequently. If you plan to bring in foreign currency in any quantity, you should seek up to date advice on the best approach.

Banking in Russia

For the ‘first timer’ abroad, understanding the implications of receiving your income in a different currency can be baffling. Initially it feels like you’re on holiday. The exchange rate between the currency you are familiar with and the Ruble – or any currency, is not always in nice round numbers. Your existing bank or any exchange bureau should be able to provide you with a small exchange rate table. If not, prepare one for yourself. Keep it small enough to fit in your wallet or purse – and it will save you having to do your maths with a queue behind you. One of my previous colleagues mentioned how cheap his supermarket shop had been – until I pointed out that he had missed a nought off his calculations!

Once you’re arrived in Russia, if your existing bank was not open an account for you in advance, you should open a local bank account as quickly as possible. Be prepared for the process to take some time. Not every bank is capable of dealing in a foreign language. A new colleague recently arrived from the UK and it took her four weeks to open her account and get a debit card. Ask how long the process will take – and if you have not heard in that timeframe – go back to the bank and ask about the current status of your application.

Many expats will be very used to paying for the majority of goods and services with cards – debit or credit cards. This is not a safe assumption in Russia. The number of stores and restaurants that take plastic is increasing – but you would be wise to ensure that they actually accept plastic before you start shopping or sit down to eat. In my early days in Russia, I had the embarrassing experience that the supermarket did not take plastic and I had a trolley full of shopping. Even today, the largest ‘hypermarkets’ still do not take plastic. Be warned!

You will also need cash for Metro tickets and international dialling phone cards that you might previously have been used to purchasing from a machine using plastic.

Talking about carrying cash is a timely moment to mention discretion. I would not encourage anyone to walk around with significant sums of cash – and certainly never to display large sums of money openly. If you want to keep a quantity of cash on you, keep some in your pocket or wallet and the rest in a security wallet inside your shirt. No matter how positive you feel about Russia or how hard you try to blend in – you look foreign and will therefore be the target of the pickpockets and thugs that exist in every large city around the world. And as a banker, I would be totally remiss if I did not say, please, please do not write down your new card PIN numbers and keep them with the cards, however tempting.

The only number you should ever write down is the telephone number to ring in the event your cards are lost or stolen. It is worth keeping this at home – along with a list of all your card numbers. If you do lose any cards or have your bag/wallet/purse stolen, ring all the card issuers as quickly as possible so that the cards can be blocked. Russian banks are just like all other banks – and you can be liable for fraudulent transactions if you do not notify the bank or card issuer as soon as you realise your cards are missing.

All Russian banks offer the wide range of products that you will be used to. Once you have a found a bank you are comfortable with, you can discuss any banking requirements.

Stuart Lawson