World Risk Guide – Russia and Former Russian Bloc Countries –

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Lots of interesting activity is happening in this region, particularly towards the South West area for two countries which are in loggerheads with one another, and the dialogue that is being created by the World towards the conflict is having an affect on the import and export of some of these nations, as the following explores continuing on the series for the World Risk Guide:

(Risk Ratings in understanding Risky Customers are between 1 and 5, with 1 being the lowest and 5 being the highest.)


Perhaps its helped along with its Scandinavian neighbours and that of Germany, which may be why this Country still fares as one of the former Russian bloc’s success stories, since it gained independence in 1991.  Together with strong push in its primary and tertiary sectors, it is becoming a force to be reckoned with it.

Growing in different areas, including that of the on-line sector, one of the first countries to introduce online voting, and also the country which developed Skype.  Although, like many other countries, in 2008, it was hit by the global recession, manifested by austerity measures, that although had a tough time on the people of Estonia, it has quickly recovered and adopted a better stance in becoming one of Eastern Europe’s wealthiest nations, and now part of the single Euro currency as of 2011.

It has still some way to go, but this is one Country to watch in terms of foreign investment and a government that trusts and appreciates its population,  In terms of legal action in this country, it has not materialised that far, as I have experienced Companies paying up, as soon as local Debt Collection Agent have become involved in getting foreign based debts getting paid, unlike some of its other European counterparts.  Once education reaches this part and is centrally focused, this will defintely be a country definitely to watch out for, as on the rise especially in terms of being one of the World’s wealthiest nations.

Risk Rating 3


Attractive flat tax rates of around 15% have seen an influx off foreign investment from global companies, realising that this is a Country, which in the future will offer substantial rewards in return.

Prior to the global recession, this Country was seen as being at the forefront of overall GDP amongst all Eastern European Countries, however it has been let down as the austerity measures introduced by the government has taken its toll.  A prior bid to enter the European single currency was rejected, however in no less than two months, the Lithuanian currency will become the Euro and there should be a move towards strenghing off the economy and the overall Risk Rating for this Country.

From a legal point of view, legal action is not recommended at this stage, until such time that they have a bit more of a stable economy.  As aforementioned however, circumstances for this country are changing, and therefore like that of Estonia it is a matter of time, before this Country is likely to become another wealthy nation, exercising free trade amongst other things.

Risk Rating = 3


In sharp contrast to that of the above two countries, a lot of the industry, from the primary, secondary and tertiary sectors are mainly state operated. Having been reliant on both Russia and the EU to promote its trading activities from an import and export point of view, it has tragically lost good relations, especially from an energy point of view.  Rising costs, and deep rooted instability has meant that there is a long way to go before any of its trading partners would welcome Belarus again in the near future.

Legal action is not recommended, and that you should not issue credit facilities for this country, unless you have mitigated your risk beforehand.  The local currency, the Belarus Ruble is significantly devalued against the US dollar, and therefore its high risk to trade at all with any company based within this country.

Risk Rating = 5


Were it not for the conflicts that rained upon this Country earlier this year, and two areas of this Country looking to seek or gain independence, meant it nearly fell into a civil war, albeit for a barely inconclusive ceasefire that is keeping all parties at bay at the minute.

The country has a lot to offer, in terms of growth in the technology, energy and aviation sectors, but it had to receive an IMF bailout due to the insecurities held against it by the central government.

Trading strongly with the EU, and once the political issues are re-nouced then this country would be better placed in overcoming any legal and credit risk issues as and when they arise.  However, until that point, it is suggested that one should obtain 100% pre-payment up front at this point in time.

Risk Rating = 5


More of less unheard off, but cateogorically one of Europe’s poorest countries.  It relies on its former keeper in relying on its energy and food sources, but is taken advantage off in terms of trying to reduce its staying power with that of Europe.

Relying on the agricultural and tourism industries for income, and like that of Albania as mentioned previously based on foreign nationals working abroad and sending money in, this is a high risk country, where credit should not be given and legal action should not be taken, until such point in time when its economy improves.

Risk Rating = 5


Inclusion into the Eurozone this year, has helped Lativa downgrade its Risk Rating.  However, only a couple of years ago it was all doom and gloom when the previous government was overthrown back in 2010, and a £10m IMF bailout was lent to the Country to overcome its financial crisis left over from 2008.

Uemployment continues to strive, but that many have fled the Country in pursuit of better opportunities abroad.  However, in general regional industries and a growth in exporting means that the Country is well on its way to some pledge of recovery.

Risk Rating = 3

Russian Federation

Seen by many outside of this country, a brute force to be reckoned with.  Its current government exercising its right to cut energy supplies when it feels as though it is not getting its way has seen tensions rise over the last number of years or so.

State owned energy companies and political and economic tensions have existed recently, meaning a downgrading in its credit rating due to tough measures put on accepting Russian imports in their own Countries.  This has caused a an influx of unrest internally, but that the Country is strong to act given its tightly controlled energy supplies.

Legal action in this country does not exceed to that level, as its more than likely you would get paid out.  However, given what has been advised above it is better to obtain a pre-payment for your entire contracted amount until such time tensions are eased for this region.

Risk Rating = 5


Seen as a one time dumping ground for toxic waste, this is a nation to look out for as its rich oil reserves has meant that this nation is likely to be up and coming once corruption is resolved.

Legal action is not recommended in this country, and that higher rate of deposit is required.  In my experience, due to the lack of information, I have not been successfully been able to recover a debt from this country, and based on that experience alone, it is imperative to obtain a larger deposit payment up front.

Risk Rating = 5


Still some way off before Georgia can be seen as a country which is economically successful.  When it gained independence, in 1991 from the breakup of the U.S.S.R, the country was reliant on a lot of primary and agricultural mining.  But since it was granted a bailout by the IMF and Germany, it has managed to turn its successes around and gain an understanding in developing a tertiary sector and industries which are rich in tourism and in the energy sector.

Were it not for Russia imposing strict measures from an energy sector, it would have fared better in terms of its economy growth.  It still has a long way to go, but its steadily climbing.

Perceived by many outside this region as high risk, it is suggested to obtain a larger than average credit rating for this Country , and legal action isn’t recommended, but that if they are to please those outside in terms of the import and export that is carried out, then they are likely to pay up.

Risk Rating – 4


Currently seen as one of the poorest countries within the region, with fragile relations with two of is domineering neighbours Russia and Iran, it has however one of those energy sources, which could see this country become catapulted as one of its richest no later than the end of this decade.

There is in progress a gas line project in progress which could see its gas supply be fed into Southern Europe, which would bypass that of Russia.  However, until that stage, it is important to bear in mind that this is a risky country and that no legal action or credit facility should be offered at this stage, and that all contracts should be put forward on a 100% pre-payment basis, unless a suitable guarantee has been procured somewhat.

Risk Rating =5



Please note that this Article is not designed to disturb or offend anyone, but are the views gathered from a purely economic and legal point of view in terms of the recovery of bad debt from these regions.

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