Russia, Annual Report 2013

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RUSSI A ANNUALREPORT 2012

Annual Report 2012 Dear Partners

Immigration

2012 has been a very fruitful and exciting year for Intermark Relocation. We really appreciate that you have trusted us such an important task − relocating your international assignees to Russia.

2012 as a whole was marked by positive developments and trends in immigration policies:

In this report we would like to share with you the results of 2012, new projects and initiatives that we have implemented based on your feedback and requirements you have shared with us:

International agreements achieved with new countries, Procedures for HQS (highly qualified specialists) visa and work permit obtaining improved By the end of 2012 the majority of international companies switched to HQS system

Moscow Housing Market Immigration Expat’s World in Russia Our Achievments

Standard process for work permit, much more time consuming and difficult, mainly used by representative offices of foreign companies – changes for them are expected in 2013

Moscow Housing Market 2012 Demand for high-end rental properties has increased by 16 % compared to 2011.

Supply has demonstrated stable decrease throughout the year and reduced as much as 34% compared to 2012 – the lowest level recorded since 2008. Main reasons – significant growth of demand for rent and increased activity in the sales market.

Average asking prices have grown by 8 % since the beginning of 2012 and practically reached pre-crisis level with an average monthly rental rate of 7780 USD or 670 USD per square meter.

Average prices and availability for apartments in areas typically demanded by international assignees Bedrooms

Sq. m

Average price (USD)

Availability

1

45 – 70

$ 3000 – 4000

Good

2

70 – 140

$ 5000 – 7000

Good

3

130 – 200

$ 9000 – 12000

Average

4

200 – 300

$ 15000 – 20000

Very Low

Prices for townhouses in international compounds Bedrooms

Sq. m

Average price (USD)

3

160 – 215

$ 10000 – 17500

4

215 – 250

$ 14000 – 19000

5

250 – 340

$ 14500 – 25000

Despite growth in prices the majority of companies have been hesitant to increase housing budgets - average budget has remained at the same level as last year and amounted to 5440 USD per month. However this mismatch does not induce owners to make considerable concessions in terms of price formation and the inclusion of additional services in the rental amount - as the increased demand allows them to rent their properties fast and at the asking price. This results in situations when tenants have to compromise on their requirements, also there are more cases when contracts on chosen properties are not signed as landlords receive offers at higher price, more flexible lease and payment terms.

Forecast for 2013 The demand for high-end rental properties will demonstrate further growth, leading to further decrease of supply and growth in prices at the same level as in 2012 – circa 10% on average.

Immigration procedures for employees from CIS countries (except Belarus and Kazakhstan) still complicated – new law on introduction of exam in Russian language of Russian Language is enacted.

Break through of the year

Russia — Korea

Russia — USA

Now it is not required to obtain a work permit for employees of representatives offices.

Entered into force on 9 September 2012. Provides the possibility of drawing up business, humanitarian, private, and tourist visas by direct invitation from receiving party up to three years with the possibility of continuous residence in the country of entry for up to six months.

Russia — Belarus and Kazakhstan A bilateral agreement on the abolition of work permits, and the exemption from registration within 30 days from the date of entry into the Russian Federation.

Expat’s “World” In Russia The number and variety of international stores has also increased. The selection includes Massimo Dutti, Zara, GAP, Banana Republic and the recently opened large British Chain Debenhams to name but a few. More familiar grocery brands are also now readily available in Moscow including Mince Pies at Christmas for the first time.

Credit cards are now more widely accepted, and in the past year both Metro Cash & Carry and Auchan take credit cards. This has made life The amount of English spoken in easier as ensuring you have enough Moscow has notably improved, cash to pay for a large grocery shop especially in the major international is no longer a worry. stores and in the large shopping malls. In restaurants and cafes this is also noticeable.

In the past few years of living in Moscow many changes have occurred. Some of the changes are subtle and some much more obvious, however Moscow is a very rapidly changing city.

Another personal observation in the past few years is the number of foreign drivers on the roads in Moscow. Four years ago this was not as common especially amongst There are more web sites with a expat women, however now it is a choice of English and this is a welcome improvement when much more familiar sight.

Overall there have been many positive booking theatre tickets etc. People changes in Moscow in the past few in general seem to smile more and years, however the traffic and cost seem happier, foreigners blend in of living both just seem to keep more than in the past.

rising!

Russia Made Easy

7/1 Kropotkinskiy Pereulok Moscow, Russia, 119034 + 7 495 502 95 53 www.intermarkrelocation.ru

Our Achievements in 2012 New Locations

Veliky Novgorod

Ryazan Nizhnevartovsk Toljatti Sochi

Orenburg

Tyumen

Astana

Novosibirsk Novokuznetsk

Almaty

Intermark at International Relocation Events

We've helped over…

We are ready to renew our slogan. Last year it sounded like:

Intermark on continues basis visiting industry events:

“We’ve helped over 10,000 people, 420 dogs, 300 cats, 5 hamsters and 1 parrot move house”

In March our team attended EuRA (European Relocation Association) relocation conference in Stockholm (Sweden).

In October our team took a part in one of the biggest relocation events – Worldwide ERC Summit in Washington DC. It was a really tough week with a huge amount of business meetings.

We were happy to see people's positive reaction on our new materials and orange corporate identity. The team also took a part in a charity project and helped the staff and children from underprivileged families. In 2013 we are planning to participate in the exhibition, see you there!

Today we are happy to announce, that…

“We’ve helped over 12,073 people, 580 dogs, 490 cats, 5 hamsters and 1 parrot move house” *It seems hamsters and parrots preferred to stay at home this year ;-)

New Relocation Guide Moscow Our team made great job and published new Relocation Guide Moscow. We spent a lot of time and energy, drank copious liters of coffee and green tea, and typed, more than a hundred emails to make this book useful to those relocating or just arrived in Moscow.

Inside we published information about Moscow housing market and nd different areas

of the city, including the more popular residential areas of the city, practicalities of living in Moscow, international schools and medical care. Along with this, some practical advice from our “Friends of Intermark” (expatriate wives). *If you want to buy a print-edition, please, contact us by an e-mail at@intermark.ru

Our Client's Feedback

“The new Relocation It’s so colorful and Guide helped a lot to u useful.

Inside you will adapt and choose the most fi find answers for many suitable place for our future question! accommodation in Moscow”

Russia Made Easy

7/1 Kropotkinskiy Pereulok Moscow, Russia, 119034 + 7 495 502 95 53 www.intermarkrelocation.ru

Our Achievements in 2012 Intermark Relocation Academy At the end of the year Intermark Team launches a new project for Corporate Customers – Intermark Relocation Academy. Relocation Academy is seminars about relocation and immigration, changes in real estate and in the legislation of the Russian Federation.

Wishes to the topics and format of the event, accumulated during cooperation with Customers are the basis of the project. An outstanding feature of the seminars is their interactivity - all the participants have an opportunity to share experiences with each other.

Moscow becomes your Friend with Intermark facebook page For the half a year we:

Downloaded more than 367 pictures

Join us if you want to know about lifestyle in Moscow:

Received > 900 comments

new exhibitions, interesting events, best places for shopping, ideas for family weekend, movies on English language

Participants' feedbacks

Very good organization, PR and marketing are great! Thank you for invitation!

Very friendly atmosphere and successful format of the seminar a round table discussion with a mix of monologue, hot topics.

Atmosphere is very friendly, a lot of useful and what is important new information.

Business must be socially responsible Supporting Russian Children In October we were a Silver Sponsor of the 8-th ARC Charity Ball. Action for Russia’s Children (ARC) emerged as an organization in the mid 1990's. Since then it has worked with a number of leading Russian charities who have introduced and implemented breakthrough solutions in childcare and rehabilitation.

If you want to donate your time and skills too or discuss partnership with ARC, please check this link www.actionarc.com/get - involved or contact us.

Made 420 posts

and many more!

Had +958

Just Subscribe!

www.facebook.com/ IntermarkRelocation

Two new members of management board There is a great event in our team - Marina Semenova and Irina Yakimenko, Directors of Relocation and Immigration Services, became shareholders of Intermark Relocation! It is an incredible Cinderella-like story: having both started as help-desk assistants they have worked their way through to top management positions, renewed the company and achieved a lot of success.

Answering the question, what their secret is, they said: “You should really like your job and be an ultimate perfectionist. In service industry you should never put profit as your top priority; this is a road leading to nowhere. You should feel what your clients are going through and always try hard to reach the best possible (and sometimes impossible!)) result for them. Because the best part of our work is realizing that we make Russia a new happy home for our clients and this is a feeling we just cannot give up”.

Supporting Pet-Shelters Intermark also takes care about “small brothers”. In December those from our team who were not ill, working or on vacation got together and went to the pet shelter in Moscow Region. It was great experience. We encourage everyone who loves animals but cannot have a pet for some reason do come to the shelter and spend some time with the dogs. The thing they miss and need most is human attention, and you will get so much satisfaction from seeing those grateful eyes and from knowing that doing that you help them to stay sociable and increase their chances to find a permanent home.

Supporting Russian Traditions To support Russian trade we ordered Christmas & New Year toys to presents for our clients.

Toys were made and grandmotherly painted by “babushki” in a small village in Kostroma region.

Environmental friendly is our way to move!

For our clients we produce “Address Card” with their new location in Moscow. This year we changed the design and now print it on eco-friendly paper. Such paper is bleached without using chlorine and has a FSC (Forest Stewardship Council) certificate confirming that the product is from socially and environmentally responsible forestry.

For Christmas and New Year presents we also used eco-friendly package. Kraft is a paper made from recycled materials and can be recycled again, because there are no acids in composition.

In 2013 many projects underway already.

You will hear more from us soon!

Russia Made Easy

7/1 Kropotkinskiy Pereulok Moscow, Russia, 119034 + 7 495 502 95 53 www.intermarkrelocation.ru