18 Sep /12

Russia’s economic expansion and the language barrier

russian translation servicesWhenever anyone in business thinks of Russia, they are most likely to think of the energy sector first, with companies such as Lukoil and Gazprom springing to mind. However, beyond these well known global energy players, the Russian economy has been expanding in breadth, depth and sectoral balance. Evidence of this can be seen in the level of foreign direct investment (FDI). Even though oil prices have been fluctuating and the price of natural gas has fallen, the level of foreign direct investment in Russia has risen dramatically, adding approximately $191 billion in 2011 alone, according to the Russian Federal Statistics Service. Conversely, Russian companies received $19 billion of FDI during the first quarter of 2011 alone. This data essentially shows that a reforming Russian economy is becoming even more attractive to foreign investors as well as allowing Russian companies to play a greater role in FDI abroad.

But where do the inflows originate from and where are they going to? As one might expect, the majority of Russian FDI is focused on current and former members of the Commonwealth of Independent States, which comprises Russia’s traditional sphere of influence. However, the FDI flowing into Russia comes mainly from European Union countries, specifically Cyprus, the Netherlands, Luxembourg and Germany. Overall, this increase in cross-border investment activity with Russia creates a problem. While the majority of litigation, security and tariff issues of cross-border trade and investment have been amicably resolved, the one issue that continually creates problems in Russian (in- or outflowing) investment is the language barrier. Without mutual understanding and the ability to translate content into or from Russian properly, there is little doubt that the increase we are witnessing in Russian FDI will be significantly diminished, especially when considering future investment possibilities.

In order to deal with this language barrier and make the most of potential business opportunities, it is likely that there will be an increase in demand for Russian-language translation services among companies exploiting the opportunity that foreign investment offers. Having said that, we cannot assume that all Russian translation services are equal. In the business of international trade and investment, there must be a greater emphasis on the details of what is being stated, whether it be spoken instructions or written contract negotiations, and only through using Russian translation services with an established reputation, adherence to ISO standards and efficient, well trained, and motivated in-house Russian translators can a company be confident that it is well positioned to take advantage of everything that Russian investment has to offer.

Translation company EVS Translations eliminates language barriers for companies that need professional Russian interpreting and translations or Russian-language localisation solutions.

A strong team of Russian translators and proofreaders means that corporate documents are translated from English to Russian or Russian to English quickly and with precision.

If you are interested in our services and rates for Russian-language translations, contact us today.