ATTACKING GLOBAL CONSULTANTS WOULD ONLY HURT RUSSIA

Russia is considering legislation to target global accounting and auditing firms because 'these are companies are viewed as apparently having sensitive positions in terms of Russia’s sovereignty and economic security’. Targeted companies would include the Boston Consulting Group, PricewaterhouseCoopers, KPMG, Mc Kinsey & Co, Deloitte and Ernst & Young.

A sudden ban on foreign providers of such services would only seriously impede corporate Russia from functioning. Indeed, a large number of Russia’s companies use offshore holding structures governed by English law. And Russian oil companies, telecom companies, energy companies, consumer goods manufacturers automotive manufacturers would be severely hurt if such a legislation were to pass. Beside many of those consulting companies have been Russian-based for the last 25 years and are very much part of the Russian corporate landscape.

A Brief Review of Targeted Consultants

Boston Consulting Group :BCG's Moscow office opened in 1994. The office serves a broad base of domestic and international companies located throughout Russia and the Commonwealth of Independent States (CIS). These organizations require high-level strategy combined with hands-on support. BCG Moscow is actively working with Russia's major oil companies, an international energy giant, a few large local retail chains, key fast-moving consumer goods manufacturers, one of the top three telecom players, and companies from key sectors of Russia's and the CIS's economy such as industrial goods, natural resources, and automotive.

PricewaterhouseCoopers (PwC): PwC appeared in Russia for the first time in 1913, and reopened its doors for good in 1989 with an office in Moscow. Since then PwC has become the largest network of firms in Russia providing audit, consulting and tax & legal services. The firm has nearly 25 years of experience working with Russian and international companies, and has taken an active role in the socio-economic development of the country. The Moscow office employs over 2000 people, 150 of whom are foreigners from 32 different countries. The remainder are Russian citizens from 77 different regions.  Clients in Russia represent over 2000 companies, 166 of which appear in the 400 largest companies in Russia. PwC has offices in Moscow, Ekaterinburg,  Kazan, Krasnodar, Novosibirsk, St. Petersburg, Vladikavkaz, Yuzhno-Sakhalinsk.

McKinsey & Company: McKinsey & Company  is a leading global management consulting firm. McKinsey has been working with leading organizations in Russia since 1993, serving a wide range of local and international clients, from oil and gas companies to banks and retail networks. McKinsey also works with state entities, international financial organizations, and cultural institutions in the country. The Moscow office counts 25 partners.

KPMG: KPMG has been working in Russia since 1990. We provide audit and advisory services on tax and financial issues to major Russian and global companies and to a broad range of non-governmental organizations and financial institutions. The company maintains offices in Moscow, St. Petersburg, Ekaterinburg, Kazan, Krasnoyarsk, Nishny Novgorod, Novosibirsk, Perm and Rostov-on-Don.

Deloitte:  Deloitte Russia is one of the leading professional services firms, providing audit, consulting, financial advisory, risk management, tax and legal services. It maintains offices in Moscow, St. Petersburg, Ufa, Yakaterinburg, Yushno-Sakhalinsk

Ernst and Young: EY is a global leader in advisory and assurance, egional demand for advisory services. With the office in Rostov-on-Don (just opened), EY’s  is  now present in Moscow, St. Petersburg, Novosibirsk, Ekaterinburg, Kazan, Krasnodar, Togliatti, Vladivostok, Yuzhno-Sakhalinsk, Rostov-on-Don).