THE RUSSIAN DISTRIBUTION SYSTEM: PROBLEMS FOR ENTREPRENEURS AND NEW

Market reforms have resulted in dramatic changes in the Russian business climate. Since 1991, when nearly all small shops were owned by the state, nearly 70,000, or one‐half of these shops, have been transferred into public hands. Similarly, about 3,500 medium and large firms have been privatised with the goal being to privatise one‐third of this size firms by the end of 1995. In addition to this massive transfer of ownership, foreign investment has surged with currently over 18,000 operating joint ventures having an investment value of over $10 billion (Kvint, 1994).