The legal aspects of doing business in Russia are quite favorable with respect to taxes as compared to other European countries as the tax rates are quite low in Russia. The legal framework of Russia encourages investment in various areas such as oil and gas, metallurgy and technology based products (Lexner, 2007). The proposed company will have a tax savings if it is located in Russia as compared to other European countries.
The federation of Russia has diverse environmental problems and the government is quite ineffective in playing a major role in eradicating environmental threats. The environmental issues concerning Russia are water and air pollution, solid waste management, disposal and treatment of hazardous waste (National intelligence Council, 1999). The manufacturing of Light Emitting Diodes does not considerably affect the environment and the company would not have any environmental issues related to the manufacturing process in Russia.
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