Historically, Russia has been one of the most highly educated nations in the world. Government placed great emphasis on the value of education, a fact that is reflected in a very high literacy level among Russia's adult population (99.5 per cent).

Following the collapse of the Soviet Union, educational reforms meant that preschool and the last two years of higher secondary education were no longer compulsory. Compulsory education now begins at age 7 and extends to age 15, after which a further two years of non-compulsory secondary education is available. While the number of compulsory school years has decreased, the average studying period is still around 11 years and there 327 college students per 10,000 people.

The break up of the Soviet Union also saw a number of cracks appear in the Russian education system. The majority of these problems stem from a lack of funding and ageing infrastructure. It is now quite common for Russian schools to be overcrowded, operate in shifts and have a shortage of teachers. Schools, particularly in rural areas, are often run down, prone to electricity shortages or may lack running water.

Against this background, schools are having a hard time maintaining traditionally high education levels. For this reason, some Russian students and their families are now looking outside of Russia for their education.

A growing market

Education is a growing market with over 20,000 Russian students studying abroad every year. This number increases by around 10 per cent annually.

Many European countries and America actively promote their education programs in Russia. Social sciences are the most popular disciplines for Russian students studying abroad. Courses currently in demand among Russian students are:

• Business: fundamentals of economics and business, management, marketing, finance, business accounting, international business;
• English language;
• Information technology;
• Contemporary design and art.

Technical disciplines such as science and engineering are less popular, as Russia is traditionally very strong in these areas.

Statistical analysis suggests that students from Moscow and St Petersburg are most likely to undertake postgraduate studies abroad. Students from the regions, particularly from oil-rich areas such as Surgut and Tumen, are interested in both undergraduate and postgraduate education abroad.

In Russia, there is currently a lack of information about educational opportunities available in Australia. Many prospective students do not realise that an Australian education costs 20–25 per cent less than studying in North America or Europe. This makes Australian educational institutions very competitive against Canada, the United Kingdom and the United States, especially for medium to long-term study.

Active promotion of Australian educational programs throughout Australia Week in Moscow and ongoing involvement in the Russian market should result in growing numbers of Russian students.

Success story: RMIT University

Melbourne-based RMIT University has the largest number of Russian students (18) of any Australian education institution. RMIT University is now in the process of establishing an English language centres in Moscow and St Petersburg in partnership with local education institutions.

Melbourne Business School, another member of the Russia Australia Education Program, has significant number of Russian students to its MBA program in the last few years (about 10 students).

Success story: AEI Russian Market-entry Pilot Project

AEI launched its Russian market-entry pilot project in 2004. The project consists of two initiatives:

• Selecting Russian education agents to visit Australia and meet with counterparts at participating institutions and receive training in the student visa application process;
• Organising national tour of Russia for selected Australian education institutions.

Austrade helped plan and carry out both stages of this pilot project. The first stage involved taking six Russian education agents to Australia, where they visited education institutions and other project members and received training from DIMIA officials in Canberra and Adelaide. Then in April 2005, 12 representatives from Australian education institutions together with AEI representatives travelled to Vladivostok, Khabarovsk, Moscow and St Petersburg to meet with local agents and discuss potential partnerships with local institutions. Austrade's market intelligence and logistical support was particularly critical because AEI does not have any direct representation in the Russian market.