People in Russia have some experience of how to deal with a financial crisis. Only a decade has passed since the country experienced economic turmoil and the lessons have not been forgotten. Moscow may have become one of the most expensive cities in the w

A mid-range two-bedroom flat in the centre of Moscow, typical of the type rented by foreign professionals, costs between $US 7,000 and $US 10,000 a month.

So it’s not surprising that for the third year running Mercer consultants has crowned Moscow the most expensive city for expatriates.

And it’s all down to supply and demand.

“Many companies come here with a large number of their own specialists and bring up to ten new people monthly. They prefer to rent apartments in certain areas, like the city centre. Real estate in these areas isn’t growing so there are no reasons for the prices to go down,” says Ekaterina Batynkova, Usadba Real Estate Managing Director.

But rent isn’t the only expense – food, foreign newspapers and even the humble cup of coffee cost more in Moscow.

In a popular chain of Russian coffee shops, a standard size cappuccino costs 159 roubles, that’s just under $US 6, meaning for some customers a cup of coffee may be more of a luxury than an everyday purchase.

Viktoria Maslovataya says it’s normal.

“This is an average price for Moscow. I don’t know if our customers think the price is too expensive, but they are certain that our coffee is very tasty and good,” says Viktoria Maslovataya, a branch manager at the Shokoladnitsa coffee shop chain.

But the lives of expats are very different from those of ordinary Russians. They represent the other side of Moscow – the one that survives on the cheap.

Flat tenant Vladimir Gorshkov pays less than $US 1,000 a month for his apartment.

“You can definitely find cheaper flats in Moscow. It will be like mine, with basic furniture: a sofa, a cupboard, a stove, and often no home appliances. It’s not too costly in comparison with other flats,” he says.

The same is true when it comes to a buying a cup of coffee. By avoiding the chains a cappuccino can cost as little as $US 3.

Moscow’s fast food stalls are also cheaper than foreign brands.

“We are a 100 per cent Russian company and our hot dogs cost about $US 2. We’re very popular. Fast food in other countries can be much more expensive,” says Sergey Lapada, Star Dog representative.

And finally, seven million people use the Russian Metro everyday and it’s easy to see why – a single journey costs just 19 roubles – about $US 0.60.

So if you do move to Moscow and want to save a few pennies, follow the Russian example and travel underground.

Moscow cheap expat restaurants