I just came back from a memorable (albeit a bit depressing) trip to Moscow, the visa process was the easiest part of the trip (finding a good apartment deal with great logistics proved more difficult...all places within the first ring are too damn expensive and without car logistics are critical in Moscow). I did not get laid but I made some friends who are begging me to come back, both Russian girls and guys. Russia should be on everyone's radar and the visa process should not deter any US citizen from visiting (btw, don't listen to the western press, I encountered few anti-American sentiments)
If you live in Washington, DC, Houston, NYC, San Fran, or Seattle I recommend going via http://www.ils-usa.com/ They are the official visa centers for the Russian Embassy in Washington, DC USA and have the fastest processing times. Forget about Visahq or any of the other visa processing sites that rip you off. Just go to one of those centers once you have the LOI and the other necessary paperwork, spend about 30 minutes having your info checked, and then pick-up your visa a few weeks later (depending on visa type).
You do not need to have a flight booked but a hotel/apartment confirmation and an individual who is hosting you is necessary. I was able to get my visa done in 10 business days (instead of traditional 15 days) by paying an extra $30 for expedited service.
Here were my costs:
Tourist Visa Multiple Entry (3 years) - $160
Visa Processing Fee - $33
Express visa processing fee - $30
Additional review fee @@ - $25
(@@I made a slight mistake on my travel itinerary but was in a hurry so asked them to fix the application on the spot)
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Total Cost: $248*
(really should have been as little as $188 but I was in a hurry and lazy to redo the application)
*The letter of invitation I received from
waytorussia.net ($30)
For any further questions just ask or PM. Желаю вам успешной и увлекательной поездки, TripleG
P.S. Unless one is in a great deal of hurry DO NOT get the single entry 30-day tourist visa. Cost is almost the same for 3-year VISA and so is the amount of paperwork.