RSPP develops proposals for the return of foreign businesses
The Russian Union of Industrialists and Entrepreneurs (RSPP) has formed a working group to develop conditions for the resumption of activities in Russia by foreign investors. This was reported by Vedomosti on 15 April, citing two sources familiar with the group’s work.
According to the publication, the working group includes not only Russian companies but also foreign business associations, in particular the American Chamber of Commerce (AmCham Russia) and the Association of European Businesses (AEB).
Among the business community’s proposals is giving priority to foreign companies that have maintained jobs and have no outstanding debts to counterparties. There is also discussion of introducing a moratorium of three to five years on re-entry into market segments already occupied by Russian businesses.
One source told Vedomosti that the key issue is not so much the criteria for return, but the legal mechanisms to implement them. A system needs to be created that imposes “entry restrictions” for foreign investors, which would require legislative changes – such as expanding the scope of the law on strategic investments, the source explained.
As previously reported, foreign companies from unfriendly states may only return with permission from the Government Commission on Monitoring Foreign Investments, with the opinion of the relevant sectoral authority taken into account when decisions are made.
On 9 April, Deputy Finance Minister Ivan Chebeskov stated that the Finance Ministry had already drafted a set of conditions for the return of foreign companies to Russia. The draft is under discussion by the Government Commission on Monitoring Foreign Investments.
RBC, in turn, reported that the preliminary list of potential conditions – submitted for inter-ministerial discussion – includes requirements such as achieving a certain level of localisation of production, ensuring technology transfer, and establishing as much of the supply chain in Russia as possible, including production facilities and engineering/R&D centres.