russia presentation investment in russia
TRANSCRIPT
Investment in Russia
Presentation
Pavel Markov,
Russia - Singapore business Council
Why Russia?
Unique geographical position
Diversity of natural conditions
Transport infrastructure
Natural recourses wealth
Large and growing domestic consumer market
Qualified personnel
Labour potential of Russia is more than 75,8 people (by volume it’s the 7th abour market in the world and the 1st in Europe)
Unemployment level – 5,3% (2 times lower than in the EU)
Population literacy rate – 99,4% (the highest among BRICS countries)
Out of 100 adults 23 have higher education
Successful implementation of investment projects
Experts on Russia's investment attractiveness
The new reality: Russia and global
challenges
23 September 2015, Dmitry Medvedev, Prime Minister of Russia
Attracting foreign investment should help resolve a specific problem: to ensure technology
transfer. Foreign investment should be viewed as more than just the financial resources
involved. Technology and know-how are worth more than that.
The tasks that we are facing:
- New technology and innovations introduced by small companies, among others, are
radically changing entire markets and sectors within short timeframes. This leads to
changes in market behaviour, including approaches to the implementation of major long-
term projects.
- Investment in infrastructure and in people should be considered among the top priorities.
Restrictions for foreign investors
- no more than 50% in the equity of companies in the following activities:
- defense (nuclear plants, military, aircraft and space industry),
- mass media,
- communication services,
- natural resources
Investment incentives
Tax policies
Bilateral investment treaties
RUSSIA - SINGAPORE AGREEMENTS
TRADE AGREEMENT BETWEEN THE REPUBLIC OF SINGAPORE AND THE
UNION OF SOVIET SOCIALIST REPUBLICS
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF
SINGAPORE AND THE GOVERNMENT OF THE RUSSIAN FEDERATION ON THE
PROMOTION AND RECIPROCAL PROTECTION OF INVESTMENTS
AGREEMENT BETWEEN THE GOVERNMENT OF THE RUSSIAN FEDERATION
AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESPECT TO TAXES ON INCOME
AGREEMENT ON CULTURAL AND SCIENTIFIC CO-OPERATION BETWEEN THE
GOVERNMENT OF THE UNION OF SOVIET SOCIALIST REPUBLICS AND THE
GOVERNMENT OF THE REPUBLIC OF SINGAPORE
Trade facilitation systems
Official Russia – Server of the State Bodies of The Russian Federation http://gov.ru/index_en.html
Integrated Foreign Economic Information Portal http://www.ved.gov.ru/eng/
Ministry of Economic Development of Russia
http://www.economy.gov.ru/wps/wcm/connect/economylib4/en/home
Information on Special Economic Zones in Russia
http://www.economy.gov.ru/wps/wcm/connect/economylib4/en/home/activity/sections/specialeconomicar
eas/main/index
Russian Export Catalogue http://export.gov.ru/eng/
Federal Customs Service of the Russian Federation http://eng.customs.ru//
Federal Tax Servise of the Russian Federation http://eng.nalog.ru/
Federal State Statistics Service of Russia
http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/en/main/
Moscow city Government Portal http://www.mos.ru/en/index.php
Exhibitions in Russia http://www.exponet.ru/index.en.html
Chamber of Commerce and Industry of the Russian Federation http://www.tpprf.ru/en/
Business reports on Russian companies http://www.tpprf.ru/en/activities/business/servicesRfCCI/index.php
Verifying the business standing of the Russian Companies
http://www.ved.gov.ru/eng/companies/business/
Moscow International Portal http://moscow.ru/en/
Reports of the Leading Consulting Firms
KPMG IN RUSSIA AND THE CIS. Doing
Business in Russia. Your roadmap to
successful investments 2015
http://www.kpmg.com/ru/en/issuesandinsights/
articlespublications/Pages/doing-business-in-
russia-2013.aspx
Deloitte. Doing business in Russia 2015 http://www.deloitte.com/view/en_RU/ru/insight
s/doingbusinessinrussia/
203be9c8e4a07210VgnVCM100000ba42f00aR
CRD.htm
PwC. Doing business and investing in the
Russian Federation 2014
http://www.pwc.ru/en/doing-business-in-
russia/index.jhtml
Ernst & Young. Russia attractiveness
survey 2013
http://www.ey.com/RU/en/Issues/Business-
environment/Russia-attractiveness-survey-2013
Baker & McKenzie. Doing business in
Russia 2013
http://www.bakermckenzie.com/ru-
RU/bkrussiadbi13/
A.T. Kearney. The 2013 A.T. Kearney
Foreign Direct Investment Confidence
Index
http://www.atkearney.com/ru/research-
studies/foreign-direct-investment-confidence-
index
The laws on investment activity
Federal law of 28 November 2011 of N 335-FZ "On investment partnership"
Federal law of 25 February 1999 N 39-FZ "On investment activity in the Russian Federation
implemented in the form of capital investments"
Federal law of 09.07.1999 N 160-FZ (as amended on 05.05.2014) "On foreign investments in
the Russian Federation
Examples of foreign investment
Russian Federation Among Global Top Ten Improvers in Business
Regulation
Doing Business 2014:
In the past year, Russia took steps to make getting electricity simpler and less costly. It set
standard connection tariffs and eliminated many procedures previously required, reducing the
time needed to get a new connection by more than 40 percent and the cost by nearly 80 percent.
Russia also made starting a business easier in the past year, by abolishing in practice the
requirement to have the bank signature card notarized before opening a company bank account.
Russia made dealing with construction permits easier by eliminating several requirements for
project approvals and reducing the time required to register a new building. It streamlined
procedures for registering property and implemented effective time limits for processing
transfer applications. Finally, Russia made trading across borders easier by implementing an
electronic system for submitting export and import documents and by reducing the number of
physical inspections.
“Improving the investment climate is a top policy priority for the Russian authorities, and local
entrepreneurs are seeing the results,” said Augusto Lopez-Claros, Director, Global Indicators
and Analysis, World Bank Group.
Welcome to Russia
Today on the territory of the Russian Federation implements more than 5700 investment
projects in the field of industrial and civil construction, and transport infrastructure:
- Industrial construction 3217 (55%)
- Agribusiness and food industry 830 (14%)
- Woodworking 170 (3%)
- Industrial parks and SEZ 142 (2%)
- Metallurgy and Metalworking 169 (3%)
- Mechanical engineering 291 (5%)
- Oil and gas 210 (4%)
- Construction materials 279 (5%)
- Chemical industry 237 (4%)
- Energy 295 (5%)
- Industrial engineering 594 (10%)
- Civil engineering 2216 (38%)
- Transport infrastructure 386 (7%)
Lessons that we can learn from Singapore’s experience
One of the lessons Singapore for Russia may be:
Effective trade and investment depends not only on the government,
but, also business activity of citizens.
Pavel Markov
Russian-Singapore business Council
mob.tel.: +7 915 303 18 51