ANDREY TSYGANOV: OUR JOINT EFFORTS WILL FACILITATE IMPROVEMENT OF THE INVESTMENT CLIMATE IN RUSSIA
Deputy Head of FAS discussed measures on improving the law with the Expert Council on Foreign Investments
On 12 October 2018, FAS held the first meeting of the Expert Council on Foreign Investments.
Opening the meeting, the Chairman of the Expert Council, Deputy Head of FAS Andrey Tsyganov presented a concept of the Council and described the state and the prospects of developing the law on foreign investments.
To overcome barriers for investments and creating a favourable investment climate in Russia, the Expert Council will work on improving the law on foreign investments, and the conditions for developing SME (both in Russia and for work on external markets), and undertake efforts to reduce state involvement in the economy (particularly, through privatization).
Deputy Head of FASdrew attention to No. 618 Order of the President of the Russian Federation of 21.12.2017 that approved 2018-2020 National Plan for Developing Competition in Russia and the State Council discussed priority areas in the regions of Russia for developing competition that took place on April 2018.
Obviously, attracting foreign investments plays a priority role among those areas of the work of Russia regions, and private investments in Russian economy in general. Without it another important goal cannot be achieved – reduce state involvement in the Russian economy, gradually decrease the excessive, in the opinion of may experts and the leadership of Russia, the share of private sector what is established so far”, said Andrey Tsyganov.
“I’d like to specially emphasize the task for developing competition and attracting investments at the regional level, at the level of the subjects of the Russian Federation, particularly, by eliminating administrative barriers and excessive restrictions в in capital movement”, added Andrey Tsyganov. “Another important task is to increase the quality of these investments so that new technologies and competences come to Russia together with investments, without which it will be rather difficult for us to survive”.
Discussing the current Russian law on foreign investments, Deputy Head of FAS stated that “The Law on foreign investments proved its efficiency. From time to time, however, its application exposes gaps in legal regulation, discrepancies and uncertainty. Some provisions of the law can result in ambiguous interpretation of particular norms. That is why we must work further on improving the law and its enforcement practice. The Expert Council on Foreign Investments can be a serious support in our daily work towards improving the Law”.
Outlining the prospects for developing the law, Andrey Tsyganov proposed to eliminate the current legal gaps in No.57-FZ Federal Law, introduce efficient liability measures for unfair investors, that make deals breaching No.57-FZ Federal Law, devise efficient measures to enable FAS expose facts of unlawful control over strategic companies by foreign investors. It was proposed to discuss FAS legal initiatives at the next session of the Expert Council.
Deputy Head of FAS Department for Control over Foreign Investments, Shamil Shikhsaidov, outlined measures towards developing the real sector of the economy in the regions through attracting foreign investors and recommendations on improving business climate in the regions.
The speaker reported that the main barriers for investment in fixed capital are high conomic risks, anti-Russian sanctions, inflation, bureaucracy, and corruption.
According to Shamil Shikhsaidov, to attract foreign investments and ensure uninterrupted activity, we need a long-term strategy of working with investors, the principles of information openness and strong regional development institutions.
“Unprecedented conditions should be created for investors and the tools for attracting investors to the real sector of the economy must be introduced more rapidly. New, modern technologies and modernization of fixed assets are necessary. It will help create sought-after products with high added value, increase export potential of the regions, which, in its turn, will be a drive for GDP growth”, concluded Deputy Head of FAS Department for Control over Foreign Investments.
The Expert Council on Foreign Investments is formed by FAS Order of 28 June 2018. It comprises representatives of the Ministry of Economic Development, the Ministry of Finances, the Ministry of Industry and Trade and regional authorities, the Antimonopoly Experts Association, Opora Russia, SME Corporation, the Russian Export Centre, the Chamber of Trade and Industry of the Russian Federation, Russian and foreign commercial and consulting entities.
The work of the Expert Council includes interaction with business communities, in order to identify the main technical, administrative and other controversial issues facing investors, as well as revealing particular problems that investors encounter in their operations.