Problems relating to Trade and Investment on Russia

1. Restrictions on entry of foreign capitals
Issue	Issue details	Requests	Reference

(1) Imbalance in Business Interest between Domestic and Foreign Enterprises

- Russian large enterprises tend to get better business interest in certain industrial sectors. It makes difficult Foreign Funded Enterprises' (FFEs') projection into a long-term strategic investment planning, although there is no problem in short term investment.

- It is requested that Government of Russia (GOR) establishes transparency for distribution of business interest.

(2) Restricted Foreign Capital Entry into Tele- Communications Sector

- Foreign Funded Enterprises (FFEs) are closed out from the requisite allocation of the frequency band and the cable laying licence for telecommunication business. While perfunctory tender system exists, it is just in form only. In most cases, successful bidders are predetermined to parties with relations to the government of one kind or another.

- It is requested that GOR:
-- deregulates restrictions, and
-- establishes transparency in the tender procedures.

<<BACK