Maxim Oreshkin: Overseas Investors Show Positive Attitude In View of Russian Economy Recovery


At the end of the Foreign Investment Advisory Council (FIAC) session, Russian Minister of Economic Development Maxim Oreshkin pointed out overseas investors’ positive attitude caused by recovery of the Russian economy.

"The Russian economy has begun to recover and grow and companies see this on their bottom lines," he said.

In the first half of 2017, foreign direct investment in the Russian economy reached US$14 billion, he said. "All indicators demonstrate that overseas businesses are again on their active march to Russia seeing ahead long-term development goals," the head of the Russian Ministry of Economic Development said.

The issues discussed at the FIAC session included, in particular, taxes. "The FIAC members brought up the issue of personal property taxes, while the government has already made relevant decisions in the area," Maxim Oreshkin noted.

They also considered the issue of tax deductions for infrastructure facilities built by foreign companies. The head of the Ministry of Economic Development said it also concerned Russian companies. The government intends to work over the issues, including in the frame of a new initiative on infrastructure mortgages and refunding taxes paid by those companies that are engaged in infrastructure facility construction.

"The second story related to infrastructure development is a new wave of investments in the electric power industry. We explored approaches to the so-called DPM 2 proposals, that is, to forging a framework for sustainable investments in energy and boosting the energy sector," Maxim Oreshkin said.

As for introduction of electronic veterinary certificates, according to the Russian Minister of Economic Development, during the meeting it was decided to postpone their introduction for a while, so that the process of introducing and including new commodity groups would occur most gently and would not cause supply interruptions.

"Export development and inclusion of Russian companies in the global production chains for some products were discussed as a separate set of issues. We were also talking about food products and the Ministry will take steps to help small businesses receive those certificates that are recognized by major global companies and, thereby, supply products to such companies," the head of the economic agency said.

Nevertheless, Maxim Oreshkin described creation of a predictable environment, both in terms of macroeconomic policy and dynamics, and in terms of regulation, as one of the most pivotal issues discussed with foreign investors.

"We highlighted preparation of a new non-tax payment bill, which has been prepared in recent months. If passed, it will ensure that in this area companies will also have stable conditions, clarity, predictability and transparency," the minister said noting that he expected further investment growth in subsequent years.