Anti-Monopoly Package to Legalize Current Regulation Trends

Oct. 14 – The so-called third anti-monopoly package “On Amendments to the Federal Law On Protection of Competition and Certain Other Legislative Acts of the Russian Federation,” passed by the lower house of Parliament (State Duma) in the third and final reading.

The package developed by the Russian Federal Anti-Monopoly Service and approved by the presidium of the cabinet in June includes two draft laws amending the law about competitiveness protection, the Criminal Code, the Code about the Administrative Violations and a range of the other legislative acts, according to reports by RIA Novosti. Read the rest of this entry »

Putin to Seek Another 12 Years in Kremlin

Sept. 27 – Prime Minister Vladimir Putin said on Saturday he would like to reclaim the Russian presidency next year in a move that could keep him at the helm of the country until 2024.

Russia will hold presidential elections in March of 2012. Last Saturday, at a carefully-choreographed congress of ruling Edinaya Rossiya (United Russia) party it was announced that Putin, 58, will run for the post. Read the rest of this entry »

IMF Recommends Russia Undertake Economic Reforms

Sept. 22 – Russia must make fundamental changes to its fiscal and monetary policy in the next few years to reach stable economic growth and reduce the country’s vulnerability to external shocks, the International Monetary Fund said Wednesday.

Under the current economic scenario, Russia will remain vulnerable to shocks, with GDP showing modest growth of 3.8 percent annually through 2016 and remaining below 4 percent in the long term, said Odd Per Brekk, the IMF’s senior resident representative in Russia. Read the rest of this entry »

European Commission May Ease Travel to EU for Kaliningrad Residents

Aug. 1 – Residents of the Russian enclave of Kaliningrad may soon be able to visit relatives and do business in the European Union border region with special permits for regular crossings, instead of visas, under a proposal unveiled by the European Commission on Friday.

The European Commission has proposed allowing the states bordering Kaliningrad to negotiate bilateral agreements to make border crossings easier for people living within 30 kilometers to 50 kilometers of the EU frontier.

“(This) will facilitate people-to-people contacts and enhance economic cooperation on both sides of the border, without affecting security,” EU Home Affairs Commissioner Cecilia Malmstrom told reporters in Brussels. Read the rest of this entry »

Russian Government Better Off Not Selling Natural Monopolies

Jul. 20 – While the Russian cabinet has been trying to accelerate privatization, foreign experts suggest it may be better to ease up, saying that selling the “natural monopolies” could possibly be counter-productive.

Giving a speech at the St. Petersburg Economic Forum this June, President Dmitry Medvedev demanded that the government correct plans for privatization of large state companies till August 1, 2011.

“Great volumes of property aren’t necessary for the state. The government has presented offers under the schedule of privatization of the large companies. Realization of these plans certainly is necessary, but they are too modest,” Medvedev declared. Read the rest of this entry »

Russia to Relieve Foreign Investors from Gains Tax

Jul. 19 – Russian President Dmitry Medvedev has signed a law that makes amendments to Article 309 of the Russian Tax Code. The law makes the Russian securities market more attractive to foreign investors as it states that income received by them from sale of shares in Russian equities listed on a stock exchange is no longer subject to any capital gains tax.

The amendments will have retroactive force with regards to transactions executed by foreign investors starting from January 1, 2011.

As it said in the Tax Code of the Russian Federation, Federal law No. 132, the equities concerned should meet three qualification criteria. Read the rest of this entry »

European Union to Cut Import Duties on Potash from Russia and Belarus

Jul. 14 – The European Commission has announced the end of anti-dumping duties and quotas for potash from Russia and Belarus on Wednesday, ending almost two decades of trade barriers against the importation of such goods.

The lapsing of the duties deals a victory to European farmers who have been lobbying for cheaper access to potash, which is one of the three main ingredients used in fertilizer.

Potash is an essential nutrient used by farmers on a range of crops, but while EU anti-dumping duties on imports from Belarus and Russia have been in place, the price has rocketed from around US$220 per ton in 2006 to US$548 per ton nowadays, business.scotsman.com reports. Read the rest of this entry »

State Duma to Ban Beer Sales at Night

Jul. 12 – The State Duma may approve additional restrictions on the sale of beer with alcohol content of more than 0.5 percent between 11 p.m. and 8 a.m. in the country before the summer recess. The bill would also ban the sale of beer altogether at outdoor kiosks (stalls), train stations and street stands, at which around one-third, or about US$6 billion of Russia’s beer is sold.

The bill also expands the number of places where alcohol consumption is prohibited. These places will now include courtyards, elevators, building entryways, playgrounds, forests, parks and beaches. The law is expected to fully enter into force by January 1, 2013, but it is already causing shock waves in the industry. Read the rest of this entry »

Russian Parliament to Close Loopholes in Tax Legislation

Jul. 8 – The State Duma of Russia’s Federal Parliament passed a bill on Thursday enabling the Federal Tax Service to control transfer prices for goods and services traded between parent companies and their affiliates starting Jan. 1, 2012 in a measure expected to prevent tax evasion.

The bill, which was first drafted by the Finance Ministry in 2001 and passed in the key second reading, is aimed at eliminating flaws in tax legislation frequently used by local companies to reduce income taxes. Read the rest of this entry »

Medvedev Eases Foreign Investor Activity in Russia

Jul. 6 – Russian President Dmitry Medvedev signed a decree that will lift curbs on domestic share-trading in Moscow and abroad and ordered the creation of a central securities depositary by September 1. Russian stocks climbed to a two-month high after the decree was sighted last Friday.

The 30-stock Micex Index rose 1.9 percent to 1,698.10, the highest level since April 29. The gauge jumped 3.9 percent this week, the biggest one-week jump since December 5. Read the rest of this entry »

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