Senior officials from the Russian Federation and from OECD countries met in Paris on 14 June 2004 to discuss recommendations designed to boost foreign direct investment in Russia. Deputy Minister Vitaly Saveliev led the Russian delegation, accompanied by First Deputy Chairman Andrei Kozlov of the Central Bank of Russia.
Russia needs foreign direct investment to help raise productivity, sustain growth and create jobs. Over the past two years, FDI inflows have doubled. However, Russia remains significantly less successful in attracting inflows than Central European countries that have made the transition from centrally-planned to market economies. For example, in 2002, FDI into Russia amounted to US$27.6 per head of population, compared with US$817.8 in the Czech Republic.
Russia has acted to improve its attractiveness to foreign investors by changing general FDI legislation, streamlining its tax administration, adopting the OECD’s Principles of Corporate Governance, and reforming land law, its customs code and foreign exchange regulation. At the Investment Policy Review Russia discussed further options for reform, drawing on OECD countries’ experience with FDI liberalisation.
Draft recommendations discussed at the meeting included phasing out ceilings on foreign ownership in such sectors as financial services and in national energy companies; improving opportunities for foreign participation in privatisation by increasing transparency in bidding procedures and dispute resolution; ensuring greater local compliance with federal laws and regulations relating to investment; and intensifying efforts in support of corporate and public sector integrity.
For further information, see: OECD-Russia co-operation in the field of international investment