Russia plans to limit FIs in ‘strategic sectors’

Moscow, October 14:

Russia’s energy and industry ministry issued plans to impose limits on foreign investments (FIs) in strategic sectors of the Russian economy including energy reserves. “The draft law was sent to the government today. We hope it is adopted as soon as possible,” said Sofia Malyavina, a spokeswoman for the ministry yesterday. “The government will discuss this next Thursday.” The draft law defines seven strategic sectors of the Russian economy: security technology, arms production, aircraft building, space, nuclear energy, natural monopolies and federal mineral reserves. Foreign investors will need special permission from a new inter-governmental committee to invest in these sectors and must receive an answer to their application within three months, according to a statement from the ministry.

“On the one hand this will provide for the protection of the national interests of the Russian Federation, and on the other will allow the formation of a predictable and transparent business climate for foreign investors.”