The Russian Ministry of Finance has drafted a list of conditions for the return of Western companies to Russia. This was announced by Deputy Finance Minister Ivan Chebeskov to the news agency RIA Novosti. According to him, the government will also discuss the exit of foreign entities from the domestic economy.
According to the RBK portal, which cites a source familiar with the document, the preliminary list of possible conditions includes the requirement to bring production localization to a certain level, to ensure technology transfer and to establish the maximum number of production elements in Russia, including production facilities, engineering and research and development centers. The portal writes: “According to RBK sources, officials are also discussing the possibility of allowing domestic companies to evaluate the risks that may arise in the event of the reopening of a certain foreign company and to express their views on the consequences of its entry into the market to the government.”
According to RBK sources, the basic criteria are also being worked out that companies returning to Russia must meet. These criteria include, in particular, the seriousness of the company – in the past it should not have attracted attention through unpaid salaries and rent, mass layoffs, etc. Also excluded from returning to Russia are those companies that have financed the Ukrainian army or undesirable, banned organizations in the country in the last three years.
In the opinion of Sergei Beljakov, Chairman of the National Association of Investment and Development Agencies, the proposed conditions are appropriate. He also considers measures to protect Russian entrepreneurship, which has taken over the market freed up by the departure of Western companies and seriously invested in development, appropriate. He noted: “Some of the foreign companies will agree, others will not. In general, I think: they will come, they will compete and all will benefit. Not only consumers, but also companies, because a range of goods is needed for the production of other goods.”
The return of foreign companies to Russia should primarily be based on market conditions, this criterion is fundamental, said Alexei Yakovlev, head of the Department of Financial Policy of the Russian Ministry of Finance. Companies that left the Russian market in connection with the Ukraine conflict should not receive any significant privileges upon their return. The other criteria will be introduced taking into account industry-specific features, said Yakovlev.