The 28^th session of the Foreign Investment Advisory Council in Russia (hereinafter, the session) took place on 20 October and was attended by the leaders of the world's major companies and banks.

The Foreign Investment Advisory Council in Russia (hereinafter, the Advisory Council) was established in 1994. Its members develop proposals to improve the business environment and create a favourable investment climate in Russia.

Session participants noted that improving the investment climate in Russia is the top priority of the Russian Government.

In 2015, the Advisory Council will focus on the following priority areas.

Administrative barriers and technical regulations

Improving federal legislation to achieve a balanced division of responsibilities for treating industrial effluents between centralised sewage networks and their customers, as well as setting achievable standards for discharging pollutants into water bodies and centralised sewage networks based on best international practices.

Developing proposals for introducing and improving a system of responsibility of manufacturers/importers for the disposal of waste products (consumer packaging).

Improving technical regulations, including studying the possibility of launching within the Eurasian Economic Union a common mechanism for clarifying individual provisions of technical regulations for economic agents and building up law-enforcement practice.

Further improving labour legislation. Developing proposals to eliminate contradictions between the federal law On the Special Assessment of Workplace Conditions and the federal law On the Sanitary and Epidemiological Welfare of the Population.

Improving customs procedures

Expediting procedure for verifying the zero VAT rate on exports.

Ending the requirement that shipping documents for exported goods bear physical stamps of customs authorities.

Expanding the range of goods subject to the procedure of processing for domestic consumption.

Improving the electronic declaration process, including the organisation of electronic interaction during the release of goods from the customs control zone, transitioning to electronic documents, improving expense reports, and introducing Foreign Trade Participant Member Area on the Federal Customs Service website.

Promoting the banking sector and financial markets

Developing proposals regarding the use of FATCA requirements.

Promoting trade and consumer market

Developing an effective packaging materials disposal system.

Ensuring effective and transparent control for products on the consumer market and reforming Russian veterinary and phytosanitary legislation, including the introduction of electronic documentation for accompanying veterinary documents on food products.

Innovation-based growth

Developing a coherent policy to stimulate the localisation of manufacturing facilities in Russia to maintain the end products’ competitiveness.

Encouraging the use and manufacture of environmentally friendly vehicles and developing corresponding infrastructure.

Improving energy efficiency

Amending construction regulations and creating economic incentives for the introduction of energy efficient processes and materials in order to reduce energy consumption by residential, public and industrial buildings and structures.

Healthcare and the pharmaceutical industry

Developing new models for supplying medications to citizens entitled to benefits under Russian law, and expanding access to innovative drugs.

Developing a mechanism to prevent the circulation of generic drugs until the expiration of exclusive rights to the original products.

Improving tax administration

Excluding from the rules governing thin capitalisation (Article 269 of the Tax Code of the Russian Federation) credit and loans issued by Russian banks and corporations to taxpayers at market rates, if such loans are guaranteed by Russian or foreign affiliates.

Possible  treatment of expenses transferred by a foreign or Russian company to its affiliated Russian-based taxpaying legal entity under cost sharing agreements as deductible costs for profit tax purposes.

In addition, the Advisory Council will continue to work in the areas of Improving the Use of Natural Resources, Developing the Russian Far East and Siberia and Improving Russia’s Investment Image.

In pursuance of these priorities, the Advisory Council will continue working with concerned federal executive authorities toward implementing the above areas of focus in 2015.

The Russian Government considers the activities of the Advisory Council to be an important and promising area capable of strengthening the Russian economy. The 29^th session of the Advisory Council will be held on the third Monday of October in 2015.