Chairman of the Executive Committee
of the Foreign Investment
Advisory Council in Russia
Minister of Economic Development
of the Russian Federation
Alexey V. Ulyukaev
February 28, 2014
on FIAC Member Rotation
I. General provisions
This Regulation, developed in accordance with the Statute on FIAC approved by Decree No. 1141 of the Russian Government of 30 December 2009 "On the Foreign Investment Advisory Council in Russia" (Collected Legislation of the Russian Federation, 2010, No. 2, Article 203), sets membership rules for the Foreign Investment Advisory Council in Russia (hereinafter, "FIAC"), rules for forming a rotation group under FIAC's executive committee and the procedure for the group's work.
FIAC's membership is formed based on applications from the heads of foreign companies that invest in the Russian economy and international and other organizations (hereinafter, "applications") as well as on the results of the activities of foreign companies that are FIAC members, except as indicated in clause 11 of this Regulation.
Applications and results of the activities of foreign companies that are FIAC members are considered by the rotation group under FIAC's executive committee (hereinafter, the "rotation group").
The rotation group meets for these purposes as necessary, but at least once a year. Decisions of the rotation group are passed by a two-thirds majority of group members present at a meeting. A decision of the rotation group is drawn up as a protocol and signed by all grРѕup members present at the meeting.
The rotation group decides whether to issue warnings to foreign companies that do not take an active part in FIAC's working groups and/or company heads who were absent from the previous FIAC plenary session without good excuse. Such a decision is drawn up in the form of a protocol,
Signed and submitted to the Chairman of FIAC's executive committee within a period of two weeks.
FIAC's membership and the list of foreign companies that take part in its activities is approved by the chairman of the executive committee and reported to FIAC's chairman.
A rotation group with at least nine members is formed by decision of the chairman of FIAC's executive committee вЂ“ five members on the Russian side and four representing various foreign companies that are FIAC members. The Russian side should be made up of the executive secretary of FIAC's executive committee, representatives of the Ministry for Economic Development, the Office of the Russian Government and concerned federal executive bodies (as necessary).
II. Admission to FIAC
The admission of a new member is considered based on an application by the head of a parent company that invests in the Russian economy and is actively working to create a favorable investment climate and promote investments in the Russian economy (hereinafter, "company"). Such an application should be addressed to the chairman of FIAC along with information on the company's activities in the Russian Federation as indicated in the appendix hereto.
The following factors are evaluated in considering whether to admit a company to FIAC:
– the match between the company's activities and priority areas for Russian economic development as well as FIAC's main areas of activity;
– the company's investment activity in the Russian economy in accordance with the appendix hereto;
–the quality of the company's direct investments in the Russian economy;
– the number of jobs the company has created in the Russian Federation and the number of Russian employees hired, including in the production sphere.
The main principles guiding the formation of FIAC's membership are:
– balanced membership in terms of countries (regions) of origin and types of activity, based on the priority areas for Russian economic development and FIAC's main areas of activity;
– active participation by the company in FIAC's working bodies.
The chair of FIAC's executive council may, at his or her discretion, decide to admit a new member, even if the application has not been considered by the rotation group.
The Ministry for Economic Development notifies the company of its admission to FIAC.
III. Cancellation of FIAC membership
Consideration may be given to canceling a company's membership if:
– the company's head gives notification of his or her intention to cease participating in FIAC's activities;
– the company's investment in the Russian economy ceases or is substantially curtailed;
– the company's head is repeatedly absent (two or more times) from FIAC meetings without good excuse;
– the company does not take part in the activities of FIAC's working bodies;
– the company's activities do not correspond to FIAC's main areas of activity;
– the company's activities have a negative social or economic impact on the Russian economy;
– there is substantiated information that the company has violated Russian law;
– the company has provided inaccurate information on its activities in Russia.
In considering whether to cancel a company's membership, the rotation group analyzes its activities in the Russian Federation.
The Ministry for Economic Development notifies the company that its FIAC membership has been canceled.
In accordance with clause 3 of Article 4 of Federal Law No. 160-FZ of 9 June 1999 "On Foreign Investments in the Russian Federation" (Collected Legislation of the Russian Federation, 1999, No. 28, Article 393).
to the Regulation on FIAC member rotation
Information on a company's activities
in the Russian Federation
General description of the company's activities (including capitalization and total number of employees).
Total volume of investments in the Russian economy, including in priority areas of the economy, as determined by the Concept for the Russian Federation's Long-Term Socioeconomic Development through 2020 and FIAC's main areas of activity, and in the production sphere (compared by year and form of investment activity throughout the company's period of activity and in the last five years).
List of projects realized in the Russian Federation (constituent entity of the Russian Federation, project starting and ending dates, volume of investments, project participants) as well as a list of planned projects.
Number of jobs the company has created in the Russian Federation and the number of Russian employees hired, including in the production sphere.
Extent of the company's charitable activities in the Russian Federation (in the last three years).