APPROVED BY
Chairman of the Executive Committee of the
Foreign Investment Advisory Council in Russia,
Minister of Economic Development
of the Russian Federation
Maxim Oreshkin
7 April 2018
REGULATION
On FIAC Member Rotation
and the Rotation Group
I. General provisions
1. This Regulation, written in accordance with the Statute On the Foreign
Investment Advisory Council in Russia,” approved by Decree No. 1141 of the
Russian Government of 30 December 2009 (Collected Legislation of the Russian
Federation, 2010, No. 2, Article 203), establishes membership rules for the Foreign
Investment Advisory Council in Russia (hereinafter, “FIAC”), rules for forming a
rotation group and a procedure for the group’s work.
2. FIAC membership is 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 performance of foreign
member companies, except as stipulated in clause 11 of this Regulation.
FIAC’s membership is approved by the chairman of the executive committee
and reported to the chairman of FIAC.
3. Applications and the performance of foreign member companies are
considered by the rotation group.
4. The rotation group is formed by a decision of the chairman of FIAC’s
executive committee and includes at least nine members: five on the Russian side and
four representing various foreign member companies. The Russian side should
consist of the executive secretary of FIAC’s executive committee and representatives
of the Executive Office of the Russian Government, the Russian Ministry for
Economic Development and relevant federal executive bodies (as necessary).
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5. The rotation group meets as necessary, but at least once a year.
6. The rotation group makes decisions recommending that the chairman of the
executive committee:
admit a company as a member of FIAC
cancel a company’s membership
grant observer status to a company
warn a foreign company that its level of participation in FIAC’s activities is
inadequate.
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7. Decisions of the rotation group are passed by a majority of votes, drawn up
in the form of a protocol and signed by all group members present at the meeting.
II. Admission to FIAC
8. The admission of a new member is considered based on an application
addressed to FIAC’s chairman by the head of a parent company
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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 accompanied by information on the company’s activities in
Russia, as listed in Appendix No. 1 to this Regulation.
9. To be admitted to FIAC, companies must meet at least three criteria
qualifying them as major investors, as listed in Appendix No. 2 to this Regulation.
10. In forming FIAC’s membership, the rotation group strives for the
following:
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The rotation group recommends that the chairman of FIAC’s executive committee warn foreign
companies that do not take an active part in FIAC’s working groups and/or company heads who
were absent from FIAC’s two most recent plenary sessions without a valid excuse. The rotation
group recommends that a company’s membership be canceled if its management fails to attend
FIAC’s plenary sessions for two years in a row.
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Under Article 4, clause 3, 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; 2014, No. 19, Article 2311).
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a 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 companies in FIAC’s working groups
11. The chairman of FIAC’s Executive Committee may, at his discretion,
decide to admit a new member, even if the application of the parent company’s head
has not been considered by the rotation group.
12. The Russian Ministry for Economic Development notifies the company of
its admission to FIAC.
III. Cancellation of FIAC membership
13. In considering whether to cancel a company’s membership, the rotation
group analyzes its activities in the Russian Federation.
14. 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 investments in the Russian economy cease or are substantially
curtailed
the company’s head is repeatedly absent (two or more times in a row) from
FIAC sessions without a valid excuse
the company does not take part in the activities of FIAC’s working groups
the company’s activities are not consistent with 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 the
Russian Federation
15. The Russian Ministry for Economic Development notifies the company
that its FIAC membership has been canceled.
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IV. Participation in FIAC’s activities as an observer
16. Organizations that apply under clause 8 of this Regulation may be
allowed to participate in FIAC as observers.
17. The consideration of whether to grant a company observer status should
take into account the criteria qualifying companies as major investors in Appendix
No. 2 to this Regulation as well as the need for a 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.
18. Observer status is granted for a period of one to three years and may be
reviewed on an annual basis at meetings of the rotation group.
19. A decision to offer FIAC membership to an observer may be taken at a
rotation group meeting, based on a review the company’s performance.
20. Observers attend meetings of FIAC’s executive committee as guests and
participate in FIAC’s working groups.
21. The Russian Ministry for Economic Development notifies the company
that it has been granted observer status.
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Appendix No. 1
To the Regulation on FIAC Member Rotation
and the Rotation Group
Information on a company’s activities
in the Russian Federation
1. A general description of the company’s activities (including capitalization
and the total number of employees)
2. The total amount 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 to 2020 and FIAC’s main
areas of activity, and in the production sphere (compared by year and by type of
investment activity over the company’s history and in the last five years)
3. A list of projects realized in the Russian Federation (constituent entity of the
Russian Federation, project starting and ending dates, amount of investments, project
participants) as well as a list of planned projects
4. The number of jobs the company has created in the Russian Federation and
the number of Russian employees hired, including in the production sphere
5. The extent of the company’s charitable activities in the Russian Federation
(for the last three years)
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Appendix No. 2
to the Regulation on FIAC Member Rotation
and the Rotation Group
Criteria
qualifying companies as major investors
1. Total investments in the Russian economy: at least RUB 10 billion
2. Number of jobs created: at least 500
3. Technology imports into the Russian Federation
4. Production in the Russian Federation with at least 30% local content
5. High ratings from international rating agencies (Moody’s, S&P, etc.).
6. Length of operations in Russia: at least five years
7. Market and industry leadership
8. Contribution to improving the investment climate in the Russian Federation