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OECD Investment Policy Reviews: Russian Federation 2004

Progress and Reform Challenges

image of OECD Investment Policy Reviews: Russian Federation 2004

The 2004 Investment Policy Review of the Russian Federation evaluates the progress made since the publication of OECD's 2001 study on this topic.  The report finds that Russia has made significant improvements in its business environment and has signed investment and double taxation treaties with a number of countries.   Nevertheless, the Russian Federation has attracted relatively little FDI and has experienced large-scale capital flight.   The report recommends further reforms that are needed.

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Relaxing Discrimanatory Restrictions on Foreign Direct Investment

A number of measures in several sectors of industry and services discriminate directly against foreign investors and are thus not consistent with the principle of non-discrimination embodied in international instruments such as the OECD Codes of Liberalisation or the National Treatment Instrument. Ownership quotas and other restrictions on foreign investment apply in agricultural land, banking and insurance as well as in the mass media, aviation and domestic transport sectors. In addition, reciprocity conditions apply to foreign participation in telecommunications, and the regulatory framework for the natural monopolies in the gas and electricity sectors sets limits on direct and indirect foreign ownership....

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