In recent years Russia has been paying special attention to the policy of import substitution and development of domestic industry, which is aimed, primarily, at the siting of the production facilities of international companies in Russia. The goal of this process is to reduce Russia’s dependence on imports and to establish the manufacture of high-tech products inside the country. With this goal in mind, the Government of the Russian Federation has recently adopted a number of resolutions concerning localisation, aimed at improving the position of manufacturers of Russian goods (“Made in Russia”). However, the norms regulating localisation issues are not generic, but rather are unique for each specific industry. They take into account whether products are being supplied to the state or to partially state-owned companies or are being sold through B2B arrangements. In addition to the norms regulating localisation issues, the state is also developing measures of support to be provided to production companies in order to encourage them to locate or expand their production facilities in Russia.
In practice, these recent developments also affect international enterprises striving to localise their production in Russia in order to remain competitive or to improve their position on the Russian market.
This guide gives investors an overview of current legal regulation concerning localisation of production and support measures for manufacturers. Among other things, the guide will answer questions concerning the criteria for receiving “Made in Russia” status and reveal the role that will be allotted to special investment contracts in this regard. From this guide you will also learn about selecting a site for production facilities in Russia, the tax regulations in place in some regions, and the underlying specifics of building production facilities. Furthermore, this guide presents key localisation strategies and in particular opportunities for cooperation with Russian partners.