This is our general commentary on the predominant recent economic, political and legal developments in Russia during 2009 that
we believe are of most relevance to foreign investors. As a law firm, of course we have to say that this is not advice and the ‘usual disclaimers’ apply. It is the personal view of the local team in Moscow, based on news items and other mainly secondary sources and commentary.
For a more detailed introduction to the legal landscape in Russia in 2009, we would recommend the CMS Moscow publication
Doing Business in Russia – or of course a conversation with our Russian, English, German and French lawyers on the ground.
We are aware that we do not portray an entirely attractive picture. We cannot describe a year of undiluted triumph but we have a lot
of news to tell nevertheless. In normal times, these developments, some good and some bad, would seem to describe the usual landscape of an emerging market with all its challenges and opportunities.
Reading our survey will not dispel potential investors’ general fears of ‘country risk’, but as ever, the risk needs to be considered
sector by sector and in relation to the particular assets in question.
The Crisis is a new factor but most other factors have been part
of the landscape of this major emerging economy throughout the boom years, and most foreign investors in Russia have not been
overly troubled by them. We believe the Crisis itself, notwithstanding it started later than in the West, will likely prove to be part
of the worldwide phenomenon and not some peculiar homespun variety that has its own causes and will last for a different period.
Besides the recession, few of our clients have had bad experiences in Russia. CMS has itself operated here, burdened like all business
in Russia by some confusing laws and a mountain of forms and red tape, but nonetheless successfully for more than 17 years!
Contents
Introduction
1. The Russian Recession
1.1 Overview
1.2 Financial Trends
2. Politics
2.1 International Politics
2.2 Domestic politics
2.3 Transparency
3. The Russian Legal System
4 Legal Developments
4.1 Limited Liability Company Legislation (December 2008) and Joint Stock Company Legislation (June 2009)
4.2 Insolvency Legislation (October 2008, December 2008 and May 2009)
4.3 Tax Legislation
5 Commercial trading and protectionism
6 Strategic Industries Law
7 Conclusions |