RUSSIA
Since December 1991, last update March 2020
Since July 2006, last amended July 2021
Since July 2006, last amended July 2021
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Commercial presence requirement for digital services providers
Federal Law No. 2124-I "On Mass Media"
Law On Information, Information Technologies and Protection of Information No 149-FZ
Law On Information, Information Technologies and Protection of Information No 149-FZ
According to amendments introduced in 2020 to the Law on Mass Media, a foreign legal entity that disseminates information and materials (including via Internet) by audio or audiovisual means while receiving financing from a foreign State, State bodies, international organizations or foreign citizens, could be recognized as a foreign mass media performing the functions of a foreign agent. The Russian Ministry of Justice maintains a register of such foreign mass media agents. These foreign mass media agents can disseminate information and materials only through locally incorporated legal entity and only with a special note indicating that such information has been created and disseminated by a foreign agent. If the respective mass media does not comply with legal requirements, its transmissions shall be blocked in the Russia.
Coverage Foreign mass media agents
RUSSIA
Since January 2008
Since September 1992, last amended in February 2003
Since September 1992, last amended in February 2003
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the application process for patents
Part IV of the Civil Code of the Russian Federation and Federal Law No. 231-FZ "On the enactment of part IV of the Civil Code of the Russian Federation"
Patent Law of Russian Federation No. 3517-1
Patent Law of Russian Federation No. 3517-1
According to Article 1247 of the Civil Code, foreign legal entities shall carry out their dealings with the federal executive power body charged with intellectual property matters, meaning Federal Service for Intellectual Property (Rospatent) through patent attorneys registered with Rospatent, unless otherwise envisaged by an international treaty of the Russian Federation.
Previously, Art. 15 of the Patent Law of Russian Federation No. 3517-1 required individuals with permanent residence outside the Russian Federation, or foreign legal entities or their patent attorneys shall deal with the Federal executive authority on intellectual property through patent attorneys, registered with the Federal executive authority on intellectual property. This Article was replaced from 1 January 2008 by Part IV of the Civil Code.
Previously, Art. 15 of the Patent Law of Russian Federation No. 3517-1 required individuals with permanent residence outside the Russian Federation, or foreign legal entities or their patent attorneys shall deal with the Federal executive authority on intellectual property through patent attorneys, registered with the Federal executive authority on intellectual property. This Article was replaced from 1 January 2008 by Part IV of the Civil Code.
Coverage Horizontal
RUSSIA
Since October 2008
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Government Decree No. 795 “On approval of the Rules for the presentation by a foreign investor or a group of persons, which includes a foreign investor, information on transactions with shares (stakes) constituting the authorized capital of business entities of strategic importance for ensuring defense state security countries"
A foreign investor must notify the Federal Antimonopoly Service (FAS) of any transaction that would allow the foreign investor to acquire 5% or more of the shares in a strategic entity. The notification must be delivered to the FAS within 45 days of closing of the relevant transaction.
Coverage Horizontal
Sources
RUSSIA
Since July 2017
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Federal Law No. 160-FZ "On Foreign Investments"
Amendments to Article 6 of the Law on Foreign Investments in the Russian Federation No. 160 introduced in 18 July 2017 sets out a general foreign investment screening mechanism in Russia. According to Article 6, transactions made by foreign investors in relation to Russian business entities will be subject to prior approval in the manner prescribed by the Federal Law No.57 on Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence to ensure the country's defense and national security. In accordance with the amendments of 2017, the Government Commission for Control over Foreign Investments has powers to determine any obligation to be imposed on foreign investors as conditions for prior approval of a transaction that it considers necessary to safeguard national defence and state security, in addition to obligations set out in Article 12 of the Federal Law No. 57.
Coverage Horizontal
RUSSIA
Since April 2008
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Federal Law No.57-FZ "On Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence"
According to Art. 6 of the Federal Law No.57, business activities of strategic importance for the national defence and state security which must obtain preliminary approval as provided in the Law include, among others, (i) development and production of encryption (cryptographic) aids, or informational and telecommunication systems protected with encryption (cryptographic) aids that are subject to licensing under the national legislation; (ii) distribution of encryption (cryptographic) aids; (iii) engineering maintenance of encryption (cryptographic) aids; (iv) information encryption services.
Art. 7 of the Law enlists the investment transactions for which a preliminary approval must be obtained. Transactions subject to preliminary approval are the following:
1) transactions resulting in the acquisition by a foreign investor:
a) the right to dispose directly/indirectly of more than 50% (25% or more in case of a company that is of strategic importance and which uses a subsoil area of federal importance) of the total number of votes of the voting stocks (shares) constituting the authorised capital of company of strategic importance;
b) the right to appoint a one-man executive body and/or more than 50% (25% or more in case of a company that is of strategic importance and which uses a subsoil area of federal importance) of the composition of a collective executive body of company.
2) transactions aimed at the acquisition by a foreign investor of the right to dispose directly/indirectly of the stocks (shares) constituting the authorised capital of a business association which has strategic importance and uses a subsoil tract of federal importance, if that foreign investor has the right to directly or indirectly dispose of at least 25 % and up to 75 % of the total number of the votes accounting for the voting stocks (shares) which constitute the authorised capital of such business association;
3) contracts for a foreign investor exercising the functions of the manager (managing organisation) in respect of a company of strategic importance;
4) transactions aimed at acquisition by a foreign state, international organisation, foreign investor that does not supply information or by an organisation controlled by them of the right to dispose directly/indirectly of over 25% of the total number of votes of the voting stocks (shares) constituting the authorised capital of an economic company of strategic importance;
5) other transactions and agreements aimed at the transfer to a foreign investor of the right to determine the decisions of managerial bodies of a company of strategic importance, including the conditions under which it exercises business activities;
6) transactions envisaging the acquisition for ownership, possession or use of property which is classified as property, plant and equipment of a business association of strategic importance and whose value makes up 25 and more per cent of the balance-sheet value of assets of such business association calculated as of the last accounting date according to the data of its accounting (financial) statements;
7) other actions as a result of which a foreign investor acquires the right of defining the decisions of the managerial bodies of the business association of strategic importance, for instance the conditions of its pursuance of entrepreneurial activities.
To date, there are no reports of telecommunication or ICT investments having been blocked by the Russian Government on national interest grounds.
Art. 7 of the Law enlists the investment transactions for which a preliminary approval must be obtained. Transactions subject to preliminary approval are the following:
1) transactions resulting in the acquisition by a foreign investor:
a) the right to dispose directly/indirectly of more than 50% (25% or more in case of a company that is of strategic importance and which uses a subsoil area of federal importance) of the total number of votes of the voting stocks (shares) constituting the authorised capital of company of strategic importance;
b) the right to appoint a one-man executive body and/or more than 50% (25% or more in case of a company that is of strategic importance and which uses a subsoil area of federal importance) of the composition of a collective executive body of company.
2) transactions aimed at the acquisition by a foreign investor of the right to dispose directly/indirectly of the stocks (shares) constituting the authorised capital of a business association which has strategic importance and uses a subsoil tract of federal importance, if that foreign investor has the right to directly or indirectly dispose of at least 25 % and up to 75 % of the total number of the votes accounting for the voting stocks (shares) which constitute the authorised capital of such business association;
3) contracts for a foreign investor exercising the functions of the manager (managing organisation) in respect of a company of strategic importance;
4) transactions aimed at acquisition by a foreign state, international organisation, foreign investor that does not supply information or by an organisation controlled by them of the right to dispose directly/indirectly of over 25% of the total number of votes of the voting stocks (shares) constituting the authorised capital of an economic company of strategic importance;
5) other transactions and agreements aimed at the transfer to a foreign investor of the right to determine the decisions of managerial bodies of a company of strategic importance, including the conditions under which it exercises business activities;
6) transactions envisaging the acquisition for ownership, possession or use of property which is classified as property, plant and equipment of a business association of strategic importance and whose value makes up 25 and more per cent of the balance-sheet value of assets of such business association calculated as of the last accounting date according to the data of its accounting (financial) statements;
7) other actions as a result of which a foreign investor acquires the right of defining the decisions of the managerial bodies of the business association of strategic importance, for instance the conditions of its pursuance of entrepreneurial activities.
To date, there are no reports of telecommunication or ICT investments having been blocked by the Russian Government on national interest grounds.
Coverage Selected digital products
RUSSIA
Since January 2016
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Federal Law No. 2124-I "On Mass Media"
The Law on Mass Media was adopted in 1991 and has been amended many times since then. In January 2016, new amendments concerning the foreign ownership entered into force. According to Article 19-1, a foreign state, an international organization, as well as an organization under their control, a foreign legal entity, a Russian legal entity with foreign participation, a foreign citizen, a stateless person, a citizen of the Russian Federation who has the citizenship of another state, do not have the right to act as a founder (participant) of a mass media organization, be the editorial office of a mass media organization or an organization (legal entity) that carries out broadcasting.
In addition, Article 19-1 prohibits direct or indirect possession, management or control by a foreign state, an international organization, as well as an organization under their control, a foreign legal entity, a Russian legal entity (the share of foreign participation in the authorized capital of which is more than 20%), a foreign citizen, a stateless person, a Russian citizen who has citizenship of another state of more than 20% of shares in the authorized capital of a person who is a participant of the founder company of the mass media organization, the editorial office of the mass media organization or the organization (legal entity) carrying out broadcasting.
This has led to large-scale redistribution of property in the media market and the departure from Russia of a number of major international publishers (e.g. Finnish Sanoma, Axel Springer, the German, the American Dow Jones and FT Group). Other foreign shareholders in the Russian media either reduced their stakes in Russian media or re-registered the ownership in the Russian jurisdiction.
In addition, Article 19-1 prohibits direct or indirect possession, management or control by a foreign state, an international organization, as well as an organization under their control, a foreign legal entity, a Russian legal entity (the share of foreign participation in the authorized capital of which is more than 20%), a foreign citizen, a stateless person, a Russian citizen who has citizenship of another state of more than 20% of shares in the authorized capital of a person who is a participant of the founder company of the mass media organization, the editorial office of the mass media organization or the organization (legal entity) carrying out broadcasting.
This has led to large-scale redistribution of property in the media market and the departure from Russia of a number of major international publishers (e.g. Finnish Sanoma, Axel Springer, the German, the American Dow Jones and FT Group). Other foreign shareholders in the Russian media either reduced their stakes in Russian media or re-registered the ownership in the Russian jurisdiction.
Coverage Media sector
RUSSIA
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Russia is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2013.
Coverage Horizontal
RUSSIA
Since April 2008, as amended in January 2015
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Federal Law No.57-FZ "On Procedures for Foreign Investments in Companies Having Strategic Importance for National Security and Defence"
According to Article 2 of the Federal Law No. 57, foreign states and international organizations, as well as organizations under their control, including those formed in Russia, cannot enter into transactions to gain majority interest in the business entities of strategic importance for national defence and state security. Thus, foreign state controlled investors cannot acquire more than 50% of shares or majority voting rights in companies of strategic importance.
Coverage Business entities of strategic importance in digital field
RUSSIA
Since December 2015
Since June 2018
Since June 2018
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Decision No. 155 of the Ministry of Economic Development "On the conditions for admission of goods originating from foreign countries for the purposes of purchasing goods, works, services for provision of state and municipal needs"
Decision No. 126 of the Ministry of Finance "On the conditions for the admission of goods originating from a foreign state or a group of foreign states for the purpose of purchasing goods to meet state and municipal needs.
Decision No. 126 of the Ministry of Finance "On the conditions for the admission of goods originating from a foreign state or a group of foreign states for the purpose of purchasing goods to meet state and municipal needs.
As from 31 December 2015, the Ministry of Economic Development's Decision No. 155 grants preferences of 15% (30% in case of radio-electronic equipment) in relation to the contract price in public procurement auctions and tenders to participants who propose to supply goods originating from Eurasian Economic Union (EAEU) countries. The Decision was later replaced by Decision No. 126 of the Ministry of Finance in June 2018, which contains a similar provision with regard to price preference to EAEU countries.
Coverage Horizontal
RUSSIA
Since September 2016
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Government Resolution No. 925 "On the priority of goods of Russian origin, work, services performed by Russian persons in relation to goods originating from a foreign state, work, services performed by foreign persons"
Government Resolution No. 925 of 16 September 2016, which is of general application to all goods, works and services, grants a 15% price preference for domestically produced products or imposes a 15% reduction in the price offered in a tendering procedure to foreign products. At the same time in accordance with paragraph 8 of Decree No. 925 the priority should be given taking into account the provisions of GATT 1994 and the EAEU Treaty.
Coverage Horizontal
RUSSIA
Since April 2013
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Federal Law No. 44-Z "On Public Procurement"
According to Art. 14.3 of the Federal Law No. 44-FZ, the Government can establish a ban on the admission of goods, works and services originating from foreign states and impose restrictions restrictions on the admission of these goods, works, services, including the minimum mandatory share of purchases of Russian goods in order to protect the foundations of the constitutional system, ensure the country's defense and state security, protect the internal market of the Russian Federation, develop the national economy, and support Russian producers.
Coverage Horizontal
RUSSIA
Since January 2016
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Resolution No. 1236 "On Prohibition of Admission of Software originated in Foreign Countries for the Purposes of Procurement for State and Municipal Needs"
The Decree No. 1236 limits the procurement of foreign software. It stipulates that only Russian software can be admitted to state and municipal orders, unless Russian software does not exist or it does not fit some of the criteria. Only under these exceptional circumstances organizations is able to purchase software from foreign counterparts.
Coverage Software
RUSSIA
Since January 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Government Decree No. 1746 "On establishing a prohibition on the admission of certain types of goods originating from foreign countries, and amending certain acts of the government of the Russian Federation"
Government Decree No. 1746 dated 21 December 2019 "On establishing a prohibition on the admission of certain types of goods originating from foreign countries, and amending certain acts of the government of the Russian Federation" puts in place a two-year prohibition on the procurement of almost all types of memory storage devices from foreign states for governmental and municipal needs, except for data storage systems included in the unified state register of Russian radio-electronic devices.
Coverage Data storage devices
RUSSIA
Since April 2013
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Federal Law No. 44-Z "On Public Procurement"
According to Art. 14.3 of the Federal Law No. 44-FZ, the Government can establish a ban on the admission of goods, works and services originating from foreign states and impose restrictions restrictions on the admission of these goods, works, services, including the minimum mandatory share of purchases of Russian goods in order to protect the foundations of the constitutional system, ensure the country's defense and state security, protect the internal market of the Russian Federation, develop the national economy, and support Russian producers.
Coverage Horizontal
RUSSIA
Since May 2019, until May 2024
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Antidumping, countervailing duties and safeguard measures on ICT goods
Anti-dumping measure on aluminum alloy strips
In May 2019, the Russian authorities imposed a definitive anti-dumping duty on imports of aluminum alloy strips (HS: 760611) from Azerbaijan and China. These products are used to manufacture components of ICT goods, such as heat sinks, printed circuit boards (PCB), charging cables, hdmi cables, displays, etc. The duty imposed on imports originating from Azerbaijan is 16.18% and the duty imposed on imports originating from China is 13.14%.
Coverage Product: aluminum alloy strips (HS: 760611)
Countries: Azerbaijan, China
Countries: Azerbaijan, China