RESTRICTED  
  
WT/TPR/G/416  
22 September 2021  
(21-7009) Page: 1/33 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
RUSSIAN FEDERATION  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the 
Russian Federation  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the Russian Federation . WT/TPR/G/ 416 • Russian Federation  
 
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Contents  
1   INTRO DUCTION  ................................ ................................ ................................ ..........  4 
2   TRADE AND ECONOMIC OVERVIEW  ................................ ................................ .............  4 
2.1   Economic situation  ................................ ................................ ................................ ....... 4 
2.2   Trade in goods  ................................ ................................ ................................ ............  5 
2.3   Trade in  services  ................................ ................................ ................................ .........  6 
2.4   Investments  ................................ ................................ ................................ ...............  7 
3   CHALLENGES  ................................ ................................ ................................ ...............  9 
4   LIBERALIZATION AND FACILITATION OF TRADE IN GOODS  ................................ ..... 11 
4.1   Customs and tariff policy  ................................ ................................ ............................. 11 
4.2   Improving customs administration  ................................ ................................ ................ 12 
5   ECONOMIC DIVERSIFICATION, PROMOTING TRADE AND INVESTMENT  ....................  13 
5.1   Sectoral policies  ................................ ................................ ................................ ......... 14 
5.1.1    Industrial policy  ................................ ................................ ................................ .......14 
5.1.2    Agriculture and fisheries  ................................ ................................ ........................... 15 
5.2   Development of trade in services  ................................ ................................ .................. 16 
5.3   Improving the investment climate  ................................ ................................ ................ 17 
5.4   Innovative development  ................................ ................................ .............................. 20 
5.5   Digital economy  ................................ ................................ ................................ ......... 20 
6   INTELLECTUAL PROPERTY RIGHTS  ................................ ................................ ............  22 
7   DEVELOPMENT OF COMPETITION  ................................ ................................ ..............  22 
8   EASE OF DOING BUSINESS, TRANSPARENCY AND PUBLIC EXPERTISE  ......................  23 
9   INCLUSIVE ECONOMY  ................................ ................................ ...............................  24 
9.1   Micro, small, and medium -sized enterprises  ................................ ................................ ...24 
9.2   Promoting women's entrepreneurship  ................................ ................................ ........... 25 
9.3   Remote territories  ................................ ................................ ................................ ......26 
10   SUSTAINABLE DEVELOPMENT  ................................ ................................ .................  26 
10.1   Agenda 2030  ................................ ................................ ................................ ............ 26 
10.2   Trade a nd environmental protection  ................................ ................................ ............ 26 
10.3   Trade and development  ................................ ................................ ............................. 27 
11   RUSSIA IN THE WTO  ................................ ................................ ...............................  28 
11.1   Supporting multilateral trading system  ................................ ................................ ........ 28 
11.2   WTO reform  ................................ ................................ ................................ ............. 28 
11.3   WTO negotiations  ................................ ................................ ................................ .....29 
12   REGIONAL AND BILATERAL INTERACTION  ................................ ..............................  30 
12.1   Eurasian Economic Union  ................................ ................................ ........................... 30 
12.2   Free trade agreements  ................................ ................................ .............................. 31 
12.3   Investment agreements  ................................ ................................ ............................. 31 
12.4   International economic cooperation in other fora  ................................ .......................... 31 
12.4.1    The Group of Twenty (G20)  ................................ ................................ ..................... 31 WT/TPR/G/ 416 • Russian Federation  
 
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12.4.2    APEC ................................ ................................ ................................ .................... 32 
12.4.3    BRICS  ................................ ................................ ................................ .................. 32 
12.4.4    Miscellaneous  ................................ ................................ ................................ ........ 32 
13   FURTHER STEPS  ................................ ................................ ................................ ...... 33 
 
 
  WT/TPR/G/ 416 • Russian Federation  
 
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1  INTRODUCTION  
1.1.  Since its first (and the last) WTO Trade Policy Review (TPR), the Russian Federation has 
maintained  the course of economic diversification and increasing investment attractiveness of the 
domestic market, improving legislative regulation, supporting and developing the multilateral trading 
system , countering trade protectionism  (inter alia in the form of unilateral trade restrictions),as well 
as effectively participating in regional integrat ion processes together with further developing of the 
Eurasian Economic Union (EAEU).  
1.2.  This TPR covers the period when global recession and pandemic have changed the parameters 
of the world's economies functioning. Sanitary restrictions have led to a sharp slowdown in economic 
activity and an unprecedented disruption of some production chains. The contraction in economic 
activity caused profound changes in energy markets, and the development of the recession gradually 
affected most sectors of the economy. Th ese changes substantially affected Russia 's foreign trade, 
causing problems comparable to those arising from the crisis of 2009.  
1.3.  International trade, however, continues to have a significant impact on Russia's economic 
development. Despite a relatively lo w share of net exports (calculated as a difference between 
exports and imports) in the structure of GDP, this component significantly contributes to the 
dynamics of gross output. Open and non -discriminatory trade, favourable conditions for capital flows 
and technology, as well as the stability and predictability of the universal rules of international trade 
lie at the core of the sustainability of Russia 's economic development  
2  TRADE AND ECONOMIC OVERVIEW  
2.1  Economic situation  
2.1.  Within the reporting period the ec onomy of the Russian Federation demonstrated reasonably 
stable growth, retaining the 11th position in the world ranking of countries ' nominal gross domestic 
product (GDP), as well as the 6th position in the world ranking of countries ' GDP measured at 
purch asing power parity (PPP). Since the beginning of 2017, there has been a stable growth in final 
consumption, mostly due to an increase in household consumption.  
2.2.  Starting from 2016, the growth rates of Russia 's economy began to accelerate. In 2018, 
economic  growth amounted to 2.8%, compared to 0.2% in 2016. However, in 2019, the GDP growth 
has slowed down to 2% amid general decline of the world economy 's key indicators, due, inter alia, 
to trade conflicts, as well as the trend towards de -globalization and pr otectionism . 
2.3.  In 2020, a rapid expansion of the coronavirus pandemic and the associated instability in world 
oil markets as well as disruptions of global supply chains significantly affected macroeconomic 
indicators1. At the end of 2020, nominal GDP amounted to RUB 106,967.5 billion, decreasing by 
3.0% as compared to 2019. Nevertheless, according to the International Monetary Fund (IMF), the 
Russian economy during the pandemic proved to be quite resilient (see Section  3 "Challenges").  
2.4.  According to the OECD data, the anticipated growth rate of the Russian economy will amount 
to 3.5% and 2.8% in 2021 and 2022 respectively.2 The IMF analysts, in their turn, predict that in 
2021 and 2022 the GDP of the Russian Federation  will increase by 4.4% and 3.1%3 respectively. 
Such numbers result both from the general global trend towards an economic recovery from the  
COVID -19 fallout, and the implementation of a balanced social and economic policy of the Russian 
Federation.  
2.5.  Impro vement of labour productivity and support of employment are among the most important 
priorities of the Government of the Russian Federation . Average annual growth in labour productivity 
from 2016 to 2019 amounted to 2%, and the average annual growth rate o f the number of highly 
productive jobs accounted for 5.7%. Unemployment rate declined steadily during the reporting 
 
1 IMF (2021), World Economic Outlook, April . Viewed at: 
https://www.imf.org/external/datamapper/datasets/WEO . 
2 OECD (2021), Economic Outlook, 18 May. Viewed at: 
https://stats.oecd.org/index.aspx?DataSetCode=EO . 
3 IMF (2021), World Economic Outlook, July . Viewed at: 
https://www.imf.org/external/datamapper/datasets/WEO . WT/TPR/G/ 416 • Russian Federation  
 
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period and amounted to 4.6% in 2019 . However, due to the pandemic, the unemployment rate 
climbed to a record 6.4% in August 2020. As part of  the Government 's stabilization policy, several 
program mes were implemented, including those aimed at restoring the labour market, which made 
it possible to save more than 5.4 million jobs and reduce the unemployment rate to 5.9% by the 
end of 2020.  
2.2  Trade  in goods  
2.6.  Russia is an open economy; foreign trade plays an important role in the country 's economic 
development. Russia 's economy production openness (the ratio of exports of goods and services to 
GDP), according to the World Bank, averaged 27.4%, in 2016 –2020 (while the level of 25% -30% is 
generally considered as an optimal and safe threshold for the sustainable growth of the national 
economy).  
2.7.  Once a downward trend under the price factor influence has been terminated and, in 2016, 
having reached its ' lowest level for the whole of the second decade of the 21st Century 
(USD  285.3  billion), the goods ' export indicator has begun to recover. In 2017 and 2018 it surged 
by 25.4% and 25.7%, respectively, up to USD 449.4 billion. In 2019, following the global dynamics, 
it plunged by 5.6%. The 20.6% decrease in 2020 to USD 336.6 billion was caused by the spre ad of 
COVID -19 pandemic as well as the respective measures implemented to combat it.  
2.8.  During 2016 -2019 Russia's foreign trade turnover increased by 43%. At the same time, exports 
increased by 48.6%, and imports by 34.2%. The positive trend is primarily asso ciated with the 
relative stabilization of prices on world energy markets. However, the rapid expansion of COVID -19 
pandemic in 2020 and the growing number of restrictions imposed by countries have had a negative 
impact on international trade. The decelerat ion of the global economy and the growing number of 
obstacles to its normal functioning led to instability of the world oil markets, as well as disruption of 
global supply chains. They negatively affected Russia 's economy, whose foreign trade turnover 
decreased by 15%. During this period, the destabilization of the situation on the world energy 
markets led to a drop in Russian exports by 20.6%, while imports, consisting mainly of machinery, 
equipment, and vehicles, as well as chemical products, fell by only  5.3%. (See Section  3 
"Challenges").  
2.9.  Fuel and energy products have prevailed in the commodity structure of Russian exports. At the 
same time, the share of these goods has consistently reduced and by 2020 decreased to 49.7% (by 
15.3%). The other important i tems of Russian exports are metals and metal products as well as 
chemical products. Export  of agricultural and food products is gradually increasing, in 2020 it reached 
USD 30.5 billion, and its share rose to 9.0%. Wheat and meslin are among the top ten ex ported 
commodity items (USD 8.2 billion in 2020), and since 2018 the Russian Federation has become a 
global leader in the export of these products. During the period under review, exports of precious 
stones and metals also grew (up to 9.0%, or USD 30.4 bil lion) amid growing investment demand 
for gold and platinum.  
2.10.   The reporting period is also characterized by a stable growth in the share of high -tech goods 
in the total volume of Russian exports: in the period under review, this indicator increased from 
14.5% in 2016 to 26.2% in 2020.  
2.11.   Until 2019, imports had been increasing. In 2020, due to the unfavourable external conditions, 
it decreased by 5.3% to USD 231.0 billion (compared to USD 244.1 billion in 2019). In terms of 
commodity imports, high respective vol umes and shares belong to machinery and technical products 
(USD 110.3 billion, or 47.6% in 2020), more than a half of which are investment products. Imports 
of chemical products have been relatively stable (USD 42.4 billion, or 18.3% in 2020), primarily du e 
to the share of medicaments (USD 7.2 billion) and immunological products (USD 2.8 billion).  
2.12.   In terms of the geographical structure of Russia's foreign trade, the European Union, which 
is Russia's largest trading partner, holds a special place . Even though the EU 's share in Russia's 
trade turnover decreased by 6.9%, in 2016 -2020, trade with the EU accounts for about 34% of 
Russian trade turnover. Economies of the Asia -Pacific Economic Cooperation are the second major 
group of trade partners in t erms of the cumulative turnover volume. Their share increased by 4.1% 
during 2016 - 2020 and amounted to 33.8% at the end of 2020. Among the APEC economies China 
is key partner. Its share in trade turnover during the reporting period increased by 4.3% and WT/TPR/G/ 416 • Russian Federation  
 
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amounted to 18.3% at the end of 2020. The CIS countries comprise the third group of major partners 
in terms of trade turnover. Their share has increased by 0.9% since 2016, amounting to 12.9% in 
2020. The respective share of Russia 's Eurasian Economic Unio n partners in its ' trade turnover has 
amounted to 9.1% by the end of 2020.  
Table 2.1 Geographic structure of  Russian exports of goods , 2016 -20 
(USD billion ) 
Country/country group name  2016  2017  2018  2019  2020  
All countries  285,3  357,6  449,4  424,1  336,6  
Far abroad (non -CIS countries)  247,8  309,5  394,5  370,2  288,0  
including the EU  123,7  151,0  195,4  176,3  136,6  
CIS 37,4 48,1 54,9 53,9 48,5 
1. China  28,0 38,9 56,0 57,3 49,1 
2. Netherlands  29,3 35,6 43,4 44,8 24,8 
3. UK 6,9 8,7 9,7 13,3 23,2 
4. Germany  21,3 25,7 34,2 28,0 18,6 
5. Belarus  14,1 18,6 22,0 20,7 16,0 
6. Turkey  13,6 18,7 21,3 21,1 15,9 
7. Kazakhstan  9,4 12,4 13,0 14,3 14,0 
8. Korea, Rep. of  10,0 12,3 17,8 16,4 12,5 
9. United Sates  9,3 10,6 12,5 13,0 10,8 
10. Italy  12,0 13,8 16,4 14,3 10,1 
Source:  Information provided by the Russian authorities.  
Table 2.2 Geographic structure of  imports of goods in the Russian Federation , 2016 -20 
(USD billion ) 
Country/country group name  2016  2017  2018  2019  2020  
All countries  181.8  226,9  238,2  244,1  231,0  
Far abroad (non -CIS countries)  162,5  202,0  211,7  216,7  206,1  
including the EU  66,4 82,9 85,2 84,6 78,7 
CIS 19,3 24,9 26,5 27,4 25,0 
including the EAEU 13,6 17,8 18,6 19,9 18,5 
1. China  38,1 48,1 52,2 54,1 54,9 
2. Netherlands  19,5 24,2 25,5 25,1 23,4 
3. UK 10,7 12,6 12,5 13,2 13,0 
4. Germany  9,4 12,0 12,4 13,1 12,6 
5. Belarus  7,8 10,1 10,6 10,9 10,2 
6. Turkey  8,5 9,6 9,6 8,6 8,1 
7. Kazakhstan  5,1 6,9 7,0 8,0 7,2 
8. Korea, Rep. of  6,7 7,8 8,8 9,0 7,1 
9. United Sates  2,2 3,4 4,2 5,0 5,1 
10. Italy  3,6 5,0 5,3 5,7 5,0 
Source:  Information provided by the Russian authorities.  
2.3  Trade in services  
2.13.   Unlike  trade in goods, where Russia runs a significant surplus, Russia's international trade in 
services remains in the "red zone " (first of all due to the negative balance of tourist and other travel 
services during the pandemic).  
2.14.   In trade in services, in the period from 2016 to 2019, there was a stable growth of foreign 
trade turnover, the average annual rate of which was 3.9%. Even though the export of services 
increased by 22.3%, and the import of services increased by 32.2%, in the period from 2016 to 
2019,  the negative trade balance has remained.  
2.15.   At the end of 2020, the Russian foreign trade turnover of services amounted to 
USD 111.1  billion, having decreased by 11.3% compared to 2016 and by 30.8% compared to 2019. 
The main reason for the decline was a rapi d spread of coronavirus infection and the subsequent 
massive introduction of restrictions, which has led either to a prohibition on conducting activities in 
certain industries, or to a complete stop of performance of several sectors of the global economy. WT/TPR/G/ 416 • Russian Federation  
 
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Particularly, restrictions on cross -border movement had a negative impact on international trade in 
the tourism and transport sectors, which decreased by 63% and 19%, respectively.4 
2.16.   Russian export of services is still dominated by transport services due to the country's 
geographic location. Up until 2018 their volume and share had been increasing (USD 22.1 billion, or 
34.2%). Until 2019, there was an upward trend in exports of other business services 
(USD  13.0 billion, or 21.0%), primarily du e to such subgroups as professional services and 
management consulting services; technical, commercial, and other business services. Exports of 
modern telecommunications, computer and information services have grown steadily 
(USD  5.9 billion, or 12.6% in 2 020).  
2.17.   Russia 's services ' imports are dominated by travel services (mainly in the sphere of tourism) 
- in 2019 they have reached USD 36.2 billion, or 36.6%. Imports of the same type of services 
decreased most of all in 2020 (4 times to USD 9.1 billion). Unt il 2019, there was a growth of imports 
of other business services (USD 21.0 billion, or 21.3%), transportation services (USD 15.4 billion, 
or 15.7%), charges for the use of intellectual property (USD 6.9 billion, or 7.0%).  
2.18.   In services trade, the European U nion, whose share in the foreign trade turnover of services 
in 2020 amounted to 37.9%, is Russia 's key trade partner. During the reporting period, the share 
of Asia -Pacific Economic Cooperation economies in Russian turnover in services averaged 17.5%, 
while the share of CIS countries averaged 9.3%. In country detailing, Germany (6.7%), the U nited 
Sates  (6.1%), Cyprus (5.9%), and Switzerland (6.1%) account for a significant share in Russia 's 
services trade.  
2.19.   Until 2019, there was an upward trend in services e xports to the EU (up to USD 20.8 billion, 
or 33.6%), China (up to USD 4.0 billion, or 6.5%), the CIS, before all at the expense of the EAEU 
(up to USD 5.3 billion, or 8.6%). At the same time, since 2019, the export of services to Switzerland 
and the United  States has been decreasing. Imports of services tend to grow (up to 2019 - in 
absolute terms, up to 2020 - also in relative terms) from countries such as Ireland (5.9% in 2020), 
China (5.4%). Trade with the EAEU developed in different directions, on avera ge in 2016 –2020 the 
Union accounted for 4.1% of Russian imports of services.  
2.4  Investments  
2.20.   During 2016 -2019, foreign direct investment flows abroad ranged from USD 22 billion to 
USD 37 billion per year, and in 2020 it fell to USD 5.3 billion.  
2.21.   The geographica l structure of outward FDI is dominated by the EU countries, whose share 
tended to grow and reached 72.6% in 2019. As of the end of 2020 in terms of the volume of the 
Russian FDI stock, Cyprus has been leading by a wide margin (USD 200.4 billion, or 42.6% of the 
total).  
 
4 World trade primed for strong but uneven recovery after COVID -19 pandemic shock. Viewed at: 
https://www.wto.org/english/news_e/pres21_e/pr876_e.htm . WT/TPR/G/ 416 • Russian Federation  
 
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Chart 2.1 Dynamics of the global volume of foreign direct investment and the share of 
Russia in the total volume of world FDI and national GDP , 2006 -2018  
USD billion and% of the total  
 
Source:  Bank of Russia.  
2.22.   Inward FDI has come mainly from the EU, and in some yea rs, there were high investment 
rates from countries and territories such as Singapore ; Hong Kong,  China;  Jersey, etc. In terms of 
the volume of inward FDI stock in the Russian Federation as of the end of 2020, Cyprus has been 
the leader (USD 153.4 billion,  or 28.6% of the total). Bermuda Islands and the Netherlands have 
also demonstrated significant results  (USD 48.0 billion, or 8.9% and USD 46.7 billion, or 8.7%, 
respectively).  
2.23.   The largest FDI recipient industry is the mining industry, followed by the manu facturing 
industry (primarily metallurgy) and services (primarily wholesale and retail trade) . 
0.0%2.0%4.0%6.0%8.0%10.0%12.0%
05001,0001,5002,0002,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Chart 1.  Dynamics of the global volume of foreign direct investment and the share of Russia in the 
total volume of world FDI and national GDP, USD billion and% of the total
Total global FDI (USD, billion) The share of FDI in Russia in total global FDI (%) The share of FDI in GDP of Russia (%)
Source: Bank of Russia.WT/TPR/G/ 416 • Russian Federation  
 
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Chart 2.2 Accumulated direct investments in Russia by sector as of the end of 2020  
USD billion  
 
Source:  Bank of R ussia.  
3  CHALLENGES  
3.1.  Since the Russia's first Trade Policy Review in the WTO, despite a number of challenges, the 
Russian economy has been relatively resilient, in particular due to a balanced fiscal and monetary 
policy. At the same time, several key global f actors have exerted a restraining effect on the Russian 
economy. In effect, Russia 's trade and  investment policy has been formulated with due consideration 
of these factors.  
COVID -19 
 
3.2.  Like other countries, Russia faced a significant slowdown in economic activity during the 
lockdown period. Russia 's GDP declined by 7.8% in the 2nd quarter of 2020, by 3.5% in the 3rd 
quarter of 2020, by 1.8% in the 4th quarter compared to the same periods of 2019. The greatest 
decrease was in demand driven sectors of the economy. At the same time, the scale of the decline 
in basic sectors (with the exception of trade) was more moderate.  
3.3.  A considerable safety margin, which had been created earlier through a consistent and 
balanced macroeconomic policy, facilitated t he adjustment of the economy to the external shocks. 
Introduction of the fiscal rule and enhancement of the public finance stability, reduction of inflation 
to the target of 4% and its ' maintenance at this level for several years, promotion of the financia l 
sector stability, as well as the reduction of the Russian economies ' dependence on the external 
factors has helped to mitigate pandemic -related shock of an unprecedented scale and nature. The 
current account surplus of the balance of payments in 2020 com pared with 2019 decreased due to 
a reduction in exports against the background of a recession in the global economy and a decrease 
in oil prices. This decline was partially offset by a decrease in imports, including imports of services 
due to closed border s with most countries. The foreign currency sales by the Bank of Russia under 
the budget rule have continued to play a balancing role in the domestic foreign exchange market. 
The economic recovery, which has begun in the second half of 2020, has been facil itated by the 
measures taken by the Government of the Russian Federation and the Bank of Russia with the aim 
to overcome the economic consequences of the coronavirus pandemic and to provide support both 
to the citizens and the businesses, together with the  transition of the Bank of Russia to a soft 
monetary policy.  
3.4.  As part of the response to the COVID -19 pandemic, the Government of the Russian Federation 
and the Eurasian Economic Commission have implemented measures to stabilize the epidemiological 
23%
25%
17%16%13%6%Accumulated direct investments in Russia by sector as of the end of 2020, USD billion
Manufacturing
Mining
Wholesale and retail trade
Financial and insurance activities
Professional, scientific and technical activities
Real estate activities
Source: Bank of RussiaWT/TPR/G/ 416 • Russian Federation  
 
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situatio n. These measures have included an introduction of a duty -free regime which has been in 
effect since March 2020 for the import of individual components and materials to produce 
pharmaceuticals and disinfectants, medicine and medical equipment, personal pro tective equipment. 
These goods have also been exempted from value -added tax.  
3.5.  To maintain an uninterrupted and stable supply level of mass -produced goods the Russian 
Federation adopted a series of recommendations regarding conformity assessment for applican ts 
and product certification bodies for the period of 15 March – 31 December 2020. These 
recommendations have provided for the possibility of postponing the period of scheduled inspection 
control in relation to valid certificates of conformity for serial p roducts, issuing new certificates based 
on a previously conducted conformity assessment, and remotely assessing conformity.  
Rising global protectionism and discrimination  
 
3.6.  Russia continues to face a number of challenges that hinder the full realization of its potential 
as a participant in international trade. A high level of protectionist pressure remains, due to both 
bilateral issues and global problems.  
3.7.  Thus, Russia, being one of the leading steel producers, continues to face serious proble ms 
caused by excess global steelmaking capacity. Despite some progress made in reducing the global 
overcapacity during the Global Overcapacity Forum in 2016 -2019, capacity growth has resumed in 
2020, even shortly before the pandemic in 2020, steel demand d ecreased by 1.7%. According to 
the OECD estimates, in the long term the demand for steel will amount to about 1% annually.  At 
the same time, the growth of restrictions on the imports of steel products has remained. According 
to data from the WTO report on the G20 trade measures for October 2020 - May 2021, the steel 
sector has still accounted for the most of the initiated anti -dumping investigations (118 out of 176 
in 2019). In the recent years, the introduction of the unilateral measures by the individual WTO 
Members with the purpose of closing their markets from the import of these products has 
exacerbated the problem.  
3.8.  In the bilateral context, the imposition of sanction on Russia by individual economies has 
remained. Politicization of foreign economic and  trade relations is a serious challenge. Inclusive 
growth of the world economy has been constrained by the replacement of the WTO norms with the 
other "rules", together with the unfair competition methods, protectionist measures, trade wars, and 
unilateral  sanctions. All this has led to the fragmentation of the global economic environment, and 
has negatively affected the socio -economic development. Some of these measures have led to the 
disruption of established production and supply chains and results in t he need to develop import 
substitution plans based on domestic supply.  
3.9.  The tendency of evening out the natural competitive advantage of countries, that have cheap 
factors of production, in particular – natural resources, persists. New forms of discriminati on are 
emerging.  
Sustainable Development Challenges  
 
3.10.   Sustainable development in the global context is understood as development that meets 
modern -day needs without undermining the ability of future generations to meet their own needs. 
In terms of the key m arkets, this trend assumes a long -term reduction in the global consumption of 
coal, oil and gas together with a promotion of demand for renewable energy, low -carbon 
technologies, food, and disaster -resilient finance and infrastructure. Poverty reduction, a s well as 
the relevance of the global aim of improving the quality of education and health care contribute to 
the creation of new markets and transformation of the supply and demand structure in favour of 
factors that stimulate high -quality, but possibly s lower growth in key regions.  
3.11.   Climate change is a global challenge that requires joint efforts at an international level. This 
problem is interdisciplinary in nature and affects many areas, including trade and economy. Recently, 
the "green economy" concept  has been widely transforming into concrete action program mes that 
have a practical dimension from the economic point of view. Measures (including unilateral 
measures) affecting market conditions are being introduced under the pretext of protecting the 
environment. There is a growing number of examples of Article 3 of the UNFCCC violations when 
measures to combat climate change are being used to restrict international trade. At the same time, WT/TPR/G/ 416 • Russian Federation  
 
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the multiplication of such practices (including through the impos ition of certain approaches on the 
other countries) entails a restructuring of the industrial production system, significant changes in 
traditional trade. Russia's policy is based on the presumption that  climate change mitigation efforts 
should not restric t competition in world trade,  or lead to  inequality, introduction of discriminatory 
practices, and trade barriers.  
Challenges of the Fourth Industrial Revolution  
 
3.12.   The recent shift away from the traditional modes of services supply towards the new digital 
solutions has been fundamentally changing the international trade landscape. New business formats 
and models are emerging, the importance of online platforms and ecosystems in services trade is 
growing. In addition to the new opportunities, a widespread tec hnology adoption also carries 
potential risks both for the participants and market stability. To manage such risks non -standard 
methods may be required. There is a trend towards using regulation of access to technology to 
purposefully isolate countries fro m access to competitive advantages.  
3.13.   In addition, the most important challenge for all key technology trends, especially for 
digitalization, is the lag of global regulatory standards from the pace of practical implementation of 
technologies.  
3.14.   The current G ATT and GATS rules aim to maintain a stable, non -discriminatory, and 
predictable environment in global trade by subjecting governments to strict rules in regulating 
market access and supporting companies and industries. However, they contain gaps, flaws or  
exceptions that negatively affect the competitive environment. For instance, the principles of 
providing certain types of state support are not yet regulated. This leads to the emergence of 
countries with inefficient and excessive production capacities wh ich suppress the normal 
development of the respective segments of the global market. In addition, the strengthening of 
economic positions of transnational corporations (TNCs) leads to an increase in their political 
influence, which is manifested in the seq uential "capture" by TNCs ' of regulatory spheres that were 
previously within the competence of states and international government organizations. The degree 
of control of such companies over the global value chains (GVCs) and supply chains of goods, 
services and technologies is gro wing. There is a risk that in the near future the "rules of the game", 
including the conditions of access to GVCs and world markets, as well as technologies, will be 
completely dictated by TNCs.  
3.15.   To level the competitive landscape and ensure equal opportuni ties for all participants in 
international trade, it is necessary to strengthen its rules. Effective international cooperation and 
political dialogue will be required, involving both developed and developing countries. There is no 
other platform for develo ping relevant multilateral rules than the WTO. This work should be aimed 
at further developing the principles of competitive neutrality in a broad sense and considering the 
position of all WTO Members, providing fair conditions for the development of compe tition between 
all companies and in all sectors of industry, agriculture, and services that participate in international 
trade.  
4  LIBERALIZATION AND FACILITATION OF TRADE IN GOODS  
4.1  Customs and tariff policy  
4.1.  The main objectives of the customs and tariff policy of Russia are to stimulate the inflow of 
foreign direct investment into the Russian economy, and to cut direct and indirect costs of the 
international economic activity participants.  
4.2.  Since the first Rus sia's Trade Policy Review in the WTO, the average weighted customs import 
tariff rate has decreased from 5.22% in 2016 to 4.49% in 2020.  
4.3.  The completion of the implementation of tariff commitments in the WTO contributed to the 
reduction of the average weigh ted customs import duty rate. Since 2016, as part of the fulfilment 
of tariff commitments, import duties have been reduced on more than 2,700 tariff lines, including 
on dairy products, certain types of vegetables, sunflower oil, alcoholic beverages, fish, clothing, 
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4.4.  Since 1 January 2020, the tariff -rate quota for import of pork meat has been eliminated and 
replaced with a flat ad valorem  rate of 25%.  
4.5.  At the same time, it was not only the WTO commitments that were taken into account when 
making decisions on the reduction of customs duties. The other factors included the necessity of 
creating the required conditions for the effective integration of Russia into the w orld economy, 
reduction of costs related to the importation of intermediate products and equipment that participate 
in the value chains on the territory of Russia, and modernization of technological production. Such 
decisions were taken  in the food, metall urgical, pulp, chemical and other industries.  
4.2  Improving customs administration  
4.6.  Russia joined the WTO Trade Facilitation Agreement (TFA) in March 2016 .5 For Russia , all TFA 
provisions have been binding from the moment the agreement has entered into force. In March 
2019, Russia has submitted to the Committee on Trade Facilitation its transparency notification n in 
accordance with Articles 1.4, 10.4.3, 10.6.2 and 12.2.2 of the TFA.  
4.7.  During the reporting period, a consistent work has been carried out, taking in to consideration 
the TFA provisions, to simplify customs procedures, reduce the time required for customs operations, 
eliminate unnecessary barriers in the field of customs regulation with the aim to promote favourable 
conduct of foreign trade activities, as well as to automate customs operations and reduce the time 
for the release of goods.  
4.8.  On 1 January 2018, the Customs Code of the Eurasian Economic Union (CC of the EAEU) came 
into force. It has changed the approaches to customs regulation in the EAEU and  created the basis 
for the development of customs information technologies for the years to come. It has also 
established priority of the electronic customs declaration. It has made it possible to carry out 
customs operations automatically, without the par ticipation of customs officials through the 
information systems of customs authorities. At the same time, it also provides for a possibility to 
submit goods ' declarations and transit declarations without having to submit to the customs 
authority documents,  which served as the basis for the completion of the respective declarations, 
which has allowed to shift the "main burden" of customs control from the stage "before the release 
of goods" to the stage "after the release of goods".  
4.9.  Since 2018, interaction pr ocess between interested parties and customs authorities has 
completely switched to electronic document management. It covers the delivery of public services, 
the administration of payment of customs duties and taxes, post clearance audit, appeals of 
decisions, actions (inaction) of customs authorities)6. 
4.10.   The Customs Code of the EAEU provides for the possibility to use the "single window " system 
when performing customs operations, including those related to the arrival, departure, and customs 
declaration of goods, as a legal consolidation of the principle of one -time submission of documents 
to the controlling authorities during customs ope rations.  
4.11.   With the adoption of the Customs Code of the EAEU, the timeframe for the release of goods 
has been reduced to 4 hours from the moment of registration of the customs declaration provided 
that the results of the inspection of the customs declaratio n did not reveal the need to request 
additional documents, based on which the declaration was completed, or to conduct customs control 
methods related to the verification of goods.  
4.12.   During the period under review, there was a fundamental improvement in the institution of 
Authorized Economic Operators. In particular, the range of special support measures has been 
expanded. Now the status of Authorized Economic Operators can be obtained by almost all 
participants in the supply chain of goods (carriers, forward ers, warehouse owners, customs 
representatives).  
 
5 Federal Law of 2 March 2016 No. 38 -FZ "On the adoption of the Protocol on Amendments to the 
Marrakesh Agreement Establishing the WTO."  
6 Federal Law of 3 August 2018 No. 289 -FZ "On customs regulation in the Russian Federation and on 
amendments to certain legislative acts of the Russian Federation".  WT/TPR/G/ 416 • Russian Federation  
 
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4.13.   The measures also include priority order of customs operations, storage, and customs 
operations with goods in the warehouses of an Authorized Economic Operator, release of goods 
before filing a customs decl aration, remote release, participation in experiments, the absence of 
requirement to provide security when goods are placed under the customs procedure of customs 
transit, additional verification, customs examination and others. The possibility of applying  special 
simplifications throughout the customs territory of the EAEU is provided for and has laid the 
foundation for the possibility of mutual recognition of Authorized Economic Operators with the third 
countries.  
4.14.   Since 2017, a subject -oriented model of the risk management system has been implemented 
by the customs authorities of the Russian Federation. It provides the distribution of foreign economic 
activity participants into the categories of low, medium, and high -risk levels, depending on the 
likeliho od of violation by them of customs legislation together with an appropriate differentiated 
application of customs control measures in respect of such participants.  
4.15.   Measures to reduce the time required to perform customs operations and improve the 
conditio ns for doing business are also being implemented. The undertaken work has made it possible 
to ensure a reduction in the time required for undergoing customs clearance procedure of goods that 
are not identified as risky deliveries, to 1 hour 18 minutes upon  their importation and up to 49 
minutes upon their exportation.  
5  ECONOMIC DIVERSIFICATION , PROMOTING TRADE AND INVESTMENT  
5.1.  The Russian Federation attaches great importance to the issues of economic diversification, 
which is being achieved through the impleme ntation of  a wide range of measures and policies aimed 
at improving the business environment and investment climate, developing international trade and 
economic cooperation, promoting technological modernization, and supporting micro, small and 
medium ente rprises (MSMEs).  
5.2.  The share of the oil and gas sector in the country's GDP, having reached its maximum level in 
2018 - 21.1%, has begun to steadily decline and by 2020 it has dropped to15.2%.7 In 2020 the 
share of oil and gas revenues in the total federal budget revenues has amounted to 28%8 and has 
decreased by 15% compared with 2016.9  
5.3.  During the period under review, the share of oil and gas export revenues in the total volume 
of the Russian Federation's foreign trade revenues has demonstrated a declining tendency: in 2020, 
the share of oil and gas revenues in the total exports has amoun ted to 49.6%, which is 8.5% less 
than in 2016. It should be noted that the share of MSMEs in the non -primary exports has 
demonstrated stable growth, amounting to 17.2% in 2019.  
5.4.  The State Programme "Development of Foreign Economic Activity" plays an importa nt role in 
the diversification of the economy and, specifically, exports.10  
5.5.  The national project "International Cooperation and Export" is aimed at forming competitive 
sectors in the manufacturing industry, agriculture, and services sector by reducing adm inistrative 
procedures and barriers international trade, promoting interaction of international trade entities 
based on the " single  window" principle, as well as facilitating the formation of a common market for 
goods, services, capital and labor within th e EAEU, including through the elimination of barriers and 
restrictions, as well as the abolition of exemptions in economic cooperation.  
 
7 Rosstat data  
8 Accounts Chamber of the Russian Federation, Operational Report on the imple mentation of the federal 
budget and budgets of state extra -budgetary funds of the Russian Federation (January – December 2020). 
Viewed at: https://ach.gov.ru/audit/oper -2020. 
9 Accounts Chamber of the Russ ian Federation, Analytical report on the implementation of the federal 
budget and budgets of state extra -budgetary funds of the Russian Federation (January – December 2018). 
Viewed at: https://ach.gov.ru/promo/analytical -report -federal -budget -2018/report.html .  
9 State programme "Development of foreign economic activity" . Viewed at: 
http://government.ru/ rugovclassifier/854/events/ . 
10 State programme "Development of foreign economic activity" . Viewed at: 
http://government.ru/rugovclassifier/854/events/ . WT/TPR/G/ 416 • Russian Federation  
 
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5.6.  In 2015, in order to increase the availability and transparency of procedures for obtaining state 
support for exporters,  JSC "Russian Export Center" (part of the VEB.RF Group) (hereinafter - JSC 
"REC") was established. The most important areas of work of JSC "REC" include the creation of a 
"Single Window" service, which provides for an online access to government and busine ss services 
that accompany companies ' export, as well as the development of a system of voluntary certification 
and labelling "Made in Russia ", which allows to guarantee the reliability of the manufacturer and the 
safety of manufactured products to the customer.  
5.7.  The activities of export support institutions comply with the WTO rules and regulations. The 
REC Group also specializes on providing i nformation and consulting support to companies that are 
interested in promoting their products in the world markets. REC JSC assists companies in 
participating in exhibitions and fairs, promoting Russian brands abroad, searching for foreign 
partners, inclu ding through the organization of business fairs and business missions, supporting the 
placement and promotion of products of the Russian companies on the international electronic 
trading platforms, conducting marketing research on the conjuncture of foreig n markets, and also 
carries out educational activities.  
5.1  Sectoral policies  
5.1.1   Industrial policy  
5.8.  The main objective of the Russian industrial policy is to form of a high -tech, competitive 
industry, that would contribute to the diversification of the Russian eco nomy.  
5.9.  The Federal Law of 31 December 2014 No. 488 -FZ "On industrial policy in the Russian 
Federation" remains the key legislative act that determines the major vector of Russian industrial 
policy.  
5.10.   Since 2014 in order to form a competitive sector in the c ivil industries of the Russian 
Federation that would ensure the achievement of national development goals, the state programme 
"Development of Industry and increasing its competitiveness" has been implemented. The main 
directions of the industrial policy a re: 
5.11.   innovation policy that promotes the establishment of state guidelines and incentives for an 
innovative development model;  
5.12.   structural policy that encourages intersectoral and interregional "overflow" of capital with the 
aim of ensuring financial support  for the modification of sectoral and territorial industrial structures 
in accordance with the goals of industrial policy;  
5.13.   investment policy that encourages investment in the development of production and 
production infrastructure.  
5.14.   According to Rosstat, th e industrial production index (IPI) in Russia has been growing up until 
2020. In 2018, it was 103.5 as compared to 2017, in 2019 - 103.4, and in 2020 – 97.7. The drop in 
IPI in 2020 was caused by the COVID -19 the pandemic. At the same time, at the end of 2 020 
manufacturing production has demonstrated an increase of 0.3% as compared to 2019, while the 
respective indicator for mining production has demonstrated a decrease, primarily due to the 
consumption contraction as a result of the quarantine. In January -May 2021 the IPI exceeded the 
corresponding indicator for the previous year by +3.2 %. At the same time, the analysis of UNIDO 
data has shown that in terms of the IPI, Russia 's manufacturing industry has ranked 5th among 16 
countries with a developed manuf acturing industry.  
5.15.   Industrial parks, industrial technopolises and industrial clusters are being developed with the 
aim of promoting territorial development of Russia 's industry. By the end of 2020, 258 industrial 
parks and 73 industrial technopoli ses have been created and are now successfully operating.  
5.16.   In 2021, the Strategy for Combating Illicit Trafficking of Industrial Products until 2025 was 
approved with a special focus on industries subject to special monitoring. Such industries include 
chemical, ele ctronic, food and light industries, pharmaceuticals, the automotive industry, children's 
goods industry, agricultural engineering and folk arts and crafts. As part of the strategy, control over WT/TPR/G/ 416 • Russian Federation  
 
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the turnover of relevant goods is gradually introduced, which contributes with minimal costs to a 
sharp reduction in illegal, pirated production and trade.   
5.17.   On 2 March 2021, the reform of the standardization institutes ' association was completed 
through the creation of the Federal State Budgetary Institution "Russian  Institute of Standardization" 
with the aim to introduce a more advanced organizational and legal system to manage and 
implement state policy in the field of standardization. Moreover, on 15 November 2019, the 
Government of the Russian Federation has adopted a Roadmap for the development of 
standardization in the Russian Federation for the period up to 2021.  
5.1.2   Agriculture and fisheries  
5.18.   The agro -industrial complex is one of the key drivers of the Russian export growth in the 
recent years. Since 2010, its average annual growth rate has exceeded 10%. Over the past ten 
years, Russia's share in the global food exports has increased more than twice. Among the factors 
that ensure the steady growth of Russian agri -food exports is its noticeable specialization (ce reals, 
fish and vegetable oils in total provide almost 2/3 of Russian agro -industrial exports). This allows 
focusing on a gradual improvement of competitiveness.  
5.19.   In addition to the growth of the quantitative indicators of agricultural production work has 
been carried out to switch to the high value -added production with better quality products which has 
contributed to an increase in the marginality of the sector.  
5.20.   The organic production niche is being developed. In January 2020, the law on organic products 
came into force, which laid the legal basis for the production and circulation of these products in the 
Russian Federation.  
5.21.   The state agrarian policy of the Russian Federation is aimed at ensuring stable socio -economic 
development of rural areas and increa sing agricultural productivity, thus ensuring guarantees for 
food security. The development of economic activities in the agricultural sector contributes to these 
objectives.  
5.22.   The strategic goal of the Russian agricultural policy is to provide citizens of the Russian 
Federation with available, safe and high -quality, agricultural products, raw materials and foodstuffs 
in volumes corresponding to the recommended consumption standards. Agricultural domestic 
support is provided under the State Progr amme for Agricultural Development and Regulation of 
Agricultural Products, Raw Materials and Food Markets.  
5.23.   The Russian Federation seeks to develop domestic support measures with no or minimal 
trade -distorting effects, including measures aimed at supporting  research, training, pest, and 
disease control, as well as generally available public infrastructure services.  
5.24.   Methods for preventing the infractions of mandatory safety and quality requirements for 
agricultural products, raw materials and foodstuffs are c onstantly being improved at all stages of 
sectoral production and circulation in the consumer market.  
5.25.   The Russian Federation uses modern tools for the development of agriculture, primarily 
associated with the digital transformation of the sector. The Russi an Federation carries out extensive 
work to develop digital services complex that would allow to optimize costs and increase the 
efficiency of production and management processes.  
5.26.   Russia 's agricultural policy is aimed at ensuring the right balance between growth and 
development. Special attention is dedicated to addressing social problems related to employment, 
demography, raising living standards, and developing rural areas. Improving the quality of life of 
the rural population is ensured through the imple mentation of measures aimed at creating new small 
and medium -sized enterprises, improving housing conditions, increasing the availability of social 
infrastructure facilities, including road construction.  
5.27.   Fisheries sector plays an important role in maintain ing nutrition and food security of the 
Russian Federation, while ensuring conservation and rational use of aquatic biological resources.  WT/TPR/G/ 416 • Russian Federation  
 
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5.28.   The strategic policy on the development of the fisheries sector includes extraction and 
processing of aquatic biologica l resources, transportation and storage of fish and fish products, 
aquaculture, artificial reproduction of the aquatic biological resources, wholesale trade in fish and 
fish products, comprehensive operation and repairing of fishing vessels, scientific and  research 
activities, education and training, promotion and marketing, thereby creating a sustainable cycle of 
economic activity in the fisheries sector.  
5.29.   In its fisheries policy, the Russian Federation aims to foster robust and resilient growth, 
following the principles of ensuring national food security, sustainable use of marine living resources, 
human resources development and minimization of negative environmental impact. In addition, the 
Russian Federation pays special attention to the promotion of hig h value -added vertical chains, 
advancement of productivity and operational efficiency of production assets, stimulation of the 
development of technologies and equipment for processing, and preserving fish and fish products, 
promotion of zero waste, energy -saving and innovative technologies in the course of fishing, 
processing and transportation of aquatic biological resources.  
5.2  Development of trade in services  
5.30.   The development of the service sector is of great importance for the economic diversification 
of the Russian economy.  
5.31.   Russia is in the top 20 countries in terms of foreign trade in services. The services sector 
accounts for 62% of the added value of GDP. In 2020, the key sectors of exported services were 
transport services (34.2%), business services (24 .6%), telecommunications, computer and 
information services (12.6%), construction services (10.0%), travel (6.1%). The Purchasing 
Managers' Index (PMI) indicators have demonstrated a steady post -Covid recovery of economic 
activity in the services sector in  Russia. In September 2020, the PMI has reached 53.7% versus 
52% of the global index.  
5.32.   During the reporting period, there have been many significant changes in the service sector.  
5.33.   Stability of the banking sector has increased . A few recommendations and sta ndards of the 
Basel Committee on Banking Supervision (BCBS) were integrated into the banking regulation . 
Transition to the International Financial Reporting Standard (IFRS) has been undertaken. Transition 
to proportional regulation depending on the type of banking license  has made it possible to 
differentiate capital requirements, reporting forms and mandatory standards, depending on the 
importance of banks for the stability of the financial market, the scale and complexity of their 
operations. In 20 17, a mechanism for the financial rehabilitation of banks, which provides for the 
financing of bank rehabilitation by the Bank of Russia, was introduced. The implementation of this 
mechanism made it possible to minimize the expenditure of state funds alloc ated for the 
implementation of measures for the financial rehabilitation of banks and to shorten the timeframes 
for taking measures to prevent bankruptcy.  
5.34.   The level of digitalization has increased. In 2020, the export of telecommunications, computer 
and in formation services has grown by 51% (as compared to 2016). The digitalization of financial 
services has been realized at an accelerated pace. To transfer financial services into a digital 
environment and increase their accessibility for consumers, a mechan ism for remote identification 
of an individual client using biometric personal data was introduced. In 2018, in order to implement 
this mechanism, a digital platform for remote identification of citizens was created - the Unified 
Biometric System (UBS). Cu rrently, credit organizations as well as other organizations supervi sed 
by the Bank of Russia that carry out operations with money or the other property, when providing 
services to the customers (operations or transaction), have the right to identify a cli ent – a natural 
person  or a representative of a client  that is  a legal entity empowered  to act on behalf of a legal 
entity and is an individual without a power of attorney  – without personal presence by establishing 
and confirming the reliability of inform ation about them, including through the use of a Single 
biometric system (subject to a number of conditions). The Fast er Payment System (FP S) is an 
infrastructural project of national significance developed by the Bank of Russia, launched in 
January  2019. The FBP is aimed at promoting competition, improving the quality of payment 
services, expanding financial accessibility and reducing the cost of payments for the population. 
Currently, the FBP has the ability to make transfers between the citizens' account s, as well as WT/TPR/G/ 416 • Russian Federation  
 
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payments to the legal entities and to the citizens (C2C, C2B and B2C transfers), including through 
the use of QR codes.  
5.35.   The legal foundation for the functioning of marketplaces and online platforms has been 
developed, which provides for the online interaction of financial organizations and issuers, on the 
one hand, and financial services ' consumers, on the other, in order to ensure the possibility of 
financial transactions. For instance, requirements concerning activities of the operators  of such 
financial platforms have been developed. Issues concerning the conclusion of transactions with 
financial organizations using information technologies have also been settled.   
5.36.   Access to the Russian market has been liberalized for branches of foreig n insurers. In 
accordance with the Russia 's WTO commitments, amendments have been made to the Russian 
federal legislation, according to which, starting from August 22, 2021, commercial presence of 
foreign insurance organizations through the creation of bra nches is allowed in the territory of the 
Russian Federation. At the same time, the established conditions for the admission of foreign 
insurance organizations are comparable with the respective conditions provided for the Russian 
organizations.  
5.37.   Tourism dev elopment . During the Confederations Cup, as well as the World and European 
Football Championships, visa -free entry was provided for foreign spectators who had a Fan ID and 
an entrance ticket to the match. As a result of the introduction of this measure, ex port of travel 
services has increased from USD 7.8 billion in 2016 to USD 11.6 billion in 2018. With the aim to 
increase the number of travels in Russia up to 140 million per year by 2030, a national project 
"Tourism and hospitality industry" was developed . 
5.38.   Recognition of diplomas of foreign organizations. In 2021, the procedure for selecting foreign 
educational and scientific organizations, the diplomas of which do not need to be confirmed in Russia, 
has been simplified. Several bilateral agreements on the  mutual recognition of educational 
documents were signed with several WTO Members, including Hungary, Cambodia, Cyprus, Malta, 
Nicaragua and the Slovak  Republic . The list of international ratings of foreign universities for the 
automatic recognition of the ir diplomas in Russia has also been expanded. The requirement for 
foreign educational and scientific organizations to be included simultaneously in all ratings has been 
cancelled, and the number of positions in the ratings has been increased from 300 to 50 0. 
5.3  Improving the investment climate  
5.39.   The main objective of Russia's investment policy is to increase the share of investments 
creating high added value, including through the inflow of foreign direct investment.  
5.40.   The main efforts of the Government of the Rus sian Federation in this area are focused on 
providing conditions for the expansion of production and investment activity of investors, including 
medium and small enterprises, by increasing the predictability of the economic environment and 
creating stable,  non-disruptive conditions for doing business, simplifying the conditions for doing 
business and reducing business costs, reducing the overall level of operational risks in the economy, 
liberalizing corporate legislation (including through the implementati on of corporate law institutions 
used in foreign jurisdictions), strengthening anti -offshore and harmonizing tax policies with Russia's 
EAEU partners, reforming control and supervisory activities, further territorial development, as well 
as increasing the economic potential and investment attractiveness of territories by increasing the 
availability and quality of infrastructure.  
5.41.   According to the EY Study "Investment Climate in Russia  - Foreign Investors  Perception ", 
foreign investors note that regional authorities are making more efforts to improve the investment 
climate than a few years ago and are improving the business environment to attract investment 
from foreign companies. Thus, investors "see the potential of the Russian economy and are i nclined 
to increase investment in the coming years".11 
5.42.   To solve the relevant problems, both at the federal and regional levels, measures are being 
taken to improve legislation to simplify the conditions for doing business, to reduce administrative 
barriers , and ensure the required quality of law enforcement practice. As part of the national 
 
11 Ernst & Young, Investment Climate in Russia: Views of Foreign Investors  (2015), p. 1.  WT/TPR/G/ 416 • Russian Federation  
 
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entrepreneurial initiative to improve the investment climate, during the reviewed period a number 
of roadmaps have been developed: "Improving corporate governance ", "Developing competition in 
economic sectors ", "Increasing the availability of energy infrastructure ", "Improving the legal 
regulation of the urban development and the business climate in the construction ", "Improving 
customs administration", "Improving registr ation services for real estate, title deeds  and related 
transactions".12 
5.43.   In 2018, the Government of the Russian Federation approved an Action Plan to accelerate the 
capital investments growth rate of and increase their share in GDP up to 25% for the period  from 
2018 to 2024 . The plan provides for a set of systemic and sectoral measures. These measures are 
aimed, inter alia, at the integrated development of infrastructure; at the development of the 
competitive environment and improvement of the efficiency of  companies with state participation; 
at the reduction of the share of government participation in competitive markets; at the 
improvement of the efficiency of state -owned companies; at the financial support of investment 
activity; to ensure a decrease in t he level of equilibrium interest rates in the economy; a growth of 
the corporate loan portfolio and an increase in the number of profitable projects by increasing the 
household savings rate. A set of regulatory changes in various sectors of the economy has  been also 
established to increase the attractiveness of investments, including in oil and gas and transport 
industries, in geology and subsoil use, electricity, industry, agriculture, housing construction, 
heating, water supply and sanitation, as well as in renovation and modernization of public utilities 
and energy infrastructure.  
5.44.   The reporting period was marked by several significant changes in investment regulation, 
including creation of new mechanisms.  
5.45.   Business climate transformation.  Simplification of the conditions for doing business is ensured 
by the mechanism for managing systemic changes in the business environment "Transformation of 
the Business Climate" (TBC) (see the Section "Ease of Doing Business, Transparency and Public 
Exper tise").  
5.46.   Corporate law.  To simplify the procedure for state registration of legal entities and facilitate 
the incorporation of a limited liability company, Model Articles have been approved, based on which 
both newly created and existing limited liability companies can operate. N otably, the Model Articles 
is not required to be submitted to the registering authority.  
5.47.   The institution of insolvency (bankruptcy) of legal entities is being reformed to make the 
procedure more understandable and predictable, as well as to ensure a balan ce of interests of 
debtors, creditors and the state, to reduce the timescales for conducting bankruptcy proceedings , 
to speed up the bidding procedure and increase its efficiency by introducing the Dutch auction and 
advance disclosure of information on the  property in the marketplace.  
5.48.   Since 2020, the procedure for establishing new joint -stock companies has been significantly 
simplified: registrars have the opportunity to be a single window for JSC, ensuring not only the 
registration and servicing all corpo rate procedures, but also registering share issues at the 
establishment and interacting with the Federal Tax Service on behalf of the company (Federal Law 
No. 514 -FZ of 27  December 2018).  
5.49.   Federal Law No. 209 -FZ of 19 July 2018 "On Amending the Federal Law "On Joint -Stock 
Companies " was adopted. It is aimed at the increase of Russia's ranking in the Doing Business rating 
in terms of "Protecting the Rights of Minority Investors ". It also provides a legislative framework for 
the board of directors to oversee t he risk management system. Public companies are obliged to form 
an audit committee of the board of directors and establish a risk management and internal control 
system.  
5.50.   On 1 October 2021, the Regulation of the Bank of Russia "On Disclosure of Information by 
Issuers of Equity Securities" (No. 714 -P) comes into force, which optimizes the administrative burden 
on issuers of securities related to disclosure of information in various forms. At the same time, a 
number of excessive requirements are excluded, whic h led to duplication of disclosed information, 
an increase in the flow of insignificant data, in which information important for making an investment 
 
12 Viewed at: http://government.ru/roadmaps/ . WT/TPR/G/ 416 • Russian Federation  
 
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decision is lost. In addition, the requirement to disclose the most important information on a 
consolidate d basis for the issuer's group is introduced and the use of the materiality principle in 
information disclosure is expanded.  
5.51.   Territorial development.  Special Economic Zones (SEZs), territories of advanced socio -
economic development and special administrati ve region are important tools for attracting 
investment in Russia.  
5.52.   SEZs are aimed at the creation of the growth points in the regions and attraction of 
investments in priority sectors of the economy (industry, technology, port activities, tourism). The 
mechanism consists in the creation of the necessary infrastructure conditions for investors, provision 
of the federal and regional incentives, including tax preferences. Today, there are 40 SEZs of four 
types with a broad geography of location (20 SEZs of ind ustrial and production type (IPT); 7 SEZs 
of technical and innovative type (TIT); 11 SEZs of tourism and recreational type (TRT); 2 SEZs of 
port type (PSEZ).  
5.53.   In 2018, special administrative districts were created on Russky island (Primorsky Territory) 
and Oktyabrsky island (Kaliningrad region).13 An international company can become a resident of a 
special administrative region (SAR) (a company registered in Russia in the order of redomiciliation 
and operating on the territory of several states, including Ru ssia). At the end of 2020, 39 companies 
from foreign jurisdictions were established in the SARs.  
5.54.   Advanced Development Area (ADA) is an economic zone with preferential tax conditions, 
simplified administrative procedures and other privileges, created to attract investments, to 
accelerate economic development, and to improve life of the population. ADAs created in single -
industry towns allow to create attractive conditions for investors, contributing to the diversification 
of the economy of single -industry  cities and increasing its sustainability. Currently, there are 86 
ADAs operating in monotowns.   
5.55.   Deoffshorization of the Russian economy.  As part of the "deoffshorization" of the Russian 
economy to increase its production and innovation potential, the harm onization of anti -offshore and 
tax policies with Russia's partners in the EAEU continues in order to prevent Russian businesses from 
using the EAEU member states as intermediaries of offshore financial networks.  
5.56.   Investment Protection and Promotion Agreeme nt (IPPA ). In 2020 , to create additional 
mechanisms to protect the interests of the investor and the state, as well as to lay the predictable 
groundwork for the implementation of large investment projects , a mechanism of agreements on 
the protection and pr omotion of capital investments was launched. IPPA is an agreement between 
business and the state, according to which business, for its part, undertakes to make investments 
within the framework of the project and implement an investment project on the terri tory of the 
Russian Federation, and the state undertakes to ensure the stability of the legal regime for the 
implementation of such a project. These agreements envisage the possibility to provide investors 
with a "stabilization clause" for various types of  taxes; removal of infrastructural restrictions for the 
implementation of projects through investors reimbursement. IPPA with the organization 
implementing the project (OIP) is concluded by application without holding competitive tender. In 
2020, 24 IPPAs were signed under new investment projects in the chemical industry, transport, 
energy, mining and processing of minerals, timber processing, agriculture, healthcare, and other 
areas.  
5.57.   The Foreign Investment Advisory Council in Russia (FIAC). In order to att ract foreign direct 
investments and to create favourable conditions for doing business in Russia, one of the most 
reputable business associations, the FIAC, has been working for 26 years. FIAC Members are 
implementing the major commercial projects in many sectors of the economy. In addition, every 
year, with the active participation of FIAC, measures are implemented to improve the legal 
framework and enforcement of rules governing business environment.  
 
13 Federal Law No. 290 -FZ of 3 August 2018 "On International Companies" and Federal Law No. 291 -FZ 
of 3 August 2018 "On Special Administrative Regions in Kaliningrad Region and Primorsky Krai."  WT/TPR/G/ 416 • Russian Federation  
 
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5.4  Innovative development  
5.58.   By 2020, Russia climbed to 47th place of the WIPO Global Innovation Index. The highest 
indicators of the index are: the development of higher education (17) ; trade, competition, and 
market size (18) ; information and communication technologies (29) ; knowledge formation (30) ; 
research and  development (33) ; online creativity (44).  
5.59.   During the period from 2016 to 2020, there was a gradual change in the structure of the 
Russian economy in the direction of innovative development. The level of innovation of organizations 
increased to 9.1% in 201 9,14 and the share of products of high -tech and knowledge -intensive 
industries in GDP increased to 23.4% in 2020.15 
5.60.   The industry of information and telecommunication technologies in 2020 became one of the 
leaders in terms of the dynamics of gross added val ue with the growth level of 2.8% compared to 
2019. The largest contribution to gross added value was made by companies operating in the 
telecommunications and information technology industries. The indicator of the share of companies 
and organizations that  carry out technological innovations, calculated in accordance with 
international recommendations on the statistical measurement of innovation, implemented by the 
OECD jointly with Eurostat (Oslo Manu al), increased from 20.2% in 2016 to 21.6% in 2019 .16 The 
most noticeable technological development (28%) has been observed in the industrial sector 
(compared with 24.8% in 2016).  
5.61.   The scientific potential of the Russian economy has been consistently developed: during the 
reporting period, there was a steady i ncrease in the number of developed advanced production 
technologies. At the end of 2020, this indicator increased by about 30%, compared to 2016.  
5.62.   Work is underway to develop innovative scientific and technological centres (the so -called 
technological vall eys) on the territory of which a special legal regime is implemented. By the end of 
2020, five such centres have been created, some of them were established at the premises of the 
largest Russian universities.   
5.63.   The mechanism of so -called Experimental Legal  Regimes in the field of innovation has been 
introduced by the Federal Law of 31 July 2020 No. 258 -FZ "On experimental legal regimes in the 
field of digital innovation in the Russian Federation ". This law launched "Regulatory Sandboxes " in 
the field of dig ital innovation. "Regulatory Sandboxes " have been successfully operating since 2020. 
A special legal environment for testing new products helps to reduce business costs and accelerate 
the development of promising ideas. "Regulatory Sandboxes " allows to min imize regulatory 
requirements that delay the development of innovations. Due to the special conditions of the 
"Regulatory Sandboxes ", companies that develop new products and services, as well as government 
representatives, can test technologies without the  risk of violating applicable legislation. 
Subsequently, if testing has passed successfully, the developers may enter the market with these 
new products and services. The sphere of "Regulatory Sandboxes" application includes, inter alia, 
industrial product ion, electronic sale of goods, works and services, construction, financial market, 
agriculture. Similar Experimental Legal Regimes were launched to test and implement new 
technologies, including artificial intelligence, medicine and telecommunications, aut onomous 
vehicles, communications.  
5.5  Digital economy  
5.64.   Since the first Review of Russia's Trade Policy, a large -scale work was carried out to digitize 
the Russian economy and develop the e -commerce, considering all modern  global trends. The 
significance of this  work has increased significantly during the COVID -19 pandemic.  
5.65.   The importance of the harmonious development of electronic commerce is stressed in the 
Strategy for the Development of the Information Society in the Russian Federation for 2017 -2030, 
approve d by the Decree of the President of the Russian Federation as of 9 May 2017 No. 203. To 
 
14 The indicator of the innovative activity level of organizations for 2020 will be published in the public 
domain in September 2021.  
15 According to Rosstat.  
16 Indicator of the share of companies and organizations carrying out technological innovations for 2020 
will be published in the public domain in September 2021.  WT/TPR/G/ 416 • Russian Federation  
 
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implement the national interests of the state when creating a digital economy, the strategy provides 
for the use of mechanisms aimed at protecting citizens from counter feit products, developing 
legislation to protect competition, implementing equal tax regime to companies, creating a payments 
and logistics infrastructure for e -commerce, transparency of cross -border payments, ensuring the 
protection of consumer rights in the information and communication network of Internet.  
5.66.   The National Program me "Digital Economy of the Russian Federation", approved in 201717, 
formed the basis of the National Program me "Digital Economy of the Russian Federation" which was 
approved in December 2018. The National Program me shall be implemented by the 2024. The goals 
of the National Program es are: to make the Internet accessible to everyone; to cover the largest 
cities of the Russian Federation with 5G communication networks; to protect the information of 
citizens, businesses and the Government; to increase the efficiency of the main sectors of the 
economy; to train personnel to work in the digital environment; to triple th e share of costs spent for 
the development of the digital economy in GDP.   
5.67.   Effective operation of existing markets and industries in the digital economy is possible, only 
if digital platforms are well developed, technologies, institutional and infrastructu ral environments 
are created and well -functioning. Therefore, the National Program me is being implemented within 
the framework of 7 national projects: (1) regulatory regulation of the digital environment; (2) 
information infrastructure; (3) human resources  for the digital economy; (4) information security; 
(5) digital technologies; (6) digital government; (7) artificial intelligence.   
5.68.   As part of the implementation of the National Program me, the following significant for the 
digitalization of the economy and  trade legal instruments have been adopted:  
− The law18 on "Regulatory Sandboxes" was adopted, establishing the mechanism for the 
operation of experimental legal regimes, including the procedure for their initiation, 
implementation, monitoring, determination  of results and requirements for participants ; 
− Russian legislation provides for the definition of digital currency19. At the same time, 
payment for goods and services in digital currency is prohibited on the territory of the 
Russian Federation. In Russia d igital currency can be bought, issued, sold, and used in other 
transactions ; 
− The ban on the Internet sale of over -the-counter pharmaceuticals has been lifted for licensed 
pharmacy. Such a measure became especially relevant during the spread of coronavirus 
infection20; 
− IT-companies21 are provided with tax reliefs, which was a timely support for these industries 
amid the pandemic ; 
− The concept of "digital rights " was introduced. It determined the status of the self -executing 
contracts ( "smart contracts ")22; 
− The Concept for the Development of Regulation of Relations in the Field of Artificial 
Intelligence Technology and Robotics Technology until 2024 was approved.23  
5.69.   The ongoing digitalization of economic and trade activities allows Russia to be an active 
participant in the discussions and negotiations on the settlement of trade aspects of e -commerce, 
including within the framework of WTO, to promote its best practi ces in this area and adopt the best 
practices of foreign partners.  
 
17 Order of the Government of the Russian Federation dated 28 July 2017 No. 1632 -r. 
18 Federal la w of 31 July 2020. No. 258-FZ "On experimental legal regimes in the field of digital 
innovation in the Russian Federation."  
19 Federal Law of  31 July 2020 No. 259 -FZ "On digital financial assets, digital currency and on 
amendments to certain legislative act s of the Russian Federation."  
20 Federal Law No. 105 -FZ of 3 April 2020 "On Amendments to Article 15.1 of the Federal Law "On 
Information, Information Technologies and Information Protection" and the Federal Law "On the Circulation of 
Medicines ".  
21 Federal  Law of  31 July 2020 No. 265 -FZ "On Amendments to Part Two of the Tax Code of the Russian 
Federation”.  
22 Federal Law of 18 March 2019 No. 34 -FZ "On Amendments to Parts One, Two and Article 1124 of Part 
Three of the Civil Code of the Russian Federation."  
23 Order of the Government of the Russian Federation of 19 August 2020 No. 2129 -r. WT/TPR/G/ 416 • Russian Federation  
 
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6  INTELLECTUAL PROPERTY RIGHTS  
6.1.  Ensuring an effective protection of intellectual property rights that is adequate for the modern 
time is an important aspect of the Russian policy to promote i nnovative and technological 
development. During the reporting period, numerous positive steps were taken in this area, which 
translated into legislative changes. Certain changes were aimed at ensuring a transition to electronic 
document management in paten t application proceedings and introducing  digital technologies – for 
instance, 3D models are now considered equivalent to descriptions and technical drawings for the 
purpose of patent applications. Improvements were brought to the outsourcing processes use d for 
patent examinations. Legislative provisions on the legal protection of industrial designs have been 
strengthened, in particular, through introducing temporary legal protection of industrial designs 
between the date on which the information about a pa tent application is published until the date on 
which the information on granting of the patent is made public . 
6.2.  Since 2016, there have been several improvements in anti -piracy legislation. The scope of anti -
piracy laws was significantly expanded. The  obligation to protect the exclusive rights of right holders 
was extended to a wider list of entities. A mechanism for the removal of information from online 
search results and for extra -judicial blocking of web -site "mirrors " was implemented. In November 
2018, a Memorandum "On cooperation in the field of protection of exclusive rights in the era of 
evolving digital technologies" was signed. The Memorandum, inter alia, includes an obligation of 
search engine operators to remove links to illegally posted audio -visual works of copyright holders 
upon their request. The Federal Law as of 8 June 2020 No. 177 -FZ "On Amendments to the Federal 
Law "On Information, Information Technologies and Information Protection" on restricting access to 
"pirated "applications came int o force in October 2020.  
6.3.  The Customs Code of the EAEU  adopted in 2018 also envisages a few provisions aimed at 
strengthening measures of customs protection of intellectual property rights.  
6.4.  As of July 2019, a copyright holder may file an online application with the Federal Custom 
Service of Russia for the pr otection of their rights (inclusion of an object of intellectual property in 
the customs register of intellectual property objects).  
6.5.  As of 201924 geographical indications are legally recognized as objects of intellectual property 
similar to appellations of origin, but with a simpler registration procedure.  
6.6.  In 2018, the Russian Federation became a party to the Geneva Act of the Hague Agreement 
Conce rning the International Registration of Industrial Designs; The Marrakesh Treaty to Facilitate 
Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled, 
and, from 2020, the Beijing Treaty on Audio -visual Performanc es. 
6.7.  In the reporting period, Russia joined the regional system for the protection of industrial 
designs based on the Protocol for the Protection of Industrial Designs to the Eurasian Patent 
Convention of 9 September 1994. The Protocol expands the scope of activities of the Eurasian Patent 
Organization to include industrial designs.  
6.8.  Russia became a member of the regional system for the protection of means of individualization 
based on the Treaty on Trademarks, Service Marks, and Appellations of Origin of the  Eurasian 
Economic Union. The Treaty makes it possible to obtain legal protection of trademarks and 
appellations of origin in the territory of all EAEU member states on the basis of a single application 
filed with one of the national patent offices.  
7  DEVELO PMENT OF COMPETITION  
7.1.  In recent years, increasing attention has been devoted to promoting competition as an 
important tool that enables economic growth. The task of actively supporting the promotion of 
competition in the Russian Federation is defined as a p riority area of policy at all levels of the Russian 
 
24 Federal Law of 26 July 2019 No. 230 FZ "On Amendments to Part 4 of the Civil Code of the Russian 
Federation".  WT/TPR/G/ 416 • Russian Federation  
 
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government by Decree of the President of the Russian Federation of 21 December 2017 No. 618 "On 
the Main Directions of State Policy for the Promotion of Competition".  
7.2.  The Decree further defines the core p rinciples of state policy for the promotion of competition: 
ensuring equal conditions and freedom of economic activity in the territory of the Russian Federation; 
the inadmissibility of restraining economically justified transition of natural monopoly sphe res from 
the state of natural monopoly to competitive markets; state regulation of prices (tariffs), based on 
the recovery of costs by organizations carrying out regulated activities, ensuring the reduction of 
costs and increased efficiency, in the long te rm interests of the consumer; inadmissibility of state 
regulation of prices (tariffs) or their maximum level in competitive product markets, with the 
exception of cases provided by the legislation of the Russian Federation; development of organized 
(exchan ge) trade; information transparency of the activities of infrastructure monopolies.  
7.3.  A National Plan for the Promotion of Competition in the Russian Federation for 2018 -2020 
(hereinafter - the National Plan), designed to ensure the implementation of the cor e principles of 
state policy in this area was approved by Decree No. 618. This plan provided the basis for important 
legislative initiatives. Currently, work is being finalized on a national plan for the development of 
competition for 2021 -2025, which will  include the following main directions:  
– Ensuring an efficient and transparent management of state and municipal property;  
– Development of small and medium -sized businesses;  
– Digitalization of antimonopoly and tariff regulation;  
– Deregulation of natur al monopolies;  
– Unification and systematization of state and municipal preferences for business entities;  
– Development of organized (exchange) trade.  
 
8  EASE OF DOING BUSINESS, TRANSPARENCY AND PUBLIC EXPERTISE  
8.1.  According to the World Bank's composite rati ng "Ease of Doing Business" in 2020 Russia is 
ranked 28th among 190 economies in terms of ease of doing business. Russia improved its rating 
position in comparison with this indicator in 2016 . 
Table 8.1 Positions of Russia in the Doing Business  rating, 2012 -20 
DB 
2012 DB 
2013  DB 
2014  DB 
2015  DB 
2016  DB 
2017  DB 
2018  DB 
2019  DB 
2020  
Overall ranking position  
120 112 92 63 51 40 35 31 28 
Source:  World Bank.  
8.2.  One of the main priorities of Russian trade and investment policy is to ensure transparent and 
predictable business environment in Russian market and seek the same reciprocity in the foreign 
markets . 
8.3.  An Actual Impact Assessment (AIA) procedure for regulatory legal acts has been in place since 
2016. This procedure implies a revision of regulatory acts with limited efficiency vis -à-vis the stated 
regulatory goals with a view to improving the currently applicable regulations and eliminating 
unreasonabl e duties, prohibitions and restrictions applied to business and other economic activities.  
8.4.   Regulatory Impact Assessment (RIA) is one of the main regulatory policy tools aimed at 
preventing the introduction of illegal, unreasonable, unenforceable, excessiv e, irrelevant, conflicting 
and duplicative requirements, which could translate to potential costs for businesses, including small 
and medium -sized enterprises. Public consultations with stakeholders, which are an important 
element of the RIA procedure, all ow to identify stakeholders ' positions, ensure transparency of the 
process through which all interests of affected groups are considered, and to ensure that all interests 
are taken into account. The RIA mechanism is constantly being improved. As such, in 2 020, the 
scope of RIA was expanded .25 Clarifications to the principles, conditions, and competences to 
introduce mandatory requirements were introduced. In addition, the procedure for drafting legal 
acts that contain mandatory requirements, and the basis f or assessment of their implementation, 
 
25 Federal Law of  1 November 2020 "On mandatory requirements in the Russian Federation" No. 247 -
FZ. WT/TPR/G/ 416 • Russian Federation  
 
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were clarified. The RIA mechanism is also being improved in the context of ensuring that interests 
of Russia 's regions are fully taken into account.  
8.5.  A closed regulatory cycle mechanism has been created to ensure the participation of 
stakeholders in establishing and assessing the application of mandatory requirements. Legislative 
acts containing mandatory requirements may come into force twice a year – 1 March  and 
1 September. The term of validity of secondary legislat ive acts which establish mandatory 
requirements has been limited (no more than 6 years). A public online portal containing a registry 
of mandatory requirements was created.  
8.6.  2019 saw the introduction of a "regulatory guillotine " mechanism. The mechanism is  aimed at 
a revision and abolition of legislative acts that negatively affect the business climate and regulatory 
environment. This would ensure a new system of clear and conspicuous requirements for business 
entities, brig about a significant reduction in  the administrative burden on businesses on the one 
hand, and an increase in the level of consumer safety on the other hand. Since the mechanism was 
introduced, more than 12.3 thousand legislative acts, which contained mandatory requirements, 
were replaced  447 legislative acts with updated requirements. All the replacement acts were 
discussed with stakeholders; they also have gone through legal review as well as the RIA procedure.  
8.7.  The implementation of the mechanism "Transformation of the Business Climate"  (TBC) is being 
undertaken in order to provide immediate respond by the authorities to requests from the business 
to reduce administrative barriers in business activities. This mechanism is aimed at deregulating 
business, including eliminating redundant, o utdated, and conflicting requirements provided by the 
legislative acts. A key feature of TBC is the most active involvement of the business community in 
shaping the reforms agenda. Business is involved in all its stages - from identifying challenges of 
doing business in various industries, finding ways to address them, to an assessment of the quality 
of the work of authorities. In 2020, the TBC mechanism was modified, an updated regulatory 
framework was approved. As part of the implementation of the TBC mec hanism the following legal 
acts were adopted: one Decree of the President of the Russian Federation, 21 federal laws, 28 
legislative acts of the Government of the Russian Federation, 56 departmental acts and three 
decisions of the Eurasian Economic Commiss ion. 
8.8.  Since the first TPR, the Government of the Russian Federation has adopted many documents, 
which were aimed at reducing excessive administrative pressure on business and increasing the 
efficiency of state regulation. The reform of government control an d supervision, conducted since 
December 2016, has led to the development of mechanisms for systematic assessment of mandatory 
requirements and analysing their efficiency, with a view to further optimization. These mechanisms 
are being successfully implemen ted. 
9  INCLUSIVE ECONOMY  
9.1.  Russia actively promotes and applies inclusive approach to ensure that all participants in 
foreign economic activity receive their fair share of benefits brought about by globalization. Inclusive 
policies complement Russia's efforts  to diversify trade, enabling broader economic growth and 
maintaining confidence in an open, rules -based trading system.  
9.1  Micro, small, and medium -sized enterprises  
9.2.  Micro, small and medium -sized enterprises (MSMEs ) play an important role in the economy of 
the Russian Federation. By the end of 2020, there were over 5.7 million MSMEs26. They accounted 
for 20.8% of the country's GDP, 17.2% of non -resource exports, as well as 32.5% of the total 
employed population or 22.8 million people. About 27% of MSME are managed by female 
entrepreneurs.  
9.3.  Under the Federal Law of  24 July 2007 No. 209 -FZ "On the Development of Small and Medium -
Sized Enterprises", MSMEs are defined as companies that meet the following conditions: (1) the 
share of foreign or large companies in the authorized capital does not exceed 49% whereas state 's 
share does not exceed  25%; (2) the average number of employees of an enterprise does not exceed: 
15 people for micro -, 100 people for small, 250 people for medium -sized enterprises; (3) yearly 
 
26 Viewed at: https://ofd.nalog.ru . WT/TPR/G/ 416 • Russian Federation  
 
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revenue of the organization does not exceed: RUB 120 million  for micro -, RUB 800 mil lion for small, 
RUB 2 billion for medium -sized enterprises. A company is no longer considered an MSME only if the 
maximum values for revenue or number of employees exceed the established thresholds for three 
consecutive calendar years. At the same time, if  the company does not meet the conditions on the 
employees or revenue, it ceases to be considered an MSME on the next month after the date is 
included into the Unified Register of MSMEs.  
9.4.  The regulatory environment is being constantly improved, taking into account the interests of 
MSMEs, including the reduction of the administrative and regulatory burden on them. All regulatory 
legal acts undergo an examination as to their potential impact on the MSMEs.  
9.5.  In Russia, the MSMEs are given the practical opportunit y to contribute to the process of 
developing norms, including through providing comments on new or revised legislation and 
regulations. A working group has been created under the presidium of the Government Commission 
for the Development of Small and Mediu m-Sized Enterprises. The membership of the group is 
extended to various public groups and organizations active in the MSME context, including the 
Chamber of Commerce and Industry of the Russian Federation, the all -Russian public organizations 
"Opora Russia " and "Business Russia ". Within the group, society organizations monitor on an ongoing 
basis the views of the business community and make proposals for adjusting regulatory framework 
in accordance with the position expressed by the majority of the surveyed  MSMEs.  
9.6.  As part of the business environment simplification efforts, MSMEs make active use of the 
"Transformation of the business climate " mechanism.  
9.7.  In accordance with the national project "Small and Medium -sized Entrepreneurship and 
Support for Individual  Entrepreneurship Initiative", a "Digital MSME Platform" is being developed in 
order to support MSMEs in complying with new regulatory and legislative requirements. The platform 
consolidates information on all support measures for MSMEs and allows them to identify applicable 
programmes and receive such support remotely.  
9.2  Promoting women's entrepreneurship  
9.8.  The Russian Federation is committed to the principle of gender equality, which is facilitated by 
various policy instruments, including trade policy.  
9.9.  Russia supported the adoption of the WTO Joint Declaration on Trade and Women 's Economic 
Empowerment signed at the Eleventh WTO Ministerial Conference in Buenos Aires, Argentina, in 
2017. Since 2021 Russia has been a member of the WTO Informal Working Group on  Trade and 
Gender.  
9.10.   Significant progress in promoting women empowerment has been achieved through the 
implementation of the 2017 -2022 National Strategy for Action for Women .27 
9.11.   Over the past 5 years, a number of measures have been taken in this area. The num ber of 
professions in which female labour is prohibited has been reduced by 4 times. Support for women -
led MSMEs and women's entrepreneurship was strengthened. Increased competitiveness of women 
in the labour market was ensured through the organization of vocational training for women on 
parental leave. A gradual increase in wages was introduced in the public sectors of the economy, in 
which women are predominantly employed (for example, in education, science, health care, culture 
and social protection ). Measures were introduced to create favourable conditions for combining work 
with family responsibilities such as the bringing up of children, including those with disabilities and 
children with health limitations. Regulations applicable to remote (distan ce) work were improved.  
9.12.   Multilateral international projects and initiatives aimed at promoting women 's contribution to 
international trade complement the relevant domestic policies. Among the largest initiatives are the 
APEC BEST AWARD (Business Efficienc y and Success Target) contest, which has been held annually 
by Russia in the framework of APEC since 2016, and the BRICS Women Business Alliance, created 
in 2020.  
 
27 Order No. 410 -r of 8 March 2017 of the Government of the Russian Federation.  WT/TPR/G/ 416 • Russian Federation  
 
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9.3  Remote territories  
9.13.   Russia attaches great importance to the development of regions, rural and  remote areas. In 
2019, the Spatial Development Strategy of the Russian Federation until 2025 was approved .28 The 
goal of the Strategy is to ensure sustainable and balanced development of the constituent entities 
of the Russian Federation, aiming to reduce  the interregional differentials in the quality of living, 
accelerate economic growth and technological development. For these purposes, territories with 
special conditions for conducting business are being developed and incentives aimed at the balanced 
development of regions are implemented.  
9.14.   Digital technologies contribute to the accelerated development of remote areas. Russia ranks 
36th in the UN E -government Development Index (2020). Russia's relatively high rankings in this 
and other indices for the e -government development are due to the successful operation of the 
Unified System of Identification and Authentication (USIA). Quick access to a wide range of digital 
services (obtaining permits, registering organizations, etc.) is an advantage from the poin t of view 
of foreign investors who decide to start or expand a business in Russia. These advances greatly 
simplify doing business for economic operators, including those active in the Russian regions . The 
best Russian practices and technological solutions in this area are actively promoted at the 
international level, including the SCO and APEC.  
10  SUSTAINABLE DEVELOPMENT  
10.1  Agenda 2030  
10.1.   Full-scale work is underway to implement the 2030 Agenda for Sustainable Development 
(hereinafter - the 2030 Agenda). All the SDG s are reflected in the main strategic and program me 
documents adopted in Russia. In 2020, at the UN High Level Political Forum on Sustainable 
Development, Russia presented the Voluntary National Review of Russia's achievement of the SDGs. 
In 2020, the Expe rt Council on Sustainable Development was created, consisting of representatives 
of both the public and private sectors. The council discusses social and environmental aspects of 
doing business, as well as the contribution of the private sector to the achi evement of the UN SDGs.  
10.2.   The implementation of the SDGs in the Russian Federation strictly adheres to the principle of 
balancing all three economic, social and environmental components of sustainable development. 
Russia strongly believes that the implementa tion of one SDG should not impede the reali zation of 
other SDGs.  
10.3.   Russia is convinced that trade policy, can also contribute to the implementation of the SDGs 
and, in confirmation of this, advocates for the early completion of negotiations on fisheries sub sidies 
on conditions acceptable to all WTO Members.  
10.2  Trade and environmental protection  
10.4.   Russia is committed to the multilateral approach in solving the problem of global warming 
and strongly supports international efforts in this direction; Russia is also developing its own climate 
legislation in full compliance with international environmental agreements and WTO rules.  
10.5.   The stance that the UNFCCC is the main platform for the development of new universal climate 
regulations lies at the core of the Russian F ederation 's policy. At the same time, trade policy and the 
WTO can and should contribute to these efforts, with the obligatory compliance to agreements under 
the UNFCCC including the Paris Agreement. Russia is convinced that the measures taken by the WTO 
Members, in cluding unilateral ones, should not restrict trade, impede economic recovery after the 
pandemic and destabilize global markets.  
10.6.   Russia supports efforts to reduce global greenhouse gas emissions. At the same time, in 
accordance with the fundamental principles of the UNFCCC and the Paris Agreement, each country 
has the right to independently choose the optimal model for the "green" t ransformation of the 
economy and production processes, as well as the pace, mechanisms and tools for achieving the 
climate goals. Russia advocates for the use of a wide range of measures to reduce emissions and 
 
28 Order No. 207 -r of 13 February 2019 of the Government of the Russian Federation.  WT/TPR/G/ 416 • Russian Federation  
 
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reduce anthropogenic impact on the climate, s uch as increasing energy efficiency and energy saving 
measures, improvement of production processes, developing energy  with low greenhouse gas 
emissions including renewable energy sources , increasing the efficiency of using ecosystems 
(including increasing  their absorptive capacity), introducing new clean technologies, as well as the 
introduction of technologies for carbon capture, storage and removal from the atmosphere.  
10.7.   To this end, in August 2021, hydrogen energy development strategy was adopted. Accord ing 
to this strategy, the export potential of the Russian hydrogen is estimated to be 15 -15.5 million tons 
by 2050. In August 2021, framework for the development of electric transport  was also adopted. 
According to this framework, by 2030 Russia would be p roducing  217 thousand electric vehicles per 
year. The development of the appropriate charging and the other relevant infrastructure is also 
envisaged.  
10.8.   Formation of carbon regulation is considered to be an important area of work within the 
framework of achi eving low –carbon development. In this regard, the Federal Law of 2 July 2021 
No. 296-FZ "On limiting greenhouse gas emissions" was adopted. This regulatory act has introduced 
a requirement for the economic entities to provide mandatory reporting in the cas e of the annual 
gross emissions exceeding 150 thousand tons of CO2  e.q., up until 2025, and 50 thousand tons of 
CO2 e .q., starting from 2025. In addition, a basis for the implementation of voluntary climate 
projects and the respective circulation of carbon  credits  issued based on the results of such projects, 
is also being created.  
10.9.   A draft federal law "On the establishment of the experimental special regulation on emissions 
and absorption in certain Subjects of the Russian Federation " is currently awaiting approval  from the 
Government of the Russian Federation. The  Sakhalin Region will be the first region to conduct this 
experiment. The experiment provides for the greenhouse gas emission quotas at the enterprise 
level. The goal is to achieve carbon neutralit y in the region by the end of 2025.  
10.10.   The formation of carbon regulation is considered to be an important area of work for 
achieving low –carbon development. Therefore, the Federal Law of  2 July 2021 No. 296 -FZ "On 
limiting greenhouse gas emissions" was adopt ed. This regulatory act introduces requirements for 
economic entities to provide mandatory reporting in the case of annual gross emissions exceeding 
150 thousand tons of CO 2 e.g., until 2025 and 50 thousand tons of CO 2 e.g., from 2025. A base for 
the imple mentation of voluntary climate projects and the circulation of carbon credits issued based 
on their results is also being created.  
10.11.   The first region to conduct the experiment will be the Sakhalin Region. The experiment 
provides for quotas of greenhouse gas emissions at the enterprise level. The goal is to achieve 
carbon neutrality in the region by the end of 2025.  
10.3  Trade and development  
10.12.   Russia remains engaged in the WTO discussions on trade and development and pays special 
attention to promoting inclusive gro wth and development. Russia believes that an effective WTO 
that meets modern realities can contribute to the economic prosperity for all WTO Members, 
particularly for developing and least developed countries, by enhancing predictability in the 
multilateral  trading system through the strengthening of international rules.  
10.13.   Russia supports international development, including through trade in a variety of ways, 
including by various assistance program mes and projects within the framework of a number of 
internat ional organizations. Numerous projects are being implemented, including through the 
Russia -UNDP Trust Fund for Development, UNECE, ESCAP.  
10.14.   The EAEU  grants tariff preferences for goods originating from developing countries and LDCs 
in order to facilitate their economic development .29 
10.15.   Russia also supports the efforts of the countries acceding the WTO, especially the LDCs, 
Russia considers the WTO membe rship as an important factor contributing to an effective integration 
 
29 The list of countries is provided for by the Decision of the EEC Council dated 27 May 2020 No. 50 "On 
Amendments to the Decision of the Customs Union Commission dated 27 November 2009 No. 130.   WT/TPR/G/ 416 • Russian Federation  
 
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of a country into the international trading system. In 2019, the 8th "China 's Round Table" on WTO 
accessions was held in Moscow. The event 's agenda was focused on the WTO reform.  
10.16.   Another  area of assistance to international development is the implementation of 
agreements on the use of foreign debts to the Russian Federation for the purpose of financing 
development projects.  
10.17.   Russia interacts closely with the structures of the World Bank on  the issues of international 
development assistance. Since 2016, more than USD 174.5 million has been transferred to the 
International Development Association (IDA). Over the entire period of membership in the World 
Bank Group, Russia has contributed about  USD 272.65 million to 26 trust funds managed by the 
World Bank.  
11  RUSSIA IN THE WTO  
11.1   Supporting multilateral trading system   
11.1.   Russia is committed to an open, non -discriminatory, and transparent multilateral trading 
system with the WTO at its core. Russia joi ned numerous statements and declarations, including at 
the ministerial level, which reflect this commitment. Russia regards the WTO as a unique forum that 
has no alternatives which serves as the platform for the development of multilateral international 
rules, common for all participants in the world trade.  
11.2.   At the same time, current lack of WTO 's capacity to respond effectively and promptly to 
modern -day challenges, as well as a number of systemic and operational gaps in the work of the 
organization restrain the evolvement of the multilateral trading system. The 12th WTO Ministerial 
Conference (MC -12) will be key to the recovery of the WTO, both in terms of a high potential for 
tangible deliverables, including the development of new rules , as well as in outlining areas of further 
work under the WTO reform process. To facilitate the success at MC -12, the Russian Federation has 
circulated a communication with proposals on the MC -12 outcome package30.  
11.2  WTO reform  
11.3.   Russia stands for a reform a imed at preserving the WTO 's authoritative role as an efficient 
universal platform for maintaining existing and developing new international trade rules, as well as 
ensuring Members ' fulfilment of their multilateral commitments. The reform should focus on –
improvements of the negotiating, monitoring and dispute settlement functions of the Organisation. 
In addition, the reform should bring about certain institutional improvements (for example, work of 
the regular WTO bodies should be optimized). The Russian F ederation is actively engaged with other 
Members on issues related to WTO reform. Russia supports the establishment of a Working Group 
on WTO Reform, which could act as a key platform for discussing the issued relevant for WTO reform 
in an open, transparen t, and inclusive manner.  The Working Group should aim to achieve multilateral 
outcomes, including by drawing up a "2030 Vision for the WTO" by the next Ministerial Conference.  
11.4.   An issue of great priority for Russia is the restoration of a fully -operational dispute settlement 
system, in particular, through the re -instatement of the Appellate Body. Russia stands open and 
ready for substantive discussions with all WTO Members with a view to improving the dispute 
settlement system, including by addressing Member s' existing concerns about certain adjudicative 
approaches and specific rulings, while preserving the essential features of a two -stage adjudication 
process, and the principle of "negative " consensus. In Russia 's view, such discussions should take 
due acco unt of the outcomes of negotiations on the improvement of dispute settlement procedures 
conducted within the special sessions of the DSB.   
11.5.   One of the priorities of the Russian Federation is to ensure a transparent and predictable 
environment for economic o perators. In this regard, Russia supports efforts to improve the WTO's 
role in monitoring the fulfilment of commitments by Members, including through strengthening 
notification disciplines. Russia is also promoting an initiative aimed at improving WTO rule s in terms 
of provision of information on changes in applied tariff rates – this initiative can contribute to 
increasing transparency and predictability in respect of changes introduced to current customs and 
 
30 WTO document, JOB/GC/261, 22 June 2021.  WT/TPR/G/ 416 • Russian Federation  
 
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tariff regimes31. Its purpose is to provide ear ly access to reliable and promptly published information 
on changes in the rates of tariffs applied by WTO Members . 
11.3  WTO negotiations  
11.6.   In Russia 's view, the WTO legal framework should be adapted to the modern -day challenges 
and realities in international trade.  
11.7.   Russia participates in negotiations on fisheries subsidies disciplines on the basis of the 
mandate contained in SDG 14.6. Russia is commit ted to an early conclusion of these negotiations, 
with a view to prohibiting harmful fisheries subsidies while ensuring sustainable economic 
development of WTO Members ' fisheries sectors.  
11.8.   Russia considers it important to advance negotiations on agricultur al issues. Russia has 
circulated a number of initiatives in this regard. Within the framework of negotiations on market 
access in agriculture, Russia supports the initiative aimed at increasing the transparency of 
application of tariff quotas. It aims to i mprove exporters ' awareness about export opportunities in 
sectors where tariff quotas are applied throughout the entire period of their validity. Russia also 
supports negotiation initiatives related to the elimination of special safeguard measures in 
agriculture.  
11.9.   Russia actively participates in the negotiations within the framework of the Joint Statements 
Initiatives launched at the 11th WTO Ministerial Conference. At the same time, Russia supports a 
"flexible multilateralism" approach, which implies that plurilateral arrangements applied on a MFN 
basis can be conducive to the development of multilateral rules, thereby serving as an efficient tool 
for improving the legal framework of the WTO.  
11.10.   At MC -11, Russia was one of the proponents for launching WTO neg otiations on e -commerce. 
In 2019, Russia became one of the signatories to the Davos Joint Ministerial Statement on E -
commerce and the Osaka Declaration on Digital Economy. Russia stands for the establishment of a 
system of multilateral rules in this import ant area, with special attention being devoted to developing  
rules aimed at protecting consumer rights and personal data, ensuring non -discriminatory conditions 
for the participation of Russian economic operators, in particular MSMEs, in e -commerce, simpli fying 
customs and trade procedures, improving access to open government data, as well as ensuring 
information security on the Internet. The Russian Federation favours the expansion of the number 
of participants in these WTO negotiations.  
11.11.   The Russian Federa tion takes an active part in negotiations on disciplines on domestic 
regulation in services. Russia believes that the adoption of disciplines in this area will help service 
providers make full use of their market access rights as guaranteed by respective s pecific 
commitments of WTO Members. New disciplines could  help ensure a transparent operating 
environment for companies, improve the business and investment climate, and refine the quality of 
national regulatory systems applied to various service sectors.  
11.12.   Russia fully supports the progress in Structured Discussions on Investment Facilitation for 
Development. Russia was one of the Members who led the launch of this negotiation track and 
circulated a number of proposals shaping future potential rules .32 Russi a believes that agreeing on 
rules in this area will facilitate the establishment of a stable, transparent and predictable 
environment for investment activities in the WTO Member economies for both foreign and national 
investors.  
11.13.   The Russian Federation was  one of the signatories of the MС -11 Joint Ministerial Statement 
on MSMEs. Russia takes an active part in the work of the Informal Group on MSMEs and considers 
it important to advance further WTO work with a view to minimizing barriers that hinder a succes sful 
integration of MSMEs into international trade. Russia pays special attention to issues of transparency 
and ensuring that the interests of MSMEs are taken into account in the rule -making process. Thus, 
Russia authored one of the six recommendations app roved in December 2020, which aimed at 
 
31 WTO documents JOB /AG/154, RD/AG/70, RD/AG/ 72, JOB/MA/138 and JOB/AG/154 , 20 March 2019, 
RD/AG/70 , 27 May 2019 ; RD/MA/45 , 3 June 2019 ; RD/MA/49 , 3 June 2019 ; JOB/AG/186; JOB/MA/145 , 5 June 
2020.  
32 WTO document, JOB/GC/120 , 31 March 2017 . WT/TPR/G/ 416 • Russian Federation  
 
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promoting MSMEs ' inclusion in developing regulations, including through MSME -focused impact 
assessment and providing those enterprises with more opportunities to comment and consult on 
prospective measures.  
11.14.   Russia supported  the Buenos Aires Joint Declaration on Trade and Women 's Economic 
Empowerment in 2017, and is one of the par ticipants of the WTO Informal Working Group on Gender.  
12  REGIONAL AND BILATERAL INTERACTION  
12.1  Eurasian Economic Union  
12.1.   Eurasian economic integration is actively developing. Many important steps were made since 
the time the Customs Union was formed: the EAEU T reaty codified and furthered CU disciplines, an 
EAEU Common Customs Tariff (CCT) came into effect; institutions such as the Eurasian Economic 
Commission, the Court of the EAEU, the Eurasian Development Bank, and the Eurasian Fund for 
Stabilization and Deve lopment reached full operational capacity. The EAEU is actively engaged in 
working on a Union -wide digital agenda.  
12.2.   Active work is being carried out aimed at the formation of EAEU common markets in various 
economic sectors. A single market for most goods i s currently in place. During the reporting period, 
work in this regard focused on completing the common markets for medicines and medical devices, 
as well as common energy markets (in electricity, natural gas, oil and oil products). A common 
labour market and a common financial market are in the process of formation. High on the list of 
priorities in services are the transport and financial services markets. The creation of a single 
financial regulatory authority is envisaged for 2025 . 
12.3.   EAEU Heads of State a pproved the Strategic Directions for Developing Eurasian Economic 
Integration until 2025 at the meeting of the Supreme Eurasian Economic Council held in December 
2020.  The document is by and large a roadmap that defines around 330 measures and mechanisms 
aimed to take integration forward, strengthen the position of Member  States in the global economy 
and ensure steady economic growth. The document lays down measures to be taken to achieve the 
completion  of the common markets for goods, services, capital, an d labour, ensure the improvement 
of the regulatory framework for cooperation, development of the Union 's institutions, provide for 
digital traceability of the movement of goods, strengthen the Union's global position. A significant 
number of provisions are  aimed at improving customs regulation and administration, forming a 
common digital space within the EAEU, developing common approaches to protecting consumer 
rights, improving the quality and safety of goods that enter the Eurasian market.  
12.4.   During the rep orting period, the EAEU regulatory framework for foreign economic activity has 
improved. As such, on January 1, 2018, the Customs Code of the Eurasian Economic Union (Customs 
Code of the EAEU) came into force. In March 2019, The EEC Council approved a draf t Agreement on 
the Procedure and Conditions for the Elimination of Technical Barriers in Mutual Trade with Third 
Countries in order to approximate regulatory convergence with third countries and to provide a 
mechanism for mutual recognition of the results of conformity assessment procedures33. 
12.5.   The geography of the Union is expanding. The EAEU  has granted observer status to Moldova 
in 2018, and to Uzbekistan and Cuba in 2020.  
12.6.   In 2018, a factual presentation of the Treaty on the EAEU was made at the meeting of the 
WTO Committee on Regional Trade Agreements. Based on the results of this review, it was 
recognized by default that the EAEU was created in accordance with applicable WTO rules, namely 
the provisions of Article XXIV of the General Agreement on Tariffs and Trade of 1994.  
 
33 The agreement applies only to goods in respect of which the technical regulations of the EAEU apply. 
After the agreement enters into force, mutual recognition at EAEU level will become possible. The agreement will 
enter into force upon completion of domestic procedures by all EAEU memb er states. Russia completed the 
relevant procedures in August 2019.  WT/TPR/G/ 416 • Russian Federation  
 
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12.2  Free trade agreements  
12.7.   On 5 October 2016, the Free Trade Agreement  between the Eurasian Economic Union and its 
Member States, of the one part, and the Socialist Republic of Viet  Nam, of the other part, entered 
into force. The FTA covers the liberalization of trade in goods for about 88% of mutual trade between 
Russia and  Viet Nam. 
12.8.   On 27 October 2019, the Interim Agreement Leading to the Formation of a Free Trade Zone 
between the Eurasian Economic Union and its Member States, of the one part, and the Islamic 
Republic of Iran, of the other part, entered into force. The agre ement provides for trade liberalization 
in relation to a limited range of goods: 502 HS codes from the EAEU side and 360 HS codes from 
Iran's side (4% and 5% of the commodity nomenclature, respectively). In accordance with the 
provisions of the interim agr eement, the parties shall, no later than one year from the date of its 
entry into force, begin negotiations with a view to concluding a free trade agreement, under which 
duties and other restrictive trade regulation measures shall be eliminated with respec t to 
substantially all the trade between the Parties . Relevant negotiations are currently underway.  
12.9.   On 10 July 2021, the Free Trade Agreement between the Eurasian Economic Union and its 
Member States, of the one part, and the Republic of Serbia, of the oth er part, entered into force. 
The purpose of the FTA is to unify the trade regime of the EAEU Member States with Serbia. Before 
its conclusion, Russia, Kazakhstan, and Belarus had bilateral free trade agreements with Serbia, but 
the coverage of these agreem ents differed. Armenia and  the Kyrgyz  Republic  did not have free trade 
agreements with Serbia. The new Agreement establishes a single free trade regime with Serbia for 
the entire Eurasian Economic Union.  
12.10.   The FTA between the Eurasian Economic Union and its Member States with the Republic of 
Singapore was signed, but has not yet entered into force. Domestic procedures necessary for its 
entry into force are currently underway.  
12.11.   The Russian Federation within the EAEU is conducting negotiations on FTA with the A rab 
Republic of Egypt and negotiations on FTA with the State of Israel. Feasibilities Studies Groups have 
been launched with Mongolia and with Indonesia.  
12.3  Investment agreements  
12.12.   The Russian Federation is seeking to attract foreign investment into the economy, to create 
conditions for the growth of national and foreign investment. In 2016 such a bilateral agreement on 
the encouragement and mutual protection of investment was signed  with Morocco, in 2017 a similar 
agreement with Palestine entered into force.  
12.13.   Up to the present time Russia has signed 82  investment agreements, 65 of which entered 
into force.  
12.14.   Since 2016, investment treaty negotiations conducted by Russia have been guide d by 
common approaches to adopted in the Order of the Government of the Russian Federation of 
30 September 2016  No. 992. These common approaches (in contrast to the previously existing 
standard model) allow to adapt investment negotiations to the needs of economic operators in 
particular markets.  
12.4  International economic cooperation in other fora  
12.15.   Outside the WTO, Russia consistently voices its support for the rules -based multilateral 
trading system with the WTO rules at its core, through various multilateral  fora. Against the 
background of growing of protectionism, including in the form of unilateral trade restrictions, Russia 
welcomes the statements consolidating the political will to curb this trend, namely within the G20, 
APEC, BRICS, the SCO and other rel evant fora.  
12.4.1   The Group of Twenty (G20)  
12.16.   Russia fully supports the G20 's work to strengthen the transparent, open, and non -
discriminatory global trading system, as well as to combat protectionism, including in the form of WT/TPR/G/ 416 • Russian Federation  
 
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unilateral trade restrictions. Russia  is an active participant of the G20 Working Group on Trade and 
Investment, aimed at strengthening consensus on relevant issues of particular importance for the 
global trade agenda, including the WTO reform.  
12.4.2   APEC  
12.17.   Russia is committed to APEC 's mission of b uilding a free and open trade and investment 
environment in the Asia -Pacific region. Russia has contributed to reaching APEC 's Bogor Goals, 
including through reducing tariff rates, simplifying trade and customs procedures, and modernizing 
legislation on co mpetition and intellectual property rights. Russia also took active part in updating 
these goals through the development of the Putrajaya Development Guidelines until 2040, approved 
by APEC Leaders in 2020.  
12.18.   During Russia's 2012 APEC presidency, more than 6 0 Russian proposal aimed at trade and 
investment liberalization, support for innovative growth, and strengthening food and energy security 
were approved. In recent years, Russia's agenda in APEC has expanded to include the tasks of 
improving transparency, increasing the sustainability and efficiency of global value chains, 
supporting MSMEs, developing the digital economy, as well as eliminating socio -economic 
imbalances, including uneven development of remote and rural areas. Russia also promotes its own 
initiatives in APEC, including those aimed at enhancing trade policy transparency, in particular, tariff 
policy, seeking to increase the predictability and transparency of the trading environment for 
economic operators.  
12.19.   Russia attaches great importance to A PEC's contribution to supporting and developing the 
multilateral trading system, including by facilitating discussions on items in the WTO negotiating 
agenda. Russia welcomes APEC's efforts to strengthen dialogue and sharing of experience and best 
practice s in areas that correlate with WTO negotiations, primarily, on e -commerce, investment 
facilitation, and domestic regulation in services. In 2020, Russia held an APEC workshop on issues 
of protection of intellectual property rights in digital content trade.  The results of this workshop may 
contribute to WTO 's further work on e -commerce.  
12.4.3   BRICS  
12.20.   Since 2006, Russia has been a member of the BRICS, which serves as a forum to discuss 
various issues, including those relating to of the trade and economic policy. Amo ng the core tasks 
of the BRICS trade and economic agenda are the support of the multilateral trading system, curbing 
the growth of protectionism, and strengthening consensus on the WTO negotiating agenda.  
12.21.   In 2020, the year of Russia's BRICS presidency, ar rangements were reached that have the 
potential to contribute to the strengthening and development of the rules -based multilateral trading 
system with the WTO at its core. A Joint Statement on Supporting the Multilateral Trading System 
and WTO Reform was a dopted, reflecting the common views of the BRICS Members on such 
important issues as curbing protectionism and unilateral trade restrictions, including sanctions; 
counteraction to the erosion of the role of the WTO as the foundation of MTS; support for the  election 
of a new WTO Director General; as well as key areas of WTO reform, including restoring the smooth 
operation of the WTO Appellate Body. BRICS Guidelines for promoting Effective Participation of 
MSMEs in International Trade, as well as the BRICS Un derstanding on Investment Facilitation were 
adopted. At the XII BRICS Leaders ' Summit (November 2020), the BRICS Economic Partnership 
Strategy until 2025 was approved. It sets out the key areas of interaction within the BRICS for the 
next five years in tra de, investment and finance, digital economy, and sustainable development. The 
strategy attaches due attention to WTO issues.  
12.4.4   Miscellaneous  
12.22.   Russia also takes an active part in discussing issues of the trade policy agenda at the 
Shanghai Cooperation Organiz ation (SCO) , having held chairmanship in 2019 -2020. The key 
policy documents on the SCO economic policy track are the 2019 Program me of Multilateral Trade 
and Economic Cooperation of the SCO Member States until 2035 and the Action Plan for 2021 -2025 
for th e Program me's implementation. These documents, among others, reflect co -ordinated 
approaches to important issues on the global trade policy agenda, including the support for the WT/TPR/G/ 416 • Russian Federation  
 
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multilateral trading system, strengthening the WTO and combatting protectionis m. In 2020, the 
Ministerial Declaration on Supporting the Multilateral Trading System was adopted.  
12.23.   Cooperation with ASEAN has progressed significantly. In 2018, the Leaders of ASEAN and 
Russia officially announced the ASEAN -Russia Strategic Partnership . In 2017, the ASEAN -Russia 
Trade and Investment Cooperation Roadmap and the Work Program me for its implementation were 
adopted. In 2018, cooperation was launched between the EAEU and ASEAN. The EAEU -ASEAN 
Cooperation Program me for 2020 -2025 was adopted in A ugust 2020 with a purpose to intensify 
interaction, improve business climate, create mechanisms for direct dialogue between the EAEU and 
the ASEAN business associations, as well as enhance coordination on other relevant international 
platforms. Russia is a lso actively involved in the East Asia Summits (EAS) .  
12.24.   Russia advocates strengthening the work of the UNCTAD  on the entire range of international 
trade agenda, including on urgent challenges of growing protectionism in the form of tariff and non -
tariff bar riers, escalation of trade conflicts, politicization of international trade. Such issues on the 
UNCTAD agenda as trade for development, investment, competition and consumer protection, e -
commerce and the digital economy are also of high importance for the Russian Federation. In 2019, 
at the suggestion of the Russian Federation, a Regional Group of the EAEU Member States ("EAEU 
Group") was created. In October 2020 Russian initiative on the establishment of international 
cooperation between national competiti on authorities was adopted by UNCTAD Members.  
12.25.   In 2014, the negotiation process on Russia's accession to the OECD , which began in 2007, 
was blocked. At the same time, Russia continues to participate in the organization 's work. Efforts 
are underway to harmon ize Russian legislation with OECD standards, including the adoption in 
December 2020 of two new legal acts on regulatory policy. Russia is actively working on introducing 
standards for responsible business conduct (RBC) into the business practice of compan ies.  
12.26.   As part of the work to ensure a full consideration of interests of the Russian agro -industrial 
complex, Russia also actively participates in the activities of such international commodity 
organizations as the International Coffee Organization (ICO), the International Cocoa Organization 
(ICCO), the International Sugar Organization (ISO), the International Grains Council (IGC), 
International Organization of Viticulture and Winemaking (IOVW), General Fund of Commodities 
(GFC) and International Cotton Adv isory Committee (ICAC). Within the IGC, the Food Assistance 
Committee (FAC) is operating separately.  
13  FURTHER STEPS  
13.1.   One of the key global tasks now is to prevent the deepening of the crisis situation in 
international trade that could be brought about by fu rther unjustified restrictions, barriers, and 
unilateral actions. Ensuring that task is completed is inconceivable without a WTO that functions 
smoothly and efficiently. Russia will continue working with WTO Members to improve the 
effectiveness of the nego tiation, monitoring and dispute settlement functions, including by taking an 
active part in the WTO reform process. Russia will closely cooperate with WTO Members and make 
every possible effort on its part to ensure the success of MC -12.  
13.2.   Russia will continue to support the multilateral trading system based on WTO rules and - 
together with other WTO Members – to curb the growth of protectionism globally.  
13.3.   In a broader context, Russia will continue its efforts to enhance favourable condition s for 
Russian economic operators in foreign markets as well as for foreign partners in the Russian market. 
An efficient WTO fit for the modern time is vital for the success of these efforts. Work will continue 
to improve the investment climate, increase th e transparency and predictability of the business 
environment in Russia, and reduce the costs incurred by economic operators, including MSMEs.   
__________