RESTRICTED  
  
WT/TPR/S/345  
24 August 2016  
(16-4506) Page: 1/173 
Trade Policy Review Body   
 
 TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
RUSSIAN FEDERATION  
This report, prepared for the first Trade Policy Review of the Russian Federation, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the Russian Federation on its 
trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Mr. John Finn (Tel: 022 739 
5081), Mr. Ricardo Barba (Tel: 022 739 5088), Mr. Peter Milth orp (Tel: 022 739 5016) and 
Mr. Rosen Marinov (Tel:  022 739 6391).  
 
Document WT/TPR/G/345 contains the policy statement submitted by the Russian Federation.  
 
 
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. This report 
was drafted i n English.  WT/TPR/S/345 • Russian Federation  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Recent Economic Developments  ................................ ................................ ................... 14 
1.3 Trade and Investment Performance  ................................ ................................ ................ 18 
1.3.1 Trade in goods and services  ................................ ................................ ........................ 18 
1.3.2 Foreign direct investment  ................................ ................................ ........................... 21 
1.4 Outlook  ................................ ................................ ................................ ....................... 23 
2   TRADE AND INVESTMENT  REGIME  ................................ ................................ ............  25 
2.1   General Framework  ................................ ................................ ................................ ....25 
2.2   Trade Policy Formulation  ................................ ................................ ............................. 26 
2.3   Policy Objectives  ................................ ................................ ................................ ........ 28 
2.4   Trade Agreements and Arrangements  ................................ ................................ ........... 28 
2.4.1    WTO ................................ ................................ ................................ ...................... 28 
2.4.2    Regional trade agreements  ................................ ................................ ....................... 31 
2.4.2.1    Eurasian Economic Union (EAE U) ................................ ................................ ............ 32 
2.4.3    Other arrangements  ................................ ................................ ................................ .35 
2.5   Investment Regime  ................................ ................................ ................................ ....35 
2.6   Starting a Business  ................................ ................................ ................................ .....38 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  41 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 41 
3.1.1    Customs procedures and requirements  ................................ ................................ .......41 
3.1.2    Customs valuation  ................................ ................................ ................................ ...43 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 44 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 45 
3.1.4.1    Bound tariffs  ................................ ................................ ................................ ........ 45 
3.1.4.2    Applied tariffs  ................................ ................................ ................................ .......46 
3.1.4.3    Preferential tariffs  ................................ ................................ ................................ .48 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 50 
3.1.6    Import prohibitions, restrictions, and licensing  ................................ ............................ 51 
3.1.7    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 55 
3.1.8    Standards and other technical requirements  ................................ ............................... 58 
3.1.8.1    Standards and technical requirements at the EAEU level  ................................ ............ 58 
3.1.8.2    Standards in the Russian Federation  ................................ ................................ ........ 60 
3.1.9    Sanitary and phytosanitary requirements  ................................ ................................ ....62 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 66 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 66 
3.2.2    Export taxes , charges, and levies  ................................ ................................ ............... 66 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 67 WT/TPR/S/345 • Russian Federation  
 
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  3.2.4    Export finance, insurance, and guar antees  ................................ ................................ ..69 
3.2.5    Export promotion and marketing assistance  ................................ ................................ 75 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......75 
3.3.1    Taxes  ................................ ................................ ................................ ..................... 75 
3.3.1.1    Overview  ................................ ................................ ................................ ............. 75 
3.3.1.2    Consumption taxes  ................................ ................................ ............................... 76 
3.3.1.3    Corporate taxes  ................................ ................................ ................................ ....78 
3.3.1.4    Tax incentives  ................................ ................................ ................................ ......79 
3.3.2    Incentive s ................................ ................................ ................................ ............... 80 
3.3.2.1    General support programmes  ................................ ................................ ................. 80 
3.3.2.2    Special Economic Zones and other regional schemes  ................................ ................. 84 
3.3.3    State trading, state -owned enterprises, and privatization  ................................ ............. 85 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 87 
3.3.5    Government procurement  ................................ ................................ ......................... 90 
3.3.5.1    Overview  ................................ ................................ ................................ ............. 90 
3.3.5.2    Legal framework  ................................ ................................ ................................ ...91 
3.3.5.3    General principles and buy -domestic requirements  ................................ .................... 92 
3.3.5.4    Procurement methods and procedures  ................................ ................................ .....93 
3.3.5.5    Bid challenges review mechanism  ................................ ................................ ........... 96 
3.3.5.6    International cooperation  ................................ ................................ ....................... 96 
3.3.6    Intellectual property rights  ................................ ................................ ........................ 97 
3.3.6.1    Overview  ................................ ................................ ................................ ............. 97 
3.3.6.2    IP legislation  ................................ ................................ ................................ ........ 98 
3.3.6.3    IP administrative and enforcement systems  ................................ ............................. 98 
3.3.6.4    Copyright and related rights  ................................ ................................ .................  102 
3.3.6.5    Trademarks  ................................ ................................ ................................ ........  104 
3.3.6.6    Patents  ................................ ................................ ................................ ..............  105 
3.3.6.7    Geographical indications  ................................ ................................ ......................  108 
3.3.6.8    IP enforcement  ................................ ................................ ................................ ... 109 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ ...................  112  
4.1   Agriculture, forestry, and fishing  ................................ ................................ ................  112 
4.1.1    Agriculture  ................................ ................................ ................................ ............  112 
4.1.1.1    Overview  ................................ ................................ ................................ ...........  112 
4.1.1.2    Trade  ................................ ................................ ................................ ................  113 
4.1.1.3    Policies  ................................ ................................ ................................ ..............  114 
4.1.1.3.1    Trade policies  ................................ ................................ ................................ .. 115 
4.1.1.3.2    Domes tic policies  ................................ ................................ .............................  116 
4.1.1.3.2.1    State Programme for Agricultural Development  ................................ .................  116 
4.1.1.3.3    WTO notifications  ................................ ................................ .............................  126 
4.1.1.3.4    OECD indicators  ................................ ................................ ...............................  127 WT/TPR/S/345 • Russian Federation  
 
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  4.1.2    Forestry  ................................ ................................ ................................ ................  128 
4.1.3    Fisheries  ................................ ................................ ................................ ...............  131 
4.2   Mining and Energy  ................................ ................................ ................................ .... 134 
4.2.1    Legislative framework  ................................ ................................ ............................  134 
4.2.2    Minerals  ................................ ................................ ................................ ...............  136 
4.2.3    Energy  ................................ ................................ ................................ .................  136 
4.2.4    Oil ................................ ................................ ................................ .......................  138 
4.2.5    Gas ................................ ................................ ................................ ......................  140 
4.2.6    Oil and gas transportation  ................................ ................................ .......................  141 
4.2.7    Coal ................................ ................................ ................................ .....................  142 
4.2.8    Electricity  ................................ ................................ ................................ .............  142 
4.3   Services  ................................ ................................ ................................ ..................  143 
4.3.1    Financial services  ................................ ................................ ................................ ... 143 
4.3.1.1    Banking  ................................ ................................ ................................ .............  143 
4.3.1.2    Insurance  ................................ ................................ ................................ ..........  147 
4.3.2    Telecommunications and postal services  ................................ ................................ ... 148 
4.3.3    Transport  ................................ ................................ ................................ ..............  152 
4.3.3.1    Rail transport  ................................ ................................ ................................ ..... 153 
4.3.3.2    Road transport  ................................ ................................ ................................ ... 154 
4.3.3.3    Maritime transport  ................................ ................................ ..............................  155 
4.3.3.4    Air transport  ................................ ................................ ................................ ....... 156 
4.4   Tourism  ................................ ................................ ................................ ...................  156 
REFERENCES  ................................ ................................ ................................ ................  158  
5   APPENDIX TABLES  ................................ ................................ ................................ .. 162  
 
CHARTS  
 
Chart 1.1 Gross domestic product by economic activity (at basic prices), 2015  .......................... 13 
Chart 1.2 Composition of merchandise trade, 2012 and 2015  ................................ .................. 19 
Chart 1.3 Direction of merchandise trade, 2012 and 2015  ................................ ....................... 20 
Chart 1.4 Trade in services by sector and partner, 2015  ................................ ......................... 21 
Chart 3.1 Average MFN applied tariff rates by WTO product categories, 2012 and 2016  .............. 47 
Chart 3.2 Eximbank of Russia: export finance by geographic market and industry, 2015  ............ 73 
Chart 3.3 Export insurance by geographic market and industry, 2014  ................................ ......74 
Chart 4.1 Green Box support in the Russian Federation, 20 12-14 ................................ ...........  126 
Chart 4.2 Amber Box support in the Russian Federation 2012 -14 ................................ ...........  127 
Chart 4.3 Energy production and exports, 2012 -15 ................................ ..............................  137 
Chart 4.4 Foreign capital participation in the Russian banking system, 2008 -16 .......................  144 
Chart 4.5 Outstanding HMLs, 2010 -15 ................................ ................................ ................  146 
Chart 4.6 Refinancing HMLs, 2010 -16 ................................ ................................ .................  146 WT/TPR/S/345 • Russian Federation  
 
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  TABLES  
 
Table 1.1 Selected economic indicators, 2012 -15 ................................ ................................ ...15 
Table 1.2 Balance of payments, 2012 -15 ................................ ................................ .............. 17 
Table 1.3 FDI flows by country, 2012 -15................................ ................................ ............... 22 
Table 1.4 FDI inflows by economic activity, 2012 -15 ................................ .............................. 23 
Table 2.1 Some trade -related legislation  ................................ ................................ ............... 27 
Table 2.2 Select ed notifications under WTO Agreements (as of June 2016)  ............................... 29 
Table 2.3 WTO dispute settlement cases  ................................ ................................ ............... 31 
Table 2.4 Russian Federatio n's RTAs in force, 2016  ................................ ................................ 33 
Table 3.1 Decisions of the Board of the EEC on application of the methods of determination 
of the customs value of goods  ................................ ................................ ............................. 44 
Table 3.2 Implementation of final bound tariffs, 2012 -2020 ................................ .................... 45 
Table 3.3 Structure of MFN tariffs in the Russian Federation, 2012 and 2016  ............................. 46 
Table 3.4 Examples of tariff escalation  ................................ ................................ .................. 48 
Table 3.5 Applied MFN tariff compared to bound tariff, end -June 2016  ................................ ......48 
Table 3.6 MFN and selected preferential tariffs in the Russian Federation, 2016  ......................... 49 
Table 3.7 Fees and charges for customs services relating to imports and exports  ....................... 50 
Table 3.8 Goods under import restrictions  ................................ ................................ ............. 52 
Table 3.9 Product coverage of Government Resolution No. 778 of 2014 (as amended)  ............... 54 
Table 3.10 Product coverage of Government Resolution No. 1296 of 30 November 2015  ............. 54 
Table 3.11 Trade remedy stages and timing in the EAEU  ................................ ......................... 56 
Table 3.12 Trade remedy measures by DIMD, 2012 -15 ................................ ........................... 56 
Table 3.13 Products and exporting countries subject to definiti ve trade remedy measures 
as at May 2016  ................................ ................................ ................................ .................. 57 
Table 3.14 Provisions on the procedure of drafting, adopting, amendment and cancellation 
of the EAEU technical regulations  ................................ ................................ ......................... 59 
Table 3.15 Technical regulations of the EAEU adopted during the period from accession of 
the Russian Federation to the WTO to end -April 2016  ................................ ............................. 59 
Table 3 .16 Principal EAEU legislation on SPS measures at end -May 2016  ................................ ..62 
Table 3.17 Principal EAEU legislation on technical regulations related to SPS measures at 
end-May 2016  ................................ ................................ ................................ ................... 62 
Table 3.18 National SPS legislation of the Russian Federation amended or introduced from 
2012 to end -May 2016  ................................ ................................ ................................ .......63 
Table 3.19 State information data s ystems for traceability of veterinary and phytosanitary 
measures, 2016  ................................ ................................ ................................ ................. 64 
Table 3.20 Selected export duties in the Russian Federation  ................................ .................... 67 
Table 3.21 Goods under export restrictions  ................................ ................................ ........... 68 
Table 3.22 Main export finance, insurance and guarantee facilities, 2016  ................................ ..71 
Table 3.23 Consolidated budget revenue, 2012 -15 ................................ ................................ .76 
Table 3.24 Excise taxes, 2012 and 2016  ................................ ................................ ............... 77 
Table 3.25 Federal support progr ammes 2013 and 2014  ................................ ......................... 80 
Table 3.26 Sub -federal support programmes 2013 and 2014  ................................ ................... 81 WT/TPR/S/345 • Russian Federation  
 
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  Table 3.27 Federal support programmes 2012 -14 ................................ ................................ ..82 
Table 3.28 Special Economic Zones and selected incentives  ................................ .................... 84 
Table 3.29 Selected state -owned enterprises in the Russian Feder ation in 2015  ......................... 86 
Table 3.30 Competition enforcement, 2012 -15 ................................ ................................ ......89 
Table 3.31 Government procurement and its share in GDP, 2011 -15 ................................ ........ 90 
Table 3.32 Main legal framework of the federal and municipal procurement system  ................... 91 
Table 3.33 Procurement methods and main fe atures  ................................ .............................. 94 
Table 3.34 Participation in international agreements  ................................ .............................  102 
Table 3.35 Trademark applications, 2000 -2015 ................................ ................................ ... 105 
Table 3.36 Patent applications, 2008 -15 ................................ ................................ .............  107 
Table 3.37 Patents granted, 2008 -15 ................................ ................................ .................  107 
Table 3.38 Patent applications and patents granted for inventions, 2008 -15 ............................  108 
Table 3.39 IP -related cases (criminal, administrative and civil), 2012 –15 ................................  110 
Table 4.1 Production of selected agricultural products, 2004 and 2011 -14 ...............................  112 
Table 4.2 Trade in selected agricultural products, 2012 -15 ................................ ....................  113 
Table 4.3 Tariff quotas and imports under tariff quotas, 2013 -15 ................................ ...........  115 
Table 4.4 Federal allocations to the State Programme for  Agricultural Deve lopment, 
2013-2020 ................................ ................................ ................................ ......................  117 
Table 4.5 Subsidies for interest payments for crop production, 2013 -15 ................................ . 119 
Table 4.6 Subsidies for insura nce premiums for crops, 2013 -15 ................................ .............  119 
Table 4.7 Subsidies for development of sheep and goat breeding, 2014 and 2015  ....................  120 
Table 4.8 Subsidies for development of deer and horse breeding, 2014 and 2015  ....................  120 
Table 4.9 Economically significant programmes for livestock, 2013 -15 ................................ .... 120 
Table 4.10 Subsidies for interest payments for livestock production, 2013 -15 ..........................  121 
Table 4.11 Subsidies for insurance premiums for livestock, 2013 -15 ................................ ...... 121 
Table 4.12 Economically significant programmes for beef cattle, 2013 -15 ...............................  121 
Table 4.13 Interest rate subsidies for selected investment projects, beef, 2014 and 2015  .........  122 
Table 4.14 Funding for dairy development, 2014 and 2015  ................................ ...................  123 
Table 4.15 Interest rate subsidies for dairy produ cers, 2015  ................................ .................  124 
Table 4.16 Federal targeted programme for sustainable development of rural areas, 2015  ........  125 
Table 4.17 Federal tar geted programme for reclamation of agricultural land, 2014 and 
2015  ................................ ................................ ................................ .............................  125 
Table 4.18 Total producer support estimate and single commodity transfer values for 
selected commodities, 2010 -14 ................................ ................................ .........................  128 
Table 4.19 Trade in selected wood products, 2012 -15 ................................ ..........................  129 
Table 4.20 Russian Federation fisheries capture production, 2010 -2014 ................................ .. 131 
Table 4.21 Trade in selected fish and fish products, 2012 -15 ................................ .................  132 
Table 4.22 Energy production, 2014  ................................ ................................ ...................  138 
Table 4.23 Trade in energy, 2012 -15 ................................ ................................ ..................  138 
Table 4.24 Russian credit institutions, 2012 -16 ................................ ................................ .... 145 
Table 4.25 Main indicators for the banking sector, 2012 -15 ................................ ...................  145 WT/TPR/S/345 • Russian Federation  
 
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  Table 4.26 Telecommunications indicators, 2012 -15 ................................ .............................  148 
Table 4.27 Freight and passenger transport volumes, by type of transport, 2012 -14 ................  152 
 
BOXES  
 
Box 3.1 Main institutions involved in IPRs in the Russian Federation  ................................ ....... 100 
 
APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by product group, 2012 -15 ................................ .................  162 
Table A1. 2 Merchandise exp orts by destination, 2012 -15 ................................ .....................  163 
Table A1. 3 Merchandise imports by product group, 2012 -15 ................................ .................  164 
Table A1. 4 Merchandise imports b y origin, 2012 -15 ................................ ............................  165 
Table A1. 5 Services trade by sector, 2012 -15 ................................ ................................ ..... 166 
Table A1. 6 Services exports by destination, 2012 -15 ................................ ...........................  167 
Table A1. 7 Services imports by origin, 2012 -15 ................................ ................................ .. 168 
 
Table A3. 1 Supplies subject to 10% VAT, 2016  ................................ ................................ ... 169 
Table A3. 2 Supplies subject to 0% VAT, 2016  ................................ ................................ ..... 170 
Table A3. 3 Supplies exempt from VAT, 2016  ................................ ................................ ...... 171 
Table A3. 4 Russian Federation's applied MFN tariff summary, 2016  ................................ ....... 173 
 WT/TPR/S/345 • Russian Federation  
 
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  SUMMARY  
1. The Russian Federation became the 156th WTO Member in August 2012. This is its first 
Trade Policy Review. Following the dissolution of the Soviet Union at the end of 1991, the Russian 
Federation embarked on a reform program aimed at  transforming a centrally -planned economy to 
a market -oriented one. It has largely met this objective creating an outward -oriented economy. 
Liberalization of trade and investment, driven by commitments taken during its accession to the 
WTO and the entry into force of the Eurasian Economic Union (EAEU) Treaty on 1 January 2015 
have been major milestones in this process.  
2. The State cont inues to play a major role throughout the Russian economy, with state -owned 
enterprises (SOEs) still accounting for about half of GDP despite a recent decline in their number, 
partly a legacy from the Soviet system. Some of the largest SOEs occupy a domina nt position in 
key sectors, notably in banking, transport and energy. The Russian authorities are taking steps to 
improve corporate governance and privatize SOEs in order to increase overall productivity, 
competition and efficiency. The bulk of the privati zation programme 2014 -2016 has been 
postponed mainly due to adverse market conditions (low asset prices) compounded by the 
economic slowdown.  
3. The Russian Federation was hit exceptionally hard by the global economic crisis during 
2008-09. A strong economic rebound in 2010 -12 was subsequently dampened by political 
instability in the region after developments in the Crimea. Since then, real GDP growth rates 
slowed down in 2013 and 2014, and contracted by 3.7% in 2015. The main cause for this 
significant fall i n GDP growth was the oil price slump below US$50 amid insufficient diversification 
of Russian exports. E conomic sanctions imposed by some Western countries and the 
countermeasures by the Russian Federation have also played a role. The economic uncertainty 
caused by these developments resulted in strong capital outflows, a sharp decline in the value of 
the R ouble  (the national currency), and an increase in inflation.  
4. The Government responded with an anti -crises plan aimed at stabilizing the banking sector, 
a fiscal stimulus, switching to a floating exchange rate regime, and introducing an import 
substitution programme. This programme is a major part of a new industrial policy, which was 
introduced in 2014, and has been implemented through several new laws du ring 2015 and 2016. 
Incentives provided under the industrial policy take many forms, including direct grants to 
infrastructure, tax breaks, and preferences in government procurement contracts.  
5. According to the IMF, the Russian Federation is on a stabiliza tion course; it expects GDP 
growth to contract by 1.8% in 2016 and to grow by 0.8% in 2017. Nonetheless, slow structural 
reforms, weak investment, and adverse population dynamics are affecting potential growth. In 
particular, excessive regulation, weak gov ernance, and significant government intervention in the 
economy have discouraged investment. The Russian authorities acknowledge the need to 
accelerate economic reforms and aim at enhancing competition in goods and services markets, 
improving property righ ts, and revamping transport and telecommunications infrastructure to 
improve the business climate and boost investment.  
6. Traditionally, the Russian Federation has enjoyed surpluses in both the trade and current 
accounts of its balance of payments on the bac k of its significant oil and gas export revenues. The 
current account surplus, as percentage of GDP, fell from 3.3% in 2012 to 1.5% in 2013, and then 
recovered reaching 5% in 2015 as imports declined sharply reflecting both weak domestic demand 
and expendi ture switching due to the R ouble's depreciation. For 2016, the IMF expects a current 
account surplus of 4% of GDP.  
7. The Ministry of Economic Development, the Ministry of Foreign Affairs and the Ministry of 
Industry and Trade are responsible for foreign trad e. When the Russian Federation joined the 
EAEU, the authority over many aspects of its foreign trade regime was transferred to EAEU 
institutions, notably the Eurasian Economic Commission (EEC) . Some of these issues include 
import tariff rates, transit trad e, non -tariff measures (e.g. tariff -rate quotas, import licensing, and 
trade remedy procedures), customs policies (customs valuation, customs fees, and country of 
origin determinations), border enforcement of IPRs, establishment and administration of speci al 
economic and industrial zones, and the development of technical regulations and SPS measures.  WT/TPR/S/345 • Russian Federation  
 
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  As a result, trade policy formulation in the Russian Federation is implemented through both 
national institutions and legislation and EAEU bodies and laws.  
8. During its accession to the WTO, the Russian Federation made wide -ranging commitments 
on market access for goods and services. It is a party to the Information Technology Agreement 
and an observer to the plurilateral Government Procurement Agreement (GPA). Th e Russian 
authorities have stated that GPA accession negotiations will start in the second half of 2016. The 
Russian Federation does not take part in the plurilateral Agreement on Trade in Civil Aircraft. 
It has made regular notifications to the WTO, with only a few outstanding . The Russian Federation 
has participated in ten trade disputes: four as complainant and six as respondent. In addition, it 
has been involved as a third party in 28 cases, most on contingency trade measures. The Russian 
Federation gra nts at least MFN treatment to all its trading partners.  
9. Since mid -2012, the Russian Federation has been taking steps to improve customs 
operations though an action plan that sets out a series of measures to simplify customs 
procedures and improve efficienc y for both imports and exports. In addition, the EEC is working on 
developing the basis for a single window mechanism including streamlining and harmonizing 
customs formalities. A unified information platform, Seaport Portal, is being implemented as an 
electronic single window for handling and customs processing of cargo at Russian seaports. On 
22 April 2016, the Russian Federation deposited the instrument of acceptance of the Trade 
Facilitation Agreement.  The Russian Federation has recently put in place me asures that restrict 
transit trade through its territory.  
10. Foreign investment, technology transfer, and innovation are considered by the Russian 
authorities as critical to the economic modernization of the country. In this context, high -tech 
parks, industri al clusters and special economic zones (SEZs) are being promoted through special 
tax and infrastructure incentives,  available to both local and foreign investors. Some investment 
privileges are also granted in the context of t he Auto Investment Programme a nd agreements 
concluded under this programme. The Russian Federation has confirmed that it will eliminate the 
WTO-inconsistent measures applied under the Auto Investment Programme by 1 July 2018.  
11. When investing in the Russian Federation, the key concerns o f foreign investors include 
corruption, transparency, rule of law, tax rates and complexity of tax regulations, access to 
financing, and respect for property rights. To address these challenges, various measures have 
been implemented, including adopting the National Anti -Corruption Action Plan, amending the 
Criminal Code and the Code on Administrative Violations, and ratifying the OECD Anti -Bribery 
Convention, banning bribes to foreign officials. Moreover, the National Business Initiative Program, 
the Institute of the Entrepreneurs ' Ombudsman of the President of the Russian Federation, and 
other regulatory reforms have been established  over the last few years to attract larger FDI 
inflows and improve the business climate.  
12. On acceding to the WTO in 2012, the Russian Federation bound all tariff lines with 
reductions to be phased in by 2020. At the end of the implementation period, the simple average 
final bound tariff will be 8.4%.  Since 2012, MFN applied tariffs have been reduced from a simple 
average of 11% t o 8.3% including AVEs of non -ad valorem  duties. In 2016, the average applied 
MFN rate on agricultural products (14.6%) was slightly higher than the final bound levels (13.6%), 
while for non -agricultural goods the average MFN applied rate of 6.5% was slight ly below the final 
bound levels ( 7.1%). Since 1 January 2015, the Russian Federation has applied the common 
external tariff of the EAEU. Non -ad valorem duties (mixed and specific) are levied on 14.8% of 
tariff lines.  
13. The Russian Federation has ten regional  trade agreements in force encompassing 
12 partners: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Republic of 
Moldova, Serbia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. In 2014, merchandise trade 
(exports and imports) with R TA partners accounted for 12.2% of the Russian Federation's total 
trade. In the EAEU customs union, there are no tariffs or other border measures on trade among 
members of the EAEU. At end -June 2015, EAEU members were providing preferential access to 
103 d eveloping countries and 48 least developed countries. About 24% of all tariff lines are 
covered by the GSP scheme. For these tariff lines, developing countries qualify for a 25% discount 
on the MFN rate and least -developed countries qualify for duty -free a ccess.  WT/TPR/S/345 • Russian Federation  
 
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  14. Under the EAEU, its members may apply the following common non -tariff measures: a 
prohibition on imports; quantitative restrictions on imports; the exclusive right to import; 
automatic licensing (monitoring) of imports; and authorization procedures for imports. There is a 
common list of goods subject to import prohibitions, and non -automatic licensing or permits. In 
acceding to the WTO, the Russian Federation bound six tariff quotas in its Schedule for: fresh and 
chilled beef; frozen beef; fresh, chi lled and frozen pork; pork trimming; fresh, chilled or frozen 
poultry; and for whey and modified whey.  
15. Since 2012, the Eurasian Economic Commission's Department for Internal Market Defense 
has been responsible for conducting investigations and imposing tr ade remedy measures. 
Decisions to impose trade remedies are taken by the Board of the Commission and are binding on 
all EAEU Member States. The Russian Federation has become an important user of anti -dumping 
and safeguard measures. As at May 2016, it had t wo safeguards and 16 definitive anti -dumping 
measures against imports from China, Germany, India, Italy, Turkey, and Ukraine.  
16. In the Russian Federation, the legal framework for standards, technical regulations and 
conformity assessment systems is the EAEU Treaty and national legislation. The EEC sets a 
common list of products to which technical regulations of the EAEU or national mandatory 
requirements of its members may be applied. Similarly, the EEC is responsible for coordinating the 
development and impl ementation of SPS measures by EAEU members and setting common 
general principles, and safety requirements for goods marketed within the EAEU.  
17. The Russian Federation has not harmonized VAT and excise tax regimes with the other EAEU 
partners. While intra -EAEU trade is duty -free, and hence outside customs control, it remains 
subject to VAT and excise taxes. In the Russian Federation, excise taxes are identical for imports 
and domestically -produced goods and may be levied on specific, ad valorem  or compound bas es, 
depending on the good. Excise taxes are levied on beer, wine and spirits; tobacco and tobacco 
products; petroleum products; and motor vehicles. Typically, the rates are revised annually. VAT is 
applied at a standard rate of 18% although a reduced rate of 10% applies to certain items, 
including basic foodstuffs. Some supplies, including exports, are zero -rated and are thus eligible 
for VAT refund on inputs, while VAT exemptions apply for social assistance and economic 
development objectives.  
18. During 2012 -2016, besides making adjustments to certain tax rates and tax bases, the 
Russian authorities took steps towards easing the administrative burden of tax compliance. Tax 
calculations and record keeping were made simpler by the introduction of standard templa tes and 
the trimming of requisite supporting documentation. At the same time, the approval of various 
privately -developed software solutions facilitated electronic tax filing and data submission. 
Procedural innovations included a shift towards risk -based t ax audits and recourse to 
administrative review as a mandatory step in the dispute resolution mechanism.  
19. In acceding to the WTO, the Russian Federation undertook to bind and reduce export duties 
on 703 tariff lines at the ten -digit level. For 495 of these tariff lines, the export duty should be 
reduced to zero by the end of the implementation period, which ranges from one to five years. The 
Russian Federation also undertook to establish two export quotas for wood products with in -quota 
export duties of 13% and 15%. There is a common list of goods subject to import/export 
prohibitions or restrictions to/from the customs territory of the EAEU.  
20. The EAEU Treaty provides for the application of joint -measures to promote exports of goods 
originating from the member  States to third -party markets; work on the elaboration of such 
measures is ongoing. In the Russian Federation, legal and institutional reforms intended to boost 
exports have largely been framed by the "Support for Exports and Access to Foreign Markets" ro ad 
map and the Government programme on "Development of Foreign Economic Activity" (2013 -
2018), which had been devised as part of a broader initiative to modernize the Russian economy 
and to improve the investment climate.  
21. Public funds in support to Russian  businesses seeking to launch or increase export sales are 
made available at both the federal and sub -federal levels of government. The types of support and 
eligibility criteria applied under sub -federal programmes are not standardized; these programmes 
may be co -financed, on a competitive basis, with federal funds. Statistics on sub -federal export 
support disbursements are not collected by the federal authorities.  WT/TPR/S/345 • Russian Federation  
 
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  22. At the federal level, the state corporation Vnesheconombank (VEB) is involved in export 
suppo rt both directly and through its specialized subsidiaries, including Eximbank of Russia, the 
Export Insurance Agency of Russia, and the Russian Export Centre. The latter was set up in 2015 
as a single window for financial and non -financial support to Russi an exporters. A former VEB 
subsidiary, the Russian Direct Investment Fund, may also make equity investments in medium -
sized, non -energy companies with export potential. According to the authorities, these entities do 
not follow uniform directives on minimu m Russian content and sectoral or geographical priorities in 
export support.  
23. Various tax incentives are available at both the federal and sub -federal levels in the Russian 
Federation. There is considerable tax rate dispersion across regions, economic acti vities and types 
of taxpayers, and the administrative burden on applicants for tax concessions could be rather high. 
Tax concessions are also available to the residents of SEZs, territorial development zones, 
territories of advanced development, the Skolko vo Innovation Center, and the Free Port of 
Vladivostok. In addition, the Russian Federation provides support at the federal level to several 
sectors through capital contributions, partial compensation for interest charged on loans, grants, 
etc. At the sub -federal level, the support is provided via tax incentives, compensation for interest 
on loans, direct grants, and equity injections.  
24. In 2013, a new Government Procurement Law was adopted with the aim of establishing a 
comprehensive government procurement s ystem, promoting procurement efficiency, and tackling 
corruption. Significant achievement has been made in enhancing procurement planning and 
monitoring, and business confidence in public procurement has increased. On 25 March 2014, a 
15% price preference in public procurement for domestically -produced goods was introduced.  
25. Under  the EAEU Treaty, the EEC is responsible for combatting anticompetitive agreements, 
abuse of dominance, and unfair competition on cross -border markets. The EAEU Treaty also 
provides  for the harmonization of member States' national legislations in the area of competition 
policy. The Russian competition regime has been improved over the period under review with a 
view to enabling the Federal Antimonopoly Service of Russia (FAS) to focu s on serious violations of 
the law "On the Protection of Competition". On the other hand, the somewhat broad mandate of 
the FAS, which also includes control of public procurement, compliance with the law on 
advertising, and foreign investments in strategic  industries, has been expanded with additional 
competences over price regulation and defence procurement.  
26. During the review period, the Russian Federation has made significant IPR reforms in terms 
of legislative, administrative and enforcement systems, not ably the amendment of IP chapters of 
the Civil Code in 2014 and the establishment of the Intellectual Property Rights Court in July 2013. 
Under the Strategy for Innovative Development of the Russian Federation 2020, innovation and 
effective protection of I PRs have become key priorities for ensuring FDI inflows and international 
cooperation in the development of new technologies necessary to achieve sustainable economic 
growth.  
27. Regarding sectoral issues, the EAEU Treaty sets out the basic objectives and a c oordinated 
agricultural policy for the Russian Federation and the other members. These are: balanced 
development of production and markets for agricultural products; fair competition among the 
entities of the member States, such as equal access to the comm on agricultural market; 
standardization of requirements related to the circulation of agricultural goods; and protection for 
producers of agricultural goods in the member States on domestic and foreign markets. According 
to its notifications to the WTO Com mittee on Agriculture, the Russian Federation did not provide 
export subsidies during 2012 -15, while the State Programme for Agricultural Development 
supports specific agricultural products and agriculture in general.  
28. Import substitution has become a key f actor in the agricultural policy of the Russian 
Federation . In August 2014, in response to economic sanctions imposed by some Western 
countries, t he Russian Federation introduced a one -year ban and limits on imports of agricultural 
and food products agains t such countries. The banned products include certain fresh fruits, 
vegetables, meat, poultry, fish, and dairy products. Sanctions and counter -sanctions have 
subsequently been extended.  WT/TPR/S/345 • Russian Federation  
 
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  29. The Russian Federation has the largest forest area in the world but th e sector faces several 
problems, including weak infrastructure development, depletion of resources in traditional 
harvesting areas, and lack of capacity to use low -grade resources. A policy of intensive forest use 
and forest reproduction is being implement ed. The Russian Federation is one of the biggest fishing 
nations in the world. A policy of fisheries management is being operated and enforced through a 
total allowable catch system based on scientific data on reserves of species.  
30. A key priority of the Rus sian Federation is to diversify its economy away from its  abundant 
mineral and energy resources. It is the world's second -largest oil and gas producer, the fourth -
largest producer of electricity, and has become one of the most energy -intensive economies. A  
strategic goal has been set to reduce the energy intensity of GDP by 40% by 2020 through energy 
saving, improving efficiency, eliminating regulatory constraints, and encouraging the development 
of renewable energy, including geothermal, solar and wind ene rgy. Despite the significan fall in oil 
prices in recent years, oil -related activities still contribute some 20% to GDP, represent two thirds 
of merchandise exports, and just under half of federal government revenues.  
31. Services are the main contributor to the Russian Federation's output (over 62% of GDP in 
2015). As part of its WTO accession commitments, the Russian Federation has eliminated the 49% 
foreign equity limitation in telecommunications. The Russian Federation fully applies the WTO's 
Basic Telecom munications Agreement. The right to foreign capital participation in the banking 
system of the Russian Federation is limited to 50%. Foreign insurance companies will be allowed 
to establish branches nine years after the accession of the Russian Federation to the WTO 
(August  2021).  
32. The main objectives of the Russian Federation's trade policy are to help modernize its 
economy, foster its global competitiveness, and create favorable conditions for its continuous 
growth and sustainable development. In this rega rd, WTO Membership locked the Russian 
Federation into a generally liberal trade regime towards the rest of the world. Nonetheless, political 
and economic reforms in the Russian Federation face challenges from vested interests, governance 
issues, and the re lative complexity of its economic environment. In the short to medium term, the 
Russian Federation's economic performance will also be determined by, inter alia , the evolution of 
oil prices and its ability to resolving political issues with countries in th e region and elsewhere. 
However, in the long -run, consistent and determined implementation of reforms will help lift the 
Russian economy towards its true potential.  
 WT/TPR/S/345 • Russian Federation  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Russian Federation ranks tenth in t he world economy, with a nominal GDP of around 
US$1,326 billion in 2015. It is the  largest nation covering more than one eighth of the world's 
inhabited area, and has a wide range of landforms  with abundant mineral, energy, forest, and 
water resources. It is also  the world's second -largest oil and gas producer, the fourth -largest 
producer of electricity, and has become one of the most ener gy-intensive economies 
(Section  4.3.3).1 Oil-related activities contribute some 20% to GDP, and represent two thirds of 
merchandise exports and about half of federal government revenues. The Russian Federation has 
a relatively well -developed railway network but a poor road system.2 
1.2.  The Russian economy is relatively diversified. Commercial services are the main contributor 
to its output, with an estimated 62.3% share of GDP in 2015, followed by manufacturing; mining 
and quarrying; construction; and agriculture and related activities (Chart 1.1). The Russian 
Federation is one of the world's largest manufacturers. The main indu stries include oil and gas, 
mining, processing precious stones and metals, aircraft building, aerospace production, weapons 
and military machinery manufacture, electric engineering, pulp and paper production, automotive 
industry, transport, and agricultura l machinery production.  
Chart 1.1 Gross domestic product by economic activity (at basic prices), 2015  
Agriculture, hunting 
and forestry 4.0%Fishing 0.2%Mining and 
quarrying
9.5%Manufacturing
13.6%Electricity, gas and 
water supply 3.2%Construction 7.0%
Real estate, 
renting 
and business 
activities
17.3%Wholesale and 
retail trade
16.3%Transport and 
communications 
7.9%
Compulsory social 
security 6.4%
Financial 
intermediation 
5.3%
Health and 
social work 
3.5%Other 
5.6%Services
62.3%Chart 1.1 Gross value added by economic activity (at basic prices), 2015
Source WTO Secretariat, based on data provided by the authorities.
 
Source:  WTO Secretariat, based on data provided by the Russian authorities.  
1.3.  The Russian Federation is th e world's ninth most populous nation, with a population of 
around 146 million people in 2015, as well as 140 recognized nationalities and 40 ethnic groups.  
Despite a decline in poverty in recent years, 10.8% of the population was still living below the 
national poverty line in 2013 (down from 13% in 2009), according to the latest data from the 
World Bank.3 The Russian Federation ranks 50th (out of 188 countries) on the latest UNDP Human 
Development Index.4  
1.4.  The Russian Federation faces important demographic  challenges mainly due to relatively low 
fertility rates and high premature mortality rates (particularly among males)5, and early 
retirement. All these factors contribute to the long -term decline in the labour supply. In addition, 
                                                
1 In 2008, the authorities set a strategic goal to reduce energy intensity of GDP by 40% by 2020 
through energy saving, improving efficiency and eliminating regulatory constraints. OECD (2014).  
2 Estimates suggest that a 10% improvement in the Russian Federation's transport efficiency could 
increase its GDP by 0.8%. OECD (2014).  
3 World Bank online information. Viewed at: http://data.worldbank.org/country/rus sian-federation . 
4 UNDP online information. Viewed at: http://hdr.undp.org/en/countries/profiles/RUS .  
5 Nonetheless, on average, life expectancy in the Russian Federation, for both males and f emales, 
increased from 68.9 years in 2010 to 70.9 years in 2014, while the population growth rate went from -1.7 in 
2010 to 0.2% in 2014. Federal State Statistics Service online information. Viewed at: www.gks.ru.  WT/TPR/S/345 • Russian Federation  
 
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  inequality is considered  severe, and regional social inequality hardly changed during the last 
decade despite increased labour and capital market integration and several programmes directed 
towards convergence.6 This is mainly a consequence of large differences in natural resourc e 
endowments between regions, the legacy of Soviet production location choices, and weak 
infrastructure in many regions.  
1.5.  Since 10 November 2014, the Central Bank of Russia (CBR) adopted a de jure  and de facto  
floating exchange regime with foreign exchange interventions to safeguard financial stability.7 The 
main function of the CBR, as determined by Article 75 of the Constitution, is to protect the rouble  
(Rub, the national currency), and ensure its stability. The sustainability of the rouble  is achieved 
through maintaining price stability, which is the primary objective of monetary policy.8 Other goals 
of the CBR are to promote the development of the banking  system, ensure the solvency of the 
national payments system, and strengthen the financial markets. The Russian Federation has an 
exchange system free of restrictions on the making of payments and transfers for current 
international transactions.9 
1.6.  The State continues to play a major role throughout the Russian economy, partly a legacy 
from the Soviet syst em, but also due to the dependence on natural resource extraction and natural 
monopolies that often remain in state hands. Despite a decline in the number of state -owned 
enterprises (SOEs) over the last few years, they still account for about half of GDP w ith some of 
the largest SOEs occupying a dominant position in key sectors such as banking, transport and 
energy (Section 3.3.3). Some SOEs face governance issues.10 The Russian authorities are taking 
steps to improve corporate governance and privatize SOEs,  in order to increase overall 
productivity, competition and efficiency. The original privatization plan for 2014 -16 aimed at the 
withdrawal of the State from all SOEs, except for natural monopolies and those SOEs in oil and 
defence sectors. Nonetheless, wh ile some privatizations took place, the majority of large 
transactions were delayed because of the unfavourable market situation (Section 3.3.3).11 
1.2  Recent Economic Developments  
1.7.  Following the dissolution of the Soviet Union at the end of 1991, the Russian Fe deration 
embarked on a transition from a centrally planned to a market economy. During the period 1999 -
2008 the Russian economy grew at about 7% per year on average driven largely by rapidly 
increasing oil and gas revenues and mining investments. Terms -of-trade improvements also led to 
expansion in the non -tradeable sector.  This growth burst was possible because of large unused 
capacity that emerged in the aftermath of the post -transition recession, the removal of bottlenecks 
inherited from Soviet times, an d the adoption of modern managerial and technological practices.12 
The global economic crisis of 2008 -09 caused a contraction in real GDP of 7.8% in 2009, but was 
followed by annual growth rates of 4.1% on average over the period 2010 -12. 
1.8.  Since then, real G DP growth rates slowed to 1.3% and 0.7% in 2013 and 2014, respectively, 
while a contraction of 3.7% occurred in 2015.13 This negative trend is partly because  of declining 
private consumption and investment  in light of the Urals crude oil price slump from ov er US$100 
per barrel  on average during the period 2012 -14 to about US$34 per barrel  at the end of 2015. 
However, it also reflects stalled structural reforms, weak investment, and adverse population 
dynamics. In particular, excessive regulation, weak govern ance, and significant government 
intervention in the economy have discouraged investment.14  
                                                
6 OECD (2014).  
7 Until 10 November 2014, the regime was categorized as a controlled floating exchange rate 
arrangement. IMF (2015a) . 
8 Article 3 of the Law No.  86-FZ "On the Central Bank of the Russian F ederation (Bank of Russia)", 
10 July 2002.  The CBR is accountable to the State Duma that appoints and  dismisses the CBR Governor (on 
the proposal of the President of the Russia n Fed eration) and members of the CBR Board o f Directors (on the 
proposal of the CBR Governo r, agreed with the President of the Russian Federation).  
9 The Russian Federation accepted the obligations of Article VIII of the IMF as from 1 June 1996. 
IMF (2015) . 
10 OECD (2015b).  
11 OECD (2014).  
12 OECD (2014).  
13 IMF (2016a).  
14 IMF (2015a) . WT/TPR/S/345 • Russian Federation  
 
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  1.9.  GDP growth in the Russian Federation has also been affected by the economic sanctions 
imposed, since March 2014, inter alia , by the European Union, Japan, and the U nited States 
against some  Russian individuals, entities, and goods. Sanctions include a ban on exports of high -
technology products for use in the energy sector and very limited access to foreign capital markets 
for Russian companies . In August 2014, the Ru ssian Federation introduced a one -year ban and 
limits on imports of agricultural and food products against such countries. The banned products 
include certain fresh fruits, vegetables, meat, poultry, fish, and dairy products. Sanctions and 
counter -sanction s have subsequently been extended. According to some estimates, the Russian 
Federation lost half a percentage point of economic growth in 2015 due to sanctions and three 
percentage points because of a drop in oil prices.15 Despite the  difficult economic sit uation,  
recorded unemployment remains relatively low and virtually unchanged over the last few years 
(Table 1.1), and real wage decrease has been the labour market's main channel of adjustment to 
the new environment.  
Table 1.1 Selected economic indicators, 2012 -15 
 2012  2013  2014  2015  
Real sector indicators  
Nominal GDP (Rub billion)a 66,927  71,017  77,945  80,804  
Nominal GDP (US$ billion)a 2,153  2,230  2,029  1,326  
Real GDP (% change)  3.5 1.3 0.7 -3.7 
Consumer  prices (average; % change)  5.1 6.8 7.8 15.5 
Unemployment rate (%)  5.5 5.5 5.2 5.6 
Gross domestic product at basic prices (%)  100.0  100.0  100.0  100.0  
Agriculture, hunting and forestry  3.6 3.7 3.8 4.0 
Fishing  0.2 0.2 0.2 0.2 
Mining and quarrying  9.4 9.0 9.1 9.5 
Manufacturing  13.5 13.9 13.9 13.6 
Electricity, gas and water supply  3.3 3.2 3.1 3.2 
Construction  7.7 7.6 7.3 7.0 
Services  62.3 62.5 62.7 62.3 
 Wholesale and retail trade  17.6 17.4 17.5 16.3 
 Hotels and restaurants  0.9 0.9 0.9 0.9 
 Transpor t and communications  7.9 7.9 7.8 7.9 
 Financial intermediation  4.4 4.8 5.3 5.3 
 Real estate, renting and business activities  17.1 17.1 16.9 17.3 
 Compulsory social security  6.3 6.3 6.3 6.4 
 Education  2.5 2.4 2.5 2.4 
 Health and social work  3.4 3.4 3.4 3.5 
 Other community and personal service activities  1.6 1.5 1.5 1.5 
Money and banking (% change)  
Base money  14.0 6.6 7.9 -2.5 
Rouble broad money  11.9 14.6 2.2 11.5 
Credit to the economy  19.7 17.5 22.1 7.9 
Public sector (% of GDP)  
Net lending/borro wing (overall balance)  0.4 -1.2 -1.1 -3.5 
 Revenue  35.0 34.4 34.3 32.8 
 Expenditures  34.6 35.6 35.4 36.3 
Primary balance  1.0 -0.6 -0.4 -2.7 
Non-oil balanceb -9.3 -10.4 -10.6 -10.2 
National accounts (% change)a -9.2 -9.1 -9.4 -9.0 
Consumption  6.1 3.6 1.1 -7.5 
Households  7.4 4.4 1.5 -9.6 
Public administration  2.5 1.4 0.2 -1.8 
Non-profit institutions serving households  -1.0 -1.2 0.0 0.5 
Gross capital formation  3.9 -7.3 -8.0 -18.7 
Exports of goods and services  1.4 4.6 0.6 3.6 
Imports of goods and se rvices  9.7 3.6 -7.6 -25.7 
                                                
15 Deputy Prime Minister Arkady Dvorkovich.  ITAR-TASS World Service, 18 January 2016.  Opinions vary 
as to the effectiveness of such restrictions in general and in the particular case of the Russian  Federation.  WT/TPR/S/345 • Russian Federation  
 
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   2012  2013  2014  2015  
External sector  
Rub/US$ (period average)  31.3 31.8 38.4 61.0 
Real effective exchange rate (average, % 
change)  2.4 1.2 -8.4 -16.5 
Current account (% of GDP)  3.3 1.5 2.9 5.0 
Gross international reserves (US$ billion)  537.6  509.6 385.5  368.4  
In months of imports (of goods and services)  14.5 13.0 10.8 15.7 
Urals crude oil spot price (US$ per barrel)  110.8  108.3  98.0 51.4 
Oil extraction (million tonnes)  518.0  523.2  526.7  533.6  
a GDP data for 2012 -13 was calculated using the Sy stem of National Accounts 1993 (1993 SNA), 
thereafter GDP was calculated using the 2008 SNA.  
b Calculated using the 2008 SNA.  
Source:  Data provided by the Russian authorities.  
1.10.   At the end of 2014, the trade sanctions, the oil price slump below US$50 per bar rel coupled 
with the insufficient diversification of Russian exports (Section 1. 3.1), and the necessity to pay off 
considerable external debt amounts had resulted in significant rouble  depreciation against major 
currencies.16 In addition, there were l arge n et capital outflows (US$154  billion or about 8% of GDP 
in 2014, the highest level since 1999 –2000), and a significant decline in international reserves, 
while inflation (as measured by the average consumer price index) increased from 5.1% in 2012 
to 15.5% in 2015 following the exchange rate depreciation and the Russian Federation's 
countersanctions. In light of this, t he Government adopted an anti -crisis plan around four main 
pillars: stabilizing the banking system, implementing a fiscal stimulus, accelerat ing the move to a 
floating exchange rate regime, and introducing an import substitution programme.  
1.11.   To secure financial stability and avoid a credit crunch, funds initially worth about 2% of GDP 
were allocated for the recapitalization of 27 large banks (43%  of total banking assets), certain 
smaller banks affected by the sanctions, and selected regional banks.  The CBR also undertook to 
recapitalize the largest bank (Sberbank, which accounts for 30% of system assets) if needed. In 
addition, intensified supervi sion and a temporary forbearance strategy were adopted, which 
included doubling the level of insured deposits, granting a moratorium on recognizing negative 
valuation changes for securities portfolios, allowing foreign exchange denominated assets and 
liabilities at  1 October 2014 exchange rates, and flexibility in loan classification and provisioning.17  
1.12.   The Russian Federation derives about 50% of its federal government revenues from oil -
related activities. These revenues have helped finance fiscal deficits since the global economic 
crisis in 2008 -09. Some fiscal consolidation has occurred over the last few years , with the non -oil 
primary deficit decreasing  from 9.2% of GDP in 2012 to 9.1% in 2015 (Table 1.1). A fiscal rule 
was introduced in December 2012 to help manage the impact of volatile oil resource -revenues and 
limit fiscal sustainability risks. Under the fiscal rule, the oil -price benchmark is set as the minimum 
of (a) a backward -looking moving average of up to ten years of Urals oil prices, and (b) a three -
year backward looking average. In 2015, the fiscal rule was suspended due to the dramatic 
changes in external conditions. The parameters of the new fiscal rule are currently under 
discussion (Section 1.4).  
1.13.   Given the difficult economic environment, th e 2015 government budget was revised by 
reallocating expenditures to increase spending on pension and support specific economic sectors 
and employment. Additional measures and budget spending were financed primarily by the 
Reserve Fund and the National Wea lth Fund that provide budget credits to regions, federal credit 
guarantees, and support to systemically important enterprises and banks. As of March 2016, the 
Reserve Fund amounted to about US$50 billion (4.8 % of GDP), and the National Wealth Fund to 
US$71  billion (6.8 % of GDP).18 
                                                
16 In 2014 and 2015, the real average effective exchange rate depreciated by 8.4% and 16.5%, 
respectively (Table 1.1). In nominal terms, the rouble depreciated 72.3% and 51.7% against the U .S. dollar 
and the euro, respectively, in 2014; it depr eciated 20.5% and 9.9% in 2015 against the U .S. dollar and the 
euro, respectively.  
17 IMF (2015a) . 
18 Both funds, managed by the Ministry of Finance, were created, inter alia , to save windfall energy 
profits , cover budget gaps and finance  spending  on infrast ructure . WT/TPR/S/345 • Russian Federation  
 
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  1.14.   In November 2014, when market pressures intensified, the CBR floated the rouble  in order 
to facilitate a more rapid adjustment to external shocks and to curb reserve losses. On 
15 December  2014, the CBR raised its key policy intere st rate from 10.5% to 17% (the largest 
single increase since 1998) to maintain financial stability and respond to a worsening inflation 
outlook. It also limited the size of net foreign asset holdings by the largest Russian exporters (this 
measure was lifte d in March 2015).19  
1.15.   In 2015, the contribution of the exchange rate to inflation gradually declined  as prices 
adjusted to the rouble  depreciation and food embargo. At the same time, the risk trade -off shifted 
more towards considerable economy cooling becaus e of the unfavourable foreign economic 
situation, higher uncertainty, and deteriorated household and business sentiment along with 
tougher monetary conditions that had an effect on both consumption and investment. Therefore, 
the CBR steadily decreased its key interest rate from 17% to 11% in August 2015, and to 10.5% 
on 10 June 2016 in an effort to stimulate economic growth and given the positive trends of more 
stable inflation, as well as decreased inflation expectations and inflation risks.20 
1.16.   In 2015, the CBR also decided to launch operations to buy foreign currency to replenish the 
international reserves that had dropped from US$537.6 billion in 2012 to US$385.5 billion in 2014 
and ensure financial stability in case of long -lasting negative external shocks . It does not target 
any particular level for exchange rates and does not have a strict policy on building international 
reserves. Nonetheless, the CBR intends to gradually increase its international reserves to around 
US$500 billion provided foreign excha nge market conditions are favourable.  
1.17.   Traditionally, the Russian Federation has enjoyed surplus in both its trade and current 
accounts of its balance of payments on the back of its significant oil and gas export revenues 
(Table 1.2 and Section 1.3). The cu rrent account surplus, as percentage of GDP, fell from 3.3% in 
2012 to 1.5% in 2013,  and then recovered reaching 5 % in 2015 as imports declined sharply 
reflecting both weak domestic demand and expenditure switching due to the rouble  depreciation. 
For 2016,  the IMF expects a current account surplus of 4 % of GDP.21  
Table 1.2 Balance of payments, 2012 -15 
(US$ million)  
 2012  2013  2014  2015  
Current account  71,282  33,428  58,319  69,564  
Goods and services  145,076  122,307 134,459  111,902  
Exports  589,774  591,958  563,507  393,258  
Imports  444,698  469,651  429,048  281,356  
Goods (net)  191,663  180,566  189,737  148,513  
Exports  527,434  521,835  497,763  341,467  
Imports  335,771  341,269  308,026  192,954  
Services (net)  -46,587  -58,259  -55,278  -36,611  
Exports  62,340  70,123  65,744  51,791  
Imports  108,927  128,382  121,022  88,402  
Primary income (net)  -67,661  -79,604  -67,962  -36,713  
Secondary income (net)  -6,133  -9,274  -8,178  -5,624  
Capital account  -5,218  -395 -42,005  -333 
Current  and capital account balance  66,065  33,033  16,314  69,231  
Financial account balance  55,693  24,136  24,274  74,258  
 Direct investment  -1,765  17,288  35,051  16,733  
 Portfolio investment  -17,031  11,012  39,943  26,641  
 Financial derivatives  1,356  346 5,312  7,432 
 Other investment  43,117  17,567  51,515  21,749  
 Reserve assets  30,017  -22,077  -107,547  1,704  
Net errors and omissions  -10,371  -8,898  7,960  5,027  
Source:  Data provided by the Russian authorities.  
                                                
19 The Government issued a directive requesting large SOEs to ensure that, by 1 March 2015, the size of 
their net foreign asset holdings was no greater than the level as of 1 October 2014.  
20 The CBR has indicated  that it will consider the possibili ty of a further cut based on estimates for 
inflation risks and alignment of inflation decline with the forecast trajectory.  IMF News Report, 10 June 2016.  
21 IMF (2016).   WT/TPR/S/345 • Russian Federation  
 
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  1.18.   On 4 August 2015,  the Governmental Commission on Import Substitution was established 
to implement state policy in the field of import substitution. It is a coordinating body mandated to 
ensure consistency of actions among , inter alia , federal executive bodies, and local authorities and 
organizations.22 In the fa ce of trade sanctions and the depreciation of the rouble , the key objective 
of the Commission is to promote domestic production of certain commodity groups and product 
types .23 
1.19.   Import substitution has become a key factor of output backup in agriculture (Sec tion 4.1), 
and some manufacturing industries, primarily production of consumer goods (e.g. food products, 
household chemicals, cosmetics, and medicines). Import substitution has also contributed to an 
increase in the production of investment goods, such as  machine -building and electronic 
equipment. This, in turn, has reduced somewhat the dependence on technology imports in 
commodity sectors. The Commission also seeks to ensure that equipment provided by suppliers to 
state and private companies receiving pub lic funding is produced domestically where possible, 
which will require closed tendering in at least s ome cases (Section 3.3.4 ). 
1.3 Trade and Investment Performance  
1.3.1 Trade in goods and services  
1.20.   The ratio of merchandise trade (exports and imports) to  GDP averaged about 40% during 
the period 2012 -15. In 2014, the Russian Federation ranked 7th among world merchandise 
exporters and 11th among importers (considering EU member States as one and excluding intra -EU 
trade).24  
1.21.   Merchandise exports decreased fro m US$524.8 billion in 2012 to US$343.9 billion in 2015. 
Fuels represented 62.8% of total merchandise exports in 2015 (against 70.3% in 2012). Next 
comes manufacturing exports (led by chemicals, and machinery and transport equipment), which 
contributed 20.4 % of total merchandise exports in 2015 (16.2% in 2012). The remaining Russian 
exports are agricultural products (6.8% in 2015) (Table A1.1 and Chart 1.2).  
1.22.   Merchandise exports are also highly concentrated geographically. In 2015, 39.9%  of total 
exports were  shipped to the EU (compared with 46.9% in 2012), followed by Asia with 20.9%, and 
countries of the Commonwealth  of Independent States (CIS) with 11.1%. In 2015, the 
Netherlands was the largest single export market of the Russian Federation (11.7% of total  
merchandise exports), followed by China (8.2%). The shares of Japan and the United States were 
4.2% and 2.4%, respectively (Table A1.2 and Chart 1.3).  
1.23.   Merchandise imports decreased from US$316.2 billion in 2012 to US$182.8 billion in 2015. 
Manufactures, n otably machinery and transport equipment and chemicals, represented 80.2% of 
total Russian merchandise imports in 2015 (82.7% in 2012). The share of agricultural products 
increased to 15.1% in 2015 (Chart 1.2), while that of mineral fuels averaged 1.4% of total 
merchandise imports during 2012 -15 (Table A1.3).  
                                                
22 Decision  of the Government of the Russian Federation N o. 785. The Russian Government  began 
discussing import substitution in agriculture as early as 2014 . 
23 Government Resolution No. 758, 4 August 2015.  
24 WTO Statistics Database, "Trade Profiles: Russian Federation". Viewed at: 
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=S&Country=RU .  WT/TPR/S/345 • Russian Federation  
 
- 19 - 
 
  Chart 1.2 Composition of merchandise trade, 2012 and 2015  
Chart 1.[Prd]
Composition of merchandise trade, 2012 and 2015
2012 2015
(a)    Exports  (f.o.b.)
Crude oils 
(SITC 3330)
34.5%Manu -
factures
16.2%Crude oils 
(SITC 3330)
26.0%
Manu -
factures
20.4%
Mining
68.7%Chemicals
5.8%
Iron and steel
4.4%Other
4.0%
Other mining
10.9%Agriculture
6.8%
Natural gas 
(SITC 3432)
12.2%Other manf.
10.2%
Petroleum oils, 
other than crude oils 
(SITC 334)
19.6%
Total:  US$524.8 billion Total:  US$343.9 billion  
(b)    Imports (c.i.f.)
Chemicals
12.1%Transport 
equipment  
18.1%
Manufactures
82.7%Other 
consumer 
goods
8.8%
Electrical 
machines
13.5%Textiles & 
clothing
4.4%
Iron and steel
2.8%
Non-electrical 
machinery
15.1%Mining
3.5%
Chemicals
15.0%Iron and steel
2.3%Mining
4.1%
Other semi -
manufactures
7.9%Transport 
equipment  
12.7%Other 
consumer 
goods
8.7%
Electrical 
machines
13.9%Agriculture
15.1%
Manufactures
80.2%
Non-electrical 
machinery
15.2%Textiles & 
clothing
4.6%Other
0.6%
Agriculture
13.3%
Total:   US$316.2 billion Total:  US$182.8 billion %
Other
0.5%Mining
75.4%Chemicals
4.7%
Source:  WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).Other semi -
manufactures
8.1%Iron and steel
4.4%Other
3.5%
Other mining
9.3%Agriculture
4.9%
Petroleum oils, 
other than crude oils 
(SITC 334)
19.7%Other manf.
7.0%
Natural gas 
(SITC 3432)
11.9%
 
Source:  WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).  WT/TPR/S/345 • Russian Federation  
 
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  Chart 1.3 Direction of merchandise trade, 2012 and 2015  
Chart 1.[Reg]
Direction of merchandise trade, 2012 and 2015
2012 2015
(a)    Exports (f.o.b.)
Americas 
4.0%
Other Europe
4.6%Europe
44.5%
China
8.2%EU-28
39.9%
CIS
11.1%
Other 
CIS
7.5%Other 
19.4%
Belarus
3.6%Asia 
20.9%Other Asia 
4.6%
Japan  4.2%Korea,  Rep. 
of 3.8%
Total:  US$524.8 billion Total:  US$343.9 billion
(b)    Imports (c.i.f.)
Europe  
46.1%EU-28
42.0%
Ukraine 5.7%
Belarus
4.1%Americas 
8.6%
Other 
Europe
4.2%China
16.4%Other Asia
5.0%
Other CIS 4.0%CIS
13.8%Other 
1.6%
Japan 5.0%Korea, Rep. of
3.5%
Europe  
42.5%EU-28
35.8%
Ukraine 3.1%
Belarus4.4%Americas 
11.0%
Other 
Europe
6.8%China
19.3%Other Asia
7.1%
Other CIS 3.7%Other 
2.8%
Japan 3.7%Korea, Rep. of
2.5%
CIS
11.1%Asia
32.6%
Total:   US$316.2 billion Total:   US$182.8 billionAmericas 
3.9%
Other Europe
5.4%
Source:  Asia
29.8%Europe
52.4%
China
6.8%EU-28
46.9%
CIS
11.7%
WTO Secretariat calculations, based on UNSD, Comtrade database.Other 
CIS
7.6%Other 
15.2%
Belarus
4.1%Asia 
16.9%Other Asia 
4.4%
Japan 3.0%Korea, Rep. of
2.6%
 
Source:  WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).  
1.24.   The EU was the source of 35.8% of total merchandise imports in 2015 (42% in  2012), led 
by Germany whose participation decreased from 12.1% to 10.4% during the period. Led by China, 
the share of Asia increased to 32.6% in 2015, whereas that of CIS countries went down to 11.1%, 
partly due to a decrease in the participation of Ukrai ne over the last few years. The share of the 
United States increased from 4.9% in 2012 to 6.3% in 2015 (Table A1.4 and Chart 1.3).  
1.25.   Regarding services trade, the Russian Federation ranked 11th as exporter and 7th as 
importer in the world (considering EU mem ber States as one and excluding intra -EU trade) in 
2014. Balance of payments data indicate that the Russian Federation is a net importer of services 
although its deficit decreased from US$46.6 billion in 2012 to US$36.6 billion in 2015 (Table  1.2). WT/TPR/S/345 • Russian Federation  
 
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  Net out flows have mostly occurred in the form of payments for trade -related transport and foreign 
travel, with the EU being the largest trading partner in services trade (Chart 1.4 and Tables  A1.5 
to A1.7).  
Chart 1.4 Trade in services by sector and partner, 2015  
32.5%
16.3%
13.3%10.4%7.7%7.1%12.8%
39.5%
15.1%13.2%6.4%6.2%5.6%5.5%8.5%
EU-28 
37.9%
Ukraine 
3.6%Belarus 
2.4%Other CIS 
5.4%United 
States 
5.4%Turkey 
4.5%China 
3.0%Other 
27.1%
Switzerland
5.9%EU-28
46.1%
CIS
6.5%Turkey
7.5%United 
States
5.6%Egypt 
3.6%China
2.0%Other
25.6%
Switzerland
3.0%Chart 1. [Russia -trade in services]
Trade in Services by sector and partner, 2015
Exports Imports
(a)    Services trade by sector
(b)    Services trade by partner
Total:   US$51.8 billion Total:   US$88.4 billion
WTO Secretariat's calculations, based on data from the Central Bank of the Russian 
Federation.  Viewed at: http://www.cbr.ru/Eng/statistics/?PrtId=svs 
(Accessed to data in June 2016).Other
ConstructionTelecommunications, 
computer and 
information services Professional and management 
consulting servicesCharges for the use of 
intellectual property
Technical, trade -related, 
and other business servicesTransportTravel
Kazakhstan
4.9%
Source
 
Source:  WTO Secretariat calculations, based on data from the Central Bank of the Russian Federation. 
Viewed at: http://www.cbr.ru/Eng/statistics/?P rtld=svs  (data accessed in June 2016).  
1.3.2 Foreign direct investment  
1.26.   In 2013, the Russian Federation became the third -largest recipient of foreign direct 
investment (FDI) inflows in the world, with a record level of US$69.2  billion. This was partly due to WT/TPR/S/345 • Russian Federation  
 
- 22 - 
 
  British Petroleum's acquisition of a large stake in Rosneft, the bigg est takeover in Russian history. 
Nonetheless, as a result of  geopolitical tensions and the difficult economic situation, FDI inflows 
into the Russian Federat ion fell significantly to U S$22 billion in 2014  and US$4.8 billion in 2015.  
With FDI outflows averaging US$53.5 billion per year during the period 2012 -15 the Russian 
Federation is also an important contributor to global FDI. However, its contribution in absolute 
terms, decreased fr om a peak of US$ 86.5 billion in 2013 to US$21.6 billion in 2015 in the wake of 
the economic sanctions  (Table 1.3) . 
Table 1.3 FDI flows by country, 2012 -15 
(US$ million)  
 2012  2013  2014  2015  2012 -2015a 
FDI inf lows            
World  50,588  69,219  22,031  4,839  36,669  
EU-28 40,628  58,313  7,754  -8,252  24,611  
  of which:       
  Ireland  9,877  10,399  -531 620 5,091  
  United Kingdom  46 18,927  120 1,030  5,031  
  Netherlands  10,330  5,716  1,102  -267 4,220  
  Luxembourg  10,814  11,638  -693 -5,757  4,000  
  France  1,232  2,121  2,224  1,634  1,803  
  Cyprus  1,985  8,266  3,158  -7,176  1,558  
British Virgin Islands  2,475  9,379  3,123  2,522  4,375  
Bahamas  2,111  2,791  3,638  5,201  3,435  
Switzerland  401 1,086  2,472  112 1,018  
Bermuda  -320 404 1,777  1,932  948 
China  450 597 1,271  571 722 
CIS 776 881 476 601 683 
  of which:       
  Kazakhstan  277 208 357 433 319 
  Belarus  110 219 59 42 108 
  Azerbaijan  153 75 37 32 74 
Japan  596 369 295 447 427 
United States  285 485 708 202 420 
Other 3,187  -5,087  516 1,503  30 
FDI outflows            
World  48,822  86,507  57,082  21,572  53,496  
EU-28 32,226  18,169  35,833  9,070  23,824  
  of which:       
  Cyprus  20,920  7,671  23,546  3,907  14,011  
  Austria  1,035  5,265  1,135  746 2,045  
  Spain  980 1,356  1,879 152 1,092  
  Germany  1,118  1,334  1,016  678 1,037  
  United Kingdom  632 1,294  1,935  -440 855 
British Virgin Islands  7,395  62,223  718 3,441  18,444  
Switzerland  76 1,358  6,927  203 2,141  
Turkey  4,105  1,447  1,183  1,475  2,052  
CIS 2,217  2,229  882 2,453  1,945 
  of which:       
  Kazakhstan  845 671 657 680 713 
  Belarus  470 863 609 736 669 
  Ukraine  600 496 -493 595 300 
Bermuda  1,136  571 2,997  -188 1,129  
United States  688 739 1,654  819 975 
Bahamas  443 560 756 1,073  708 
Singapore  1,262  304 817 383 692 
Other  -726 -1,092  5,317  2,843  1,585  
a Simple average.  
Source:  WTO Secretariat, based on data from the Central Bank of the Russian Federation. Viewed at: 
http://www.cbr.ru/Eng/statistics/  (dataset acces sed in June 2016).  
1.27.   When investing in the Russian Federation, the key concerns of foreign investors include 
corruption25, transparency, rule of law, tax rates and complexity of tax regulations, access to 
                                                
25 Although its international ranking has improved during the last few years, the Russian Federation 
scores poorly in international surveys on corruption . Particularly worrying is corruption in law enforcement. 
OECD (2015b).  WT/TPR/S/345 • Russian Federation  
 
- 23 - 
 
  financing, and respect for property rights (Section 2. 6).26 To address these challenges, various 
measures have been implemented, including adopting the National Anti -Corruption Action Plan, 
amending the Criminal Code and the Code on Administrative Violations, and ratifying the OECD 
Anti-Bribery Convention, ban ning bribes to foreign officials.27 Moreover , several  measures have 
recently been taken by the Russian authorities to attract larger FDI inflows and improve the 
business climate (Sections 2.3 and 2.5) as shown in the World Bank's report on doing business 
where the ranking of the Russian Federation improved significantly from 112th in 2012 to 51st (out 
of 189 economies) in 2016.28 The Russian Federation aims to improve its ranking in the World 
Bank's Doing Business Index to 20th by 2020.  
1.28.   On average, the main i nvestors in the Russian economy since 2012 have been: Ireland, 
United Kingdom, British Virgin Islands, Netherlands, and Luxembourg; while the main recipients of 
FDI outflows from the Russian Federation include: British Virgin Islands, Cyprus, Switzerland, 
Turkey, and Austria (Table 1.3). Since 2012, the volume of the FDI into the Russian Federation 
was, on average, largely accounted for by services, led by financial and insurance activities, 
followed by mining and quarrying of fuel and energy materials, man ufacturing (mainly coke and 
refined petroleum products), and construction (Table 1.4).  
Table 1.4 FDI inflows by economic activity, 2012 -15 
(US$ million)  
 2012  2013  2014  2015  2012 -
15a 
Total  50,588  69,219  22,031 4,839  36,669  
Agriculture, forestry and fishing  231 619 -30 271 273 
Mining and quarrying  4,808  7,101  4,545  11,058  6,878  
Mining and quarrying of fuel and energy materials  4,938  6,535  6,957  10,337  7,192  
Other mining  -131 566 -2,412  721 -314 
Manufactur ing 6,385  16,494  1,173  4,561  7,153  
of which:       
Coke and refined petroleum products  1,425  20,707  -1,491  395 5,259  
Chemicals and chemical products  1,764  1,147  1,500  -110 1,075  
Manufacture of motor vehicles, trailers and semi -
trailers and other transp ort equipment  800 871 -367 738 510 
Electricity, gas, steam and air conditioning supply  1,869  1,768  1,682  -1,885  858 
Water supply; sewerage, waste management and 
remediation activities  17 26 13 -20 9 
Construction  3,928  2,895  2,718  -1,055  2,121  
Services  32,940  39,473  11,493  -8,742  18,791  
of which:       
Wholesale an d retail trade; repair of motor 
vehicles and motorcycles  13,241  20,542  3,240  4,054  10,269  
Information and communication  -2,182  -1,292  -2,361  -6,477  -3,078  
Financial and insurance activities  14,983  14,456  7,842  -2,723  8,639  
Real estate activities  1,984  1,728  -830 344 806 
Other  411 843 436 650 585 
a Simple average.  
Source:  WTO Secretariat, based on data from the Central Bank of the Russian Federation. Viewed at: 
http://www.cbr.ru/Eng/statistics/  (dataset accessed in June 2016).  
1.4 Outlook  
1.29.   According to the IMF, there are signs of economic stabilization in the Russian Federation; it 
expects GDP growth to contract by 1. 2% in 2016 (against -3.7% in 2015), mainly due to the 
headwinds from lower oil prices. For 2017, the IMF predicts that the Russian economy will grow 
1%29, while t he CBR estimates 1.3%  growth .30 Structural bottlenecks and adverse population 
                                                
26 World Economic Forum online information. Viewed at:  
http://r eports.weforum.org/global -competitiveness -report -2015-2016/economies/#economy=RUS .  
27 Presidential Decree No. 683 of 31 December 2015 "About the strategy of homeland security of the 
Russian Federation" also addresses the challenges relating to corruption and property right protection.  
28 World Bank online information. Viewed at:  
http://www.doingbusiness.org/data/exploreeconomies/russia .  
29 IMF (2016a).  WT/TPR/S/345 • Russian Federation  
 
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  dynamics are affecting potential growth , hence the need to accelerate economic reforms. The 
Russian authorities acknowledge this and aim at enhancing competition in goods and services 
markets, improving property rights, and revamping transport infrastructure to improve the 
business climate and boost investment. They also see pension reforms as important to increase 
the labour force.31 
1.30.   The Russian authorities are implementing a fiscal adjustment programme based on the 
assumption that oil prices are likely to remain below US$50 per barrel in the me dium term. They 
envisage a fiscal deficit of 3% of GDP if the oil prices stay at US$50 per barrel in 2016, or a higher 
deficit if the oil prices are below this level. In the medium term, the aim is to achieve a balanced 
budget, which would require limiting  spending starting from 2016.  The IMF calls for re -establishing 
the three -year fiscal framework around a revised oil price rule to help reduce policy uncertainty 
and support the adjustment. In this regard, t he Russian authorities and the IMF are currently 
discussing possible amendments to the fiscal rule, such as including future oil prices in the 
calculation of the oil -price benchmark, in order to generate more savings and safeguard 
intergenerational equity of its abundant natural resource wealth.32 
1.31.   Accordi ng to  the IMF, fiscal consolidation measures should also protect needed public 
investment, other productive spending and the social safety net, while the pace of monetary 
easing should be balanced against external risks and the need for the CBR to build cr edibility 
under the inflation targeting regime adopted in 2015.33 Indeed, t he CBR aims to reduce inflation to 
4% by end -2017 (6% is expected for 2016, while the IMF's latest forecast is 8.4%34) and keep it 
close to this level in the years to come. The CBR  has indicated that monetary policy decisions in 
the near future will continue to be based on the trade -off between inflation risks and risks for GDP 
growth, while ensuring financial stability.35 
                                                                                                                                                  
30 According to the CBR, there is  greater resilience  of the Russian economy to oil price fluctuations . IMF 
News Report, 10 June 2016.  
31 IMF (2015a).  
32 IMF (2015a).  
33 IMF (2015b).  
34 IMF (2016a).  
35 Central Bank of Russia (2015) . WT/TPR/S/345 • Russian Federation  
 
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  2  TRADE AND INVESTMENT  REGIME  
2.1  General Framework  
2.1.  According to its Constitution adopted on 12 December 1993, t he Russian Federation is a 
federal republic, comprising 85 "subjects"1, with the powers of the State divided among the 
executive, legislative and judicial branches.  Executive power, exercis ed by the Government, 
ensures the implementation of a single trade, financial, credit and monetary policy, including on 
foreign policy and measures required to ensure the rule of law. The President of the Russian 
Federation is the head of state and the Prime Minister is the head of government.   
2.2.  The President  of the Russian Federation is elected by popular vote for a six -year term 
(eligible for a second, but not a third, consecutive term) , has the right to reject a federal law 
before its signing2, appoints the Prime Minister with t he consent of the State Duma of the Federal 
Assembly and, on recommendation of the Prime Minister, also appoints Deputy Prime Ministers 
and Federal Ministers. The President of the Russian Federation also determines the guidelines for 
domestic and foreign p olicies of the State. The President has the right to suspend the operation of 
normative legal acts of the bodies of executive power of the "subjects" of the Russian Federation if 
these do not comply with the Russian Constitution, federal laws, or internati onal commitments of 
the Russian Federation, until the matter is resolved by the relevant court.3 
2.3.  The Federal Assembly (the parliament) constitutes the legislative and representative 
authority of the Russian Federation. It consists of two chambers : the 450 -member State Duma, 
elected for a term of five years; and the 178 -member Federation Council, which includes  two 
representatives from each of the 85 "subjects"  (one from the legislative and one from the 
executive powers), and eight members appointed directly  by the President of the Russian 
Federation. Both chambers are involved, inter alia, in the adoption of federal laws on the federal 
budget, federal taxes and duties; financial, currency, credit, customs regulation and monetary 
issues; and ratification and denunciation of international treaties and agreements of the Russian 
Federation. The legislative has the power of impeachment of the President of the Russian 
Federation.  
2.4.  The judicial power consists of the Constitutional Court, the Supreme Court, federal courts of 
general jurisdiction, federal arbitration courts, constitutional (charter) courts of the subjects of the 
Russian Federation and justices of peace . The Constitutional Court 's main functions are examining 
the laws for consistency with the Constitutio n. The Supreme Court is the supreme judicial body for 
civil, criminal, and administrative cases, as well as other cases under the jurisdiction of common 
and arbitration courts. It carries out judicial supervision and provides explanations on matters 
relating to procedural law.4 The Office of the Public Prosecutor is a single, federal system of 
authorities responsible for ensuring overall observance of the Constitution and all legal acts 
enacted by federal and regional governments.  
2.5.  The right of legislative initiative with regard to domestic legislation is vested with the 
President of the Russian Federation, the Members of the Federation Council of the Federal 
Assembly, the Deputies of the State Duma of the Federal Assembly, the Government, and the 
legislativ e bodies of the "subjects" of the Russian Federation. The right of legislative initiative is 
also vested, in matters under their competence, with the Constitutional Court and the Supreme 
Court of the Russian Federation.  
                                                
1 Under Article 5(1) of the Constitution, the term "subjects" of the Russian Federation includes republics,  
regions, oblasts, cities of federal importance, autonomous regions and autonomous areas. Article 65 of the 
Constitution contains the exhaustive list of "subjects" of the Russian Federation. In this report, the terms 
"subjects" and regions will be used interchangeably.  
2 Article 107 (3) of the Constitution . 
3 This authority relates only to the bodies of executive power of the subjects of the Russian Federation 
and not to bodies of executive power of the Federal Go vernment. WTO document WT/ACC/SPEC/RUS/25/ 
Rev.6, 9 November 2011.  
4 Until mid -2014, arbitration courts, specialized in commercial cases, were under the Higher Arbitration 
Court. At the end of June 2014, the Higher Arbitration Court was eliminated and sinc e then the arbitration 
courts answer to the Supreme Arbitration Court.  WT/TPR/S/345 • Russian Federation  
 
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  2.2  Trade Policy Formulation  
2.6.  The Ministr y of Economic Development (MED), the Ministry of Foreign Affairs (MFA), and the 
Ministry of Industry and Trade (MIT) are responsible for foreign trade. The MED, the MFA and MIT 
cooperate with other ministries and trade -related agencies, notably the Ministr y of Agriculture, 
Ministry of Energy, Ministry of Finance, Ministry of Transport, and the Central Bank of Russia 
(CBR).  
2.7.  The MED plays the key role in terms of public policy development and legal regulation in the 
spheres of foreign economic and trade activ ity. It is responsible for trade policy formulation on 
tariff issues, coordination of federal executive body activities in the sphere of preferential trade 
agreements negotiations, as well as negotiation of international treaties on reciprocal promotion 
and protection of investments. The MED is also responsible for ensuring favourable conditions for 
business entities abroad; identifying and eliminating restrictions, prohibitions and discriminatory 
measures against Russian exporters; formulating and implemen ting the investment policy; and for 
coordination with the WTO and the Eurasian Economic Commission  (EEC) . 
2.8.  The MIT is responsible for: drafting and implementing government policies and legal 
regulations in the industrial sector; energy conservation and impr oving energy efficiency;  
developing aviation technology; technical regulation and measurement uniformity; science and 
technology in the interests of state defence and security; foreign and domestic trade; public 
catering and consumer services; and folk han dicrafts.5 In terms of foreign trade, the MIT deals 
with non -tariff regulation, in particular implementation of export and import licensing for a number 
of goods, as well as control over the export and import of chemicals, microorganisms and other 
biologic al agents and toxins; and of scientific and technical equipment, information and services 
that can be used in the production of chemical and biological weapons.6 The MIT also supports 
industrial exports and access to goods and services markets.  
2.9.  The MFA is responsible for drafting and implementing government policy and legal regulation 
in the field of foreign relations of the Russian Federation. The MFA participates in formulating and 
implementing government measures aimed at expanding trade, and economic an d financial ties. It 
also supports Russian participants engaged in external trade by diplomatic and international legal 
means, and protects their lawful interests abroad.  
2.10.   On 13 May 2015, an Inter -Ministerial Working Group was established with the purpose o f 
overseeing the preparation of the first Trade Policy Review of the Russian Federation. It is led by 
the First Deputy Minister of the MED and has members from 16 other Ministries and trade -related 
agencies.  
2.11.   The MED, MFA and MIT hold consultations, on an ad hoc  basis, with the private sector, the 
academic community and civil society regarding trade policy formulation and negotiation of 
regional trade agreements (RTAs).7 An information  analysis centre for  foreign trade activity has 
been established  to achiev e closer cooperation with the business community .8 In addition, when 
evaluating trade policies , the MED, MFA and MIT work closely with the Russian Union of 
Industrialists and Entrepreneurs (the RSPP), the Chamber of Commerce and Industry of the 
Russian Fed eration (CCI of Russia), Opora Russia9, Delovaya Rossiya10 and the Centre of Expertise 
on WTO -Related Matters.  Moreover, draft regulatory legal acts are subject to a regulation impact 
assessment procedure, and become publicly available within a reasonable t ime period prior to  
adoption to allow for comments.  
                                                
5 Government Resolution No. 438 of 5 June 2008 "On the Russian Federation Ministry of Industry and 
Trade" lists the MIT's functions in relation to the implementation of foreign trade re gulations.  
6 The MIT also deals with goods and technologies that can be used to create weapons of mass 
destruction and their means of delivery, and other types of weapons and military equipment in accordance with 
the approved lists of controlled goods and technologies.   
7 To collect opinions on current  policies, the ME D, MFA and MIT  carry out meetings, seminars and round 
tables.  Business and producer associations are regularly consulted regarding Russia' s trade policies  and 
responses to stakeholders ' reques ts are prepared  on a regular basis.  
8 Its key duties include colle cting and analyzing information regarding  trade barriers , and 
comprehensive ly examin ing problems affecting  foreign trade and preparing recommendations to address them.  
9 Opora Russia is a no n-governmental organization for small and medium -sized businesses.  
10 Delovaya Rossia is a national business forum for entrepreneurs engaged in various economic 
activities.  WT/TPR/S/345 • Russian Federation  
 
- 27 - 
 
  2.12.   With the entry into force of the Treaty on the Establishment of the Eurasian Economic Union 
(EAEU) on 1 January 2015, a number of competences in the trade and economic spheres were 
divided between the sup ranational regulatory bodies of the EAEU (e.g. the EEC) and the national 
executive institutions of the EAEU member States . As a result, trade policy formulation in the 
Russian Federation is implemented through both national and EAEU institutions and legisl ation 
(Section 2.4.2) . 
2.13.   The hierarchy of legal instruments in the Russian Federation is as follows, from highest to 
lowest: (a) the Constitution; (b) federal constitutional laws; (c) federal laws; (d) decrees and 
resolutions of the President of the Russian Federation and resolutions and orders of the 
Government of the Russian Federation; and (e) acts of federal executive authorities.11 All legal 
instruments are published in official sources, notably the official gazette, Rossiyskaya Gazeta . In 
the event of di screpancies between national and international legislation, the latter prevails.  
Table  2.1 lists some of the key foreign trade -related laws of the Russian Federation.  
Table 2.1 Some trade -related legislation  
Subject  Laws and regulations  
Customs  Customs Code of the EAEU Customs Union  
Law No.  311-FZ "Customs Regulation", 27 November 2010  
Treaty on the Establishment of the EAEU, 29 May 2014  
Competition  Law No.  135-FZ "Protection of Competition", 26 July 2006 ( as amended)  
Government 
procurement  Law No.  44-FZ "Contract System in State and Municipal Procurement of Goods, Works and 
Services", 5 April 2013 (as amended)  
Law No.  223-FZ, "Purchases of Goods, Works and Services by Certain Types of Legal Entities", 
18 July 2011  
Law No.  275-FZ, "State Defence Order" , 29 December 2012  
Investment  Law No.  160-FZ "On Foreign Investment in the Russian Federation", 9 July 1999  
Law No.  39-FZ "On Investment Activity in the Russian Federation in the Form of Capital 
Investment",  25 February 1999  
Law No.  57-FZ "Order of Investing by Foreign Persons in Companies Having Strategic 
Importance for Ensuring the Defence of the Country and the Security of the State", 
29 April 2008 
Law of the RSFSR No. 1488 -1 "On Investment Activity in the  RSFSR ", 26 June 1991  
Law No.  224-FZ "Public -Private Partnership and Municipal -Private Partnership and the 
Introduction of Amendments to Certain Legislative Acts of the Russian Federation, 13 July 2015  
Law No.  115-FZ "On Concession Agreements ", 21 July 200 5 
Law No.  376-FZ "Taxation and Reporting Requirements for Controlled Companies", 
24 November 2014  
IPRs  Law No.  230-FZ "Civil Code of the Russian Federation", 18 December 2006 (part IV, as 
amended)  
Law No.  364-FZ "Introduction of Amendments into the Federa l Law on Information, on 
Information Technology, and on Protecting Information and into the Civil Procedure Code",  
24 November 2014  
Law No.  187-FZ "Amending Certain Legislative Acts on Issues of Protecting Intellectual 
Property Rights in Information -Telecommunication Networks", 2 July 2013  
Law No.  284-FZ "Transfer of Rights on Unified Technologies", 25  December 2008 (as amended)  
Law No.  98-FZ "On Trade Secrets ", 29 July 2004 (with amendments and additions)  
Law No.  316-FZ "On Patent Attorneys ", 30 December 2008 
Privatization  Law No.  178-FZ "Privatization of State and Municipal Property", 21 December 2001 (as 
amended)  
Presidential Decree No. 2284 "On State Programme of Privatization of State and Municipal 
Enterprises of the Russian Federation ", 24 December 1993 (as amended on 12 May 2016)  
State -owned 
enterprises  Law No.  230-FZ "Civil Code of the Russian Federation", 18 December 2006  
Law No.  208-FZ of 26 December 1995 "On  Joint-Stock Companies" (last amended on 29 June 
2015)  
Law No.  161-FZ of 14 November 200 2 "On State and Municipal Unitary Enterprises" (last 
amended on 13  July 2015)  
Taxation  "Tax Code of the Russian Federation"  
Part One – Law No.  146-FZ, 31 July 1998 (last amended on 5 April 2016)  
Part Two – Law No.  117-FZ, 5 August 2000 (last amended on 5 April 2016)  
TBT Treaty on the Establishment of the EAEU (Appendix 9), 29 May 2014  
Law No.  184-FZ "On Technical Regulations", 27 December 2002 (last amended on 
28 November 2015)  
Trade remedies  Treaty of the EAEU (Articles 48 -50; Annex 8; Protocol on Appli cation of Safeguard, 
Anti-Dumping and Countervailing Measures to Third Countries), 29 May 2014  
                                                
11 Normative legal acts of federal  executive authorities (i.e., acts whose binding ef fect extended to all of 
the territory of the Russian Federation) include resolutions, orders, rules, instructions, regulations and 
decisions.  WT/TPR/S/345 • Russian Federation  
 
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  Subject  Laws and regulations  
SPS  Treaty on the Establishment of the EAEU (Chapter XI, Annex 12), 29 May 2014  
Customs Union Commission Decision No. 318 "On Plant Quarantine in the CU, 18  June 2010 
(last amended in October 2014)  
Customs Union Commission Decision No. 317 "On Common Veterinary (Veterinary and 
Sanitary) Requirements", 18 June 2010 (last amended in July 2015)  
Eurasian Economic Commission Decision No. 94 "Common System of Joint In spection of 
Objects and Sampling of Goods Subject to Veterinary Control", 9 October 2014  
Law No.  4979-1 "Veterinary Science", last amended 24 July 2015  
Law No.  206-FZ "Quarantine Plants", last amended 13 July 2015  
Law No.  29-FZ "Quality and Safety of Food Products", 2 Januar y 2000 (last amended on 
13 July 2015 
Law No.  52-FZ "Sanitary and Epidemiological Wellbeing of the Population", 30  March  1999 (last 
amended on 24  July 2015)  
Special 
economic 
zones  Law No.  116-FZ "On Special Economic Zones in the Russian Federation  ", 22 July 2015  
Law No. 16-FZ "On the Special Economic Zone in Kaliningrad Region and on the Alterations to 
Certain Regulatory Acts of the Russian Federation", 10 January 2006  
Law No. 104-FZ "On the Special Economic Zone in Magadan Region", 31 May  1999 
Source:  Information provided by the Russian authorities.  
2.3  Policy Objectives  
2.14.   The main objectives of the Russian Federation's trade policy are: to modernize the 
economy, foster its global competitiveness, and create favourable conditions for its contin uous 
growth and stable development; promote sustainable and innovative economic development; 
increase trade and investment volumes; accelerate global integration processes; and create 
favourable conditions for Russian exporters, importers, producers and co nsumers of goods and 
services.12  
2.15.    A key priority of the Russian Federation is to modernize and diversify its economy away 
from its abundant mineral resources by, inter alia : reducing its energy intensity to GDP ratio by 
40% through energy saving, improving  energy efficiency and eliminating regulatory gaps by 2020; 
maintaining its leadership in the global nuclear technologies market; strengthening the country's 
role in space exploration by promoting space technologies and telecommunication industries13; and 
further investing in information technologies (IT) and software, and in medical technologies and 
pharmaceuticals.14  
2.16.   Other short -term priorities include: expanding the number of successful enterprises in 
manufacturing and agriculture, including small and med ium-sized enterprises; the technological 
renewal of production facilities; supporting construction and the automobile, light, and railway 
machinery industries; social support programmes for low -income citizens; balancing the federal 
budget which would allo w for macroeconomic stability and financial independence; and improving 
the business climate and public -private dialogue.15 
2.4  Trade Agreements and Arrangements  
2.4.1   WTO  
2.17.   The Russian Federation applied for accession to the General Agreement on Tariffs and Trade 
(GATT 1947) in June 1993.16 Following the conclusion of the Uruguay Round, it applied to accede 
to the WTO on 31 January 1995. The Eighth WTO Ministerial Conference formally approved the 
Accession Package of the Russian Federation on 16 December 2011. On 22 Aug ust 2012, the WTO 
welcomed the Russian Federation as its 156th Member.17 To foster its participation in the 
                                                
12 Treaty on the Establishment of the EAEU, 29 May 2014;  Law No.  164-FZ of 8 December 2003  "On the 
Fundamentals of the State Regulation of Foreign Trade Activity  in the Russian Federation"; and Law No.  160-FZ 
of 9 July 1999 " On Foreign Invest ment in the Russian Federation".  
13 The Russian Federation is a world leader in the number of orbital launches.  
14 The Foreign Inve stment Advisory Council online information. Viewed at: https://www.fiac.ru.  
15 Official Internet Resources of the President of Russia online information. Viewed at: 
https://www.fiac.r u. 
16 See GATT document L/7243 , 14 June 1993 . The Russian Federation had been an observer to GATT 
1947 since January 1992 when the Russian Federation assumed  the former Soviet Union's  observer status.  
17 On 16 December 2011, h owever, the United States and the Russian Federation each invoked 
non-application of the WTO Agreement with respect to the other . See WTO documents WT/L/837 and WT/TPR/S/345 • Russian Federation  
 
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  multilateral trading system, a separate Permanent Mission of the Russian Federation to the WTO 
was established on 10 December 2013.18 This is the firs t TPR of the Russian Federation since its 
accession to the WTO.  
2.18.   Since requesting accession to the GATT and afterwards to the WTO, the Russian Federation 
has undertaken a process of reform of its economy, progressively adopting laws and regulations. 
This pr ocess was primarily aimed at establishing the conditions for a dynamic market economy 
based on a stable and predictable legislative framework capable of sustaining long -term economic 
growth and ensuring improvements in the standards of living and welfare o f the Russian 
population, as well as in the modernization of the production capacity of the Russian Federation, 
and its international competitiveness.  
2.19.   According to the Russian authorities, the Russian Federation grants at least MFN treatment 
to all its tra ding partners.  
2.20.   The Russian Federation is a party to the Information Technology Agreement (ITA) and, 
since 29 May 2013, it also acts as an observer to the plurilateral Government Procurement 
Agreement (GPA). GPA accession negotiations are due to start in t he second half of 2016 
(Section  3.3.5.1). The Russian Federation does not take part in the plurilateral Agreement on 
Trade in Civil Aircraft.  
2.21.   The Russian Federation fully supports the multilateral trading system. It calls for further 
developing the negotia tion function of the WTO. The Russian Federation believes in the elimination 
of imbalances between the rights and obligations of original WTO Members and those of recently 
acceded Members (RAMs) .19 
2.22.   The Russian Federation has made regular notifications to th e WTO (Table 2.2). It had ten 
outstanding notifications at the end of 2015.20 The Russian Federation has also regularly submitted 
tariff data to the WTO Integrated Data Base (IDB).  
Table 2.2 Selected notificat ions under WTO Agreements (as of June 2016)  
Agreement  Requirement/content  Document symbol and date of  latest 
notification  
Agreement on Agriculture  
Articles 10 and 18.2  Table ES:1 – Export subsidies  G/AG/N/RUS/3, 18 March 2014  
G/AG/N/RUS/6, 6 March 2015  
G/AG/N/RUS/ 10, 1 February  2016 
Article 18.2  Table MA:2 – Tariff quotas  G/AG/N/RUS/4, 10 April 2014 
G/AG/N/RUS/8, 27 May 2015  
Article 18.2  Table MA:1 – Administration of tariff 
quotas  G/AG/N/RUS/1, 19 February 2013  
G/AG/N/RUS/2, 5 February 2014  
Article 1 8.2 Table DS:1 – Domestic support and 
appropriate supporting tables  G/AG/N/RUS/5, 23 May 2014 
G/AG/N/RUS/5/Corr.1, 12 December 2014 
G/AG/N/RUS/5/Rev.1, 29 January 2016  
G/AG/N/RUS/9, 27 May 2015  
Article 16.2  Table NF:1 – LDCs and net food -
importing countri es G/AG/N/RUS/7, 27 May 2015  
Agreement on Implementation of Article VI of the GATT 1994 (Anti -Dumping)  
Article 18.5  Laws and regulations relevant 
to the Agreement  G/ADP/N/1/RUS/1, 3 October 2012  
Article 16.4  Semi-annual reports of anti -dumping 
actions (taken within the preceding six 
months)  G/ADP/N/280/RUS, 16 March 2016  
G/ADP/N/272/RUS, 17 September 2015  
G/ADP/N/265/RUS, 20 March 2015  
                                                                                                                                                  
WT/L/838. On 21 December 2012, the United States and the Russian Federation both filed letters with the 
WTO withdrawing their notices of non -application and consenting to have the WTO Agreement apply between 
them. See WTO documents  WT/L/877 and WT/L/878 . 
18 Presidential Decree No. 898 of 10 December 2013 "On Establishing the Permanent Mission of the 
Russian Federation to the WTO".  
19 In the WTO negotiations, the Russian Federation is part of  the RAMs, i.e. Members that joined the 
WTO after 1995, seeking lesser commitments in the negotiations because of the liberalization they undertook 
as part of their membership agreements. WTO onl ine information. Viewed at: 
https://www.wto.org/english/tratop_e/dda_e/negotiating_groups_e.htm . 
20 Regarding outstanding notifications on agriculture, the cut-off date is 22 February  2016. WTO 
document G/L/223/Rev. 23, 6 April 2016 . WT/TPR/S/345 • Russian Federation  
 
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  Agreement  Requirement/content  Document symbol and date of  latest 
notification  
Article 16.4  Ad hoc anti -dumping actions  G/ADP/N/281, 21 January 2016  
G/ADP/N/277, 15 October 2015  
G/ADP/N/275, 31 Aug ust 2015  
Agreement on Implementation of Article  VII of the GATT 1994 (Customs Valuation)  
Article 22  Legislation regarding customs  valuation  G/VAL/N/1/RUS/1, 17 October 2012 
G/VAL/N/1/RUS/2, 28 April 2014 
G/VAL/N/1/RUS/2/Add.1, 3 December 2014 
G/VAL/N/1/R US/3, 13 December 2014 
G/VAL/N/1/RUS/3/Add.1, 3 December 2014  
Decisions A.3 and A.4  Treatment of interest charges in 
customs value of imported goods as 
from 18  July 2004 and valuation of 
carrier bearing software for data 
processing equipment as from 
17 April 2006 G/VAL/N/3/RUS/1, 2 October 2012  
Decision on checklist 
of issues  Checklist of issues  G/VAL/N/2/RUS/1, 2 October 2012  
General Agreement on Trade in Services  
Article III:3  Changes in regulation affecting trade in 
scheduled sectors  S/C/N/816, 28 Ju ly 2015  
Article V:7(a) of GATS  Economic integration agreements and 
their enlargement or modification  WT/REG36 3/N/1 and S/C/N/790, 
5 February  2015 
Article VII:4  Existing or new Article VII:1 recognition 
measures  S/C/N/818, 28 July 2015  
Agreement on Imp ort Licensing Procedures  
Articles 1.4(a) and 
8.2(b)  Rules and measures on import licensing 
and import quotas  G/LIC/N/1/RUS/11, 5 December  2015 
Articles 5.1 -5.4 Notification of licensing procedures or 
changes  G/LIC/N/2/RUS/2, 5 December 2015  
Article 7.3  Replies to questionnaire on import 
licensing procedures  G/LIC/N/3/RUS/2/Rev.1, 2 November 2015  
 
Agreement on Rules of Origin  
Paragraph 4 of Annex  II Preferential rules of origin  G/RO/N/115, 11 April 2014  
Agreement on Safeguards  
Article 12.1(a)  Decisi on to initiate an investigation  G/SG/N/6/RUS/3, 10 October 2012  
G/SG/N/6/RUS/1, 11 September 2012  
G/SG/N/6/RUS/2, 11 September 2012  
Article 12.1(b)  Finding of serious injury or threat 
thereof caused by increased imports  G/SG/N/8/RUS/2, 6 August 2013  
G/SG /N/10/RUS/2, 6 August 2013  
G/SG/N/8/RUS/1/Suppl.4, 
G/SG/N/10/RUS/1/Suppl.3,  
G/SG/N/11/RUS/1/Suppl.5, 24 October 2013  
Article 12.1(c)  
 
 
 
Article 9, footnote 2 and 
Article 12.4  Decision to apply or extend a safeguard 
measure  
 
 
Action against a product origi nating in a 
developing country Member  G/SG/N/6/RUS/4, G/SG/N/8/RUS/3  
G/SG/N/10/RUS/3, G/SG/N/11/RUS/3, 
29 October 2014  
 
G/SG/N/8/RUS/1/Suppl.1, 
G/SG/N/10/RUS/1,  
G/SG/N/11/RUS/1/Suppl.2, 19  June 2013 
Article 12.5  
 
 
 
Article 12.6  Notification of proposed su spension of 
concessions and other obligations 
referred to in Article 8.2  
 
Notification of laws and regulations  G/L/1032, G/SG/N/12/RUS/1, 9 July 2013  
G/L/1032/Corr.1, G/SG/N/12/RUS/1/Corr.1, 
10 July 2013  
 
G/SG/N/1/RUS/1, 3 October 2012  
Agreement on the A pplication of Sanitary and Phytosanitary Measures  
Article 7, Annex B  Changes in SPS measures and 
information on measures applied, 
including emergency measures  G/SPS/N/RUS/124, 20 May 2016  
Paragraph 3 of Annex B  Enquiry points  G/SPS/ENQ/26, 11 March 2011  
Agreement on Subsidies and Countervailing Measures  
Article 25  New and full notification  G/SCM/N/253/RUS, 16 May 2013  
G/SCM/N/253/RUS/Rev.1, 1 May 2014  
Article 25.11  Semi-annual report on subsidies and 
countervailing duty  actions  G/SCM/N/281/RUS, 20 Ma rch 2015  
G/SCM/N/289/RUS, 18 September 2015  
G/SCM/N/274/RUS, 23 June 2014  
 
Article 25.11  Ad hoc subsidies and countervailing 
actions  G/SCM/N/286, 20 March 2015  
Article 32.6  Notification of laws and regulations  G/SCM/N/1/RUS/1, 3 October 2012  WT/TPR/S/345 • Russian Federation  
 
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  Agreement  Requirement/content  Document symbol and date of  latest 
notification  
Agreement o n Technical Barriers to Trade (TBT)  
Article 15.2  Laws and regulations on the 
implementation and  administration of 
the TBT Agreement  G/TBT/GEN/1/Rev.12, 18 February 2013  
Articles 10.1 and 10.3  Enquiry points  G/TBT/ENQ/38/Rev.1, 8 July 2011  
Article 10.6  Notification of technical regulations  G/TBT/N/RUS/72, 25 May 2016  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article 63.2  Laws and regulations  IP/N/1/RUS/1, 16 November 2012  
IP/N/1/RUS/1/Add.1, 10 June 2014  
IP/N/1/RUS/1/Add.2, 10 S eptember 2014  
IP/N/1/RUS/2, 8 June 2015  
IP/N/1/RUS/3, 9 June 2015  
Article 69  Contact points  IP/N/3/RUS/1, 23 October 2012  
Agreement on Trade -Related Investment Measures  
Article 5.1  TRIMs not in conformity with the 
Agreement  G/TRIMS/N/1/RUS/1, 23 January  2013 
G/TRIMS/N/1/RUS/1/Add.1, 
11 February  2013 
Source:  WTO Secretariat.  
2.23.   The Russian Federation has participated in ten trade disputes: four as complainant and six 
as respondent  (Table 2.3) . In addition, it has been involved as a third party in 28 cases, most of 
which are  on contingency trade measure.   
Table 2.3 WTO dispute settlement cases  
Subject  Respondent/  
complainant/  
appellant  Request for 
consultation 
received  Status (as at  
30 June 2016)  WTO  
document  
series 
Russian Federation as respondent  
Russian Federation – Recycling Fee 
on Motor Vehicles  Russian Federation/  
European Union  09/07/2013  Panel established, 
not yet composed  WT/DS462  
Russian Federation – Recycling Fee 
on Motor Vehicles  Russian Federation/  
Japan  24/07/2013  Consultations were 
held WT/DS463  
Russian Federation – Measures on 
the Importation of Live Pigs, Pork 
and Other Pig Products from the 
European Union  Russian Federation/  
European Union  08/04/2014  Final report was 
issued to the 
parties  WT/D S475 
Russia – Anti-Dumping Duties on 
Light Commercial Vehicles from 
Germany and Italy  Russian Federation/  
European Union  21/05/2014  Panel composed  WT/DS479  
Russia – Tariff Treatment of Certain 
Agricultural and Manufacturing 
Products  Russian Federation/  
European Union  31/10/2014  Final report was 
issued to the 
parties  WT/DS485  
Russia – Measures Affecting Railway 
Equipment  Russian Federation/  
Ukraine  21/10/2015  Consultations were 
held WT/DS499  
Russian Federation as complainant  
European Union – Cost Adjust ment 
Methodologies and Certain Anti -
Dumping Measures on Imports from 
Russia  European Union/  
Russian Federation  23/12/2013  Panel established, 
not yet composed  WT/DS474  
European Union – Certain Measures 
Relating to the Energy Sector  European Union and 
Certa in Member 
States/ Russian 
Federation  30/04/2014  Panel composed  WT/DS476  
Ukraine – Anti-Dumping Measures 
on Ammonium Nitrate from  Russia  Ukraine/  
Russian Federation  07/05/2015  Panel established, 
not yet composed  WT/DS493  
European Union – Cost Adjustment 
Methodologies and Certain Anti -
Dumping Measures on Imports from 
Russia (second complaint)  European Union/  
Russian Federation  07/05/2015  In consultations  WT/DS494  
Source:  WTO Secretariat.  
2.4.2   Regional trade agreements  
2.24.   The Russian Federation has ten regional tra de agreements (RTAs) in force, encompassing 
12 partners: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Republic of 
Moldova, Serbia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan (Table 2.4). These RTAs have 
been notified to the WT O, some of which have been reviewed by the Committee on Regional Trade WT/TPR/S/345 • Russian Federation  
 
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  Agreements. The Russian Federation notified the WTO that the Treaty on the Free Trade Area 
between Members of the Commonwealth of Independent States (CIS), signed on 15 April 1994, 
which also includes Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, the Republic of Moldova, 
Tajikistan, and Ukraine, was to be terminated.21 On 1 April 2016, the Russian Federation notified 
the WTO that its bilateral free trade agreements with Armenia, Bela rus, Kazakhstan, the Kyrgyz 
Republic, the Republic of Moldova, Tajikistan, and Ukraine  had become null and void.22 
2.25.   According to the authorities, merchandise trade with RTA partners accounted for 12.2% of 
the Russian Federation's total trade (exports and imp orts) in 2014.  
2.4.2.1   Eurasian Economic Union (EAEU)  
2.26.   On 10 October 2000, the Russian Federation began its move toward closer economic ties 
with Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan by signing the Treaty on the 
Establishment of the Eurasian Economic Community (EAEC).23 The purpose of the EAEC was to 
promote mutual trade and investment and explore the creation of a free trade area and potentially 
a customs union. On 1 January 2010, Belarus, Kazakhstan and the Russian Federation took the 
first s teps towards a customs union by adopting a common external tariff (CET). On 1  July 2010, 
the Customs Code entered into force and Belarus, Kazakhstan and the Russian Federation  
established the Customs Union Commission (CU Commission) as its permanent regula tory body.  
On 1 July 2011, these countries abolished all customs posts on their internal borders, allowing for 
free circulation of most goods among them . 
2.27.   In early 2012, the Eurasian Economic Commission (EEC) replaced the CU Commission as 
the supranational regulatory body responsible for implementing external trade policy and 
regulation for its member States. The next significant step in the evolution of this customs union 
was the entry into force of the Treaty on the Establishment of the Eurasian Economic U nion (EAEU) 
on 1 January 2015, and, as a result, the EAEU became the successor to the EAEC. On 
2 January  2015, Armenia joined the EAEU, while the Kyrgyz Republic became its fifth member on 
12 August 2015. The EAEU is larger than the EAEC in size and in ter ms of substantive scope.24 The 
EAEU not only provides for the free movement of goods, services, capital and labour, but also for 
coordinated and agreed common policy in a number of areas. To a certain extent, the EAEU guides 
the trade policy reform agenda o f the Russian Federation.  
2.28.   The EAEU Treaty expands the competence of the EEC into a number of new policy areas, 
including financial services and agricultural policy. Beyond these areas, the EAEU Treaty commits 
the parties to harmonizing national policies ov er time in the areas of financial regulation, monetary 
policy, macroeconomic policy, competition, transportation and rail policy, labour migration policy, 
and policies regulating their markets for oil and gas.  It also aims to promote harmonization of the 
electricity markets within the EAEU.  
2.29.   When the Russian Federation joined the EAEC, the authority over many aspects of its 
foreign trade regime was transferred to the EAEC, and later to the EAEU. Some of these issues 
include import tariff rates, trade in tran sit, non -tariff measures (e.g. tariff -rate quotas, import 
licensing, and trade remedy procedures), customs policies (customs valuation, customs fees, and 
country of origin determinations), border enforcement of IPRs, establishment and administration of 
special economic and industrial zones, and the development of technical regulations and SPS 
measures. As a result, some commitments taken by the Russian Federation during its WTO 
accession are being implemented through EAEU measures.25 
2.30.   One of the EAEU's main f unctioning principles is the unified trade regime with third 
countries26, a responsibility of the EEC which is carried out by the Council of the Eurasian 
Economic Commission and the Board of the Eurasian Economic Commission. Negotiations on 
issues falling u nder supranational competence, notably  trade in goods, are held by a single 
                                                
21 WTO document WT/REG82/N/3, 7 June 2013.  
22 WTO document WT/REG/GEN/N/8, 1 April 2016.  
23 Uzbekistan 's membership of the EAEC was suspended in 2008.  
24 In 2015, EAEU members had a combined populati on of over 182 million people and their total GDP 
amounted to US$1,582 billion.  
25 WTO document WT/ACC/SPEC/RUS/25/Rev.6, 9 November 2011.  
26 Article 25 of the Treaty on the Establishment of the EAEU.  WT/TPR/S/345 • Russian Federation  
 
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  delegation comprised of representatives of all EAEU members and which is headed by the 
representative of the EEC. Negotiations on issues that do not fall within the competence of t he 
EEC, such as trade in services and investment, are held by the EAEU members exclusively. The 
decision to launch trade negotiations in goods with other countries is made by consensus by the 
Supreme Eurasian Economic Council (SEEC) on the basis of conclus ions presented in the final 
report by the relevant j oint feasibility study group (JFSG).27 
2.31.   In May 2015, the Russian Federation and its EAEU partners signed a comprehensive free 
trade agreement with Viet Nam, which is not yet in force. Joint feasibility stud ies with Egypt, India, 
Iran (Islamic Republic of), and Israel were launched in 2014 -15. In October 2015, the SEEC 
decided to start negotiations with Israel.  
Table 2.4 Russian Federation's RTAs in force, 2016  
Agreement  Description  
1. Azerbaijan -Russian Federation  
Title Free Trade Agreement between the Government of the Russian Federation and 
the Government of the Republic of Azerbaijan  
Parties  Azerbaijan and Russian Federation  
Date of signature/entry into force  30 September 1992/17 February 1993  
End of implementation period  1993 
Selected features  Agreement applies to goods only; customs issues; rules of origin; safeguard 
measures; standards; competition; subsidies and state aid; dispute 
settlement; excep tions, general or for security; export restrictions  
WTO consideration status  Factual presentation not distributed  
WTO document series  WT/REG317  
2. Belarus -Kazakhstan -Russian Federation  
Title Agreement on the Customs Union between the Government of the Republic of 
Belarus, the Government of the Russian Federation and the Government of the 
Republic of Kazakhstan  
Parties  Belarus, Kazakhstan and Russian Federation  
Date of signature/entry into force  20 January 1995/3 December 1997  
End of implementation pe riod  2015 
Selected features  Agreement establishing fundamental principles for the creation of the customs 
union  
WTO consideration status  Factual presentation not distributed  
WTO document series  WT/REG325  
3. CIS  
Title Treaty on a Free Trade Area betwe en members of the Commonwealth of 
Independent States (CIS)  
Parties  Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Republic of Moldova, Russian 
Federation, Tajikistan, and Ukraine  
Date of signature/entry into force  18 October 2011/20 September 2012 for t he Russian Federation  
End of implementation period  2020  
Selected features  Agreement applies to goods only; accession; balance of payments; 
competition; customs -related procedures; dispute settlement; exceptions, 
general or for security; export restricti ons; rules of origin; safeguard measures  
WTO consideration status  Factual presentation completed  
WTO document series  WT/REG352  
4. Common Economic Zone (CEZ)  
Title Agreement on the Establishment of the Common Economic Zone between the 
Government of the  Republic of Belarus, the Government of the Republic of 
Kazakhstan, the Government of the Russian Federation, and the Cabinet of 
Ministers of Ukraine  
Parties  Belarus, Kazakhstan, Ukraine and Russian Federation  
Date of signature/entry into force  19 Septem ber 2003/20 May 2004  
End of implementation period  2004 
Selected features  Aims to establish a customs union (Single Economic Space) through the free 
movement of goods, services, capital and labour; regulation of natural 
monopolies (e.g. rail transport, te lecommunication mains, transportation of 
electricity, oil and gas)  
WTO consideration status  Factual presentation not distributed  
WTO document series  WT/REG254  
5. Eurasian Economic Union (EAEU)  
Title Treaty establishing the Eurasian Economic Union  betwe en the Government of 
Armenia, the Government of the Russian Federation, the Government of the 
Republic of Belarus, the Government of the Republic of Kazakhstan, and the 
Government of the Kyrgyz Republic  
                                                
27 The decision to launch trade negotiations with third c ountries or the corresponding JFSG is preceded 
by consultations between relevant government authorities and the private sector. The MED is in charge of this 
process in the Russian Federation.  WT/TPR/S/345 • Russian Federation  
 
- 34 - 
 
  Agreement  Description  
Parties  Armenia, Belarus, Kazakhstan, Kyrgyz Republi c, and Russian Federation  
Date of signature/entry into force  29 May 2014/1 January 2015 for Belarus, Kazakhstan and Russian Federation; 
2 January 2015 for Armenia, and 12 August 2015 for Kyrgyz Republic  
End of implementation period  Not specified  
Selecte d features  The Treaty provides for the free movement of goods, services, capital and 
labour as well as coordinated, agreed or common policy in different areas  
WTO consideration status  Factual presentation not distributed  
WTO document series  WT/REG358 and  S/C/N/785 (WT/REG363 and S/C/N790 for the accession of 
Armenia)  
6. Georgia -Russian Federation  
Title Free Trade Agreement between the Government of Georgia and the 
Government of the Russian Federation  
Parties  Georgia and Russian Federation  
Date of sig nature/entry into force  3 February 1994/10 May 1994  
End of implementation period  1994 
Selected features  Agreement applies to goods only; customs issues; rules of origin; safeguard 
measures; standards; competition; subsidies and state aid; dispute 
settle ment; exceptions, general or for security; export restrictions  
WTO consideration status  Factual presentation completed  
WTO document series  WT/REG118  
7. Serbia -Russian Federation  
Title Free Trade Agreement between the Government of Serbia and the 
Gover nment of the Russian Federation  
Parties  Russian Federation and Serbia  
Date of signature/entry into force  28 August 2000/3 June 2006  
End of implementation period  2010 
Selected features  Agreement applies to goods only; rules of origin; sanitary and phyt osanitary 
measures; technical regulations; safeguard measures; intellectual property;  
consultations  
WTO consideration status  
WTO document series  Factual presentation not distributed  
WT/REG326  
8. Tajikistan -Russian Federation  
Title Free Trade Agreement between the Government of Tajikistan and the 
Government of the Russian Federation  
Parties  Russian Federation and Tajikistan  
Date of signature/entry into force  10 October 1992/8 April 1993  
End of implementation period  1993 
Selected features  Agreement applies to goods only; customs issues; rules of origin; safeguard 
measures; standards; competition; subsidies and state aid; dispute 
settlement; exceptions, general or for security; export restrictions  
WTO consideration status  Factual presentation not di stributed  
WTO document series  WT/REG321  
9. Turkmenistan -Russian Federation  
Title Free Trade Agreement between the Government of Turkmenistan and the 
Government of the Russian Federation  
Parties  Russian Federation and Turkmenistan  
Date of signature/en try into force  11 November 1992/6 April 1991  
End of implementation period  1993 
Selected features  Agreement applies to goods only; customs issues; rules of origin; safeguard 
measures; standards; competition; subsidies and state aid; dispute 
settlement; ex ceptions, general or for security; export restrictions  
WTO consideration status  Factual presentation not distributed  
WTO document series  WT/REG328  
10. Uzbekistan -Russian Federation  
Title Free Trade Agreement between the Government of the Russian Federa tion and 
the Government of the Republic of Uzbekistan  
Parties  Russian Federation and Uzbekistan  
Date of signature/entry into force  13 November 1992/25 March 1993  
End of implementation period  1993 
Selected features  Agreement applies to goods only; custo ms issues; rules of origin; safeguard 
measures; standards; competition; subsidies and state aid; dispute 
settlement; exceptions, general or for security; export restrictions  
WTO consideration status  Factual presentation not distributed  
WTO document serie s WT/REG327  
Source:  WTO Secretariat.  WT/TPR/S/345 • Russian Federation  
 
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  2.4.3   Other arrangements  
2.32.   The Russian Federation grants Generalized System of Preferences (GSP) treatment to 
103 developing countries and 48 least -developed countries.28  
2.5  Investment Regime  
2.33.    The Ministry of Economic Development  (MED)  is responsible for formulating and 
implementing the investment policy of the Russian Federation. T he Foreign Investment Advisory 
Council (FIAC) aims to improve the investment climate in the Russian Federation. The FIAC, 
chaired by the Prime Minister  and with the participation of numerous international companies and 
banks, provides assistance in resolving specific issues encountered by foreign investors in their 
relations with entities of the Russian Federation. It also provides expert support for the  
Government regarding the regulatory and legal frameworks.29 
2.34.   In 2011, the Russian Direct Investment Fund (RDIF) was established on the initiative of the 
President and Prime Minister of the Russian Federation to act as a catalyst for the promotion of FDI 
inflows in promising and growing sectors of the economy. The RDIF invests in cooperation with 
other major institutional co -investors, sovereign funds and leading companies.  
2.35.   The basic legal provisions relating to the activities of national and foreign investor s include: 
Law No.  160-FZ of 9 July 1999 "On Foreign Investment in the Russian Federation"; Law No.  39-FZ 
of 25 February 1999 "On Investment Activity in the Russian Federation in the Form of Capital 
Investment"; Law No.  57-FZ of 29 April 2008 "Order of Inv esting by Foreign Persons in Companies 
Having Strategic Importance for Ensuring the Defence of the Country and the Security of the 
State"; and Law of the RSFSR N o. 1488-1 of 26 June 1991 "On Investment Activity in the Russian 
Soviet Federative Socialist Re public (RSFSR)".  
2.36.   This legal framework seeks to guarantee equal rights for  foreign and local investors in the 
Russian Federation. Exemptions of a restrictive nature for foreign investors may be applied only to 
the extent that they are necessary for the prot ection of the Russian Constitution, morality, health, 
rights and lawful interests of other persons, and for national defence and state security reasons. 
Exemptions in the form of incentives for foreign investors may be applied with a view to promoting 
the socio-economic development of the Russian Federation.  
2.37.   Foreign investors also have the right to freely use the revenues and profits (obtained from 
the investment made in the Russian Federation) in the territory of the Russian  Federation for any 
purpose, inc luding re -investment, as long as such use does not contradict Russian legislation. A 
foreign investor may acquire stocks and other securities of Russian commercial organizations and 
state securities, in accordance with the respective legislation.  
                                                
28 Afghanistan; Albania; Algeria; Angola; Anguilla; Antigua and B arbuda; Argentina; Aruba; Bahamas; 
Bahrain, Kingdom of; Bangladesh; Barbados; Belize; Benin; Bermuda; Bhutan; Bolivia, Plurinational State of; 
Bosnia and Herzegovina; Botswana; Brazil; Brunei Darussalam; Burkina Faso; Burundi; Cambodia; Cameroon; 
Cabo Verd e; Cayman Islands; Central African Republic; Chad; Chile; China; Colombia; Comoros; Congo; Cook 
Islands; Cost a Rica; Cô te d'Ivoire; Croatia; Cuba; Democratic Republic of the Congo; Djibouti; Dominica; 
Dominican Republic; Ecuador; Egypt; El Salvador; Equato rial Guinea; Eritrea; Ethiopia; Fiji; Gabon; Gambia; 
Ghana; Grenada; Guatemala; Guinea; Guinea -Bissau; Guyana; Haiti; Honduras; Hong Kong, China; India; 
Indonesia; Iran, Isl amic Republic of; Iraq; Jamaica;  Jordan; Kenya; Korea, DPR; Korea, Republic of; Kir ibati; 
Kuwait, the State of; Lao PDR; Lebanon; Lesotho; Liberia; Libyan Arab Jamahiriya; Madagascar; Malawi; 
Malaysia; Maldives; Mali; Marsha ll Islands;  Mauritania; Mauritius; Mexico; Micronesia, Federated States of; 
Mongolia; Montenegro; Montserrat; Moroc co; Mozambique; Myanmar;  Namibia; Nauru; Nepal; Nicaragua; 
Niger; Nigeria; Niue; Oman; Pakistan; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Qatar; 
Rwanda; Saint Helena and Dependencies; Sai nt Kitts and Nevis; Saint Lucia;  Saint Vincent and the 
Grenadines; Samoa; Sao Tome and Principe; Saudi Arabia, Kingdom of; Senegal; Serbia; Seychelles; Sierra 
Leone; Singapore; Solomon Islands; Somalia; South Africa; Sri Lanka; South Sudan; Sudan; Suriname; 
Swaziland; Syrian Arab Republic; Tanzania; Thailand; The Former Yugoslav Republic of Macedonia;  The Timor -
Leste; Togo; Tokelau; Tonga; Trinidad and Tobago; Tunisia; Turkey; Turks and Caicos Islands; Tuvalu; 
Uganda; United Arab Emirates; Uruguay; Vanuatu; Venezuela, Bolivarian Republic of; Viet Nam; Virgin Is lands 
(UK); Yemen; Zambia; and Zimbabwe. UNCTAD online information. Viewed at: 
http://unctad.org/en/PublicationsLibrary/itcdtsbmisc62rev6_en.pdf . 
29 The FIAC was  established in 1994. Its activities are now regulated by Decree No. 1141 of 
9 December  2009 of the Government of the Russian Federation. FIAC online information. Viewed at: 
http://www.fiac.ru . WT/TPR/S/345 • Russian Federation  
 
- 36 - 
 
  2.38.   Law No.  57-FZ of 29 April 2008 "On the Order of Investing by Foreign Persons in Companies 
Having Strategic Importance for Ensuring the Defence of the Country and the Security of the 
State"  (as amended) provides for a special regime for foreign investors wishing to participate in 
certain economic activities  of strategic importance for the Russian Federation.  At present, Article 6 
of Law No. 57 -FZ provides for 45 types of activities having strategic importance for national 
defen ce and state security (the law originall y specified 42) . These 45 strategic activities can be 
divided into the following categories:  
a)  geological exploration of subsoil, and the prospecting and extraction of minerals, 
provided that such natural resources fall under the definition of "subsoil plot s of 
federal importance"30, and activities having an impact on hydro -meteorological and 
geophysical processes;  
b)  defen ce, including activities related to the production and use of weapons and 
military equipment;  
c)  activit ies in the field of the nuclear indust ry, and nuclear and radioactive materials;  
d)  space activit y, aviation safety, and the production and repair of aviation equipment;  
e)  activit y in the field of encryption and cryptography, and security and surveillance 
tools;  
f)  mass media, including TV and radi o broadcasting, and certain types of printing and 
publishing activit ies; 
g)  monopolies, including the activit y of any legal entities holding a dominant position in 
the Russian market, as well as various "natural" monopolies (see Section 3.3.4);  
h)  extraction ( catching) of aquatic biological resources;  
i)  activit y connected with the use of agents of infectious diseases (except production of 
foodstuffs); and  
j)  activit y to ensure transport safety.  
2.39.   If, in the process of geological subsoil exploration , the subsoil use r (a legal entity with 
participation of foreign investors or a foreign investor) discovers a mineral deposit that 
corresponds to a subsoil plot of federal importance, the Government of the Russian Federation 
may decide to refuse to grant user rights on the  subsoil plot to such entity.31 In the case of 
geological exploration of the subsoil with a combined licen ce (for geological study, exploration and 
extraction ), a decision may also be reached to terminate the user rights on the subsoil plot of 
federal impor tance if it threatens national defen ce and state security.  
2.40.   Under Law No. 57 -FZ, completing transactions and other actions that entail the 
establishment of control of a foreign investor or a group of persons over legal entities having 
strategic importance f or national defen ce and state security are allowed if there is a decision on 
preliminary approval of such transactions issued by the Federal Antimonopoly Service (FAS).  
2.41.   In 2008, the Government Commission on Monitoring Foreign Investment was established 
with the purpose of monitoring foreign investment in business entities of strategic importance for 
national defence and state security.  The main responsibility  of the Commission is to grant or deny  
preliminary approval, in accordance with Law No.  57-FZ, for t ransactions entailing the 
establishment of foreign investors ' control over business entities that are of strategic importance 
                                                
30 Foreign investors (excluding companies c ontrolled by a foreign State or international organizations) 
may acquire up to 25% (this ceiling was 10% prior to November 2011) of strategic oil, gas or mining 
companies without prior authorization from the Government Commission, provided that control of foreign 
investors over such Russian entities is not established as a result of such transactions.  
31 Article 2.1 of Law No. 2395-1 of 21 February 1992 (as amended on 13 July 2015) "On Subsoil".  WT/TPR/S/345 • Russian Federation  
 
- 37 - 
 
  for national defen ce and state security, as well as approval for foreign investors to establish 
control over such business entitie s.  
2.42.   During the period 2008-15, the Commission received 391 applications for foreign 
investment, of which 195 were reviewed by the Commission : in 183 cases preliminary approval of 
the transactions was granted  (49 cases with obligations for foreign investors ) and in 12 cases 
preliminary approval of the transactions w as refused; 146 applications were returned to applicants 
due to not requiring prior approval; 43 petitions were withdrawn by the applicant s due to the 
cancellation of the intention to make a propo sed transaction; and 7  applications were still under 
consideration.  
2.43.   Law No.  224-FZ of 13 July 2015 "Public -Private Partnership and Municipal -Private 
Partnership and the Introduction of Amendments to Certain Legislative Acts of the Russian 
Federation" enter ed into force on 1 January 2016. It aims to promote private investment in the 
Russian economy, particularly by financing various infrastructure projects through public -private 
partnership (PPP) agreements, including the following forms of investment: "desi gn and/or 
build/reconstruct -operate -transfer" (BOT/DBOT), "design and/or build/reconstruct -own-
operate -transfer" (BOOT/DBOOT), "design and/or build/reconstruct -own-operate" (BOO/DBOO), 
"design -build/reconstruct -finance -operate" (DBFO/PFI).  
2.44.   Law No.  115 "On concession agreements", adopted on 21 July 2005, governs the relations 
arising in connection with the preparation, conclusion, performance, amendment and termination 
of concession agreements, and provide s guarantees of rights and lawful interests of the pa rties to 
the concession agreement. The main PPP models, the application of which is possible under  the 
framework of Law No.  115, are "build/reconstruct -transfer -operate" (BTO) and "design -
build/reconstruct -finance -operate" (DBFO/PFI).  
2.45.   Foreign investment, t echnology transfer, and innovation are considered by the Russian 
authorities as critical to the economic modernization of the country. In this context, high -tech 
parks, industrial clusters and special economic zones (SEZs) are being promoted through specia l 
tax and infrastructure incentives, available to both local and foreign investors  (Section 3.3.2.2) . 
2.46.   Some investment privileges are also granted in the context of t he Auto Investment 
Programme  (established to  attract investment in the  automotive industry ) and agreements 
concluded under this programme.32 The Russian Federation has confirmed that it will eliminate the 
WTO-inconsistent measures applied under the Auto Investment Programme by 1 July 2018, and 
engage in consultations with interested WTO Members  by no later than 1 July 2016 
(Section  4.4.3.) .33 
2.47.   Foreign investors are eligible to benefit from certain tax, customs, and other privileges. Tax 
privileges, according to Article 150 of the Tax Code of the Russian Federation, comprise exemption 
from taxation o f technology equipment , as well as  parts and spare parts for such equipment, 
imported into the territory of the Russian Federation as a contribution to the assessed capital of 
companies. As regards  customs privileges, products imported to the territory of the Russian 
Federation as a contribution to the assessed capital are free from customs duties on the condition 
that the products are: not excisable; related to the main productive funds; and, imported within 
the period defined by the constituent documents for assessed capital foundation.34 In addition, the 
possibility of granting other customs and tax privileges to foreign investors performing priority 
investment  projects ( amounting to more than Rub 100 million) is also provided.35  
2.48.   Regional investment agenci es, established by regional or municipal authorities, act as 
facilitators in most regions of the Russian Federation.36 The main functions of these agencies are: 
providing a single window service for investors when interacting with government bodies; creatin g 
ad hoc  teams to manage and implement turnkey solutions for particular investment projects; 
                                                
32 WTO document G/TRIMS/N/1/RUS/1, 23 January 2013.  
33 WTO docume nt G/TRIMS/N/1/RUS/1/Add.1, 11 February 2013.  
34 Government Resolution No. 883 of 23 July 1996 "On Import Duty and Value Added Tax Exemptions 
for Goods Imported by Foreign Investors as Contributions to Charter (Pooled) Capital of Enterprises with 
Foreign In vestments".  
35 Law No. 160 -FZ of 9 July 1999 "On Foreign Investments in the Russian Federation".  
36 The supervisory board of the agency is chaired by the senior official of the federal constituent entity.  WT/TPR/S/345 • Russian Federation  
 
- 38 - 
 
  promoting regional investment projects in the Russian Federation and abroad, including 
participation in conferences, forums and exhibitions; facilitating the inter action with, inter alia , 
investment and venture capital funds, banks, foreign public investment agencies, and special 
financial organizations, with the aim of attracting resources to support new investment projects in 
the region; and representing the inter ests of federal constituent entities in PPPs.  
2.49.   The Russian Federation has signed 80 investment promotion and protection agreements 
(IPPAs)37, and has concluded  double taxation agreements (DTAs) with 66 countries.38 In respect of 
investors and their investment s, the IPPAs contain, inter alia , provisions on national treatment and 
MFN treatment with exemptions ; guarantees in case of expropriation and rules for compensation  
of losses ; free transfer of revenues and profits ; and dispute settlement procedures.  
2.50.   The Ru ssian Federation is member of the Multilateral Investment Guarantee Agency (MIGA) 
and a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign 
Arbitral Awards (UNCITRAL).  
2.6  Starting a Business  
2.51.   Russian business legislation pro vides for a wide range of forms of legal entities (local and 
foreign) which can be generally divided into commercial and non -commercial. Under Article 50 (2) 
of the Civil Code, t he former include business partnerships and associations, farmers (peasant) 
enterprises, industrial cooperatives, and state and municipal unitary enterprises ; while non -
commercial entities include foundations and associations, consumer cooperatives, and trade union 
organizations. The most common forms of business legal entities in th e Russian Federation are the 
following: limited liability companies (LLCs) , with minimum capital requirement of Rub 10,000 , and 
joint-stock companies (JSCs) , which are further divided into public joint -stock companies (PJSCs) 
and non -public joint -stock com panies (NPJCs). JSCs are entitled to distribute their shares by public 
subscription or through the stock exchange. The minimum capital requirement for the 
incorporation of PJSC s and NPJSC s is Rub 100,000 and Rub 10,000 , respectively.  
2.52.   The Federal Tax Servic e (FTS) of the Russian Federation is responsible for supervising the 
State Register. It aims to ensure transparency in the registration process and holds  information on 
the establishment, reorganization and liquidation of legal persons and other relevant d ata.39 
Registration documents may be submitted at the FTS ' offices,  or they may  be sent by post with a 
list of enclosures.40 In either  case, a receipt note is sent the next (working) day following the date 
of receipt of the documents by the FTS, to the posta l address indicated by the applicant. The FTS 
ensures the recording and storing of all documents submitted for registration purposes.  
                                                
37 Some of these are with: Albania; Algeria; Angola; A rgentina; Armenia; Austria; Azerbaijan; Bahrain, 
Kingdom of; Belgium and Luxembourg; Bulgaria; Cambodia; Canada; China; Croatia; Cuba; Cyprus; Czech 
Republic; Denmark; Ecuador; Egypt; Equatorial Guinea; Ethiopia; Finland; France; Germany; Greece; 
Guatemala ; Hungary; India; Indonesia; Italy; Japan; Jordan; Kazakhstan; Korea, DPR; Korea, Republic of; 
Kuwait, the State of; Lao PDR; Lebanon; Libya Arab Jamahiriya; Lithuania; The Former Yugoslav Republic of 
Macedonia; Republic of Moldova; Mongolia; Montenegro; N amibia; Netherlands; Nicaragua; Nigeria; Norway; 
Philippines; Poland; Portugal; Qatar; Romania; Serbia; Singapore; Slovakia; Slovenia; South Africa; Spain; 
Sweden; Switzerland; Syrian Arab Republic; Tajikistan; Thailand; Turkey; Turkmenistan; Ukraine; Unit ed Arab 
Emirates; United Kingdom; United States; Uzbekistan; Bolivarian Republic of Venezuela; Viet Nam; Yemen; 
and Zimbabwe .  
38 Algeria; Argentina; Austria; Azerbaijan; Belgium; Brazil; Bulgaria; Canada; Chile; China; Croatia; 
Cyprus; Czech Republic; Denm ark; Estonia; Finland; France; Georgia; Germany; Hungary; Iceland; India; 
Indonesia; Iran; Ireland, Israel; Italy; Japan; Korea, DPR; Korea, Republic of; Kuwait, the State of; Lebanon; 
Lithuania; Luxembourg; Macao, China; Malaysia; Malta; Mauritius; Mexico ; Republic of Moldova; Mongolia; 
Morocco; Netherlands; New Zealand; Norway; Oman; Philippines; Poland; Portugal; Qatar; Saudi Arabia, 
Kingdom of; Serbia; Singapore; Slovakia; Spain; Sri Lanka; Sweden; Switzerland; Tajikistan; Thailand; 
Turkey; Turkmenistan ; United Kingdom; United States; and Viet Nam . UNCTAD online information. Viewed at: 
http://unctad.org/Sections/dite_pcbb/docs/dtt_Russia.PDF . 
39 Article 4 of Law No. 129-FZ. This inf ormation is publicly available, except for documents listed in 
paragraph 2 of Article 6 of Law No. 129-FZ. 
40 The application presented to the registering body require s the notarized signature of an authori zed 
person (the applicant). The date of submission of the documents for State Registration is the date on which  
they are received by the registration body. A receipt note is issued to the applicant on the day the documents 
are received by the registration body.  WT/TPR/S/345 • Russian Federation  
 
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  2.53.   To register, legal persons are required to submit the following documents41: an application 
based on the form established b y the Order  of the FTS42; the decision whereby the legal person 
had been formed, in the form of minutes, an agreement or any other document in compliance with 
the legislation of the Russian Federation; the constitutive documents (ori ginals or notarized 
copies); for foreign legal persons, an extract from the register of the country of origin or other 
equally effective proof of the legal status of the foreign legal entity; and a certificate of payment of 
a state duty of Rub 4,000.  
2.54.   Under  Law No.  129-FZ, registration of a natural person as an individual entrepreneur 
requires the following documents: an application based on the form approved by the Order  of the 
FTS; for citizens of the Russian Federation, a copy of t he identification document of the natural 
person (i.e. passport);  for foreign and stateless persons, a copy of the document established by 
federal law or recognized under an international agreement of the Russian Federation as the 
relevant identification d ocument43; a document confirming the right to reside on a temporary or 
permanent basis in the Russian Federation; and a document confirming the payment of a Rub  800 
registration charge.  
2.55.   Currently , the establishment of a foreign business in the Russian Feder ation may take the 
form of a subsidiary, branch or representative office. A foreign investor applying for registration of 
a subsidiary (LLC or JSC) shall file the documentation to the local office of the FTS together with 
the application for registration. The application for registration shall be filed within 30 days of the 
commencement of the branch's  activities. The registration is carried out by the FTS within 5 days 
of receiving the application.  
2.56.   Foreign companies may operate in the Russian Federation wi thout creating a legal entity , by 
establishing a representative office or a branch. The FTS carries out the accreditation of branches 
and representative offices of foreign enterprises. A certificate on making an entry into the State 
Register is issued by t he FTS upon completion of the accreditation procedure. The accreditation of 
a representative office or branch is carried out within 25 working days of receipt of the application 
by the FTS.44 A state duty of Rub 120,000 shall be paid for the state accredita tion of each 
representative office or a branch.45 Representative offices or branches of foreign enterprises may 
prepare their financial statements and form the ir accounting policy in accordance with the rules 
and regulation s of the home country , provided th at these rules and regulations are not contrary to 
international accounting standards.46 
2.57.   Under Law No.  115-FZ of 25 July 2002 "On the Legal Position of Foreign Citizens in the 
Russian Federation", work permits are issued to highly  qualified specialists for the period of their 
employment contracts , but not exceed ing three years. Specialists on secondment and 
representatives of foreign companies investing in the Russian Federation may receive an ordinary 
business visa for up to five years.47 
2.58.   Certain transaction s (including mergers, acquisitions, establishment of new companies, and 
purchase and sale of shares and assets) are subject to antimonopoly control. Prior approval or 
post-transaction notification of the Federal Antimonopoly Service (FAS) is required if ce rtain 
thresholds are reached in terms of the balance sheet value of the assets or the revenue or market 
share of the companies involved in the transaction. A number of important new rules and 
regulations for businesses have been introduced  into the  antimon opoly legislation over the last few 
years , such as the application of merger control regulations to foreign entities , which  must be 
taken into account by parties intending to enter the Russian market, and measures to reduce the 
Government's presence in the  economy (Section 3. 3.4). 
                                                
41 Listed in Article  12 of Law No.  129-FZ of 8  August 2001 "On State Registration of Juridical Persons 
and Individual Entrepreneurs " (last amended on 31 January 2016).  
42 Order  of the Federal Tax Service No. MMV -7-6/25 of 25 January 2012 . 
43 Identification documents are listed in  Article 10 of Law No. 115 -FZ of 25 July 2002 "On the Legal 
Position of Foreign Citizens in the Russian Federation" ( last amended on 30 December 2015) . 
44 Law No.  160-FZ of 9 July 1999 "On Foreign Investment in the Russian Federation".  
45 Tax Code of the Rus sian Federation , paragraph 5, Article  333.33 . 
46 Commentary to the item of the Accounting Regulation "Accounting Policy of a  Legal Entity" 
(PBU 1/98) . 
47 Law No.  114-FZ of 15 August 1996 "On the Procedure of Leaving and Entering the Russian 
Federation ".  WT/TPR/S/345 • Russian Federation  
 
- 40 - 
 
  2.59.   Foreign exchange transactions are regulated by the Central Bank of Russia (CBR) and the 
Government of the Russian Federation under Law No.  173-FZ of 10 December 2003 "On Currency 
Regulation and Currency Control". A transaction passport is required for export and import 
clearance in order to carry out foreign exchange control between residents and non -residents. A 
transaction passport is required for foreign trade contracts (agreements) or credit agreements 
between residents (exclud ing individuals) and non -residents that stipulates foreign exchange 
operations in the form of settlements and transfers through the accounts of the resident in 
authorized banks and/or through accounts in a non -resident bank. A transaction passport is issue d 
by an authorized bank for each contract (credit agreement) equal or exceeding US$50,000  at the 
official CBR's exchange rate .48 
2.60.   Foreign citizens, persons without citizenship , and foreign legal entities are prohibited from 
owning land plots in Russian borde r areas , in accordance with federal legislation  on the s tate 
border of the Russian Federation,  and in other territories specifically indicated under federal laws.49 
2.61.   The Russian Federation has significantly  improved  its ranking in the World Bank's Doing 
Business Index over the last few years (Section 1.3), partly due to various measures taken under 
the National Business Initiative Program me and other recent regulatory reforms. Moreover, t he 
Institute  of the Entrepreneurs ' Ombudsman of the President of the Russian Federation,  established 
in 2012, aims to solve problems faced by  entrepreneurs  in engaging with government authorities. 
The Ombudsman aims to protect the rights of entrepreneurs both at the federal and regional lev els 
and is present in most regions of the Russian Federation.50 Each Russian federal district also has 
an investment Ombudsman who reports to the national Ombudsman and oversees efforts to 
improve the business climate, including the protection of foreign an d domestic investors.  
                                                
48 Instruction of the Bank of Russia No. 138 -I of 4 June 2012 "On the Procedure for Residents and Non -
Residents Submitting Documents and Information to Authorized Banks, Connected with Carrying Out Currency 
Transactions, on the Procedure for Formalizing Passpo rts of Deals, and on the Procedure for the Authorized 
Banks Recording Currency Transactions and for Control Over Their Performance".  
49 Article 15.3  of the Land Code of the Russian Federation No. 136 -FZ of 25 October 2001.  
50 The Ombudsman 's activity is gove rned by Law No. 78-FZ of 7 May 2013 "On Commissioners for 
Entrepreneurs ' rights in the Russian Federation ". WT/TPR/S/345 • Russian Federation  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures and requirements  
3.1.  According to the Customs Code of the Customs Union (CU Customs Code) of 
25 January  2008, the customs legislation of the CU consists of the Customs Code itself, 
international agreements of the member States of the CU regulating customs legal relationships, 
and decisions of the Commission of the CU taken in accordance with the Customs Code and 
international agreements of the member States. The Customs Code also states that customs 
regulations may be provided through domestic legislation of the members of the CU for parts not 
regulated by the CU Customs Code and to the extent that they do not conflict with the Customs 
Code.1 As a member of the EAEU, the Russian Federation applies the CU Customs Code and 
decisions of the EAEU Council and the Eurasian Economic Commission (EEC), as well as federal 
laws and regulations.  
3.2.  The principal customs legislation in the Russian Federation is Law No.  311-FZ of 
27 November 2010 "On Customs Regulation in the Russian Federation" which, at end -June 2016, 
had been amended 23 times, most recently on 13 July 2015. Law No. 311 -FZ provides specific 
rules for the application of customs procedures in the Russian Federation to the extent that they 
are not already covered in the CU Customs Code.  
3.3.  The Federal Customs Service (FCS) is the competent authority for customs administration in 
the Russian Federation. The FCS's responsibilities include: policy impleme ntation; implementation 
of legal regulations (including the EAEU Decisions and the CU before that); control and supervision 
of the customs system; and the functions of a currency control agent. The FCS is under the 
jurisdiction of the Ministry of Finance . 
3.4.  Article 70 of the CU Customs Code set s out the payments that may be collected by the FCS, 
including, where applicable: import dut ies; export dut ies; value -added tax and excise duties on 
imports;  customs fees ; and safeguard, anti -dumping , and countervailing  duties. Article 186 of the 
CU Customs Code specifies who is responsible for declaration s of goods and payment s of duties 
and charges and provides for deferred payments and payments in instalments. Under Article 86 of 
the CU Customs Code, a declarant has t he right to use a variety of securit ies to cover customs 
payments including : (i) a personal guarantee, including a surety bond; (ii) payment in cash a t the 
desk of the cashier or transfer of funds to the account of the customs office at the Federal 
Treasur y; (iii) a bank guarantee; or (iv) a mortgage of goods or other property.  
3.5.  According to the authorities, consignments of goods should be registered on entering the 
territory of the Russian Federation while customs clearance is carried out at fixed customs p osts 
within the territory. There are no specific registration requirements for importers or exporters, 
although licences are required for imports and/or exports of controlled goods. It is not compulsory 
to use customs brokers. A customs broker must be a re sident of the Russian Federation and must 
be registered with the FCS.  
3.6.  The Russian Federation's Presidential Decree No. 1 and Government Resolution No. 1 of 
January 2016 ban all international transit of cargo by road and rail from Ukraine to Kazakhstan 
through the territory of the Russian Federation.  
3.7.  According to the authorities, under Article 196 of the Customs Code, goods are normally 
released by the end of the business day following the import declaration. In a small number of 
cases (less than 1% of decl arations) the FCS may refuse to register the customs declaration, 
which effectively means the goods are not released (e.g. for non -payment of duties).  In cases 
where a preliminary declaration has been made, the importer has 30 days in which to present the 
goods and make a final declaration. Under Article 193 of the CU Customs Code, the customs 
authorities may refuse to release goods if they are not presented to the customs authority that 
registered the customs declaration, or to another customs authority sp ecified by the customs 
                                                
1 The Customs Code of the Customs Union is attached to WTO document G/VAL/N/1/RUS/2/Add.1, 
3 December 2014.  WT/TPR/S/345 • Russian Federation  
 
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  legislation of the CU member, within 30 calendar days of the day followin g the preliminary 
declaration.  
3.8.  Articles 38 -41 of the CU Customs Code and Articles 85 -96 of Law No. 311 -FZ provide for 
simplified customs formalities for operat ors who meet the specific conditions including:  
 provision of a guarantee for the payment of customs duties and taxes;  
 performance of foreign economic activities for at least one year;  
 absence of tax arrears or unfulfilled obligation to pay customs fees, in terest, and 
penalties;  
 absence of repeated (two or more) customs administrative offences during the 
previous year;  
 absence of a record of conviction for economic criminal offences by the chief officers 
and employees conducting customs operations under the  simplified procedures; and  
 use of an accounting system that enables the customs authorities to check the 
accuracy of the information presented for customs clearance.  
3.9.  The CU Customs Code established the right o f appeal with regard to customs issues  and Law 
No. 311 -FZ contains detailed provisions relating to the right. Appeals may be made to the customs 
office where the decision was made, to the superior customs administration centre, and then to 
the courts. Data on the number of appeals made were not availa ble.  
3.10.   The Russian Federation is a member of the World Customs Organization (WCO), the 
International Convention on the Harmonized Commodity Description and Coding System, the 
Customs Cooperation Council, the ATA Carnet, the Nairobi and Istanbul Conventions,  and the 
International Convention on the Simplification and Harmonization of Customs Procedure (Revised 
Kyoto Convention, 1999).  
3.11.   At end -March 2016, the Eurasian Economic Commission (EEC) was working on developing 
the basis for a single -window mechanism in cluding streamlining and harmonizing customs 
formalities. According to the authorities, the EEC has prepared an action plan for the 
implementation of a single -window system in a number of stages, including: electronic 
declarations (which have been introduc ed); electronic interface among the competent authorities; 
single -window systems for air and maritime ports (which are to be integrated); and, at the EAEU 
level, an integrated single -window system.  
3.12.   In 2015, the Russian Federation was ranked 170th out of 1 89 economies in terms of trading 
across borders with 10 documents, and 96 hours needed for importing and a cost of US$1,125. 
The ranking for trading across borders is based on exporting iron and steel (HS 72) to Italy, and 
importing parts and accessories o f motor vehicles (HS 8708) from Germany.2 Other indicators rank 
the Russian Federation differently: the World Bank Logistics Performance Index for 2014 ranked 
the Russian Federation as 90th out of 160 economies for logistics generally and 133rd for customs  
specifically3; the World Economic Forum's Burden of Customs Procedures ranks the Russian 
Federation as 88th out of 140 economies.4  
3.13.   While the authorities dispute the World Bank ranking for technical and methodological 
reasons, the FCS is taking steps to i mprove customs operations through an action plan, which was 
approved under FCS Order No. 1125 -r of 29 June 2012. The action plan sets out a series of 
measures to simplify customs procedures and improve efficiency for both imports and exports and 
the FCS ha s issued a number of orders to support these objectives and has implemented several 
initiatives, including:  
 Since 1 January 2014, electronic declarations have been mandatory and since then 
practically all declarations have been submitted on -line; 
                                                
2 World Bank (2015).  
3 World Bank (2014).  
4 World Economic Forum (2015), p. 307.  WT/TPR/S/345 • Russian Federation  
 
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   Compulsor y prior notification for road shipments was introduced on 1 October 2014 and 
for rail shipments on 17 September 2013 and is to be introduced for air shipments 
during 2016. In addition, any interested entity may provide a preliminary notification 
for mariti me shipments;  
 Customs payments may now be made electronically at point of entry or on -line on the 
FCS website;  
 A risk management system has been introduced to identify importers with a low risk of 
violation of requirements, which has classified 2,000 trade rs as "low -risk" representing 
44% of goods declarations and 55% of the value of customs duties. The risk 
management system includes agent -based criteria which include their type of economic 
activities and their track records, and goods -based criteria which  include the types of 
goods. The system works at regional and federal level and is updated regularly;  
 The FCS has been shifting the emphasis of control from point of entry to post release 
for those in the low -risk category; and  
 While the number of document s required for imports and exports depends on the 
consignment, they have been reduced and the average number required has declined 
from an average of 10 for import and 7 for export in 2013 to 6 for import and 4 for 
export in December 2015.  
3.14.   According to the  authorities, as a result of these trade facilitation measures, the average 
time for importing a consignment of goods has been reduced fro m 48 hours in 2013 to 1 hour 
38 minutes in 2015 Q3, and for export from 4 hours in 2013 to 50 minutes in 2015 Q3.  
3.15.   On 22 April 2016, the Russian Federation deposited the instrument of acceptance of the 
Trade Facilitation Agreement.  
3.1.2   Customs valuation  
3.16.   The dutiable value of goods is the c.i.f. value of imports. The legal framework for customs 
valuation includes:  
  Chapter 8 o f the CU Customs Code;  
  the Agreement on Assessment  of the Customs Value of Goods Crossing the Customs 
Border of the Customs Union of 25 January 2008 ;  
  the procedures and rules in Customs Union Commission Decision No. 376 "O n the 
Procedures for Declarati on, Control and Adjustment of the Customs Value of Goods " of 
20 September 2011;  
  decisions of the Board of the Eurasian Economic Commission (Table 3.1);  
  Government Resolution No. 500 of 13 August 2006 and No. 191 of 6 March 2012; and  
  Section III of Law N o. 5003-1 of 21 May 1993 (as amended), and Law No.  311-FZ of 
27 November 2010.5  
3.17.   According to the authorities, the system of valuation is based on the principles and 
provisions of GATT 1994.6 In order of priority, the methods used are: Method 1  - transacti on value  
(which, according to the authorities, is used in 85% of cases) ; Method 2 - transaction value of 
identical goods; Method 3 - transaction value of similar goods; Method 4 - deductive value; 
Method 5  - computed value; and Method 6  - backup method. Specific decisions on most of these 
methods are set out in Table 3.1. The authorities stated that Method 6 is based on the flexible use 
of methods 1 to 5. For example, by using the transaction value of identical or similar goods from a 
period of more than 90  days before the importation of the goods being valued. In such cases, the 
customs authority is required to indicate in writing the data source being used and the calculations 
based on these data.  
                                                
5 WTO document s G/VAL/N/1/RUS/1, 17 December 2012; G/VAL/N/1/RUS/2, 28 April 2014; 
G/VAL/N/1/RUS/3, 13 October 2014; G/VAL/N/1/RUS/3/Add.1 3 December 2014; G/VAL/N/1/RUS/2/Add.1, 
3 December 2014,; and G/VAL/N/1/RUS/1 /Add.1, 2 November 2015.  
6 Byshovets V. (2015).  WT/TPR/S/345 • Russian Federation  
 
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  Table 3.1 Decisions of the Board of the EEC on application of the methods of 
determination of the customs value of goods  
Method  EEC Board Decisions  
Method 1  The decision of Board of the EEC No. 279 (2 December 2012) "On modification of rules of application 
of the met hod of determination of customs value of goods at the cost of the transaction with imported 
goods"  
The decision of Board of the EEC No. 283 (20 December 2013) "On application of the method of 
determination of customs value of goods at the cost of the tran saction with goods"  
The decision of Board of the EEC No. 53 (26 March 2013) "On modification of rules of application of 
the method of determination of customs value of goods at the cost of the transaction with imported 
goods and cancellation of the Recomme ndation of Board of the EEC of 20 June 2012 No. 1"  
Methods 2 and 3  The decision of Board of the EEC No. 202 (30 October 2012) "On application of methods of 
determination of customs value of goods at the cost of the transaction with identical goods (method  2) 
and at the homogeneous methods (method 3)"  
Method 4  The decision of Board of the EEC No. 214 (13 November 2012) "On application of the method of 
subtraction (method 4) in case of determination of customs value of the goods"  
Method 5  The decision of B oard of the EEC No. 273 (12 December 2012) "On application of the method of 
addition (method 5) at determination of customs value of goods"  
Fees The decision of Board of the EEC No. 112 (15 July 2014) "On approval of the addition of fees to 
intermediaries  (brokers fees) to the price actually paid or payable for the imported goods"  
Documents  The decision of Board of the EEC No. 113 (15 July 2014) "On the Regulation on the use of the 
application of methods for determining the customs value of documents corr esponding to generally 
acceptable principles"  
Source:  WTO Secretariat , based on information provided by the Russian authorities . 
3.18.   According to Decision No. 376, the customs value of goods is verified by the customs 
authorities. Based on the results of the assessment of the declared value of goods in a 
consignment, the customs authorities may decide to accept the declared value or to adjust it.  
3.19.   In cases where the FCS assessment indicates that the declared value may be inaccurate or 
cannot be supported, addi tional documentation may be requested up to 60 days after the initial 
submission of documents. After the requested documents are submitted, the customs authorities 
have 30 days to consider them and decide whether to accept the initial declaration of value or to 
adjust it.7 
3.20.   Article 10 of the CU Customs Code deals with transparency and stipulates that all acts of 
customs legislation are to be published in an official publication and via television, radio and other 
mass media. The Eurasian Economic Commission is required to provide free access to CU 
legislation in official publications and on the official website.  
3.1.3   Rules of origin  
3.21.   The country of origin is used to determine the application of tariff and non -tariff measures, 
and trade statistics.  The legal basis f or determining the country of origin is specified in :  
  Chapter 7 of the CU Customs Code, which provides the basic principles of the origin being 
the country in which the goods were wholly produced or were sufficiently processed and 
states that the country  of origin is necessary in cases where customs duties or non -tariff 
regulations depend on the country of origin;  
  the Agreement on the Unified Rules of Determination of the Country of Origin of Goods of 
25 January  2008; 
  the Agreement on Rules of Origin of  Goods from Developing and Least -developed 
Countries of 12 December 2008;   
  Law No. 311 -FZ of 27 November 2010 "On Customs Regulation in the Russian Federation" 
(Chapter 10);  
  free trade agreements between the members of the Customs Union and third countr ies.  
3.22.   Determination of the country of origin is required in all cases where customs tariff and non -
tariff regulations depend on the country of origin, including preferential access for developing and 
least developed countries as provided for under Article 36 of the EAEU Treaty (which provides for 
preference to these countries) and the Decision of the Customs  Union Commission No. 130 of 
                                                
7 Byshovets V . (2015).  WT/TPR/S/345 • Russian Federation  
 
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  27 November 2008 (which lists the developing and least developed countries to which preference 
may be granted).  
3.23.   In general , the country of origin is the country in which the goods were wholly obtained or 
were sufficiently processed (where sufficiently processed is defined as resulting in a change in HS 
classification at the 4 digit level), underwent specific operations, and m et ad valorem  conditions. 
The specific operations and ad valorem  criteria are set out in the Agreement on the Unified Rules 
of Determination of the Country of Origin of Goods. Basic operations (such as mixing, slaughter of 
animals, preparation for sale, an d packaging of goods) do not qualify as substantial 
transformation. According to the authorities, the country of origin rules of the EAEU and the 
Russian Federation are based on the principles set out by the World Customs Organization.  
3.24.   The Agreement on Rul es of Origin of Goods from Developing and Least -developed Countries 
sets out the rules of origin f or imports that qualify for preferential treatment  under the EAEU GSP 
scheme. For these imports , the country of origin is the country in which the goods were wholly 
produced or sufficiently processed (where sufficiently processed is defined as operations that result 
in a product w ith inputs from countries not covered by the tariff preference represent ing no more 
than 50% of the value of the exported produc t). To qualify for preferential access under the EAEU 
GSP scheme, imports of eligible products require the Certificate of Origin Form A from the 
competent authorities of the exporting country.8 Importers must request preferential treatment at 
the time of declar ation of the goods and present supporting documentation.  
3.25.   Under the Agreement on Rules of Origin of Goods from Developing and Least -developed 
Countries, the FCS may lodge a request with the authorities in the country that issued the 
certificate of origin to  provide additional documentary proofs. If the certificate of origin or other 
proof of origin is not accepted, MFN treatment should be applied until the origin of the goods is 
established. The importer can recover the difference in the duties paid for a pe riod of one year 
from the date of over -payment upon the submission, by the payer, of a request, as provided for in 
Chapter 13 of the CU Customs Code. Such a request has to be submitted to the customs office 
where the duties were paid.  
3.1.4   Tariffs  
3.1.4.1   Bound tariff s 
3.26.   On acceding to the WTO in 2012, the Russian Federation bound all 11,557 tariff lines at the 
10 digit level with reductions to be phased in over periods of one to eight years for 7,028 lines. For 
all except 148 tariff lines, the reductions were to have be en phased in by 2016 (Table 3.2). At the 
end of implementation, the simple average final bound tariff will be 8.4%: 13.6% for agricultural 
products; 7.1% for non -agricultural products; and 3.7% of all tariff lines will be duty -free (WTO 
definitions). These  averages include ad valorem  equivalents for non -ad valorem  tariffs (Table 3.3), 
most of which are mixed duties with an ad valorem duty or a minimum specific duty expressed in 
euros per unit, except sugar (HS 1701) for which it is expressed in U.S. dollars .  
Table 3.2 Implementation of final bound tariffs, 2012 -2020  
Year No of tariff lines at the final bound 
rate No of lines with further reductions in bound rate 
to be implemented  
No of tariff lines  % 
2012 4,529 7,028  60.8 
2013 5,030  6,527  56.5 
2014 6,344  5,213  45.1 
2015 9,339  2,218  19.2 
2016 10,737  820 7.1 
2017 11,409  148 1.3 
2018 11,486  71 0.6 
                                                
8 Ministry of Economic Development online information. Viewed at: 
http://www.ved.gov.ru/eng/activities/system/  [April 2016].  WT/TPR/S/345 • Russian Federation  
 
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  Year No of tariff lines at the final bound 
rate No of lines with further reductions in bound rate 
to be implemented  
No of tariff lines  % 
2019 11,533  24 0.2 
2020 11,557  0 0.0 
Note:  The annual reduction of import duties occur on 1 September each  year acco rding to the Russian 
authorities (except 77 tariff lines subject to a different implementation date).  
Source:  WTO Secretariat calculations, based on the Consolidated Tariff Schedules ( CTS) database.  
3.1.4.2   Applied tariffs  
3.27.   In 2016, there were 11,561 tar iff lines at the 10 digit level in the Russian Federation's 
schedule of applied tariffs. At 8.3%, the average applied tariff is slightly lower than the average 
final bound tariff, although 2,218 tariff lines in the accession schedule of bound tariffs were still 
subject to reduction commitments. This is partly due to the greater number of duty -free tariff lines 
which apply to  16.0% of all lines, compared to 3.7% of final bound tariff lines (Table 3.3).  
3.28.   Non-ad valorem duties were applied to a significant num ber of tariff lines, most of them 
mixed duties of the form of an ad valorem rate with a minimum specific duty in euros (except 
sugar (HS 1701) for which it is expressed in U.S. dollars.  
3.29.   Since 1 January 2010, the Russian Federation has applied the common ex ternal tariff, first 
of the EAEC, and, since 1 January 2015, of the EAEU with the free movement of goods applying to 
imports from the other member States.  
3.30.   Since 2012, applied tariffs have been reduced from a simple average of 11% to 8.3%, this 
is the resu lt of reductions in all major product categories, except sugar for which the average 
increased, and cotton which was duty -free in both 2012 and 2015. Import duties on agricultural 
products are higher than on non -agricultural products. Within agriculture, a nimals and animal 
products, sugar and confectionary, and dairy products are the categories subject to the highest 
import duties (Chart 3.1). Furthermore, tariffs on agricultural products tend to vary considerably 
within product categories with larger range s and higher standard deviations, particularly for 
animals and animal products, sugar and confectionaries, and bevera ges, spirits and tobacco 
(Table  A3.1).9 
Table 3.3 Structure of MFN tariffs in the Russian Fe deration, 2012 and 2016  
(%) 
  Applied MFN tariff  Final  
boundb,c   2012a 2016b 
1. Bound tariff lines (% of all tariff lines)  n.a. n.a. 100 
2 Simple average tariff rate  11.0 8.3 8.4 
 Agricultural products (WTO definition)  17.6 14.6 13.6 
 Non-agricultur al products (WTO definition)  9.1 6.5 7.1 
 Agriculture, hunting, forestry and fishing (ISIC 1)  8.5 6.2 6.3 
 Mining and quarrying (ISIC 2)  4.6 4.3 5.1 
 Manufacturing (ISIC 3)  11.3 8.5 8.6 
3. Duty-free tariff lines (% of all tariff lines)  14.0 16.0 3.7 
4. Simple average rate of dutiable lines only  12.9 9.9  8.8 
5. Tariff quotas (% of all tariff lines)  0.5 0.4d 1.2 
6. Non-ad valorem  tariffs (% of all tariff lines)  18.2 14.8 12.1 
7. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  4.1 4.4 3.3 
8. Domestic tariff peaks (% of all tariff lines)e 2.3 3.0 1.5 
9. International tariff peaks (% of all tariff lines)f 14.0 6.4 3.1 
10. Overall standard deviation of applied rates  12.7 10.3 9.1 
11. Nuisance applied rates (% of all tariff lines)g 0.0 0.8 1.3 
Number of lines  
 Total 11,123  11,561  11,557  
 Ad valorem  rates 9,095  9,850  10,161  
 of which:     
                                                
9 The highest tariff applies to a single tariff line (HS 1604 32 0090) and results from an estimate of the 
ad valorem –equivalent. However, only 9 tonnes of the product were imported in 2015. Therefore the AVE may 
not be accurate.  WT/TPR/S/345 • Russian Federation  
 
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    Applied MFN tariff  Final  
boundb,c   2012a 2016b 
 Duty-free lines  1,562  1,845  430 
 Non-ad valorem  rates    
 Specific  255 557 572 
 Compound  0 0 35 
 Mixed  1,773  1,154  789 
n.a. Not applicable.  
a Ad valorem  equivalents (AVEs) were estimated based on 2012 import data at the 10 -digit level. In 
cases of unavailability, the ad valorem  part is used for compound and alternate rates.  
b AVEs were estimated based on 2015 import data at the 10  digit level. In cases of unavailability, the 
ad valorem  part is used for compound and alternate rates.  
c Bound rates are based on the CTS schedule in HS07 nomenclature , implementation period up to 
2020.  
d Based on WTO notification (G/AG/N/RUS/12) of 26 April, 2016.  
e Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
f International tariff peaks are defined as those exceeding 15%.  
g Nuisance rates are those greater than zero but less than or equal to 2%.  
 
Note:  The 20 12 and 2015 tariff schedules are based on HS12 nomenclature (at 10 -digit tariff level). 
Calculations are based on national tariff line level; excluding in -quota rates.  
Source: WTO Secretariat calculations based on data provided by the authorities, the WTO Tariff Analysis 
Online (T AO) database, WTO CTS database, and the UN International Trade Centre Trade  Map 
database.  
Chart 3.1 Average MFN applied tariff rates by WTO product categories, 2012 and 2016  
(%) 
0510152025303540
1 2 3 4 5 6 7 8 910 11 12 13 14 15 16 17 18 19 20 21 22 23 242012 2016
Source: WTO Secretariat calculations, based on data provided by the authorities, WTO TAO database; and UN International 
Trade Centre TradeMap database. %Chart 3.[Russia] Average tariff rates, by WTO product categories, 2012 and 2016
1 WTO Agriculture
2 Animals and products
3 Dairy products
4 Fruit, vegetables, and 
plants
5 Coffee and tea
6 Cereals and preparations
7 Oil seeds, fats and oils 
and their products      8 Sugars and confectionary
9 Beverages, spirits, and 
tobacco
10 Cotton
11 Other agricultural 
products
12 WTO non -agriculture
13 Fish and fishery 
products
14 Minerals and metals15 Chemicals and 
photographic supplies
16 Wood, pulp, paper, and 
furniture
17 Textiles
18 Clothing19 Leather, rubber, 
footwear, and travel goods
20 Non -electric machinery
21 Electric machinery
22 Transport equipment
23 Non -agricultural 
products
24 Petroleum
Source:2012 
applied tariffs
11.0%
Calculations include ad valorem equivalents (AVEs) estimated based on 2012 and 2015 import data at the 10 -digit tariff.  In 
case of unavailability, the ad valorem part is used for compound and alternate rates.Note:2015 
applied tariffs
8.3%
 
Note: Calculations include ad valorem  equivalents (AVEs) estimates based on 2012 and 2015 import data 
at the 10 -digit level. In case of unavailability, the ad valorem  part is used for compound and 
alternate rates.  
Source:  WTO Secretariat calculations, based o n data provided by the authorities, the WTO TAO database; 
and the UN International Trade Centre Trade  Map database.  WT/TPR/S/345 • Russian Federation  
 
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  3.31.   The tariff shows tariff escalation with the simple average tariff of 6.1% on products at the 
first stage of processing, 6.7% for semi -proces sed products, and 9.5% for fully processed 
products. Specific examples of escalation of tariffs depending on state of processing are given in 
Table 3.4.  
Table 3.4 Examples of tariff escalation  
(%, simple avera ge) 
Product description  Stage  Simple average tariffs (%)a 
Cotton  01 2.9 
Cotton yarn, thread, woven fabrics  02 8.3 
Clothing (of cotton)  03 9.8 
Tobacco (unmanufactured)  01 4.8 
Tobacco (products)  03 19.6 
Wood in the rough  01 8.9 
Wood sawn, veneering  02 9.1 
Wood products (incl. furniture)  03 16.8 
Leather (raw skins) b 01 0.3 
Leather (semi -processed, for example tanned or crust)b 02 4.1 
Leather articles b 03 12.7 
Crustaceans, live, fresh, chilled or frozen  02 8.6 
Crustaceans, prepared or preserved  03 10.4 
a Calculations for averages are based on the national tariff line level (10 -digit), excluding in -quota 
rates. Tariff schedule is based on HS2012.  Ad valorem  equivalents (AVEs) were estimated using 
2015 import data (for 2016 tariff averages) at th e 10-digit level from UN Intern ational Trade Centre 
Trade Map database.  In case of unavailability, the ad valorem  part is used for  compound and 
alternate rates.  
b Excluding fur  skins and artificial fur.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and the UN International 
Trade Centre Trade Map database.  
3.32.   At end -June 2016, the average applied MFN tariff was below the average bound tariff for the 
end of implementation of tariff reductions in 2020, indicating that in general  the applied tariff is 
below the bound level. However, for a number of tariff lines here it appears the applied MFN tariffs 
were in excess of the bindings or could have been because the applied tariff is ad valorem , but not 
less than a specific duty, while  the bound tariff is ad valorem  only (Table 3.5).  
Table 3.5 Applied MFN tariff compared to bound tariff, end -June 2016  
(%) 
HS codes and product 
descriptions  2016 applied tariff  Bound tariff  
Tariff reported i n the 
schedule  AVEs  Tariff reported in the schedule  
3921 13 - Cellular: -- Of polyurethanes  
 3921 13 1000  6.5, bnlt €0.2 2/kg 6.5 6.5 
 3921 13 9000  6.5, bnlt €0. 22/kg 6.5 6.5 
4810 Paper and paperboard, coated on one or both sides with kaolin (China clay ) or other inorganic substances   
4810 92 -- Multi-ply 
 4810 92 3000  15.0   5.0 
8418 21 -- Compression -type 
 8418 21 5100  12.0, bnlt €0.10/litre  12.0 12.0 
 8418 21 9100  14.7, bnlt €0. 07/litre 14.7 12.0 
8707 10 - For the vehicles of heading 87.03  
 8707 10 9000  15, bnlt €2,907/piece  43.5 15.0 
Note:  bnlt: but not less than.  
 About 6.5% of tariff lines could not be compared due to nomenclature differences.  
Source:  WTO calculations, based on data provided by the Russian authorities; and WTO CTS database.  
3.33.   In acceding to the WTO, the Russian Federation bound six tariff quotas in its Schedule for: 
fresh and chilled beef; frozen beef; fresh, chilled and frozen pork; pork trimming; fresh, chilled or 
frozen poultry; and for whey and modified whey (Section 4.1).  
3.1.4.3   Preferential tariffs  
3.34.   The Russian Federation applies tariff preferences under a number of regional and bilateral 
agreements as well as non -reciprocal arrangements for certain trading partners. In a notification WT/TPR/S/345 • Russian Federation  
 
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  to the WTO in June 2013, the Russian Federati on stated that: "In accordance with paragraph 23.1 
and Annex 5 of the Treaty on a Free Trade Area between Armenia, Belarus, Kazakhstan, the 
Kyrgyz Republic, the Republic of Moldova, the Russian Federation, Tajikistan, and Ukraine, as for 
relations among th e Parties, the Agreement on the Free Trade Area (CIS Agreement) signed on 15 
April 1994 shall be terminated ."10 On 1 April 2016, the Russian Federation notified the WTO that 
the free trade agreements between the Russian Federation and the Kyrgyz Republic, A rmenia, 
Ukraine, Belarus, Kazakhstan, and the Republic of Moldova had become null and void.11 The 
agreements with Azerbaijan and Tajikistan remain in force.  
3.35.   There are no tariffs or other border measures on trade among  members of the EAEU 
(Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, and the Russian Federation) . 
3.36.   Under the free trade agreement between the Russian Federation and Serbia, which has 
been applied since 3 June 2006, 93% of tariff lines are duty -free. The main exceptions are in the 
category of animals and products thereof where about 61% of tariff lines are duty -free; the simple 
average tariff for this category is over 20% (Table 3.6). The agreements with Azerbaijan and 
Tajikistan provide for duty -free trade for practically all tariff lines exce pt for some sugar and 
confectionary products (1.5% of lines in this category).  
3.37.   The Russian Federation has applied a Generalized System of Preferences scheme to imports 
from developing and least developed countries since 1992 which has been revised several times.  
The current legislation for the GSP scheme is the Protocol on the Common System of Tariff 
Preferences in the Customs Union of 12 December 2008, which came into force on 1 January 
2010. The Russian Federation and other members of the EAEU, provide  preferential access to 103 
developing countries and 48 least developed countries (Section 2.4.3).12 
3.38.   About 2,800 tariff lines (approximately 24% of total tariff lines) are covered by the GSP 
scheme. For these tariff lines, developing countries qualify for a 25 % discount on the MFN duty 
and least developed countries qualify for duty -free access (Table 3.6).13 
Table 3.6 MFN and selected preferential tariffs in the Russian Federation, 2016  
 MFN Serbia  GSP LDC 
 
Simple 
average  
(%) 
Share of  
duty-free 
lines (%)  
Simple 
average  
(%) 
Share of  
Duty -free 
lines (%)  
Simple 
average  
(%) 
Share of  
Duty -free 
lines (%)  
Simple 
average  
(%) 
Share of  
Duty -free 
lines (%)  
ALL 8.3 16.0 1.6 93.0 7.8 16.0 6.3 37.2 
HS 01 -24 14.0 4.2 4.6 86.8 12.3 4.2 7.3 66.6 
HS 25 -97 6.4 20.1 0.5 95.2 6.3 20.1 5.9 26.9 
By WTO category  
WTO agricultural 
products  14.6 5.5 5.2 84.9 13.0 5.5 8.4 61.1 
Animals and products 
thereof  32.7 6.2 22.1 58.7 30.8 6.2 25.1 54.5 
Dairy products  17.2 0 0 100 12.9 0 0 100 
Fruit, vegetables, and plants  8.9 3.2 0 100 6.7 3.2 0.0 99.8 
Coffee, tea, and cocoa and 
cocoa preparations  7.4 12.2 2.3 68.9 6.9 12.2 5.6 32.4 
Cereals and preparations  10.1 2.0 0.3 97.2 8.9 2.0 5.3 50.0 
Oils seeds, fats, oil and their 
products  7.6 15.5 0 100 6.3 15.5 2.1 79.5 
Sugars and confectionary  23.4 0 3.1 87.7 23.4 0 23.4 0 
Beverages, spirits and 
tobacco  11.9 6.1 4.0 67.5 11.5 6.1 10.4 21.2 
Cotton  0 100 0 100 0 100 0 100 
Other agricultural products, 
n.e.s.  4.9 5.9 0 100 4.2 5.9 1.8 64.8 
                                                
10 WTO document WT/REG82 /N/3, 7 June 2013.  
11 WTO document WT/REG/GEN/N/8, 1 April 2016.  
12 UNCTAD (2015).  
13 Ministry of Economic Development online information. Viewed at: 
http://www.ved.gov.ru/eng/activities/system/  [April 2016].  WT/TPR/S/345 • Russian Federation  
 
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   MFN Serbia  GSP LDC 
 
Simple 
average  
(%) 
Share of  
duty-free 
lines (%)  
Simple 
average  
(%) 
Share of  
Duty -free 
lines (%)  
Simple 
average  
(%) 
Share of  
Duty -free 
lines (%)  
Simple 
average  
(%) 
Share of  
Duty -free 
lines (%)  
WTO non -agricultural 
products  6.5 19.0 0.5 95.4 6.3 19.0 5.6 30.2 
Fish and fishery products  8.1 1.2 0 100 6.2 1.2 0.5 92.1 
Minerals and metals  7.5 8.9 0 100 7.2 8.9 6.5 20.4 
Chemicals and photographic 
supplies  5.0 9.7 0.2 96.9 4.9 9.7 4.6 16.2 
Wood, pulp, paper  and 
furniture  9.4 4.2 0.6 97.5 9.2 4.2 8.6 13.9 
Textiles  8.2 1.1 2.5 74.8 8.0 1.1 7.3 14.3 
Clothing  8.5 0 0 100 8.5 0 8.5 0 
Leather, rubber, footwear 
and travel goods  6.3 8.5 0 100 6.3 8.5 6.3 8.7 
Non-electric machinery  3.0 62.1 0.4 96.1 3.0 62.1 3.0 62.1 
Electric machinery  4.6 44.2 0.3 96.5 4.6 44.2 4.6 44.2 
Transport equipment  8.8 22.0 2.2 86.2 8.8 22.0 8.8 22.0 
Non-agricultural products, 
n.e.s.  7.4 25.6 0.0 99.9 7.2 25.6 6.4 33.5 
Petroleum  4.5 9.3 0 100 4.5 9.3 4.5 9.3 
Note:  "0.0" refers to >0  and <0.05; and "100" refers to 100 (not rounded).  
 Calculations for averages are based on the national tariff line level (10 -digit), excluding in -quota 
rates. Tariff schedule is based on HS2012. Ad valorem  equivalents (AVEs) were estimated based on 
2015 i mport data (for 2016 tariff averages) at the 10 -digit level tariff from the International Trade 
Centre Trade Map  database . In case of unavailability, the ad valorem  part is used for compound and 
alternate rates.  
Source:  WTO Secretariat calculations, based  on data provided by the authorities, the WTO TAO database and 
the International Trade Centre Trade Map database.  
3.1.5   Other charges affecting imports  
3.39.   Government Resolution No. 863 of 28 December 2004 "On the Rates of the Customs Fees 
for the Customs Clearance  of Goods" (last amended on 12 December 2012) sets out fees for 
customs clearance for goods.  In addition to fees for customs clearance, there are charges for 
customs escort and storage under Law No.  311-FZ of 27 November 2010 (last amended on 13 July 
2015) , which states that fees for customs transactions are limited to the approximate price of the 
services provided and shall not exceed Rub 100,000 (Table 3.7).14 
Table 3.7 Fees and charges for customs services re lating to imports and exports  
Government Resolution No. 863 of 2004 (as amended)  Rate applied since  2012  
(Rub) 
Customs fees for customs clearancea 
Goods   
 200,000 and less  500 
 from 200,000 to 450,000  1,000  
 from 450,000 to 1,200,000  2,000  
 from 1,20 0,000 to 2,500,000  5,500  
 from 2,500,000 to 5,000,000  7,500  
 from 5,000,000 to 10,000,000  20,000  
 over 10,000,000  30,000  
Securities in foreign currency, which are brought into the customs 
territory of the Russian Federation  500 for each consignment in one 
customs declaration  
Goods for personal, home and family needs not related to 
the entrepreneurial activity, except for passenger cars classified in 
commodity positions of HS Code 8703  250 
Passenger cars, classified in commodity positions of HS Code 8 703, 
which are imported for personal, home and family needs  As for goods  
                                                
14 Article 130.  WT/TPR/S/345 • Russian Federation  
 
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  Government Resolution No. 863 of 2004 (as amended)  Rate applied since  2012  
(Rub) 
Air, sea, river, combined (river -and-sea) vessels which are moved as 
commodities in keeping with the customs regime of temporary 
importation, temporary exportation and processing (if  the repair of such 
vehicles is an operation in processing), also after the completion of 
the following customs regimes:  
(i) temporary importation by means of the re -export of goods 
brought in on a temporary basis  
(ii) temporary exportation by means of the re -impor t of goods 
brought out on a temporary basis;  
(iii) processing on customs territory by means of bringing products 
of processing (vehicles) out of the customs territory of the 
Russian Federation; and  
(iv)  processing outside customs territory by means of the release 
for free circulation of products of processing (vehicles) on the 
customs territory of the Russian Federation.  10,000 for each vessel  
Customs fees for customs operations in respect of goods which are not 
subject to customs duties (single customs declaration)  1,000  
Customs charges for customs escort of goods:  
a) for each motor and rail way vehicle utilized either for the 
transportation of goods or which moves under its own power to be used 
as a commodity:   
- for a distance up to 50 km  2,000  
- for a distanc e from 50 to 100 km  3,000  
- for a distance from 100 to 200 km  4,000  
- for a distance over 200 km  1,000 for every 100 km,  
bnlt 6,000  
b) for each sea or river vessel, or aircraft  20,000 independently of the 
distance  
Fees for storage  
For the storage of g oods in the customs warehouses or bonded 
warehouse  1 for every 100 kg of the weight 
of the goods per day  
For the storage of certain types of goods in specially equipped 
warehouses  2 per 100 kg of the weight of 
goods per day  
a Customs duties for customs c learance operations are reduced by 25% for goods declarations 
submitted in electronic form.  
Note:  bnlt: but not less than  
Source:  WTO Secretariat on the basis of data provided by the Russian authorities . 
3.40.   Under Articles 70 -75 of the CU Customs Code, the FCS  may collect VAT and excise duties on 
imports into the EAEU from third countries. The levels, methods of collection, and taxable bases 
for these taxes on imports are determined in the national legislation of the member States 
(Section 3.3.1).  
3.1.6   Import prohib itions, restrictions, and licensing  
3.41.   Prior to formation of the EAEU, non -tariff measures (NTMs) applied by the Russian 
Federation were governed by the agreements of the Customs Union which included: Agreement on 
Common Measures of Non -Tariff Regulation in  Respect of Third Countries (25 January 2008); 
Agreement on the Introduction and Application of Measures Concerning Foreign Trade in Goods on 
the Common Customs Territory in respect of Third Countries (9 June 2009); and Agreement on 
Licensing in the Area of Foreign Trade in Goods (9 June 2009). A common list of goods subject to 
import and/or export licences applies to the EAEU member States. The authorities also noted that 
some goods require both a licence and a permit, whereas some only require a permit.  
3.42.   With the establishment of the EAEU, NTMs are now governed by Article 46 of the EAEU 
Treaty which states that, in trade with third countries, the EAEU may apply the following common 
non-tariff measures:  
 a prohibition on imports;  
 quantitative restrictions on im ports;  
 the exclusive right to import;  WT/TPR/S/345 • Russian Federation  
 
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   automatic licensing (monitoring) of imports; and  
 authorization procedures for imports.  
3.43.   The EAEU Treaty states that these measures are to be introduced and applied according to 
the principles of transparency and non -discrimination . However, according to Article 47 of the 
EAEU Treaty, a member State may unilaterally introduce and temporarily apply (for a 6 month 
period) non-tariff measures in relation to third countries based on the procedure provided in the 
Protocol on N on-Tariff Measures in Relation to Third Countries (Annex 7 of the EAEU Treaty).  
3.44.   Additionally, in the period 2012 to June 2016  a number of new laws and regulations relating 
to non -tariff measures were adopted by the Eurasian Economic Commission (EEC) and th e Russian 
Federation , including : 
 Decision of  the Board of the EEC No. 134 from 16 August 2012 " On regulations acts in 
the area of non -tariff regulation " (last amended on 2 June 2016 ); 
 Decree of the Government of the Russian Federation No. 228 of 24 March 2 014 "On 
measures of state regulation of consumption and circulation of ozone depleting 
substances" (last amended on 3 June 2016 ); and  
 Decision of the Board of the EEC No. 30 of 21 April 2015 " On non-tariff regulat ory 
measures (last amended on  2 June 2016 ).  
3.45.   Goods subject to import restrictions and the authorities responsible for issuing licences and 
permits are in Table 3.8 . In addition, a temporary measure was introduced under Government 
Resolution Nos. 1486 of 30 December 2015 and No. 556 of 17 June 2016 "On licensing of import 
of crushed stone, gravel, screenings of crushing, the materials from the screenings of crushing, 
mixture which consist of gravel, crushed stone, sand ". Under this measure an import licence is 
required for imports of these products. Resolution No. 1486 ap plied from 1 January to 
30 June 2016, and Resolution No 556 applies from 1 July to 31 December 2016.  
Table 3.8 Goods under import restrictions  
Basis for application  Product  Document name  Issuing authority  
Decision No. 134  
Section 2.1  Ozone depleting 
substances  Licence/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No. 30  
Section 2.2  Crop protect ion 
products (pesticides)  Licenc e/conclusion 
(permit)  Ministry of Industry and Trade;  
Ministry of Agriculture  
Decision No. 30  
Section 2.3  Hazardous waste  Licenc e/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No. 30  
Section 2.7  Species of wild fauna 
and flora, controlled 
under the 
Convention on 
International Trade 
in Endangered 
Species of Wild Flora 
and Fauna  (CITES)  Authorization, 
(CITES certificate)  Country of provenance CITES 
administrative authority;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor);  
Federal Agency of Fishery (Rosribolovstvo) 
– sturgeons, including sturgeon roe  
Decision No. 30  
Section 2.9  Precious stones  Act of gov ernment 
Regulation;  
Kimberley  Process 
Certificate  State Administration for the Formation of 
the State Fund of Precious Metals and 
Precious Stones of the Russian Federation, 
storage, dispensing and use of precious 
metals and precious stones (Gokhran 
Russia ) under the Ministry of Finance   
Decision No. 30  
Section 2.12  Narcoti c drugs, 
psychotropic 
substances and their 
precursors  Licenc e Ministry of Industry and Trade  WT/TPR/S/345 • Russian Federation  
 
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  Basis for application  Product  Document name  Issuing authority  
Decision No. 134  
Section 2.13 
(abolished 2 July 2016 
inclusive);  
 
Decision No. 30  
Section 2 .13 (from 
3 July 2016)a Poisonous 
substances, other 
than narcotic drugs 
and psychotropic 
substances 
precursors  Licenc e/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
 
Decis ion No.  134 
Section 2.14  Unregistered 
medicines and 
pharmaceutical 
substances  Conclusion  
(permit)  Ministry of Health  
Decision No. 30  
Section 2.16  Radio electronic tools 
and (or) high – 
frequency devices for 
civil purposes 
including built -in or 
which are  part of 
other goods  Licenc e/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision in the 
Sphere of Telecom, Information 
Technologies and Mass Communications  
(Roskomnadzor)  
Decision No. 30  
Section 2.17  Special technical 
equip ment meant for 
confidential 
(undercover) 
obtaining information  Licence/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Security Service of the Russian 
Federation  (FSB) 
Decision No. 30  
Section 2.19  Cryptographic 
hardware  Licenc e/conclusion 
(permit) Ministry of Industry and Trade;  
Federal Security Service of the Russian 
Federation  (FSB)  
Decision No. 30  
Section 2.21  Organs and tissues, 
blood and its 
components  Licenc e/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Surveil lance in 
Healthcare (Roszdravnadzor)  
Ministry of Health  
Decision No 30  
Section 2.22  Service and civilian 
weapon, its main 
component parts and 
its cartridges  Conclusion  
(permit)   Ministry of Internal Affairs  
Decision No. 134  
Section 2.25  Cane sugar – raw 
without flavor  –
aromatic or coloring 
additives  Restrictions  Applied in case of importation to the 
Republic of Kazakhstan territory from third 
countries  
Decision No.  134 
Section 2.26  Alcohol, tobacco raw 
materials, tobacco 
goods, tobacco 
waste products  Exclusive (sole) 
rights  Applied for goods originating from third 
countries and importing to the Republic of 
Belarus.  
The application of exclusive (sole) rights is 
identified in accordance with the Republic 
of Belarus legislation.  
a Decision  No. 57 of the Board  of the Eurasian  Economic  Commission  of 2 June 2016. 
Note:  Decision No. 30: Decision of the Board of the EEC No. 30 of 21 April 2015 "On non -tariff regulatory 
measures " (last amended on 2 June 2016) .  
 Decision No. 134: Decision of the Board of the EEC No. 134 from 16 August 2012 "On regulations 
acts in the area of non -tariff regulation" (last amended on 2 June 2016) . 
Source:  WTO Secretariat based on information p rovided by the Russian authorities.  
3.46.   Under Government Resolution No. 778 of 7 August 2014, implementing Presidential Decree 
No. 560 of 6 August 2014, imports of certain agricultural products from Australia, Canada, the EU, 
Norway, and the United States were  banned for one year (Table 3. 9). Under Government 
Resolution No. 625 of 25 June 2015, the ban was extended for an additional year and under 
Government Resolution No. 842 of 13 August 2015 it was extended to cover imports from Albania, 
Iceland, Liechtenste in, Montenegro, and (from 1 January 2016) Ukraine. Under Presidential Decree 
No. 391 of 29 July 2015, products subject to this ban that are fou nd on the market of the 
Russian  Federation may be destroyed.15 Under a Government Resolution of 1 July 2016, the b an 
was extended to 31 December 2017.16 
                                                
15 Government of the Russian Federation online information. Viewed at:  
http://government.ru/docs/all/92426/  [April 2016].   
16 Government of the Russian Federation online informat ion. Viewed at: 
http://government.ru/en/docs/23584/  [July 2016] . WT/TPR/S/345 • Russian Federation  
 
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  Table 3.9 Product coverage of Government Resolution No. 778 of 2014 (as amended)  
HS Code  Product name  
0201 Meat of bovine animals, fresh or chilled  
0202 Meat of bovine a nimals, frozen  
0203 Meat of swine, fresh, chilled of frozen  
0207 Meat and edible offal of poultry in heading 0105, fresh, chilled or frozen  
from 0210  Meat (salted, in brine, dried or smoked)  
0301, 0302, 0303, 0304, 
0305, 0306, from 0307, 0308  Fish and crustaceans, molluscs and other aquatic invertebrates  
(but not salmon or trout fry)  
 
0401, 0402, 0403, 0404, 
0405, 0406  Milk and dairy products, butnot specialized and lactose -free milk, lactose 
free dairy products for clinical nutrition and dietary nutri tion 
0701, 0702 00 000, 0703, 
0704, 0705, 0706, 0707 00, 
0708, 0709, 0710, 0711, 
0712, 0713, 0714  Edible vegetables and certain roots and tubers  
(but not seed potatoes, seed onions, sugar maize hybrid for planting, peas 
for planting)  
0801, 0802, 0803, 08 04, 
0805, 0806, 0807, 0808, 
0809, 0810, 0811, 0813  Fruit and nuts  
1601 00  Sausages and similar products, of meat, meat offal or blood; food 
preparations based on these products;  
1901 90 110 0,  
1901 90 910 0,  
1901 90 990 0,  
2106 90 920 0,  
2106 90 980 4,  
2106 90 980 5,  
2106 90 980 9  Prepared foodstuffs, including cheese and curd based on vegetable oil; 
Foodstuffs (containing milk, based on vegetable oils).  
(but not biologically active additives, specialized food products for athletes, 
vitamin -mineral comple xes, flavours, concentrated protein (of animal and 
vegetable origin) and their mixtures, dietary fibre, nutritional supplements)  
Note:  The list does not apply to baby food.  
Source:  Government of the Russian Federation, online information. Viewed at: 
http://government.ru/docs/all/92426/  [April 2016].  
3.47.   Presidential Decree No. 583 of 28 November 2015 imposed a number of temporary 
measures (no defined period) in relation to Turkey which includ ed a ban on imports of certain 
products of Turkish origin .17 Government Resolution No. 1296 of 30 November 2015 sets out 
several provisions relating to Decree No. 583, including the list of products subject to the ban, 
which does not apply to imports for personal use (Tabl e 3.10).18 
Table 3.10 Product coverage of Government Resolution No . 1296 of 30 November 2015  
HS Code  Product's name  
0207 14  Parts of carcasses and offal of chickens, frozen  
0207 27  Parts of carcasses and offa l of turkeys, frozen  
0603 12  Cloves, fresh  
0702 00  Tomatoes, fresh or chilled  
0703 10  Onions and shallots, fresh or chilled  
1007 04  Cauliflower and broccoli, fresh or chilled  
0707 00  Cucumbers and gherkins, fresh or chilled  
0805 10  Oranges, fresh or  dried 
0805 20  Mandarins (including tangerines and Satsuma); clementines, and similar citrus hybrids, fresh or 
dried 
0806 10  Grapes, fresh  
0808 10  Apples, fresh  
0808 30  Pears, fresh  
0809 10  Apricots, fresh  
0809 30  Peaches, including nectarines, fresh  
0809 40  Plums and sloes, fresh  
                                                
17 President of the Russian Federation online information. Viewed at: 
http://en.kremlin.ru/events/president/news/50805 [April 2016].  
18 Government of the Russian Federation, online information. Viewed at: http://government.ru/docs/all/ 
104369/  [April 2016].  WT/TPR/S/345 • Russian Federation  
 
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  HS Code  Product's name  
0810 10  Strawberries, fresh  
1704 10  Chewing gum, coated or covered in sugar  
2501 00  Salt 
Source:  Government of the Russian Federation, online information. Viewed at: 
http://government.ru/docs/all/104369/  [April 2016].  
3.48.   Presidential Decree No. 1 and Government Resolution No. 1 of 2016, introduced a 
mandatory requirement that goods in transit by road and rail crossing the Russian Federation 
towards Kazakhstan to use (and  remove) seals operating on the basis of the Russian Global 
Navigation Satellite System (GLONASS). The seals are to be applied upon entry into the Russian 
Federation and removed on leaving at the expense of the shipper or consignee.19 Under the 
Decree, good s from Ukraine in transit to Kazakhstan may only enter the Russian Federation from 
Belarus. Presidential Decree No. 319 of 1 July 2016 extended the measure to include goods in 
transit to the Kyrgyz Republic and temporarily bans transit of goods subject to non-zero import 
duties under the Common Customs Tariff of the EAEU, and goods subject to Government 
Resolution No. 778 of 7 August 2014.  
3.1.7   Anti-dumping, countervailing, and safeguard measures  
3.49.   The Report of the Working Party on the Accession of the Russian Fe deration to the WTO 
stated that the Ministry of Industry and Trade was the national investigating authority for 
safeguard, anti -dumping, and countervailing duty investigations and that: " During the transitional 
period provided for in the Transitional Agree ment signed on 19 November 2010, the national 
authority of the Russian Federation would continue ongoing investigations and –would  conduct 
new trade remedies investigations in the Russian Federation upon the request of the domestic 
industry of the Customs Union. However, all decisions to impose, extend, review or terminate 
trade remedy measures would be taken by the CU Commission on the basis of a proposal from the 
Government of the CU Party that carried out the investigation ."20 The transition period ended on 
1 August 2012 when the CU regime became fully operable. The CU agreements, which formed the 
legal basis for the customs union for Belarus, Kazakhstan, and the Russian Federation, were 
codified into the EAEU Treaty, which entered into force on 1 January 2015. The EAEU treaty sets 
out the basic legislation on trade remedies (Articles 48 -49, and Annex 8).  Since 2012, the Eurasian 
Economic Commission's Department for Internal Market Defence (DIMD) has been responsible for 
conducting investigations and imposi ng trade remedy measures. Decisions to impose trade 
remedies are taken by the Board of the Commission and are binding on all EAEU member States.  
3.50.   Upon accession to the WTO, the Russian Federation made several commitments on trade 
remedy measures including: that trade remedy measures by the Russian Federation or the 
Customs Union would comply with the relevant WTO agreements; and holding consultations on 
safeguards and providing information on trade remedies.21  
3.51.   The rules on protection of confidential informat ion are set out in the Protocol on Application 
of Safeguard, Anti -Dumping and Countervailing Measures with Respect to Third Countries22, and 
the Regulation on Use and Protection of Confidential Information and Proprietary Information of 
Limited Distribution  in the Investigating Authority.23 Confidential information submitted to the 
DIMD cannot be disclosed without written permission, and the sanctions on the disclosure of 
information are based on the legislation of the Russian Federation, including administra tive, civil 
and criminal liability.  
3.52.   Trade remedy investigations may be initiated based on the initiative of the DIMD or on a 
written application by, or on behalf of a producer in a member State(s) or an association of 
producers in a member State(s), of lik e or directly competive product for safeguard measures 
(SG), or of like product for antidumping (AD) or countervailing (CV) measures. Applications for 
safeguard measures must be supported by producers of like or directly competive products 
                                                
19 WTO document  WT/TPR/OV/W/10, 4 July 2016, Annex 3.  
20 WTO document WT/ACC/RUS/70, 17 November 2011, paragraph 577.  
21 WTO document WT/ACC/RUS/70, 17 November 2011, para graph  620. 
22 Annex 8 of the EAEU Treaty, paragraphs 254 -258. 
23 Annex to Decision of the Eurasian Econo mic Commission No. 1 of 7 March 2012.  WT/TPR/S/345 • Russian Federation  
 
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  representing not  less than 25% of total production volume of these products in the member States 
(including the applicant). For antidumping and countervailing measures, the application must be 
supported by producers of like products producing at least 25% of the volume of  production in the 
member States and more than 50% of producers in the member States that expressed an opinion 
on the application.  
3.53.   Before the end of the investigation, the DIMD may prepare a report with a proposal on 
imposition of a provisional measure as a preliminary determination. However, preliminary 
determinations are not mandatory. The decision to apply a provisional measure is taken by the 
Board of the Commission on the basis of the DIMD's report, after which the DIMD issues a notice 
on the decision.  If the decision to apply a provisional measure is taken, the duration of the 
provisional safeguard duty should not exceed 200 days, and the duration of both provisional AD 
and CV duties should not exceed 4 months (which may be extended by up to a total of  9 months) 
(Table 3.1 1). 
Table 3.11 Trade remedy stages and timing in the EAEU  
Stage  Note  Time  
Application  Application may be made by:  
 Producer of like or directly competitive product (SG)  
 Producer of like pr oduct (AD, CV)  
 Association of producers representing 25% of total volume 
of production of like or directly competive product (SG)  
 Association of producers representing 25% of total volume 
of production of like products (AD, CV)   
Review of 
application   DIMD  informs exporting third countries of the application 
(AD, CV)  30–60 days  
Investigation   DIMD may initiate an investigation on its own initiative  
 DIMD informs competent authorities of exporting countries 
and known interested parties, and publishes decision  to 
initiate investigation  
 Interested parties may declare their intention to participate 
in an investigation and may submit information and DIMD 
may request information from them  
 Consultations and/or public hearings may be held  9-12 months (SG)  
12-18 mont hs (AD, CV)  
Trade remedy 
measure   Duration of provisional measure  
o SG 
o AD, CV  
 Duration of definitive measures from application or review  
o SG 
o AD, CV   
Up to 200 days  
Up to 9 months  
 
 
Up to 4 years (max. 8 years)  
Up to 5 years  
Review   Upon request or on DIMD ini tiative  12 months  
Source:  Russian authorities and Annex 8 of the EAEU Treaty.  
3.54.   Statistics on trade remedy actions for 2012 -15, including both the application of provisional 
and definitive measures, are in Table 3.1 2. 
Table 3.12 Trade remedy measures by DIMD, 2012 -15 
Measure  2012  2013  2014  2015  
AD investigation initiations (original)  1 1 7 1 
Provisional AD measures imposeda 0 1 0 0 
Definitive AD measures imposed  1 4 0 6 
Confirmation of AD measures following expiry reviewb 0 1 0 1 
SG investigation initiations (original)  3 0 0 0 
Provisional SG measures imposeda 0 1 0 0 
Definitive SG measures imposedb  0 1 1 0 
Confirmation of SG measures following expiry review 1 0 0 0 
CVD investigation initiationsc 0 0 1 0 
a Two cases with provisional measures imposed: AD: enamelled bat hs of cast iron from China; 
SG: combine harvesters.  
b AD measures extended: rolling -element bearings, forged work -rolls; SG measures extended: pipes 
and tubes of stainless steel.  
c One CV ca se initiated in December 2014: ferrosilicon manganese from Ukraine.  
Source:  WTO Secretariat on the basis of data provided by the Russian authorities . WT/TPR/S/345 • Russian Federation  
 
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  3.55.   Table 3.1 3 lists definitive trade remedy measures in force as at May 2016.  
Table 3.13 Products and exporting countries subject to definitive trade remedy 
measures as at May 2016  
Product  Type  Exporting Country  
Certain steel pipes and tubes  AD Ukraine  
Rolling -element bearings  AD China  
Cold-rolled flat steel produ cts with polymer coating  AD China  
Graphite electrodes  AD India 
Cold-worked seamless pipes and tubes of stainless steel  AD China  
Enamelled baths of cast iron  AD China  
Light commercial vehicles  AD Germany, Italy, Turkey  
Forged work -rolls AD Ukraine  
Citric acid  AD China  
Stainless steel flatware  AD China  
Seamless steel oil country tubular goods  AD China  
Crawler dozers  AD China  
Commercial vehicles tyres  AD China  
Bars and rods  AD Ukraine  
Steel railway wheels  AD Ukraine  
Seamless pipes and tubes of st ainless steel  AD Ukraine  
Combine harvesters and modules  SG All countries  
Tableware and kitchenware of porcelain  SG All countries  
Source:  WTO Secretariat based on information provided by the Russian authorities . 
3.56.   The DIMD publishes notices of trade remed y actions on the Eurasian Economic 
Commission's website.24 Public notices are also forwarded to the competent authorities of the 
exporting countries and other interested parties known to the DIMD. The notices include 
information on: initiation of investigat ion; imposition of provisional measures; possible retroactive 
application of AD or CV measures; conclusions of investigations in cases of affirmative 
determination and imposition of definitive measures; conclusions or suspensions of the 
investigations purs uant to acceptance of price undertakings; termination of the investigations 
without imposition of measures; and other decisions such as publications of reports, extensions of 
investigations, public hearings, etc.  
3.57.   As at end -February 2016, the Eurasian Econo mic Commission had conducted 3 reviews in 
accordance with paragraph 620 of the Report of the Working Party on the Accession of the Russian 
Federation: Ukraine – Safeguard Measure on Caramel (liberalization of the measure)25; Chinese 
Taipei – Safeguard Measu re on Pipes & Tubes of Stainless Steel (redistribution of quota)26; and 
Chinese manufacturers – Anti-Dumping Measure on Cold -rolled Flat Steel Products with Polymer 
Coating from the People's Republic of China; Chinese Taipei; Hong Kong, China; and Macao, Ch ina 
(recalculation of margin).27 The provisions for expiry reviews of trade remedy measures are set 
out in the EAEU Treaty Protocol on Application of Safeguard, Anti -Dumping and Countervailing 
Measures with Respect to Third Countries.28  
3.58.   At end -June 2016, an ti-dumping duties on light commercial vehicles from Germany and 
Italy were being examined by a panel under the WTO Disput e Settlement Mechanism 
(Section  2.4.1).  
                                                
24 Viewed at:  http://eec.eaeunion.org/ru/act/trade/podm/Pages/default.aspx  [July 2016].  
25 Result of the WTO consistency revie w contained in the EEC Decision No. 100 of 24 April 2013: 
progressive liberalization of the safeguard measure.  
26 Result of the WTO consistency review contai ned in the EEC Decision No. 268 of 26  November  2013:  
the DIDM considered Chinese Taipei; Macao, Chin a; and Hong Kong, China as individual WTO Members; 
redistribution of the quota between China and Chinese Taipei.  
27 Result of the WTO consistency review contai ned in the EEC Decision No. 191 of 21  October 2014 : 
revision of formula and recalculating of dumpi ng margin; the DIMD considered Chinese Taipei; Macao, China; 
and Hong Kong, China as individual WTO Members and excluded imports from Chinese Taipei; Macao, China; 
and Hong Kong, China from the AD measure (negligible imports)  
28 EAEU Treaty,  Annex No. 8, paragraphs  109-112 (AD measures), para graphs  174- 176 (CV measures), 
and para graph s 31-32, and 36-37 (SG measures).  WT/TPR/S/345 • Russian Federation  
 
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  3.1.8   Standards and other technical requirements  
3.1.8.1   Standards and technical requirements at the EAEU  level 
3.59.   In the Russian Federation, the legal framework for standards, technical regulations and 
conformity assessment systems is the EAEU Treaty and national legislation. The Federal Agency on 
Technical Regulations and Metrology under the jurisdiction of the Mi nistry of Industry and Trade is 
the national standards body for the Russian Federation and represents the Federation in 
international and regional standardization organizations including the International Organization 
for Standardization (ISO), and the Int ernational Electrotechnical Commission (IEC), and it is an 
observer to the European Telecommunications Standards Institute (ETSI). The Russian Scientific 
and Technical Centre for Information on Standardization, Metrology and Conformity Assessment 
(FGUP Sta ndartinform) is the national enquiry point for the WTO Agreement on Technical Barriers 
to Trade (TBT Agreement).29 
3.60.   The EAEU Treaty states that "technical regulation of the EAEU members shall be used for 
the purpose of protecting life and (or) human health, property, the environment, protecting life 
and (or) health of animals and plants, prevention of actions misleading consumers as well as to 
ensure energy efficiency and resource conservation within the EAEU. Adoption of technical 
regulations of the EAEU for  other purposes is not allowed".30 
3.61.   According to the EAEU Treaty, international standards are the basis for technical regulations 
in the EAEU  except in cases where they do not comply with the purposes of adoption of technical 
regulations of the EAEU, includi ng due to climatic and geographical factors or technological and 
other particularities.31 In the absence of an applicable international standard,  regional standards , 
or national standards  of other countries may be used as a basis for EAEU measures . A produc t that 
is subject to a technical regulation may be put into circulation in the EAEU, provided that it has 
passed the necessary conformity assessment procedures.  
3.62.   The procedures relating to the preparation, adoption, and cancelling technical regulations by 
the EAEU Commission are divided between the EEC Council and its Board (Table 3.1 4). The Council 
adopts technical regulations and defines the dates when they enter into force while the Board 
approves the rules for the transition period for products which wer e previously subject to 
mandatory conformity assessment.  
3.63.   The EAEU Commission also approves the Common List of products to which technical 
regulations of the EAEU or national mandatory requirements of its member States may be 
applied.32 The member States may  not impose mandatory requirements in their legislation for 
products that are not included in the Common List. For each EAEU technical regulation, the EAEU 
makes reference to an approved list of standards, which includes member States' national 
standards  where compliance with these standards is deemed to mean compliance with the relevant 
technical regulation. In the Russian Federation, national standards are referred to as GOST -R, and 
adopted international standards are referred to as GOST -ISO. In cases whe re these standards are 
not used, conformity assessment is carried out based on risk analysis.33 
                                                
29 WTO document G/TBT/2/Add.109, 11 October 2012.  
30 EAEU Treaty,  Article 52(1).  
31 EAEU Treaty, Annex 9 "Protocol on Technical Regulation withi n the Eurasian Economic Union", 
paragraph 3.  
32 The list is available on the Commission's website. Viewed at: 
http://www.eurasiancommission.org/ru/act/texnreg/Pages/default.a spx [April 2016].  
33 EAEU Treaty Article 52.3 "[t]o meet the requirements of the technical regulations of the EAEU and to 
assess conformity with the requirements of the technical regulations of the EAEU , international, regional 
(intergovernmental) standard s, and in their absence ( prior to the adoption of regional (intergovernmental) 
standards) , the national (state) standards of the member  States can be applied  on a voluntary basis ". WT/TPR/S/345 • Russian Federation  
 
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  Table 3.14 Provisions on the procedure of drafting, adopting, amendment and 
cancellation of the EAEU technical reg ulations  
Procedures (with the participation of industry, the business community, and experts)  
Development of the technical regulation by the working group (drafting body, the national standardization 
body, specialized technical committees on standardizati on, representatives of industry and the business 
community)  
Public discussion for at least 60 days on the official website of the EAEU Commission  
Publication of comments (opinions) and suggestions received from the public discussions on the draft 
technic al regulation on the official website for general review  
Discussions at the level of the Consultative Committee Meeting (for the purpose of submitting for public 
discussion and before the introduction at the meeting of the Board of the Commission when int eragency 
approval is finished)  
Assessment of regulatory impact during the process of internal state approval according to the national 
procedure  
Period between the adoption and enter into force of the technical regulation of not less than 180 days 
(amend ed on 28 May 2015)  
Source:  WTO Secretariat based on information provided by the Russian authorities, Eurasian Economic 
Commission Council Decision No . 48 of 20 June 2012 . 
3.64.   At end -May 2016, the EAEU had adopted a total of 35 technical regulations, all of wh ich had 
entered into force, including, on tobacco products which entered into force on 15 May 2016.34 In 
the period from the accession of the Russian Federation to the WTO until end -April 2016, four 
technical regulations had been adopted (Table 3.1 5) and fi ve technical regulations had been 
amended: "On safety of packaging"35; "On safety of wheeled vehicles"36; "On requirements for 
automobile and aviation gasoline, diesel and marine fuel, jet fuel and heating oil"37; "On safety 
requirements for food ad ditives fl avourings and techno logical aids"38; and "On oils and fat 
products".39  
Table 3.15 Technical regulations of the EAEU adopted during the period from accession 
of the Russian Federation to the WTO to end -April 201 6 
Decision No.  Date  Title 
No. 41  2 July 2013  On Technical Regulation of the Customs Union on safety of 
equipment functioning under the excess pressure  
No. 67  9 October 2013  On Technical Regulation of the Customs Union on safety of milk and 
dairy products  
No. 68  9 October 2013  On Technical Regulation of the Customs Union of safety of meat and 
meat products  
No. 107  12 November 2014  On Technical Regulation of the Customs Union on tobacco products 
(effective from 15 May 2016)  
 Source:  WTO Secretariat based  on information provided by the Russian authorities . 
3.65.   Each technical regulation of the EAEU includes a section on packaging, marking and labelling 
requirements while general requirements for packaging of goods are established in the technical 
regulation "On  safety of packaging" (TR CU 005/2011). Specific technical requirements for food 
products are contained in the technical regulation on "Labelling of foodstuffs" (TR CU 022/2011). 
More detailed labelling requirements may be contained in the technical regula tions for certain 
types of food products.  
3.66.   Since the accession of the Russian Federation to the WTO there have been no changes to 
the procedures for the acceptance of foreign test results, or results of inspections and certificates 
from non -EAEU members, an d no agreements on mutual recognition have been concluded.40  
3.67.   Article 54 of the EAEU Treaty calls for harmonization of rules and approaches in the field of 
accreditation with international standards while ensuring objectivity, impartiality and competence 
                                                
34 Eurasian Economic Commission online information. Viewed at: 
http://www.eurasiancommission.org/ru/act/texnreg/deptexreg/tr/Pages/TRVsily.aspx  [April 2016].  
35 The Customs Union Commission Decision No. 116 of 17 December 2012.  
36 The Cu stoms Union Commission Decision No. 6 of 30 January 2013.  
37 The Customs Union Commission Decision No. 43 of 23 June 2014.  
38 The Customs Union Commission Decision No. 69 of 18 September 2014.  
39 The Customs Union Commission Decision No. 39 of 23 April 2015.  
40 WTO document WT/ACC/RUS/70, 17 November 2011, paragraphs 773 -813. WT/TPR/S/345 • Russian Federation  
 
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  of the accreditation bodies of the member states . Accredited bodies for conformity assessment 
(certification bodies and testing laboratories) are listed in the U nified Register of Conformity 
Assessment Bodies of the EAEU.41 According to the EAEU Treaty, accre ditation bodies in the 
member States of the EAEU must be independent and must not compete with each other. An 
application for accreditation as a conformity assessment certification body must be made to the 
accreditation body of the member State of the EAEU  where the applicant is registered as a legal 
entity.42 
3.1.8.2   Standards in the Russian Federation  
3.68.   The legal act that established the main principles of the Russian system of standardization 
and technical regulation on a national level is Law No . 184-FZ of 27 Dece mber 2002 (last amended 
on 6 April 2016) "On technical regulation" although many provisions of the Law have been 
superseded by EAEU legislation. A new law, Law No. 162 -FZ of 29 June 2015 "About 
standardization in the Russian Federation" was to enter into f orce in July 2016.  
3.69.   Under the EAEU Treaty, the development and applications of standards, conformity 
assessment, state control and supervision, metrological control, and liability matters in the Russian 
Federation continue to be administered at the nationa l level, with regard to the following matters:  
 National standards within the meaning of the TBT Agreement (development, and 
adoption) and the relevant standards organizations;  
 State control and supervision (inspection) to ensure compliance with the requir ements 
of technical regulations;  
 Assurance of uniformity of measurements;  
 Violations of technical regulations and withdrawal of products from the domestic 
market;  
 Operation of the national aspects of developing and maintaining the system of 
certificates o f conformity assessment and declarations of conformity, including the 
national part of the Unified Register of Certificates and Declarations;  
 Operation of the national aspects of developing and maintaining the system of 
certification bodies and testing la boratories (centres) of the CU, including accreditation 
and the national part of the Unified Register of Certification Bodies and Testing 
Laboratories;  
 Voluntary conformity assessment;  
 Rights and obligations of applicants in the field of mandatory confor mity assessment;  
 Coordination of the activities, positions and procedures of the Government in the field 
of technical regulations;  
 Procedures for the determination of liability in the case of violation of technical 
regulations and corresponding sanctions until the decision to transfer these matters to 
the CU has been made;  
 Providing required transparency; and  
 Financing in the field of technical regulation.43  
3.70.   Article 13 of Law No.  184-FZ lists the types of voluntary standards, within the meaning of 
the WTO  TBT Agreement, which may be used in the Russian Federation:  
 National standards;  
 Rules, norms and recommendations in the sphere of standardization;  
 Classifications applied in accordance with the established procedure, all -Russian 
classifiers of technical a nd economic, and social information;  
                                                
41 Eurasian Economic Commission online information. Viewed at:  
http://www.eurasiancommission.org/ru/docs/Pages/IL _OS.aspx  [April 2016].  
42 EAEU Treaty,  Article 54.3.  
43 WTO document WT/ACC/RUS/70, 17 November 2011, paragraph 703, and national authorities.  WT/TPR/S/345 • Russian Federation  
 
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   Standards adopted by organizations (standards of enterprises, scientific, technical, 
engineering institutions, and other societies);  
 Set of rules (voluntary documents, elaborated and approved by the Federal Executive 
bodies regarded as related to the standardization area);  
 International standards, regional standards, regional sets of rules, standards of foreign 
states and sets of rules of foreign States registered with the Federal Information Fund 
of Technical Regulation s and Standards; and  
 Duly certified Russian translations of international standards, regional standards, 
regional sets of rules, standards of foreign States and sets of rules of foreign States 
accepted by Rosstandart.44 
3.71.   At end -2015, the Ministry of Industry  and Trade estimated that about 49% of national 
standards are harmonized with international standards , including: 81.9% in electrical engineering ; 
75.5%  in electronics ; 53.7%  in mining and processing of oil and gas ; 29% in energy and heat 
engineering ; 27.5 % in engineering ; and 16.1% in  metallurgy.  
3.72.   A number of technical regulations that were adopted before the establishment of the EAEU, 
which have not been replaced by the common EAEU technical regulations, and remain in force. 
According to the authorities, a t end -June 2016, there are six such regulations; the regulation "On 
tobacco products" having been replaced by the EAEU regulation in May 2016. Among the 
remaining national technical regulations are technical regulations on: safety of inland waterway 
transp ort; safety of maritime transport; security of gas distribution networks and gas 
consumption; requirements for blood safety, its products, blood -substituting solutions and 
transfusion equipment; infusion therapy; and fire safety requirements.  
3.73.   The recogniti on of conformity assessment certificates issued in foreign countries is carried 
out in line with interstate agreements and international certification systems to which the Russian 
Federation is a member, and, in such cases, may be accepted without a mutual  recognition 
agreement. These interstate agreements and international certification systems for which the 
Russian Federation recognizes the results of conformity confirmation procedures include: the 
Geneva Agreement of 1955 on Mechanical Vehicles; the Brus sels Convention on Reciprocal 
Recognition of Proof Marks of Handguns and Cartridges; the IEC Quality Assessment System for 
Electronic Components (IECQ); the IEC System for Conformity Testing and Certification of 
Electrical Equipment (IECEE); and the IEC Sc heme for Certification to Standards for Electrical 
Equipment for Explosive Atmospheres (IECEx).  
3.74.   Since accession to the WTO to end -May 2016, the Russian Federation ha d made 74 regular 
notifications to the TBT Committee (including one supplement and one cor rigendum). The 
notifications include those relating to the Eurasian Economic Commission as well as the Russian 
Federation . At this date, the Russian Federation had yet to notify the Committee under paragraph 
C of the Code of Good Practice for the Preparati on, Adoption and Application of Standards 
contained in Annex 3 to TBT Agreement .  
3.75.   Up to end -May 2016, some WTO Members had used the TBT Committee to raise 15 
concerns relating to conformity assessment procedures, standards, and technical regulations in the  
Russian Federation.45 The Russian Federation has also used the TBT Committee to raise its own 
concerns regarding measures proposed or implemented by other Members.46 
                                                
44 WTO document WT/ACC/RU S/70, 17 November 2011, paragraph 746.  
45 Russian Federation – Draft on Technical Regulatio n of Alcohol Drinks Safety (published on 
24 October  2011) (ID 332); Russian Federation - Alcoholic Beverages Storage Technical Conditions Order 
Number 59n (ID  372); Russian Federation – Safety of light industry products (ID 390); Russian Federation – 
Measu re affecting import of Ukrainian confectionary products (ID 399); Russian Federation – Federal Service 
for Market Regulation (FSR) - New Provisions for the Mandatory Notification of Liquor Products (ID 412); 
Russian Federation – Safety of products for chil dren and adolescents (ID 418); Russian Federation – Measure 
affecting import of Ukrainian dairy products (ID 426); Russian Federation – Measure affecting imports of 
Ukrainian juice products (ID 439); Russian Federation – Measure affecting imports of Ukrain ian beer products 
(ID 440); Russian Federation – Draft of the Eurasian Economic Commission Collegium decision on amendments 
to Common sanitary -epidemiological and hygienic requirements for products, subjected to sanitary -
epidemiological supervision (contro l) (ID 452); Russian Federation - Technical Regulations on Safety of Railway WT/TPR/S/345 • Russian Federation  
 
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  3.1.9   Sanitary and phytosanitary requirements  
3.76.   At the EAEU level, the legal framework for SPS meas ures is set out in the EAEU Treaty, 
Section XI and Annex 12, (Protocol on the Application of Sanitary, Veterinary and Phytosanitary 
Quarantine Measures) and legal acts of the Russian Federation. The EAEU Commission is 
responsible for coordinating the devel opment and implementation of SPS measures by the 
member States and setting common general principles, and safety requirements for goods 
marketed within the EAEU. Under Article 59 of the EAEU Treaty: "Each Member State has the right 
to develop and implement  temporary sanitary -epidemiological, veterinary, and sanitary and 
phytosanitary quarantine measures". The principal EAEU legislation on SPS measures is contained 
in Table 3.1 6.  
Table 3.16 Principal EAEU legis lation on SPS measures at end -May 2016  
Legislation  Last amended  Description of changes  
The EAEU Treaty  June 2015  General principles for sanitary, veterinary, and 
phytosanitary quarantine measures  
Customs Union Commission 
Decision No.  299 of 28 May 2010 
"On Application of Sanitary 
Measures in the Customs Union"  
 December 2015  Most of the changes are technical. The amendments 
provided for changes in the common list of goods subject 
to sanitary and epidemiologic supervision, the common 
sanitary, epidemiolog ical, and hygienic requirements for 
goods subject to control and supervision. Some of them 
are intended to harmonize the EAEU legal framework in 
conformity with the technical regulations and common 
commodity nomenclature  
Customs Union Commission 
Decision No. 317 of 18 June 2010 
"On Application of Veterinary 
(Veterinary and Sanitary) 
Measures in the Customs Union"  
 February 2016  Changes to common veterinary requirements and common 
list of goods subject to veterinary control (supervision). 
For example, amend ments to the common veterinary 
requirements for import of live worms and their cocoons to 
the territory of the CU (Notification G/SPS/N/RUS/27), for 
feed additives for cats and dogs (Notification 
G/SPS/N/RUS/36). Moreover, the veterinary certificates 
registration procedure was specified (Notification 
G/SPS/N/RUS/43). A list of control measures was 
introduced (Notification G/SPS/N/RUS/33)  
Customs Union Commission 
Decision  No. 318 of 18 June 2010 
"On Plant Quarantine in the 
Customs Union"  February 2016  Chang es to the quarantine phytosanitary control 
procedures in the CU territory  
Source:  WTO Secretariat based on information provided by the Russian authorities . 
3.77.   The lists of goods subject to controls at the EAEU border are set out in Commission Decision 
No. 29 9 of 28 May 2010 for sanitary and epidemiological control; Commission Decision No. 318 of 
18 June 2010 for quarantine phytosanitary control; and Commission Decision No. 317 of 18 June 
2010 for goods subject to veterinary control. In addition, a number of E AEU technical regulations 
relate to SPS measures, such as requirements concern ing food and feed stuffs (Table 3.17). 
Table 3.17 Princip al EAEU legislation on technical regulations related to SPS measures at 
end-May 2016  
Legislation  In force/last amended  
Customs Union Commission Decision No. 880 of 9 December 2011 "On 
Technical Regulation of the Customs Union on safety of Food Products"  1 July 2013/June 2014  
Customs Union Commission Decision No. 67 of 9 Octob er 2013 "On Technical 
Regulation of the Customs Union on safety of milk and milk products"  1 May 2014/May 2015  
Customs Union Commission Decision No. 874 of 9 December 2011  "On 
Technical Regulation of the Customs Union on safety of grain"  1 July 2013/July 2014 
Customs Union Commission Decision No.  883 of 9 December 2011 "On 
Technical Regulation of the Customs Union on oils and fat products " 1 July 2013  
                                                                                                                                                  
Transport (TR CU No. 002/2011 and No. 003/2011) (ID 460); Russian Federation – Measure affecting import of 
Ukrainian food salt (ID 465); Russian Federation - Measure affecting the  import of Ukrainian wallpaper 
(ID 476); Russian Federation - Rules of cement certification (ID 497); Russian Federation - Implementation 
plan related to excise tax on palm oil and soda products (ID 500). Viewed at: http://tbtims.wto.org  
[June  2016].  
46 WTO TBT Information Management System. Viewed at: http://tbtims.wto.org/Default.aspx?Lang=0  
[April 2016].  WT/TPR/S/345 • Russian Federation  
 
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  Legislation  In force/last amended  
Customs Union Commission Decision No. 68 of 9 October 2013 "On Technical 
Regulation of the Customs Unio n on safety of meat and meat products"  1 May 2014  
Customs Union Commission Decision No. 88 1 of 9 October 2011 "On Technical 
Regulation of the Customs Union on marking of food products " 1 July 2013  
Customs Union Commission Decision No. 882 of 9 December 2011 "On 
Technical Regulation of the Customs Union on fruit and vegetable juice 
products " 1 July 2013/  
November 2012  
Customs Union Commission Decision No. 58 of 20 July 2012 "On Technical 
Regulation of the Customs Union on safety requirements for food add itives 
flavourings and technological aids " 1 July 2013/  
September 2014  
Customs Union Commission Decision No. 34 of 15 June 2012  "On Technical 
Regulation of the Customs Union on safety of certain types of specialized food 
products, including dietary medica l and dietary preventive nutrition " 1 July 2013  
Customs Union Commission Decision No. 317 of 18 June 2010 "On veterinary 
and sanitary requirements for goods subject to veterinary control"  1 July 2010/  
24 December  2014 
Source:  WTO Secretariat based on inf ormation provided by the Russian authorities . 
3.78.   In addition, domestic laws relating to SPS measures may apply to the extent that it does do 
not contradict EAEU Treaty and other relevant EAEU decisions. These laws have been amended 
since the accession of the Russian Federation to the WTO and on e new law was introduced 
(Table  3.18).  
Table 3.18 National SPS legislation of the Russian Federation amended or introduced 
from 2012 to end -May 2016  
Legislation  Last amende d Description of changes  
Law No.  4979-1 of 14 May 1993 "On Veterinary 
Practices"  July 2015  Changes in veterinary rules and 
accompanying documents  
Law No.  243-FZ amending Law No.  4979-1 of 
14 May 1993   The Ministry of Agriculture of the 
Russian Federation  was given the 
authority to develop and approve 
veterinary rules; introduction of 
electronic veterinary certificates; and 
introductio n of regionalization 
provisions  
Law No.  52-FZ of 30 March 1999 "On the 
Sanitary and Epidemiological Well -Being of the 
Population"  November 2015  Technical changes  
Law No.  29-FZ of 2 January 2000 "On the 
Quality and Safety of Food Products"  July 2015  Technical changes  
Law No.  206-FZ of 21 July 2014 "On Plant 
Quarantine"  
 July 2015  Changes  concerning the division of the 
compet ences between the authorized 
bodies  
Source:  WTO Secretariat based on information provided by the Russian authorities . 
3.79.   The CU Commission Decision No. 721 of 22 June 2011 "On Application of International 
Standards, Guidelines and Recommendations" provides t hat, in cases in which the CU Commission 
(now the Eurasian Economic Commission) or national authorities have not established mandatory 
requirements in the veterinary, phytosanitary, sanitary epidemiological, or hygienic spheres, the 
member states may apply  standards, recommendations, and guidelines of the OIE, IPPC, and the 
Codex Alimentarius. Similarly, if EAEU veterinary, phytosanitary and sanitary epidemiological and 
hygiene mandatory requirements in effect in the territory of the EAEU are more stringent  than 
relevant international standards, guidelines and recommendations - and in the absence of scientific 
justification of risk to human, animal, or plant life or health - relevant international standards, 
guidelines, and recommendations, or parts thereof,  may be applied.47 
                                                
47 WTO document WT/ACC/RUS /70, 17 November 2011, paragraph  830. WT/TPR/S/345 • Russian Federation  
 
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  3.80.   Within the Russian Federation,  the authorit ies for SPS measures are:  
 The Federal Service for Surveillance on Consumer Rights Protection and Human 
Wellbeing ( Rospotrebnadzor ) is the Federal agency that formulates and enforces State 
policy and legislation in the field of consumer rights protection, as well as the 
development and approval of the state sanitary and epidemiological guidelines and 
hygienic norms. In addition, Rospotrebnadzor is responsible for : 
o carrying out federal sanitary and epidemiological surveillance and Federal 
monitoring in the field of consumer rights protection ;  
o control of safety of food products and other producti on for securing human health;  
o conduct ing sanitary and epidemiological evaluation of pesticides and 
agroche micals ; 
o harmonization of sanitary and hygienic  requirements with international standards  
bodies; and  
o sanitary quarantine control at the border . 
 The Ministry of Agriculture (MOA) is the competent authority for veterinary and 
phytosanitary issues.  Within the  Ministry, t he Federal Service for Veterinary and 
Phytosanitary Supervision (Rosselkhoznadzor) is agency responsible for; 
o the implementation of EAEU and domestic SPS measures related to animal health, 
quarantine and protection of plants, use of pesticides and agrochemicals, residues  
of antibiotics  in non -processed food products, measures applicable in the 
production of feed for the protection of animal and human health a s well as 
protection of humans from zoonotic diseases; and  
o enforcing measures related to  plant and animal health and life as well as food 
safety at the bor der of the Russian Federation.  
3.81.   The Russian Federation is a member of the Codex Alimentarius, and the World Organisation 
for Animal Health (OIE), and a contracting party to the Internationa l Plant Protection Convention 
(IPPC). The WTO enquiry point for SPS measures is the Russian Information Center on 
Standardizati on, Certification and Overcoming Technical Barriers to Trade . 
3.82.   In order to ensure the traceability of the application of SPS appli cation, Rosselkhoznadzor 
developed and implementsd ten different state data information systems, each of which serves a 
separate function and which interact with each other (Table 3. 19). In addition, Rospotrebnadzor 
has set up an information system for con sumer protection, which provides information on 
violations of technical regulations and mandatory requirements for food products.48 
Table 3.19 State information data systems for traceability of veterinary and 
phytosanitary measures, 2016  
Name of 
information 
system  Description  
AGRUS/AGRUS 
FITO Automatization of veterinary and phytosanitary surveillance on external borders of the 
EAEU  
MERCURY  Electronic certification of consignments supervised by state veterinar y surveillance, 
traceability of transactions and movement in the territory of the Eurasian Economic 
Union  
VESTA  Collection, transfer and analysis of information for carrying out supervised laboratory 
testing during research in the area of diagnostics, foo d safety, food and feed quality, 
and veterinary drugs  
IRENA  Registration of pharmaceuticals, fodder additives and GMO feed  
ASSOL  Electronic report collection from institutions accountable to Rosselkhoznadzor  
HERMES  Automatization process of the pharmace utical licensing activity and pharmaceuticals 
production for animal treatment  
                                                
48 Viewed at: http://zpp.rospotrebnadzor.ru/  [June 2016].  WT/TPR/S/345 • Russian Federation  
 
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  Name of 
information 
system  Description  
ZERBER  Recording and control of legal actions in the area of veterinary surveillance  
SIRANO  Authorities' notifications for achievement of effectiveness and completion of veter inary 
control and surveillance measures  
VETIS PASSPORT  Administration of single use profile of the state information system services in the 
veterinary sphere of the Rosselkhoznadzor  
DUMA  Automatization of the correspondence process of Rosselkhoznadzor  
Source:  WTO Secretariat based on information provided by the Russian authorities . 
3.83.   Information on import requirements for particular products is available for importers and 
countries exporting to the Russian Federation on Rosselkhoznadzor's official website .49 The list of 
countries and establishments eligible to import products into the Russian Federation is also 
published on this website. Drafts of technical regulations and other documents of the Eurasian 
Economic Commission (EEC) are available on the EEC we bsite.50 The registry of products subject 
to state registration is available on the official website of Rospotrebnadzor.51  
3.84.   According to CU Commission Decision No. 317, all goods included in the list of goods subject 
to veterinary control are subject to thre e requirements: (i) the exporting establishment has to be 
included in the Registry of Establishments authorized to export to the CU; (ii) the goods must be 
accompanied by a veterinary certificate; and (iii) an import permit must be issued from an 
establish ment in the Registry. As from 1 July 2010, imports of products subject to veterinary 
control are required to come from establishments approved by the EAEU parties and included in 
the Common Registry.  
3.85.   Under CU Commission Decision No. 317 of 18 June 2010 "On veterinary and sanitary 
requirements for goods subject to veterinary control" , imports of regulated products from third 
countries into the EAEU are permitted for exporting enterprises included in the register of 
organizations and individuals engaged in t he production, processing and/or storage of products 
subject to veterinary control. The procedures for inclusion in the list of approved enterprises and 
individuals is set out in the Decision of the EAEU Council No. 94 of 9 October 2014 "On Regulation 
on Common System of Joint Inspections of Objects and Sampling Goods (Products), Subject to 
Veterinary Control (Surveillance)". If the system of supervision in a third country has been 
satisfactorily audited as being equivalent to that of the EAEU, then establi shments on the list 
provided by the authorities of that country may be included in the EAEU register. If an audit has 
not been conducted or completed, or, as a result of an audit the third country was not recognized 
as providing an equivalent level of prot ection, an establishment may be included in the register on 
the basis of joint inspections or guarantees provided by the competent authority of the third 
country. From 2013 to end -2015, 1,233 enterprises were approved for inclusion in the register.  
3.86.   During the period from accession to the WTO to end -May 2016, the Russian Federation 
made 176 notifications to the WTO on SPS measures, includin g: 49 addenda, 3 corrigenda, 
60 emergency, and 64 regular notifications. A total of ten specific trade concerns were rai sed in 
the WTO SPS Committee concerning SPS measures in the Russian Federation.52  
3.87.   At end -June 2016, measures adopted by the Russian Federation affecting the imports of live 
pigs and their genetic material, pork and pork products and certain other commoditi es from the EU 
were being examined by a panel under the WTO Dispute Settlement Mechanism (Section 2.4.1).  
                                                
49 Viewed at: http://www.fsvps.ru  [April 2016].  
50 Viewed at: http://www.eurasiancommission.org/en/Pages/default.aspx  [April 2016] . 
51 Viewed at: http://rospotrebnadzor.ru/deyatelnost/informatics  [April 2016].  
52 Import ban on live animals from the EU (ID 338); Russia's listing of export establishments (ID 341); 
Non-recognition of testing laborator ies for meat products (ID 361); Import restrictions on co nfectionary 
products (ID 368); Russia's measures on live pigs and pork products du e to African Swine Fever (ID 369); 
Russian restrictions on imports of certain types of plant products (ID 372); Russia's market access 
requirements for bovine meat in compliance with OIE requirements (ID 379);  Russia's restrictions on imports 
of fruits and  vegetables from Poland (G/SPS/N/RUS/69) (ID 380); Russia's unilateral introduction of new 
requirements for veterinary certificates (ID 381); The Russian Federation's import restrictions on processed 
fishery products from Estonia and Latvia (ID 390).  WT/TPR/S/345 • Russian Federation  
 
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  3.2  Measures Directly Affecting Exports  
3.2.1   Export procedures and requirements  
3.88.   The basic laws on export procedures and requirements of the Russian Federation are the 
Customs Code of the Customs Union  and the Law No.  311–FZ of 27 November 2010 "On Customs 
Regulat ion in the Russian Federation".  
3.89.   According to Articles 183 -184 of the Customs Code, t o export goods from the customs 
territory of the Customs Union, the carrier must present to the customs body (the FCS) a  customs 
declaration or another document permitting their export from the customs territory of the Customs 
Union, as well as the documents listed in Article 159 of the Code . Documents may be provided by 
the carrier or someone  acting on the carrier's orders.  If the goods are leaving the EAEU through a 
border post in the Russian Federation, only a declaration number is required, if they are exported 
from the EAEU through another member State, a copy of the d eclaration is required.  
3.90.   According to Article 195 of the Law No.  311–FZ, export s of goods have to take place at 
designated points of departure within the working hours of customs bodies.   
3.91.   In 2015, the Russian Federation was ranked 170th out of 189 economies  in terms of trading 
across borders with 9 documents, and 43 hours needed for exporting and a cost of US$1,125. The 
ranking for trading across borders is based on exporting iron and steel (HS 72) to Italy, and 
importing parts and accessories of motor vehic les (HS 8708) from Germany (Section 3.1.2).53 The 
authorities noted that these products do not represent overall trade in the Russian Federation. 
Furthermore, a road map for improving customs administration has been adopted to facilitate 
trade (Section 3.1. 1).  
3.2.2   Export taxes, charges, and levies  
3.92.   Article 77.2 of the Customs Code of the Customs Union states  that: "For the purposes of 
calculation of export customs duties, one applies the rates specified in the legislation of the 
member -States of the Customs Unio n for the goods included in the summary list of goods 
generated by the Commission of the Customs Union in compliance with international treaties of the 
member -States of the Customs Union regulating the issues of application of export customs duties 
for thi rd countries ". Therefore, the member States of the EAEU may apply customs duties based 
on domestic legislation. Export taxes do not apply to exports to other EAEU member States and, 
for re -exports to third countries by the other member States of goods from  the Russian 
Federation, the other member State should remit half the export tax to the Russian Federation.  
3.93.   In acceding to the WTO, the Russian Federation undertook to bind and reduce export duties 
on 703 tariff lines at the 10 digit level using a variety of duty rates and duty types –including 
simple ad valorem  duties, specific duties, compound duties, and duties based on formulae. For 495 
of these tariff lines, the export duty should be reduced to zero by the end of the implementation 
period, which ranges  from one to five years. The Russian Federation also undertook to establish 
two export quotas for wood products with in -quota export d uties of 13% and 15% (Table 3.20 ).54  
3.94.   Export duties are applied under Government Resolution No. 705 of 25 July 2014 "On the  
Changes of the Rates of the Export Customs Duties on Goods Exported from the Territory of the 
Russian Federation beyond the Borders of Countries that are Parties to Agreements on Customs 
Unions", which was last amended on 29 September 2015. Under the Reso lution, export duties are 
applied to 343 tariff lines, or subdivisions thereof, at the 10 digit level. Nine tariff lines in the 
Resolution have an export duty of zero (including gas condensate55) and other rates vary from 
1.25% for many fisheries products, up to a minimum of 80% for some wood products (Table 3.2 0 
and Section 4.1).  
                                                
53 World Bank (2015).  
54 Aggregate of HS 4403 20  110 and 4403 20  190 for 6,246,500 m3 at 13% and a ggregate of HS 4403 
20 310 and 4403 20  390 for 16,038,200 m3 at 15%.  
55 Tariff line 2709 00 100 1.  WT/TPR/S/345 • Russian Federation  
 
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  Table 3.20 Selected export duties in the Russian Federation  
Tariff line  Description  Export duty  
2711 21 000 0  Natural gas  30% 
7102 31 000 0  Natural or cultured pearls, precious or semi -precious stones, 
precious metals, metals clad with precious metal, and articles 
thereof; imitation jewellery; coin // Diamonds, whether or not  
worked, but not mounted or set  // - Non-industrial : // -- 
Unworked o r simply sawn, cleaved or brute  6.5%  
7601 20 910 0  
7601 20 990 0  Aluminium and articles  thereof // Unwrought aluminium  // -
Aluminium alloys  1.25%  
7204 49 100 0  
7204 49 300 0  
7204 49 900 0  Iron and steel // Ferrous waste and scrap; remeltin g scrap 
ingots of iron or steel  // - Other waste and scrap : // -- Other, 
Fragmentized (shredded) -- Other, in bundles// -- Other, 
other  7.5%, bnlt 
€7.5/1,000kg  
ex 4403 20 110 1  
ex 4403 20 110 2  
ex 4403 20 190 1  
ex 4403 20 190 9  Wood and articles of wood; wood charcoal // Wood in the 
rough, whether or not stripped of bark  or sapwood, or roughly 
squared  // -Other, coniferous  
- in respect of which a ta riff quota was established, in the 
presence of a licence issued by the competent body  
 13% 
ex 4403 20 310 1  
ex 4403 20 310 2  
ex 4403 20 390 1  
ex 4403 20 390 9  Wood and articles of wood; wood charcoal // Wood in the 
rough, whether or not stripped of bark  or sapwood, or roughly 
squared  // -Other, coniferous  
- in respect of which a tariff quota was established, in the 
presence of a licence issued by the competent body  15% 
4403 20 110 1  
4403 20 110 2  
4403 20 190 1  
4403 20 190 9  
4403 20 310 1  
4403 20 310 2  
4403 20 390 1  
4403 20 390 9  Wood and articles of wood; wood charcoal // Wood in the 
rough, whether or not stripped of bark  or sapwood, or roughly 
squared  // -Other, coniferous  80%, bnlt €55.2 /m3  
 
4403 20 910 1  
4403 20 910 2  
4403 20 910 3  
4403 20 910 4  
4403 20 910 9  
4403 20 990 1  Wood and articles of wood; wood charcoal // Wood in the 
rough, whether or not stripped of bark  or sapwood, or roughly 
squared  // -Other, coniferous  25%, bnlt €15/m3 
 
Note:  bnlt: but not less than.  
Source:  Government Resolution No. 705 of 25 July 2014.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.95.   According to Article 46 of the EAEU Treaty, the members of the EAEU may apply common 
non-tariff measures in trade with third countries. Such non -tariff measures include: prohibitions on 
export; quantitative restrictions on export; the exclusive right to export; authorization procedure s 
for export s, and automatic licensing for exports . However,  under Article 47 of the EAEU Treaty, 
member States may also unilaterally introduce and temporari ly apply (for up to 6 months) non -
tariff measures  in the procedure s provided for in the Protocol on Non -Tariff Measures in Relation to 
Third Countries ( Annex 7 of the EAEU Treaty ).  
3.96.   According to Annex 7 of the Treaty of the EAEU, export bans or quantitativ e export 
restrictions may only be imposed in exceptional cases listed in paragraph 12 of the Annex.  Such 
temporary export bans or quantitative export restrictions must be  approved by the EEC on the 
basis of proposals from the member States.  
3.97.   According to th e authorities, export licensing is not used to restrict the quantities exported, 
but, in line with the Russian Federation's international obligations, export licences for certain 
ozone -depleting substances and narcotics include the quantities covered by th e licence.  
3.98.   Goods which may be subject to export prohibitions, restrictions, and export licensing  are 
included in the Common List of Goods that are subject to import/export prohibitions or restrictions 
to/from the customs territory of the EAEU and are cont ained in the Decision of the Board of the WT/TPR/S/345 • Russian Federation  
 
- 68 - 
 
  Eurasian Economic Commission  No. 134 of 16 August 2012  and Decision No. 30 of 21 April 2015 , 
(Table 3.21 ).56 According to the authorities, the List is based on international treaties including: 
the Montreal Protocol  on Substances that Deplete the Ozone Layer; The Single Convention on 
Narcotic Drugs; the Convention on Psychotropic Substances, the Stockholm Convention on 
Persistent Organic Pollutants; the Basel Convention for the Control of Trans -Boundary Movements 
of hazardous Waste and their Disposal; the Convention on International Trade in Endangered 
Species  of Wild Fauna and Flora (CITES); and the Convention against Illicit Traffic in Narcotic 
Drugs and Psychotropic Substances.  
Table 3.21 Goods under export restrictions  
Basis for 
application  Product  Document name  Issuing authority  
Decision No.  
134 Section 2.1  Ozone – depleting 
substances  Licence/ conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Su pervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No. 30  
Section 2.3  Hazardous waste  Licence/ conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No. 30  
Section 2.4  Paleontological, 
mineralogical, collections 
and collectibles of bones of 
zoolites  Licence/ conclusion 
(permit)  Ministry of Industry and Trade;  
Ministry of Culture;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No. 30  
Section 2.6  Wild live animals, wild 
plants and wild crude drug  Licenc e Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No.  30 
Section 2.7  Species of wild fauna and 
flora, controlled under the 
Convention on International 
Trade in Endangered 
Species of Wild Flora and 
Fauna (CITES)  Authorization, (CITES 
certificate)  Country of provenance CITES 
administrative authority;  
Federal Service for Supervision of 
Environmental Managem ent 
(Rosprirodnadzor);  
Federal Agency of Fishery 
(Rosribolovstvo) – sturgeons, 
including sturgeon roe  
Decision No. 30  
Section 2.8  Rare and endangered 
species of wild animals and 
plants, their parts and (or) 
derivatives, included in the 
Red Book of states - 
members of the EEC.  Licence/ conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental Management 
(Rosprirodnadzor)  
Decision No. 30 
Section 2.9  Precious stones  Act of G overnment 
Regulation;  
Kimberley  Process 
Certificate  State Administration for the Formation 
of the State Fund of Precious Metals 
and Precious Stones of the Russian 
Federation, storage, dispensing and 
use of precious metals and precious 
stones (Gokhran Russia) under the 
Ministry of Finance  
Decisio n No. 30  
Section 2.10  Precious metals, commodity 
with precious metals  Licenc e Ministry of Industry and Trade  
Decision No. 30  
Section 2.11  Minerals  Licenc e/conclusion 
(permit)  Ministry of Industry and Trade;  
Federal Service for Supervision of 
Environmental  Management 
(Rosprirodnadzor)  
Decision No. 30  
Section 2.12  Narcotic Drugs, 
Psychotropic Substances 
and their Precursors  Licenc e Ministry of Industry and Trade  
Decision No. 
134 Section 
2.13  Poisonous Substances, 
other than narcotic drugs 
and psychotropic  
substances precursors  Licenc e Ministry of Industry and Trade  
 
Decision No. 30  
Section 2.17  Special technical means for 
secretly obtaining 
information  Licence/ conclusion 
(permit)  Ministry of Industry and Trade  
Federal Security Service of the 
Russian Fe deration  (FSB)  
                                                
56 Eurasian Economic Commission online information. Viewed at:  
http://www.eurasiancommission.org/en/Pages/default.aspx  [April 2016].  WT/TPR/S/345 • Russian Federation  
 
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  Basis for 
application  Product  Document name  Issuing authority  
Decision No. 30  
Section 2.19  Cryptographic devises  Licence/ conclusion 
(permit)  Ministry of Industry and Trade Federal 
Security Service of the Russian 
Federation  (FSB)  
Decision No. 30  
Section 2.20  Cultural Values, documents 
the national ar chives, the 
original archive  Licence/ conclusion 
(permit)  Ministry of Industry and Trade  
Ministry of Culture  
 
Decision No. 30  
Section 2.21  The organs and human 
tissue, blood and its 
components, the samples of 
human biological material  Licence/ conclusion 
(permit)  Ministry of Industry and Trade ; 
Federal Service for Surveillance in 
Healthcare (Roszdravnadzor);  
Ministry of Health  
Decision No. 30  
Section 2.22  Service and civilian 
weapons, their main 
(composite) parts and 
cartridges  Licence/ conclusion 
(permi t) Ministry of Internal Affairs (MVD)  
Decision No. 30  
Section 2.23  Information about mineral 
resources by region and 
fields of fuel and energy and 
mineral complex  Licenc e Ministry of Industry and Trade  
Decision No. 
134 
Section 2.26  Natural gas  Licenc e Ministry of Industry and Trade;  
Ministry of Energy  
Note:  Decision No. 30: Decision of the Board of the EEC No. 30 of 21 April 2015 "On non -tariff regulatory 
measures " (last amended on 2 June 2016) . 
 Decision No. 134: Decision of  the Board of the EEC No. 1 34 from 16 August 2012 "On regulations 
acts in the area of non -tariff regulation" (last amended on 2 June 2016) . 
Source:  Authorities  of the Russian Federation.  
3.99.   In order to monitor exports of certain goods, the EEC may impose automatic licensing 
requiremen ts which may be on the initiative of the Commission or of a member State. A list of 
goods requiring automatic licensing, as well as the effective period of such automatic licensing, is 
determined by the Commission.  
3.100.   An annex to the Protocol to the EAEU Trea ty on Non -Tariff Regulatory Measures in Relation 
to Third Countries specifies  the procedure for issuing licenc es and permits for the export  and 
import  of goods included in the common list of goods subject to non -tariff regulatory measures in 
trade with thi rd countries.  The period of validity of a single -use licen ce may not exceed 1 year 
from its effective date  and may be limited to the duration of a foreign trade contract (agreement) , 
or to the validity period of the document serving as the basi s for the is suance of the licenc e. 
3.2.4   Export finance, insurance, and guarantees  
3.101.   The EAEU Treaty provides for the application of  joint measures to promote exports of 
goods originating from the member States to third -party markets ; the indicative list includes: 
export cred it and export insurance  facilities, "made in the EAEU" labelling, and coordinated 
exhibition , advertising and branding activities .57 A draft Decision "On measures for export 
development"  is undergoing approval at the EEC.58 
3.102.   Since 2012, legal and institutiona l reforms intended to boost Russian exports have largely  
been framed by the "Support for Exports and Access to Foreign Markets" road map59 and the 
government programme on "Development of Foreign Economic Activity"  (2013 -2018).60 Devised  
as part of a broader initiative to modernize the Russian economy and to improve the investment 
climate, the road map and the programme  stipulate various measures aimed at increasing both 
the number of Russian exporters and the volume of non -raw material exports.61 Besides 
overs eeing implementation efforts, the Ministry of Economic Development (MED) is elaborating 
specific sub -programmes for the subjects of the Russian Federation, setting out possible activities 
and performance indicators .  
                                                
57 EAEU Treaty, Article 41.  
58 Council of the EEC Decision No. 34 of 28 May 2015.  
59 Order of the Government of the Russi an Federation No. 1128-r of 29 June 2012 and its subsequent 
amendments.  
60 Order of the Government of the Russian Federation No. 378 -r of 18 March 2013.  
61 Chronological accounts of the road map's implementation (in Russian) can be viewed at: 
http://government.ru/roadmaps/113/events  and http://www.exportcenter.ru/road_map .  WT/TPR/S/345 • Russian Federation  
 
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  3.103.   Public funds  in support of Russian businesses seeking to originate or increase  export sales 
are made available at both the federal and sub -federal levels of government . The executive 
authorities of the subjects of the Russian Federation annually compete for federal co -financing of 
their respect ive SME support programmes, which may have an export assistance component.62 
Although the types of support and eligibility criteria  applied under sub-federal programmes are not 
standardized , the MED estimates that most regional authorities tend to assist re sident exporters 
through grants or subsidize d interest payments on export -related loans . Statistics on sub -federal 
export support disbursements are not collected by the federal authorities.  
3.104.   At the federal level,  the state corporation Vnesheconombank (VEB)  is involved in export 
support as part of its broader  mandate to foster the diversif ication  of the Russian economy, 
enhance its competitiveness , and stimulate inward and outward investment.63 VEB support s and 
develop s Russian export trade  and Russian capacit y to respond to international business 
opportunities  both directly and through its specialized subsidiaries, including Eximbank of Russia , 
the Export Insurance Agency of Russia (EXIAR) , and the Russian Export Centr e (REC).64 Certain 
export support activitie s may also involve a former VEB subsidiary, t he Russian Direct Investment 
Fund (RDIF), which was converted into a non-public  corporation wholly owned by the State in June 
2016.65 
3.105.   Asset contributions, made pursuant to resolutions of the Federal Government, c onstitute 
the bulk of VEB's charter capital. The Ministry of Finance may also make purpose -specific asset 
contribution s, which are recorded in VEB's additional paid -in capital . The Ministry of Finance 
contributed R ub 62.6 billion to VEB's paid-in capital at end -2011 and Rub 62 billion at end -2012, 
for the establishment of the RDIF. In December 2014, VEB also received a charter capital 
contribution of R ub 30 billion.66 During most of the period under review, VEB's income and 
expenses  were not included in its income tax base , which had a significant impact on  its effective 
income tax rate .67  
3.106.   The lending capacity of Eximbank of Russia was also boosted during the period under 
review. In 2014,  its charter  capital was increased by a Rub 1.7 billion contribution fro m VEB68; 
another increase took place in June 2015 by way of a R ub 10 billion appropriation from the federal 
budget.69 At 1 January 2016, the charter capital of Eximbank of Russia amounted to 
Rub 12.7 billion . In 2015, Eximbank of Russia also obtained a US$10 0 million loan from a foreign 
bank, under a guarantee from the Ministry of Finance.70  
3.107.   VEB funded EXIAR's initial charter capital ( Rub 30 billion ) in 2011, and increased it by 
Rub 1.38 billion in 2014 and R ub 12.15 billion in 2015 . EXIAR may also finance it s activities with 
borrowed funds, which must not exceed 50% of its own funds. According to the authorities, EXIAR 
did not receive any funding from the federal budget during the period 2012 -15. In 2012, the 
Government of the Russian Federation provided (thr ough VEB) a state guarantee, with a liability 
limit of US$10 billion valid until end -2032, to secure the  fulfilment of obligations under insurance 
and reinsurance contracts concluded by EXIAR.71 
                                                
62 Outlays from the federal budget may finance up to 95% of expenditure commitme nts made by the 
subjects of the Russian Federation under SME support programmes.  The 2016 federal budget allocation for 
SME support , including export assistance,  is Rub 11 billion.  
63 VEB is a non -commercial bank governed by Law No. 82 -FZ (17 May 2007) and Government 
Resolution No. 1007 -r (27 July 2007) and their subsequent amendments.  
64 An overview of the VEB group of companies is available at: 
http://veb.ru/en/about/vebgroup/index.php . 
65 Law N o. 154-FZ of 2 June 2016 .  
66 Government Resolutions No. 2526 -r of 12 December 2014 and No. 1417 of 18 December 2014.  
67 VEB (2012, 2013, and 2014).  
68 In 2014, VEB transferred ownership of Eximbank of Russia (except for one share) to EXIAR; in 2016, 
that one sh are was transferred to the REC.  
69 Annual appropriations from the federal budget may be provided to VEB (in the form of asset 
contributions) for the acquisition of shares in EXIAR in order to increase the charter capital of Eximbank of 
Russia in 2015, 2016 and 2017 (Resolution No. 326 of 8 April 2015).  
70 Eximbank of Russia  (2015).  
71 Initially, EXIAR's aggregate insurance  and reinsurance  obligations were capped at ten times the 
amount of its paid -in capital or Rub 300 billion , whichever was greater; this limi t was increased to the state 
guarantee's full amount in March 2016.  WT/TPR/S/345 • Russian Federation  
 
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  3.108.   According to the authorities, VEB's subsidiaries operate under  the standard taxation 
regime . A VAT exemption for insurance services related to export credits and investments applies 
to all commercial insurance companies , including EXIAR (Section 3.3.1.2).  
3.109.   In principle, VEB and its subsidiaries operate on commercial p rinciples, offering export  
finance and risk mitigation services on a recovery basis. Their activities mainly address financing 
gaps where the private sector may not be able to fully respond to the needs of Russian businesses  
(Table  3.22). According to the authorities, VEB and its subsidiaries do not follow uniform  directives 
on mi nimum Russian content and secto ral or geographical priorities ; separate legal acts and/or 
internal documents may be established to guide the operations of each entity . Details on t he 
eligibility criteria for export support applied by each entity were not made available.  
3.110.   Both VEB and Eximbank of Russia provide credits and guarantees in support of export 
transactions and the development of Russian businesses' export potential. VEB mai nly targets 
large-scale technology and innovative projects valued at or above US$1.7 million; at end -2012, its 
guarantee obligations towards beneficiaries were fully secured by a state guarantee of the Russian 
Federation.72 Unlike its indirect owner (VEB), Eximbank of Russia is a credit institution subject to 
the Russian banking legislation and regulation by the Central Bank of the Russian Federation 
(CBR).73 VEB and Eximbank of Russia  have been awarded federal -budget subsidies, since 2012 
and 2015 respective ly74, as partial compensation for losses incurred on loans in support of Russian 
high-technology  exports.75  
3.111.   VEB's priority sectors for export support include: aeronautics and space exploration; 
shipbuilding ; electronics ; nuclear power; heavy, transport, pow er and special machinery; 
metallurgy (special steels) ; wood processing ; defence industry; agro-industr y; strategic computer 
technologies and software ; information and communication systems;  and medical equipment and 
pharmaceuticals.76  
3.112.   The export credit and  guarantee facilities provided by Eximbank of Russia are primarily 
targeted at the suppl y of industrial goods, works , and non-financial  services . Typically, the cost of 
Russian -sourced inputs (including labour) must represent  at least 30% of the export con tract's 
overall value.77 Unlike commercial banks, Eximbank of Russia cannot provide export finance for 
raw materials.  
Table 3.22 Main export finance, insurance and guarantee facilities , 2016  
Facility  Features  
Financing  
Line of credit  Financing facility arranged with a foreign bank for on -lending to buyers of Russian 
exports. Maximum time -frame: ten years. On -lending amount: up to 100% of the 
value of the contract (less any down payment) and/or up to 100% of th e 
premium on an insurance policy concluded with EXIAR  
Confirmed letter of credit  A second guarantee on a letter of credit issued by the foreign buyer's bank that 
commits it to payment of the obligations deriving from the export contract. 
Maximum time -frame: five years. Confirmed credit amount: up to 100% of the 
value specified in the letter of credit  
Loan Loans for up to five years and up to 85% of the export contract's value can be 
arranged with the supplier (exporter); financing for costs incurred overs eas may 
not exceed 30% of the export contract's value. Expected proceeds from the 
export contract may be used as collateral. Loans to foreign buyers can be 
arranged for up to ten years; whenever the credit period does not exceed two 
years and/or there is i nsurance coverage by EXIAR, foreign buyers may borrow up 
to 100% of the value of the export contract  
                                                
72 VEB ( 2012). 
73 In 2015, Eximbank of Russia cancelled its licences for brokerage, depositary and securities 
management  activities, as it was not active in these areas.  
74 Government Resol ution No. 1302 (13 December 2012) and Government Order No. 497-r 
(24 March  2015). 
75 The list of eligible goods, works and services is set out in Ministr y of Industry and Trade Order 
No. 1809 (2 July 2015), as amended by Order No. 3988 (10 December 2015).  
76 Government Resolution No. 1007 -r of 27 July 2007 and its subsequent amendments.  
77 Eximbank of Russia online information. Viewed at: http://eximbank.ru/eng/credits/ .  WT/TPR/S/345 • Russian Federation  
 
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  Facility  Features  
Co-investment  Participation in Russian direct investments and acquisition of assets overseas in 
order to make the Russian economy more competitive  
Guaran tees (Bonds)a 
Tender participation guarantee  Covers the obligations of Russian businesses participating in tender competitions 
conducted by potential foreign buyers.  
Advance repayment guarantee  Enables Russian exporters to assure foreign buyers of the re fund of an advance 
payment received on a contract, if the former fail to fulfil their contractual 
obligations  
Due performance guarantee  Enables Russian exporters to provide foreign buyers with surety for the proper 
fulfilment of their contractual obligati ons 
Payment guarantee  Secures exporters' payment obligations to counterparties, as specified in their 
contracts  
Counter guarantee  A second guarantee on any type of direct guarantee issued by a bank to a Russian 
exporter  
VAT refund guarantee  Useful for a ccelerating VAT refunds in the Russian Federation. Secures tax 
collection in the event of excessive VAT refunds made before completion of the 
authorities' tax audit  
Insuranceb 
Buyer credit insurance  Protects lenders against default on a loan provided to an overseas borrower (the 
buyer or the buyer's bank) for the purchase of goods, works or services exported 
from the Russian Federation under contract. Covers losses resulting from 
commercial and political risks  
Confirmed letter of credit 
insurance  Protect s a lender that acts as an additional guarantor to a letter of credit issued 
by the foreign buyer's bank. Covers losses resulting from commercial and political 
risks 
Export factoring insurance  Insures banks discounting exporters' receivables against the r isk of non -payment 
by foreign buyers. Covers up to 90% of losses resulting from commercial and 
political risks  
International leasing insurance  Covers individual deliveries under leasing agreement to overseas lessees against 
losses (non -payment of leasing payments, loss or damage of leased items) 
resulting from commercial and political risks  
Working capital financing 
insurance  Protects a Russian bank from commercial risks that may trigger default on a loan 
granted to enable a Russian exporter to fulfil an export contract.  
For lending to  Russian SMEs  (or a business with a nnual turnover not exceeding 
Rub 2 billion) fulfilling a non -raw material export contract, EXIAR established a 
risk-sharing programme with accredited banks.c Insured portion: 70% of the 
value of the loan and accrued interest (expandable to 90% upon satisfactory risk 
assessment by EXIAR). Premium: 1.5% of the insured amount (annual flat rate). 
Russian content must constitute at least 20% of exports' total value . 
For lending to Russian corpora tions fulfilling a non -raw material export contract, 
the insured portion can reach up to 90% of the value of the loan and accrued 
interest. Premium: according to risk assessment. Russian content must constitute 
at least 20% of exports' total value  
"Financ ing the development of 
export -oriented production" 
insurance  Protects a bank from commercial risks that may trigger default on a loan granted 
to enable development of export -oriented production for expansion of exports 
from the Russian Federation  
Supplier  credit insurance  Covers individual deliveries (goods, works or services) to an overseas customer 
made on deferred payment terms against losses resulting from commercial and 
political risks. Optional coverage includes insurance against: contract cancellati on 
by the buyer; non -return (loss or damage) of exported goods/equipment; loss of 
security deposits; and a wrongful call on an export contract -related guarantee by 
the respective counterparty  
Short -term receivables 
insurance  Covers recurrent deliveries on  deferred -payment terms (up to 360 days) to 
regular overseas customers against losses resulting from commercial and political 
risks 
Russian investments overseas 
insurance  Protects Russian investments overseas (equity or credit transactions) against 
losses  resulting from political risks  
a Guarantee support provided by VEB  is backed by the Government of the Russian Federation 
(represented by the Ministry of Finance) ; such guarantees may cover up to 85%  of an export 
contract 's value . As from end -2014, the Go vernment of the Russian Federation no longer provides 
state guarantees through Eximbank of Russia.  
b The typical insurance coverage for political and commercial risk s in export  transaction s is 95% and 
90% of losses , respectively . As from 2014, EXIAR may offer 100% coverage for political and 
commercial risks on a case -by-case basis . 
c The list of EXIAR -accredited banks is available at: 
https://www.exiar.ru/en/export_support_ msp/attract_funding/banks.php . 
Source:  Eximbank, EXIAR, and VEB online  information. Viewed at: http://eximbank.ru/credits ; 
http://www.exiar.ru/en ; and http://www.veb.ru/en/strategy/export . 
3.113.   At end -2014, VEB's  export loans portfolio was Rub 53.4 billion, up from R ub 14.5 billion at 
end-2012. Over the same period, its portfolio of guarantees issued in support of Russian export s WT/TPR/S/345 • Russian Federation  
 
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  increased from R ub 47.9 billion to Rub 206.5 billion. VEB's Development Strategy envisages 
increasing the export loans and export guarantees portfolios to R ub 500 billion and R ub 250 billion, 
respectively, by the end of 2020.78 According to the most recen t consolidated financial statements , 
export and pre -export credits  extended by VEB and its subsidiaries totalled R ub 100.9 billion at 
end-2015.79 
3.114.   The loans portfolio of Eximbank of Russia increased from R ub 7 billion at end -2012 to 
Rub 10.4 billion  at end -2014, whereas its portfolio of guarantees contra cted from Rub 1.3 billion to 
Rub 84.3 million.80 According to the auditor's report on Eximbank of Russia's financial statements , 
the loans portfolio further increased to R ub 22.1 billion at end -2015, of which 5 1.7% were credits 
guaranteed by the Government of the Russian Federation and 11% were credits with EXIAR 
coverage. At end -2015, Eximbank of Russia's portfolio of guarantees had decreased to 
Rub 63.1 million. The audited financial statements also recognized  an expense of R ub 87.8 million 
for funds provided at below -market interest rates in the course of 2015 (up from R ub 13.4 million 
in 2014).81 According to the authorities, this expense entry reflected "rights transferred to third 
parties in respect to the c ommitments outstanding under the loans". An overview of export 
projects financed by Eximbank of Russia in 2015 is presented in Chart 3.2.  
Chart 3.2 Eximbank of Russia:  export finance by geographic market and i ndustry, 2015a 
Europe
47%
CIS
32%Asia
12%Latin America
7%North America
2%
Electronic 
equipment
8%Other 
4%
Metallurgy
18%Aircraft 6%
Chemicals 
27%
Railway 
transport & 
equipment
27%Wood 
processing
6%Chart 3. Eximbank of Russia: export finance by geographic market and industry, 2015
Construction of 
industrial 
facilities
4%Geographic market Industry
Total value of export contracts supported: Rub 120 billion
Source:  Auditor's report on Eximbank of Russia's annual accounting (financial) statements for 2015 (2016).
 
Source:  Auditor's report on Eximbank of Russia's annual accounting (financial) statements for 2015 
(April 2016).  
3.115.   EXIAR  provides a range of insurance products  to mitigate risks related to export finance 
and investment  overseas. The holders of EXIAR insurance policies can deduct expenditures on 
premiums from their corporate tax base and are deemed compliant with foreign exchange  
repatriation requirements, provided that they have opted to receive any policy -related 
indemnification on a bank ac count .82 The CBR  treats an EXIAR  insurance policy as a first-class 
securit y, which allows Russian -incorporated credit institutions to benefit from a more favourable 
provisioning regime (a liquidity advantage).83  
                                                
78 VEB (2014).  
79 Auditor’s report and cons olidated financial statements of state corporation "Bank for Development and 
Foreign Economic Affairs (Vnesheconombank)" and its subsidiaries for the year ended 31 December 2015  
(April  2016). 
80 Eximbank of Russia (2012 and 2014).  
81 Eximbank of Russia (2015 ).  
82 Law No. 245 -FZ of 19 July 2011.  
83 EXIAR online information. Viewed at:  
http://www.exiar.ru/en/products/for -banks/banks_advantages.php .  WT/TPR/S/345 • Russian Federation  
 
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  3.116.   In 2014, EXIAR insured export contracts worth  US$3.9 billion, up from US$463.1 million in 
2012. Over the same period, gross premiums written increased  from US$0.4 million to 
US$23.5  million and the number of insured exporters rose from 12 to 112. In 2014, the majority 
of insurance and reinsurance con tracts concluded by EXIAR were short-term (less than two years ), 
with corporate and bank exposure  risks accounting for 83% and 11% of the overall portfolio, 
respectively; one overseas investment insurance contract was also concluded . The main 
destinations of EXIAR -insured Russian exports were the CIS, Europe and Latin America 
(Chart  3.3).  
Chart 3.3 Export insurance by geographic market  and industry, 2014  
CIS
67%Latin America
14%Western Europe
12%Eastern Europe
5%Asia
2%
Fertilizer
18%
Metallurgy
17%Ships & vessels
16%Aircraft 3%
Chemicals 
& related
7%Train & railway 
equipment
4%Animal & plant 
products
3%
Other industries, 
work or services
12%Chart 3. [EXIAR] Export insurance by industry and geographic market, 2014
Power and 
electrical 
engineering
19%Geographic market Industry
Total value of export contracts insured: US$3.9 billion 
Source:  Exiar, Annual report (2014).
 
Source:  EXIAR, Annual Report  2014.  
3.117.   The Russian Direct Investment Fund ( RDIF) is a US$10 billion sovereign wealth fund 
established  in 2011  to make private equity  co-invest ments, on commercial terms,  in companies 
and projects that have the potential to moderniz e and diversify the Russian economy.  In all 
project s, the RDIF's equity share may not exceed 50% . The RDIF has allocated some 
Rub 15 billion  for equity investments in medium -sized, non-energy companies with export 
potential.84  
3.118.   Having decided to adopt a holistic approach to providing financial and non -financial support 
to Russian exporters, the authorities set up the Russian Export Centre (REC)  as a single window in 
2015.85,86 Besides matching customers with the appropriate support facilities, the REC may assist 
entrepreneurs to: carry out market research, fin d partners, participate in international tenders,  
structur e an export project, conduct negotiations, and draw up an export contract. The REC's  
mandate also includes acting as an interface between government and business, to ensure that 
legislative initiati ves and new facilities respond to the needs  of exporters . According to the 
authorities, the REC has autonomy to set the fees for its export support services; it has not 
received any funding from the federal budget to date.  
3.119.   Russian exporters of industrial  products were eligible for a federal subsidy equal to two -
thirds of their interest payments on loans obtained from Russian credit institutions and VEB  until 
November 2013 .87 Between  November 2013  and December 2015 (when it was discontinued),  this 
partial com pensation  mechanism was available only to Russian exporters of military -use industrial  
                                                
84 RDIF online information. Viewed at: http://www.rdif.ru/Eng_fullNews/1453/ .  
85 Law No. 185-FZ of 29 June 2015.  
86 The REC 's charter capital , amounting to RUB 3 billion , was paid with VEB funds.  
87 Government Resolution  No. 357 of 6 June  2005, abrogated  by Government Resolution  No. 961 of 
25 October 2013.  WT/TPR/S/345 • Russian Federation  
 
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  products.88 The granting of the subsidies was administered by the Ministry of Industry and Trade 
(MIT); a limit on their aggregate amount was set annually in the federal budget.89  
3.2.5   Export promotion and marketing assistance  
3.120.   In addition to the  REC (Section 3.2.4), international market expansion services  for Russian 
entrepreneurs are offered by the MED, including through 54 overseas trade representations and 
117 intergovernmen tal commi ttees on economic and scientific cooperation . The MED is also 
involved in the deployment of domestic support infrastructure for export -oriented SMEs, and the 
elaboration of service delivery requirements and relevant performance indicators . In May 2016 this 
infrastructure comprised 37 regional SME support centres and 53 regional integrated centres .90 
According to the authorities, the support centres provide non -financial services free of charge ; 
their activities are co-financed by the federal and sub -federal budgets , with the former accounting 
for up to 95%  of the funding.  
3.121.   The range of export promotion and marketing assistance activities includes the provision of 
trade and market prospect s information , training seminars , personalized advisory services , and 
coordination and facilitation of Russian  companies' participation in international trade fairs.  The 
overseas trade representations elaborate, on an annual basis, a guide to doing business and a 
review of developments in the host economy; both publica tions are downloadable at the MED's 
integrated foreign economic information portal.91 The MED, through the overseas trade 
representations, also organizes business missions  that bring together Russian business and 
academi a representatives with potential fore ign partners .92 Furthermore, the MED has concluded 
cooperation agreements  with the executive authorities of 63 subjects of the Russian Federation , to 
assist them in the planning and implementation of international business development  activities for 
sociall y important local companies or projects, on the basis of mutually agreed terms set out in a 
"project passport".  
3.122.   An Interdepartmental Commission for Exhibition and Fair Activities , comprising inter alia  
representatives from the MIT, the MED and sectoral mi nistries, drafts annually a list of overseas 
exhibitions and fairs  in which Russian companies and associations may participate with partial 
funding from the federal budget.93 In the selection process, the Commission takes account of the 
competitive potentia l of the products and technologies , as well as the priority directions of the 
Russian economy . The final list of overseas events and the budget ary appropriation for the co -
financing of Russian representations  are approved by decree of the Government of the  Russian 
Federation. During the period under review, the budgetary appropriations amounted to: 
Rub 444.4 million  in 2012; R ub 294.4 million  in 2013; R ub 104 million  in 2014; R ub 76.1 million in 
2015; and R ub 104.2 million in 2016.  
3.3  Measures Affecting Produc tion and Trade  
3.3.1   Taxes  
3.3.1.1   Overview  
3.123.   During 2012 -2016, besides making adjustments to certain tax rates and tax bases , the 
authorities took steps towards easing the administrative burden of tax compliance. Tax 
calculations and record keeping  were made simpler by t he introduction of standard templates and 
the trimming of requisite supporting documentation. At the same time, the approval of various 
privately developed software solutions facilitated electronic tax filing and data submission ; 
                                                
88 Whenever the interest rate on the loan exceeded the CBR's refinancing rate, the latter applied in the 
subsidy's calculation; for loans in foreign currency, the maximum subsidy amount w as calculated on the basis 
of an annual interest rate of 9%.  
89 Aggregate federal subsidy limits were as follows: 2012, Rub  3 billion ; 2013, Rub  825 million ; 2014, 
Rub 2.09 billion; and 2015, Rub  2.51 billion . Information on actual disbursements was not ava ilable.  
90 The regional integrated centres, formerly known as European information and consulting 
(correspondent) centres , are members of the Enterprise Europe Network . 
91 Online information. Viewed at:  http://www.ved.gov.ru/exportcountries/businessguide/  and 
http://www.ved.gov.ru/exportcountries/economics_review/ .  
92 The MED publishes the programme of business missions  for the coming year by December of the 
current year.  
93 MIT Order No. 374  of 2 December 2008 . WT/TPR/S/345 • Russian Federation  
 
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  according to the authoriti es, electronic submission constituted 64.9% of total tax filings in 2015 
(up from 49% in 2012) . Procedural innovations included a shift towards risk -based tax audits and 
recourse to administrative review as a mandatory  step in the dispute resolution mechan ism.  
3.124.   The share of consolidated budget revenues attributable to the oil and gas segment 
decreased from 27.5% in 2012 to 21.8% in 2015. The main sources of non -hydrocarbons 
revenues included VAT, personal income tax, and corporate income tax. Taxes on impor ts 
accounted for 11.4% of non -hydrocarbons revenues in 2015, down from 14.4% in 2012; import 
duties contributed 2.7 % and 4.3%, respectively (Table 3.23). 
Table 3.23 Consolidated budget revenue, 2012 -15 
(Rub billion) 
 2012  2013  2014  2015  
Total revenues (incl. extra -budgetary funds)  23,435.1  24,442.7  26,766.1  26,922.0  
 Hydrocarbons revenues  6,453.2  6,534.0  7,433.8  5,862.7  
 Non-hydrocarbons revenues  16,981.9  17,908.6  19,332.3  21,059.4  
   Import duties  732.8  683.8 652.5  565.2  
   VAT 3,545.8  3,539.0  3,931.7  4,233.6  
    VAT (domestic)  1,886.1  1,868.2  2,181.4  2,448.3  
    VAT (imports)  1,659.7  1,670.8  1,750.2  1,785.2  
   Excise taxesa 837.0  1,015.8  1,072.2  1,068.4  
    Excise taxes (domestic)  341.9  461.0  520.8  527.9 
    Excise taxes (imports)  53.4 63.4 71.6 54.0 
   Corporate income tax (federal)  375.8  352.2  411.3  491.4  
   Corporate income tax (sub -federal)  1,979.9  1,719.7  1,964.0  2,107.6  
   Personal income tax  2,261.5  2,499.1  2,702.6  2,807.8  
   Social contrib utions  4,103.7  4,694.2  5,035.7  5,636.3  
   Other  3,145.4  3,404.9  3,562.2  4,149.2  
a The difference between the total figure and those reported in the sub -headings is probably 
attributable to " excise taxes " on exports of natural gas.  
Source:  Ministry of Fin ance of the Russian Federation, annual data on the execution of the consolidated 
budget and the federal budget. Viewed at: http://old.minfin.ru/en/statistics/ .  
3.3.1.2   Consumption  taxes  
3.125.   EAEU member States have n ot harmonized their value -added tax (VAT) and excise tax 
regimes  beyond applying the country -of-destination principle  for imports from third countries. 
While intra -community trade is duty -free, and hence outside customs  control , it remains subject to 
VAT a nd excise taxes.94 In the Russian Federation, both taxes are payable to the federal budget 
and entail the standard registration formalities established in the tax legislation.  
3.126.   The Tax Code of the Russian Federation  stipulates that  excise taxes may be levie d on 
specific, ad valorem  or compound bas es, depending on the good.95 In the second case, the tax 
base for domestically -manufactured goods is the sale s price net of VAT, whereas imports are taxed 
on the sum of their c.i.f. value and the customs duty payable  on importation . Compound excise 
taxes are calculated on the basis of the physical volume supplied or imported  and the maximum 
retail value.96 During 2012-2016, specific taxes were levied on all excisable goods, except 
cigarettes , which were subject to comp ound taxes  (Table 3.24).97 In general, excise tax rates are 
reviewed annually; they are identical for imports and domestic ally-produc ed goods.   
                                                
94 A separate tax declaration must be submitted to the Federal Tax Service of the Russian Federation for 
the settlement of VAT and excise taxes on imports from oth er EAEU member States (Order of the Ministry of 
Finance No. 69 of 7 July 2010).  
95 Law No. 117 –FZ of 5 August 2000 , Chapter 22 . 
96 The excisable value is deemed to be the product of the maximum retail price indicated on the pack 
(retail unit) and the number of packs ( units) supplied or imported. All tobacco products sold on the Russian 
market must be labelled with a maximum retail price.   
97 Certain international agreements concluded by the Russian Federation stipulate a nominal excise tax 
on exports of natura l gas. This de facto  export tax is generally levied at the rate of 30% of the value of gas 
supplied, net of customs charges and transportation costs outside Russian territory.  WT/TPR/S/345 • Russian Federation  
 
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  Table 3.24 Excise taxes, 2012 and 2016  
(Rub) 
 Description  2012  2016 
  (from 1 July to 
31 December 2012)  (from 1 April to 
31 December 2106)  
1 Ethyl alcohol made of all types of raw materials  30.50 per 1 litre of 
absolute ethyl alcohol 
contained  102 per 1 litre of 
absolute ethyl alcohol 
contained  
2 Alcohol -containing p erfumery and cosmetic goods 
in metal aerosol packaging  0 per 1 litre of absolute 
ethyl alcohol  0 per 1 litre of absolute 
ethyl alcohol  
3 Alcohol -containing household chemical goods in 
metal aerosol packaging  0 per 1 litre of absolute 
ethyl alcohol  0 per 1 litre of absolute 
ethyl alcohol  
4 Alcohol products with volume content of ethyl 
alcohol ≤  9% (except natural wines); alcohol -
containing products (except perfumery, cosmetic 
and household chemical goods in metal aerosol 
packaging)  158 per 1 litre of 
absolute ethyl alcohol 
contained  400 per 1 litre of 
absolute ethyl alcohol 
contained  
5 Alcohol products with volume content of ethyl 
alcohol >  9% (except natural wines)  210 per 1 litre of 
absolute ethyl alcohol 
contained  500 per 1 litre of 
absolute ethyl alcohol 
contained  
6 Champagne and spark ling wines  14 per 1 litre  26 per 1 litrea 
7 Natural wines (except champagne and sparkling 
wines), cider, perry (poiré), mead  3.50 per 1 litre  9 per 1 litreb 
8 Beer with normative (standard) volume of fraction 
of ethyl alcohol ≤  0.5%  0 per 1 litre  0 per 1 litre  
9 Beer with normative (standardized) volume content 
of ethyl alcohol >  0.5% and ≤  8.6%  9 per 1 litre  20 per 1 litre  
10 Beer with normative (standardized ) volume content 
of ethyl alcohol >  8.6%  14 per 1 litre  37 per 1 litre  
11 Smoking, chewing and pipe tobacco (including 
snuff), except tobacco used as input in production 
of tobacco articles  422 per 1 kg  2,000 per 1 kg  
12 Cigars  25 per 1 piece  141 per 1 p iece 
13 Cigarillos  360 per 1,000 pieces  2,112 per 1,000 pieces  
14 Cigarettes with filter  205 per 1,000 pieces 
+ 6.5%  1,250 per 1,000 pieces 
+ 12% but not less 
than 1,680 per 1,000 
pieces  
15 Non-filter cigarettes, mouthpiece cigarettes  125 per 1,000 piec es 
+ 6.5%  1,250 per 1,000 pieces 
+ 12% but not less 
than 1,680 per 1,000 
pieces  
16 Cars with engine power ≤  67.5 Kw (90 hp)  0 per 0.75 kW (1 hp)  0 per 0.75 kW (1 hp)  
17 Cars with engine power >  67.5 Kw (90 hp) and 
≤ 112.5  Kw (150 hp)  23.90 per 0.75 kW 
(1 hp) 41 per 0.75 kW (1  hp) 
18 Cars and motorcycles with engine power >  112.5 
Kw (150 hp)  235 per 0.75 kW 
(1 hp) 402 per 0.75 kW 
(1 hp) 
19 Motor gasoline unclassifiable in classes 3 to 5  8,225 per tonne  13,100 per tonne  
20 Motor gasoline of class 3  7,882 per tonne  - 
21 Motor gasoline of class 4  6,822 per tonne  - 
22 Motor gasoline of class 5  5,143 per tonne  10,130 per tonne  
23 Diesel fuel unclassifiable in classes 3 to 5  4,098 per tonne  5,293 per tonne  
24 Diesel fuel of class 3  4,300 per tonne  5,293 per tonne  
25 Diesel fuel of class 4  3,562 per tonne  5,293 per tonne  
26 Diesel fuel of class 5  2,962 per tonne  5,293 per tonne  
27 Oil for diesel and/or carburettor (injection) engines  6,072 per tonne  6,000 per tonne  
28 Virgin ("straight -run") gasoline  7,824 per tonne  13,100 per tonne  
29 Benzene, paraxylene, orthoxylene  - 3,000 per tonne  
30 Jet kerosene  - 3,000 per tonne  
31 Intermediate hydrocarbon distillates  - 5,293 per tonne  
a The excise tax rate for sparkling wines with a protected geographical indi cation or a protected 
appellation of origin is R ub 13 per 1 litre (Tax Code of the Russian Federation, Article 193 ; viewed 
at: http://nalog.garant.ru/fns/nk/34/#block_187 ). 
b The excise tax rate f or wines (except sparkling wines) with a protected geographical indication or a 
protected appellation of origin is R ub 5 per 1 litre (Tax Code of the Russian Federation, Article 193 ; 
viewed at: http://nalog.garant.ru/fns/nk/34/#block_187 ). 
Source:  Federal Tax Service of the Russian Federation and Tax Code of the Russian Federation.  WT/TPR/S/345 • Russian Federation  
 
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  3.127.   VAT is applied  at a standard rate of 18% on the transfer  of property rights  and the supply  
of works, services  and goods, including on their importation ; wherever applicable,  the tax base  
include s excise taxes . VAT on imports from third countries is levied on the c.i.f. value plus customs 
duties and excise taxes payable upon importation.  A reduced rate of 10% applies to  certain items, 
including basic foodstuffs, children's clothing, medicines, medical devices, and certain printed 
publications (Table A3. 1). Some  supplies, including exports , are zero -rated and are thus eligible 
for VAT  refund  on inputs (Table A3.2). Exempt ions from VAT cater to social assistance and 
economic development objectives (Table A3. 3). In general , VAT return s are filed on a quarterly 
basis; as from January 2015, the Federal Tax Service  (FTS)  only accepts electronic VAT filing.98  
3.3.1.3   Corporate taxes  
3.128.   The 20 16 World Bank Doing Business  survey  ranks the Russian Federation 47th of 189 
countries on the "ease of paying taxes" indicator .99 The average time required to comply with tax 
payments  is estimated at 168 hours; the effective tax burden of Moscow -based busin esses is 
estimated at 47.1% of profit, with 8.9% attributable to profit tax, 35.6% attributable to social 
security contributions and 2.6% to other taxes.100 According to the authorities, a survey carried 
out by the Federal Tax Service in 2015 estimated the a verage time spent by taxpayers on 
preparation, filling of statements and payment of VAT, income tax and social security contributions 
at 78 hours per year.  
3.129.   The headline  rate of corporate income  (profit ) tax in the Russian Federation is set at 20% , 
comprisi ng 2% pa yable  to the federal budget and 18% pa yable  to the budgets of the subjects of 
the Russian Federation (regions) . The component payable  to the sub -federal executive authorities 
can be reduced at their discretion , typically by up to 4.5 percentage poi nts, or even waived in 
some special cases  (see below).  Russian tax residents101 are taxed on their worldwide income ; 
relief for foreign tax  paid on overseas  income may not exceed  the amount of the corresponding 
Russian tax liability.102 The tax base comprises net business  income, capital gains and passive 
income.103 Dividend  income  from Russian and foreign companies is generally tax ed at a flat rate of 
13% (up from 9% until end -2014).104  
3.130.   Corporate property tax , payable to the sub -federal (regional) budgets, applie s to 
immovable and movable assets (excluding land) recorded on taxpayers' balance sheet s as fixed 
assets .105 The regions  set the rates applicable in their respective jurisdictions, which cannot exceed 
2.2%; they may establish differentiated rates for certain  categories of taxpayers  and/or 
property .106 The Tax Code of the Russian Federation  capped the rates for public  railroads , trunk 
pipelines , power transmission lines, and facilities  constituting an integral technical component of 
such infrastructures at 0.4% in 2013; it also set out an annual schedule for this cap's gradual 
increase to 1.9% in 2018.  
                                                
98 Businesses that, over a period of three consecutive months, have not dealt in excisable goods and 
have not had aggregate revenue in excess of Rub 2 million may , upon request,  be exempt ed from VAT -related 
taxpayer  obligations for th at year. 
99 The World Bank  Doing Business  report defines taxes broadly to include all mandatory contribu tions to 
government and local authorities, and applies them to a standardized corporation for comparison among 
different countries.  The economy profile of the Russian Federation is accessible at: 
http://www.doingbusiness.org/data/exploreeconomies/~/media/giawb/doing%20business/documents/profiles/
country/RUS.pdf?ver=3 .  
100 In St. Petersburg, the effective tax burden is est imated at 46.8% of profit, with the following 
breakdown: profit tax, 9%; social security contributions, 35.6%; and other taxes, 2.2%.  
101 A legal person is a Russian tax resident if : it is Russia n-incorporated ; its place of management is in 
the Russian Feder ation;  or it complies with the specific provisions of one of the 81 bilateral  investment 
promotion and protection agreements in force . Tax residence rules are set out in Law No. 376 -FZ of 
24 November 2014 and its subsequent amendments .  
102 Entities  deemed n on-resident for tax purposes  are taxed on income from commercial activities 
undertaken in the Russian Federation and on passive income from Russian sources . 
103 Losses may be carried forward for 10 years , except for losses derived from activities s ubject to a 0% 
profit tax rate .  
104 Dividends received from majority -owned (>  50%) companies are tax -exempt if the shares were held 
for at least 365 days on the day the dividend was announced.  
105 As from 2015, the property of natural monopolies is no longer exempted f rom property tax.  
106 Whenever the tax base is calculated using the  cadastral value, instead of the depreciated book value, 
the maximum rate is 2%.  WT/TPR/S/345 • Russian Federation  
 
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  3.131.   At the municipal level, land owners are subject to a land tax, based on the cadastral value  
of the plot. The rates set by local (municipal) authorities may not ex ceed: 0.3% for agricultural , 
residential or  utilities infrastructure  plots;  and 1.5% for other types of land use . 
3.132.   Depending on their location, the nature of their activities and their assets, some 
businesses would also be liable for: a water tax and/or a mineral resources extraction tax  (MRET) 
(Section  4.5.1), both of which are payable to the federal budget; a transport tax and/or a 
gambling tax, payable to the budgets of the regions; and/or a trade levy  collected by local 
authorities in municipal formation s with the status of federal cities.  
3.133.   Under Russian legislation, small and medium -sized businesses are eligible for special tax 
regimes, including a simplified tax regime, a patent  regime, a presumptive tax  regime, and a 
unified agricultural tax  regime. Qua lifying taxpayers may simultaneously apply more than one 
special regime  for the ir different activities . 
3.134.   Employers must make contributions to pension, social and medical insurance funds, based 
on each employee's annual remuneration; employees are not requir ed to make social security co-
payments. In 2016, these contributions were calculated as follows: Pension Fund, 22% within the 
threshold of R ub 796,000 and 10% on any excess remuneration; Social Insurance Fund, 2.9% on 
the first R ub 718,000 only; and Medica l Insurance Fund, 5.1% on the total wage earnings. 
Mandatory accident insurance contributions must be paid separately to the Social Insurance Fund 
at rates ranging from 0.2% to 8.5% of the employee's full salary, depending on the occupation's 
risk category .107  
3.3.1.4   Tax incentives  
3.135.   Various tax incentives  are available  at both the federal and sub -federal levels in the 
Russian Federation . Under the Tax Code, regional executive authorities have some flexibility in 
offering tax -rate and tax -base concessions, and settin g the corresponding eligibility criteria108, but 
are required to apply the tax breaks uniformly to all qualifying businesses in their jurisdiction. 
While most regions have established a prior approval process for the granting of tax incentives, a 
few have ch osen to rely on taxpayers' self -assessment.  Consequently, there is considerable  tax 
rate dispersion across regions , economic activities  and types  of taxpayers , and the administrative 
burden on applicants for tax concessions could be rather high.   
3.136.   Federal  activity -specific incentives include: a 150% deduction of qualifying research and 
development ( R&D) expenditure s from the profit  tax base;  accelerated depreciat ion for fixed 
assets used in science and technology ; social security contributions at lower  rates for technology 
and software companies ; and exemption of capital gains  on listed shares in Russian high -
technology companies  from profit tax, if acquired after 1  January 2011 and held for more than five 
years .109 In addition, the overall  corporate profit tax  rate has been set at zero during 2012 -2022 
for providers of education and medical services . 
3.137.   In 2014, tax breaks were also introduced for greenfield investment s of a certain size in  
15 Far Eastern and Siberian regions:  the profit tax component payable to t he federal budget  was 
set at zero and, at the discretion of the competent executive authority, the component payable to 
the regional budget could be waived for up to five years, followed by a reduced rate of 5% to 10%  
for the following five years.110 In addi tion, participants in investment projects  in those regions 
became eligible for reduced rates of MRET on a range of mineral resources.  
3.138.   Various tax incentives  remain in place for  the oil and natural gas industries, with 
concessions depending on field charact eristic s, such as  age and accessibility. Trunk gas pipelines 
                                                
107 Law No. 125 -FZ of 27 July 1998.  
108 Most regional executive authorities require a minimum level  of capital inv estment  or place 
restrictions on the type of business activity undertaken, but in some cases employment and wage rate 
considerations constitute the main eligibility criteria.  
109 The same exemption also applies to capital gains  realized on the sale of  unlist ed shares and 
participations in  any Russian company.  
110 Eligible projects must be based exclusively within one of the Far Eastern and Siberian regions, and 
commit to making capital investments of at least R ub 50 million within three years or at least R ub 500 million 
within five years.  WT/TPR/S/345 • Russian Federation  
 
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  and related structures, gas production project sites, and helium production and storage facilities 
are eligible for a corporate property tax  waiver during 2015 -2034, if the initial commissioning took 
place after 1 January 2015.   
3.139.   Tax concessions are also available to the residents of special economic zones  (SEZs), 
territorial development zones  (TDZs), territories of advanced development (TAD),  the Skolkovo 
Innovation Cent re, and the Free Port of Vl adivostok (Section  3.3.2).  
3.3.2   Incentives  
3.3.2.1   General support programmes  
3.140.   In acceding to the WTO, the Russian Federation " confirmed that any subsidy programme in 
place or established after accession within the territory of the Russian Federation would be 
administer ed in conformity with the WTO  Agreement on Subsidies and Countervailing Measures.  In 
addition, the Russian Federation would provide a subsidies notification in accordance with Article 
25 of the WTO Agreement on Subsidies and Countervailing Measures to the WTO Committee on 
Subsidies and Countervailing Measures ".111 
3.141.   The Russian Federation has submitted notifications for subsidies at the Federal and sub -
federal levels for 2012, and 2013 -14 which show that support at the Federal level was provided to 
several sect ors under a number of different legislative acts and in various forms, including: capital 
contributions, partial compensation for interest charged on loans; grants; etc. At the sub -federal 
level, the support provided by the sub -federal authorities was usua lly for specific sectors and also 
took various forms, including: tax incentives; compensation for interest on loans; direct grants; 
and equity injections (Table 3. 25 and Table 3. 26).112 
Table 3.25 Federal suppor t programmes 2013 and 2014  
(Rub million)  
Support to  2013  2014  
Light Industry, Arts and Crafts  1,361  1,157  
Children's Products Industry  0 33 
Timber Industry  1,150  2,092  
Production of Composite Materials and Products Thereof  0 1,080  
Chemical Industry  0 4 
Transport Machine Building  1,406  4,685  
Automobile Industry  8,108  58,664  
other Industry Sectors  825 2,670  
Engineering and Industrial Design  0 140 
Tool-making Industry  2,107  2,277  
Power Electroequipment  and Power Machine Building  0 1,000  
Building M aterials Industry  0 290 
Aircraft Industry  1,823  1,696  
Pharmaceutical and Medical Industry  11,020  10,161  
Civil Aviation and Air Navigation Service  2,780  709 
Agriculture Machinery Modernization, Innovative Development  2,300  1,570  
Modernization of the Fi sheries Industry  233 6 
Establishment and Development of "Skolkovo" Innovation Center  14,032  26,032  
Electronic Component Base and Radioelectronics in 2008 -2015 7,351  6,099  
Auto Investment Programme  n.a. n.a. 
Residents of the Special Economic Zones  n.a. n.a. 
Residents of the Kaliningrad SEZ  n.a. n.a. 
Residents of the Magadan SEZ  n.a. n.a. 
Small and Medium Enterprises (SMEs)  20,450  21,600  
n.a. Not available . 
Source:  WTO document G/SCM/N/284/RUS, 11 May 2016.  
                                                
111 WTO document WT/ACC/RUS/70, 17 November 2011, para graph  698. 
112 WTO documents G/SCM/N/253/RUS/Rev.1, 1 May 2014; and G/SCM/N/284/RUS, 11 May 2016.  WT/TPR/S/345 • Russian Federation  
 
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  Table 3.26 Sub-federal support programmes 2013 and 2014  
(Rub million)  
Region  Sector  Form  2013  2014  
The Altai Territory  Investment  Partial compensation of 
expenditures on interest on loans  0 41 
Amur Region  Plant cultivation machines  State guarantees  119.4 0 
 Plant cultivation machines  Partial compensation of 
expenditures on interest on loans  47.5 0 
 Investors in specified 
economic activities  Partial compensation of 
expenditures on interest on loans  36.4 0 
 Investors in specified 
economic activities  Tax incentives  539.3  0 
 Processing industries  State guarantees  0 158 
Bryansk Region  Investment  Tax incentives  122.1  0 
The Chuvash Republic  Investment  Tax incentives  92 0 
Irkutsk Region  Construction materials 
production  Partial compensation of 
expenditur es on interest on loans  0 72 
Kaluga Region  Investment  Tax incentives  0 n.a. 
The Kamchatka Territory  Industrial development  Compensation of shortfall in 
income  0 3778 
 Fisheries  Partial compensation of  lease 
payments and expenditures 
on interest on loans  0 37 
 Fishing and fisheries  Tax incentives  0 44 
The Karachayevo - 
Cherkessian Republic  Cement industry  Tax incentives  0 0 
The Khabarovsk Territory  Industrial development  Tax incentives  0 86.9 
Khanty -Mansijsk Autonomous 
Area Agriculture and fishing  Partial compensation of costs  0 134 
 Agriculture and fishing  Grants  132.3  0 
Kostroma Region  Linen and flax tissues, 
machine building, 
metalwork  Tax incentives  1,464.9  0 
Leningrad Region  Investment  Tax incentives  0 0 
Nizhni Novgorod Region  Investment  Tax incentives  178.5  0 
Novosibirsk Region  Investment  Tax incentives  577.8  0 
Omsk Region  Glass production  Tax incentives  71.7 0 
Oryol Region  Clay products, 
pharmaceutical products, 
property and asset 
development  Tax incentives  130.2  0 
Pskov Region  Investment  Tax incentives  0 133 
The Primary Territory  Fish processing  Partial compensation of costs  0 79.5 
Rostov Region  Investment  Partial compensation of costs  0 137 
 Investment  Partial compensation of 
expenditures on interest on loans  0 136 
 Investment  Tax in centives  1,477  0 
 Fishing and fish processing  Partial compensation of 
expenditures on interest on loans  440 0 
Sakhalin Region  Investment  Partial compensation of lease 
payments and expenditures on 
interest on loans  0 290 
 Fishing and fish processing  Partial compensation of lease 
payments and expenditures on 
interest on loans, partial 
compensation of an advance 
payment  0 114 
 Investment  Tax incentives  28 0 
  Partial compensation of 
expenditures on interest on loans  140 0 
 Forestry  Partial compensation o f 
expenditures on interest on loans  26.5 0 
Samara Region  Mechanical engineering  Partial compensation of costs  0 234 
 Investment  Tax incentives  0 2,734  
 Aircraft manufacturing  Tax incentives  0 42.5 
 Car component 
manufacturing  Partial compensation of 
expenditures on interest on loans  455.6  0 
 Investment  Tax incentives  1,239  0 
Sverdlovsk Region  Industrial and scientific 
development  Partial compensation of costs  0 219 
The Republic of Tatarstan  Investment in fishing and 
fish processing  Tax incentives  0 1,474 
Tomsk Region  Investment  Tax incentives  0 164 
 Investment  Partial compensation of costs  0 1,115  
Tula Region  Investment  Tax incentives  0 1,964  
 Investment  Partial compensation of costs  0 64 WT/TPR/S/345 • Russian Federation  
 
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  Region  Sector  Form  2013  2014  
The Udmurtian Republic  Investment  Tax incentives  0 188 
 Investment  Tax incentives  0 116.6  
 Investment in leather, 
textiles and clothing 
manufacturing  Partial compensation of costs  262 0 
Vladimir Region  Investment  Tax incentives  0 777 
Voronezh Region  Investment  Partial compensation of 
expenditures on interest on loans  44.1 0 
Yamalo -Nenets Autonomous 
Area Investment in fish hatchery  Partial compensation of costs  0 150 
 Fishing and fish processing  Partial compensation of  costs 0 699 
 Fishing and fish processing  Partial compensation of  costs 0 51 
 Investment  Tax incentives  n.a. 1,503 (since 
2012)  
   n.a. 1,338 (since 
2013)  
 Wholesale power and power 
market  Tax incentives  0 164 
 Fish farms  Grants  528.8  0 
Yaroslavl Region  Industrial development  Partial compensation of  costs, 
lease payments and expenditures 
on interest on  loans  0 34.2 
n.a. Not available.  
Source:  WTO document G/SCM/N/284/RUS, 11 May 2016 . 
3.142.   According to the authorities, industrial policy is based on a number of programmes for 
limited periods centred on different themes (e.g. innovative economy, f oreign trade) or sectors 
(e.g. energy, aircraft, shipbuilding, fisheries, pharmaceuticals) as provided for in a number of 
Government regulations (Table 3. 27). 
Table 3.27 Federal support programmes 2012 -14 
(Rub million)  
Sector  Government Regulation  Period  2012  2013  2014  
Industrial development and 
competitiveness  No. 328 of 15 April 2014  2014-2016 55,712.6  51,691.8  152,964.4  
Aircraft industry  No. 303 of 15 April 2014  2013-2025 .. 13,603.6  15,032.9  
Shipbuilding  No. 366 of 21 April 2014  2013-2030 .. 22,739.4  21,569.9  
Fisheries  No. 314 of 15 April 2014  2013-2020 .. 10.5 10.2 
Pharmaceuticals  No. 305 of 15 April 2014  2013-2020 .. 0 0 
Economic development and 
innovative economy  No. 316 of 15 April 2014  2013-2020 .. 111.0  132.0  
Power efficiency and development 
of the energy sector  No. 321 of 15 April 2014  2013-2020 .. 22.7 13.9 
Reproduction and use of natural 
resources  No. 322 of 15 April 2014  2013-2020 .. 63.1 65.9 
Foreign trade development  No. 330 of 15 April 2 014 2013-2018 .. 8.3 73.1 
.. Not available.  
Source:  Authorities of the Russian Federation.  
3.143.   A new law on industrial development in Law No.  488-FZ of 31 December 2014 "On 
Industrial Policy in the Russian Federation" came into force on 30 June 2015 and cover s economic 
activities related to mining of minerals, the processing industry, power, gas and steam supply, air 
conditioning, water supply, water disposal, waste collection and disposal, and elimination of 
pollution. It does not apply to production of food products that contain alcohol, alcoholic 
beverages, or tobacco products. Under the Law, support granted to industrial entities by the 
Federal government and/or sub -federal authorities, may be subject to conditions, including: 
performance indicators; and fi nes equivalent to the subsidy may be applied if the performance 
indicators are not met.  
3.144.   Under Law No. 488 -FZ industrial development funds may provide financial support in 
various forms including loans, grants, capital contributions, financial leasing, etc.  Furthermore, 
Federal and sub -federal authorities may provide support to industrial enterprises exporting 
products manufactured in the Russian Federation (Section 3.2.4).  
3.145.   Under Law No. 488 -FZ, for the purposes of procurement of goods, works and services fo r 
government needs and by certain types of legal entities specified in Law No.  223-FZ of 18  July WT/TPR/S/345 • Russian Federation  
 
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  2011 "On Procurement of Goods, Works, and Services by Certain Types of Legal Entities" (as 
amended by Law No.  249 of 13 July 2015) , priority may be given  to go ods originating in the 
Russian Federation. According to the authorities, such priority may only apply in cases that are not 
contrary to the obligations of the Russian Federation under international treaties.  
3.146.   Several Government decrees have been issued rela ting to Law No. 488 -FZ, including:  
 Government Decree No. 719 of 31 July 2015 "On the criteria for designating industrial 
products as industrial products having no analogue produced in the Russian Federation" 
which sets the criteria to define a product with  no domestic substitute as one which is not 
produced in Russia, and with product parameters (e.g. functional and quality 
characteristics) that differ from products produced in Russia. For six sectors, it also 
establishes the criteria to determine whether a  product is made in the Russian Federation 
(including machine tools, automotives, electrical goods, and farm and food processing 
machinery). These criteria include technological operations that must be carried out in 
Russia, the manufacturer must have inte llectual property, and there must be a service 
centre in the EAEU;  
 
 Government Decree No. 751 of 24 July 2015 setting out criteria to define conditions for 
industrial activities in the Russian Federation and abroad;  
 
 Government Decree No. 708 of 16 July 20 15 "On special investment contracts" provides 
for the creation of Special Investment Contracts (SIC) between the investor and the 
Ministry of Industry and Trade or other state authority and, if the investor applies for 
regional or municipal support, the re gional or municipal authorities. The objective of the 
SICs is to increase investment in establishing and modernizing industrial production 
through sectoral advantages and benefits. Investors are required to establish a 
production facility in the Russian Fe deration, establish an industrial or technology 
partnership or joint venture with a Russian company and transfer technology to the 
Russian Federation, start production in the Russian Federation, and start R&D activities in 
the Russian Federation or with a Russian partner. The Federal authorities are to provide 
access to land and infrastructure, give Federal tax reductions or exemptions, and provide 
direct financial support. Regional authorities are to provide access to land and 
infrastructure and they may g ive reductions or exemptions to regional taxes. Municipal 
authorities are to facilitate and support establishment. Contracts are for up to 10 years 
and give tax and legal stability - except for changes resulting from international treaties 
and at the EAEU level. The minimum investment is Rub 750 million. To acquire an SIC, 
an investor must submit an application and supporting documentation which is 
considered by an inter -agency government commission for up to 70 working days. The 
conclusion of the commissio n is sent to the investor who has 10 working days to respond. 
Decree No. 708 includes provision for negotiations and the final contract must be signed 
by all private and public parties;  
 
 Government Decree No. 757 of 25 July 2015 established the State Indus trial Information 
System (GISP) to provide information on, inter alia , state and municipal programmes for 
development and implementation of industrial policy, incentives for industrial 
development, and information on industries, sectors, and technical refe rences;  
 
 Government Decree No . 794 of 4 August 2015, provides for the creation of industrial 
parks and incentives for their management companies and resident enterprises, including 
financial support ; and  
 
 Government Decree No. 779 of 31 July 2015 "On indus trial clusters and specialised 
organisations of industrial clusters" provides for incentives for industrial clusters, where 
an industrial cluster is defined as a set of industrial enterprises located in one or more 
constituent entities of the Russian Feder ation that are interconnected due to geographical 
proximity and functional dependence. To qualify for Federal incentives, a cluster must be 
established and developed with regard for spatial development in the Russian Federation, 
the cluster must be within the boundaries of a constituent entity of the Federation or 
adjacent entities and must meet educational, production, financial, organizational, and 
monitoring requirements. At least 50% of production from each member of a cluster 
must be used by other memb ers (except for the final producer of products for sale WT/TPR/S/345 • Russian Federation  
 
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  domestically or for export). The rules on Federal subsidies to members of industrial 
clusters for joint projects of cluster members for import substitution are in Government 
Resolution No. 41 of 28 Ja nuary 2016.113, 114, 115, 116, 117 
 
3.3.2.2   Special Economic Zones and other regional schemes  
3.147.   Under Law No.  116-FZ of 22 July 2005 four different types of Special Economic Zone may 
be established: industrial and production zones; technology and innovation zones; tourist and  
recreational zones; and port and logistical zones. The SEZs provide incentives, administrative 
support, and supporting infrastructure for investors to establish and construct facilities at reduced 
costs (Table 3. 28). At end -May 2015, there were 34 SEZs: 10 industrial and production; 
6 technology and innovation; 15 tourism and recreational; and 3 port and logistics.  
Table 3.28 Special Economic Zones and selected incentives  
 Normal 
rate SEZ rate  Note  
Corporate income 
tax 20% 0-2% federal  
0 to 13.5% 
regional  Applies to Federal and regional tax for the period of conducting the 
activity as a resident in the SEZ. In addition, there are tax 
allowances for research and development, losses, and accelerated 
allowances f or depreciation of fixed assets  
Property tax  0-2.2%  0 For 10 years  
Land tax  0.3-1.5%  0 For 5 or 10 years  
Vehicle tax  €0.1 to 
3.5/hp  According to the 
decision of the 
region (0%)  According to the decision of the region  
Social taxes and 
insurance  34% 2016-17: 14%  
2018: 21%  
2019: 28%  For residents conducting technology and innovative activities, and 
residents of tourist and recreational SEZs  
Customs   Duty free  - For foreign goods placed and used within the territory of an SEZ  
- Russian goods placed and use d in an SEZ are subject to the 
customs regime for exports with excise duties but without customs 
duties where applicable.  
- Processed products leaving an SEZ and destined for the EAEU are 
treated as imports into the EAEU and duties and charges applied.  
- Processed products leaving an SEZ and destined for outside the 
EAEU export duties and charges, where applicable, are charged.  
Income tax for 
foreigners  30% 0-13% For foreign nationals involved in activities of SEZ residents and 
classed as highly qualified specialists  
VAT 18% 
(standard 
rate) 0 Exempt for services by residents in Port SEZs  
Source:  Russian authorities and Ministry of Economic Development online information. Viewed at:  
http://www.ved.gov .ru/eng/investing/sez/  [June 2016] .  
3.148.   The Skolkovo Innovation Centre was set up under Law No.  244-FZ of 28  September 2010 
"On Innovation Centre Skolkovo" and Law No.  243-FZ of 28  September 2010 "On Amending 
Certain Legislative Acts of the Russian Federatio n Following the Enactment of the Federal Law on 
Skolkovo Innovation Centre". The Centre hosts research work in the areas of: energy, nuclear 
technologies, aerospace, biomedical technologies, and information technology. A participant must 
be a Russian legal  entity established to carry out research activity under Law No.  244-FZ and be 
given the status of a participant in the Centre. The benefits apply for ten years from registration 
and include grant support, relaxed rules on immigration for foreign employees  working in the 
Centre, and tax advantages. The tax advantages include: exemptions from taxes on profits, and 
Property Tax; refunds of VAT and import duties; and reduced rates for social taxes and insurance 
contributions.118 At 31 March 2014, there were 5,82 2 applications, and 1,045 participants with a 
total of R ub 7,198 billion in grants allocated and  Rub 9,231 billion approved.119 
                                                
113 GRATA (2015).  
114 Bourliand E., Menchik D. (2015).  
115 Ministry of Industry and T rade (2015).  
116 Safaryan H., Batalov A. (2015).  
117 GRATA (2016).  
118 Skolkovo online information. Viewed at: http://sk.ru/net/participants/  [April 2016].  
119 Burenin A. (2014).  WT/TPR/S/345 • Russian Federation  
 
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  3.149.   Law No.  212-FZ of 13 July 2015 "On Vladivostok Free Po rt" took effect from 
12 October  2015 and provides incentives for businesses operating in the free port zone including 
reduced rates of corporate profit tax and social taxes and insurance contributions, exemption from 
property tax, and a facilitated visa regime.  
3.150.   In addition, Law No.  392-FZ of 3 December 2011 and Government Resolut ion No.  326 of 
10 April 2013 provide for the establishment of Territorial Development Zones for up to twenty 
years where state support may be  provided to accelerate the socio -economic development of 
region s of the Russian Federation. Regions approved by th e Government may apply for the 
creation of territorial development zones where incentives may be granted. The incentives could 
include tax incentives, leasing, subsidies, state guarantees on loans, etc. By end -May 2016, no 
territorial development zone had been created. Law No.  473-FZ of 29 December 2014 on priority 
development areas, which entered into force in March 2015, offers similar incentives, initially in 
the Far Eastern Federal District and some single -industry towns where development areas may be 
established for up to 70 years.  
3.3.3   State trading, state -owned enterprises, and privatization  
3.151.   At end -June 2016, the Russian Federation had not made any notifications to the WTO on 
state-trading enterprises within the meaning of Article XVII of GATT 1994 and the  understanding 
on the Interpretation of Article XVII. In its accession to the WTO, the Russian Federation made 
several commitments relating to state -owned and state -controlled enterprises and enterprises with 
exclusive or special privileges with regard to conducting commercial activity:  
 such enterprises, when engaged in commercial activity, would make purchases, which 
were not intended for governmental use, and sales in international trade in a manner 
consistent with applicable provisions of the WTO Agreeme nt;  
 such enterprises would make such purchases and sales in accordance with commercial 
considerations, including price, quality, availability, marketability, and transportation, and 
would afford enterprises of other WTO Members adequate opportunity in con formity with 
customary business practice, to compete for participati on in such purchases or sales;  
 within the scope of the services commitments of the Russian Federation, including the 
limitations set -out in its Schedule of Specific Commitments on Services , the rights and 
obligations of the Russian Federation under the GATS, and the regulatory measures of 
the Russian Federation covered by the WTO Agreement, including pricing regulations, 
and without prejudice to such commitments, rights, obligations, and me asures that are 
consistent with these commitments, rights and obligations, the Russian Federation would 
ensure that such enterprises would act in accordance with the provisi ons set -out in the 
relevant paragraph of the Working Party Report; and  
 upon accessi on, the Russian Federation would notify enterprises falling within the scope 
of the Understanding on Article XVII of the GATT 1994.120 
3.152.   State enterprises in the Russian economy are regulated by a number of different laws 
including : The Civil Code of the Russi an Federation; Law No.  208-FZ of 26 December 1995 
"On Joint-Stock Companies" (as last amended on 29 June 2015); and Law No.  161-FZ of 14 
November 2002 "On State and Municipal Unitary Enterpris es" (as last amended on 13  July 2015).  
State enterprises may als o be required to implement some aspects of industrial policy in the 
Russian Federation, for example, under Resolution No. 475 -r of 21 March 2016, 90  state-owned 
enterprises were required to purchase innovative and high -tech products from small and medium 
sized enterprises, where the list of state enterprises includes the 1 3 out of the 35 that are required 
to get their procurement schedules approved by the Federal Corporation for Development of Small 
and Medium Enterprises under Government Resolution No. 225 8-r of 6  November 2015 (Transneft, 
Uralgonzavod, Atomstroyexport, Central Bureau of Marine Engineering, Sevmash, Russian 
Highways, Gazprom, Rosseti (Federal Grid Company of United Energy System), Rostelecom, 
Aeroflot, Alrosa, Rosneft, and Russian Railways) .121 
                                                
120 WTO document WT/ACC/RUS/70, 17 Novem ber 2011, para graph  99. 
121 Government of the Russian Federation online information. Viewed at:  
http://government.ru/docs/ 22284/  [April 2016].  WT/TPR/S/345 • Russian Federation  
 
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  3.153.   The Civil Code of the Russian Federation lists three possible legal/corporate forms for an 
enterprise and state -owned enterprises take one of these forms:  
 Joint Stock Companies may have private shareholders and may be listed on foreign 
stock -exchanges ( e.g. Gazprom, Sberbank, Russian Railways, Transneft);  
 Unitary Enterprises are commercial enterprises whose ownership cannot be divided into 
shares or equity, and which do not have ownership rights over the assets used in their 
operations. Such entities are  owned by the State or by municipal authorities (e.g. 
Rosoboronexport, Post of Russia, Rosspirtprom)  
 State Corporations are non -profit organizations where asset management depends on 
the individual law or charter of establishment which also sets out their responsibilities 
and reporting requirements (e.g. Vnesheconombank, Rosnanotekh, Rostekhnologii, 
Rosatom).  
3.154.   Despite an overall decline in the number of state -owned enterprises (SOEs), they remain 
significant in the economy, and are concentrated in sectors su ch as banking, telecommunications, 
transport and energy. An OECD report noted that the level of state control is gradually decreasing 
but estimated that, in 2013, SOEs accounted for over 50% of the Russian economy and over 80% 
of sales, assets, and market value of the top ten firms in the Russian Federation.122,123 
3.155.   According to the IMF, a s at October 2013, the public sector included 31,092 public 
corporations which included  22,440 unitary enterprises, 308 state corporations (11 financial and 
297 non -financial),  and 8,344 joint stock companies . There were 10,799 other, unspecified 
government -controlled entities included in the official statistical register of the Federal Statistics 
Service.124  
3.156.   The degree of state ownership varies from one sector to another. One re port estimated 
that, in 2012, state ownership represented 73% of the transport sector, 45% of oil and gas, 35% 
of utilities, 15% of machinery, and 14% of telecoms.125 More recently, the OECD stated that the 
banking sector is dominated by stated -owned banks: the Central Bank of Russia is the majority 
shareholder in Sberbank, which, in 2012, accounted for almost half of retail deposits and one third 
of bank assets, although its share was declining.126  
Table 3.29 Selected state -owned enterprises in the Russian Federation in 2015  
(Rub million)  
Company  Sales Volume  Net profit  State ownershipa 
Gazprom  5,477,278  157,192  38.37%  
10.97% Rosneftegaz  
0,89% Rosgazifikatsiyab 
Rosneft  3,681,000  350,000  less than 0.01%  
69.5% Ros neftegazc 
Sberbank of Russia  2,167,400  290,300  50% + 1 share Central Bank of Russia  
Russian Railways  1,401,729  -44,078  100%  
VTB Group  925,600  800 60.93%  
Transneft  774,380  59,500  78.1%  
Rosseti  759,608  -24,257  85.31%  
Bashneft  637,271  43,021  73.94%  
RusHydro  329,560  24,131  66.84%  
Aeroflot  319,771  -17,146  51.17%  
Rostelecom  310,917  37,807  48.71%  
a May 2016, state percentage of ordinary shares.  
b 7 May 2015 Rosneftegaz is 100% state -owned, Rosgazifikatsiya is 74.54% stated -owned.  
c 1 May 2016.  
Source:  Expert 400 "Annual Ratings of the Biggest Russian Companies" (Available at: 
http://expert.ru/ratings/rejting -krupnejshih -kompanij -rossii-2015-po-ob_emu -realizatsii -produktsii/ ) 
and Russian authorities.  
                                                
122 OECD (2013), p. 18; and IMF (2014), p. 33.  
123 OECD (2015c), pp  70-71. 
124 IMF (2014a), and IMF (2014b).  
125 Tspeliaeva J. and Eltsov Y. (2012).  
126 OECD (2014), p.19.  WT/TPR/S/345 • Russian Federation  
 
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  3.157.   Since 1993, privatization has been carried out as provided for in legislation on privatization 
of state and municipal property.  The legislation regulating privatization is set out in the Civil Cod e 
of the Russian Federation and Law No.  178-FZ of 21 December 2001 "On Privatization of State and 
Municipal Property"127 (which was last amended on 13 July 2015).  
3.158.   According to a report issued by the Accounts Chamber of the Russian Federation in 
March  2015, the Russian Federation fully or partially privatized 1,180 joint stock companies and 
274 federa l unitary enterprises in 2010 -14. However, p rivatization proceeds in 2010 -14 were only 
40% stock or 35% of state -owned  of the planned total. Amongst other reason s, the bulk of the 
privatization programme has been postponed due to low asset prices, compounded by the 
economic slowdown.128  
3.3.4   Competition policy and price controls  
3.159.   The EAEU Treaty prohibit s the  abuse of market dominance, anticompetitive agreements 
and unfa ir competition  on cross-border markets  within the EAEU, and confers enforcement powers 
to the EEC.129 The EAEU Treaty also provides for the harmoniz ation of member States' national 
legislations in the area of competition policy  on the basis of general princi ples, including: effective 
control of economic concentration s, regulation of natural monopolies, prohibition of anti -
competitive agreements concluded by public authorities, prohibition of preferences  granted by 
state or municipal authorities (except in particular cases ), and codification and application of 
penalties .  
3.160.   The Federal Antimonopoly Service of Russia (FAS) , operating  directly under the authority 
of the Head of Government , is responsible for administering and enforcing  the law "On the 
Protection of  Competition" , which is the main law governing competition issues in the Russian 
Federation.130 The FAS has a broader mandate, which also includes price regulation131 as well as 
control of: public and defence132 procurement  (Section 3.3.5) , compliance with the l aw on 
advertising , and foreign investments in strategic industries  (Section 2.6). 
3.161.   In the exercise of its competition policy functions, the responsibilities of the FAS comprise 
both conducting an investigation  (fact-finding) and deciding in the first instan ce. Nevertheless, 
plaintiffs may choose to assume the burden of proof and file a complaint directly with the courts. 
Likewise, FAS decisions may be appealed at the FAS or in court. The Russian legislation contains 
provisions facilitating litigation for thi rd-party damages once an infringement decision has been 
issued by the FAS.  
3.162.   The law "On the Protection of Competition"  prohibit s anti-competitive agreements and the 
abuse of a dominan t position , and regulates economic concentrations, as well as any actions and 
agreements by state authorities133 that would have an impact on competition (including state aid) . 
In most cases, the law provides for a n effects -based assessment of harm to competition134 
(rule-of-reason approach) ; a per se  prohibition is stipulated for c artels.135  
3.163.   In line with the effects -based approach common to many jurisdictions, export -oriented 
anti-competitive practices (including cartels) that do not a ffect competition on the domestic 
market are excluded from the application of the Russian antimonopo ly legislation , although those 
having an effect within the EAEU would be addressed under the EAEU Treaty . While no particular 
                                                
127 WTO document WT/ACC/RU S/70, 17 November 2011, paragraph 59.  
128 U.S. Department of State (2015).  
129 EEC decision s on antitrust cases can be appealed at the Un ion's Court . 
130 Law No. 135 -FZ of 26 July 2006 , last amended in December 2011 and in October 2015 . 
131 Presidential Decree No. 373 of 21 July 2015 . 
132 Government resolution No. 1489 of 25 December 2014 . 
133 The control of state interventions applies to all level s of government.  
134 While the abuse of market dominance is to be established on a case -by-case basis, the definition of a 
dominant position (except for financial organizations) is assisted by indicative market share thresholds: an 
economic entity with less than 35% market share is generally not considered individually dominant, whereas 
one holding more than 50% of the market is presumed dominant. As from January 2016, the FAS is no longer 
required to keep a register of economic entities with market shares ab ove 35% . 
135 Cartels are defined as agreements between competitors that result or may result in any of the 
following outcomes : fixing or maintaining prices , discounts or mark -ups; bid rigging; market sharing; r educing 
or terminating supply ; and refusal to de al. As from January 2016, the definition covers not only agreements 
between suppliers but also those between buyers.  WT/TPR/S/345 • Russian Federation  
 
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  sectors or entities are exempted from  the application of the  law "On the Protection of 
Competition" , general (block ) exemptions  have been adopted for certain agreements between: 
credit and insurance organizations136; buyers and sellers; business entities conducting joint 
scientific surveys137; and insurers carrying out joint insurance or reinsurance activity.138 An 
exemption also applies t o the exercise of exclusive rights derived  from intellectual activity  and 
equivalent means of individualization .  
3.164.   In addition, anti-competitive practices can be recognized as permissible as long as  they: 
do not afford some participants the possibility of e liminating competition on the respective product 
market; do not impose on anyone restrictions which are not indispensable  for the attainment of 
their objective; and  result or may result in (i) perfection of production, sale of goods , stimulation 
of technic al or economic progress , or increasing the competitive ness of Russian goods in the world 
market , and/or (ii) granting buyers benefits which are proportionate to the benefits obtained by 
the economic entiti es as a result of the conduct.139 Certain vertical ag reements (except those 
between financial organizations)  are also expressly declared permissible : (i) written vertical 
commercial concessions such as franchising agreements ; and (ii) vertical agreements between 
economic entities if the market share of each of these entities does not exceed 20%.  
3.165.   Notwithstanding the general prohibition of any advantage conferred on a selective basis by 
a state authority to an economic entit y, such practices may be deemed permissible  for a variety of 
policy objectives , mostly socially and culturally oriented  ones. The law sets out  a detailed 
procedure of state or municipal aid granting , as well as  a number of measures to be taken in case 
of misuse of this aid.140 
3.166.   The Russian competition regime applies ex ante control of economic concentrations , 
including mergers, acquisition s of share s or controlling interests, and joint ventures. Undertakings  
(except financial organizations)  must notify their intention to merge and obtain prior authorization  
from the FAS  if, according to their lat est pre -notification balance sheets:  (i) their combined assets 
exceed R ub 7 billion ; or (ii) their combined revenues exceed R ub 10 billion.141 Whenever an 
economic concentration  gives rise to concerns about harm to competition, the FAS can either block 
the proposed transaction or impose certain remedies (conditional approval).  
3.167.   Violations of the law "On the Protection of Competition"  are liable to administrative and 
criminal penalties, depending on the nature and the gravity of the offence.  Administrative fine s 
may be levied on legal entities and on individual officials; in certain cases officials may also be 
disqualifi ed from exercising their functions  for a term of up to three years . The Code of 
Administrative Offences of the Russian Federation establishes a detailed mechanism for the 
calculation of fines , including all mitigating and aggravating circumstances.  Criminal liability 
provisions are in place for any  competition -restricting agreement  (cartel)  that caused major  
damages (exceeding R ub 10 million) to  physical persons, organizations or the state, or brought the 
perpetrators major earnings (exceeding R ub 50 million);  criminal penalties include  fines 
(Rub 300,000 -1,000,000), disqualification to hold certain positions or engage in certain activities , 
and pr ison terms  (up to seven years).  
3.168.   Under the leniency programme introduced in 2007 and substantially amended in 2009 , 
relief from administrative and criminal liability may be granted to  the party that is first to disclose 
and provide evidence of an undetected  competition -restricting agreement  or concerted practice; 
relief from criminal liability is conditional on providing compensation for the damages caused by 
the cartel. As from January 2016, the parties that have come forward as second and third 
applicants for leniency may be fined at the minimum amount prescribed in the Code of 
Administrative Offences of the Russian Federation , provided that neither of them had been the 
initiator of the anticompetitive conduct.142 The number of leniency applications received by the FAS  
grew steadily during the perio d under review (Table 3.30). Anticompetitive practices were 
                                                
136 Government order No. 386 of 30 April 2009.  
137 Government order No. 583 of 16 June 2009.  
138 Government order No. 504 of 5 July 2010.  
139 Accor ding to the authorities,  there have been cases when  such "efficiency considerations " have been 
taken into account by the FAS . 
140 OECD document DAF/COMP/GF(2010)5.  
141 The mandatory pre -merger notification thresholds for the financial services sector are set b y 
Government resolutions that take into account recent developments in that sector.  
142 Law No. 275 -FZ of 5 October 2015. WT/TPR/S/345 • Russian Federation  
 
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  disclosed on various markets, including: notary services , pharmaceutical products , chemical 
product s, construction , biological resources , and public procur ement (bid rigging) .  
Table 3.30 Competition enforcement, 2012 -15 
 2012  2013  2014  2015  
Total complaints/requests  27,347  29,912  39,689  51,546  
 Leniency applications  13 24 28 46 
 Abuse of dominance  .. 18,397  26,588  37,014  
 Restrictive practices  .. 1,084  1,718  2,151  
Abuse of dominance infringements  .. 1,955  2,524  2,479  
Restrictive practices infringements  .. 193 240 304 
Mergers reviewed  2,493  2,258  1,928  1,749  
 Approved without remedies  2,225  2,121  1,742  1,638 
 Approved with remedies  224 110 157 65 
 Disapproved (blocked)  44 27 29 46 
Advisory opinions  1,496  1,815  2,019  2,411  
 Alerts  73 56 91 49 
 Warnings  1,423  1,759  1,928  2,362  
Number of administrative fines  24,446  25,471  21,403  28,980  
Number of civil  court cases  1,688  1,461  1,468  1,577  
Appeals (against 1st instance decisions)  587 55 46 40 
Decisions reversed/amended on appeal  14 20 7 15 
.. Not available.  
Source:  Federal Antimonopoly Service of Russia.  
3.169.   While penalties are considered essential for dis suasion, the FAS also seeks to address 
symptoms of anti -competitive conduct through written alerts  and warnings . Alerts are issued in 
response to public announcements of planned conduct that would be anti -competitive, whereas 
warnings  target specific pract ices already in place that must be discontinued in order to avoid the 
initiation of an investigation .143 These two instruments  are of preventive  nature and enable the 
authorities to focus on the most harmful violations  of the law. According to the FAS, virtu ally all 
warnings issued to date have been heeded.  
3.170.   In 2015, the FAS absorbed the Federal Tariff Service of Russia and assumed its 
functions.144 Consequently, the FAS took over price regulation, control and monitoring on several 
goods and services markets, i ncluding: electric energy  (transmission , operational dispatch 
management , connection to the  Unified National Electricity Network, distribution , wholesale , and 
retail); thermal power (co -generation and retail); water supply and sanitation ; railway 
transport ation (public rail infrastructure and transportation  (except transit )); natural gas (pipeline 
transportation , wholesale  and retail); transportation  of oil and petroleum products  (main 
pipelines ); public telecommunications and public postal services ( domest ic letter  post and 
telegrams, fixed-line connectivity, distribution of  Russian TV and radio content, and telephone loop  
assignment ); services at transport terminals, ports and airports ; infrastructure at inland 
waterways ; services on the Northern Sea Route  (icebreaking  fleet and ice pilotage ); air navigation 
services ; and solid domestic waste  management. The transfer of competences also included 
keeping price registries of nuclear fuel cycle  and defence products , as well as coordination of 
storage fees for agricultural  reserve stocks  and producer prices for vital and essential medicines.145  
3.171.   Most of the markets subject to price controls are deemed to operate under natural 
monopoly conditions, with the monopoly holders being subject to additional regulation (in cluding 
information disclosure requirements) and supervis ion pursuant to the Law "On Natural 
Monopolies" .146 The FAS keeps a register of natural monopolies, which has been made available on 
                                                
143 Warnings must  list the grounds for issuance, the legal provisions being violated, and the corrective 
actions  to be voluntarily taken. The FAS must accord at least 10 days for complying with a warning's 
prescriptions .  
144 Presidential Decree No. 373 of 21 July 2015  and Government Resolution  No. 941 of 
4 September  2015. 
145 An overview of the competences of the former Federal Tariff Service o f Russia is available at: 
http://www.fstrf.ru/eng/press/brochure/110506_buklet_2011_itog.pdf .  
146 Law No. 147-FZ of 17  August 1995. WT/TPR/S/345 • Russian Federation  
 
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  its website in test mode .147 The FAS is also responsible for ensuring that natural monopolies  carry 
out their activities in a manner that does not harm competition or consumers' interests and does 
not delay an economically justified transition of the relevant market from the natural monopoly 
status to a competitive one. The scope of supervision of natural monopolies  (deriving more than 
1% of their income from their regulated activity) comprises (i)  any acquisition of assets or 
investment unrelated to their regulated activity and (ii)  any transfer of ownership or right of use 
over assets related to their regulated activity, as long as the transaction's value exceeds 10% of 
the monopolist's charter capital.  
3.172.   The Russian Federation has been actively strengthen ing and formaliz ing international 
cooperation efforts with a view to min imizing frictions arising from procedural or substantive 
differences between national competition regimes, and promoting cross -border enforcement 
coordination. The portfolio of cooperation instruments in place comprises legally binding, 
intergovernmental  agreements and non -binding arrangements between Russian institutions and 
counterparts in other jurisdictions. At end -June 2016, the Russian Federation had 
intergovernmental  agreements on cooperation in the sphere of competition policy with Brazil,  
Bulgaria,  China,  Poland, and Ukraine; some 42 cooperation arrangements at institutional level 
were also in place. While these cooperation instruments vary in scope, typical clauses include 
notification, consultation, positive comity, avoidance of conflicts, and con fidentiality; some 
cooperation instruments contain provisions on exchange of evidence . 
3.173.   The Russian Federation participates actively in international fora on competition policy, 
including conferences and events organized by the International Competition Net work, the OECD, 
and UNCTAD, as well as  in the framework of intra-BRICS cooperation . 
3.3.5   Government procurement  
3.3.5.1   Overview  
3.174.   Government procurement in the Russian Federation encompasses all procurements of 
goods, services and works by contractual means to meet stat e and municipal needs. It amoun ted 
to Rub 5,451 billion in 2015, (about US$90 billion , or 9% of GDP ) (Table 3.3 1).148 The Russian 
Federation has reformed its procurement system in recent years; in 2013 a new Government 
Procurement Law was introduced with the  aim of establishing a comprehensive government 
procurement system, promoting procurement efficiency , and tackling corruption. Moreover, 
significant  achievement has been made  in enhancing procurement planning and monitoring . 
Recent improvements of the contract system led to budgetary savings of Rub 321 billion in 2015, 
and b usiness confidence in public procurement has also increased. According to the authorities, 
the average number of participants in each procurement procedure increased from 2.5 in 2014 to 
3.2 in 2015 .  
3.175.   The Russian Federation is not a par ty to the WTO Agreement on Government Procurement 
(GPA) . On joining the WTO in August 2012, the Russia n Federation  agreed  to initiate negotiations 
on accession to the GPA within four years. On 29 May 2013, the Russia n Federation  was granted 
observer status in the GPA Committee and the Russian authorities  have indicated that the 
negotiation may be officially initiated in the second half of 2016. 
Table 3.31 Governm ent procurement and its share in GDP, 2011 -15 
Year Value of procurement (R ub billion ) Share in GDP (%)  
2011 4,831.9 8.1 
2012 6,108.4 9.9 
2013 5,899.4  9.4 
2014 5,509.9  8.7 
2015 5,451.4  9.0 
Source:  Information provided by the Russian authorities.  
                                                
147 As at October 2015, the register of natu ral monopolies  contained more than 6,500 entities. FAS 
online information. Viewed at: http://fas.gov.ru/opendata/7703516539 -naturalmonopolies .  
148 Viewed at: www.zakupki.gov.ru . The figure does not include defence procurement.  WT/TPR/S/345 • Russian Federation  
 
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  3.3.5.2   Legal  framework  
3.176.   Government procurement in the Russia n Federation  can be  divided into three categories  in 
terms of the nature of the procuring entit y: procurement by federal and municipal governments ; 
procurement by military  entities ; and procurement by certain other types of legal entities, such as 
state-owned enterprises , regulated entities, monopoly entities, utility companies, etc . Different 
sets of laws and regulations are established for each of these types of procurement.  
3.177.   For procurement by federal and mu nicipal government s, the appl icable  law is Law No.  44-
FZ of 5 April 2013 "O n the Contract System in State and Municipal Procurement of Goods, Works 
and Services " which entered into force on 1 January 2014 although some of its provisions came , or 
will come into force on 1 January 2015, 1 January 2016 and 1 January 2017. Numerous  revisions 
to the Law have been made  since 2013. Currently, there are about 250,000  procuring entities 
working under the new procurement law.   
3.178.   For procurement by SOEs,  regulated entities, monopoly entities, and  utilities companies , 
the main law is the Law No.  223-FZ of 18 July 2011 "On Purchases of Goods, Works and Services 
by Certain Types of Legal E ntities ". These procuring entities set their own procurement 
requirements and methods.  Local content requirements are not strictly regulated in the Law and 
these entities are free to set their own requirements. Currently there are around 80,000 such 
procuring entities registered. For procurement by military entities, the Law No.  275-FZ of 
29 December 2012 "On the State Defence Order"  applies.  
3.179.   Other laws relat ing to government procurement include the Civil Code of the Russian 
Federation, the Budget Code of the Russian Federation, and the Law on Protection of Competition  
(Table 3.32 ).  
Table 3.32 Main legal framework of the federal and municipal procurement system  
Law number and date of adoption  Title  
Law No.  51-FZ, 30 November 2014  The Civil Code of the Russian Federation (Part I)  
Law No.  14-FZ, 26 January 1996  The Civil Code of the Russian Federation (Part II)  
Law No.  230-FZ, 18 December 2006  The Civil Code of the Russian Federation (Part IV)  
Law No.  145-FZ, 31 July 1998  The Budget Code of the Russian Federation  
Law No.  146-FZ, 31 July 1998  The Tax Code of the Russian Federation (Part I)  
Law No.  117-FZ, 5 August 2000  The Tax Code of the Russian Federation (Part II)  
Law No.  195-FZ, 30 December 2001  The Code of Administrative Offences of the Russian Federation  
Law No.  63-FZ, 13 July 1996  The Criminal Code of the Russian Federation  
Law No.  136-FZ, 25 October 2001  The Land Code of the Russian Federation  
Law No.  200-FZ, 4 December 2006  The Forest Code of the Russian Federation  
Law No.  190-FZ, 29 December 2004  The Town Planning Code of the Ru ssian Federation  
Law No.  74-FZ, 3 June 2006  The Water Code of the Russian Federation  
Law No.  44-FZ, 5 April 2013  On the Contract System in State and Municipal Procurement of 
Goods, Works and Services  
Law No.  223-FZ, 18 July 2011  On Purchases of Goods, W orks and Services by Certain Types of 
Legal Entities  
Law No.  307-FZ, 30 December 2008  On Auditing Activities  
Law No.  131-FZ, 6 October 2003  On General Principles of Local Government in the Russian 
Federation  
Law No.  82-FZ, 19 May 1995  On Public Associa tions 
Law No. 7-FZ, 12 January 1996  On Non -Commercial  Organizations  
Law No.  117-FZ, 20 August 2004  On Mortgage System of Housing for Militaries  
Law No.  149-FZ, 27 July 2006  On Information, Information Technologies and Data Protection  
Law No.  79-FZ, 27 July 2004  On Government Service  
Law No.  209-FZ, 24 July 2007  On Development of Small and Medium Enterprises in the Russian 
Federation  
Law No.  147-FZ, 17 August 1995  On Natural Monopolies  
Law No.  165-FZ, 16 July 1999  On the Principles of Compulsory Soc ial Insurance  
Law No.  167-FZ, 15 December 2001  On Compulsory Retirement Insurance in the Russian Federation  
Law No.  63-FZ, 6 April 2011  On Electronic Signature  
Law No.  275-FZ, 29 December 2012  On the State Defence Order 
Law No.  135-FZ, 26 July 2006  On Protection of Competition  
Law No.  99-FZ, 4 April 2011  On Licensing of Certain Types of Activity  
Law No.  60-FZ, 13 December 1994  On Delivery of Products for the State Needs  
Law No.  53-FZ, 2 December 1994  On Procurement and Delivery of Agricultural Good s, Raw Materials 
and Food Products for the State Needs   WT/TPR/S/345 • Russian Federation  
 
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  Law number and date of adoption  Title  
Law No.  126-FZ, 22 August 1996  On State Support of Cinematography of the Russian Federation  
Law No.  166-FZ, 20 December 2004  On Fisheries and Conservation of Aquatic Biological Resources  
Law No.  5485-1, 21 July 1993   On State Secrets  
Source:  Information provided by the Russian authorities.   
3.180.   Compared with the previous law149, Law No.  44-FZ of 5 April 2013  is more comprehensive 
and effective as it includes  new features such as compulsory procurement p lanning procedures, 
more options of procurement methods, and strengthened  procurement monitoring system. It 
regulates  the full process of government procurement , including procurement planning, 
organization of procurement, conclusion of contracts, contract  performance,  and monitoring and 
audit of procurements. In implementing the law, the President of the Russian Federation, the 
Federal Government and its executive authorities, and the State Atomic Energy Corporation 
(Rosatom) have the right to adopt regula tions to govern relevant aspects of government 
procurement in accordance with the relevant provisions of the law. Since the introduction  of the 
new l aw, more than 100 implementing regulations have been adopted  in respect of procurement 
planning, informatio n publication, limitation  on procurement of foreign products, preferences to 
products of certain types of suppliers, contracting, and procurement control . 
3.3.5.3   General principles and buy -domestic requirement s 
3.181.   According to the Law No.  44-FZ, all procurements sho uld be conducted under the 
principles of openness, transparency, competition, professionalism, uni formity  of the contract 
system, productivity and efficiency. Procuring entities and their entrusted agencies are prohibited 
from taking actions that restrict competition, in particular actions that would unreasonably restrict 
the number of suppliers participating in  procurement .  
3.182.   For purposes of transparency and openness, the Law requires that full and reliable 
information  on each procurement be published in a unified information system  on the official 
website of the Russian Federation ( www. zakupki.gov.ru ) and be accessible to all interested 
suppliers free of charge. The unifi ed information system became available on 1 January 216. The 
aim of the system is to create equal opportunities for interested  suppliers that have the right to 
participate in government procurement contracts in accordance with the l aw. Information 
publishe d in the system includes procurement regulations, procurement plans, procurement 
notices, tender documentations, contract award information, and a register of complaints.   
3.183.   With regard to efficiency and professionalism, the law requires that procuring offic ials be 
trained to be competent and professional in carrying out procurement. Qualified experts with 
theoretical knowledge and s kills in the field of government procurement may be involved in the 
organization of procurement activities.  Procuring entities m ay also authorize procuring agencies to 
carry out procurements on their behalf. Procurements can be conducted  either in a centralized  or 
decentralized  manner, subject to the decision of the procuring entity.  
3.184.   Besides these above -mentioned primary principle s, the procurement system also has some 
additional policy goals such as promoting innovation, and supporting small business and certain 
social groups. For example, p rocuring entities are required  to precede  procurements in a manner 
that gives favo urable consideration  to innovative products. The law also requires that preferences 
be given to four types of suppliers: i) institutions and enterprises of the penal system; ii) 
organization of disabled peopl e; iii) small businesses; and iv) socially -oriented non -commercial 
organizations. Specifically, a procuring entity is obliged to provide these suppliers with a price 
preference at a margin of 15%. The lists of goods, works and services eligible for the preference 
are approved by the Government of the Russian Fed eration. Such advantages are specified in the 
notices of procurement and procurement documentation. Procuring entities are also obliged to set 
aside contracts of not less than 15% of the total annual volume of procurements for small 
business es and socially -oriented non -commercial organizations. In 2015 , more than 
Rub 490 billion  in contracts was granted  to small businesses, 41% more than in the previous year . 
The contract system has become  an effective tool for support ing small businesses.  
                                                
149 Law No.  94-FZ "On Placing of Orders for Provision of Goods, Works and Services  for State and 
Municipal Needs", which ceased to apply from 1 January 2014 . WT/TPR/S/345 • Russian Federation  
 
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  3.185.   However, the Law No. 44 -FZ gives the Russian Government the ability to impose 
restrictions on  the purchase of foreign goods, works and services for the purposes of: protecti ng 
the constitutional  order , national  defen ce and security , and the domestic market ; develop ing the 
national economy ; and supporting Russian producers . Detailed implementing rules regarding these 
restriction s have been developed and published in the  form of Federal Resolutions .150 Foreign 
products will only be considered if there is no production of the go ods or services in the territory of 
the Russian Federation.  The Russian authorities confirmed that suppliers and service providers  
established i n the territory of the Russian Federation with foreign capital have equal rights to 
participate in government pr ocurement in the Russian Federation and other EAEU member States . 
On 25 March 2014, the Ministry of Economic Development issued Order No. 155 establishing  a 
15% price preference for domestically -produced goods in public procurement . With regard to rules 
of origin, the Russian Authority confirm s that the rules of origin in government procurement are 
identical to the rules of origin used in Russia 's normal trade .  
3.186.   The priority directions  of the development of the contract award system in the Russian 
Federatio n are:  
 to apply electronic methods in  the selection of suppliers (contractors, executors) in 
order to implement the principles of openness and transparency;  
 to disclose information about subcontractors (co -executors) involved in carrying out 
contracts;  
 to lodge complaints  and to issue prescriptions of supervisory bodies by electronic 
means; and  
 to form the catalogue of goods,  works and services for ensuring  federal  and municipal 
needs , serving as the base  for the creation of a price reference system.  
3.187.   One of the mandates of t he Federal Antimonopoly Service  (FAS) is controlling public and 
defence procurement  (Section 3.3.3).151  
3.3.5.4   Procurement methods and procedures  
3.188.   Procurement planning  became obligatory under the  Law No. 44 -FZ. Since 1 January 2016, 
all procurin g entities are required to develop  their procurement plans for the following  financial 
year and planning period. The plans are subject to approval by the budgetary institutions. The 
approved plans are to  be published in the unified information system  for public discussion, which 
could lead to changes to procurement plans, schedules, and documentation. After the plans are 
approved by the budgetary institutions, the procuring entities are to prepare procurement 
schedules on an annual basis. The schedules shou ld include information on the procurement, the 
initial contract price, requirements on participation, methods for determining suppliers, starting 
date for procurement, requirements on performance security, etc. No procurement can be 
undertaken without a pr ocurement schedule and procurement schedules are to be included in the 
unified information system.  
3.189.   Procurement methods can be classified into two general categories in terms of the extent 
of competition in the procurement: competitive methods; and single -supplier methods. 
Competitive methods include tendering (open tendering, tendering with limited participation , two-
stage tendering, closed tendering , closed tendering with limited participation  and closed two stage 
tendering), auctions (electronic auction and closed auction), request for quotations, and request 
for proposals (Table 3.3 3). In tendering, the supplier that has offered the best contract conditions 
will be awarded the contract. In an auction, the supplier that has offered the lowest price will w in 
                                                
150 For example, R esolution No. 102 of 5 February 2015 "On establish ing market entry restrictions for 
individual types of medical devices originating from foreign countries in the context of procurement for state 
and municipal needs  "; Resolution No. 791 of 11 August 2014 "On establish ing ban on purchases of certain 
types of light industry goods of foreign origin for the federal  and municipal  needs "; and Resolution No. 656 of 
14 July 2014  "On establish ing ban on purchases of certain  types of machine  industry goods of foreign  origin for 
the federal and municipal  needs ". The rules in issuing country of origin for goods in relation to Resolution No. 
656 were published by the Russian Chamber of Commerce and Industry in its Order No. 64 of 25 August 2014 . 
151 Government Resolution N o. 1489 of 25 December 2014.  WT/TPR/S/345 • Russian Federation  
 
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  the contract. The procuring entity decides which procurement method will be used in a specific 
procurement according to the provisions of Law No. 44 -FZ. The procuring entities' choices of 
procurement methods should not result in an unreasonable reductio n in the number of participants 
in the procurement. According to the authorities, e lectronic auction is the most frequently used 
method while the use of the single supplier method is being reduced . The G overnment is preparing 
legislation for the transition  of all procurement methods to an electronic format.   
Table 3.33 Procurement methods and main features  
Open tendering  
Features  No limit on the number of suppliers participating in the tender  
Conditions of us e Most procurements should be done through open tendering. Exemptions are set out by the 
federal law.  
General procedures  1. The tender notice is published in the unified information system.  
2. The use of standard tender documentation is obligatory. Tender  documentation should be 
accompanied by a draft contract and published in the unified information system 
simultaneously with the notice of procurement.  
3. A minimum of 20 days should be ensured from the publication of the tender notice to the 
opening of te nders. Any preference programme or restrictions on foreign participation 
should be specified in the notice.  
4. If only one tender application or no applications are filed by the deadline, the tender is 
deemed void.  
5. An audio recording of the opening of t enders should be made.  
6. Tenders are evaluated based on the criteria specified in the tender documentation.  
7. Contract award information should be published in the unified information system.  
Tendering with limited participation  
Features  Only pre -qualified suppliers are considered in the tender  
Conditions of use  Used for goods, services and works the supply of which could only be carried out by 
suppliers with the necessary skills because of the technical/technological complexity, 
innovative, hi -tech or  specialized character of the subject -matter of the procurement.  
General procedures  1. The procedures are generally the same as under open tendering. However, the notice of 
tender and tender documentation should contain a reference to the additional requi rements 
for participating suppliers. These additional requirements are used for prequalification only 
and will not be used as evaluation criteria.  
2. The results of prequalification with justification of the decisions and the list of qualified 
participants  should be published in the unified information system.  
3. If no participants are qualified or only one supplier is qualified, the tender is deemed 
void. 
4. Results of contract award will be published in the unified information system.  
Two-stage tendering  
Features  During the first stage, participants are obliged to submit an initial proposal for the 
procurement object without specifying proposals for the contract price. The tender 
commission will discuss the proposals with participants at the first stage and the procuring 
entity can specify procurement conditions based on the results of discussion at this stage. 
Prequalification of suppliers is also done at the first stage. In the second stage, qualified 
suppliers will submit a final tender with the contra ct price.  
Conditions of use  Used for procurement of scientific research, design works, experiments, delivery of 
innovative and hi -tech production, energy services, and creation of literary works or artistic 
performances where it is necessary for specifica tion of the characteristics of the 
procurement object to be discussed with participants.  
General procedures  1. The tender procedures are generally the same as under open tendering and tendering 
with limited participation.  
2. If only one participant is qua lified or only one participant submits a tender, the tender is 
deemed void.  
Electronic auction  
Features  Participation in the auction is open to all interested suppliers. The auction is carried out on a 
website controlled by its operator.  
Conditions of u se It is obligatory to use electronic auction in cases of procurement of goods, works and 
services where it is possible to formulate a detailed and accurate description of the 
procurement, and the criteria for determining the winner of the auction contain a 
quantitative and monetary evaluation. The list of these products is developed by the 
relevant authorities. Procuring entities may decide to use electronic auction for products not 
included in the list.  WT/TPR/S/345 • Russian Federation  
 
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  General procedures  1. The operator of an electronic  site shall accredit participants of the auction based on 
documents and data submitted by the participant. A participant is accredited to the website 
for three years. The operator shall keep and publish the register of participants on the 
website.  
2. The n otice of electronic auction shall be posted in the unified information system.  
3. The procuring entity will post the auction documentation in the unified information 
system simultaneously with the notice of electronic auction. The documentation is accessib le 
free of charge.  
4. Applications for participating in an auction will be submitted by accredited suppliers  
5. The electronic auction is conducted by reducing the initial contract price specified in the 
notice of such auction.  
6. The contract shall be con cluded with the winner of the auction. The contract award 
information will be published on the unified information system.  
Request for quotation  
Features  Information on the needs of a procuring entity is announced to an unlimited number of 
suppliers by p ublishing a notice of request for quotation in the unified information system. 
The procuring entity is entitled to send a request for quotation to at least three suppliers. 
The winner is the participant that offered the lowest contract price.  
Conditions o f use The procuring entity is entitled to use request for quotation for procurement if the initial 
contract price does not exceed R ub 500,000. The aggregate annual amount of procurement 
made by the method of request for quotation shall not exceed 10% of th e annual funds of 
procurement by this entity, and should not be more than R ub 100 million per year.  
General procedures  1. The procedures are generally the same as under open tendering.  
2. The difference is that when publishing the notice of request for qu otation in the unified 
information system, the procuring entity is entitled to send a request for quotation to at 
least three suppliers.  
3. Any interested supplier may submit a quotation to the procuring entity in writing in a 
sealed envelope.  
4. Envelopes  shall be opened publicly at the time and place specified in a notice of request 
for quotation.  
5. The supplier who has offered the lowest price will win the contract.  
6. The request for quotation will be deemed void if no or only one application is submit ted, 
or only one supplier conforms to the participation requirements.  
Request for proposal  
Features  Information on the needs of a procuring entity is announced to an unlimited number of 
suppliers by publishing a notice of request for proposal in the unif ied information system. 
The winner is the participant that offered the proposal that best meets the needs of a 
procuring entity.  
Conditions of use  A procuring entity is entitled to use request for proposal for: conclusion of energy supply 
agreement or ene rgy purchase contracts with guaranteeing supplier of energy; procurement 
of sports equipment and outfits for the sports team of the Russian Federation for the 
Olympic Games and Paralympic Games; conclusion of contract by an individual for the 
provision of teaching services and guide services, etc.  
General procedures  1. The procedures are generally the same as under two -stage tendering.  
2. Along with the posting of a notice of request for proposals, a procuring entity is entitled 
to send a request for propo sals to the persons with whom the procuring entity concluded 
contracts in respect of the same procurement objects within the 18 months preceding the 
request for proposal.  
Closed methods  
Features  Including closed tendering, tendering with limited particip ation, closed two -stage tendering, 
and closed auction  
Conditions of use  These closed methods may only be used in the following cases: information about federal 
needs constituting state secret; procurement of services related to insurance, transportation 
and protection of valuables of the State Fund of Precious Metals and Precious Stones of the 
Russian Federation, museum pieces and museum collections, artistic and other cultural 
works; and procurement of cleaning services and service of drivers to ensure th e activities 
of judges and bailiffs.  
General procedures  The procedures under these closed methods are generally the same as under corresponding 
open methods. The main difference is that under closed methods, notices or 
documentations containing state secr ets must not be published in the unified information 
system.  
Procurement from single supplier  
Features  Procurement from natural monopoly entities  
General procedures  A procurement notice will be published in the unified information system expect for cas es in 
which it contains state secrets  
Source:  Information provided by the Russian authorities.  
3.190.   In evaluating offers, consideration is given to criteria such as the contract price; expenses 
for operation and repair of the procured products; qualitative, fu nctional and ecological 
characteristics of the procured products; and the qualifications of the suppliers including their WT/TPR/S/345 • Russian Federation  
 
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  financial and material resources, work experience, and business reputation. While the contract 
price is the only criterion to be consi dered in an auction, other procurement methods should use at 
least two of these criteria, with price being one of them. If the request for proposals method is 
used, the procuring entity may not use these criteria but has the right to establish its own 
evaluation criteria. In this case, the weight of the self -selected criteria should not exceed those of 
the aforementioned criteria. If the price of the procured goods, services or works is set by the 
State through relevant legislation, the procuring entity has  the right not to apply these 
aforementioned criteria.   
3.191.   To avoid conflicts of interest, Law  No. 44 -FZ prohibits procurement from relatives (family 
links between the procuring officers and suppliers).  The procuring entity should establish a 
procurement comm ission for determination of the supplier. The commission should be composed 
of a limited number of members and most of the members should have received professional 
training, hold advanced qualifications in the field of procurement, or have special knowled ge of the 
subject matter of the procurement. Negotiation with participants is generally prohibited before 
identification of the winner.  
3.192.   Procurements can be conducted using  either a centralized or decentralized approach. If 
two or more procuring entities require  the same goods, works and services, such entities have the 
right to conduct joint tenders or auctions. In centralized procurement, the procurement agency 
only takes responsibility for organizing the procurement although each entity concludes contrac ts 
with the winner individually.  
3.3.5.5   Bid challenges review mechanism  
3.193.   Under the Government Procurement Law, any procurement participant, as well as public 
associations, or association of legal entities exercising public control has the right to lodge a 
complai nt about actions of the procuring entity, the competent authorized agency, the specialized 
organization, the procurement commission and its members, officials of the contract service, the 
contract manager, and the operator of the electronic trading platfor m if such actions infringe the 
rights and legitimate interests of a procurement participant. Both judicial and administrative 
procedures are available. The complaint may be lodged at any time after placement of the 
procurement plan in the unified informati on system but must be made within ten days after the 
report on consideration is published on the unified information system. A complaint about 
procurement document provisions may be lodged before the deadline for submitting participating 
applications. Afte r the expiration of these specified periods, complains may be lodged only through 
judicial procedure.  
3.194.   The control authority in the area of procurement is required to consider the complaint 
within five days from the date of receipt of the complaint. The pr ocurement may be suspended 
where necessary. The control authority shall make a decision on whether the complaint is justified 
or not, and issue instructions to eliminate any violations that may have been committed. The 
decision may be challenged through a judicial procedure up to three months from the date it was 
made. Persons guilty of violating relevant legislation shall bear disciplinary, civil administrative or 
criminal liability. The operators of electronic trading platforms and their officials (if so decided by a 
court) must cover losses caused by their illegal actions associated with disclosure of the 
information obtained in the course of electronic auctions. No other compensation is envisaged by 
the law.  
3.3.5.6   International cooperation  
3.195.   Under the Eurasian Economic Union (EAEU), the Russian Federation and the other EAEU 
member States agreed to provide national treatment to suppliers from each other to participate in 
their procurement markets. A similar protocol was signed by some of the CIS countries, includ ing 
the Russian Federation. Apart from that, no other bilateral/regional free trade agreements signed 
by the Russian Federation contain specific market access commitments on government 
procurement.  WT/TPR/S/345 • Russian Federation  
 
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  3.3.6   Intellectual property rights   
3.3.6.1   Overview  
3.196.   Since the 2008-09 global financial crisis, the Russian Federation has sought to broaden the 
base of sustainable economic growth by improving national innovative capacity, including through 
considering intellectual property (IP) policy settings. In particular, in December 2011, the Strategy 
for Innovative Development of the Russian Federation  2020 ( the Innovation Strategy ) was 
approved.152 It was  prepared by the Ministry of Economic Development in coordination with the 
national strategies for budget, energy and transport and as part of the Concept of Long -Term 
Socio -Economic Development of the Russian Federation.153  
3.197.   The Innovation Strategy analy sed the current state of the Russian innovation system in 
terms of human potential, industries' direct R&D investment, government R&D expe nditures, and 
existing infrastructure, and indicated that innovation was one of the priorities for the Russian 
Federation 's economic growth. While setting the general policy direction for the Russian 
Federation 's innovation -based socio -economic development , the Innovation Strategy identified 
primary goals to be reached by 2020 that included increasing the Russian Federation 's share of the 
global market of hi -technology products and services to at least 5 -10% in five or seven market 
segments; increasing the Russian Federation 's share of global hi -tech exports to at least 2%; 
increasing gross value added ( GVA) of innovative goods and services in national GDP from 12 .7% 
in 2009 to 17 -20%; increasing the share of innovative products in total volume of production  from 
4.9% in 2010  to 25 -35%; and increasing the number of Russian universities among the top 200 
world universities from 1 in 2010 to at least 4 in 2020. Moreover , more effective protection and 
commerciali zation of intellectual property rights (IPRs) were  identified as integral to the success of 
the Innovation Strategy, especially for ensuring the inflow of foreign direct investment and 
international cooperation in development of new technologies.  
3.198.   The Government intend s to increase R&D expenditures from the current level of 1.3% of 
GDP nowadays to 2.5 -3% in 2020 , with over 50% covered by the private sector . It also plan s to 
use various measures to promote innovation activities, including improvement of infrastructure to 
ensure the commercialization of R&D r esults, integration of international cooperation on innovation 
through foreign direct investment, establishment of technology platforms and developing 
roadmaps for key technology sectors, such as atomic energy, aviation, biotechnology, information 
and comm unication technology, nanotechnologies, and space. The current situation shows 
considerable potential to achieve these goals despite the policy challenges.  
3.199.   The Russian Federation has a strong research and education base, with a reported 826,733 
researchers  in 2013, the third -highest level globally, although this has declined steadily since a 
high point of over 1 million in 2001, when the Russian Federation occupied the highest rank 
internationally.154 A recent WIPO study using patent data to map inventor mobi lity identifies the 
Russian Federation outflow of 4,404 emigrant inventors between 2006 and 2010 as the 11th 
highest, and unlike other high -emigrant countries this was not matched by a similar inflow of 
inventors.155 As discussed below, patenting activity re mains high, growing mostly due to an 
increase in foreign filings against a steady rate of domestic activity. Meanwhile, R&D expenditure 
per capita rose steadily from US$208 in 2008 to US$347 in 2013156, suggesting scope for 
increased use of the IP system to translate  this research into commercializ ed innovation outcomes.  
                                                
152 Strategy for Innovative Development of the Russian Federation 2020 (hereinafter referred to as 
Innovation Strategy), Decree of the Government of the Russian Federation dated 8 December 2011, No. 2227 -
r (only in Russian). View ed at: http://innovation.gov.ru/sites/default/files/documents/2014/5636/1238.pdf . 
153 Approved by the Resolution of the Government of the Russian Federation No. 1662 -r of 
17 October  2008. 
154 UNESCO Institute for Statistics, Section on Scie nce, Technology and Innovation. Viewed at: 
http://data.uis.unesco.org/ . 
155 WIPO World Intellectual Property Indicators 2013, Special Section on  International Mobility of 
Inventors, p. 21. Viewed at: 
http://www.wipo.int/export/sites/www/ipstats/en/wipi/2013/pdf/wipo_pub_941_2013_special.pdf . 
156 UNESCO Institute for Statistics, Section on Science, Technology and Innovation . Viewed at: 
http://data.uis.unesco.org/ . WT/TPR/S/345 • Russian Federation  
 
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  3.200.   Overall, R&D expenditure as a proportion of GDP stood at a solid 1.13% in 2013, at a mid -
range among emerging economies.157 The share of private sector investment in research remained 
relativel y low158, although the Russian Federation  was among the few countries that had no fall in 
business expenditure in R&D after the economic crisis and saw subsequent growth.159  
3.201.   Statistics on IP payments show an increasing role of IP in trade: Russian IP exports more 
than doubl ed since 2010 and reached  US$666 m illion in 2013, and IP imports  increased  from 
US$4.8 billion to US $8 billion in the same period; the considerable gap between outgoing 
payments and incoming receipts being comparable with other emerging econ omies and potentially 
correlating with the growth in patent filings from abroad.160 Exports of high technology products 
increased from US $4.5 b illion in 2009 to US $8.7 b illion in 2013,  or from 8% to 10% of all 
exports.161 Exports of pharmaceuticals rose almost  fourfold from 2008 to reach US$1.3  billion 
in 2014.  
3.3.6.2   IP legislation  
3.202.   The Russian Federation  has a long -established intellectual property system and houses one 
of the world 's top ten IP offices in terms of filing activity. The current domestic policy inter est in 
improved IP protection, together with the process of accession to the WTO, have led to significant 
recent reforms in the legislative, administrative, and enforcement systems for IP.  
3.203.   The need to unify IP laws and bring them in compliance with WTO ru les, especially the 
TRIPS Agreement, led to a substantial IP legislative reform process which started in 2005. In 
December 2006, a new part (Part IV), dedicated to IPRs, was introduced into the Civil Code of the 
Russian Federation (CC RF)  which entered int o force on 1 January 2008, with the effect of 
invalidating and replacing the previous substantive laws.162 It includes general provisions on IPRs 
(Chapter 69) and substantive protection in the fields of copyright and related rights (Chapters 70 
and 71), pate nts (Chapters 72 and 73), layout designs  of integrated circuit s (Chapter 74), trade 
secrets (Chapter 75), trademarks (Chapter 76), and the right of use of IPRs covered in a single 
technology (Chapter 77) .163 
3.204.   Part IV of the Civil Code not only restructured IP  legislation but also amended many 
substantive provisions and clarified ambiguities in the previous legislation, in particular in the 
areas of protectable subject matter, the scope of IPRs, IPR acquisition procedures, and IPR 
enforcement. In 2014, the Law No. 35-FZ of 12 March 2014 "O n Amendments to the First, Second 
and Fourth Parts of the Civil Code and Certain Legislative Acts of the Russian Federation" took 
effect, which reviewed and amended certain provisions of Part IV of the Civil Code, and also 
supplemented it with new norms. Amendments to Part IV w ere made after the review (see below)  
and a series of special IP regulations have been adopted . 
3.3.6.3   IP administrative and enforcement systems  
3.205.   In addition to making changes to the substantive IP legislation, the Russian Federation  has 
also been in the process of reforming the IP administrative and enforcement systems.  
                                                
157 UNESCO Institute for Statistics, Section on Science, Technology and Innovation . Viewe d at: 
http://data.worldbank.org . 
158 The Innovation Strategy, p.  7. 
159 Global Innovation Online (2015), The Global Innovation Index, p. 5.  
160 WTO online information , Trade in Commercial Services, 2005 -onwards (BPM6), "Charges for the use 
of intellectual property n.i.e.". Viewed at: 
http://stat.wto.org/StatisticalProgram/WSDBStatProgramTechNotes.aspx?Language=E . 
161 World Bank  online information , World Development Indicators. Viewed at: 
http://data.worldbank.org/ . 
162 Prior to 2008, IP legislation mainly consisted of the Constitution (Article 44(1)), which provided basic 
rights in the field  of intellectual property by stating that "each person shall be guaranteed the freedom of 
literary, artistic, scientific, technical, and other creativity, and educational activities"; and six distinct 
substantive IP laws: Patent Law No. 3517 -I of 23 Septem ber 1992, Law No. 5351 -I on Copyright and Related 
Rights of 9 July 1993,  Law No. 3520 -I on Trademarks, Service Marks and Appell ations of Origin of Goods of 
23 September 1992, Law on Selection Achievements, the Law on Topologies of Integrated Circuits (199 2) and 
the Law on Computer Programs and Databases (1992) . 
163 Chapter 77 of the CC RF establishes standards that apply when multiple IPRs applicable to one 
technology .  WT/TPR/S/345 • Russian Federation  
 
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  3.206.   The Federal Service for Intellectual Property (Rospatent), which replac ed the Federal 
Service for Intellectual Property, Patents and Trademarks i n 2011, is the federal executive 
authority with responsibility for control and supervision in the area of intellectual property rights, 
as well as registration and legal protection of inventions, utility models, industrial designs, 
computer programs, datab ases, layout designs of integra ted circuits, trademarks, service marks, 
appellations of origin , and transfers of intellectual property rights (IPRs) . Rospatent is under the 
direct supervision of the Ministry of Economic Development.  
3.207.   The Federal Institute fo r Industrial Property (FIPS) is a state -financed institution 
subordinate to Rospatent. FIPS carr ies out preparatory works so that Rospatent may exercise 
legally significant actions related to the examination of applications for the registration of patents,  
trademarks, computer programs, databases and topographies of integra ted circuits; the 
consideration of applications for extension of the term s of exclusive IP Rs; and the review of 
decisions relat ing to objection, revocation or termination of exclusive IPR s. FIPS has various expert 
divisions responsible for the examination of different categories of IP. In connection  with the entry 
into force of the Law No.  35-FZ of 12 March 2014, the Chamber  of Patent Disputes was eliminated 
as a body that accepts claims a gainst Rospatent 's decisions taken as the result of applications or  
against validity of patents/ certificates . It remains as the division of FIPS called the Chamber  of 
Patent  Disputes  (CPD). CPD retains certain authorities for review s of decisions taken in connection 
with refusal,  grant or nullification of rights of patents, trademarks and appellations of origin . A 
decision  on CPD's proceeding comes into force after it is affirmed by Rospatent .  
3.208.   FIPS also maintains official informational and statistical data  and provides support in the 
certification and registration of patent attorneys.  
3.209.   In addition to the FIPS, Rospatent has two other subordinate organizations: the Federal 
Agency for Legal Protection of the Results of Intellectual Activity of Military, Speci al and Dual 
designation (FAPRID) which has similar function s to FIPS, but is limited to providing legal 
protection for the results of intellectual activity of military and special and dual designation; and 
the State Academy of Intellectual Property of the Russian Federation , which is responsible for 
training and professional development of experts in the area of legal protection of industrial 
property.  
3.210.   In addition to Rospatent, there are several other governmental agencies responsible for 
the regulation an d administration of IPRs: the Prosecutor's Office is responsible for surveillance of 
the execution of IP laws; the Russian Interior Ministry is responsible for investigating pirates, 
counterfeiters and distributors of counterfeit goods; the Defence Ministr y and the Federal Security 
Service are responsible for patent issues in the field of military and defence; the Ministry of 
Education and Science is in charge of the state policy, legal regulation and commercialization of all 
IPRs except for copyright ; the Ministry of Culture is responsible for copyright regulation and 
administration; and the Federal Customs Service of the Russian Federation  is responsible for 
customs registry of IPRs and enforcement of IPRs; the Federal Antimonopoly Service responsible 
for unfair competition or business practices; the Federal Service for Supervision in the Sphere of 
Telecom, Information Technologies and Mass Communication (Roskomnadzor) under the Ministry 
of Telecom and Mass Communications is responsible for  implementing pro tective measures in 
respect of objects of copyright and/or related rights (except photographic works and works 
obtained in a similar way to photography) based on an effective court judgement (Moscow City 
Court) ; and the State Commission for Selection Achie vements Test and Protection is responsible 
for protection of plant breeders' rights.  
3.211.   In order to strengthen coordination and transparency among various governmental 
agencies responsible for IPR issues, the Russian Federation  is considering the possibility of 
establish ing a new body, a mega-regulator , with responsibility for a wide range of IPR issues in the 
Russian Federation . One of the considered options is to base t he mega-regulator on Rospatent, but 
provide  it with  additional powers , in particular  the a uthority to determine copyright policy issues, 
under the supervision of the central government.  
3.212.   On 3 July 2013, the Intellectual Property Right Court (the IPR Court) was established 
within the Russian Federation's  commercial courts  system. This was consid ered a significant 
milestone in the development of IP protection in the Russian Federation  and demonstrated the 
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  3.213.   The IPR Court has jurisdiction to hear IPR related cases as a court of first instance and as a 
court of cassation. At first instance, the IPR Court is mandated to adjudicate cases arising from 
legislative acts of federal executive authorities, such as Rospatent, that affect complainants' 
legitimate rights and interests in relation to IPRs, and cases arising from the granting and 
invalidation of IPRs. As a court of cassation, the IPR Court is mandated to review IP cases decided 
by itself at first instance, and the cases decided by state commercial courts at first instance or on 
appeal, to ens ure consistent and transparent interpretation of IP -related laws.  
3.214.   In comparison with other commercial courts, the IPR Court is mandated to hear disputes 
irrespective of whether the parties to the dispute are legal entities or individuals.  
3.215.   To date, 18 judg es have been appointed to the IPR Court, including one Chief Judge, two 
Deputy Chief Judges, and chairpersons of two panels. Given the growing complexity of IP laws and 
the rapid evolution of technologies, technical experts, who have specialized knowledge in various 
fields have been appointed to provide technical support to these judges. If necessary, the IPR 
Court may call upon independent technical specialists to provide oral testimony to clarify specific 
technical issues during a trial.  
3.216.   In 2014, the IPR  Court heard 783 cases as the court of first instance, of which 239 
involved foreign entities; and 1 ,390 cases as the court of cassation, among which 242 involved 
foreign entities. Of these cases , 55-60% were related to trademarks and trade names, 25 -30% to 
copyright cases, and 5 -10% to patents.164 
3.217.   Notably, in 2015 the IPR Court issued its first decision on the protection of test data in the 
dispute between Novartis Pharma AG (Novartis) and Biointegrator LLC (Biointegrator) regarding 
the use of Novartis' prec linical and clinical data for the state registration of Biointegrator's Nescler, 
a generic version of Novartis' fingolimod (sold under brand name Gilenya).165 Novartis made its 
arguments based on the new legislation on the protection of undisclosed informati on, which 
provides that undisclosed information submitted to obtain marketing approval, i.e. registration of 
pharmaceutical products, should be protected against unfair commercial use for a period of six 
years starting from the date of grant ing of marketin g approval in the Russian Federation . During 
this period, third parties are not permitted to use data from pre -clinical and clinical trials of 
medical products submitted for state registration in support of their applications for product 
approval  (Law No.  61-FZ "On the Turnover of Medicines ").166  
3.218.   The main ins titutions involved in IPR administration and enforcement in the Russian 
Federation are listed in Box 3.1.  
Box 3.1 Main institutions involved in IPRs in the Ru ssian Federation  
Ministry of Economic Development  
Ministry of Culture is a federal executive body responsible for drafting and implementing government 
policy and the legal regulation of culture, the arts, historical and cultural heritage (including archae ological 
heritage), cinematography, archiving, tourism, copyright and associated rights. It is authorized to manage 
state property and provide state services in culture and cinematography, to protect cultural heritage, 
copyright and associated rights, and to perform state oversight in this sphere.  It is responsible for 
copyright regulation and administration  
Federal Service for Intellectual Property (Rospatent)  
 Department for the Provision of State Services  
 Division for Legal Support of Providing State Se rvices  
 Patent Law Division  
 Division for Means of Individualization  
                                                
164 Statistical data on the work of the IPR  Court. Viewed at: http://ipc.arbitr.ru/node/13545 . 
165 BRIC Wall Online Blog (2015) . 
166 Article 18, Law No.  61-FZ "On the Turnover of Medicines " dated 12 April 2010, as amended by Law 
No. 429-FZ dated 22 December 2014.  WT/TPR/S/345 • Russian Federation  
 
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   Department for Control, Supervision and Legal Protection of State Interests  
 Division for Control over the Results of Intellectual Activity of Civil Designation  
 Division for Control over th e Results of Intellectual Activity of Military and Dual 
Designation  
 Legal and Normative Division  
 Division for Legal Support of Protection of State Interests  
 Analytical Division  
 International Cooperation Department  
 Division of Multilateral Cooperation  
 Division for Regional Integration  
 Division for Analysis and Planning of International Cooperation  
 Financial and Administrative Department  
 Budgetary Planning Division  
 Income Administration and Budget Accounting Division  
 Personnel, Civil Service and Document  Control Division  
 Subordinate institutions  
 Federal Institute for Industrial Property (FIPS)  
- various expert departments responsible for applications in different science and 
 technology fields  
- the Chamber of Patent Disputes  
 Federal Agency for Legal Prot ection of the Results of Intellectual Activity of Military, 
Special and Dual designation (FAPRID)  
 Russian State Academy of Intellectual Property (RGAIS)  
Ministry of Education and Science is the authority in charge of the state policy, legal regulation and  
commercialization of all IPRs except for copyright  
IPR Court responsible for the adjudication of IP cases as the court of first instance and court of cassation  
Prosecutor's Office  responsible for surveillance and control of the implementation of the fed eral 
legislation in the area of intellectual property law  
Ministry of Interior responsible for identification and prevention of administrative violations and crimes in 
the area of intellectual property  
Federal Customs Service responsible for the identifi cation and suppression of intellectual property rights 
violations during the movement of goods across the customs border of the Russian Federation  
Federal Antimonopoly Service responsible for unfair competition business practices  
Federal Service for Supe rvision in the Sphere of Telecom, Information Technologies and Mass 
Communication (Roskomnadzor) responsible for implementing protective measures in respect of 
objects of copyright and/or related rights (except photographic works and works, obtained simila r way to 
photography) based on an effective court judgement (Moscow City Court)  
Source:  Information provided by the Russian authorities.  
3.219.   The Russian Federation  agreed to apply the provisions of the TRIPS Agreement from the 
date of accession to the WTO, 22  August 2012, including provisions for enforcement, without 
recourse to any transitional period. The TRIPS Council started a review of the national 
implementing legislation of the Russian Federation  in October 2013.167 Under Article 63.2 of the 
TRIPS Agreeme nt, the Russian Federation  notified some 70 laws and regulations which gave effect 
to the TRIPS Agreement's provisions, including all the laws and regulations discussed above.168 
The Russian Federation  also provided  responses to the Checklist of Issues on En forcement, 
prepared by the Secretariat to examine national legislation relevant to enforcement obligations in 
the TRIPS Agreement.169 
3.220.   The Russian Federation  has acceded to 21 treaties administered by WIPO  (Table 3.3 4).  
                                                
167 WTO documents: IP/C/M/73, 16 Septem ber 2013; IP/C/M/74, 24 October 2013; IP/C/M/74/Corr.1, 
20 December 2013; and IP/C/M/74/Add.1, 28 November 2013 . 
168 WTO documents IP/N/1/RUS/1 ; IP/N/1/RUS/1/Add.1 ; IP/N/1/RUS/1/Add. 2; and IP/N/1/RUS/2 . 
169 WTO document IP/N/6/RUS/1.  WT/TPR/S/345 • Russian Federation  
 
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  Table 3.34 Participation in international agreements  
Treaty/Agreement  Instrument  In Force  
Beijing Treaty on Audiovisual 
Performances  Accession: 19 October 2015   
Singapore Treaty on the Law of 
Trademarks  Ratification: 23 May 2009  18 December 2009  
Patent Law Treaty  Accession: 12 May 2009  12 August 2009  
WIPO Copyright Treaty  Accession: 5 November 2008  5 February 2009  
WIPO Performances and Phonograms 
Treaty  Accession: 5 November 2008  5 February 2009  
Rome Convention for the Protection of 
Performer s, Producers of Phonograms 
and Broadcasting Organizations  Accession: 26 February 2003  26 May 2003  
Trademark Law Treaty  Ratification: 11 February 1998  11 May 1998  
International Convention for the 
Protection of New Varieties of Plants 
(UPOV Convention)  Accession: 24 March 1998  24 April 1998  
Protocol Relating to the Madrid 
Agreement Concerning the International 
Registration of Marks (Madrid Protocol)  Ratification: 10 March 1997  10 June 1997  
Berne Convention for the Protection of 
Literary and Artistic Work s Accession: 9 December 1994  13 March 1995  
Convention for the Protection of 
Producers of Phonograms against 
Unauthorized Duplication of Their 
Phonograms (Phonograms Convention)  Accession: 9 December 1994  13 March 1995  
 
Brussels Convention Relating to the  
Distribution of Programme -Carrying 
Signals Transmitted by Satellite  Accession: 20 October 1988  20 January 1989  
Nairobi Treaty on the Protection of the 
Olympic Symbol  Ratification: 17 April 1986  17 April 1986  
Budapest Treaty on the International 
Recognit ion of the Deposit of 
Microorganisms for the Purposes of 
Patent Procedure  Ratification: 22 January 1981  22 April 1981  
 
Patent Cooperation Treaty (PCT)  Ratification: 29 December 1977  29 March 1978  
Madrid Agreement Concerning the 
International Registratio n of Marks  Accession: 15 March 1976  1 July 1976  
Strasbourg Agreement Concerning the 
International Patent Classification  Accession: 30 September 1975  3 October 1976  
Locarno Agreement Establishing an 
International Classification for Industrial 
Designs  Ratification: 8 September 1972  15 December 1972  
Nice Agreement Concerning the 
International Classification of Goods and 
Services for the Purposes of the 
Registration of Marks  Accession: 8 April 1971  26 July 1971  
Convention Establishing the World 
Intellectu al Property Organization  Ratification: 4 December 1968  26 April 1970  
Paris Convention for the Protection of 
Industrial Property  Accession: 16 March 1965  1 July 1965  
Source:  WIPO online information. Viewed at:  
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=147C . 
3.3.6.4   Copyright and related rights  
3.221.   Copyright -based industries make a sizeable contribution to the economy of the Russian 
Federation . According to one a WIPO report, in 2004 the Russian Federation's  copyright based 
industries accounted for 8. 7% of the turnover of all industries (about Rub 2,529 billion), 7.3% of 
employment, 6. 1% of GDP, and 7.2% of foreign trade turnover.170 These industries were ranked 
first or sec ond by these indicators compared to the contributions of other industries, such as 
mining and extraction operations, production of foodstuffs, production and distribution of electric 
power, gas and water, construction, and hotels and restaurant s. 
3.222.   The Russi an Federation  has made a series of reforms to copyright legislation, in particular  
the replacement of the Law No. 5351 -1 of 9 July 1993, by Chapters 70 and 71 of Part IV of the 
                                                
170 WIPO (2007).  WT/TPR/S/345 • Russian Federation  
 
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  Civil Code, maintaining essentially the same substantive law, while augmenting and clarifying it to 
further strengthen the copyright protection.  
3.223.   Copyright protection is available for works of science, literature and arts, irrespective of 
the value and purpose of the work as well as of the mode of its expression, as long as they are t he 
result of human creative activity  (Articles 1255 and 1259 of CC RF) . Copyright protectable works 
include literary works, dramatic works, musical works, audio -visual works, works of painting, 
sculpture, graphics, design, architecture, photographic works,  and geographic and geological 
maps, derivative works and complied works  (Article 1259) . Computer programs, whether in source 
or object code, are protected as literary works in the Russian Federation  in line with Article 10.1 of 
the TRIPS Agreement  (Articl es 1259 and 1261) . 
3.224.   The Civil Code provides for protection of databases in line with Article 10.2 of the TRIPS 
Agreement: a person who incurs  substantial expense creating a database by collecting, processing 
and placing data has the exclusive right to the d atabase ; The right includes extraction of materials 
from the database and their subsequent use in any forms or means . A database is deemed to 
require substantial expense to create if it contains at least 10,000 independent information 
elements (Articles 13 33 and 1334 of the Civil Code) .  
3.225.   While copyright protection is not subject to any registration  formalities , the right holder 
can voluntarily deposit his  or her  work with the Russian Author's Society (RAO) , or other 
organizations allowing for the deposition  of work,  and receive a certificate. The voluntary 
registration of computer programs and databases can be done through Rospatent  (Articles 1259 
and 1262) . An application for state registration of a computer program or a database m ay cover 
only one computer  program or database  (Article 1262) . 
3.226.   Copyright protection is available for the remainder of the life of the author and seventy 
years after his or her death  (Article 1281) , which extend s by twenty years the term under the 
Copyright Law of 1993. The term for database protection is fifteen years from completion of the 
database's creation and can be renewed upon request  (Article 1335) . 
3.227.   Both economic and moral rights are protected. Moral rights include rights of authorship, 
inviolability of a work and protection  of a work from distortion, and the right to make the work 
public  (Articles 1265 -1268) . Economic rights include the right of reproduction; the right of 
distribution; the right of rental; the right of import; the right of public demonstration; the right of 
public performance; the right of broadcasting; the right of communication by cable; the right of 
translation or other reworking; and the right of making available While the TRIPS Agreement 
provides that the rental right should be available at least in resp ect of computer programs and 
films, under the Civil Code  the copyright holder has a general right to rent out the original or a 
copy of the work  (Article 1270) .  
3.228.   The exclusive right of the database maker is protected regardless of the existence and 
validit y of copyright and other right s to the materials constituting the database. No one can extract 
materials from the database or use them without the permission of the database maker, except for 
person s extract ing and using materials from the dataset for pers onal, scholarly, and educational 
purposes and for other non -commercial purposes, in an amount justified by these purposes  
(Article 1334) . 
3.229.   Regarding copyright exhaustion, the Russian Federation  adopted the first sale doctrine, 
that is, the copyright owner e xhausts his or her copyright after the first sale or other alienation of 
the work with his  or her  authorisation in the territory of the Russian Federation (Article 1272) . 
3.230.   Several limitations and exceptions to copyrights are provided in the law, including f ree 
reproduction of a work for personal purposes (Article 1273),  free use of a work for informational, 
scientific, ed ucational, or cultural purposes,  free use of a work by libraries, archi ves and education 
organizations,  free use of a work permanently loc ated at a place open to the public,  free public 
performance of a musical work during an official o r religious ceremony or funeral,  free 
reproduction for purposes of law enforcement,  and free fixation of a work by a broadcasting 
organization for short -term u se (Articles 1274 -1279).  WT/TPR/S/345 • Russian Federation  
 
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  3.231.   The Civil Code provides for contracts for alienation, by which the copyright owner transfers 
the exclusive right to the recipient; and contracts f or licences, granting the licenc ee the right to 
use a copyright ed work within the lim its defined by the contract  (Articles 1234 -1235) .  
3.232.   The Civil Code has a specific provision on the collective management of copyright, which 
provides that a collective management organization may obtain  official accreditation to  manage 
exclusive copyright a nd related rights without the explicit authori zation of the copyright holders, 
while a copyright holder has the right at any time to renounce the management of his or her rights 
by this organization  (Article 1244) . This provision was questioned by WTO Memb ers during the 
Russian Federation 's accession process and the subsequent TRIPS Council's review of national IP 
laws.171  
3.3.6.5   Trademarks  
3.233.   Trademarks are protected under Chapter 76 (Rights to the Means of Individualization of 
Legal Entit ies, Goods, Works, Services and Enterprises) of the Civil Code, which replaced the 
Trademark Law 1992.  
3.234.   Trademarks and service marks  are defined as "signs capable of individualizing goods, work 
or services of legal entities or individual entrepreneurs ". The signs can be words, figura tive, three -
dimensional or other signs or their combinations in any colour or combination of colours. 
Registration of t rademarks and service marks can be  carried out with regard to a specified list of 
goods and services. (Articles 1477 and 1482).  
3.235.   A tradema rk holder has the exclusive right to use the trademark on goods, their labels or 
packages. Without the trademark owner's permission, no one can use a sign , or a confusingly 
similar sign for goods or services identical or similar to those which the trademar k is registered for, 
if such use causes likelihood of confusion  (Article 1484) . 
3.236.   A registered trademark can be contested and invalidated if it is identical or confusingly 
similar to registered trademarks of other persons; or to trademarks protected or for w hich 
registration has been applied in the Russian Federation  by virtue of international treaties in respect 
of similar goods with an earlier priority; or to the trademarks of other persons , that are recognized 
as famous by the CC RF  in respect to similar g oods (Article 1512) .  
3.237.   In 2005, Starbucks Corporation contested a registered trademark STARBUCKS obtained in 
bad faith by a Russian trademark squatter - Starbucks LLC. Rospatent invalidated the registered 
trademark in favour of Starbucks Corporation. The Ar bitration Court upheld Rospatent's decision, 
and indicated bad faith trademark registration should be prohibited. After the bad faith 
STARBUCKS registration was cancelled on 16 November 2005, Starbucks Corporation obtained 
registration for its STARBUCKS tr ademark for coffee shops in the Russian Federation  in September 
2007, and then successfully opened its first Starbucks shop in Moscow. This case was considered 
as an important legal decision in prohibiting bad faith trademark registration in the Russian 
Federation .  
3.238.   The Civil Code provides a higher level of protection to well -known trademarks than to 
normal trademarks. Three kinds of trademarks or signs can be considered as well -known: a 
trademark registered in the Russian Federation ; a trademark protected in the Russian Federation  
by virtue of an international treaty but without registration; or a sign, used as a trademark but not 
protected in the Russian Federation . To be qualified as a well -known trademark, the mark or sign 
must have become widely known a mong the corresponding consumers. The legal protection for a 
well-known trademark shall also be applied to non-similar goods to those covered by the well -
known trademark, provided the use of that trademark by another person in respect of the 
mentioned good s will be associated by consumers with the trademark holder and may infringe 
upon his lawful interests. Protection of a well -known trademark is valid for an indefinite period of 
time (Article 1508) . 
3.239.   A well -known trademark shall be authorized by the federal  executive authority Rospatent 
and entered in a List of Well -Known Trademarks  (Article 1509) , currently including 165 marks, of 
                                                
171 WTO documents  WT/ACC /RF/RUS/70;  WT/MIN(11), para graph s 1213 -1219; and IP/C/W/588.  WT/TPR/S/345 • Russian Federation  
 
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  which 57 are foreign172 (20 belong to  U.S. companies, 6 are held by an Armenian firm and 
registered for alcoholic beverages , while  Belarussian and Latvian firms hold one each ).  
3.240.   Following a 15% decline during the 2008 -09 financial crisis, trademark filing activity has 
risen steadily  (Table 3. 35): resident applications grew by 30% from 2009 to 2013, and non -
resident applications simil arly rose by 29%. More recent figures show a slight decline in resident 
and non -resident filings. By comparison with other emerging economies, the proportion of resident 
applications remains relatively high at around 65%, and , possibly illustrating a stron ger export 
focus for domestic brand holders , Russian firms sharply increased their filings abroad , rising by 
over 80% from 2010 to reach 30 ,756 in 2012 (higher than the rate of fo reign firms filing in 
Russia).  
Table 3.35 Trademark applications, 2000 -2015  
Year Resident  Abroada Non-Resident  
2000 30,338  3,484  12,476  
2001 39,801  3,919  13,295  
2002 29,279  5,946  14,215  
2003 20,644  7,732  14,447  
2004 23,571  9,221  17,040  
2005 26,460  12,719  20,762  
2006 29,589  13,331 23,278  
2007 31,502  15,115  25,844  
2008 30,024  19,750  27,141  
2009 26,448  16,378  22,741  
2010 32,735  16,824  24,121  
2011 33,252  22,387  26,089  
2012 34,851  30,633  27,843  
2013 34,623  26,485  29,439  
2014a 34,175  26,302  26,903  
2015b 34,304  .. 27,173  
.. Not available.  
a Information  on the number  of applications  filed by Russian applicants abroad  is provided on the 
WIPO website  (http://www.wipo.int/ipstats/en/statis tics/country_profile/profile.jsp?code=RU ).  
b Information  on the number of  applications  filed in 2015 is stated  in accordance  with the Report  on 
the activities of Rospatent for 2015 .  
Source:  WIPO online information. Viewed at:  
http://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=RU  and information 
provided by the Russian Federation authorities.  
3.3.6.6   Patents  
3.241.   Chapter  72 of Part IV of the CC RF defines the substantive  provisions  of the patent  law. It 
entered  into force in January  2008;  a significant  amendment  with a view to strengthening  patent  
protection  came  into force in October  2014 and January  2015 with Law No.  35-FZ of 
12 March  2014 "On Amendme nts to the First, Second and Fourth Parts of the Civil Code and 
Certain Legislative Acts of the Russian Federation" . 
3.242.   Under  Chapter  72 of the CC RF, patentable  subject  matter  includes  inventions,  utility  
models  and industrial  designs  (Article  1345) . An invention is defined  as a technical  solution,  
whether  products  or methods,  in all scientific  or technical  areas.  Patentable  product s include  
device s, substance s, strains  of microorganism s, cell culture s of plants  or animals;  and a patentable  
method  is defined  as a process  of affecting  a material  object  using  material  means  (Article  1350)  
Law No. 35-FZ further  extends  patentable  subject  matter  to include  "the use of a product  or 
method  for a specific  purpose"  (Article  3.77(a)) .  
3.243.   Chapter  72 of the CC RF provides  a non-exhaustive  list of subject  matter  which  is not 
considered  an invention,  including  discoveries,  scientific  theories  and mathematical  methods;  
proposals  concerning  solely  the outward  appearance  of manufactured  articles  and intended  to 
satisfy  aesthetic  needs;  rules and methods  of games  and for intellectual  or business  activity;  
                                                
172 FIPS online information. The List is available in the "Public Registers" section. Viewed at: 
http://www1.fips.ru/wps/port al/Registers/ . WT/TPR/S/345 • Russian Federation  
 
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  computer  programs;  proposals  wholly  directed  at the representation  of information,  if they are 
applied  per se (Article  1350) .  
3.244.   The CC RF also includes  a non-exhaustive  list of subject matter  excluded  from patent  
protection,  including  methods  of cloning  of a human  being;  methods  of modification  of the genetic  
integrity  of cells of the embryonic  line of a human  being;  use of human  embryos  for industrial  and 
commercial  purposes;  and other  proposals  that are contrary  to public  interest,  principles  of 
humanity  and morality  (Article  1349) . 
3.245.   To be eligible  for patent  protection,  an invention  must meet four substantive  conditions  for 
patentability:  novelty,  inventive  step, industrial  applic ability  and sufficiency  of disclosure.  Absolute  
novelty  is required:  that is, an invention  must be new in comparison  with any information  
published  and known  to the public  in the world  before  the priority  date (the filing date of the first 
patent  applicati on). A six-month  grace  period  is available  for all patent  applications.  An invention  
is considered  to include  an inventive  step if it is not obvious  to a person  skilled  in the art, and it is 
deemed  industrially  applicable  if it can be used in industry,  agriculture,  public  health  and other  
branches  of economy  or in the social  sphere  (Article  1350) .  
3.246.   Sufficiency  of disclosure,  formerly  a procedural  condition,  was introduced  by Law No. 35-
FZ as a new substantive  condition.173 Therefore,  insufficiency  of disclosu re is a ground  for rejecting  
a patent  application  or invalidating  a granted  patent.174 
3.247.   A utility  model  has to meet the novelty  and industrial  applicability  requirements,  while the 
industrial  design  must be new and original  (CC RF Articles  1351-1352) . Law No. 35-FZ extends  the 
scope  of substantive  patent  examination  to the patent  applications  for utility  models  and industrial  
designs  (Articles  3.111 -112) and also applied  absolute  novelty  to the regist ration  of utility  models  
and industrial  designs  (Articles  3.78(a)  and 3.79) . Under  the CC RF, a patent  right holder  is 
conferred  the right of authorship,  and the exclusive  right to use the patent  (Articles  1356-1358) . 
3.248.   Chapter 72 of the CC RF defines certain uses that do not infringe patent rights, including 
the use  of a patent in the design, in auxiliary equipment or in the operation of vehicles or 
spacecraft of foreign States, provided these vehicles or spacecraft are temporarily or incidentally 
located on the territory of the Russian Federation  and the product is used solely for the needs of 
the vehicles or spacecraft; use for scientific research purposes; use in emergency circumstances 
(natural calamities, disasters, and accidents); use for private and non -commercial purposes; and 
the one -off manufacturing of medi cines in a pharmacy on a physician's prescription  (Article 1359) .  
3.249.   In addition, compulsory licences may be granted when : a patent is not used or not 
sufficiently used by the patent holder for four years from the grant ing of the patent for an 
invention and for three years from the grant ing of the patent for a utility model; there is 
insufficient supply of the respective goods, works or services on the market due to such non -use 
or insufficient use of the invention or utility model; a person is willing to use  the patent; and the 
patent holder refuses to enter into a licensing agreement with this person on terms corresponding 
to established practice. If all the above conditions are met and the patent holder has no legitimate 
reasons for this non -use or insuffic ient use of the patent, a non -exclusive compulsory licence will 
be granted by the courts upon request  (Article 1362) . Since 2008, no compulsory licences have 
been granted . 
3.250.   Under Chapter 72  of the CC RF , the Russian Federation  Government also has the author ity 
to allow use of an invention, utility model or industrial design without the consent of the patent 
holder, if it is in the interest of national defence and security, but the right holder must be notified 
of such use in the shortest possible time and be  compensated commensurately  (Article 1360) .  
3.251.   The term of patent  protection  is twenty  years  for inventions,  five years  for industrial  
designs  and ten years  for utility  models  (Article  1363) . Upon the request  of patent  holders,  the 
term of protection  for patents related  to pharmaceutical,  pesticide,  or agrochemical  products  can 
be extended  by the period  that passes  from the patent  filing date until the date of obtaining  the 
first marketing  authorization  minus  five years,  while the period  should  not be longer  than five 
                                                
173 Civil Code Article s 1387, 1390; and Law No.  35-FZ, Articles 3.108 (patents) and 3.111 (utility 
models).  
174 Civil Code Articles 1386, 1387 and 1398 ; and Law No. 35 -FZ, Article 3.118.  WT/TPR/S/345 • Russian Federation  
 
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  years  (Article  1363) . Upon the request of patent holders, the term of protection for  industrial 
design can be extended multiple times for five years, but not more than by 25 years in total 
starting from the date of filing of the application.  
3.252.   In 2014, Rospatent was ranked the sixth patent office worldwide in terms of patents 
granted, and it received the eighth -highest level of patent applications.175 
3.253.   Since 200 9, the number of patent applications and patents granted in the Russian 
Federation  have been  increasin g. On average, Rospatent received 59,000 patent applications per 
year, of which about 70% were resident applications,  70-73% of the patent applications were for 
inven tions, 19 -22% for utility models , and 7-8% for industrial designs ( Table 3.36 ). 
Table 3.36 Patent applications, 2008 -15 
Year 2008  2009  2010  2011  2012  2013  2014  2015  
Total 57,779  53,683  59,059  58,257  63,393  64,621  59,444  62,352  
 Of which          
 Resident  40,775  38,524  42,760  41,376  44,581 44,611  39,272  42,687  
 Nonresident  17,004  15,159  16,299  16,881  18,812  20,010  20,172  19,665  
         
 Inventions  42,073  38,790  42,800  41,798  44,684  45,269  40,308  45,517  
 Utility Models  10,995  11,153  12,262  13,241  14,069  14,358  13,952  11,906  
 Industr ial Designs  4,711  3,740  3,997  4,197  4,640  4,994  5,184  4,929  
Source:  WIPO Country Profile, and information provided by the Russian authorities.  
3.254.   During the same period, Rospatent granted , on average , about 31,500 patents per year for 
inventions  (of which ab out 70% were to resident applicants ), 11,800 patents per year were 
granted for utility models  (of which about 95% were to resident applicants ), and 3,700 patents  per 
year were granted  for industrial designs per year  (of which a bout 46% were to resident app licants)  
(Table 3.37 ).  
Table 3.37 Patents granted, 2008 -15 
Year 2008  2009  2010  2011  2012  2013  2014  2015  
Total 42,299  50,653  44,625  44,703  48,088  47,894  50,772  49,173  
Of which          
Resident  33,733  39,12 2 34,095  32,668  35,179  34,952  36,726  32,981  
Nonresident  8,566  11,531  10,530  12,035  12,909  12,942  14,046  16,192  
         
Inventions  28,969  34,968  30,478  30,135  33,036  31,780  33,950  34,706  
Utility models  9,673  10,919  10,581  11,079  11,671  12,653  13,080  9,008 
Industrial designs  3,657  4,766  3,566  3,489  3,381  3,461  3,742  5,459  
Source:  WIPO Country Profile, and information provided by the Russian authorities.  
3.255.   There are currently 218,396 patents for inventions, 56,499 for utility models and 28,160 
for industr ial designs in force.  
3.256.   The Russian Federation' s comparative innovative strengths are demonstrated by the main 
fields of technology, in which resident patents applications for inventions were filed between 2008 
and 2013: food chemistry (11. 2%), medical tech nology (8.4%), measurement ( 7%), civil 
engineering (6.7%), materials/metallurgy (6.2%), other special machines (5.9%), 
engines/pumps/turbines (4. 5%), pharmaceuticals (4. 3%), transport (3. 9%), and chemical 
engineering (3. 9%).176 This reflect s the Russian Fede ration 's technol ogical potential in these areas.  
3.257.   The Russian Federation  is one of relatively few jurisdictions in which resident patent 
activity significantly exceeds non -resident activity. Nevertheless, this gap has narrowed  since 
2009, driven by stronger  foreign interest in patent filings in the Russian Federation : the average 
number of invention patents granted to resident applicants remained stable (about 20,000 per 
                                                
175 WIPO  (2015).  
176 WIPO  online information,  Statistical C ountry Profiles. Viewed at:  
http://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=RU . WT/TPR/S/345 • Russian Federation  
 
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  year) since 2008, while grants to non -resident applicants rose sharply from 6,548 i n 200 8 to 
almost 11,000 in 2014 (Table 3.38 ).177 
Table 3.38 Patent applications and patents granted for inventions, 2008 -15 
Year 2008  2009  2010  2011  2012  2013  2014  2015  
Applications          
Total  42,073  38,790  42,800 41,798  44,684  45,269  40,308  45,517  
Of which          
Resident  27,936  25,824  29,022  26,879  29,174  29,120  24,072  29,269  
Nonresident  14,137  12,966  13,778  14,919  15,510  16,149  16,236  16,248  
         
Granted          
Total 28,969  34,968  30,478  30,135  33,036 31,780  33,950  34,706  
Of which          
Resident  22,421  26,438  21,783  20,475  22,637  21,520  23,065  22,560  
Nonresident  6,548  8,530  8,695  9,660  10,399  10,260   10,885  12,146  
Source:  WIPO Country Profile, and information provided by the Russian authorit ies. 
3.258.   In 2014, most non -resident patents for inventions were granted to applicants from United 
States (2 ,427), Germany (1 ,697), Japan (1 ,449), France (763), the Netherlands (682) and 
Switzerland (564), while most non -resident patents for utility models were  granted to applicants 
from the United States (254), Ukraine (142), Belarus (71), Germany (39) and China (36). Up to 
2015, the bulk of non -resident patents for inventions w ere owned by patent holders from the 
United States, Germany, Japan, France, the Repu blic of Korea and Italy.  
3.259.   The Russian Federation  patenting activity abroad has increased since 2008. P atent 
Cooperation Treaty (P CT) applications received by Rospatent rose from 802 in 2008 to 1 ,191 in 
2013, which lift ed the Russian Federation  to one of the top 20 PCT receiving countries. If a Russian 
entity or natural person wants to apply for a patent abroad for an invention created in the Russian 
Federation , the application has to be first approved by the relevant agencies in the Russian 
Federation to confirm that the application does not involve any State secret  (Article 1395) . 
Violation of this requirement when applying for patents in foreign countries can lead to 
administrative liability in the form of fines.178  
3.260.   The overall pattern of activity, consideri ng also the growth of trade in IP licenc es and in 
high technology products suggests that , to some extent,  improvements to the patent system have 
supported  national innovation activities and attracted an inflow of foreign patent technologies. 
However, the I nnovation Strategy recognizes that the patent system alone cannot be expected to 
bring about significant improvement s in the innovation capacity, and that complementary 
measures are required. One index of innovative capacity, the Bloomberg Innovation Index , 
recently ranked the Russian Federation  as 12th worldwide, thanks especially to its patenting 
activity, educational strengths , and high tech -density.179 Another measure, the Global Innovation 
Index, sets the Russian Federation  at 48th overall internationall y, but ranks it more highly for 
knowledge creation (21st) and education (20th), pointing to considerable potential for knowledge 
impact and diffusion as the basis for innovation -led economic growth.180 
3.3.6.7   Geographical indications  
3.261.   Chapter 76 of the C C RF provide s protection for appellations of origin . An appellation of 
origin is defined as a designation  that represents or contains the contemporary or historical, formal 
or informal, full or abbreviated name of the country, city or rural settlement, locality or oth er 
geographical object, as well as the designation derived from th at name and known as a result of 
its use in relation to special properties of goods which are exclusively or mainly determined by the 
characteristic of the geographical natural conditions an d/or human factors . The  exclusive  right of 
                                                
177 Annual Report of the Activity of Rospatent, Tables on main statistical indicators for relevant IPRs. 
Viewed at: http://www.rupto.ru/about/reports/2014_1#1.2.  
178 Article 7.28, Code on the Administrative Offences of the Russian Federation No . 195-FZ dated 
30 December 2001, as last amended on 30 December 32015 (hereinafter referred to as the Code o n the 
Administrative Offences). Viewed at: http://www.wipo.int/edocs/lexdocs/ laws/en/ru/ru073en.pdf . 
179 Bloomberg Online News (2016).  
180 Globa l Innovation Online (2015) , The Global Innovation Index 2015 . WT/TPR/S/345 • Russian Federation  
 
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  the manufacturers of such goods  to use such signs may be recognized (Article 1516) .181 Protection 
is available once an appellation is registered with Rospatent through the statutory procedure  
(Article 1518) . As of J anuary 2016, 154 appellations of origin had been  registered with 
Rospatent.182 
3.262.   Registration confers the right to use an appellation  of origin , that is, to affix it to goods, 
their labels and packages, in advertising, in leaflets, invoices, forms, and other d ocuments related 
to commercial introduction of goods.  A registered appellation of origin cannot be used by persons 
who do not have an appropriate certificate even if the genuine place from which the goods 
originate is indicated or the appellation of origin  is used in translation or in combination with 
expressions such as "kind of ", "type", "imitation ", or "and the like ". Furthermore , any similar 
appellation of origin cannot be used on goods which may confuse consumers in respect of origin 
and specific prope rties of the goods. The goods, labels and packages on which an appellation of 
origin or confusingly similar appellations are illegally used are treated as counterfeits  
(Article  1519) . 
3.263.   A bilateral agreement between the Russian Federation  and Switzerland on the protection of 
geographical indication s and appellations of origin entered into force on 1 September 2011. It 
provided for extension of the higher level of protection provided for in  Article 23 of the TRIPS 
Agreement to geographical indications for cert ain products other than wines and spirits in the 
Russian Federation  and Switzerland, including (from Switzerland) Emmentaler, Gruyère, L'Etivaz, 
Sbrinz, Bündnerfleisch, Basler Leckerli, Zuger Kirsch, Swiss chocolate and Swiss watches; and 
(from the Russian  Federation ) Russkaya Vodka, Russkaya ikra ( caviar) and Sibirskie Pelmeni 
("Siberian huskies" , or meat -filled dumplings).183 
3.3.6.8   IP enforcement  
3.264.   Enforcement of IPRs in the Russian Federation  is implemented by a large number of  
agencies, including: the Prosecutor' s Office, the Interior Ministry, the Federal Customs Service, the 
Federal Service for Supervision in the Sphere of Telecom, Information Techno logies and Mass 
Communication (Roskomnadzor ), Moscow City Court  and the IPR Court.  
3.265.   The C C RF establishes general r ules on remedies which the judicial authorities may use for 
infringement  of IPRs , including: acknowledge ment of  the ownership of IPRs, stopping  any actions 
that infringe or create the threat of infringement of IPRs, payment of damages , seizure  of physical 
carriers, and publication of the judicial decision on the infringement  (Articles 1250 -1253) .The CC 
RF also provides that if a legal entity repeatedly or severely infringes IPRs, the court has the 
authority to make a decision on the liquidation of this enti ty upon the request of the public 
prosecutor  (Articles 1250 -1253) . 
3.266.   Apart from civil liability, IP infringement can also lead to administrative and criminal 
liabilities which are meant to protect the public interest. Administrative liability is provided for  in 
the Code of Administrative Offences. It is considered to be a public liability for wrongful or unlawful  
actions which are less severe than criminal offences and not in jurious to the general public.  
3.267.   The Code of Administrative Offences establishes the li ability for illegal ly importing, selling, 
renting, or other uses of copies of works or phonograms for commercial purposes, where these 
copies are counterfeit or contain false information about their manufacturers, places of production, 
or copyright owners.184 It also provides for liability for the illegal use of inventions, utility models 
or industrial designs, and disclosure of their essence without the consent of the inventors or patent 
applicants and prior to their official publication.185 The Code provides for a range of fines which can 
be ordered together with the confiscation and destruction of infringing goods.  
                                                
181 Geographical indications are not mentioned as such in the Law. Article 1516, CC RF.  
182 FIPS online information. The List is avail able in Section "Open Registers". Viewed at: 
http://www1.fips.ru/wps/portal/Registers/ . 
183 Swiss Federal Ins titute of Intellectual Property Online (2011).  Switzerland informed the TRIPS Council 
of the bilateral agreement in February 2014.  WTO Document IP/C/M/74/Add.1.  
184 Article 7.12, Code on the Administrative Offences.  
185 Article 7.12, Code on the Administrative Offences.  WT/TPR/S/345 • Russian Federation  
 
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  3.268.   Natural persons, legal entities and their owners or managers can be subject to 
administrative liability. Administrative cases should be raised by  the police, and the court of 
general jurisdiction (in cases of natural persons) and the arbitration courts (in cases of legal 
entities) have the power to order fines and confiscation.  
3.269.   Criminal liability for IP infringement is codified by the Criminal Cod e. While dealing with the 
same types of infringing activities as the Code of Administrative Offences, it also considers the 
appropriation of copyright authorship (plagiar ism) to be a crime.186 Criminal liability will be applied 
if the infringement causes significant  damage to the public. Liability includes monetary fines, which 
are higher than the administrative liability  fines, and imprisonment. As of March 2015 "significant 
damage" is defined as damages of not less than Rub 100,000 and "very significant" as damages of  
not less than Rub 1 million.187 
3.270.   The Criminal Code also provides for liability for the illegal use of a registered trademark 
and the appellation of origin, and the illegal use of a special marking of an unregistered mark or 
appellation of origin, if such use occurs multiple times or causes severe harm.188 The number of 
IP-related civil, administrative, and criminal cases during the peri od 2012 -15 is provided in 
Table  3.39. 
Table 3.39 IP-related cases (cr iminal, administrative and civil), 2012 –15 
Nature of cases  2012  2013  2014  2015  
Criminal cases  
Article 146 of the Criminal Code of the Russian Federation (copyright 
and related rights)  3,580  2,584  2,084  1,718  
Article 180 of the Criminal Code of the Russi an Federation (trademarks)  413 583 402 636 
Administrative cases  
Administrative reports drew up  2,288  3,636  3,091  4,359  
Including:      
Article 7.12 of Code of Administrative Offences (infringement of 
copyright and related rights, and of invention and pa tent rights)  1,106  1,678  1,482  1,611  
Article 14.10 of Code of Administrative Offences (illegal use of 
trademarks)  833 1,422  1,609  1,956  
Civil cases  
Cases within courts of general jurisdiction  770 636 579 .. 
Cases within commercial courts  5,069  9,091  10,109 .. 
.. Not available.  
Source:  Information provided by the Russian authorities.  
3.271.   IP enforcement at the border is considered to be one of the most efficient enforcement 
actions. A series  of legal acts  establish a basic legal framework, including the Law on Customs 
Regulation189 and the Customs Code of the Customs Union.190  
3.272.   All the border measures provided for in these legal acts  are applied in the Russian 
Federation to infringement s of copyright and related rights, trademarks, and appellations of 
origin.191 IPR holders can register their IPRs in the national customs register of IP objects of the 
Russian Federation or in the unified customs register of IP objects of the EAEU member States .192 
It is also possible  for the customs authorities to take ex officio  action, without a request from the 
right holder , to suspend the release of infringing goods at the border. The border measures should 
not apply to goods imported for private, family or household use or other non -commercial 
purposes.  
                                                
186 Articles 146 -147, Criminal Code of the Russian Federation No.  63-FZ dated 13 June 1996, as last 
amended by Law No.  441-FZ dated 30 December 2015 (hereinafter referred to as the Criminal Code).  
187 Articles 146 -147, Criminal Code.  
188 Article 180, Criminal Code.  
189  Law No.  311-FZ of 27 November 2010 "On Customs Regulation in the Russi an Federation"  
190 Customs Code of the Customs Union, Appendix to the Treaty on the Customs Code of the Customs 
Union adopted by resolution of the Interstate Council of the Eurasia Economic Community No. 17 dated 
27 November 2009, as amended on 16 April 2010.  
191 Law No. 311 -FZ, C hapter 42.  
192 Law No. 311 -FZ, A rticle 305.  WT/TPR/S/345 • Russian Federation  
 
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  3.273.   To prevent the abuse of bor der measures, an applicant should be liable for damages 
caused to the importer, owner or consignee of importing goods resulting from the suspension if it 
is determined that such goods are not counterfeit.193  
3.274.   Despite all these efforts, IP enforcement, especi ally piracy, is still the main concern for the 
Russian Federation 's trading partners. Efforts to strengthen copyright protection in the digital 
environment resulted in the adoption of two special laws on cop yright enforcement since 2013.  
3.275.   On 21 June 2013, the Russian Federation  adopted  Law No.  187-FZ of 2 July 2013 
"Amending Certain Legislative Acts on Issues of Protecting Intellectual Property Rights in 
Information -Telecommunication Networks" , which introduced civil remedies against internet piracy 
and ente red into force on 1 August 2013. An amendment to Law No.  187-FZ was adopted in March 
2015 with the date of entry into force on 1 May 2015 ( Law No.  364-FZ).  
3.276.   The main change introduced by Law No.  364-FZ was to extend the application of 
preliminary interim i njunctions to all copyright works, except photographs, whereas  under Law No.  
187-FZ, the preliminary interim injunctions could only be used against online copyright 
infringement of video content.  
3.277.   Law No.  187-FZ provided for the exclusive jurisdiction of t he Moscow City Court 
(Mosgorsud), not the IPR Court, to grant preliminary interim injunctions in case of online 
infringement  (except photographic works and work, obtained in ways similar to photography) and 
to hear subsequent cases  in this regard. With the  extended scope of the subject matter protectable 
by the preliminary interim injunctions, Mosgorsud's authority has also been extended to hear all 
online copyright infringement cases.  
3.278.   In addition, Law No.  364-FZ provides that Mosgorsud can issue permanent  injunctions on 
websites, i.e.  to block websites, in cases of repeat infringement.194 All the injunctions issued by 
Mosgorsud are executed by Roskomnadzor. From August 2013 to April 201 6, Mosgorsud issued 
788 preliminary  injunctions in relation to online cop yright and/or related rights  infringement, and 
24 websites were blocked permanently.  
3.279.   Law No.  364-FZ also introduced an out -of-court procedure against copyright infringement, 
according to which the copyright holder can address a notice to the relevant webs ite owner 
accompanied by supporting documentation about the illegal content available on the website. The 
website owner has one day to take down such content, unless he has proof that it was published 
legally.  
3.280.   According to the Ministry of Telecom and Mass  Communication  (October 2015) , the 
number of consumers who paid royalties for online copyright content  increased from 4 million to 
18 million since 2012.195 It is expected that the number will reach 30 million by 2018 .  
 
                                                
193 Law No. 311 -FZ, A rticles 306.5 and 307.2.  
194 Law No. 364 -FZ "Introduction of Amendments into the Federal Law on Information, on Information 
Technology, and on Protecting Information and int o the Civil Procedure Code", 24 November 2014 , Artic le 3 
introducing Article 15.6.  
195 Ministry of Telecom and Mass Communication  (2015).  WT/TPR/S/345 • Russian Federation  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture , forestry, and fishing  
4.1.1    Agriculture  
4.1.1.1   Overview  
4.1.  In 201 5, agriculture, hunting, and forestry contributed 4. 2% to the GDP of the Russian 
Federation (see Section 1.1) and about 9% to employment. Agricultural land represents about 
13% of the total land territory  or about 196.2 million hectares , including 115.1 million hectares  of 
arable land, 4.3 million hectares  of fallow, 1.2 million hectares  of perennial crops, 18.7 million 
hectares of permanent meadows , and 57.0 million hectares  of pastures.1  
4.2.  With such a lar ge area of agricultural land, different climates, growing seasons, and soil 
types, the Russian Federation produces a wide variety of agricultural products , with a total value of 
product ion (at farm gate prices) of Rub  3,472 billion in 2014. Despite the wid e variety of 
agricultural production, five products represent over half the value of production (dairy milk, 
wheat, potatoes, pig meat, and poultry meat). In nominal terms, the value of agricultural output 
has increased substantially over the past ten year s; although droughts in 2010 and 2012 caused a 
drop in those years , output recovered quickly. However, in quantity terms , the increase has been 
more modest and different products have shown different trends: milk and beef output has 
declined; while maize, sunflower seeds, refined sugar, pig meat, and poultry meat have increased 
by more than 5% per year on average over the past ten years (Table 4.1).  
Table 4.1 Production of selected agricultural products, 2004 a nd 2011 -14 
 2004  2011  2012  2013  2014  
Value of production (R ub) 
Total  1,097,333  2,822,704  2,753,825  3,099,869  3,472,094  
Milk 185,368  447,311  432,006  484,644  604,997  
Wheat  147,297  287,274  241,747  349,789  404,035  
Potatoes  131,241  336,881  225,691  285,289  401,259  
Pig meat  78,977  239,384  268,852  193,154  322,145  
Poultry meat  62,166  237,415  269,693  280,224  256,689  
Beef and veal  77,195  193,751  215,686  209,964  216,644  
Eggs 59,595  104,300  113,660  131,976  142,506  
Barley  42,959  84,453  82,359  98,126  110,235  
Sunflower  28,995  110,202  99,577  126,896  101,082  
Refined sugar  15,575  55,953  52,554  49,266  75,183  
Maize  12,251  41,197  55,446  76,570  64,313  
Oats 11,333  23,968  18,512  28,515  26,143  
Rye 7,186  11,657  9,635  16,505  15,359  
Other  237,195  648,958  668,406  768,952  731,504  
Production quantity (000 tonnes)  
Milk 31,861  31,646  31,756  30,529  30,845  
Wheat  45,434  56,240  37,720  52,091  58,994  
Potatoes  27,876  32,681  29,533  30,199  31,110  
Pig meat  1,382  2,067  2,154  1,952  2,480  
Poultry meat  1,156  3,106  3,514  3,618  2,830  
Beef and veal  1,573  1,308  1,321  1,407  1,407  
Eggs 1,994  2,284  2,335  2,294  2,324  
Barley  17,088  16,938  13,952  15,389  19,984  
Sunflower  4,810  9,697  7,993  10,554  8,764  
Refined sugar  2,236  4,753  4,877  4,468  4,552  
Maize  3,373  6,962  8,213  11,635  11,091  
Oats 4,637 5,332  4,027  4,932  5,265  
Rye 2,864  2,971  2,132  3,360  3,274  
Source:  OECD Producer and Consumer Support Estimates database. Viewed at: 
http://ww w.oecd.org/tad/agricultural -policies/producerandconsumersupportestimatesdatabase.htm  
[May 2016].  
                                                
1 Ministry of Agriculture of the Russian Federation.  WT/TPR/S/345 • Russian Federation  
 
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  4.3.  According to the FAO, the Russian Federation is a major producer of several agricultural 
products: in terms of quantity, in 2013 it was ranked first in the wo rld for sugar beet, barley and 
oats; third for potatoes; and fourth for wheat production.2 
4.4.  Privatization of agricultural land in the Russia n Federation  began in the early 1990s under a 
number of decrees and, since the early 2000s, under the procedures set out in the Land Code of 
the Russian Federation, and Law No.  101-FZ of 24 July 2002 "On Circulation of Agricultural Land" 
as well as other legislative acts. At mid -2016, about 67% of agricultural land was owned by the 
state or municipal authorities and the rest was owned by the private sector. Foreign ownership of 
agricultur al land is not permitted, although foreigners and foreign legal entities may rent land for 
up to 49 years , and it has been reported that a foreign owned company registered in the Russian 
Federation may buy farmland.3  
4.5.  According to one report, at the time of the last agricultural census in 2006, 98% of farms 
were owned by private households or other individual operators but they represented about 2% of 
agricultural land. Other categories of  holdings, which included agricultural enterprises, institutional 
farms, private farms, individual entrepreneurs and non -profit citizen associations , accounted for 
the other 2% of holdings and 98% of agricultural land.4  
4.6.  According to the Federal State Stat istics Service, about 49% of the total value of agricultural 
production is from agricultural enterprises, 41% from household enterprises, and 10% from 
peasant farm enterprises.5 Another report stated that these classifications correspond roughly to 
corpora te farms, household plots, and commercial family farms , respectively , and that the 30 
largest holdings farm 6.7 million hectares.6 
4.1.1.2   Trade  
4.7.  In 2015, the total value of agricultural exports (WTO definition7) was US$ 13.4 billion and the 
total value of imports was US$25.4 billion. During the 2012 -15 period, in value terms, exports and 
imports of agricultural products fluctuated, with a decline in 2015 compared to 2014. The main 
export (at HS  12, 6 -digit level) throughout this period was wheat, which represented over 29% of 
the total value of agricultural exports, followed by barley, crude sunflower oil, and maize. Imports 
were less concentrated than exports with the top five imports representing 18% of total imports of 
agricultural products (Table 4.2).  
Table 4.2 Trade in selected agricultural products , 2012 -15 
(US$ million)  
  2012  2013  2014  2015  2015 Top 4 
destinations/sources  
Exports  
Total agricultural exports  14,268  13,509  16,135  13,379   
of which        
100199 Wheat  4,476  3,469  5,387  3,916  Egypt, Turkey, Iran, 
Azerbaijan  
100390  Barley  897  553  783  943  Kingdom of Saudi 
Arabia, Iran, Kuwait, 
Jordan  
151211  Sunflower -seed or safflower oil 
and fractions thereof: Crude oil  1,300  1,046  1,027  794  Turkey,  Egypt, Sudan, 
China  
100590  Maize  573  590  700  598  Turkey, Rep. of Korea, 
Azerbaijan, Iran  
240220  Cigarettes containing tobacco  485  502  564  518  Azerbaijan, 
Kazakhstan, Ukraine, 
Georgia  
                                                
2 FAOStat online information. Viewed at: http://faostat3.fao.org/home/E  [June 2016].  
3 Rylko et al. (2015).  
4 Lowder et al. (2014), p. 2.  
5 Federal State Statistics Service online information. Viewed at: 
http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/en/gigures/agriculture/  [June 2016].  
6 Davydova, I. and Franks, J.R. (2015), pp. 133 -159.  
7 For the purposes of this section of the Trade Policy Review Report, the definition of  agricultur al 
product s used is that set out in Annex 1 of the Agreement on Agriculture where fish and fish products are 
taken to include tariff lines under HS 2012 Headings 020840, 03, 05 0800, 050900, 051191, 1504, 1603, 1604, 
1605, and 230120.  WT/TPR/S/345 • Russian Federation  
 
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    2012  2013  2014  2015  2015 Top 4 
destinations/sources  
151219  Sunflower -seed or safflower oil 
and fractions thereof  361  429  434  397  Uzbekistan, 
Kazakhstan, 
Kyrgyzstan, Belarus  
180690  Chocolate and other food 
preparations containing cocoa  309  390  372  287  Kazakhstan, Belarus, 
Kyrgyzstan, China  
150710  Soya-bean oil: Crude oil  129  160  269  270  Algeria, Tunisia , 
Egypt, China  
230630  Oil-cake and other solid residues: 
Of sunflower seeds  376  370  373  252  Turkey, Latvia, Italy, 
Denmark  
230400  Oil-cake and other solid residues 
resulting from the extraction of 
soya bean oil  16  127  316  226  Poland, Uzbekistan, 
Netherlands, Norway  
Imports  
Total agricultural imports  38,538  40,629  37,702  25,429   
of which        
020230  Meat of bovine animals, frozen, 
boneless  2,559  2,349  2,160  1,088  Brazil, Paraguay, 
Belarus, India  
120190  Soya beans, whether or not 
broke n 440  674  1,146  939  Paraguay, Brazil, 
United States, Croatia  
080390  Bananas, including plantains, fresh 
or dried  921  996  958  910  Ecuador, Costa Rica, 
Philippines, Mexico  
020329  Meat of swine, frozen  1,999  1,794  1,320  824  Brazil, Chile, China,  
Paraguay  
240120  Tobacco, partly or wholly 
stemmed/stripped  928  928  852  790  Brazil, India, United 
States, Malawi  
070200  Tomatoes, fresh or chilled  887  1,104  1,045  676  Turkey, China, 
Morocco, Azerbaijan  
151190  Palm oil and its fractions, whether 
or not refined, but not chemically 
modified  752  689  640  640  Indonesia, 
Netherlands, Malaysia, 
Germany  
080520  Mandarins (including tangerines 
and satsumas); clementines, 
wilkings and similar citrus hybrids  747  811  728  612  Turkey, Morocco, 
Pakistan,  China  
040690  Cheese and curd: other cheese  1,433  1,685  1,231  582  Belarus, Argentina, 
Uruguay, Armenia  
090240  Tea, whether or not flavoured. // -
Other black tea (fermented) and 
other partly fermented tea  448  464  477  508  Sri Lanka, India, 
Kenya, I ndonesia  
Source:  UNSD , Comtrade  database . 
4.1.1.3   Policies  
4.8.  For the agricultural sector, Section XXV of the EAEU Treaty sets out the basic objectives and 
a coordinated policy for the EAEU. According to Article 94 of the EAEU Treaty, the objectives of the 
coordinat ed policy include:  
 balanced development of production and markets for agricultural products;  
 fair competition among the entities of the member States of the EAEU, including equal 
access to the common agricultural market;  
 standardization of requirements related to the circulation of agricultural goods; and  
 protection for producers of agricultural goods in the member States on domestic and 
foreign markets.  
4.9.  Further details on the implementation of the coordinated policy are contained in EAEU 
Decision No. 9 4 of 21 November 2014 "On schedule of activities for implementation of the CU and 
SES [Single Economic Space] Member -States' Coordinated Agricultural Policy Concept". Among the 
EEC decisions relating to the coordinated agricultural policy is No. 79 of 15 J uly 2015 "On fulfilling 
obligations to provide information on state support to agriculture in 2015" with the aim of  
information  sharing  on support to agriculture in the member States of the EAEU.  
4.10.   At the national level, the Ministry of Agriculture is respon sible for agricultural policy and 
legal regulation in the Russian Federation and the subjects of the Federation are responsible for 
implementing the policy. In addition to its role relating to SPS measures (Section 3.1.9), the 
Federal Service for Veterinar y and Phytosanitary Supervision  (Rosselkhoznadzor) has some 
responsibilities relating to agricultural production, such as soil fertility, quality (as well as safety) of 
grains, cereals and compound animal feeds and their production components, grain produc tion by -
products, and legal issues relating to land use.  WT/TPR/S/345 • Russian Federation  
 
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  4.11.   The basic laws relating to agriculture include Law No.  264-FZ of 29 December 2006 "On 
agricultural development" (as amended) , while there are many other legislative acts referring to 
specific aspects , such as Law No.  913-FZ of 8 December 1995 "On agricultural cooperation" (as 
amended), Law No.  133-FZ of 7 July 2003 "On subsidiary small -holding", Law No.  74-FZ of 
11 June 2003 "On peasant farms", Law No.  260-FZ of 25  July 2011 " On state support in the 
sphere of agricultural insurance" , and the Land Code of the Russi an Federation (No. 136 -FZ of 
25 October 2001).  
4.1.1.3.1   Trade policies  
4.12.   There are 2,6 34 tariff lines for agricultural products at the ten -digit level in the Russian 
Federation and the average tariff on agricultural products in 201 6 was 14.6%, compared to an 
overall average of 8.3%. There is considerable variation among product groups, and within product 
groups with cotton imports duty-free, while tariffs on animals and animal products range from zero 
to 114% with a simple average of 3 3%, and tariffs on sugars and confectionary range from 2 to 
149% and average 23% (Section 3.1.4.2 and Table A3.1).  
4.13.   In August 2014, imports of specific agricultural products from Australia, Canada, the 
European Union , Norway, and the United States were banned for one year. The ban was extended 
for another year in June 2015 and Albania, Iceland, Liechte nstein, Montenegro, and (from 
1 January 2016) Ukraine were added to the list of countries affected. In November 2015, imports 
of specific agricultural goods from Turkey were also banned (Section 3.1.6).  
4.14.   In acceding to the WTO, the Russian Federation bound six tariff quotas (TQs) in its Schedule 
for: fresh and chilled beef; frozen beef; fresh, chilled and frozen pork; pork trimming;  fresh, 
chilled or frozen poultry; and for whey and modified whey. According to the notification to the 
WTO Committee on Agriculture the TQ for fresh, chilled or frozen poultry is applied as three 
separate quotas.8  
4.15.   According to the EAEU Treaty, the Eurasi an Economic Commission is the competent 
authority for TQ establishment within the EAEU and allocation of tariff quota volume s among the 
member States. The authorities stated that the volume of TQs for EAEU member States that are 
WTO Members and have TQ com mitments in their schedules can be based on the TQ commitments 
of that EAEU member  State . Each year the Eurasian Economic Commission adopts a decision 
concerning TQ volumes for each EAEU member State for the following year.  
4.16.   In the Russian Federation, the Ministry of Economic Development is responsible for 
allocation of TQs among importers with allocations based on historical imports. Then, based on an 
importer 's application, the Ministry of Industry and Trade may issue a licence for imports under the 
TQ. T he licence is valid for one calendar year. Fill rates among the TQs vary from one quota to 
another and from one year to another (Table 4.3).  
Table 4.3 Tariff quotas and imports under tariff quotas, 2013 -15 
(Tonnes)  
 Tariff quota  2013  2014  2015  
Fresh and chilled beef  40,000  17,196  12,818  1,408  
Frozen beef  530,000  477,760  448,566  264,009  
Fresh, chilled or frozen pork  400,000  428,260  299,873  256,251  
Pork trimming 30,000  .. .. .. 
Fresh, chilled or  frozen poultry  250,000  244,529  179,234  50,885  
 100,000  62,373  66,497  13,957  
 14,000  6,629  5,673  3,643  
Whey and modified whey  15,000  ..   ..   ..   
.. Not available.  
Source:  WTO documents G/AG/N/RUS/4, 10 April 2014; G/AG/N/RUS/8, 27 May 2 015; and G/AG/N/RUS/12, 
26 April 2016.  
4.17.   According to the notifications by the Russian Federation to the Committee on Agriculture, 
the Russian Federation did not provide export subsidies for agricultural products for the years 
                                                
8 WTO docum ent G/AG/N/RUS/2, 5 February 2014.  WT/TPR/S/345 • Russian Federation  
 
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  2012-15.9 Support to exports of  agricultural products is provided by EXIAR, Eximbank of Russia , 
and the Russian Export Hub.  
4.18.   Amongst other products (Section 3.2 .2), export duties are applied to exports of:  
 raw hides and skins at €300 per tonne;  
 oil seeds: at 6.5% but not less than €11.4  per tonne for rape/colza seeds; and 9.88% 
but not less than €14.81 per tonne for sunflower seeds; and  
 wheat at 50% minus R ub 6,500 per tonne, but not less than R ub 10 per tonne (HS 1001 
91 900 0) or 50% minus R ub 5,500 per tonne, but not less than R ub 50 per tonne 
(HS 1001 99 000 0).  
4.19.   Import duties are also used to stabili ze domestic prices for agricultural products. In 2015, 
the EAEU reduced import duties on some vegetable oils for industrial use, some products 
containing sugar, potatoes for starch, some v egetables, some dairy products, and some meat 
products.10 
4.1.1.3.2   Domestic policies  
4.20.   The State uses a variety of policy instruments to stabili ze domestic prices for wheat, rye, 
barley and maize, including public intervention programmes based on prices set by the Min ister of 
Agriculture, and export duties for wheat ( below ). It was reported that, between October 2012 and 
July 2013, 3.4 million tonnes of wheat were released from the Intervention Fund to reduce 
domestic prices , and, in 2013 -14, 0.6 million tonnes were re moved from the market.11 Other 
reports stated that 1.7 million tonnes were purchased by the Intervention Fund in 2015 -16 for 
Rub 17.7 billion , bringing total stocks to 3.15 million tonnes.12  In October 2015, intervention 
prices for these products were incre ased and were set at the same level of each product for all 
regions of the Russian Federation:  
 for wheat, the intervention price for class 3 milling wheat was R ub 10,900 per tonne, for 
class 4 milling wheat R ub 10,400, and class 5 feed wheat R ub 8,800;  
 for food quality rye R ub 7,400;  
 for fodder barley R ub 7,500; and  
 for maize R ub 6,900.13 
4.1.1.3.2.1   State Programme for Agricultural Development  
4.21.   Current agricultural policy is based on the Decree of the President No. 120 of 
30 January  2010 "On the approval of the Food Se curity Doctrine of the Russian Federation" (as 
amended) , which sets self -sufficiency targets for key foodstuffs (80 -95% for grains, sugar, 
vegetable oil, meat and meat products, milk and milk products, fish and fish products, and salt). 
National policy is currently being implemented through a seven -year programme introduced in 
2012 (Government Resolution No. 717 of 14 July 2012 "On State Programme for agricultural 
development and regulation of farm product, raw materials and foodstuffs markets for 2013 -
2020"), which was amended in April 2014 and again in December 2014 . The Programme  includes 
several sub -programmes and federal targeted  programmes ( Table 4.4). The principal objectives of 
the State Programme include:  
 improving producti on and competitiveness of agricultural products on domestic and 
foreign markets;  
 improving the financial stability of agricultural producers;  
 securing epizootic welfare;  
                                                
9 WTO documents G/AG/N/RUS/3, 18 March 2014; G/AG/N/RUS/6, 6 March 2015; and G/AG/N/RUS/10, 
1 February 2016.  
10 Ministry of Agriculture (2016).  
11 OECD (2015d).  
12 Blackseagrain (2016).  
13 Ministry of Agriculture Order No. 4 60 of 5 October 2015 "On amendments to the Order of the Ministry 
of Agriculture No. 119 of 31 March 2015".  WT/TPR/S/345 • Russian Federation  
 
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   sustainable development of rural areas;  
 regeneration and effective use of land and oth er agricultural resources and 
environmentally friendly production; and  
 providing marketing assistance for, and seasonal storage of agricultural products.  
4.22.   The State Programme was allocated total federal funding of Rub 1,509.7 billion, including 
Rub 158.9 bi llion in 2013, Rub 162 billion in 2014, and Rub 175.4 billion in 2015. The Programme 
was amended in April 2014 and the allocations were reduced for 2015 to Rub 166 billion and for 
2016 to R ub 165 billion.14 However, following a further amendment in December  2014 funding was 
increased, new sub -programmes introduced and funds were reallocated among the sub -
programmes.15 The total federal allocations to the State Programme and sub -programmes are in 
Table 4.4 , but actual spending varies from one year to another a nd some of the sub -programmes 
are co -funded by the regional authorities.16 
Table 4.4 Federal allocations to the State Programme for Agricultur al Development,  
2013 -2020  
(Rub billion)  
 2013  2014  2015  2016  2017  2018 2019  2020  Programme  
total  
Developing Crop Farming 
and the Processing and 
Sale of Crop Farming 
Products  67.5  39.3  51.8  61.7  75.2  81.8  87.3  90.8  555.4  
Developing Animal 
Husbandry and the 
Processing and Sale of 
Animal Husbandry 
Products  72.3  57.4  30.7  40.0  39.8  37.9  35.2  33.1  346.4  
Developing Beef Cattle 
Breeding  4.9  6.7  6.9  9.3  10.8  11.6  12.6  13.6  76.5  
Supporting Small 
Businesses  8.6  8.2  9.8  15.8  17.9  17.2  18.2  18.6  114.3  
Technical and 
Technological 
Modernization, I nnovative 
Development  5.3  1.9  3.1  4.1  4.2  4.3  4.3  4.4  31.6  
Ensuring the 
Implementation of the 
State Programme  21.4  37.4  24.0  25.5  29.8  29.4  30.2  31.2  229.0  
Federal targeted 
programme – Social 
Development of Villages  9.0  .. .. .. .. .. .. .. 9.0  
Federal targeted 
programme – 
Conservation and 
Restoration of Soil 
Fertility  6.6  .. .. .. .. .. .. .. 6.6  
Development of Open -
field and Protected -
Culture Production of 
Vegetables and Potato 
Seed Breeding Industry  .. .. 5.0  7.0  7.7  7.8  7.7  7.8  43.0  
Developing Dairy Cattle 
Breeding  .. .. 24.2  34.3  42.3  45.4  49.3  51.8  247.4  
Support of the Pedigree 
Breeding Industry, Seed 
Breeding Industry  .. .. 7.2  12.7  14.2  14.2  14.4  14.6  77.3  
Development of 
Wholesale Distribution 
Centres  and Social 
Catering Infrastructure  .. .. 2.4  10.3  14.2  15.8  17.0  19.5  79.3  
                                                
14 Government Resolution No. 315 of 15 April 2014 "On Amendments to the State Programme for 
agricultural development and regulation of agricultural co mmodities markets in 2013 -2020".  
15 Government Resolution No. 1421 of 19 December 2014 " On Amendments to the State Program me for 
agricultural development and regulation of agricultural  product s, raw materials and food for 2013 -2020" . 
16 Krivonos, E. (2014).  WT/TPR/S/345 • Russian Federation  
 
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   2013  2014  2015  2016  2017  2018 2019  2020  Programme  
total  
Development of Credit & 
Financial System in the 
Agro-Industrial Complex  2.0  ..  11.2  11.3  20.9  21.6  21.7  88.7  
Federal targeted 
programme – Sustained 
Development of Rural 
Areas in 2014 -2017 and 
to 2020  .. 11.3  14.0  16.1  20.3  23.1  25.9  28.9  139.6  
Federal targeted 
programme – Developing 
Agricultural Land 
Amelioration in Russia in 
2014-2020 .. 7.9  8.6  10.0  12.6  14.5  14.1  14.4  81.9  
Annual total  197.7  170.2  187.9  258.1  300.2  324.0  337.8  350.4  2,126.2  
.. No allocation.  
Source:  Government Resolution No. 1421 of 19 December 2014 " On Amendments  to the State Programme 
for agricultural development and regulation of farm product, raw materials and foods tuffs markets 
for 2013 -2020".  
Sub-programme: Developing Crop Farming and the Processing and Sale of Crop Farming 
Products17 
 
4.23.   There are several project s under the sub-programme for crop farming and the processing 
and sale of crop farming products, some of wh ich are directed at increasing production of crops 
throughout the Russian Federation while others are targeted at specific regions.  
(i) Under the project  for horticultural development, support and care for perennial plants and 
vineyards , there are four sub -plans providing subsidies for the maintenance of vineyards 
and orchards, uprooting old ones, building and moderni zing storage facilities, and the 
purchase of machinery and equipment. In 2015, the total federal budget provided for 
support for the development o f perennial plants and vineyards was R ub 2,311.3 million and 
for the stubbing up of old fruit and berry plantations  it was  Rub 103.6 million.  
(ii) Under the project  for support for economically significant programmes for crops , support is 
provided for specific regional programmes. In 2015, the Ministry of Agriculture selected 
20 regional programmes for agricultural development , including  flax cultivation, rice 
cultivation, post -flooding land recovery, and animal feeds. In 2015, R ub 960.3 million in 
federal funds  was provided to co -finance these plans.  
(iii) Under the project  for support for agricultural producers in the Far North and equivalent 
areas, subsidies are provided for the purchase and delivery of seeds for the cultivation of 
grasses, grains, and legumes. In 2 015, the subsidy from the federal budget covered 85.4% 
of the cost of purchase and delivery but lack of funding meant not all demand was met. The 
total federal spending for seed purchase and delivery in 2015 was R ub 247.1 million. In 
addition, subsidies fo r crop production are intended to compensate for the high costs 
associated with production in the Far North and the federal budget provided 
Rub 445.5  million in 2015.  
(iv) Under t he project  for support for lending to sub -sectors for crop and processing of its 
products, development of infrastructure and logistics markets for crop production , subsidies 
are provide d for: 
  reimbursement of interest payments  on short -term credits for crop development, 
processing and marketing of crop production ; and   
 
  reimbursement of interest payments  on investment loans for crop development, 
processing and development of infrastructure and logistics markets for plant 
production.  
                                                
17 The primary source for the information on the sub -programmes and federal targeted programmes is 
Ministry of Agriculture (2016) (Russian only).  WT/TPR/S/345 • Russian Federation  
 
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  (v) In January 2015, the Ministry of Agriculture increased the rate of federal subsidy for interest 
payment s on short -term loans to two  thirds of the Central Bank's refinancing rate (14.68%) , 
while the regional subsidy for interest payments on short -term loans stayed at between 20% 
and one  third of the refinancing rate. As a result , the cost of short -term borro wing for 
agricultural producers was 2 -5% in 2015, and the value of the subsidy increased , from 
Rub 9.8 billion in 2014 to R ub 22.9 billion in 2015 (Table 4.5).  
(vi) The subsidy rate for loans for investment s was increased to 100% of the refinancing rate in 
2015. However, investment loans declined , leading to a fall in spending in 2015 compared to 
2014 (Table 4.5). Most investment lending is for modernization, horticulture, processing of 
protein crops, and the sugar industry.  
Table 4.5 Subsidies for interest payments for crop production, 2013 -15 
(Rub billion)  
Year Federal budget  Regional budgets  Total  
Short -term debt  
2013 19.0 2.9 21.9 
2014 7.6 2.2 9.9 
2015 20.2 2.7 22.9 
Investment loans  
2013 12.9 2.2 15.2 
2014 17.9 2.6 20.5 
2015 14.9 2.8 17.7 
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and  food for 2013 -2020, 11 May, Table s 3.9 and 3.12.  
(vii) The project  for risk management in the crop sub -sectors provides support for crop insurance 
for loss of 25% or more of production resulting from natural events (20% from 2016 
onwards). In 2015, 8.3 million hectares, or 10.9% of total sown area , were covered by 
insurance and the total support provided was R ub 4,278 million (Table 4.6).  
Table 4.6 Subsidies for insurance premiums for crops, 2013 -15 
(Rub billion)  
Year Total 
premiums  Federal budget  Regional budgets  Total  
2013 10.65  4.57 0.69 5.26 
2014 12.27  4.89 1.14 6.03 
2015 8.71 3.88 0.40 4.28 
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 2.18.  
(viii)  In addition to changes in import and export duties for some products , the project  for the 
regulation of markets fo r plant products provides federal funds for government agencies to 
carry out their functions, including intervention purchases ( see above ). 
(ix) The project  for decoupled income support for crop producers provides subsidies for each 
hectare of sowing area which , in 2015, was set at RUB 493.5 per hectare, of which RUB 
308.3 was provided from the federal budget. A total of RUB 22.8 billion was provided for 
these payments in 2015. According to the Ministry of Agriculture, the payments are 
primarily directed at the purchase of fuel, fertilizer, crop -protection chemicals, and seeds.  
Sub-programme: Developing Animal Husbandry and the Processing and Sale of Animal 
Husbandry Products  
 
4.24.   The aims of the livestock sub -programme include increasing the volume of production of 
animal products, develop ing the processing industry, improv ing and protect ing animal health, 
reduc ing imports, and increas ing exports. The sub -programme is implemented through eight 
project s, some of which are targeted at specific products and others provi de support for livestock 
production and processing generally.  WT/TPR/S/345 • Russian Federation  
 
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  (i) The project  for the development of sheep and goat breeding provides direct support for 
sheep and goat breeding in order to increase production of sheep and goat meat, and wool 
(Table 4.7).  
Table  4.7 Subsidies for development of sheep and goat breeding, 2014  and 2015  
(Rub million)  
Year Federal budget  Regional budgets  Total  
2014 620.3  106.7  727.0  
2015 735.5  93.4 826.1  
Source:  Ministry of Agriculture  (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 3.6.  
(ii) The project  for the  develop ment of deer and horse breeding is  intended  for raising reindeer 
and traditional horse breeds in specific territories, including in the Far North, Siberia, and 
the Far East (Table 4.8). 
Table 4.8 Subsidies for  development of deer and horse breeding, 2014  and 2015  
(Rub million)  
Year Federal budget  Regional budgets  Total  
2014 170.9  1,507.2  1,678.1  
2015 380.2  1,429.3  1,809.5  
Source:  Ministry of Agriculture (2016), National report on progress and results of the  implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 3.7.  
(iii) Under the project  to prevent the spread  of and eradicate African swine fever (ASF) , funds 
are provided for research, laboratories and related infrastructure. In 2015, total funds 
provided were R ub 830.9 million, of which 64.4% was provided from the federal budget.  
(iv) The project  to control epizootic diseases aims to prevent the outbreak an d spread of 
infectious animal diseases and eliminate any such diseases where they are present in the 
Russian Federation. Under the project , the Ministry of Agriculture provides support to the 
relevant state agencies under its control for the manufacture an d delivery of veterinary 
medicines. In addition, the Ministry invites tenders for the supply of veterinary medicines 
and services. In 2015, R ub 1,743.6 million was provided from the federal budget for this 
project . 
(v) Under the project  to support economically  significant programmes for livestock, support is 
provided for specific regional programmes. In 2015, the Ministry of Agriculture concluded 
agreements with 11 regions related to prevention of, or recovery from swine fever. The total 
support provided by the  federal  and regional authorities for approved plans was 
Rub 523.6  million in 2015 (Table 4.9).  
Table 4.9 Economically significant programmes for livestock, 2013 -15 
(Rub million)  
Year Federal budget  Regional b udgets  Total  
2013 300.0  325.6  625.6  
2014 297.5  222.1  519.6  
2015 398.0  125.6  523.6  
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regu lation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 3.8  
(vi) The project  for state support for lending to the livestock sector, processing, infrastructure, 
and logistics provides interest subsidies for short -term and investment loans for livestock in 
a similar way to lending to the crop sector (see above) (Table 4.10). Out of a total of 
Rub 129.8 billion in credits for investment lending, nearly all (87%) was for investment in 
poultry and pig farming.  WT/TPR/S/345 • Russian Federation  
 
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  Table 4.10 Subsidies for interest payments for livestock production, 2013 -15 
(Rub billion)  
Year Federal budget  Regional budgets  Total  
Short term debt  
2014 8.60 1.50 8.30 
2015 8.35 1.27 9.62 
Investment loans  
2013 34.80  5.7 40.5 
2014 46.20  7.4 53.6 
2015 27.90  5.4 36.3 
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Tables 3.9 and 3.12.  
(vii) Under the project  for risk management for livestock, subsidies are provided which amounted 
to 48.3% of the insurance premiums in 2015, mostly from the federal  budget (Table 4.11).  
Table 4.11 Subsidies for insurance premiums for livestock, 2013 -15 
(Rub billion)  
Year Total premiums  Federal budget  Regional budgets  Total  
2013 417.1  166.0  40.5 206.5  
2014 813.6  291.3  101.9  393.2  
2015 839.4  362.3  42.7 405.0  
Source: Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Tables 3.17  and 3.18.  
(viii)  The project  for the development of wool production provided R ub 32.1 million in 2015 
(Rub 24.4 from the federal  budget, and R ub 7.7 million from regional budgets) for 
increasing wool production and improving quality.  
Sub-programme: Developing Be ef Cattle Breeding  
 
4.25.   The sub -programme for the development of beef cattle includes se veral project s for 
increasing production, better breeding, and building infrastructure. Total funding for the sub -
programme in 2015 was R ub 6,949 million, of which R ub 4,574 was provided from the federal 
budget.  
(i) Under the project  for supporting economically significant programmes for beef cattle, 
support is provided for programmes to increasing productivity through better use of 
technology, feeds and improving pastures. In 2 015, total support for the project  was 
Rub 3,545. 7 (Table 4.12)  
Table 4.12 Economically significant programmes for beef cattle, 2013 -15 
(Rub million)  
Year Federal budget  Regional budgets  Total  
2013 2,000.0  1,510.3  3,510.3  
2014 1,900.0  1,619.6  3,519.6  
2015 2,372.8  1,172.9  3,545.7  
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of a gricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 4.5.  
(ii) The project  for support for the construction and reconstruction of facilities for beef cattle 
provides interest rate subsidies for selected investment projects. In 2015, R ub 5.24 billion 
was provided, mostly from the federal  budget (Table 4.13). In 2015, 85 investment projects 
were selected with total borrowing of R ub 32.9 billion .  WT/TPR/S/345 • Russian Federation  
 
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  Table 4.13 Interest rate subsidies for selected inv estment projects, beef, 2014  and 2015  
(Rub billion)  
Year Federal budget  Regional budgets  Total  
2014 3.15 0.44 3.54 
2015 4.89 0.35 5.24 
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Tables 3.17 and 3.18.  
Sub-programme: Supporting Small Businesses  
 
4.26.   The objective of the sub -programme for support for small fa rmers is to support the 
development of farming and non -farming activities on small farm holdings, improve the quality of 
life in rural areas, and increase revenue and reduce costs for small -scale producers through their 
participation in agricultural cooper atives.  
(i) Support is provided for people starting in farming , with 1,067 farmers given an average 
grant of R ub 1.14 million in 2015. Funding provided from the federal  budget was 
Rub 3.2 billion in 2015.  
(ii) In 2015, 953 farms received an average of R ub 4.35 mill ion in support under the project  for 
the development of family livestock farms. The federal  budget provided R ub 3.075  billion in 
2015.  
(iii) Grant support is provided for agricultural cooperatives for: the construction, renovation, or 
modernization of buildings;  laboratory equipment; production equipment; and transport 
equipment. The federal  budget provision for 2015 was R ub 0.4 billion.  
(iv) State support is provided for interest on loans taken by small farms, cooperatives, and 
agricultural organizations. The federal  budget provision for 2015 was R ub 7.216 billion.  
(v) Support is provided for land registration for small farms , with federal  funding of 
Rub 0.043  billion in 2015.  
Sub-programme: Technical and Technological Modernization, Innovative Development  
 
(i) The project  for modernization of agricultural equipment provides support to producers of 
agricultural machinery for discounted sales for equipment listed in Government Decree 
No. 1432 of 27 December 2012 "On approval of the rules for granting subsidies for 
agricultural  machinery and equipment". In 2015, 41 agricultural enterprises had grant 
agreements with the Ministry of Agriculture to provide discounts for 59 articles of machinery. 
Total subsidies paid were R ub 5,194.9 million.  
(ii) Spending under the project  for implemen tation of innova tive programmes in 2015 was 
Rub 70 million for an agreement on integrated energy efficient recycling of sewage and 
waste from food industry enterprises and the development of new harvesting technologies.  
(iii) The project  for development of biote chnologies was supported by the provision of 
Rub 475.0 million  in 2015.  
Sub-programme: Ensuring the Implementation of the State Programme of the Russian 
Federation "State Programme for agricultural development and regulation of agricultural 
products, raw m aterials and food for 2013 -2020"  
 
4.27.   The sub -programme on implementation of the programme of agricultural development is 
divided into several project s intended to ensure the administrative resources are available to 
implement the plan and to provide for a sui table business environment for agriculture.  
(i) The first project  under the sub -programme provides for training of public authorities.  
(ii) The sub -programme includes a project  for the simplification and reduction of taxes paid by 
farmers and farming enterprises, including a single farming tax which would exempt the 
payer from income tax, VAT, and property tax.  WT/TPR/S/345 • Russian Federation  
 
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  (iii) The project  for financial recovery for restructuring debts of farm organizations is based on 
Law No.  83-FZ of 9 July 2002 "On financial recovery of agricul tural producers". From 2003 
to 2015 . It has benefited 13,273 agricultural producers whose restructured debts amounted 
to Rub 88.2 billion.  
(iv) The project  for public services provides funding for agencies that provide agricultural 
services, such as land recla mation, agro -chemicals, training, equipment, research and 
development, etc. The funds are provided for services for dissemination of technological 
information, testing of systems, and the creation of a technology database.  
(v) The organization of information s ystems, databases, and data storage systems provides 
funds for information and data systems.  
(vi) The project  for monitoring agricultural land provides for the creation of a single federal  
information system for agricultural land and land use.  
(vii) In 2015, the project to ensure surveillance functions for veterinary and phytosanitary 
surveillance provided R ub 10,026.7 million for Rosselkhoznadzor 's operations.  
(viii)  The Ministry of Agriculture has developed the regulatory framework to respond to natural 
disasters with comp ensation for costs incurred by agricultural producers for the resulting 
damage , enabling it, in 2015, to respond to natural disasters in 14 regions , which resulted in 
Rub 7.1 billion in costs to agricultural producers and 2.02 million hectares in crop loss es. In 
response, the federal  and regional authorities provided R ub 4,676.6 million, in addition to 
Rub 2,597.1 million for natural disasters in 2014.  
Sub-programme: Development of Open -field and Protected -Culture Production of 
Vegetables and Potato Seed Br eeding Industry  
 
4.28.   The sub -programme on horticulture and seed potatoes on open and protected grounds 
includes two projects for open -field horticulture and seed potatoes production and another for the 
production of vegetables in greenhouses.  
Sub-programme: D eveloping Dairy Cattle Breeding  
 
4.29.   The sub -programme for dairy development aims to increase milk production through 
improving investment conditions, increasing the number of cattle, increasing milk supply and 
improving competitiveness. Total federal  funding in 2015 was R ub 10,468.8 million, of which 
Rub 6,526.6 million was for development, and R ub 3,942.2 was to support borrowing to the 
sector.  
(i) Under the project  for dairy development , subsidies are provided for each kilogram me of milk 
(processing) and support  paid for the costs for establishment and modernization of dairy 
farms (dairy development) (Table 4.14).  
Table 4.14 Funding for dairy development, 2014  and 2015  
(Rub billion)  
Year Federal budget  Regional budg ets Total  
Processing of products  
2014 8.417  8.097  16.514  
2015 1.925  4.944  6.869  
Dairy development  
2014 0 0 0 
2015 6.527  3.779  10.306  
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the  State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 9.8.  
(ii) Under the project  for state support for lending to the dairy industry, subsidies were 
introduced in 2015 for int erest charges on short -term loans taken by dairy producers. In 
addition, interest payments on investment loans are also subsidi zed, and subsidies provided 
for reimbursement of the direct costs in approved investment projects ( Table 4.15). WT/TPR/S/345 • Russian Federation  
 
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  Table 4.15 Interest rate subsidies for dairy producers, 2015  
(Rub billion)  
Year Federal budget  Regional budgets  Total  
Short -term debt     
2015 0.22 0.03 0.25 
Investment loans     
2015 3.72 0.58 4.30 
Direct -cost subsidies     
2015 0.36 0.02 0.38 
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 9.9.  
Sub-programme: Support of the Pedigree Breeding Industry, Seed Breeding Industry  
 
4.30.   The objectives of the sub -programme for breeding and seeds are to develop a competitive 
seed market for agricultural plan ts and the genetic stock for animals. Total funding for the sub -
programme in 2015 was R ub 6,598.9 million divided among six main activities – two of which were 
not funded in 2015.  
(i) The project  for development of elite seeds provided R ub 2,437 million to com pensate for the 
cost of buying top quality seeds in a market , estimated to be worth R ub 42 billion in 2015.  
(ii) The project  to support livestock breeding provides funds for the purchase of pedigree 
livestock, breeding calves, embryos, etc. The total f unding pr ovided in 2015 was 
Rub 6,432.7, of which R ub 4,310.2 was from the federal  budget.  
(iii) The project  for the development of a base for breeding dairy cattle aims to increase milk 
productivity per cow through better breeding.  
(iv) In 2015, support under the project  for the development of a base for breeding beef cattle 
was R ub 726.4 million, of which R ub 376.7 was from the federal  budget.  
(v) The project  for state support for the construction of facilities for breeding, genetics, and 
seed centres includes the establishment  of new (and upgrading of existing ) livestock 
breeding, and seed and plant centres. In 2015, 138 investment projects were selected with 
a total value of subsidies of R ub 12.969 billion.  
(vi) The project  for state support for genetic and seed development for liv estock and crop 
production intends to establish 148 breeding and seed production centres in different soil 
and climatic zones with grants to be provided to reimburse the cost of interest on loans.  
Sub-programme: Development of Wholesale Distribution Centre s and Social Catering 
Infrastructure  
 
4.31.   The objective of the sub -programme for development of wholesale and distribution centres 
and infrastructure is to improve the marketing and marketability of agricultural products by 
creating a network of wholesale and distribution centres for storing, processing, and marketing 
agricultural products.  
(i) Under the project  for development of lending to wholesale and distribution centres and 
infrastructure for production and distribution, subsidies are available for interest o n short -
term loans for processing of crop and livestock products on the same terms as for loans for 
the crop sector ( see above ). In 2015, the total subsidy wa s Rub 5.04 billion, of which 
Rub 4.57 was provided from the federal  budget and the rest from regio nal budgets.  
(ii) The sub -programme includes other project s for part of the construction cost of building 
wholesale and distribution centres, short -term borrowing costs for processing crops and 
livestock, but no support was provided under these project s in 201 5.  WT/TPR/S/345 • Russian Federation  
 
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  Sub-programme: Development of Credit & Financial System in the Agro -Industrial 
Complex  
 
4.32.   The objective of the sub -programme for the development of a financial credit system for the 
agro-industrial sector was introduced at the end of 2014 to encourage in vestment in agriculture, 
including support for import substitution , and reduce climatic and epizootic risks.  
(i) Under the project  for additional capitalization of Rosselkhozbank JSC (the state -owned 
agricultural bank) an additional R ub 10 billion in additiona l capital was provided from the 
federal  budget in 2015. Rosselkhozbank provided R ub 37.2 billion in loans to agribusinesses 
in 2015.  
Federal targeted programme: Social Development of Villages  
 
4.33.   Amongst other objectives, the federal  targeted  programme for t he sustainable development 
of rural areas aims to improve standards of living in rural areas, stimulate investment in the agro -
industrial sector, and encourage the creation of employment in high technology areas though 
provision of infrastructure. In 2015,  total expenditure on the programme was R ub 31.75 billion 
(Table 4.16), most of which was used for capital investment for improvement of living conditions 
(Rub 14.72 billion) and the development of roads (R ub 7.03 billion).  
Table 4.16 Federal targeted  programme for sustainable development of rural areas, 
2015  
(Rub billion)  
 2015  
Total programme  31.745  
Federal budget  12.215  
Regional and local budgets  11.999  
Extra -budgetary sources  7.531  
Capital investme nts – total 16.741  
Federal budget  8.028  
Regional and local budgets  8.117  
Extra -budgetary sources  0.596  
Research and development – total 0.043  
Federal budget  0.043  
Other needs – total 15.000  
Source:  Ministry of Agriculture (2016), National report on progress and results of the implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 13.1.  
Federal targeted programme: Conservation and Restorati on of Soil Fertility  
 
4.34.   The federal  targeted  programme for reclamation of agricultur al land aims to increase 
productivity and sustainability of agricultural production and soil fertility through land 
improvements taking account of global and regional climate  changes and natural disturbances. 
Most of the funding was allocated to capital expenses for irrigation or drainage and related works.  
Table 4.17 Federal targeted  programme for reclamation of agricultural land , 2014  and 
2015  
(Rub billion)  
 2014  2015  
Total programme  20.40  17.48  
Federal budget  7.72 7.84 
Regional and local budgets  2.09 1.72 
Extra -budgetary sources  10.59  7.92 
Source:  Ministry of Agriculture (2016), National report on progress and results of t he implementation in 2015 
of the State Programme for  agricultural development and regulation of agricultural products, raw 
materials and food for 2013 -2020, 11 May, Table 14.1.  WT/TPR/S/345 • Russian Federation  
 
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  4.1.1.3.3   WTO notifications  
4.35.   The Russian Federation has notified o the WTO  of domestic sup port for calendar years 
2012-14 showing support in U .S. dollars.  
4.36.   Support notified under the Green Box increased substantially in 2013 compared to 2012, 
mainly due to the introduction of decoupled income support , and income insurance and income 
safety net  programmes  (Chart 4.1). In all cases, total support is provided by a combination of the 
federal  budget and sub -federal authorities, with the amount of co -financing varying by programme 
and by year. In 2012 and 2013, the sub -federal authorities provided abou t one  quarter and in 
2014 just over 40% of total Green Box support.  
Chart 4.1 Green Box support in the Russian Federation, 2012 -14 
(US$ million)  
 
Source:  WTO document s G/AG/N/RUS/5/Rev.1, 29 January 2016; G/A G/N/RUS/9, 27 May 2015; and 
G/AG/N/RUS/13, 28 April 2016.  
4.37.   Support notified in the Amber Box varies considerably in form and value from one product 
to another: from negative for wheat, barley, and rye to a significant amount relative to the value 
of product ion for deer. However, in most cases product -specific support is below the 5% of the 
value of production de minimis limit.  
4.38.    Most Amber Box support was notified as non -product -specific with subsidies for interest on 
short-term and investment loans represen ting over half the total for non -product -specific support 
(Chart 4.2).  WT/TPR/S/345 • Russian Federation  
 
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  Chart 4.2 Amber Box support i n the Russian Federation 2012 -14 (including de minimis ) 
(US$ million)  
 
Source:  WTO document s G/AG/N/RUS/5/Re v.1, 29 January 2016; G/AG/N/RUS/9, 27 May 2015;  and 
G/AG/N/RUS/13, 28 April 2016.  
4.1.1.3.4   OECD indicators  
4.39.   The OECD has been publishing reviews of agricultural policies in OECD countries, and some 
other economies , for several years. In these publications, the valu e of transfers to agricultural 
producers is measured using the Producer Support Estimate (PSE) , the Single Commodity Transfer  
(SCT),  and associated indicators. The methodology for calculating these indicators is different from 
that used to calculate the Ag gregate Measure of Support (AMS), and the two sets of data are 
neither compatible nor comparable. The total PSE is: "The annual monetary value of gross 
transfers from consumers and taxpayers to agricultural producers, measured at the farm gate 
level, arisi ng from policy measures that support agriculture, regardless of their nature, objectives 
or impacts on farm production or income. It includes market price support, budgetary payments 
and budget revenue foregone, i.e. gross transfers from consumers and taxp ayers to agricultural 
producers arising from policy measures based on: current output, input use, area planted/animal 
numbers/receipts/incomes (current, non -current), and non -commodity criteria." Thus, the PSE 
includes estimates for the value of transfers provided by market access measures, such as tariffs 
and tariff quotas, as well as input subsidies, direct payments to producers that are coupled to 
prices or production, and direct payments decoupled from prices and production.18 
4.40.   According to the OECD,  support for agriculture declines from Rub 493 billion (or 22% of 
gross farm receipts) in 2010 to Rub 325 billion (or 9% of gross farm receipts in 2014 and 
compared to an average for OECD countries of 17.3% ). Market prices support, mostly arising from 
tariff pr otection, was the main contributor to the PSE and was valued at R ub 130,776 million  in 
2014. In addition to transfers to agricultural producers, support was also provided for general 
                                                
18 OECD (2015d).  WT/TPR/S/345 • Russian Federation  
 
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  services, such as the agricultural knowledge and innovation system, and i nspection and control. 
These general services were valued at R ub 68 billion in 2014 .19 
4.41.   Support levels  to specific products , as measured by the Single Commodity Transfer (SCT) , 
vary considerably from one product to another and , for some products , from one ye ar to another. 
In general, cereals and oilseeds have had a negative SCT (resulting from lower farm gate prices 
compared to border prices), while other crops and livestock products have a positive SCT. For 
some products, in some years, the transfers to prod ucers can be quite significant – up to 31% of 
gross receipts for refined sugar and 22% for beef and veal (Table 4.18).  
Table 4.18 Total producer support estimate and single commodity transfer values for 
select ed commodities, 2010 -14 
(Rub million)  
 2010  2011  2012  2013  2014  
PSE 493,186  444,922  455,735  387,745  325,460  
% gross farm receipts  21.9 14.9 15.3 11.6 8.9 
Single Commodity Transfers  363,959  300,392  254,619  194,149  160,190  
Wheat  
SCT ( Rub million)  -19,445.44  -49,581.90  -20,911.03  -23,530.99  -26,474.79  
% of gross receipts  -12.1 -17.3 -8.6 -6.7 -6.6 
Barley  
SCT ( Rub million)  -4,028  -26,524  -13,846  -10,774  -4,387  
% of gross receipts  -14.2 -31.4 -16.8 -11.0 -4.0 
Maize  
SCT ( Rub million)  1,069  -8,063  -3,319  3,812  -4,941  
% of gross receipts  7.4 -19.6 -6.0 5.0 -7.7 
Oats 
SCT (RUB million)  160 -6,270  -3,517  8,137  -1,592  
% of gross receipts  1.4 -26.2 -19.0 28.5 -6.1 
Rye 
SCT ( Rub million)  11 -2,085  -564 -3,249  62 
% of gross receipts  0.2 -17.9 -5.8 -19.7 0.4 
Potatoes  
SCT ( Rub million)  83 70 44 9,357  24,154  
% of gross receipts  0.0 0.0 0.0 3.3 6.0 
Pig meat  
SCT ( Rub million)  120,755  122,656  94,700  27,308  64,560  
% of gross receipts  56.1 51.1 35.1 13.5 20.0 
Poultry meat  
SCT ( Rub million)  44,779  48,47 8 24,951  53,987  5,041  
% of gross receipts  21.6 20.4 9.2 18.8 2.0 
Beef and veal  
SCT ( Rub million)  48,760  53,436  51,802  83,164  48,902  
% of gross receipts  29.1 27.0 23.5 38.9 22.2 
Eggs  
SCT ( Rub million)  2,112  7,345  4,060  5,818  2,484  
% of gross receipts  2.2 7.0 3.5 4.3 1.7 
Refined sugar  
SCT ( Rub million)  1,796  0 0 6,867  23,445  
% of gross receipts  5.9 0.0 0.0 13.9 31.2 
Source:  OECD Producer and Consumer Support Estimates database. Viewed at: 
http://www.oecd.org/tad/agricultural -policies/producerandconsumersupportestimatesdatabase.htm  
[June 2015].  
4.1.2   Forestry  
4.42.   The Russian Federation has the largest forest area in the world , with about 20% of global 
forest area amounting to  882 million hectares of forest. In 2015, t he share of trade in forest 
products was less than 4%, and its share of GDP was 1.3%.20 According to the Federal Statistics 
Service of the Russian Federation, in 2015, there were 1,183.5 mil lion hectares of forest.  
                                                
19 OECD (2015d).  
20 FAO (2012)  WT/TPR/S/345 • Russian Federation  
 
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  4.43.   The forestry industry is regulated by the Federal Forestry Agency , in the Ministry of Natural 
Resources and Ecology , in respect of  sylviculture and wood harvesting, and by the Ministry of 
Industry and Trade in respect of wood proc essing, articles of wood and cork production (excluding 
furniture), production of straw, plaits and plaiting materials, paper and articles of paper 
production. At regional level , forest issues are regulated through forestry departments in the 
federal distr icts and regions of the Russian Federation.  
4.44.   According to the FAO, in 2014, the Russian Federation was:  
 the second -biggest producer of round wood in the world (10% of global production), the 
fourth -biggest producer of sawn  wood (8%), the third -biggest pro ducer of wood -based 
panels (3%), and the eighth -biggest producer of pulp for paper (4%); and  
 the world's biggest exporter of round wood (16% of total exports), the second -biggest 
exporter of sawn wood (17%), and the fourth -biggest  exporter of  wood pellets (6%).21  
4.45.   However, the sector faces several problems, including weak infrastructure development, 
depletion of resources in traditional harvesting areas, and lack of capacity to use low -grade 
resources. Estimates suggest that harvested timber will not exceed 200-220 m3 in the short and 
medium term.22 The authorities stated that, in 2015, round wood exports were 19.4  million  m3 
(14.5 million tonnes) , while harvested timber amounted to 205.2  million  m3 (compared to an 
annual allowable cut (AAC) of 699.8 million m3). 
4.46.   Over the 2010 -2014 period, exports of wood and paper products (HS 44 -48) have been 
increasing and reached a value of US$11.2 billion, with particularly strong growth in exports of cut 
timber and plywood. However, in 2015, export values declined to US$9.3 billion , although export 
volumes increased for several major exported products and the Russian Federation maintained a 
trade surplus in forestry products. However, the decline reflects the exchange rate, as exports in 
volume terms increased for four out  of the top five wood products (Table 4.19).  
Table 4.19 Trade in selected wood products , 2012 -15 
   2012  2013  2014  2015  2015 top 4 
destinations/sources  
Exports  
Total wood and wood product exports (US$ m)  9,875  10,511  11,220  9,297   
of which         
440710  Wood sawn or chipped 
lengthwise .. of a thickness 
exceeding 6 mm. // -Coniferous  US$ m  3,191  3,503  3,567  2,843  China, Egypt, Japan, 
Uzbekistan  000, 
tonnes  10,436  11,480  12,219  13,246  
441232  Other plywood, .. each ply not 
exceeding 6 mm thickness : // -
- Other, with at least one outer 
ply of non -coniferous wood  US$ m  857  969  1,149  946  United States, Egypt, 
Germany, Turkey  
000, 
tonnes   1,048   1,154   1,304  1,399  
440320  Wood in the rough .. // -Other, 
coniferous  US$ m  1,190  1,185  1,288  933  China, Finland, Japan, 
Rep. of Korea  000, 
tonnes  9,389  8,840  9,815  8,744  
470321  Pulp of wood .. // - Semi-
bleached or bleached : // -- 
Coniferous  US$ m  468  545  653  684  China, Rep. of Korea, 
Japan, Ukraine  000, 
tonnes  1,298  1,082  1,180  1,106  
480100  Paper and paperboard // 
Newsprint, in rolls or sheets  US$ m  691  576  623  443  India, Turkey, 
Germany, Iran  000, 
tonnes  3,871  5,410  5,873  6,195  
Imports  
Total wood and w ood product imports (US$ m)  5,425  5,704  5,109  3,207   
of which         
481092  Paper and paperboard; .. // 
coated on one or both sides 
with kaolin or other inorganic 
substances // - Other paper and 
paperboard : // -- Multi-ply US$ m  406 441 424 346 Finland,  Sweden, 
China, Slovenia  
000, 
tonnes  377 402 386 373 
                                                
21 FAO forest products statistics online information. Viewed at: http://www.fao.org/forestry/statistics/ 
80938@180724/en/  [June 2016].  
22 NOVA Capital (2015).  WT/TPR/S/345 • Russian Federation  
 
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     2012  2013  2014  2015  2015 top 4 
destinations/sources  
481151  Paper and paperboard coated, 
impregnated or covered with 
plastics (excluding adhesives) : 
// -- Bleached, weighing more 
than 150 g/m²  US$ m  302 342 313 222 Ukraine, Finland, 
Spain, Germany  
000, 
tonnes  96 110 106 101 
481190  Paper and paperboard .. // -
Other paper, paperboard, 
cellulose wadding and webs of 
cellulose fibres  US$ m  162 154 170 158 Germany, Poland, 
United Kingdom, 
France  000, 
tonnes  63 58 68 72 
481420  Wallpaper and similar  .. paper 
coated or covered, on the face 
side, with a grained, embossed, 
coloured, design -printed or 
otherwise decorated layer of 
plastics  US$ m  380 373 322 142 Ukraine, Germany, 
Belarus, Italy  
000, 
tonnes  87 86 86 48 
481159  Paper and paperboard; .. 
coated, impregnated or covered 
with plastics (excluding 
adhesives) : // -- Other  US$ m  214 222 210 120 Germany, Poland, 
Romania, Ukraine  000, 
tonnes  68 69 68 44 
Source:  UNSD , Comtrade  database . 
4.47.   It has been reported that foreign investment in wood proce ssing, and the pulp and paper 
industry represented 38% and 74% respectively for total investment in these sectors23, although 
these represent only a small proportion of total foreign investment in the Russian Federation. 
Aside from the large forest resource s, the authorities noted that the Russian Federation has lower 
costs of production per cubic metre of sawn wood compared to competitors for coniferous wood.  
4.48.   Forests in the Russian Federation are owned by the federal  government and access to use 
them is by means of lease contracts. The total area of leased forest was about 232 million hectares 
at the beginning of 2014, compared to 178 million hectares in 2009. The basic law on forestry is 
the Forest Code of 8 November 2006 , which entered into force in 2007. Government policy for 
forestry development is set out in Government Resolution No. 2593 -R of 28 December 2012 "the 
Programme of Forestry Sector Development for 2013 -2020" and Government Decree No. 1724 of 
26 September 2103 "Principle of state policy in the  area of use, preservation, protection and 
reproduction of forests in the Russian Federation for the period to 2030". A number of laws and 
regulatory acts have been introduced over the past few years, inter alia , to improve regulation of 
forest use, reduce  illegal logging, introduce an automated system for monitoring harvested timber 
(EGAIS), and improve the administration of the leasing system.24,25 
4.49.   A lease or sales -purchase contract is required in order to harvest wood, resin, or other non -
timber forest res ources. Under the Forest Code, leases are auctioned and the Code sets out the 
basic requirements for the auction process. According to one report, budgetary support to the 
forest sector focused on improving management and efficiency , and it increased from 
Rub 36 billion in 2009 to R ub 73 billion in 2014. Most of the increase in funding came from leasers 
and other sources , which increased from R ub 7.1 billion in 2009 to R ub 30.7 billion in 2014 , and 
most of the rest came from the federal  and regional budgets .26 According to the notification by the 
Russian Federation to the WTO, support to the timber industry in the form of direct funding to 
partially compensate for lease payments and interest on loans was R ub 1,150 million in 2013 and 
Rub 2,092 million in 2014 .27 
4.50.   According to the authorities, the Ministry of Natural Resources and Ecology of the Russian 
Federation is developing a new economic model of intensive forest use and forest reproduction. 
This economic model is intended to improve efficiency not only for forest industry companies, but 
also for the State , with key indicators such as increas ed budget system revenue for per unit of 
forest, increas ed tax revenues, and additional job  creation . 
                                                
23 NOVA Capital (2015).  
24 Federal Forestry Agency online information. Viewed at: http://www.rosleshoz.gov.ru/docs/other/83  
[June 2016] (Russian).  
25 FAO, UNECE (2015).  
26 USDA (2014).  
27 WTO document G/SCM/N/284/RUS, 11 May 2016.  WT/TPR/S/345 • Russian Federation  
 
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  4.51.   Russia's reliance on round wood exports is apparently at the expense  of moves towards 
diversification into value -added wood products, which could yield an increase in employment. In 
addition , focusing on value -added wood products could improve the sustainability of forest 
resource use by more efficiently using less -valued items such as branches and woodchips for 
paper, pulp, and wood -based panels. In turn this could raise revenues and contributions to GDP.28 
4.52.   The average applied MFN tariff on wood, pulp, paper and furniture is 9.4%, with 4.2% of 
the 589 lines duty-free and a range of 0 -68.2%. In acceding to the WTO, the Russian Federation 
undertook to bind export duties on 247 tariff lines, or subsets thereof, at the ten -digit level, for 
wood and wood products (HS sections 44 to 48). In many cases, these export duties were to be 
reduced to zero over four years. Under Government Resolution No. 705 of 25 July 2014, export 
duties were applied to 68 tariff lines, or subsets thereof. The majority of bound and applied export 
duties are compound duties with an ad valorem  duty and a mi nimum specific duty in euros per 
kilogram me or cubic metre.  
4.53.   The Russian Federation also undertook to open two quotas for exports of rough wood from 
Picea abies Karst  (Norway Spruce) at 13% for 6,246,500 m3 and rough wood from Pinus sylvestris 
L (Scots Pine ) at 15% for 16,038,200 m3. The out -of-quota export duty for these products is 80%, 
but not less than €55.2 per m3 (Section 3.2.2).  
4.1.3   Fisheries  
4.54.   In 2015, f isheries contribute d 0.2% to the GDP of the Russian Federation and represent ed 
0.2% of employment.29 Nevertheless, the Russian Federation is one of the biggest fishing nations 
in the world, with access to the Arctic, Atlantic, and Pacific Oceans and their adjacent seas, as well 
as the inland Caspian Sea. Marine fisheries are much bigger in terms of both catch  and value than 
inland and aquaculture fisheries. Most of marine fishing is from the Exclusive Economic Zone of the 
Russian Federation, although high seas plus catch in the EEZs of other countries are about one  
quarter of total catch.  
4.55.   The main land sites a re in the Northwest Pacific (Vladivostok and Nakhodka , each of which 
has annual landings of over 100,000 tonnes ). The landing sites in other areas are much smaller, 
though still significant, such as Murmansk, Belomorsk, and Arkangel on the Barents Sea and the 
White Sea, and Kaliningrand and St . Petersburg on the Baltic.  
4.56.   The main fishing gear depends on the catch species. Midwater trawls are used by freezing 
and processing trawlers for pollack and redfish ; bottom trawls for cod, halibuts, redfish, flounders 
and other demersal fish ; shrimp trawls for shrimp, etc. According to the OECD, in 2014 , there 
were 2,542 vessels in the fishing fleet , with 955 between 18 and 23.9 metres, 828 between 36 
and 44.9  metres, and 88 over 75 metres.30 According to the Federal Age ncy for Fisheries of the 
Russian Federation, in 2010, there were 2 ,023 vessels in the fishing fleet supported by a service 
fleet of 465 vessels and a refrigerated transport fleet of 256 vessels.  
4.57.   In weight terms, the main catch is cod, hake and haddock fro m the Pacific followed by the 
same species from the Atlantic. The total catch has increased over the past ten years, rising from 
less than 3 million tonnes in 2004 to 4.3 million tonnes in 2012 , and has been fairly stable since 
then (Table 4.20). However, total catch is much lower than the peak of 11.4 million tonnes in the 
late 1980s.  
Table 4.20 Russian Federation fisheries capture production , 2010 -2014  
(000 tonnes)  
 2010  2011  2012  2013  2014  
Total catch  4,076  4,262  4,338  4,354  4,233  
 Inland  263 249 263 262 225 
  Salmon, trout, smelts  110 113 114 100 97 
  Carps, barbels, other cyprinids  101 97 95 102 80 
                                                
28 Simeone, J. (2013).  
29 Federal State Statistics Service online  information. Viewed at: 
http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/en/main/  [June 2016].  
30 OECD (2016).  WT/TPR/S/345 • Russian Federation  
 
- 132 - 
 
   2010  2011  2012  2013  2014  
 Atlantic  1,241  1,181  1,162  1,273  1,242  
  Cod, hake, haddock  555 532 582 659 683 
  Herring, sardines, a nchovies  314 255 215 178 187 
  Miscellaneous pelagic fish  273 302 274 332 272 
 Pacific  2,564  2,830  2,913  2,818  2,765  
  Cod, hake, haddock  1,736  1,717  1,789  1,696  1,664  
  Herring, sardines, anchovies  222 298 357 387 364 
  Salmon, trout, smelts  249 433 367 358 282 
  Squids, cuttlefish, octopuses  65 69 76 86 111 
Source:  FAO Fisheries and Aquaculture Department online database. Viewed at: 
http://www.fao.org/fishery/topic/16140/en  [June 2016].  
4.58.   Aquaculture is much smaller than fisheries capture, but it has been rising steadily: in 2007 
the total quantity was 105,803 tonnes with a value of US$326 million; and in 2014 it was 
163,600  tonnes with a value of US$ 571 million. Nearly all aquaculture is fres hwater production 
with 28,508 tonnes of salmon, trout, and smelts with a value of US$184 million, and 
105,273  tonnes of carp, barbels and other cyprinids with a value of US$252 million.31 
4.59.   Total exports of fish and fish products32 were US$2,934 million in 201 5, with frozen Alaska 
pollack representing 31% of this total. Imports in 2015 were US$1,614 million.  
Table 4.21 Trade in selected fish and fish products , 2012 -15 
   2012  2013  2014  2015  2015 top 4 
destinations/ sources  
Exports  
Total fish and fish product exports (US$ m)   2,653   2,988   3,014   2,934   
of 
which         
030367  Fish, frozen, excluding fish 
fillets and other fish meat of 
heading 03.04. // -- Alaska 
Pollack  US$ m  910  960  883  924  China, Rep . of Korea, 
Belarus, Kyrgyz 
Republic  000, 
tonnes  791  788  706  779  
030614  Frozen : // -- Crabs  US$ m  215  242  383  329  Rep. of Korea, 
Netherlands, Japan, 
Norway  000, 
tonnes  23  23  35  32  
030390  Fish, frozen, excluding fish 
fillets and other fi sh meat of 
heading 03.04. // -Livers and 
roes US$ m  345  286  269  250  Rep. of Korea, Japan, 
China, Ukraine  000, 
tonnes  44  41  41  44  
030363  Fish, frozen, excluding fish 
fillets and other fish meat of 
heading 03.04. //  -- Cod US$ m  136  172  203  197  Netherlands, Rep . of 
Korea, China, Norway  000, 
tonnes  57  78  80  75  
030624  Not frozen : // -- Crabs  US$ m  29  44  81  157  Rep. of Korea, China, 
Democratic People's 
Rep. of Korea, 
Kazakhstan  000, 
tonnes  4  5  7  13  
Imports       
Total fis h and fish product imports (US$ m)   2,739   3,283   2,967   1,614   
of 
which         
030313  Fish, frozen, excluding fish 
fillets and other fish meat of 
heading 03.04. //  -- Atlantic 
salmon and Danube salmon  US$ m  54  174  272  267  Chile, Fa roe Islands,  
Belarus, Georgia  
000, 
tonnes  26  46  57  57  
030214  Fish, fresh or chilled, 
excluding fish fillets and other 
fish meat of heading 03.04. // 
Atlantic salmon and Danube 
salmon  US$ m  652  715  452  138  Faeroe Islands, UAE  
 
 000, 
tonnes  132  102  61  20  
030389  Fish, frozen, excluding fish 
fillets and other fish meat of 
heading 03.04. // - Other fish, 
excluding livers and roes : // 
-- Other  US$ m  121  154  160  106  China, Iceland, Fa roe 
Islands, Japan  
 000, 
tonnes  88  106  96  78  
                                                
31 FAO Fisheries and Aquaculture Department online database.  Viewed at: 
http://www.fao.org/fishery/topic/16140/en  [June 2016].  
32 For the purposes of this section of the report, fish and fish products are defined as tariff lines under 
HS 2012 Headings 020840,  03, 050800, 050900, 051191, 1504, 1603, 1604, 1605, and 230120.  WT/TPR/S/345 • Russian Federation  
 
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     2012  2013  2014  2015  2015 top 4 
destinations/ sources  
030617  Crustaceans… - Frozen : // -- 
Other shrimps and prawns  US$ m  121  203  242  101  India, Viet Nam, 
China, Ecuador  
000, 
tonnes  20  29  27  13  
030354  Fish, frozen, excluding fish 
fillets and other fish meat of 
heading03.04. // -- Mackerel  US$ m  169  205  180  90  Faroe Islands, 
Iceland, Greenland, 
Morocco  000, 
tonnes  86  102  91  62  
Source:  UNSD Comtrade.  
4.60.   The average tariff on imports of fish and fish products is 8.1% but varies considerably from 
duty-free for 19% of the 520 fishery and fishery product  tariff lines to a maximum of 320% ( ad 
valorem equivalent) , and a standard deviation of 14.5 indicates considerable variability from one 
line to another. In addition, export duties are applied to 106 tariff lines at the 10 -digit HS 2012 
level, most of whic h are at 2.5%, but 21 lines are at 5%. In acceding to the WTO, the Russian 
Federation undertook to reduce export duties on fish and fish products to zero over a four year 
period.  
4.61.   The Federal Agency for Fishery is the executive body responsible for oversigh t of fisheries 
and conservation of marine biological resources and their habitats, aquaculture, commercial 
fisheries, and navigational safety of the fishing fleet. The Ministry of Agriculture is responsible for 
state policy and legal regulation in the fish eries industry. Current policy concerning fishing is set 
out in Government Resolution No. 314 of 15 April 2014 on "development of fisheries".  
4.62.   The Russian Federation operates and enforces a total allowable catch (TAC) system. Each 
year catch quantities are established for particular species of aquatic biological resources in 
particular areas based on scientific data on reserves of that species. The TAC is assigned to 
specific enterprises or persons. In addition, the fishing seasons for some species may be li mited 
and gear restrictions may also apply.  
4.63.   Foreign vessels fishing in marine areas under the sovereignty and jurisdiction of the Russian 
Federation are required to have an inspector from the Border Service s of the Federal Security  
Service  on board , in acc ordance with international treaties on fisheries and conservation of aquatic 
biological resources signed by the Russian Federation.33 All fishing vessels are required to load, 
unload, and trans -ship aquatic biological resources or their products that were c aught in the EEZ of 
the Russian Federation in the presence of an inspector of the Border Services of the Federal 
Security Service of the Russian Federation. A permit is required for all vessels fishing in areas 
under the sovereignty and jurisdiction of the  Russian Federation,  as well as all Russian fishing 
vessels , even if they are engaged in fishing on the high seas or in areas subject to international 
treaties.  
4.64.   In order to prevent illegal unregulated and unreported (IUU) fishing in the EEZ, the 
Government  adopted a National Plan under Decree No. 2534 -r of 25 December 2013 and a list of 
actions to implement the Plan in Government Decree No. 2661 -r of 24 December 2015. Among the 
actions included in the Plan, is the improvement of control of circulation of im ported and exported 
aquatic biological resources. Furthermore, as part of the Plan, a review is being carried out to 
enhance the criminal and administrative responsibilities for contraventions of laws and regulations 
related to fisheries and  conservation of aquatic biological resources. Also as part of the National 
Plan, international cooperation to prevent IUU fishing and illegal circulation of aquatic biological 
resources is being enhanced and the Russian Federation has concluded bilateral agreements 
relating to IUU fishing with China, the Republic of Korea, Japan, the United States, and the 
People's Democratic Republic of Korea.  
                                                
33 The Russian Federation is a party to several regional fisheries agreements including: the Commission 
for the Conservation of Antarctic Marine Living Resources, the Convention on the Conserv ation and 
Management of Pollock Resources in the Central Bering Sea, the International Commission for the Conservation 
of Atlantic Tunas, the International Council for the Exploration of the Sea, the International Whaling 
Commission, the Joint Norwegian -Russian Fisheries Commission, the North Atlantic Salmon Conservation 
Organization, the North Pacific Anadromous Fish Commission, the North Pacific Fisheries Commission, the 
North -East Atlantic Fisheries Commission, the Northwest Atlantic Fisheries Organizati on, the South Pacific 
Regional Fisheries Management Organisation, and the North Pacific Marine Science Organization.   WT/TPR/S/345 • Russian Federation  
 
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  4.65.   Under Government Resolution No. 314 of 15 April 2014, financial support was provided for 
the fisheries sector, including:  
 Construction and reconstruction of fishing vessels (the measure is planned to run until 
2018). From 2009 to 2015 this support measure amounted to R ub 141.6 million.  
 Construction and reconstruction of fish processing infrastructure and fish products 
storages (t he measure is planned to run until 2018). Between 2009 and 2015 total 
support for this measure was R ub 393.9 million.  
 Development of aquaculture (the measure is planned  to run until 2020). In 2015 the 
support measure amounted to R ub 223 million.  
4.66.   According to the notification to the WTO by the Russian Federation, support is provided to 
fishing organizations in the form of direct funding from the federal  budget to compensate for 
spending on loans for construction and modernization of fishing vessels, fish pro cessing 
infrastructure, and fisheries products storage facilities. The amount of support was R ub 233 million 
in 2013, and R ub 6 million in 2015.  
4.2  Mining and Energy  
4.2.1   Legislative framework  
4.67.   Under the Constitution of the Russian Federation, the State is the sole  owner of all subsoil 
resources. Law No.  2395-1 of 21 February 1992 "On Subsoil" (as amended) provides the legal 
framework for exploration, extraction, and exploitation of minerals and other natural resources. In 
addition, there are a number of laws and re gulations that cover various aspects related to mining 
and energy, such as Law No.  225-FZ of 30 December 1995 "On Production -Sharing Contracts", 
and Law No.  187-FZ of 30 November 1995 "On the Continental Shelf of the Russian Federation".  
4.68.   A number of gover nment agencies have responsibilities for different aspects of policy, 
legislation, and regulation of the minerals, energy, and hydrocarbons  sub-sectors : 
  The Ministry of Natural Resources and Environment is responsible  for drafting and 
implementing governm ent policy and legal regulation in the field of exploration, use, 
reproduction and protection of natural resources, including mineral resources : 
o The Federal Agency for Mineral Resources has functions which include organizing 
the rational use of minerals an d raw materials, geological studies and related data 
on the territory and continental shelf of the Russian Federation, granting licences 
for subsoil use and supervising compliance with these licen ces; 
o The Federal Agency for Supervision of Natural Resources  is responsible for, 
inter alia, compliance with environmental regulations;  
  The Ministry of Energy is responsible for drafting and implementing government policy and 
legal regulation in areas including the electric power industry, oil production, oil 
processing, gas, fuel, peat and shale industries, major oil and gas pipelines, oil and gas 
products, renewable energy sources, development of hydrocarbon fields on the basis of 
production -sharing agreements, and the petrochemical industry;  
  Having taken over  the functions of the Federal Tariff Service in 2015, the Federal 
Antimonopoly Service (FAS) regulates natural monopolies and its responsibilities include 
setting tariffs for electricity, natural gas, and pipeline transportation (Section  3.3.4);  
  The Feder al Service for Environmental, Technological, and Nuclear Supervision is 
responsible for drafting and implementing government policy and legal regulation s relating 
to nuclear energy, as well as overseeing the safety of hydro -engineering structures,  and 
the safe production, storage and use of industrial explosives.34,35 
                                                
34 The Russian Government online information. Viewed at: http://government.ru/en/ministr ies/ 
[July 2016].  
35 Chambers and Partners online information. Viewed at: 
http://www.chambersandpartners.com/guide/practice -guides/location/271/8072/2363 -200 [July 2016].  WT/TPR/S/345 • Russian Federation  
 
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  4.69.   In general, there are three different types of activity licences for minerals and 
hydrocarbons: exploration; production; and combined. Exploration licences are obtained from the 
Federal Agency f or Mineral Resources and are valid for five, seven, or ten years depending on the 
location where the exploration is to take place. Production and combined licences are usually 
granted following an auction or tender process. In general, a licence is non -transferable and may 
only be transferred to a subsidiary incorporated in the Russian Federation or to another company 
within the same group if the legal structure or status of the holder changes. Subsoil blocks on the 
continental shelf are subject to a specia l licensing regime.  
4.70.   The circumstances under which a licence may be revoked are set out in Article 20 of the 
Law on Subsoil. If a licence has been revoked, the former holder is required to cover the cost of 
bringing the site back to its pre -licence conditio n. Payments related to licences may include: a bid 
fee; a signing bonus; one -time payments, which may be conditional on events specified in the 
licence (e.g. discovery of a deposit or reaching specified production levels); and regular payments 
for use of t he subsoil for purposes not directly related to production of the mineral.  
4.71.   In addition to licence fees and regular taxes, such as corporate income tax and VAT, the 
Russian Federation applies a mineral resources extraction tax (MRET) at rates that may vary 
across types of mineral resources and locations: (i) the MRET for coal, oil, gas, and gas 
condensate is calculated based on volume or weight  and applied as a specific duty36; (ii) a zero 
MRET rate applies to oil extracted during the initial production stage  from new sites located in 
certain regions of the Russian Federation (e.g. East Siberia, internal and territorial waters located 
in the northern polar zone, the Azov and Caspian Seas, and Nenets and Yamal); (iii) in other cases 
an ad valorem  MRET is applie d based on the value of recovered minerals  – the rate of tax depends 
on the mineral (e.g. 3.8% for potassium salt; 4.8% for ferrous metals; 6% for products containing 
gold; and 8% for other metals and diamonds); and (iv) as of 2014, reduced MRET rates appl y to 
investors in the Far East of the Russian Federation.  
4.72.   From 1 January 2016, the MRET on natural gas and gas condensate produced by PJSC 
Gazprom was effectively increased. Under Article 342.4 of the Tax Code of the Russian Federation, 
the coefficient fo r recovery in the MRET formula was increased from 15% to 20.51%. According to 
the authorities, this change was an exceptional measure for 2016 only.   
4.73.   Under Government Decree No . 705-R of 18 April 2016 eight state -owned or controlled 
enterprises were requir ed to pay shareholder dividends equal to 50% of 2015 net profit based on 
international financial reporting standards (IFRS) or Russian accounting standards (RAS), 
whichever was higher. The companies mentioned in the Decree we re: Gazprom (gas), Alrosa 
(diam onds), Bashneft (oil), Zarubezhneft (oil), RusHydro (hydropower), Sovcomflot (shipping), 
Transneft (pipelines), and Rosneftegaz (holding company for energy industry companies).37,38 
4.74.   As stated in the Working Party Report on the Accession of the Russian Federa tion to the 
WTO, export taxes were imposed on a variety of products, including a number of mineral products, 
crude oil and oil products, and natural gas.39 Many of these have been reduced to zero but some 
still remain, including on natural gas, magnesium ca rbonate, tungsten ores and concentrates, 
molybdenum ores and concentrates, coal and coal products, diamonds, scrap iron and steel, 
copper, nickel, and aluminium. Government Resolution No. 705 of 25 July 2014 (in force from 
1 September 2014) stipulates a 30 % ad valorem  export tax for natural gas and 0% for LPG, 
applicable to exports outside the EAEU. An excise tax applies to exports of natural gas 
(Section  3.3.1.2).  
4.75.   The level of export duties on crude oil and oil products is linked to the world price of crud e 
oil and is revised monthly, pursuant to Article 3 of the Law of the Russian Federation No. 5003 -1 
                                                
36 The duty for crude oil was increased from Rub 493 per tonne in 2014 to Rub 766 in 2015, and to 
Rub 857 per tonne in 2016 and is to be increased again to Rub 919 per tonne in 2017. The MRET for natural 
gas is Rub 35 per 1,000 cubic metres a nd for natural gas condensate Rub 42 per tonne. The MRET is adjusted 
by coefficients to take account of market prices, export duties, difficulty of extraction, deposit depletion, and 
location.  
37 Government of the Russian Federation online information. View ed at: 
http://government.ru/docs/22720/  (in Russian) [July 2016].  
38 Financial Times Online News (2016a).  
39 WTO document WT/ACC/RUS/70, 17 November 2011, paragraphs 630 -638 and Schedule CLXV, 
Part V. WT/TPR/S/345 • Russian Federation  
 
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  of 21 May 1993 "On Customs Tariff". In June 2016, it was reported that the export duty of crude 
oil would increase from US$80.6 per tonne to US$95.9 per ton ne from 1 July 2016. Lower duties 
would continue to apply to high viscosity oil and exports of LPG and crude oil from certain fields in 
the East Siberia and Caspian regions, and the export duty rate for the Prirazlomnoe Field would 
remain at zero.40  
4.2.2   Minera ls 
4.76.   The Russian Federation is a major producer of a large number of minerals: arsenic, 
asbestos, bauxite, boron, cadmium, cement, chromium, cobalt, copper, diamonds, gold, fluorspar, 
iron ore, lime, magnesium, manganese, nickel, platinum, potash, nickel, pa lladium, phosphate, 
rhenium, sulphur, tin, titanium, tungsten, and vanadium. One  sixth of the world's iron ore reserves 
can be found in the deposits of the Kursk Magnetic Anomaly. The Urals and the Kola Peninsula 
comprise the largest copper deposits , and large deposits of iron ore are present in the Far East, 
Karelia, the Kola Peninsula and south -central Siberia. In addition, the Russian Federation is a 
major producer of fossil fuels (see below).  
4.77.   Exports of oil, gas, and other minerals are very important to  the economy , representing 
68.7% of total merchandise exports in 2015 (26% for crude oil, 19.6% for other petroleum oils, 
12.2% for natural gas, and 10.9% for other mining) (Section 1.3.1).  
4.78.   Furthermore, there are significant reserves and production of indu strial minerals in the 
Russian Federation, including apatite which is used to produce phosphate, predominantly found in 
the Khibiny mountains and Kovdor. The major supplier of this phosphate raw material is Apatit 
JSC, a mining and chemical enterprise comp rising four mining facilities  (open pits and underground 
mines), and a beneficiation complex (two plants) with an annual capacity to produce 8 million 
tonnes  of concentrated apatite.  
4.79.   The Russian Federation is a leading producer of artificial and natural di amonds and 
gemstones. Alrosa has the world 's largest reserves of diamonds, produces about 95% of the 
Russian  Federation's diamonds, and, in 2015, accounted for about 30% of global rough  diamond 
production (about 38.3 million carats), and had total revenues  of Rub 224.5 billion. According to 
its 2015 annual report, the company's major shareholders include the Federal Agency for State 
Property Management (43.9% of authorized capital), the Ministry of Property and Land Relations of 
the Republic of Sakha (25%),  and eight districts of the Republic of Sakha (8%).41 In July 2016, it 
was reported that the Government had sold 10.9% of Alrosa's shares for Rub 52.2 billion, reducing 
the holding by the Federal Agency for State Property Management to 33%.42,43 
4.80.   Other mineral s producers include GeoProMining (antimony), United Company RUSAL 
(aluminium), and Nornilsk Nickel (nickel, palladium, and platinum).  
4.2.3   Energy  
4.81.   The Russian Federation is a major energy producer, exporter and consumer ( Chart 4.3  and 
Table 4.22 ). It is the world's second  largest oil and gas producer, the fourth -largest producer of 
electricity, the world's sixth largest  producer of coal , and has become one of the most 
energy-intensive economies.  Oil production reached a peak in January 2016 at 1 0.88 million 
barrels per day. However , due  to the decline in international prices since 2014, export revenues 
from hydrocarbons have fallen , which has had a negative impact on the economy (Section 1.2). 
In 2015, export revenues from crude oil were less than half their 2012  level, while export 
revenues from gas fell by about one  third.  Table 4.2 3 shows the Russian Federation's trade in 
energy during the period 2012-15. 
                                                
40 TASS ( 2016).  
41 Alrosa online information. Viewed at: http://eng.alrosa.ru/documents/annual -reports/  [July 2016].  
42 Alrosa online information. Viewed at: http://www.alrosa.ru/инвесторам -и-акционерам/уставньій -
капитал/  (in Russian) [July 2016].  
43 Financial Times Online News (2016b).  WT/TPR/S/345 • Russian Federation  
 
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  Chart 4.3 Energy production and exports, 2012 -15 
(46.3%) (44.9%) (42.1%) (45.2%)
(53.7%) (55.1%) (57.9%) (54.8%)
0100200300400500600
2012 2013 2014 2015
Domestic use Exports(71.6%) (62.9%) (71.4%) (70.7%)(28.4%) (30.8%) (28.6%) (29.3%) 
0100200300400500600700
2012 2013 2014 2015(Billion cubic meters)
(62.2%)
(55.9%) (53.1%) (53.8%)(37.8%)
(44.1%) (46.9%) (46.2%)
050100150200250300350400
2012 2013 2014 2015(Million tonnes)Oil
Natural gas
CoalChart 4. [Russia]  Energy
(Million tonnes)
WTO Secretariat's calculations, based on online information from Ministry of Energy of Russian Federation.
Viewed at: http://minenergo.gov.ru/en/activity/statistic.  (Accessed to data in April 2016) and statistical information 
provided by the authorities.Source:Figures in parentheses indicate the share of total production.  Note:
 
Note:  Figures in parentheses indicate the share of total production.  
Source:  WTO Secretariat calculations, based on data provided by the Russian authorities and the Ministry of 
Energy online information. Viewed at: http://minenergo.gov.ru/en/activity/statistic  (April 2016).  WT/TPR/S/345 • Russian Federation  
 
- 138 - 
 
  Table 4.22 Energy production, 2014  
 Amounts in 2014  % of world  
Crude oil  529 million tonnes  12.6 
Natural gasa 644 billion cubic met res 18.3 
Coal 334 million tonnes  4.2 
Hydro production  183 TWh  4.7 
Nuclear electricity  173 TWh  7.0 
a  Extraction of oil and gas condensate in 2015 was 533.1  million tonnes and n atural gas extraction in 
2015 was 633.4 billion cubic metres  
Source:  Interna tional Energy Agency  (2015), 2015 Key World Energy Statistics . Viewed at: 
https://www.iea.org/publications/freepublications/publication/KeyWorld_Stati stics_2015.pdf  
[July 2016] . 
Table 4.23 Trade in energy, 2012 -15 
(US$ million and % of total)  
  2012  2013  2014  2015  2012  2013  2014  2015  
  (US$ million)  (% of total)a 
Imports             
   Coal 893 794 627 430 0.3 0.3 0.2 0.2 
   Electric energy  78 134 325 302 0.0 0.0 0.1 0.2 
   Gas 369 278 323 220 0.1 0.1 0.1 0.1 
    Gaseous state  225 222 226 173 0.1 0.1 0.1 0.1 
    Liquefied  145 56 97 47 0.0 0.0 0.0 0.0 
   Oil (crude)  173 155 308 648 0.1 0.0 0.1 0.4 
Exports            
   Coal 13,092  11,909  11,759  9,480 2.5 2.3 2.4 2.8 
   Electric energy  1,019  992 737 744 0.2 0.2 0.1 0.2 
   Gas 68,835  74,639  62,648  47,518  13.1 14.2 12.6 13.8 
    Gaseous state  62,253  67,232  55,240  41,844  11.9 12.8 11.1 12.2 
    Liquef ied 6,581  7,407  7,408  5,673  1.3 1.4 1.5 1.6 
   Oil (crude)  180,930  173,670  153,888  89,576  34.5 32.9 30.9 26.0 
a As a s hare of total imports/ exports . 
Note:  HS Codes are: coal (HS 2701 and 2702); electric energy (HS 2716); gas (HS 2711); and oil (HS 
2709).  
Source:  WTO Secretariat calculations, based on UNSD Comtrade.  
4.82.   In 2014 , the Russian Federation produced a total of 521.3  million tonnes of oil equivalent 
(Mtoe)  and condensate from all sources, of which 223.4 Mtoe were exported.44 Crude oil and 
natural gas represent over 80% of total primary energy production.45 
4.2.4   Oil 
4.83.   At 1 January 2016, some 299 licensed enterprises were active in extraction of oil and gas 
condensate in the Russian Federation. Among th ese, some 117 enterprises were the subsidiaries 
or affiliate s of 11 vertically -integrated companies that jointly accounted for 87% of Russian oil 
output. There were also 179 independent extraction companies and three operators working under 
production -sharing agreements.  
4.84.   Russian crude oil output grew steadily durin g the period 2012-15, underpinned by positive 
dynamics in existing fields and the entry into exploitation of new fields in the Northern, Eastern 
and Far Eastern parts of the Russian Federation. The number of oil wells in production phase has 
been on the ri se, with more than 6,000 new wells added annually , while their average depth 
increas ed from 2,818 m in 2012 to 2,870  m in 2015. The segment's performance has also 
benefitted from the adoption of output -intensification technologies and tax incentives for ce rtain 
remote oil fields. Vertically integrated companies' combined capital investments rose from 
                                                
44 Ministry of Natural Resources and Environment (2015).  
45 International Energy Agency online information. Viewed at: http://www.iea.org/statistics/  
[July 2016].  WT/TPR/S/345 • Russian Federation  
 
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  Rub 861 billion in 2012 to Rub 1,081 billion in 2015, while their costs per tonne of oil output rose 
from R ub 1,873 to Rub 2,326.46 
4.85.   Having decreased for three c onsecutive years, the volume of exports of crude oil rebounded 
to 241.8  million tonnes in 2015 driven by the steady growth in oil output, the decreasing volume 
of domestically processed oil, and the lower export tax rates in effect from January 2015. 
Deliveries to Europe accounted for 68% of total oil exports in 2015, followed by shipments to the 
Asia-Pacific region (31.4%); the corresponding figure s for 2014 were 69.6% and 29.8% . 
4.86.   According to the Ministry of Energy, in 2015 there were 78 enterprises proces sing oil and 
gas condensate in the Russian Federation, with a comb ined refining capacity of 322.5 million 
tonnes per year. Vertically -integrated companies owned 28 of those processing enterprises 
(including three owned by Gazprom), constituting 84.1% of ov erall Russian refining capacity, and 
accounted for 82.8% of total oil and gas condensate refined in 2015. Some 13.1% of the overall 
refining capacity was held by nine refining enterprises classified as independent, and the rest wa s 
owned by 41 small refine ries. 
4.87.   Having grown from 265.4 million tonnes in 2012 to 288.9 million tonnes in 2014, 
Russian -refined oil dropped to 282.4 million tonnes in 2015. Only independent enterprises 
registered an increase in refining activities in 2015. On the other hand, the av erage oil refining 
depth increased from 71.1% in 2012 to 74.2% in 2015, on account of technological upgrades 
predominantly carried out by vertically -integrated companies.47 As a result, the Russian Federation 
has established the necessary production base fo r transition to fuels of environmental class K5, 
with capacity sufficient to meet domestic demand.  
4.88.   During the period under review, the volume of petroleum products traded on Russian 
commodity exchanges rose from 10.9 million tonnes in 2012 to 15.7 million tonnes in 2015. The 
Saint-Petersburg International Mercantile Exchange (SPIMEX) was the leading trading platform; 
small amounts were also traded on the Saint -Petersburg Exchange and the (presently defunct) 
Inter-Regional Exchange of the Oil and Gas Complex . In 2015, the main petroleum products 
traded included gasoline (19.4% of domestic consumption), diesel (16.3% of domestic 
consumption), and fuel oil (8.6% of domestic consumption).  
4.89.   As of 1 January 2015, the Russian Federation had total oil reserves of 18. 3 billion tonnes in 
categories A (reasonable assured), B (identified), and C1 (estimated), plus 11.1 billion tonnes in 
category C2 (inferred) . The corresponding figures for reserves of gas condensate were 
2.2 billion  tonnes, plus 1.3 billion tonnes .48  
4.90.   Most of the largest producing oil reservoirs and fields date from Soviet times, although there 
is considerable potential for new discoveries or exploiting known reserves, particularly 
hard-to-recover reserves. Estimates of hard -to-recover reserves vary widely:  in 2012, Rosneft 
stated that its tight oil reserves were estimated to be 0.8 billion tonnes49; another report 
estimated that the Bazhenov Formation in West Siberia had technically -recoverable shale oil 
reserves of about 10.4 billion tonnes out of 173.9 bil lion tonnes in place, plus 
technically -recoverable shale gas reserves of 8.1 trillion cubic metres.50,51 It has been reported 
that the Russian Federation may have problems developing these resources, partly due to the 
decline in market prices, the high cost of extracting tight oil, and because most companies 
specialized in unconventional oil are foreign -owned.52 
                                                
46 Ministry of Energy (2016).  
47 Oil refining depth is the ratio of crude oil volumes processed at primary refining facilities, excluding 
saleable heating oil, liquid fuel used in production, and losses in drying and desalination, to total crude oil 
volumes processed at primary refining facilities. The number of facilities performing alkylation , catalytic 
cracking  and isomerization  has been on th e rise.  
48 Ministry of Natural Resources and Environment (2015).  
49 Rosneft (2012).  
50 U.S. Energy Information Administration (2015). Conversion from barrels to tonnes at 
7.147512  barrels per tonne, and cubic feet to cubic metres at 35.31472 cubic feet per c ubic metre.  
51 Conversion from barrels to tonnes at 7.147512 barrels per tonne, and cubic feet to cubic metres at 
35.31472 cubic feet per cubic metre.  
52 Henderson J. (2015).  WT/TPR/S/345 • Russian Federation  
 
- 140 - 
 
  4.91.   Many of the Russian Federation's hydrocarbon reserves and extractive operations are 
located in harsh climate regions, subject to dramatic temperature variations over the year. Export 
markets for hydrocarbons are principally served by pipeline networks and rail.  
4.92.   Rosneft is a major player in the global oil industry and the world's largest publicly traded 
petroleum company. Rosneft is active both upstream  and downstream, including in prospecting 
and exploration of hydrocarbon deposits, offshore projects, oil, gas and gas -condensate 
production, and processing, as well as oil, gas, and product marketing in the Russian Federation 
and abroad. In 2015, Rosneft had estimated hydrocarbon reserves  (ABC1 plus C2) of 
18.3 billion  tonnes of oil equivalent (toe), produced 265 million toe, had total revenues of Rub 
5,150 billion, and had net income of Rub 356 billion. Rosneft is on the list of strategic joint -stock 
comp anies approved by Presidential Decree No. 1009 of 4 August 2004. Rosneft is majority 
controlled by the State: the largest shareholder (69.5% of equity) is Rosneftegaz OJSC which is 
100% state -owned; BP Russian Investments Ltd owns 19.75% of shares; the Fed eral Agency for 
State Property Management owns one share; and 10.75% are free floating shares.53  
4.93.   Lukoil is the second largest petroleum company in the Russian Federation, the fifth in the 
world among non -government companies in hydrocarbon production, and the largest 
privately -owned company in the Russian Federation. Lukoil is a vertically integrated oil and gas 
company with investments and activity throughout the world, although over 88% of proved 
hydrocarbon reserves of 2.3 billion toe are within the Russ ian Federation. In 2015, it produced 
100.7 million tonnes of crude oil, had total revenues of Rub  5,750 billion, and had net income of 
Rub 291 billion.54  
4.94.   The third ranked oil producer in Russia is Gazprom Neft , which is 95% owned by its parent, 
Gazprom. In  addition to natural gas, Gazprom Neft produced abou t 482 million barrels of oil 
in 2014. Gazprom Neft owns and operates four oil refineries within the Russian Federation, 
nearly  2,000 petrol stations in the country and in Europe, and its market capitaliza tion was 
approximately US$10.5 billion at end -2015.  
4.2.5   Gas 
4.95.   Gas is important for the Russian economy as an exported commodity and as a feedstock to 
industry and manufacturing: about 2 -3 cubic metres of gas are consumed within the Russian 
Federation for each cu bic metre exported.  
4.96.   At 1 January 2016, natural and associated petroleum gas (APG) production in the Russian 
Federation was carried out by 81 affiliates of vertically integrated oil companies, 16 entities 
belonging to Gazprom, 4 entities owned by Novatek, 153 independent enterprises and three 
operators working under production -sharing agreements.55 Gazprom accounted for 63.9% of gas 
output in 2015, down from 73.1% in 2012.  
4.97.   The share of APG in overall output grew steadily  during the review period , rising fro m 8.4% 
in 2012 to 12.4% in 2015. According to the Ministry of Energy, the overall APG utilization rate 
increased from 76.2% in 2012 to 88.2% in 2015.  
4.98.   Some 11.3% of the 2015 gas output was processed in the Russian Federation, up from 
10.8% in 2012. Gazprom accounted for 96.3% of processed natural gas, and Sibur Holding was 
the leader in processed APG with 56.2% of the market. Gross output of liquefied petroleum gas 
(LPG) amounted to 15.9 million tonnes in 2015, of which 35.8% was exported. The corresponding 
figures for liquefied natural gas (LNG) were 10.8 million tonnes and 99.8%. The main destinations 
for LNG exports were Japan and the Republic of Korea.  
4.99.   Trading in natural gas was launched on the Saint -Petersburg International Mercantile 
Exchange (SPIMEX) i n October 2014. Some 7.5 billion cubic metres of natural gas, representing 
about 1.7% of domestic consumption, were traded on the commodity exchange in 2015.  
4.100.   As of 1 January 2015, the Russian Federation's reserves of free natural gas amounted to 
50.2 trill ion cubic metres in categories A (reasonable assured), B (identified), and C1 (estimated), 
                                                
53 Rosneft (2016).  
54 PJSC Lukoil (2016).  
55 Ministry of Energy (2016).  WT/TPR/S/345 • Russian Federation  
 
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  plus 20.1 trillion cubic metres in categor y C2 (inferred) . The corresponding figures for reserves of 
diluted gas were 1.4 trillion cubic meters, plus 1.5 trillion cubic meters.56 
4.101.   Gazprom is the only entity with permission to export gas out of the territory of the 
Russian  Federation.57 Gazprom is 38.4% state -owned, with another 11.9% owned by companies 
controlled by the State.58 The remaining shares of Gazprom are private ly owned. In 2014, 
Gazprom produced 443.9  billion cubic metres of natural and associated gas, 14.5 million tonnes of 
condensate, and 35.3  million tonnes of oil. Gazprom accounts for 12% of the world's gas 
production.59 Gazprom also purchases gas from centra l Asian producers, and has a number of 
joint-ventures and production -sharing agreements with central Asian producers.60 
4.102.   Action by the European Commission in respect of Gazprom's commercial activities in the 
EU has resulted in exposure to greater competition , and a likely decline in historical prices and 
pricing models. In September 2015, Gazprom moved to public auctions for spot gas supplies in 
Europe, a break from its practice of signing long -term contracts linked to oil prices. An EU antitrust 
action again st Gazprom is ongoing.61  
4.2.6   Oil and gas transportation  
4.103.   The majority of Russian energy exports (oil and gas) are transported by pipeline. 
Investment in the pipeline sector has traditionally been affected by the privileges granted to 
certain companies (notably Rosneft and Gazprom), long -term price expectations and, more 
recently, has suffered as a result of restrictions placed on investments in the Russian Federation 
by other countries.  
4.104.   The Russian Federation has more than 16,500 km of oil pipelines spanning the  whole 
territory.62 The wholly state -owned company Transneft  is the monopoly operator of the crude oil 
pipeline network. The company was established by Presidential  Decree No. 1403 of 
17 November  1992, which was further elaborated in Government Decree No. 8 10 of 14  August 
1993.   
4.105.   According to the authorities , the diversification of markets and routes of delivery of energy 
resources to foreign consumers continues. In September 2015 , a shareholders ' agreement was 
signed on the realization of the "Nord Stream -2" project involving the construction of two offshore 
gas pipeline strings with a total capacity of 55 billion cubic metres  per year to Germany under the 
Baltic Sea.  
4.106.   Repeated discussions concerning elimination of Gazprom's export monopoly  and permit ting 
export competition by other Russian producers have been unsuccessful. According to the 
authorities, the preservation of a single export channel of natural gas from the Russia n Federation  
through the pipelines is in the interests of socio -economic development of the country  because it 
eliminates competition between Russian suppliers and ensures the maximi zation of sales and tax 
revenues from exports.  
4.107.   Gazprom owns the Gas Transmission System (GTS), the greater part of which is comprised 
of the Unified Gas Supply  System (UGSS) of the Russian Federation. The UGSS encompasses gas 
production, processing, transmission, storage and distribution facilities. According to Gazprom, the 
UGSS assures continuous gas supply from the wellhead to the ultimate consumer.63 The GTS in 
the Russian Federation is 170,000 km in length. There are 250 compressor stations used for gas 
transmission.64  
                                                
56 Ministry of Natural Resources and Environment (2015).  
57 Bloomberg Online News (2015).  
58 Gazprom online information. Viewed at: http://www.gazprom.com/investors/stock/  [23 March 2016].  
59 Gazprom online information . Viewed at: http://www.gazprom.com/about/today/  [15 March 2016].  
60 Gazprom online information. Viewed at: http://www.gazprom.com/about /production/central -asia/ 
[19 April 2016].  
61 European Commission (2015).  
62 Transneft online information. Viewed at: http://en.transneft.ru/pipelines/  [24 March 2016].  
63 Gazprom online information. Viewed at: http://www.gazprom.com/about/production/transportation/  
[19 April 2016].  
64 The UGSS is controlled by Gazprom's Central Operations and Dispatch Department.  WT/TPR/S/345 • Russian Federation  
 
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  4.108.   The Russian Federation is seeking to develop new market access for gas exports, including 
through an agreement with China to export gas and bu ild a new pipeline network. According to 
one report, the agreement includes the possibility of Chinese investment in the upstream side.65 
According to the authorities, the terms of the long -term contract signed in 2014 ("The Power of 
Siberia" project) for d elivery of pipeline gas to China via the eastern gas route will provide for the 
export of up to 38 billion cubic metres per year for 30 years starting in 2019. In the context of 
implementing the strategy of diversifying markets for the Russian Federation's  natural gas exports, 
export s of pipeline gas to China through "The Power of Siberia 2" should be up to 30  billion  cubic 
metres per year with an expected starting date for deliveries in 2023.  
4.109.   Gazprom provides independent companies with access to gas : in 2014, Gazprom's GTS in 
the Russia n Federation  pumped gas for 24 independent companies. The volume of distributed gas 
was 121.1 billion cubic meters.66 Gazprom controls access to pipelines for shipments to western 
markets for exports of gas from central Asian  producers.  
4.2.7   Coal 
4.110.   There are about 157 billion tonnes of proven reserves of coal in the Russian Federation, 
comprising sub -bituminous and lignite grade coal reserves of 107.9 billion tonnes, and anthracite 
and bituminous grade coal reserves of 49.1 billion tonnes. Total e stimated reserves are between 
4 and 5 trillion tonnes. The overwhelming majority of these reserves are located in Siberia and the 
Far East of the Russian Federation. The Kuzbass coalfield has the largest proven coal reserves.  
4.111.   Coal mining in  the Russian Federation is carried out in 60 pit mines and 107 surface mines 
across 16 coal basins in 25 regions with a production capacity of 411.2 million tonnes per year.67 
Traditional export markets for coal have been in Europe, but the Russian Federati on is now 
seeking to increase exports to the Asia -Pacific region anticipating continued growth in both thermal 
and coking coal in those markets. According to the authorities, although exports to China have 
declined, exports to India have increased from 1 .6 million tonnes in 2014 to 3.6  million tonnes 
in 2015.  
4.2.8   Electricity  
4.112.   At 1 January 2016, the Russian Federation had 243,18 8 MW of installed power generation 
capacity, including new and upgraded generation facilities with combined capacity of 4,85 3 MW 
install ed in the course of 2015. Generation capacity connected to the unified electricity 
transmission s ystem  (UES) of the Russian Federation represented 235,30 6 MW in 2015, its 
utilization rate was 50. 3%. Around 50 gigawatts (GW) of generating plant in the west of the 
Russian Federation is approaching planned retirement age. Gazprom has indicated it will seek to 
reduce natural gas supplies for electricity generation in order to free  up gas for export. At present, 
gas-fired electricity generation plants burn about  60% of the gas marketed in the Russian 
Federation by Gazprom. Gazprom has sought to reduce this by 50% by 2020, as its reservoirs 
head towards depletion.  
4.113.   In 2015, consumption of electric power in the Russi an Federation amounted to 
1,036  billion kWh, of wh ich some 97.3% was through the UES. Production of electricity reached 
1,050 billion  kWh, with UES -connected facilities accounting for 97.8%. Some 521.6  million  Gcal of 
thermal energy were produced during 2015. Demand for electric and thermal power in 2015 was 
lower than in 2014, mainly on account of the warmer climatic conditions.68 
4.114.   The Federal Grid Company (FGC) is the operator and manager of the Russian Federation's 
UES, including high -voltage transmission lines, with the status of a natural monopoly. FGC 
provides electricity transmission and technological connection services across 77 Russian regions, 
covering a territory of 15.1 million square kilometres. With more than 139,000 km of transmission 
lines and 334  GVA of installed transformer capacity, FGC is  the largest publicly traded electricity 
                                                
65 Financial Times Online News  (2015).  
66 Financial Times Online News (2015).  
67 World Cold online information. Viewed at: 
http://www.worldcoal.com/coal/17102013/The_mining_landscape_Part_One_140 / [5 April 2016]. 
68 The average temperature in the month of February 2015 was 4.1 degrees Celsius higher than in 
February 2014, which translated into a 2.3% decrease in energy consumption.  Ministry of Energy (2016).  WT/TPR/S/345 • Russian Federation  
 
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  transmission company in the world.69 FGC is majority owned (80.1%) by the public joint -stock 
company Rosseti, whose controlling shareholder (87.9%) is the State, represented by the Federal 
Agency for State Property M anagement of the Russian Federation. Be sides FGC, Rosseti has 
36 other subsidiaries and affiliates, including 14 interregional distribution grid companies. Rosseti's 
power transmission and dis tribution network comprises 2.3 million km of lines and 
490,000  substations with transform ation capacity of more than 761 GVA.70 
4.115.   Some non -nuclear generators have been privatized in the Russian Federation: OGK -4 is 
76% owned by E.ON, and OGK -5 is 56% owned by Enel, while others are owned by Inter RAO or 
Gazprom. In May 2 015, the Ministry of Economic Development announced delays to 
commissioning new nuclear power plants due to "a current energy surplus ". In July 2012, the 
Ministry of Energy announced plans concerning commissioning of 83 GW of new electricity 
generation cap acity by 2020, including 10 GW of nuclear generation. In 2013 this was revised by 
the Ministry to 28.26 GW by 2019. Total investment envisaged was Rub 8,230 billion 
(Rub 4,950  billion on upgrading power plants and  Rub 3,280 billion for new grid capacity plus 
Rub 1,320 billion on nuclear).  
4.3  Services  
4.116.   In 2015, services contributed 62.3% to the GDP of the Russian Federation. Real estate, 
renting and business activities is the main services sub -sector (17.3% of total GDP), followed by 
wholesale and retail trade ( 16.3%), transport and communications (7.9%), compulsory social 
security (6.4%), and financial intermediation (5.3%) (Section 1.1). The Ministry of Economic 
Development is the Russian Federation's WTO services enquiry point. In its WTO entry terms, the 
Russian Federation made specific commitments on  11 services sectors and on 116  sub-sectors.71 
4.3.1   Financial services  
4.117.   Since 2013, t he Central Bank of Russia (CBR)  has regulate d banks, insurance companies72, 
securities markets, private pension funds and micro -finance institutions. According to the IMF, with 
the transformation of the CBR into a "mega regulator" , financial supervision has been enhanced, 
and the CBR has managed to stabilize the financial system after the quasi closure of international 
financial markets to  Russian entities (Section 1.1). Noneth eless, the financial sector is dominat ed 
by banking activities , with state -owned banks playing a dominant role. Thus, there is considerable 
scope for deepening and diversifying the Russian financial sector by further developing the 
securities and insurance markets. There are also significant variations in financial inclusion 
between urban and rural areas across income levels.73 
4.118.   In its GATS commitments, the Russian Federation indicated that it would review the 
operation and necessity for the implementation of temporary discretionary measures in the 
banking and insurance sub-sectors within five years of its accession to the WTO  (i.e. by 
August  2017) .  
4.3.1.1   Banking  
4.119.   According to the IMF, the CBR has taken successful anti -crisis m easures to preserve 
banking stability. The Government's capital support programme was completed and most 
forbearance measures which were introduced in December 2014 have been lifted, with the 
exception of continued flexibility in provisioning against loa ns restructured during 
December  2014-December 2015. To offset the impact of tighter capital definition and new capital 
buffers under Basel III, the CBR lowered the minimum regulatory capital adequacy ratio (CAR) of 
banks from 10% to 8%, which is in line with  the minimum Basel III  requirements . Moreover, retail 
deposits have increased, liquidity conditions improved, and bank s' reliance on CBR funding 
decreased . Furthermore,  bank lending is relatively diversified across sectors without significant 
                                                
69 Federal Grid Company online informati on. Viewed at:  
http://www.fsk-ees.ru/eng/company /about _company /. 
70 Rosseti online information. Viewed at: http://www.rosseti .ru/eng/about/history /. 
71 WTO document WT/ACC/RUS/70/Add.2, 17 November 2011.  
72 In 2011, t he Federal Services of Insurance Supervision (FSIS) was integrated into the Federal 
Financial Market Services (FFMS) , the securities supervisory body. Subsequently, the FFMS wa s merged with 
the C BR. 
73 IMF (2016b).  WT/TPR/S/345 • Russian Federation  
 
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  concentration  in the oil and gas industry.74 However, the Russian banking system remains weak 
and faces significant challenges, as reflected in the closure of many, mainly small, banks.75  
4.120.   The CBR considers 10 domestic banks as having "systemic ally important"  status  since 
together they hold more than 60%  of the total assets of the Russian banking sector.76 The largest 
bank in terms of assets is Sberbank ; its founder and principal shareholder (50%) is the C BR.77 VTB 
Bank, the second largest bank by assets, is mainly owned by  the Russian Government (60.9%) 
and the remaining shares are traded on the Russian stock market. Gazprombank, established 
in 1990 to provide banking services for the gas industry, has since become the third largest bank.  
The Ministry of Finance owns 100% o f Gazprombank's t ype A preferred shares  and the State 
corporation Deposit Insurance Agency owns 100% of type B preferred shares. 78 
4.121.   Foreign capital participation in the Russian banking sector decreased from a peak of 25.1% 
in 200 8 to 16.9% at the beginning of 2016 (Chart 4. 4). Starting in 2016, the methodology used by 
the CBR to calculate foreign capital participation in the total authorized capital of credit institutions 
is that set out in Article  18 of the Federal Law "On Banks and Banking Activities". Und er the new 
methodology, foreign capital participation is 13.4%.79 Under its GATS commitments , the Russian 
Federation  permit s the establishment of representative offices of foreign banks. The right to 
foreign capital participation in the Russian banking syst em is limited to 50%. A quota on foreign 
participation is applied to the entire banking sector. The Russia n Federation 's GATS commitments 
permit it to impose temporary limits on foreign investment in the banking and insurance sectors, if 
foreign investment  in those sectors exceed s a specified charter capital ratio. This ratio is calculated 
annually and, if foreign investment exceeds this ratio, the CBR has the discretionary authority to 
take certain actions to temporarily limit further foreign investment.  
Chart 4.4 Foreign capital participation in the Russian banking system, 2008 -16 
25.128.5
24.528.127.7
26.1
26.4
21.7
16.9
13.4
1012141618202224262830
01-Jan-08 01-Jan-09 01-Jan-10 01-Jan-11 01-Jan-12 01-Jan-13 01-Jan-14 01-Jan-15 01-Jan-16Pre-2016 methodology New methodologyChart 4. [Russia]  Foreign capital participation in Russian banking system, 2008 -16
% of foreign investments in aggregate capital of credit institutions
Information provided by the authorities of the Russian Federation. Source:
 
Source:  Information provided by the Russian authorities.  
4.122.   At the beginning of 2015, the Russian Federation  had 1 ,021 credit insti tutions registered  
(down from 1 ,049 at the beginning of 201 4) and 7 33 operating credit institutions (credit 
institutions that have the right to conduct banking operations), down from 834 at the beginning 
of 2014. As of 1 March 2016, there were 104 foreign -invested credit institutions in the 
Russian  Federation, down from 113 in 2012 (Table 4.2 4). 
                                                
74 The oil and gas industry typically borrows externally to take advantage of the lower cost of funding 
and deeper capital markets.  
75 IMF (2016b).  
76 CBR online information. Viewed at: http://cbr.ru/press/pr.aspx?file=20102015_100129ik2015 -10-
20t10_01_03.htm  (in Russian).  
77 The remainder of Sberbank's shares are held by international and domestic investors.  
78 These preferred shares h ave a different share nominal value.  According to R egulation No. 354 of 
28 July 2015 , the Government of the Russian Federation can indirectly determine the decisions made by the 
Gazprombank  through having more than 50% of the total number of votes per voti ng shares.  
79 Law No. 295 -1 of 2 December 1990 "On Banks and Banking Activities", Article 18 as amended by Law 
No. 372 -FZ of 14 December 2015.  WT/TPR/S/345 • Russian Federation  
 
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  4.123.   Credit institutions in the Russian Federation had Rub 82,999 billion  in assets in 2015, up 
from Rub 49,510 billion in 2012. L oans extended to the non -financial sect or and to individuals 
have also increased significantly over the last few years  (Table 4. 25). 
Table 4.24 Russian credit institutions, 2012 -16 
 01.01.12  01.01.13  01.01.14  01.01.15  01.03.16  
Number of credit ins titutionsa 113 117 122 113 104 
 Share of the banking sector (%)  
in assets  16.9 17.8 15.3 13.9 12.8 
in own funds (capital)  17.6 19.3 17.3 17.2 16.8 
in loans to non -financial organizations  14.0 14.2 12.0 11.6 11.1 
in interbank loans  30.0 27.3 19.0 14.1 15.9 
in household deposits  11.4 13.5 12.5 12.0 11.7 
in deposits and other fund s on accounts 
of legal entities (without credit 
institutions)  17.4 18.6 15.6 13.7 11.7 
a Foreign invested at 50% or greater.  
Source:  Information provided by the Russian author ities. 
Table 4.25 Main indicators for the banking sector, 2012 -15 
  2012  2013  2014  2015  
Credit institutions assets, total (R ub billion)  49,510  57,423  77,663  82,999 
% change, corresponding date of the previo us year (%)  18.9 16.0 35.2 6.9 
Loans extended to non -financial sector (R ub billion)  19,971  22,499  29,536 33,300 
% change, corresponding date of the previous year (%)  12.7 12.7 31.3 12.7 
Overdue debt, % of loans extended to non -financial sector (%)  4.6 4.1 4.2 6.2 
Loans extended to individuals (R ub billion)  7,737  9,957  11,329 10,684 
% change, corresponding date of the previous year (%)  39.4 28.7 13.8 -5.7 
Overdue debt, % of loans extended to individuals (%)  4.0 4.4 5.9 8.0 
Source:  Information provided  by the Russian authorities.  
4.124.   In 2015, housing mortgage loans (HMLs) reached Rub 3,912 billion (Chart 4.5), including 
overdue arrears of Rub 44 billion. Arrears in foreign currency denominated loans reached the 
equivalent of Rub 135 billion, including overd ue arrears of Rub 27 billion. The share of overdue 
arrears in foreign currency denominated loans amounted to 38% in the overall percentage of 
arrears on housing mortgage loans. The total share of overdue arrears increased from 1.3% 
in 2014 to 1.8% in 2015.  WT/TPR/S/345 • Russian Federation  
 
- 146 - 
 
  Chart 4.5 Outstanding HMLs, 2010 -15 
0.04.08.012.016.020.024.0
02505007501,0001,2501,5001,7502,0002,2502,5002,7503,0003,2503,5003,7504,0004,250
IIIIIIIV IIIIIIIV IIIIIIIV IIIIIIIV IIIIIIIV IIIIIIIV
2010 2011 2012 2013 2014 2015
Outstanding HMLs in rubles
Outstanding HMLs in foreign currency
Share of overdue HMLs in rubles in the total amount of outstanding HMLs in rubles (right-hand scale)
Share of overdue HMLs in foreign currency in the total amount of outstanding HMLs in foreign currency (right-hand scale)Chart 4. [Russia]  Outstanding HMLs
(Rub billion) (%)
WTO Secretariat's calculations, based on data from the Central Bank of the Russian Federation.  Viewed 
at: http://www.cbr.ru/Eng/statistics/?PrtId=svs (Accessed to data in April 2016).Source
 
Source:  WTO Secretariat calculations, based on data from the CBR. Viewed at: 
http://www.cbr.ru/Eng/statistics/? PrtId=svs  (data accessed in April 2016).  
4.125.   In 2015, the volume of HMLs that were refinanced through issuing mortgage -backed bonds 
(an asset on a credit institution 's balance sheet) stood at Rub 8.4 billion. Since 2012, the 
percentage  of assets (as a share o f GDP) has increased steadily from 70 % to 102.7%. Over the 
same period, loans (as a percentage of GDP ) have increased from 50.7% to 70.7%. Data on 
refinancing of HML s are shown in Chart 4. 6. Securitized mortgages have increased in importance 
since 2012.  
Chart 4.6 Refinancing HMLs, 2010 -16 
(Rub billion)  
 - 50,000 100,000 150,000 200,000 250,000 300,000
01/01/2010
01/07/2010
01/01/2011
01/07/2011
01/01/2012
01/07/2012
01/01/2013
01/07/2013
01/01/2014
01/07/2014
01/01/2015
01/07/2015
01/01/2016Refinancing HMLs by selling HML pool without forming an additional financial instrument
Refinancing HMLs by selling HML pool with subsequent issuing mortgage securities
Refinancing HMLs with keeping an asset kept on the credit institution's balance sheetChart 4. [Russia]  Refinancing HMLs (claims on HMLs) with selling to other institutions and  
with keeing assets on a credit institution's balance sheet
(Rub billion)
WTO Secretariat's calculations, based on data from the Central Bank of the Russian Federation.  Viewed 
at: http://www.cbr.ru/Eng/statistics/?PrtId=svs (Accessed to data in June 2016).Source
 
Source:  WTO Secretariat calculations, based on data from the CBR. Viewed at: 
http://www.cbr.ru/Eng/s tatistics/?PrtId=svs  (data accessed in June 2016).  WT/TPR/S/345 • Russian Federation  
 
- 147 - 
 
  4.3.1.2   Insurance  
4.126.   In 201 5, the top five insurers in the Russian Federation  accounted for 47% of total written 
premiums in all market segments. Rosgosstrakh (RGS) is the largest insurance company , with 
nearly US$3.4 billion in gross written premiums in 2014, and a market share of over 15%.80 Sogaz 
Insurance Group  is the second -largest insurance company81, followed by Ingosstrakh Insurance 
Company . It held 7% of the Russian insurance market in 2014, reporting gross wr itten premiums 
of more than US$1.7 billion.82 
4.127.   An action plan for the insurance sector , "Development strategy of insurance business in 
the Russian Federation up to 2020 ", was set out in Governme nt Decree No. 1293 -4 of 
22 July 2013. The date of introduction o f the relevant legislation is set for 2017.  Under  its GATS 
commitments, the Russian Federation  does not  permit the establishment of insurance branches in 
the field of life and non -life insurance . By August 2021 (i.e. 9 years from the date of its accession 
to the WTO), the Russian Federation is to allow commercial presence in the form of a branch of a 
foreign insurer in life insurance and non -life insurance (except insurance of state procurement and 
mandatory insurance other than mandatory insurance of civil  liability of owners of cars) subject to 
licensing, financial soundness and guarantee deposit requirements. Particular requirements for 
establishment of a branch by a foreign insurer are also set out in the Russian Federation's GATS 
commitments.83  
4.128.   Under it s GATS commitments, the Russian Federation  also retained a limitation on 
mode  3 market access for insurers that are subsidiaries of a foreign investor in which foreign 
participation in the charter capital (voting shares) exceeds 51%, for a period of 5 year s starting 
from the date of its WTO accession. Mode 3 is unbound with respect to issuance of licences to 
provide life insurance services and mandatory personal insurance of passengers and mandatory 
insurance of civil liability of owners of cars. A similar restriction is retained for reinsurance and 
retrocession.  
4.129.   Law No.  4015-1 of 27 November 1992 "On Organization of Insurance Business in the 
Russian Federation" contains restrictions on foreign insurance companies ' activities through 
subsidiaries and associ ated companies .84 Article 6 of the law provides that subsidiaries of foreign 
investors of majority foreign -owned compani es are precluded from providing mandatory insurance, 
life insurance or other mandatory state insurance. In addition , such enterprises can not provide 
insurance in respect of consignments, deliveries or insurance of purchases for state needs or 
property of st ate or municipal entities.  
4.130.   Insurance organizations that are subsidiary companies of foreign investors or those having 
a share of foreig n investors in their authorized capital of over 51% may not carry out the following 
activities in the Russian Federation until 22 August 2017 (i.e. five years after the Russian 
Federation's WTO accession): insurance of citizen's life, health and property a t the expense of 
funds allocated for these purposes from the corresponding budget to federal executive bodies 
(insurants); insurance related to the procurement of goods, works and services for public and 
community needs; insurance of property interests of the government and municipal organizations; 
life insurance under paragraph 1 of Article 4 of Law No.  4015-1; and compulsory insurance of civil 
liability of car owners in the Russian Federation.  
                                                
80 RGS originates from Gosstrakh, the insurance monopoly  during Soviet times . RGS offers a wide 
variety of insuranc e products, including personal and business property insurance, business liability insurance, 
medical insurance and life insurance. RGS is publicly traded on the Moscow Exchange. It has a market 
capitalization of nearly US$2.51 billion. The Russian Governm ent is not a shareholder.  
81 Sogaz was established in 1993 . In 2014, it had combined gross written premiums of over 
US$2.7  billion and a market share of about 11%. Gazprom  holds a 40% stake in Sogaz. Rossiya Bank, Volga 
Group and other business entities als o hold substantial stakes. The Russian Government is not a shareholder.  
82 Nearly half of Ingosstrakh Insurance Company's premiums came  from its property insurance 
business. Personal injury insurance accounted for another 22% of premiums, while auto insuran ce made up 
15% of 2014 premiums. Seven shareholders control more than 96% of Ingosstrakh's shares. The shares are 
not publicly listed.  The Russian Government is not a shareholder.  
83 WTO document WT/ACC/RUS/70/Add.2, 17 November 2011, pp 39 -41. 
84 As noted b y the authorities, international norms provide that an "associated company" is deemed to 
be one in which a foreign investor holds more than 20% of shares, whereas in the Russian Federation the 
limitations are set at 49% and 51%.  WT/TPR/S/345 • Russian Federation  
 
- 148 - 
 
  4.131.   An insurance organization that is a subsidiary of a foreign i nvestor, may provide insurance 
in the Russia n Federation , subject to the requirement that the foreign investor has performed the 
activity of insurance company for the preceding 15 years, in compliance with the legislation of the 
home jurisdiction, and has also been active in the insurance market of the Russia n Federation  for 
at least 2 years. These requirements do not apply to EU -based investors. Law No. 234-FZ 
amended Article 6.4 of Law No.  4015-1. An insurance organization that is the subsidiary of a 
foreign investor (the principal organization) or has a partner share of foreign investors in its 
authorized capital of over 49% has the right to perform insurance activity in the Russian 
Federation if the foreign investor (the principal organization) is an ins urance company that has 
carried out its activity in conformity with the legislation of the cor responding State for at least 
5 years.85 
4.132.   The Russia n Federation  applies a total foreign investment quota limitation on the whole  
sector. The share of foreign  capital in the charter capital of all insurance companies registered in 
the Russia n Federation  is not permitted to exceed 25% .86 If the indicated maximum allowable 
shareholding is attained or exceeded , the CBR no longer issues  permits for the performance of 
insurance activities to subsidiaries of foreign insurance companies and insurance organizations 
(foreign investors' share of which is above 49%). The CBR also has the discretion to take certain 
temporary actions affecting foreign investments in the insurance s ector, if fore ign investments 
exceeded the 50% ratio.  
4.133.   Prior permission is required before shares in the charter capitals of Russian insurance 
companies may be transferred to foreign investors and their subsidiaries. Any increase in the 
capital of an insura nce company from foreign investors' funds and their subsidiaries also requires 
prior permission from the insurance supervisory authority.  
4.3.2   Telecommunications and postal services  
4.134.   A key priority of the Russian Federation is to strengthen its telecommunication  industries 
and further invest in information technologies (IT). The Russian Federation's basic 
telecommunications indicators are set out in Table 4. 26.  
Table 4.26 Telecommunications indicators, 2012 -15 
  2012 2013  2014  2015 a 
Subscribers  
Fixed telephony ('000)  42,168  40,473  38,213  36,525  
Per 100 inhabitants  29.4 28.2 26.1 24.9 
Fixed broadband ('000)  20,923  23,745  24,825  26,679  
Per 100 inhabitants  14.6 16.5 17.0 18.2 
Cellular mobile telephony (' 000) 208,065  218,300  221,030  227,288  
Per 100 inhabitants  145.1  151.9  151.1  155.1  
Active mobile broadband ('000)  75,442  85,908  93,778  101,180  
Per 100 inhabitants  52.6 59.8 64.1 69.0 
Wireless b roadband (' 000) 75,588  86,070  93,892  101,305  
Per 100 inhabitants  52.7 59.9 64.2 69.1 
% of households with Internet  72.1 60.3 69.1 69.9 
% of people using the Internet  63.8 70.0 64.0 67.0 
Revenues (in US$ million)  
Telecommunication services  45,552  46,377  39,483  25,023  
Of which:          
Fixed telephony services  7,982 7,000  5,481  3,214  
Mobile network  22,024  22,571  18,827  10,842  
a Provisional.  
Source:  World Telecommunications/ICT Indicators 2015, and info rmation provided by the 
Russian  authorities.  
                                                
85 In addition, the require ments for EU investors have been repealed, and replaced by a new paragraph 
10 of the Law that provides that restrictions established in the first and second paragraphs of item 3 and 4 of 
this Article shall not extend to insurance organizations which are su bsidiary companies of foreign investors 
(principal organizations) or which have a foreign investors share in their authorized capital of over 49%, which 
were created or reorganized before 22 August 2012, and if, in conformity with the legislation of the Ru ssian 
Federation, operating on that date they had the right to carry out insurance activity indicated in the first and 
second paragraphs of that Article.  
86 Law No. 267 -FZ of 25 December 2012 increased the maximum charter capital to 50%.  WT/TPR/S/345 • Russian Federation  
 
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  4.135.   In its GATS commitments , the Russian Federation undertook obligat ions in relation to the 
following sub -sectors:  
a. Public voice telephone services (CPC 7521); local telephone services (CPC 75211); long 
distance and international communication services (CPC 75212); mobile telephone 
services (CPC 75213);  
b. Packet switched data  transmission services (CPC 7523);  
c. Circuit -switched data transmission services (CPC 7523);  
d. Private leased circuit services (CPC 7522, 7523);  
e. Electronic mail (CPC 7523)  
f. Voicemail (CPC 7523);  
g. Online information and data base retrieval (CPC 7523);  
h. Electronic  data interchange (EDI) (CPC 7523);  
i. Enhanced/value -added facsimile services, incl. store and retrieve;  
j. Code and protocol conversion;  
k. Online information and/or data processing (including transaction processing) (CPC843); 
and 
l. Other (CPC 7529).  
4.136.   The Russian F ederation reserved limitations in mode 3 concerning incorporation and a 
maximum foreign equity cap of 49% for charter capital. According to the authorities, this 
requirement has been lifted.  
4.137.   The Ministry of Telecom and Mass Communications ( MTMC or Minsvyaz ) is develop ing and 
implement ing national policy and legal regulation in the following areas:  
 Telecommunications, including the allocation and conversion of the radio frequency 
spectrum;  
 Postal communications;  
 Mass media, including the electronic media, de velopment of the Internet, television 
and radio broadcasting, and related technologies;  
 Publishing, printing, and distribution of printed media;  
 Information technology, including creation of government information resources and 
promotion of access to such resources; and  
 Personal data processing and Internet governance.  
4.138.   The legal regulation of these areas has changed  over the last few years . In order to reform 
universal service to facilitate the construction of communication lines in remote and inaccessible  
areas , Law No.  9-FZ of 3 January 2014  "On amending the Federal law on communications" was 
adopted. The Law provides that , in localities with a population between 250 and 500 with public 
access to telephone services , there must be at least one Internet acc ess point installed. Such an 
access point must be connected through a f ibre-optic line, and be capable of ensuring data 
transmission at not less th an 10 megabits per second. The L aw states that the obligation to 
provide universal telecommunication services  on the whole territory of the Russia n Federation  is 
entrusted by the Government to the operator that occupies the dominant position in the public 
communications network over at least two thirds of the regions of the Russian Federation. Such an 
operator ma y not waive its responsibility for the provision of universal services.  
4.139.   A contract for provision of universal telecommunication services should be for a period of 
10 years. For any universal service contract entered into after the date of entry into force  of Law 
No. 9-FZ, the amount of financial support established by the contract for the provision of universal 
telecommunication services for any given year may not exceed the total size of the Universal 
Service Fund in that year. According to Government Order No. 437 -R of 26 March 2014 , the 
obligation to provide universal telecommunication services is imposed on the open joint -stock 
company (OPSC) Rostelecom . That order entered into force on 1 April 2014.  WT/TPR/S/345 • Russian Federation  
 
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  4.140.   The Federal Agency on Press and Mass Communications (Rospechat), under  the M TMC, 
provides subsidies on a competitive basis from the federal budget for the production of , inter alia, 
socially significant electronic and print media, television and radio program mes, and television 
documentaries .87 
4.141.   Construction of high speed fibre -optic networks in the framework of reform of universal 
communication services was to be completed in 11  regions of the Russian Federation during 2015. 
According to the authorities, at the end of 2015, 1,188 access points were commission ed on the 
territory of 65 regions  of the Russian Federation. To solve the problem of a digital divide in the 
country, some 215 million km of fib re-optic communication lines are planned, with corresponding 
benefits for larger rural settlements with a total population of up to 37 million people.  
4.142.   The development of broadband services in the Russia n Federation  has progressed rapidly. 
At the end of 2013, the average connection speed in the country  was 7.45 Mbps, more than 
double the world average of 3.82 Mbps. The Russian Federation was among the 24 countries with 
the highest -speed Internet access. It is expected that by 2018, the average connection in the 
Russia n Federation  will reach the level of 44 Mbps. According to the World Bank88, the 
Russian  Federation has one of the lowest levels of prices for  Internet services in the world . On a 
number of indicators, the Russia n Federation  ranks among the world leaders in terms of 
broadband services.  
4.143.   The cost of an unlimited Internet connection in the Russia n Federation  at 5 M bps does not 
exceed 5% of monthly income for 90% of households. According to the International 
Telecommunication Union  (ITU) , in 2014 , the Russia n Federation  had a high level of penetration of 
mobile Internet access, with an  overall average  of 60%. The Russian Federation has similar 
availability of mobile Internet access to that found in other developed countries.  
4.144.   Resolution No. 1284 of 29 November 2014 "On approval of the regulations on 
non-discriminatory access to infrastructure to accommodate the t elecommunications networks " 
concerns non -discriminatory access to infrastructure for users and the creation of competitive 
market conditions in the public telecoms sector. The Resolution r egulat es the actions of natural 
monopolies operating in public telec ommunications and owners of the infrastructure facilities 
directly used to provide public telecommunications services : It sets out requirements for 
non-discriminatory access by users to the infrastructure designed for the provision of 
telecommunication ser vices,  applicable to all owners of infrastructure. Furthermore, it : establish es 
the duty of the owner of the infrastructure to provide users of public telecommunications services 
with the right to receive public telecommunications services from the service  provider of their 
choice ; aims to ensure equal conditions of access to infrastructure for users of the infrastructure 
(operators) and the availability of information about conditions of access to infrastructure ; and 
provide s users with open information on  infrastructure  to enable stakeholders to compare the 
conditions of access to the market.  
4.145.   Order of the MTMC No. 279  of 4 September 2014, amended the methodology for 
calculating the amount  of a one -time fee and an annual fee for the use of radio frequency 
spectrum in the Russian Federation , and introduced a new charging principle. Now fees for cellular 
operators depend on the volume  of radio spectrum used, and not on the number of base stations 
in the network. This approach to determining fees stimulates ce llular operators to increase their 
networks' coverage without increasing the financial burden on the use of radio frequency 
spectrum.  
4.146.   Mobile number portability has been guaranteed by Law No.  253-FZ of 25 December 2012 
(in force since 1 December 2013) "On a mending the Federal Law 'On communications ' and Articles 
333.33 and 333.34 of the Tax Code of the Russian Federation". It provides that mobile telephone 
subscribers have the right to preserve a subscriber number while concluding a mobile services 
contract with another provider. The number of mobile telephone numbers transferred from one 
provider to another since the launch of the project in October 2015 has exceeded 2 million.  
                                                
87 Rospechat Order N o. 380 "On the organization of work for the provision of state support in the field of 
electronic mass media in 2016" , 25 December 2015.  
88 World Bank on line information. Viewed at: 
http://documents.worldbank.org/curated/en/2015/01/24140845/russian -federation -sector -assessment -
broadband -russia . WT/TPR/S/345 • Russian Federation  
 
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  4.147.   Work on improvements to quality management of communication services has progress ed 
from consultations with industry and experts and resulted in a draft concept for management of 
communication quality in the Russian Federation. The concept is designed to upgrade the industry 
to a new level by providing mechanisms for the assessment of the quality of service in a regulatory 
framework. Th e objective of providing an objective assessment of quality, together with unified 
public monitoring methods and involvement of consumers in the process  is to allow customers to 
make more informed choices  about the quality of services.  
4.148.   In December 2014, the Minister of Telecom and Mass Communications approved the 
"Methodology for assessing the quality of mobile communication services". The methodology was 
developed to harmonize rules and requirements for assess ing the quality of mobile communication 
services . This  will allow network operators, subscribers, analytical agencies, supervisory 
authorities, administrations of the regions of the Russian Federation and other stakeholders to 
obtain objective informa tion with which  to evaluate the quality of telecommunications services and 
choice of service provider s. The methodology also assesses the quality parameters of voice 
services, SMS delivery, and data transmission, as provided by different operators.  
4.149.   Simplif ied procedures for the inauguration of networks were set in place on 1 January 2015 
by an order of the MTMC. According to the authorities, these new procedures will greatly facilitate 
the deployment of new communications networks, in particular for remote and sparsely populated 
areas. According to the authorities, all procedures are transparent and clearly regulated.  
4.150.   In December 2014, Order of the MTMC No. 1342 "On the procedure of provision of 
telephone communication services" was issued.89 The Order is aim ed at improving the relationship 
between subscribers and operators in relation to both fixed and mobile communications services in 
public networks. The Decision "On the procedure of provision of telephone communication 
services" introduces uniform rules fo r the provision of telephone services; it replaced the 
previously existing "rules of provision of services of mobile communications " and "rules of 
provision of local, Interzone, long -distance and international telephone services ". The Decision 
provides for  the possibility of remote interaction between the operator and the subscriber through 
a personal cabinet or other tools, provided by the operator. A subscriber can change  the tariff 
plan, composition of services, terms and conditions, as well as perform o ther actions related to the 
provision of telephone services. The Decision establishes a duty for operators of mobile and fixed 
communication services to notify the subscribers not less than 10 days prior to services tariff 
changes  – through the media when using fixed -line telephony and through SMS when using mobile 
communications.  
4.151.   Work is ongoing on the moderni zation and improvement of postal communication 
regulation. An Expert Council on development of the postal industry and its regulation was set up 
by Order of the MTMC No. 175  of 11 July 2013.  This project was undertaken jointly with the 
Federal Customs Service (FCS) of the Russian Federation and the federal state unitary enterprise 
(FSUE) Russian Post.  
4.152.   Order of the MTMC  No. 518  of 31 December 2014 estab lished a development strategy for 
the FSUE Russian Post for the period up to 2018. In addition, Order of the M TMC No. 105  of 
10 April 2015 approved a concept for the development of postal services in the Russian Federation 
for the period until 2020. Order No. 105 defines the objectives of postal service development, and 
the principles and tasks of state regulation in the field of postal services. The concept also 
addresses issues related to the availability of postal services, market development and 
improve ment of the quality of postal services.  
4.153.   Order of the M TMC No. 234  of 31 July 2014 approved rules for the provision of postal 
services. It establishes the possibility to send simple and customized postage in electronic form, as 
well as regulat ing the intake  and delivery features of such mail.  
4.154.   In accordance with Order of the MTMC  No. 144  of 21 June 2013 a working group was 
established with the participation of the F CS and the FSUE Russian Post in order to formulate a 
joint policy in the field of technological  and legislative initiatives in the implementation of customs 
operations and procedures for international mail. The Working Group issued Orders No. 609/69 of 
                                                
89 The order was developed by the MTMC in acc ordance with the Action Plan for the promotion of 
competition and antimonopoly policy improvement.  WT/TPR/S/345 • Russian Federation  
 
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  1 April 2013 and No. 1788/258  of 23 September, 2013 " On the ground of international mail 
exchange,  subject to the postal service on the territory of the Russian Federation” with the aim of 
provid ing for more effective processing of international mail through the opening of a new 
international mail exchange.  
4.155.   Maximum public postal tariffs are set out in Order of the F ederal Antimonopoly Service 
No. 232/16  of 15 March 2016 " On the approval of tariffs for forwarding services of domestic 
correspondence (postcards, letters, parcels) provided by FSUE Russian post ".90 
4.156.   In order to ensure the availability of posta l services for people with disabilities, consistent 
with the requirements of Law No.  419-FZ of 1 December 2014 " On amendments to certain 
legislative acts of the Russian Federation on the social protection of disabled persons in connection 
with the ratifica tion of the Convention on the rights of p ersons with disabilities" the MTMC  
approved Order No. 355 of 22  September 2015, which  defines the conditions for unhindered 
access of disabled people to the facilities and services of the postal service.  It establis hes 
requirements to assist people with disabilities to overcome barriers to postal services.  
4.157.   In 2015, the public joint -stock company (PJSC)  Post Bank  was created in partnership with 
the FSUE Russian P ost and VTB group. The project involves the provision of  banking services 
based on the existing network of postal offices. The creation of a bank would provide the 
possibility of access to modern financial services to citizens throughout the country, including in 
remote and sparsely populated areas.  
4.3.3   Transport  
4.158.   The Russian Federation has some 86,000 km of rail , with 3 4,000 k m of that electrified . It 
has 1.3 million km of public roads, more than 100 ,000 km of inland waterways, 7 ,300 km of tram 
and trolleybus lines, about 500 k m of underground lines, nearly 850  million tons of cargo handling 
capacity at its sea ports, and 297 airfields, 117 of which form the bas e national airfield network. 
In 2015, the share of transport in total GDP was 5.2%, and 32.5% in total services exports. The 
main transport indicators are sho wn in Table  4.27. 
Table 4.27 Freight and passenger transport volumes , by type of transport, 2012 -14 
  2012  2013  2014  % of total in 2014  
Passengers (in million)       
Total 21,042  19,623  19,535  100.0  
     Automobile (bus)  12,470  11,591  11,563  59.2 
     Underground  3,446  3,491  3,437  17.6 
     Trolleybus  2,051  1,735  1,803  9.2 
     Tram 1,928  1,629  1,551  7.9 
     Railway  1,059  1,080  1,076  5.5 
     Air 74 85 93 0.5 
     Inland waterway  14 13 13 0.1 
Cargo tr ansportation (in million tonnes)       
Total 10,539  10,178  9,890  100.0  
     Automobile  5,842  5,635  5,417  54.8 
     Industrial railway transport  3,266  3,153  3,107  31.4 
     Railway transport of general use  1,272  1,237  1,231  12.4 
     Inland waterway  141 135 119 1.2 
     Marine  18 17 16 0.2 
     Air 1 1 1 0.01 
Note:  Sorted by size of 2014 data.  
Source:  Information provided by the Russian authorities.  
4.159.   The Ministry of Transport (MT) is responsible for all transport  activities in the Russian 
Federation. I t carries out state policy and normative and legal regulatory  functions in the field s of: 
                                                
90 The Order was drawn up in accordance with the Regulations on the State Regulation of Tariffs for 
Public Telecommunications and P ublicly Available Postal S ervice approved by the  Government  Decree No. 637  
of 24 October 2005.  WT/TPR/S/345 • Russian Federation  
 
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    Aviation: c ivil aviation, airspace management and air navigation services of the users of 
the country's airspace, aerospace search and rescue, and s tate registration  of rights to 
aircraft;  
  Maritime  affairs : transport (including maritime ports), inland waterway s, and operation 
and security of the shipping hydraulic structures;  
  Rail transport;  
  Road transport: automobile (including transport controls at crossing point s on the state 
borders of the Russian Federation), road management, and road traffic administration; and  
  Electricity: urban electricity (including the underground) and industrial transport.  
4.160.   The main policy document is the Transport Strategy of the Russia n Federation for the 
period up to 2030.  It sets out several objectives, including91: 
  the development of a common transport space of the Russia n Federation;  
  providing for access to , and improving  the quality of transportation and logistics services 
for fre ight transportation ; 
  providing for access to , and improving the quality of transport services for the public in 
accordance with social standards ; 
  integration into the world transport s ystem and realization of the transit potential of the 
Russian Federati on; 
  increasing the security of the transport system;  and 
  reducing the negative impacts of the transport system on the environment . 
4.161.   The key instrument for the implementation of the Transport Strategy is the State 
Program me of the Russian Federation "On th e development of the transport system" , which 
includes the tasks of92:  
  acceleration of movement of goods and lowering of transportation costs in the economy;  
  increasing the availability of transport services for the public;  
  improving the competitiveness  of the Russian transport system in the world market  for 
transport services ; and 
  improvement of integrated security and sustainability of the transport system.  
4.3.3.1   Rail transport  
4.162.   The railway system is the key mode of transportation in the Russian Federation. It is the 
third largest rail network in the world in terms of track length.  Rail plays an integral part in the 
freight transportation market, comprising 45.3% of total freight transport in 2015 . The high share 
of rail in the Russian freight transportation market is a result of the country 's geography, the 
economic importance of commodity production and heavy industry , and the limitations of other 
transportation networks.  Freight rail volumes in the Russia n Federation  are mostly comprised of 
commodities such  as coal, oil products and oil, metals and ores, and construction materials.93  
                                                
91 Aproved by Government Decree No. 1032 -r of 11 June 2014 . 
92 Established by the Resolution of the Government of the Russian Federation No. 319  of 14 April 2014 . 
93 The Russian Federation has historically witnessed high levels of correlation between growth in GDP, 
industrial production and in rail freight turnover.  WT/TPR/S/345 • Russian Federation  
 
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  4.163.   The Russia n Federation  has been engaged in reform of the rail freight transportation 
market since 2001 (in the context of growing demand for transportation services in the econo my), 
by increasing the efficiency and stability of the existing rail infrastructure. Reforms have been 
designed to attract investment, including private investment in the sector.  
4.164.   While Russian Railways retains a monopoly in the provision of rail infrastru cture and is by 
far the major player in the provision of locomotive traction services, the regulatory framework 
gives third-party operators the legal right to access such infrastructure on a non -discriminatory 
basis alongside Russian Railways and its subsi diaries. Since 2001 , private operators have been 
expanding their fleets through the acquisition of new railcars, increasing their share from around 
30% of railcar stock s at the end of 2005, to around 80% at the end of 2014.94 
4.165.   According to the authorities, the rail transportation system in the Russia n Federation  is a 
natural monopoly, subject to state regulation, including price regulation. Prior to the formation of 
the Federal Cargo company and the First Cargo company , regulated by the State, the level of 
freight charges, including the car component of the tariff, was the same as for the market 
benchmark. Today, in the absence of Russian Railways freight car park, the significance of 
adjustable tariff rates has decreased significantly.  
4.166.   In 2013 , due to the im plementation of the international obligations undertaken by the 
Russian Federation upon its accession to the WTO , which  provide for the use of common rail tariffs 
for all users of the railway transport services, it completed the unification of tariffs for the carriage 
of goods by modes of transportation  (except transit). With regard to rail transit , a railways tariff 
policy of the CIS member States on the transport of goods in international traffic has been 
implemented, which provides for the application of  tariff conditions on all goods transit ing through 
the territory of the Russian Federation regardless of the country of origin and the destination of 
the shipment.  
4.167.   As from 27 January 2013 , cargo transportation tariffs of all kinds are defined according to 
the rules and rates in section 2 of Price List No. 10 -01 (excluding transit) , which  was previously 
used only for domestic traffic and export -import traffic through the Russian ports. Section 3 of 
Price List No. 10 -01, which was previously used for billing export and import goods transportation 
through the border transfer stations , has now been removed . The rates in Price List No. 10 -01 are 
based on the average network  costs on the federal railways and are applied in all parts of the 
infrastructure of Russia n Railways  that were taken into permanent operation, and are uniform and 
mandatory for all users of the services of Russian Railways .95 
4.3.3.2   Road transport  
4.168.   Under the GATS, the Russia n Federation  undertook  commitments in the field of road 
transport services : (a) passenger transportation (CPC 7121 , 7122) and (b) freight transportation 
(CPC 7123), with mode 3 market access, subject to company and vehicle registration in the 
Russian Federation. Mode 4 access is subject to the requirement that drivers of vehicles enga ged 
in transportation within the territory of the Russian Federation, must be Russian citizens.  
4.169.   One of the main tasks of the M T is to monitor international road transport. In 2015 , the 
length of highways of federal importance that conform to regulatory re quirements accounted for 
32,880 km, which is more than 60% of the total volume of highways of federal importance.  
4.170.   On 11 November 2014 , the State Duma of the Federal Assembly of the Russian Federation 
adopted Law No.  362-FZ "On amendments to the Federal la w 'On State monitoring of international 
road transport and liability for violation of the order of execution ' and the Code on administrative 
                                                
94 The fleet of rolling stock currently consists of general purpose rolling stock such as gondola (open 
top) cars, and speciali zed rolling stock. The total Russian railcar fleet amounted to approximately 1.2 million 
units at the end of 2014.  The most common type of railcar in the Russia n Federation  is the open top (gondola) 
car, comprising  around 46% of the total railcar fleet. Gondo la cars can be used to carry a wide variety of 
cargoes  (e.g. ferrous metals, scrap metals, ores, crushed stone, coal, timber , and containers ). Rail tank cars 
are the second most common type of railcar , comprising  around 24% of the total railcar fleet . They  are 
designed to transport liquid and gaseous commodities, such as oil products and oil.  
95 Order of the FCS No. 396 -t/1 of 18 December 2012 "On amendments and additions to the provision 
of the F CS". WT/TPR/S/345 • Russian Federation  
 
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  offences of the Russian Federation in connection with the improvement of the public monitoring of 
implementation of  international road transport" , which  provides for increased efficiency in 
monitoring international road transportation.  
4.171.   With the entry into force of Law No.  362-FZ, the supervisory bodies of the 
Russian  Federation were given additional authorities to impr ove the effectiveness of public 
monitoring of international road transport, including:  
  conformity control of transport operation permission by checking the CMR, invoice, 
certificate of origin, veterinary and phytosanitary certificates, and document confir ming the 
safety of products to establish  compliance with the sanitary -epidemiological and hygienic 
requirements, as well as submitting orders of the sender or receiver of the goods to the 
carrier of cargo transportation;  
  checking  the completeness and corr ectness of the application for the permission;  
  bringing drivers to administrative responsibility for transport execution;  
  detention until vehicles traveling from the territory of the Russian Federation whose drivers 
are fined under articles 11.26 and 11 .29 of the Code of Administrative Offences of the 
Russian Federation pay the fines.  
4.172.   On 13 July 2015 , Law No.  220-FZ was adopted "On organizing regular carriage of 
passengers and luggage by road and urban ground electric transport in the Russian Federation and 
on amendments to some legislative acts of the Russian Federation", which regulates, inter alia, the 
organization of regular carriage of passengers and luggage by road and urban ground electric 
transport, and al so regulates the establishment , change, and cancellation of regular trans port 
routes . 
4.173.   To facilitate road repairs , in 2011,  a decision was made  to create road funds that would 
allow for the medium - and long -term planning of  the development  of public roads  of both federal 
and regional importance and   would also ensure stable financial support for all areas of road 
activities. Means from the funds are used exclusively for the maintenance and construction of 
roads that would generally improve transport and operational conditions of the roads in the 
medium-term and would also reduce transport costs for road users. Article 31.1 of Law No.  257-FZ 
of 8 November 200 7 "On roads and traffic activities in the Russian Federation and on amendments 
to some legislative acts of the Russian Federation", which entered  into force on 
15 November  2015, established that the movement of vehicles exceeding the permissible 
maximum mass of 12 tonnes on roads of general use with federal status are allowed only if 
compensating for all the expenses to the roads caused by such veh icles. 
4.3.3.3   Maritime transport  
4.174.   Under the GATS, the Russia n Federation  undertook commitments on maritime transport 
services, and international transport (CPC 7211, 7212, except for  cabotage transport) .96 Maritime 
auxiliary services, and cargo handling services ar e committed  in respect of modes 2, 3, 4 , with 
restrictions on mode 3 requiring incorporation in the Russia n Federation . Internal waterways 
transport is only committed in respect of "(f) other supporting services for internal waterways 
transport ".  
4.175.   Port man agement in the Russian Federation is based on Law No.  261-FZ "On sea ports in 
the Russian Federation and the Merchant Marine Code ", according to which port management is 
carried out by the Seaport Administration.97 The Seaport Administration, under the Fede ral Agency 
of Sea and River Transport , provides  organizational, logistical and financial support to the 
execution of the seaport captains ' functions. These functions are establ ished by Law No.  261-FZ of 
                                                
96 Other forms of commercial presence for the supply of in ternational maritime transport are allowed 
only in the form of a juridical person of the Russian Federation. The Russian Federation did  not under take 
commitments on the establishment of registered compan ies for the purpose of operation of a fleet under the  
national flag (mode 3) and ship 's crew (mode 4).   
97A full list of seaports, with full descriptions of their (technical) features can be found at 
http://www.morflot.ru/deyatelnost /morskoy_transport/reestr_mp .  WT/TPR/S/345 • Russian Federation  
 
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  8 November 2007 "On sea ports in the Russian Federati on and on amendments to some legislative 
acts of the Russian Federation", other federal laws, and normative legal acts of the Government of 
the Russian Federation.98  
4.3.3.4   Air transport  
4.176.   The Federal Air Transport Agency (Rosaviatsiya) oversees civil aviation in t he 
Russian  Federation, provides government services and manages governmental property in the 
sphere of civil aviation, use of air space in the country , space platforms, governmental services in 
safety and security of transport, registration of aircraft and  scrutiny of aircraft sales. The Federal 
Air Transport Agency reports to the M T.99 
4.177.   In its GATS commitments, the Russia n Federation  undertook limited commitments on air 
transport services, in respect of maintenance and repair undertaken on an aircraft or par t thereof 
when it is withdrawn from transport services. Mode 3 is subject to the requirement of 
incorporation in the country , and foreign participation in the charter capital of the juridical persons 
of the Russian Federation established before the date of  the Russian Federation's  WTO accession 
must not exceed 25%.  
4.178.   The main domestic airlines in the Russia n Federation  are Aeroflot  - Russian Airlines, 
Sibir Airlines,  Ural Airlines , Pobeda, Ut Air and Rossiya . Aeroflot Group is Russia 's largest airline 
group and one of the largest in Europe.100 In 2015, the Group accounted for 36.7% of the Russia n 
air-travel market, carrying 39.4 million passengers, of which 26.1 million flew Aeroflot – Russian 
Airlines. PJSC Aeroflot is the Group 's parent company. The Aeroflot Group services over 
319 regular destinations in 54 countries, with Aeroflot – Russian Airlines operating 133 regular 
routes across 52 countries. Aeroflot is a member of the SkyTeam Alliance.101 The 
Russian  Federation owns a majority (51.17%) stake in PJSC Ae roflot (through the Federal Agency 
for State Property Management). Of the remainder, around 41% is free -float owned by 
institutional and retail investors.  
4.4  Tourism  
4.179.   Under the GATS, the Russia n Federation  undertook commitments in a number of tourism 
and trave l sectors  (i.e. hotels and restaurants, including catering  (CPC 641, CPC 642, CPC 643) ). 
Mode 3 commitments on hotels and restaurants are subject to requirements of incorporation in the 
Russian Federation and authorization from local authorities taking int o account city -development 
planning and programmes of social and economic development in their jurisdiction.  
4.180.   The Russian Federation's  relevant GATS commitments on tour operators include tour 
operators and tour agencies services (CPC 7471), and tourist gui de services (CPC 7472). Mode 3 is 
subject to requirements concerning incorporation in the Russian Federation  and that the foreign 
investor be a commercial incorporated organi zation with a minimum of 5 years' experience of 
supplying tour operator services i n the country of origin. Suppliers of out -bound and in -bound 
tourism operator services can have a maximum total foreign participation in charter capital (voting 
shares) of 49%. These limitations are set to expire 7 years from the date of the Russian 
Federa tion's accession to the WTO  (i.e. by August 2017) .  
                                                
98 The Seaport Administration also provides services for seaport users. The founder and the property 
owner of the Administration is the Russian Federation. The a dministration founders ' functions and authorities 
are carried ou t by the Federal Agency of Sea and River Transport.  
99 Russian Aviation online information. Viewed at: http://www.ruaviation.com/dir/info/6/?h  
[29 April 2016].  
100 Aeroflot online information. Viewed at:  http://ir.aeroflot.com/business -overview/o -kompanii/ . 
101 Aeroflot Group includes Aeroflot – Russian Airlines, Rossiya, Aurora, and Pobeda. According to the 
company, this multi -brand strat egy means the Group can expand its presence in all key market segments on 
both domestic and international routes. Aeroflot Group aims to sustain and grow its position as a leading global 
airline.  The Group's fleet is among the youngest of competing airline s; Aeroflot planes' average age is 
4.4 years, and Aeroflot Group's planes average 6.4 years. As of the end of 2015 , the Group's fleet comprised 
262 planes, 170 of which are operated by Aeroflot – Russian Airlines.  WT/TPR/S/345 • Russian Federation  
 
- 157 - 
 
  4.181.   At the end of 2015,  there were 152 hotels under international management in the Russian 
Federation with a total room stock of 34,466 keys operations .102 More than half of the existing 
room supply was in Mos cow and St. Petersburg (54%), followed by Sochi (12%), the Moscow 
Region (6%), Ekaterinburg (3%) and other locations. Current plans suggest tha t by 2020 the 
number of foreign -invested hotels will increase by 118 new properties (23,450 rooms), amounting 
to 270 hotels (57,916 rooms) located in 54 towns and cities. It is expected that foreign hotel 
operators will expand due to a number of events, including the FIFA World Cup (to be held in 
Russia in 11 cities and towns), increasing th e stock of foreign -investe d hotels by 61 new properties 
(12,977 rooms).  
4.182.   Rostourism is the government entity responsible for regulation of tourism and tourism 
operators in the Russia n Federation . On 30 December  2015, Rostou rism revoked the licenses of 
19 tour operators associated w ith Turkish companies or individuals. The measure, which came into 
force on 1 January 2016 , affected major travel companies. Among the restrictions is a ban on 
charter flights to Turkey. On 30 December 2015 , the Russia n Federation  banned Turkish -controlled  
companies involved in tourism or in the construction industry from doing business in the 
country.103  
                                                
102 Ernst & Young online information. Viewed  at: http://www.ey.com/RU/en/Industries/Real -Estate/ey -
international -hotels -in-russia -2016 [29 April 2016].  
103 Moscow Time Online News (2016).  WT/TPR/S/345 • Russian Federation  
 
- 158 - 
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by product group, 2012 -15 
 2012  2013  2014  2015  
Total (US$ million)  524,766  527,266  497,834  343,908  
 (% of total)   
Total primary products  80.4 80.0 79.8 75.6 
 Agriculture  4.9 4.9 5.6 6.8 
 Food 3.2 3.0 3.8 4.7 
   0412 - Other wheat (including spelt) and meslin, unmilled  0.9 0.7 1.1 1.1 
   0342 - Fish, frozen (excluding fillets and minced fish)  0.4 0.4 0.4 0.5 
 Agricultural raw material  1.8 1.8 1.8 2.2 
   2482 - Wood of coniferous, sawn of a thickness >6 mm  0.6 0.7 0.7 0.8 
 Mining  75.4 75.1 74.1 68.7 
 Ores and other minerals  1.3 1.2 1.3 1.3 
 Non-ferrous metals  3.8 3.4 3.3 4.6 
   6841 - Aluminium and aluminium alloys, unwrought  1.2 1.2 1.1 1.8 
   6821 - Copper anodes; alloys; unwrought  0.4 0.3 0.4 0.9 
   6831 - Nicke l and nickel alloys, unwrought  0.7 0.7 0.8 0.7 
 Fuels 70.3 70.6 69.5 62.8 
   3330 - Petroleum oils and oils obtained from bituminous minerals, crude  34.5 32.9 30.9 26.0 
   334 - Petroleum oils and oils obtained from bituminous minerals (other than 
crude ) 19.7 20.8 23.3 19.6 
   3432 - Natural gas, in the gaseous state  11.9 12.8 11.1 12.2 
   3212 - Other coal  2.2 2.0 2.1 2.4 
   3431 - Natural gas, liquefied  0.9 1.0 1.1 1.3 
Manufactures  16.2 16.4 17.2 20.4 
 Iron and steel  4.4 4.0 4.2 4.4 
   6726 - Semi-finished iron/steel products <0.25% carbon  1.2 1.0 1.1 1.1 
 Chemicals  4.7 4.5 4.7 5.8 
   5629 - Fertilizers, n.e.s.  0.8 0.7 0.6 0.9 
   5623 - Mineral or chemical fertilizers, potassic  0.7 0.4 0.5 0.9 
   5621 - Mineral or chemical fertilizers, nitroge nous 0.7 0.6 0.7 0.8 
   5226 - Other inorganic bases and metal oxides, hydroxides and peroxides  0.3 0.4 0.4 0.5 
 Other semi -manufactures  2.6 2.8 3.0 3.5 
   6672 - Diamonds (excl. industrial, sorted) not mounted/set  0.9 0.9 1.0 1.1 
 Machinery and transp ort equipment  3.5 4.1 4.0 5.4 
 Power generating machines  0.7 0.9 0.8 1.2 
   7144 - Reaction engines  0.2 0.3 0.3 0.5 
 Other non -electrical machinery  0.6 0.7 0.6 0.8 
  Agricultural machinery and tractors  0.0 0.1 0.0 0.1 
 Office machines & telecommunicat ion equipment  0.4 0.5 0.8 0.9 
 Other electrical machines  0.5 0.5 0.5 0.6 
 Automotive products  0.6 0.7 0.7 0.8 
 Other transport equipment  0.7 0.8 0.6 1.1 
   7924 - Aeroplanes, etc. (excl. helicopters), >15,000 kg unladen  0.1 0.2 0.2 0.5 
 Textiles  0.1 0.1 0.1 0.1 
 Clothing  0.0 0.1 0.1 0.1 
 Other consumer goods  0.8 1.0 1.1 1.1 
Other  3.5 3.6 3.0 4.0 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/345 • Russian Federation  
 
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  Table A1. 2 Merchandise exports by destination, 2012 -15  
 2012  2013  2014  2015  
Total (US$ million)  524,766  527,266  497,834  343,908  
 (% of total)  
Americas  3.9 3.8 3.3 4.0 
 United States  2.5 2.1 1.9 2.4 
 Other America  1.4 1.6 1.4 1.6 
Europe  52.4 50.7 49.3 44.5 
 EU-28 46.9 45.8 45.2 39.9 
   Netherlands  14.5 13.1 13.4 11.7 
   Italy 5.3 5.5 5.8 4.7 
   Germany  4.6 4.4 5.0 4.6 
   Poland  3.8 3.7 3.2 2.8 
   Latvia  1.6 1.9 2.5 1.9 
   Finland  2.0 2.3 2.1 1.9 
   Belgium  1.3 1.5 1.9 1.8 
   United Kingdom  2.4 2.3 1.5 1.3 
   France  1.4 1.1 1.0 0.9 
   Spain  1.1 1.1 0.9 0.8 
   Slovak Rep ublic 1.0 1.0 0.9 0.8 
 EFTA 2.2 1.8 0.9 1.0 
 Other Europe  3.3 3.1 3.2 3.6 
   Turkey  3.1 2.9 3.0 3.4 
Commonwealth of Independent States (CIS)  11.7 11.6 10.5 11.1 
   Belarus  4.1 3.2 3.3 3.6 
   Kazakhstan  2.8 3.3 2.8 3.0 
   Ukraine  2.8 2.9 2.3 2.1 
Africa 1.8 1.4 1.7 2.1 
   Egypt  0.6 0.5 0.8 0.9 
Middle East  1.5 1.5 1.7 1.9 
Asia 16.9 18.3 20.0 20.9 
 China  6.8 6.8 7.5 8.2 
 Japan  3.0 3.7 4.0 4.2 
 Other Asia  7.1 7.8 8.5 8.5 
   Korea, Republic of  2.6 2.8 3.6 3.8 
   India 1.4 1.3 0.9 1.3 
   Chinese T aipei 0.6 0.8 0.8 0.8 
Other  11.9 12.8 13.5 15.4 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/345 • Russian Federation  
 
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  Table A1. 3 Merchandise imports by product group, 2012 -15  
 2012  2013  2014  2015  
Total (US$ million)  316,193  314,945  286,649  182,782  
 (% of total)   
Total primary products  16.8 17.4 18.1 19.2 
 Agriculture  13.3 14.2 14.4 15.1 
 Food 12.3 13.3 13.5 13.9 
   0112 - Meat of bovine animals, frozen  0.8 0.8 0.8 0.6 
 Agricultural raw material  0.9 0.9 0.9 1.2 
 Mining  3.5 3.2 3.7 4.1 
 Ores a nd other minerals  1.6 1.5 1.6 1.9 
   2852 - Alumina (aluminium oxide), other than artificial corundum  0.5 0.4 0.5 0.8 
 Non-ferrous metals  0.6 0.6 0.7 0.6 
 Fuels 1.3 1.2 1.4 1.6 
Manufactures  82.7 82.0 81.6 80.2 
 Iron and steel  2.8 2.7 2.6 2.3 
 Chemica ls 12.1 12.8 13.0 15.0 
   5429 - Medicaments, n.e.s.  2.6 2.8 2.7 2.8 
   5416 - Glycosides; glands, etc. and extracts; antisera/vaccines, etc.  0.7 0.7 0.7 0.8 
 Other semi -manufactures  8.1 8.1 8.0 7.9 
 Machinery and transport equipment  46.6 44.9 44.3 41.8 
 Power generating machines  1.7 2.1 2.0 2.0 
   7165 - Generating sets  0.7 1.0 0.9 0.8 
 Other non -electrical machinery  13.4 13.4 13.3 13.2 
   7284 - Machinery and appliances for particular industries, n.e.s.  0.9 1.1 1.1 1.2 
   7418 - Other machinery, plant and similar laboratory equipment  0.5 0.5 0.7 0.8 
  Agricultural machinery and tractors  0.9 0.8 0.8 0.7 
 Office machines & telecommunication equipment  7.6 7.1 8.0 9.2 
   7643 - Transmission apparatus for radio -telephony, radio -telegraphy,  
 radio-broadcasting or television  1.3 1.5 1.7 1.8 
   7649 - Parts and accessories for apparatus of division 76  1.1 1.0 1.0 0.9 
   7522 - Data processing machines, with at least processing, imput and 
 output units  1.3 1.0 1.0 0.9 
   7599 - Parts and accessories with the machines of subgroups 751.1,  751.2, 
751.9 and group 752  0.1 0.1 0.3 0.8 
   7641 - Electrical apparatus for line telephony or line telegraphy  0.3 0.3 0.5 0.7 
 Other electrical machines  5.8 5.1 5.0 4.7 
 Automotive products  14.6 13.4 11.6 8.9 
   7812 - Motor vehicles for the transport of persons, n.e.s.  6.3 5.3 4.5 3.5 
   7843 - Other parts and accessories of the motor vehicles of groups 722, 
 781, 782 and 783  3.4 3.6 3.4 2.9 
   7132 - Internal combustion piston engines for propelling vehicles of  
      division 78, group 722 and headings 744.14, 744.15 and 891.11  1.0 1.1 1.0 0.7 
 Other transport equipment  3.5 3.9 4.5 3.8 
   7924 - Aeroplanes, etc. (excl. helicopters), >15,000 kg unladen  1.0 1.3 2.4 1.6 
   7932 - Ships, boats and other vessel s 0.3 0.6 0.5 0.9 
 Textiles  1.5 1.4 1.4 1.5 
 Clothing  2.9 2.9 3.0 3.1 
 Other consumer goods  8.8 9.3 9.3 8.7 
   8514 - Other footwear with uppers of leather or composition leather  0.7 0.7 0.6 0.6 
   8722 - Instruments and appliances used in medical, su rgical or 
 veterinary sciences  0.6 0.5 0.6 0.6 
Other  0.5 0.6 0.3 0.6 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/345 • Russian Federation  
 
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  Table A1. 4 Merchandise imports by origin, 2012 -15  
(US$ million and %)  
 2012  2013  2014  2015  
Total (US$ million ) 316,193  314,945  286,649  182,782  
 (% of total)   
Americas  8.6 9.2 10.5 11.0 
 United States  4.9 5.3 6.5 6.3 
 Other America  3.7 3.9 4.0 4.7 
   Brazil  1.1 1.1 1.4 1.6 
Europe  46.1 46.9 45.7 42.5 
 EU-28 42.0 42.6 41.2 35.8 
   Germany  12.1 12.0 11.5 10.4 
   Italy 4.2 4.6 4.4 4.3 
   France  4.4 4.1 3.7 3.0 
   Poland  2.4 2.6 2.5 2.1 
   United Kingdom  2.6 2.6 2.7 2.0 
   Netherlands  1.9 1.9 1.8 1.6 
   Spain  1.6 1.6 1.5 1.5 
   Czech Republic  1.7 1.7 1.7 1.5 
   Finland  1.6 1.7 1.6 1.3 
   Belgium  1.4 1.3 1.2 1.0 
 EFTA 1.6 1.6 1.6 1.5 
   Switzerland  1.0 1.0 1.1 1.1 
 Other Europe  2.6 2.8 2.9 5.3 
   Turkey  2.2 2.3 2.3 2.2 
Commonwealth of Independent States (CIS)  13.8 12.3 11.4 11.1 
   Belarus  4.1 4.4 4.3 4.4 
   Ukraine  5.7 5.0 3.7 3.1 
   Kazakhst an 3.0 1.8 2.5 2.3 
Africa  0.8 0.9 1.0 1.3 
Middle East  0.7 0.9 0.7 0.8 
Asia 29.8 29.7 30.3 32.6 
 China  16.4 16.9 17.7 19.3 
 Japan  5.0 4.3 3.8 3.7 
 Other Asia  8.5 8.6 8.8 9.6 
   Korea, Republic of  3.5 3.3 3.1 2.5 
   India 1.0 1.0 1.1 1.2 
   Vietnam  0.7 0.8 0.8 1.1 
Other  0.1 0.1 0.3 0.7 
Source:  UNSD Comtrade database, SITC Rev.3.  
  
  WT/TPR/S/345 • Russian Federation  
 
- 166 - Table A1. 5 Services trade by sector, 2012 -15  
(US$ million)  
 Exports  Imports  Net exports  
2012  2013  2014  2015  % 
share 
in 
2015  2012  2013  2014  2015  % 
share 
in 
2015  2012  2013  2014  2015  
Services  62,340  70,123  65,744  51,791  100.0  108,927  128,382  121,022  88,402  100.0  -46,587  -58,259  -55,278  -36,611  
 Goods -related services  3,948  4,126  3,207  2,620  5.1 1,739  2,049  1,845  1,493  1.7 2,209  2,078  1,363  1,127 
  Transport  19,161  20,747  20,542  16,828  32.5 16,443  17,505  15,420  11,662  13.2 2,718  3,242  5,122  5,166  
  Passenger services  7,117  8,210  7,692  4,822  9.3 5,298  6,051  4,955  3,484  3.9 1,818  2,160  2,738  1,338  
  Freight services  6,545  6,503  6,477  5,633  10.9 8,188  8,271  7,097  5,364  6.1 -1,643  -1,768  -621 269 
  Other transport services  5,499  6,033  6,373  6,373  12.3 2,957  3,183  3,368  2,814  3.2 2,543  2,850  3,005  3,559  
   Sea transport  3,912  4,181  4,580  4,803  9.3 4,031  4,106  3,890  3,183  3.6 -119 75 691 1,619  
   Air transport  10,317  11,534  10,980  7,905  15.3 10,148  11,025  9,761  6,980  7.9 169 508 1,219  926 
   Other transport  4,788  4,849  4,723  3,900  7.5 2,244  2,345  1,741  1,478  1.7 2,544  2,504  2,982  2,422  
    Space  16 17 19 9 0.0 54 77 0 19 0.0 -38 -60 19 -10 
    Rail  2,138  2,101  1,590  1,167  2.3 1,186  1,279  895 706 0.8 952 822 695 461 
    Road  630 701 1,090  949 1.8 833 784 615 546 0.6 -203 -83 476 403 
    Pipeline  1,867  1,846  1,846  1,611  3.1 37 37 43 37 0.0 1,831  1,809  1,804  1,574  
    Other  136 184 177 164 0.3 134 168 189 170 0.2 2 16 -12 -7 
   Postal and courier services  144 183 258 220 0.4 20 28 28 21 0.0 124 155 230 199 
Travel  10,759  11,988  11,759  8,465  16.3 42,798  53,453  50,428  34,934  39.5 -32,039  -41,464  -38,669  -26,469  
Construction  4,729  5,906  4,730  3,664  7.1 7,594  9,362  7,520  4,831  5.5 -2,866  -3,456  -2,790  -1,167  
Insurance and pension 
services  430 522 396 552 1.1 1,333  1,393  1,658  1,244  1.4 -904 -871 -1,262  -692 
Financial services  1,317  1,702  1,597  1,207  2.3 2,775  3,391  2,400  1,998  2.3 -1,457 -1,689  -803 -791 
Charges for the use of 
intellectual property  664 738 666 726 1.4 7,629  8,371  8,021  5,634  6.4 -6,965  -7,633  -7,356  -4,908  
Telecommunications, 
computer and information 
services  3,494  4,163  4,504  3,971  7.7 5,169  6,080  6,854  5,520  6.2 -1,675 -1,917  -2,351  -1,549  
Other business services  16,408  18,449  16,736  12,610  24.3 20,120  22,876  23,152  18,459  20.9 -3,712  -4,428  -6,417  -5,849  
Research and 
development services  399 383 454 320 0.6 169 181 159 160 0.2 230 203 295 159 
Professional and  
mana gement 
consulting services  6,923  8,189  7,476  5,388  10.4 5,624  6,478  5,874  4,923  5.6 1,299  1,711  1,601  465 
Technical, trade -
related, and other 
business services  9,087  9,876  8,806  6,903  13.3 14,328  16,218  17,118  13,376  15.1 -5,241  -6,342  -8,312  -6,473  
Personal, cultural, and  
recreational services  556 770 681 341 0.7 1,117  1,264  1,611  1,092  1.2 -562 -493 -930 -751 
Government goods and 
services, not included 
elsewhere  875 1,012  927 807 1.6 2,210  2,640  2,113  1,534  1.7 -1,335  -1,628  -1,187  -727 
Source:  WTO Se cretariat, based on data from the Central Bank of the Russian Federation. Viewed at: http://www.cbr.ru/Eng/statistics/?PrtId=svs  (data accessed in 
June 2016).  
 WT/TPR/S/345 • Russian Federation  
 
- 167 - 
 
  Table A1. 6 Services exports by destination, 2012 -15 
  2012  2013  2014  2015  2012  2013  2014  2015  
  (US$ million)  (% of total)  
World  62,340  70,123  65,744  51,791  100.0  100.0  100.0  100.0  
EU-28 23,879  27,950  27,208  19,635  38.3 39.9 41.4 37.9 
  of which:            
   United Kingdom  5,387  4,874  4,544  3,158  8.6 7.0 6.9 6.1 
   Germany  3,854  4,543  4,172  2,699  6.2 6.5 6.3 5.2 
   Cyprus  3,002  3,303  2,961  2,372  4.8 4.7 4.5 4.6 
   France  1,144  1,178  1,533  1,598  1.8 1.7 2.3 3.1 
   Netherlands  1,512  1,837  1,695  1,404 2.4 2.6 2.6 2.7 
   Ireland  555 1,543  1,849  1,225  0.9 2.2 2.8 2.4 
CIS 10,053  10,718  10,107  8,407  16.1 15.3 15.4 16.2 
  of which:            
   Kazakhstan  1,949  2,223  2,066  2,521  3.1 3.2 3.1 4.9 
   Ukraine  2,375  2,392  2,513  1,872  3.8 3.4 3.8 3.6 
   Belarus  849 1,473  1,490  1,228  1.4 2.1 2.3 2.4 
   Uzbekistan  1,262  1,311  1,042  588 2.0 1.9 1.6 1.1 
   Tajikistan  631 601 586 377 1.0 0.9 0.9 0.7 
   Kyrgyz Republic  341 343 341 348 0.5 0.5 0.5 0.7 
Switzerland  4,461  4,711  3,443  3,054  7.2 6.7 5.2 5.9 
United States  4,111  4,275  3,678  2,775  6.6 6.1 5.6 5.4 
Turkey  2,312  3,773  2,961  2,343  3.7 5.4 4.5 4.5 
China  1,530  1,617  1,498  1,545  2.5 2.3 2.3 3.0 
India 866 932 644 742 1.4 1.3 1.0 1.4 
British Virgin Islands  1,040  1,264  1,177  667 1.7 1.8 1.8 1.3 
United Ara b Emirates  563 676 625 655 0.9 1.0 1.0 1.3 
Hong Kong, China  240 334 434 536 0.4 0.5 0.7 1.0 
Other  13,286  13,873  13,970  11,431  21.3 19.8 21.2 22.1 
Source:  WTO Secretariat, based on data from the Central Bank of the Russian Federation. Viewed at: 
http://www.cbr.ru/Eng/statistics/?PrtId=svs  (data accessed in June 2016).  WT/TPR/S/345 • Russian Federation  
 
- 168 - 
 
  Table A1. 7 Services imports by origin, 2012 -15  
  2012  2013  2014  2015  2012  2013  2014  2015  
  (US$ million)  (% of total)  
              
World  108,926  128,382  121,022  88,402  100.0  100.0  100.0  100.0  
EU-28 47,040  56,831  56,223  40,797  43.2 44.3 46.5 46.1 
 of which:              
  Germany  7,147  8,053  7,523  5,573  6.6 6.3 6.2 6.3 
  United Kingdom  6,025  6,810 6,250  5,106  5.5 5.3 5.2 5.8 
  Cyprus  4,853  5,263  5,698  4,408  4.5 4.1 4.7 5.0 
  France  2,671  3,851  4,754  4,039  2.5 3.0 3.9 4.6 
  Ireland  2,849  3,471  3,274  2,876  2.6 2.7 2.7 3.3 
  Netherlands  3,328  3,630  3,476  2,456  3.1 2.8 2.9 2.8 
  Finland  3,636  4,334  4,025  2,399  3.3 3.4 3.3 2.7 
Turkey  7,931  11,671  9,721  6,642  7.3 9.1 8.0 7.5 
CIS 10,423  10,878  8,057  5,776  9.6 8.5 6.7 6.5 
 of which:              
  Belarus  1,693  2,059  2,224  1,702  1.6 1.6 1.8 1.9 
  Ukraine  4,343  4,486  1,930  964 4.0 3.5 1.6 1.1 
United States  6,132  6,637  6,608  4,921  5.6 5.2 5.5 5.6 
Egypt  2,738  2,575  3,596  3,206  2.5 2.0 3.0 3.6 
Switzerland  3,053  3,607  3,202  2,636  2.8 2.8 2.6 3.0 
China  2,149  2,053  2,054  1,763  2.0 1.6 1.7 2.0 
Thailand  2,259  2,952  2,516  1,251  2.1 2.3 2.1 1.4 
United Arab Emirates  1,791  2,203  1,644  1,113  1.6 1.7 1.4 1.3 
Panama  1,191  1,611  1,497  1,059  1.1 1.3 1.2 1.2 
Israel  941 1,166  1,226  1,022  0.9 0.9 1.0 1.2 
Other  23,277  26,197  24,679  18,217  21.4 20.4 20.4 20.6 
Source:  WTO Secretariat, based on data from the Ce ntral Bank of the Russian Federation. Viewed at: 
http://www.cbr.ru/Eng/statistics/?PrtId=svs  (data accessed in June 2016).  WT/TPR/S/345 • Russian Federation  
 
- 169 - 
 
  Table A3. 1 Supplies subject to 10% VAT,  2016  
 Description  
1. Foodstuffs:  
 livestock and poultry;  
 meat and meat products, except certain gourmet products;  
 milk and dairy products (including dairy ice cream);  
 eggs and egg products;  
 vegetable oil;  
 margarine; special -purpose fats (including cooking , confectionery, bakery fat, and dairy fat and 
cocoa butter substitutes);  
 sugar, including raw sugar;  
 salt; 
 grain, feed mix, grain waste;  
 oilseeds and products thereof;  
 bread and bakery products;  
 cereals;  
 flour;  
 pasta;  
 live fish, except certain valuable sp ecies;  
 seafood and fish products, except certain gourmet types;  
 baby and diabetic foodstuffs;  
 vegetables (including potatoes)  
2. Children's goods:  
 knitwear articles for newborn babies and children of nursery, pre -school, junior and senior school 
age group s; 
 garments, except articles made of natural leather and fur (unless made of sheep or rabbit skin) for 
newborn babies and children of nursery, pre -school, junior and senior school age groups;  
 footwear, except sports footwear;  
 children's beds and mattresses ; 
 prams;  
 school exercise books;  
 toys; 
 plasticine;  
 pencil cases;  
 counting sticks;  
 school abacuses;  
 school diaries;  
 drawing books;  
 sketchbooks;  
 folders for exercise books;  
 covers for textbooks, diaries, exercise books;  
 cards containing figures and letters;  
 diapers  
3. Periodical printed publications, except periodical printed publications of an advertising or erotic nature  
4. Books related to education, science and culture, except books of an advertising or erotic nature  
5. Medicines, including pharmaceutic al substances, medicinal products intended for clinical trials of drugs 
and medicines prepared by pharmacy organizations  
6. Medical devices, unless VAT -exempt  
7. Breeding eggs and breeding cattle (pigs, sheep, goats, horses), including the semen and embr yos thereof  
Source:  Government Resolutions No. 41 (23  January 2003), No. 688 (15  September 2004), and No. 908 
(31 December 2004).  WT/TPR/S/345 • Russian Federation  
 
- 170 - 
 
  Table A3. 2 Supplies subject to 0% VAT, 2016   
 Description  
1.  Goods declared for export or und er the free zone regime  
2. International transportation services, including those related to pipeline transport of hydrocarbons and 
electricity transmission  
3. Precious metals supplied by: taxpayers engaged in their extraction from scrap and waste, the S tate Precious 
Metals and Precious Stones Fund of the Russian Federation, the Precious Metals and Precious Stones Funds of 
subjects of the Russian Federation, the Central Bank of the Russian Federation, and banks  
4. Fuel and lubricants necessary for the no rmal operation of aircraft and maritime vessels  
5 Goods (works and services) for use by diplomatic missions and international organizations operating on the 
territory of the Russian Federation  
6. Goods (works, services, and property rights) obtained by f oreign partners of the International Olympic 
Committee in preparation of the 2014 Sochi Winter Olympics and Paralympics and of the Federation 
Internationale de Football Association (FIFA) in preparation of the 2018 World Cup tournament in the Russian 
Feder ation 
Source:  Article 164 of the Tax Code of the Russian Federation.  WT/TPR/S/345 • Russian Federation  
 
- 171 - 
 
  Table A3. 3 Supplies exempt from VAT, 2016  
 Description  
1.  Essential and vital medical equipment  
2.  Prosthetic and orthopaedic items, raw materials and articl es for their manufacture and semi -finished 
products for such items  
3.  Equipment (including motor vehicles) and materials used exclusively for disability prevention or the 
rehabilitation of disabled persons  
4.  Spectacles (except sunglasses), lenses and specta cle frames (except sunglasses frames)  
5.  Materials for manufacturing immuno -biological medicines for the diagnosis, prevention and (or) 
treatment of infectious diseases (according to the list approved by the Government of the Russian 
Federation )  
6.  Unregist ered medicines intended for medical care for health of individual patients, and hematopoietic 
stem cell and bone marrow for unrelated transplantation  
7.  Foodstuffs directly produced by and sold in canteens of educational and pre -school establishments, and 
medical organizations; and foodstuffs produced by public catering organizations and sold directly to such 
canteens or establishments  
8.  Postage stamps (except collectable stamps), stamped postcards and envelopes, and lottery tickets for 
authorized lotteries  
9.  Coins made of precious metals (except collectable coins) constituting the currency of the Russian 
Federation or of foreign states  
10.  Goods placed under the customs regime of duty -free shops  
11.  Goods (works, services), except excisable goods and excisable minerals, sold (performed, rendered) as 
part of the granting of free aid (assistance) to the Russian Federation under the Federal Law "On Free 
Aid (Assistance) to the Russian Federation and the Introduction of Amendments and Addenda to Certain 
Legislative Acts of the Russian Federation on Taxes and on Provision of Preferential Payment Terms in 
Respect of Payments to State Non -Budgetary Funds in Connection with Free Aid (Assistance) to the 
Russian Federation"  
12.  Cultural property acquired by state or municipa l institutions, cultural valuable objects received as a gift 
of state and municipal cultural institutions , state and municipal archives and cultural valuable objects 
received as a gift of institutions in accordance with the legislation of the Russian Federation on valuable 
objects of cultural a nd national heritage of the peoples of the Russian Federation  
13.  The sale of entrance tickets and subscriptions for theatrical, spectator, cultural and entertainment 
events, amusements in zoos and culture and relaxation parks, and excursion tickets and pass es, the 
form of which has been approved in the established procedure as blank forms for which strict records 
are kept  
14.  The sale of programmes at performances and concerts, catalogues and booklets  
15.  The sale (transfer for personal need) of religious articl es and religious literature (in accordance with 
the list approved by the Government of the Russian Federation as advised by religious organizations 
(associations), produced and sold by religious organizations (associations), organizations owned by 
religiou s organizations (associations), and companies whose charter (reserve) capital consists entirely of 
contributions from religious organizations (associations), as part of religious activities, except excisable 
goods and minerals, and the organization and hol ding by such organizations of religious rites, 
ceremonies, prayer meetings or other cult activities  
16.  All kinds of publications received by state and municipal libraries and museums of international book 
exchange, as well as works of cinematography, import ed by specialized state organizations under 
international non -profit exchanges  
17.  The sale (including the transfer, performance, rendering for personal needs) of goods (except excisable 
goods, minerals and mineral deposits, and other goods under the list to  be approved by the Government 
of the Russian Federation as advised by Russian public organizations of disabled persons), works, or 
services (except brokers' and other intermediary services) produced and sold:  
- by public organizations of disabled persons (including those created as unions of public 
organizations of disabled persons), in which disabled persons and their lawful representatives 
constitute no less than 80% of the membership;  
- organizations whose charter capital consists entirely of contributi ons by the aforementioned public 
organizations of disabled persons, if the number of disabled persons on the payroll constitutes no 
less than 50%, and their share in the salary fund no less than 25%;  
- institutions (whose property belongs exclusively to th e aforementioned public organizations of 
disabled persons) created for educational, cultural, therapeutic, physical exercise and sport, 
scientific, informational and other social purposes, and to render legal and other assistance to 
disabled persons, disab led children and their parents;  
- health treatment workshops in anti -tuberculosis, psychiatric, psycho -neurological institutions, 
public social protection or social rehabilitation establishments  
18.  The sale of articles of folk craft of recognized artistic value (except excisable goods), samples of which 
have been registered in the procedure established by the Government of the Russian Federation  WT/TPR/S/345 • Russian Federation  
 
- 172 - 
 
   Description  
19.  The sale of ore, concentrates and other industrial products containing precious metals, scrap and waste 
from pr ecious metals for the manufacture of precious metals and refining; the sale of precious metals 
and gems by taxpayers (except those described in Article 164.1.6 of the Tax Code) to the State Fund of 
Precious Metals and Gems of the Russian Federation, of gem s as raw materials (except uncut diamonds) 
for treatment to enterprises, regardless of their forms of ownership, for subsequent sale for export; the 
sale of gems as raw materials and cut gems to specialized foreign economic organizations, the State 
Fund of  Precious Metals and Gems, the Central Bank of the Russian Federation and banks; the sale of 
precious metals from the State Fund of Precious Metals and Gems of the Russian Federation to 
specialized foreign economic organizations, the Central Bank of the Ru ssian Federation and banks, and 
of precious metals in ingots by the Central Bank of the Russian Federation and banks, provided that 
such ingots remain in one of the certified vaults (the State Vault of Valuables, the Vault of the Central 
Bank of the Russia n Federation or bank vaults)  
20.  The sale of uncut diamonds to refining enterprises of all forms of ownership  
21.  The internal sale (transfer, performance, and rendering for internal needs) by penitentiary system 
organizations and institutions of goods produce d (works performed, services rendered) by such 
organizations and institutions  
22.  The charitable transfer of goods (performance of works, rendering of services), free of charge under 
the Federal Law "On Charitable Activity and Charity Organizations", except excisable goods  
23.  The sale of entrance tickets, the form of which has been approved as blank forms for which strict 
records are kept, by physical exercise and sport organizations for sport and spectator events held by 
such organizations; the rendering of s ervices for the leasing of sports facilities for holding such events  
24.  The sale of home -grown produce of organizations engaged in producing agricultural products, the share 
of income from the sale of which in the total amount of revenue constitutes no less  than 70%, as in -kind 
compensation, in -kind issuances for remuneration of labour, and for catering for employees engaged in 
the agricultural work  
25.  Goods produced in the economic activity of Russian organizations on land, being the territory of a 
foreign s tate with the right to land use of the Russian Federation on the basis of an international treaty  
26.  Goods, except excisable items, transferred in the framework of international cooperation of the Russian 
Federation in the field of exploration and use of ou ter space, as well as in the framework of agreements 
on spacecraft launch services, as per the list approved by the Government of the Russian Federation  
27.  Ferrous and non -ferrous scrap and waste  (implemented by Law No.  85-FZ of 17  May 2007)  
28.  Technological  equipment (including accessories and spare parts), analogues of which are not produced 
in the Russian Federation, according to the list approved by the Government of the Russian Federation  
29.  Goods intended for official use of foreign diplomatic and simila r representations, and personal use of 
diplomatic and administrative and technical staff of these representations, including the members of 
their families residing with them  
30.  Russian currency and foreign currency banknotes, which are legal tender currenci es (other than for 
collectors), as well as securities – stocks, bonds, certificates, bills  
31.  Deep sea fishing products caught and/or processed by fishing enterprises of the Russian Federation  
32.  Vessels to be registered in the Russian International Ship Reg ister 
33.  Consumables for research, not manufactured in the Russian Federation, according to the list in order to 
be approved by the Government of the Russian Federation  
34.  Aircraft carrier ships and platforms  
35.  The provision of insurance, coinsurance and rei nsurance services for export credits and investments 
against entrepreneurial and/or political risks  
Source:  Articles 149 and 150 of the Tax Code of the Russian Federation.  
 WT/TPR/S/345 • Russian Federation  
 
- 173 - 
 
  Table A3. 4 Russian Federation's applied MFN tariff s ummary, 2016a 
 Number of 
lines  Simple average (%) Tariff range (%) SDa Share of  
duty free lines (%)  Share of non -ad 
valorem  tariffs (%)  2012 applied 
tariff (%)  
Total  11,561  8.3 0 - 319.8  10.3 16.0 14.8 11.0 
HS 01 -24 3,003  14.0 0 - 319.8  17.4 4.2 34.9 17.3 
HS 25 -97 8,558  6.4 0 - 68.2 4.9 20.1 7.7 8.9 
By WTO category  
WTO agricultural products  2,634  14.6 0 - 169.4  17.4 5.5 38.6 17.6 
Animals and products thereof  516 32.7 0 - 113.8  28.4 6.2 68.8 34.9 
Dairy products  164 17.2 5 - 47.9 6.1 0 56.7 22.7 
Fruit, vegetables, and plants  563 8.9 0 - 22.2 3.5 3.2 16.0 12.3 
Coffee, tea, and cocoa and cocoa preparations  74 7.4 0 - 16.5 3.9 12.2 50.0 11.3 
Cereals and preparations  250 10.1 0 - 33.2 3.6 2.0 32.4 13.4 
Oils seeds, fats, oil and their products  200 7.6 0 - 20.4 5.4 15.5 14.0 9.2 
Sugars and confectionary  130 23.4 1.7 - 149 25.2 0 83.1 13.6 
Beverages, spirits and tobacco  424 11.9 0 - 169.4  10.6 6.1 49.3 17.3 
Cotton  6 0 0 0 100 0 0 
Other agricultural products, n.e.s.  307 4.9 0 - 12.5 2.4 5.9 5.2 6.1 
WTO non-agricultural products  8,927  6.5 0 - 319.8  6.0 19.0 7.8 9.1 
Fish and fishery products  520 8.1 0 - 319.8 b 14.5 1.2 6.5 11.9 
Minerals and metals  1,736  7.5 0 - 20 4.6 8.9 0.7 10.0 
Chemicals and photographic supplies  1,354  5.0 0 - 13.7 2.3 9.7 0.6 6.4 
Wood, pulp, paper and furniture  589 9.4 0 - 68.2 5.4 4.2 9.7 14.1 
Textiles  882 8.2 0 - 17.7 3.6 1.1 13.3 11.2 
Clothing  360 8.5 0.5 - 27.3 4.6 0 83.3 15.3 
Leather, rubber, footwear and travel goods  343 6.3 0 - 33.8 4.4 8.5 20.7 10.1 
Non-electric machine ry 1,247  3.0 0 - 16.7 4.3 62.1 0.7 3.5 
Electric machinery  599 4.6 0 - 17 4.7 44.2 1.5 7.8 
Transport equipment  472 8.8 0 - 43.5 7.4 22.0 16.1 10.9 
Non-agricultural products, n.e.s.  750 7.4 0 - 20 5.6 25.6 0.1 10.5 
Petroleum  75 4.5 0 - 5 1.5 9.3 0 4.8 
By ISIC sectorc 
ISIC 1 - Agriculture, hunting and fishing  745 6.2 0 - 33.2 3.8 9.9 7.9 8.5 
ISIC 2 - Mining and quarrying  126 4.3 0 - 15 2.6 18.3 0 4.6 
ISIC 3 - Manufacturing  10,689  8.5 0 - 319.8  10.6 16.3 15.5 11.3 
By stage of processing  
First stage of  processing  1,375  6.1 0 - 33.2 3.6 9.2 7.4 8.2 
Semi-processed products  3,214  6.7 0 - 149.0  5.4 6.1 3.7 8.5 
Fully processed products  6,972  9.5 0 - 319.8  12.5 21.8 21.4 12.7 
a Standard deviation.  
b The highest tariff peak is calculated on a tariff line (H S 1604320090) for which imports in 2015 were 9 tonnes.  The next tariff peak in the same sector is 
70.9% (HS 1604320010).  Both tariff codes belong to HS 160432 (Caviar substitutes).  
Note:  Calculations for averages are based on the national tariff line level  (10-digit), excluding in -quota rates. Tariff schedule is based on HS2012. Ad valorem  
equivalents (AVEs) were estimated based on 2012 import data (for 2012 tariff averages) and 2015 import data (for 2016 tariff averages) at the 10 -digit tariff 
from UN Inte rnational Trade Centre Trade Map. In case of unavailability, the ad valorem part is used for compound and alternate rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities, WTO TAO database and UN International Trade  Centre Trade Map databas e. 
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