INTERNATIONAL COUNCIL FOR COOPERATION AND INVESTMENT

Ne ws 

ICCI - Reference

On February 6, 2008 RSPP held the constituent meeting of its newly established advisory body, International Cooperation and Investment Council, at the President Hotel.

The meeting was attended by the Economic Development and Trade Minister Elvira Nabiullina and First Deputy Foreign Affairs Minister Andrey Denisov, President of the American Chamber of Commerce in Russia Andrew Somers, Chairman of the Association of European Business Executive Board Reiner Hartmann, Managing Partner of Ernst&Young CIS Karl Johansson, and representatives of 50 major foreign companies operating in Russia.

The foundation of the Council was supported by the Deputy Prime Minister S. Naryshkin during the February 5, 2008 RSPP meeting. ‘I strongly support the RSPP initiative to create a new tool … here we can undoubtedly count on RSPP’s experience, knowledge and potential’, the Deputy Prime Minister is quoted as saying. The foundation of the Council was also endorsed by the Russian Federation Presidential Aide Sergey Prikhodko and the Economic Development and Trade Minister Elvira Nabiullina.

The next ICCI meeting will take place on April 25, 2008 and will be addressed by the RSPP Vice-President, Head of the RSPP International Cooperation Committee Viktor Vekselberg, President of the American Chamber of Commerce in Russia Andrew Somers and Managing Partner of Ernst&Young CIS Karl Johansson.

ICCI - Objectives

The main objective of the Council is coordinating the efforts of Russian companies and companies with foreign capital in improving the Russian business climate. Another aim of the Council is to facilitate efforts of Russian companies in their investment and trade activities abroad.

The Council follows the guiding principles of business associations operating in Russia. It will by no means attempt to displace them or prevail over their activities.

ICCI – Areas of activity

• Technical regulation and licensing
• General investment-related issues
• Customs regulation
• Taxation
• Excess regulation of business
• Capital markets
• Russian regional investments

ICCI Members – Spheres of Interest

The Council will allow to consolidate tools of debating key Russian investment climate issues.
Such consolidation might meet the demand of the Russian Government for a single integrated partner to debate key issues of foreign business in Russia.

ICCI – Functions

In order to achieve these objectives the Council shall:

• Originate fresh ideas and proposals for strengthening the existing mechanisms of cooperation between state bodies and the business community in external trade and economic relations;

• Render assistance to the Council Members in launching new business strategies of their trade and economic activities in the Russian Federation, including investments;

• Facilitate paving the way for the growth and diversification of trade and economic activities in the Russian Federation and contribute to a positive investment image of the Russian Federation abroad;

• Participate in the development of regulations in the sphere of external trade and economic relations;

• Originate fresh ideas and proposals for stimulating business initiatives of Russian and foreign companies;

• Provide informational support in the sphere of investments;

• Organize events aimed at improvement of the investment practices and standards on the Russian market;

• Formulate a consolidated viewpoint of the Council Members, ratified by the RSPP governing bodies, and present it in the dialogue with the state authorities and international organizations;

• Expand contacts related to the activities of the Council on the intergovernmental level;

• Arrange cooperation of the Council Members with the RSPP subdivision;

• Provide assistance to the Council Members in establishing and developing economic, investment, scientific and other forms of cooperation with Russian companies and other organizations;

• Sum up the proposals of the Council Members contributing to the position of RSPP on issues of trade, economic and business climate improvement;

• Facilitate the distribution of the information on trade and economic legislation and trade- and investment-related lawmaking in the Russian Federation and the constituent entities of the Russian Federation;

• Prepare Council Members’ business visits to the constituent entities of the Russian Federation and to the RSPP member companies;

• Arrange exhibitions, seminars, conferences and other events initiated by the Council Members.

ICCI-Structure

The Council is governed by the Board, composed of Co-chairmen and Council members.

The Council is chaired by the President of RSPP who is a Board member.

Co-chairpersons of the Council are:
• The President of American Chamber of Commerce in Russia;
• The RSPP Vice-President – Head of the RSPP International Cooperation Committee
• A Representative of European business groups
• A Representative of Asian and Pacific business groups

The FIAC coordinator (“Ernst&Young”) sits on the Board.

The RSPP International Cooperation Department is the executive body of the Council. The Director of the RSPP International Cooperation Department shall be appointed Executive Officer of the Council and a member of the Board.

The FIAC coordinator (the “Ernst&Young” managing partner) shall be appointed Deputy Executive Officer.

The numbers of co-chairmen can be increased.

The Council shall convene at least 3 times per year.

Membership in the council is open to other Russian companies with foreign capital.

Board meetings shall be convened on an as-needed basis by request of any Board member.

The Council Presidium meets as needed at the request of any one of its members.

All the decisions of the Board shall be rendered on the basis of consensus. In case of disagreement, the decision is considered to be taken if 3/4 of the Presidium members vote in its favor.

Current Activities
ICCI held three meetings in 2008, discussing the key problems encountered by foreign companies working in Russia and elaborating the priorities for 2009. Following task forces have begun to operate:
• Migration and labour engagement task force (coordinated by ‘Ernst&Young’)
• Taxation task force (coordinated by ‘PriceWaterhouseCoopers’)
• Customs regulation task force
• Investment strategy and investment climate improvement task force.

Three task force meetings (on migration, tax and customs regulation) took place, with representatives of foreign companies and state officials bringing in expertise to the discussion of legislation development in the aforementioned spheres.

On December 18 ICCI held a discussion on taxation in Russia and problems faced in the sphere by foreign companies. The meeting was addressed by the ICCI Chairman Alexander Shokhin, Co-Chairman Andrew Somers, Deputy Economic Development Minister Stanislav Voskresensky, State Duma Deputy Andrei Makarov, Coordinator of the Foreign Investment Advisory Council Karl Johansson (Managing Partner, Ernst&Young), top-managers of American, European, Japanese and Korean companies working in Russia.

A consolidated position of Russian and foreign business, that will emerge from the analysis and synthesis of ICCI members’ propositions as well as from working consultations, will subsequently be forwarded to the government of the Russian Federation.