Forum Russia 2014 – Investing in the crisis?

The economic climate characterized by EU and US sanctions and Russian countermeasures complicate Russian business for investors at the moment. In spite of the crisis, there is, however, positive news from Russia for foreign investors. The company law reform which came into effect on 1 September ensures more legal certainty and new state subvention programs increase the attractiveness of investment in Russia. The attendance at Forum Russia 2014 of the commercial law firm Noerr discusses this at present in Munich.

“The Russian legislator is – ignoring the politically motivated countermeasures against US and EU sanctions – is obviously endeavouring to improve the legal environment for investment“ said Björn Paulsen, responsible partner of Noerr’s Moscow office and added: “The political leadership is ultimately aware that the Russian economy requires modernisation by western know-how”. But it is difficult for foreign investors to make the right decisions for their Russian involvement in the sanctions environment.

Investors and companies need clear guidance for their Russian business in dealing with the sanctions – the speakers at the event agreed. The speakers included Prof. Dr. Rainer Lindner, Managing Director of the Committee on Eastern European Economic Relations, who, at the event, gave the keynote speech on the political dimension of the Ukraine/Russia crisis and the effects on the German economy, Michael Kraus, board member of FIXIT TM Holding and Prof. Dr. Andrei Egorov (deputy head of the research centre for private law at the President of the Russian Federation). Stefan Weber, Head of the Noerr Moscow Office emphasized in his contribution that only a very small number of foreign companies are so fare affected by the Russian sanctions.

Dr. Mansur Pour Rafsendjani gave the participants of the Forum Russia practical advice. The Co-Head of the Noerr practice group International Trade specified concrete “Dos and Don’ts”. In this connection, the Noerr expert pointed out in particular that internationally active companies with subsidiaries in the USA, must be aware of the US sanctions. Pour Rafsendjani also outlined the possibilities and limits for processing transactions through third states “The line between an admissible legal structure and circumvention of the sanctions penalized by criminal law is, however, very thin” he said.