 RESTRICTED  
  
WT/TPR/S/416  
22 September  2021 
(21-7008) Page: 1/160 
Trade Policy Review Body   
 
  
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
RUSSIAN FEDERATION  
This report, prepared for the second 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 practice s. 
 
Any technical questions arising from this report may be addressed to Ricardo Barba ( tel. 022 739 
5088) , Mombert Hoppe (tel. 022 739 6098) , Takako Ikezuki (tel. 022 739 5534), Mark Koulen 
(tel. 022 739 5224), and R osen Marinov ( tel. 022 739 6391) .  
 
Document WT/TPR/G/ 416 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 in English.  
  WT/TPR/S/416  • Russian Federation  
- 2 - 
CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1  ECONOMIC ENVIRONMENT  ................................ ................................ .........................  13 
1.1  Main Features of the Economy  ................................ ................................ .....................  13 
1.2  Recent Economic Developments  ................................ ................................ ...................  14 
1.2.1   Fiscal policy  ................................ ................................ ................................ ............  16 
1.2.2   Monetary and exchange rate policy  ................................ ................................ ............  17 
1.2.3   Balance of payments  ................................ ................................ ................................  18 
1.3  Trade and Investment Performance  ................................ ................................ ..............  20 
1.3.1   Trade in goods and services  ................................ ................................ ......................  20 
1.3.2   Foreign direct investment  ................................ ................................ .........................  23 
2  TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  27 
2.1  General Framework  ................................ ................................ ................................ .... 27 
2.2  Trade Policy Formulation and Objectives  ................................ ................................ ........  29 
2.3  Trade Agreements and Arrangements  ................................ ................................ ...........  32 
2.3.1   WTO ................................ ................................ ................................ ......................  32 
2.3.2   Regional and preferential agreements  ................................ ................................ ........  33 
2.3.3   Other agreements and arrangements  ................................ ................................ .........  34 
2.4  Investment Regime  ................................ ................................ ................................ .... 34 
2.4.1   Regulatory framework  ................................ ................................ ..............................  36 
2.4.2   International cooperation  ................................ ................................ ..........................  38 
2.5  E-commerce  ................................ ................................ ................................ ..............  38 
3  TRADE POLICIES AND PRACTICES BY MEASURE  ................................ .........................  40 
3.1  Measures Directly Affecting Imports  ................................ ................................ ..............  40 
3.1.1   Customs procedures, valuation, and requirements  ................................ .......................  40 
3.1.2   Rules of origin  ................................ ................................ ................................ .........  42 
3.1.3   Tariffs  ................................ ................................ ................................ ....................  42 
3.1.4   Other charges affecting imports  ................................ ................................ .................  47 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ............................  50 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ................  51 
3.1.7   Other measures affecting imports  ................................ ................................ ..............  53 
3.2  Measures Directly Affecting Exports  ................................ ................................ ..............  55 
3.2.1   Customs procedures and requirements  ................................ ................................ ....... 55 
3.2.2   Export taxes, charges, and levies ................................ ................................ ...............  56 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ .............................  57 
3.2.4   Export finance, insurance, and guarantees  ................................ ................................ .. 58 
3.2.5   Export promotion and marketing assistance  ................................ ................................  61 
3.2.6   Special economic zones and regional schemes  ................................ .............................  62 
3.3  Measures Affecting Production and Trade ................................ ................................ ....... 64 
3.3.1   Incentives  ................................ ................................ ................................ ...............  64 WT/TPR/S/416  • Russian Federation  
- 3 - 
3.3.2   Standards and other technical requirements  ................................ ...............................  66 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .... 68 
3.3.4   Competition policy and price controls  ................................ ................................ .........  69 
3.3.4.1   Current legal framework, recent amendments, and development p rospects  ..................  69 
3.3.4.2   Enforcement of anti -monopoly regulation  ................................ ................................ . 72 
3.3.4.3   International cooperation  ................................ ................................ .......................  74 
3.3.4.4   Price controls  ................................ ................................ ................................ ....... 74 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  75 
3.3.6   Government procurement  ................................ ................................ .........................  77 
3.3.6.1   Overview  ................................ ................................ ................................ .............  77 
3.3.6.2   Legal framework  ................................ ................................ ................................ ... 77 
3.3.6.3   General principles and buy national requirements  ................................ .....................  78 
3.3.6.4  Procurement methods and procedures  ................................ ................................ ..... 80 
3.3.6.5   Control/monitoring/audit of government procurement and bid challenge review 
mechanism  ................................ ................................ ................................ ......................  82 
3.3.6.6   International cooperation  ................................ ................................ .......................  82 
3.3.7   Intellectual property rights  ................................ ................................ ........................  83 
3.3.7.1   COVID -19 pandemic and IP -related measures  ................................ ..........................  83 
3.3.7.2   Overview  ................................ ................................ ................................ .............  84 
3.3.7.3   IP legislation  ................................ ................................ ................................ ........  85 
3.3.7.4   Copyright and related rights  ................................ ................................ ...................  87 
3.3.7.5   Patents  ................................ ................................ ................................ ................  87 
3.3.7.6   Trademarks  ................................ ................................ ................................ ..........  89 
3.3.7.7   Geographical indications  ................................ ................................ ........................  90 
3.3.7.8   IP enforcement  ................................ ................................ ................................ ..... 90 
4  TRADE POLICIES BY SECTOR  ................................ ................................ ......................  93 
4.1  Agriculture, Forestry, and Fisheries  ................................ ................................ ...............  93 
4.1.1   Trade  ................................ ................................ ................................ .....................  94 
4.1.2   Policies  ................................ ................................ ................................ ...................  96 
4.1.2.1   Border policies  ................................ ................................ ................................ ...... 98 
4.1.2.2   Domestic policies  ................................ ................................ ................................ .. 99 
4.1.3   OECD support estimates  ................................ ................................ ..........................  103 
4.1.4   WTO notifications  ................................ ................................ ................................ ... 104 
4.1.5   Forestry ................................ ................................ ................................ .................  105 
4.1.6   Fisheries  ................................ ................................ ................................ ................  109 
4.2  Mining and Energy  ................................ ................................ ................................ ..... 112 
4.2.1   Minerals  ................................ ................................ ................................ ................  112 
4.2.2   Energy  ................................ ................................ ................................ ..................  113 
4.2.2.1   General  ................................ ................................ ................................ ..............  113 
4.2.2.2   Oil................................ ................................ ................................ ......................  114 
4.2.2.3   Gas ................................ ................................ ................................ ....................  116 WT/TPR/S/416  • Russian Federation  
- 4 - 
4.2.2.4   Coal ................................ ................................ ................................ ...................  117 
4.2.2.5   Electricity  ................................ ................................ ................................ ............  118 
4.2.2.6   Institutional framework, regulatory changes, and developments in energy 
strategy and policies  ................................ ................................ ................................ ........  118 
4.2.2.6.1   Institutional framework  ................................ ................................ ......................  118 
4.2.2.6.2   Regulatory changes  ................................ ................................ ...........................  119 
4.2.2.6.2.1   Subsoil Law  ................................ ................................ ................................ ... 119 
4.2.2.6.2.2   Strategic Investment Law  ................................ ................................ ................  120 
4.2.2.6.2.3   Export customs duties and taxation  ................................ ................................ .. 121 
4.2.2.6.2.4   Regulated prices  ................................ ................................ ............................  123 
4.2.2.6.2.5   Import substitution and technological development  ................................ ............  124 
4.2.2.6.2.6   Incentives  ................................ ................................ ................................ ..... 124 
4.2.2.6.3   Energy strategy and policy  ................................ ................................ .................  125 
4.3  Services  ................................ ................................ ................................ ...................  125 
4.3.1   Financial services  ................................ ................................ ................................ .... 125 
4.3.1.1   Overview  ................................ ................................ ................................ ............  125 
4.3.1.2   Banking  ................................ ................................ ................................ ..............  126 
4.3.1.2.1   Stability of the banking sector  ................................ ................................ ............  131 
4.3.1.3   Insurance  ................................ ................................ ................................ ...........  132 
4.3.1.4   Capital markets  ................................ ................................ ................................ ... 135 
4.3.2   Telecommunications and postal services  ................................ ................................ .... 136 
4.3.2.1   Overview  ................................ ................................ ................................ ............  136 
4.3.2.2   Regulatory framework and changes  ................................ ................................ ........  138 
4.3.2.3   Policy developments  ................................ ................................ .............................  139 
4.3.2.4   Developments in 5G  ................................ ................................ .............................  140 
4.3.2.5  Other policy changes affecting telecommunications and postal services  ......................  140 
4.3.3   Transport  ................................ ................................ ................................ ...............  141 
4.3.3.1   Rail transport  ................................ ................................ ................................ ...... 143 
4.3.3.2   Road transport  ................................ ................................ ................................ .... 145 
4.3.3.3   Maritime transport  ................................ ................................ ...............................  146 
4.3.3.4   Air transport  ................................ ................................ ................................ ........  146 
5  APPENDIX TABLES  ................................ ................................ ................................ ... 148  
 
CHARTS  
 
Chart 1.1 GDP by economic activity (at current basic prices), 2016 -20 ................................ .... 13 
Chart 1.2 Product composition of merchandise trade by main HS section/subheading, 2016 
and 2020  ................................ ................................ ................................ .........................  21 
Chart 1.3 Direction of merchandise trade , 2016 and 2020  ................................ ......................  22 
Chart 1.4 Trade in services by sector and partner, 2020  ................................ ........................  23 
Chart 3.1 Frequency distribution of MFN tariff rates, 2016 and 2021  ................................ ....... 44 
Chart 3.2 Distribution of applied MFN and preferential tariffs, 2021  ................................ .........  46 WT/TPR/S/416  • Russian Federation  
- 5 - 
Chart 3.3 Eximbank: export  finance by geographic market and industry, 2020  .........................  60 
Chart 3.4 EXIAR export finance by geographic market and industry, 2020  ...............................  61 
Chart 4.1 Green Box support, 2014 -19 ................................ ................................ ...............  105 
Chart 4.2 Amber Box support, 2014 -19 (including de minimis ) ................................ ..............  105 
Chart 4.3 Fish and fishery trade, 2009 -19 ................................ ................................ ...........  111 
Chart 4.4 Foreign capital participation in Russian banking  system, 2011 -20 ............................  130 
TABLES  
 
Table 1.1 Selected economic indicators, 2016 -20 ................................ ................................ .. 14 
Table 1.2 Balance of payments, 2016 -20 ................................ ................................ .............  19 
Table 1.3 FDI flows by main partners, 2016 -20 ................................ ................................ .... 24 
Table 1.4 FDI inflows by economic activity, 2016 -20 ................................ .............................  25 
Table 3.1 Tax revenue, 2016 -19 ................................ ................................ .........................  43 
Table 3.2 Structure of the MFN tariff, 2016 and 2021  ................................ ............................  43 
Table 3.3 Implementation of final bound tariffs, 2012 -20 ................................ .......................  45 
Table 3.4 Tariff quotas on imports, 2021  ................................ ................................ ..............  45 
Table 3.5 Tariffs under preferential arrangements, 2021  ................................ ........................  46 
Table 3.6 Fees for customs services, 2021  ................................ ................................ ...........  47 
Table 3.7 Excise taxes, 2016 and 2021  ................................ ................................ ................  48 
Table 3.8 Product coverage of Government Resolution No. 778 of 7 August 2014 (as 
amended)  ................................ ................................ ................................ ........................  50 
Table 3.9 Trade remedy proceedings b y DIMD, June 2016 -March 2021  ................................ .... 52 
Table 3.10 Definitive contingency measures, 2016 -2021 ................................ ........................  52 
Table 3.11 Time and cost to export, 2020  ................................ ................................ ............  55 
Table 3.12 Special economic zones: selected incentives, 2021  ................................ ................  62 
Table 3.13 Federal support programmes, 2017 and 2018  ................................ .......................  65 
Table 3.14 Technical regulations, 2016 -21 ................................ ................................ ...........  67 
Table 3.15 Entities accredited in the Russian Federation, March 2021  ................................ ...... 67 
Table 3.16 Competition enforcement, 2016 -20 ................................ ................................ ..... 73 
Table 3.17 Number of natural monopolies included and excluded from the register of natural 
monopoly entities, 2016 -20 ................................ ................................ ................................  75 
Table 3.18 Selected state -owned enterprises, 2020  ................................ ...............................  76 
Table 3.19 Government procurement and its share in GDP, 2016 -19 ................................ ....... 77 
Table 3.20 Main legal framework of the federal and municipal p rocurement system  ..................  78 
Table 3.21 Share of procurement methods, 2016 -19 ................................ .............................  81 
Table 3.22 Number of complaints, 2016 -20 ................................ ................................ ..........  82 
Table 3.23 Summary of amendments to IP legislation, 2015 -20 ................................ ..............  86 
Table 3.24 Participation in WIPO -administered international ag reements, 2015 -20 ....................  87 
Table 3.25 Patent applications, 2016 -20 ................................ ................................ ..............  88 
Table 3.26 Patent grants, 2016 -20 ................................ ................................ ......................  88 
Table 3.27 Trademark applications, 2016 -20 ................................ ................................ ........  89 WT/TPR/S/416  • Russian Federation  
- 6 - 
Table 3.28 Appellations of origin applications and grants, 2016 -20 ................................ ..........  90 
Table 3.29 IP -related cases (criminal, administrativ e, and civil), 2016 -20 ................................  91 
Table 4.1 Production of selected agricultural products, 2015 -20 ................................ ..............  94 
Table 4.2 Exports of selected agricultural products, 2014 -20 ................................ ..................  94 
Table 4.3 Imports of selected agricultural products, 2014 -20 ................................ ..................  95 
Table 4.4 State Programme for the Development of Agriculture, 2nd phase, 2018 -25 ................  100 
Table 4.5 Total PSE and single commodity transfer values for selected commodities,  
2015-20 ................................ ................................ ................................ .........................  103 
Table 4.6 Wood production, 2016 -20 ................................ ................................ ..................  106 
Table 4.7 Trade in selected wood products, 2016 -20 ................................ ............................  106 
Table 4.8 Fish landings in the Russian  Federation, 2014 -19 ................................ ...................  109 
Table 4.9 Crude oil:  production and exports, 2013 -20 ................................ ..........................  115 
Table 4.10 Natural gas production and exports, 2013 -20 ................................ ......................  116 
Table 4.11 Banking sector, 2016 -20 ................................ ................................ ...................  127 
Table 4.12 Cross -country comparison of banking -related indicators  ................................ ........  128 
Table 4.13 Credit to private sector, by economic activity, 2016 -20 (in %)  ...............................  129 
Table 4.14 Pricing d ata for mobile telephony, 2020  ................................ ..............................  136 
Table 4.15 Pricing data for fixed broadband, 2020  ................................ ................................  137 
Table 4.16 Telecommunications indicators, 2016 -20 ................................ .............................  137 
Table 4.17 Number of telecommunications licences, 2015 -20 ................................ ................  138 
Table 4.18 Freight and passenger transport volumes, by type of transport, 2017 -20 ................  142 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS section and major chapter subheading, 2016 -20 ...........  148 
Table A1.2 Merch andise exports by destination, 2016 -20 ................................ ......................  149 
Table A1.3 Merchandise imports by HS section and major chapter subheadings, 2016 -20 .........  150 
Table A1.4 Merchandise imports by origin, 2016 -20 ................................ .............................  151 
Table A1.5 Trade in services by sector, 2016 -20 ................................ ................................ .. 152 
 
 
Table A2.1 Notifications by the Russian  Federation, June 2016 -August 2021  ...........................  154 
 
 
Table A3.1 Summary analysis of MFN tariff, 2021  ................................ ................................  156 
Table A3.2 Supplies subject to 10% VAT, 2021  ................................ ................................ .... 157 
Table A3.3 Supplies subject to 0% VAT, 2021  ................................ ................................ ...... 158 
Table A3. 4 Supplies exempt from VAT, 2021  ................................ ................................ ....... 159 
 WT/TPR/S/416  • Russian Federation  
- 7 - 
SUMMARY  
1. Real GDP growth in the Russian Federation averaged 1.7% in 2016 -19, compared with 4.8% 
in 2003 -12. Prudent management resulted in macroeconomic stability, as evidenced by the existence 
of a fiscal surplus during most of the review period, a low inflation r ate, and ample international 
reserves. The Russian Federation managed to mitigate the impact of declining and volatile oil prices 
and other external developments, notably through the floating exchange rate regime, and a new 
fiscal rule. At the same time, t he consistent decline in the rate of potential economic growth since 
the financial crisis has drawn attention to certain structural issues with respect to productivity and 
economic diversification, as discussed in a recent World Bank study. New national de velopment 
objectives and related national projects were adopted in 2018 (revised in 2020), which aim to 
improve the Russian Federation's long term economic growth and development performance. It has 
been observed that participation in global value chains c an contribute to the achievement of these 
new development goals because of its positive effect on productivity growth, quality of jobs, and 
poverty reduction.  
2. In 2020, the economy contracted by 3%, due in large extent to the impact of the COVID -19 
pandemi c and the related disruption of the global oil markets, which has resulted in a substantial 
increase in unemployment. Macroeconomic stabilization policies and accumulated buffers have 
enabled the Russian Federation to manage the impact of these adverse sho cks. For 2021, the IMF 
expects GDP growth of 3.8%. The Bank of Russia paused its accommodative policy actions in mid -
2020, keeping the key policy rate at a record low of 4.25% and maintaining short term interest rates 
close to the key rate. Since March 202 1, the Bank of Russia has increased the key rate several times 
in response to intensifying inflationary pressures.  
3. The current account surplus, as a percentage of GDP, reached 7.0% in 2018 but weakened 
thereafter, mainly due to lower energy -export receipt s, financial market volatility, and increased 
geopolitical risks. In 2020, a sharp drop in imports, particularly of services, limited the decline of 
the current account surplus, estimated at 2.4% of GDP.  
4. Mineral fuels represented nearly half of total merc handise exports in 2020, followed by 
manufacturing exports. Merchandise exports also remain geographically concentrated, albeit 
decreasingly. The EU -27 was the largest destination for merchandise exports in 2020, followed by 
Asia. Merchandise exports fell dramatically from 2019 to 2020. Merchandise imports are dominated 
by machinery, chemicals, and transport equipment. Asia was the largest source of merchandise 
imports in 2020, followed by the EU -27. Merchandise imports also declined from 2019 to 2020. The 
trade deficit in services declined during the review period, largely due to the COVID -19 pandemic. 
The main categories of services exports are transport services, telecommunications services, and 
professional and management consulting services. Regarding s ervices imports, the largest shares 
are accounted for by transport services, technical, trade -related and other business services, and 
travel. The EU -27 is the largest services trading partner. In line with the strong decline in global FDI 
flows in 2020 du e to the COVID -19 pandemic, FDI inflows plummeted in 2020, driven by the 
manufacturing and service sectors.  
5. Since the entry into force of the Treaty on the Eurasian Economic Union (EAEU Treaty) on 1 
January 2015, trade policy formulation in the Russian Fed eration involves both EAEU and national 
institutions and legislation. Since the last Review, significant legal changes have occurred, including 
in the areas of customs procedures and requirements, export duties and taxes, export support, 
public procurement , foreign investment, competition, protection of intellectual property, mining and 
energy, financial services, and telecommunications services. The review period also witnessed the 
adoption of several new strategies, national projects, and state programmes  in various policy areas. 
The Constitution was amended in 2020.  
6. While the Russian Federation continued to pursue import substitution and localization policies, 
it also emphasized the importance of the promotion and diversification of non -energy exports, 
especially in the new national development objectives announced in 2018. The National Project on 
International Cooperation and Export adopted in 2018 comprises various federal projects on 
Industrial Exports, Exports of the Agro -industrial Complex, and Syste mic Measures for the 
Development of International Cooperation and Exports. In 2020, a target was set to achieve by 2030 
real growth in exports of non -resource -based, non -energy goods by at least 70%.  WT/TPR/S/416  • Russian Federation  
- 8 - 
7. The Russian Federation is a party to the Information Te chnology Agreement and has accepted 
the Agreement on Trade Facilitation. It started negotiations on accession to the Government 
Procurement Agreement in 2016, tabling its initial market access offer in June 2017. The Russian 
Federation accepted the Protoco l amending the TRIPS Agreement in 2017. While the Russian 
Federations' notifications record is generally positive, at least four notifications remained outstanding 
as at end -2020 under, inter alia, the Agreement on Agriculture and the Agreement on Licensin g 
Procedures. Since its accession to the WTO, the Russian Federation has not made any notifications 
under Article XVII:4(a) of GATT 1994 regarding state trading enterprises. The Russian Federation 
has participated in 17 WTO trade disputes: 8 as complainant  and 9 as respondent.  
8. The Russian Federation continues to strongly support the multilateral trading system as 
embodied in the WTO and regards the WTO as critical to ensuring a stable and predictable 
international trading environment. It participates in all  four Joint Statement Initiatives, endorsed the 
Buenos Aires Declaration on Trade and Women's Economic Empowerment, and is one of the 
members of the Informal Working Group on Trade and Gender. The Russian Federation is 
contributing to the discussion around  WTO reform with a focus on improvements of the WTO's 
dispute settlement, negotiating, and monitoring functions. In June 2021, it formulated its priorities 
for the 12th WTO Ministerial Conference in a communication to WTO Members. The Russian 
Federation al so joined several proposals and statements on COVID -19 and world trade.  
9. As an EAEU member State, the Russian Federation is part of a free trade agreement (FTA) 
with the Socialist Republic of Viet Nam (entered into force on 5 October 2016), the Interim 
Agreement leading to the formation of a free trade area between the EAEU and the Islamic Republic 
of Iran (entered into force on 27 October 2019), an FTA with Singapore (signed on 1 October 2019, 
but not yet put into force), and an FTA with Serbia (signed on 2 5 October 2019, but not yet put into 
force). The Russian Federation is also a party to a number of agreements that pre -date the entry 
into force of the EAEU treaty.  
10. Since 2014, the Government has implemented the State Programme for the Economic 
Development  and Innovation Economy, combining activities to improve the business and investment 
environment, increase employment in SMEs, and for self -employed persons, improving labour 
productivity, stimulating technology adoption, and improving the efficiency of pu blic administration. 
The State Programme was adjusted repeatedly over the review period, and it was also 
complemented with other strategies aimed at improving competition in the economy. The Russian 
Federation continued to undertake reforms to improve the business environment. Challenges 
remain, including with respect to regulatory quality, legal independence, and corruption. A 
"regulatory guillotine" mechanism was introduced in 2019 aiming to review and abolish all sectoral 
regulatory acts and replace them  with regulations containing updated requirements and using risk -
based principles.  
11. There have been important changes to the legal framework for domestic and foreign investors 
through amended laws and regulations. The list of strategic sectors in which fore ign investment 
requires prior approval was expanded in 2017, and since 2018 citizens of the Russian Federation 
with multiple citizenships have also been subject to this requirement. In 2017, the Foreign 
Investment Law was amended through the introduction o f a general foreign investment screening 
mechanism. In 2020, screening procedures for acquisitions of voting stakes in strategic enterprises 
by foreign investors were expanded to also include temporary acquisitions. Restrictions on FDI 
remain relatively hi gh overall, according to the OECD's FDI Regulatory Restrictiveness Index, and 
have increased since 2016. In 2020, a new Federal Law to protect and encourage investment was 
approved, introducing Capital Investment Promotion and Protection Agreements.  
12. Key c onditions for the development of electronic commerce, such as (online) consumer 
protection laws, data privacy, and electronic signatures are in place. Turnover in the relatively 
fragmented e -commerce sector increased significantly over the review period.  
13. The principal customs legislation was updated following the EAEU Customs Code's entry into 
force on 1 January 2018. The EAU Customs Code introduced various innovations aimed at 
streamlining customs procedures, including through electronic means, and implem enting key 
provisions of the Agreement on Trade Facilitation. The EAEU Customs Code provides for the pre -
arrival notification of third -country imports, except for those shipped by pipelines and electricity 
transmission lines. It has also upgraded the pre -existing scheme for simplified customs formalities 
into a Union -wide authorized economic operator scheme. Work on the development of a national WT/TPR/S/416  • Russian Federation  
- 9 - 
single -window system is ongoing. Elements of the future single window have been consolidated in a 
Seaport Portal,  which facilitates the supervision of trade flows going through the Russian Federation's 
sea checkpoints. During the review period, the legal framework for customs valuation underwent 
minor amendments upon the entry into force of the EAEU Customs Code, as well as through the 
adoption of several legal instruments by the Collegium of the Eurasian Economic Commission.  
14. The Russian Federation applies the EAEU unified customs tariff, with some exceptions. The 
simple average applied MFN tariff rate declined sligh tly between 2016 and 2021, from 8.3% to 7.9%, 
which is partly explained by the phased implementation of WTO accession commitments. The 
average applied rate is 13.4% on imports of agricultural products and 6.3% on imports of non -
agricultural products. The R ussian Federation has bound its entire tariff at the 10 -digit level. The 
simple average bound tariff rate (8.4%) is about half a percentage higher than the 2021 average 
unified customs tariff rate. Applied tariff rates could potentially exceed the correspo nding WTO 
bindings for a few tariff lines. Four tariff rate quotas exist on imports of certain agricultural products. 
Tariff preferences apply pursuant to the EAEU's Common System of Tariff Preferences, FTAs 
concluded by the EAEU, and certain regional and bilateral trade agreements that predate the entry 
into force of the EAEU Treaty. Excise taxes and VAT are applied to imports from third countries as 
well as to intra -EAEU trade. During 2016 -21, most excise tax rates were revised upwards, and the 
standard V AT rate was raised from 18% to 20% as from January 2019. As from 2017, foreign 
suppliers of services over the Internet must charge the applicable VAT and remit it to the Federal 
Tax Service.  
15. Some amendments were made to the coverage of import prohibitions  applied to certain 
agricultural products from several trading partners, introduced in 2014 and 2015 on national security 
grounds. In March 2021, there were 21 definitive anti -dumping measures in force, approximately 
half of which concerned products of the  steel industry. A "track and trace" system for the marking 
of certain goods with (machine -readable) means of identification came into force in 2019. The 
Russian Federation continued to pursue import substitution through various instruments, particularly 
the regulation of public procurement, and adopted measures to encourage companies to locate 
production in the Russian Federation.  
16. Export duties were removed on products covered by 235 tariff lines and reduced on various 
other products. In 2021, export duti es were increased on sunflower seeds, soyabeans and ferrous 
and major base metals. For part of 2020, temporary export quotas on certain grains were in place, 
before being replaced by export tariff rate quotas with a view to stabilizing their prices in the 
domestic market in late 2020. Tariffs were adjusted in 2021. Export prohibitions were applied at the 
EAEU level in March 2020 (eliminated in October 2020) with respect to a range of medical products, 
devices and personal protective equipment. An export pro hibition on certain agricultural products 
was introduced in April 2020 and removed in July 2020.  
17. A new system of financial and non -financial export support was created in 2018 pursuant to 
the national project International Co -operation and Export. There was a substantial increase in the 
value of financial support for exports, which is provided princip ally in the form of export credit, 
guarantee and insurance facilities and involves as the main institutions the Russian Export Center, 
the Export and Import Bank, and the Export Insurance Agency of Russia. In addition to tax and non -
tax incentives provided  through Special Economic Zones and regional schemes, incentives are 
granted by federal and sub -federal authorities in certain sectors.  
18. The legal frameworks for the application of technical regulations and standards and sanitary 
and phytosanitary measures  involve a combination of EAEU and national competences. During the 
period June 2016 -June 2021, 15 technical regulations were adopted by the EAEU, while the Russian 
Federation enacted over 7,500 national standards. At end June 2021, in addition to 43 EAEU 
technical regulations, two national technical regulations and 36,839 national standards were in force 
in the Russian Federation. Steps were taken during the review period at the EAEU level to implement 
agreements concluded in 2014 for the gradual establish ment of a unified market for medicines and 
medical devices. As at March 2021, common EAEU phytosanitary controls on imports from third 
countries applied to 128 product groups, and common veterinary and sanitary -epidemiological 
controls on imports from thir d countries applied to 110 and 19 product groups, respectively. Between 
June 2016 and March 2021, the Russian Federation submitted 41 regular notifications to the WTO 
Committee on Technical Barriers to Trade, and 39 regular and 49 emergency notifications t o the 
WTO Committee on Sanitary and Phytosanitary measures. During the same period, it was asked to WT/TPR/S/416  • Russian Federation  
- 10 - 
respond to nine specific trade concerns related to technical regulations, and six specific trade 
concerns related sanitary and phytosanitary measures.  
19. In 2017, a National Plan on the Development of Competition Policy in the Russian Federation 
for the Years 2018 -20 was adopted. It aims to: (i) increase consumer satisfaction by expanding the 
supply of goods, works and services, improving their quality and redu cing their prices; (ii) increase 
economic efficiency and competitiveness of economic entities, including by ensuring equal access to 
goods and services of natural monopolies and public services necessary for business activities; and 
(iii) ensure stable gro wth and development of a multisectoral economy. The Plan lists specific 
industries in which competition should be promoted. The Law on the Protection of Competition was 
amended many times. Among the amendments made was a prohibition on creating and operati ng 
unitary entities in competitive markets and the introduction of a mechanism to encourage companies 
to implement special anti -trust compliance measures. Discussions are underway on a possible new 
package of competition law reforms to address recent devel opments in the digital economy and data 
circulation.  
20. The IMF reported in 2018 that the size of the Russian State was relatively large and that this 
had a significant impact on competition and economic efficiency. State -owned enterprises exist in 
the form of unitary enterprises, joint stock companies and state corporations. There was a 
substantial decline during the review period in the number of unitary enterprises and in the number 
of joint stock companies in which the State holds more than 30% of the sha res.  
21. Public procurement is subject to regulation under three distinct laws, based on the type of 
procuring entity: (i) procurement by federal and municipal governments; (ii) procurement by certain 
other types of legal entities namely state -owned enterpris es, regulated entities, monopoly entities 
and utility companies; and (iii) procurement by military entities. While the basic legal framework 
remained the same, numerous amendments were made to these three laws. Procurement by federal 
and municipal authorit ies must be conducted according to certain basic principles, including 
openness, transparency, competition, professionalism of the procuring entities, facilitation of 
innovation, and uniformity of the procurement system. The law requires that preferences b e given 
to certain types of suppliers, including small businesses. It allows the Government to adopt legal 
acts imposing restrictions on the purchase of foreign goods, works and services under certain 
conditions. These restrictions might include the requir ement to procure a minimum mandatory share 
of Russian goods, including goods delivered during the provision of works and services. Several 
implementing rules were adopted during the review period that set out the details for the application 
of these restri ctions. In the case of procurement by state -owned enterprises, regulated entities, 
monopoly entities and utility companies, the Government has the right to establish preferences, 
including through the procurement of a minimum share of goods, works, and ser vices provided by 
Russian suppliers. In 2016, a decree was adopted that provides for a 15% price preference to be 
applied by these entities for goods, works, and services of Russian Federation origin.  
22. During the review period amendments were made to legis lation on copyright and related 
rights, industrial designs, geographical indications, electronic means, and patents. In the context of 
the COVID -19 pandemic, the Government took several measures to improve transparency regarding 
COVID -19 related intellectu al property and to facilitate IP acquisition procedures, a compulsory 
license was granted for remdesivir, and the Duma adopted a bill that expands the grounds for 
granting compulsory licenses. The Strategy for Scientific and Technological Development, adop ted 
in 2016, identifies challenges and policy objectives in the area of scientific and technological 
development, and sets out implementation mechanisms. Among the seven priority areas recognized 
by the Strategy are digital production technologies and envi ronment -friendly and resource saving 
energy. Currently, the key document defining IP policy is the Intellectual Property Roadmap under 
the Government Business Environment Transformation initiative. In March 2019, the Government 
adopted the State Programme for the Scientific and Technological Development of the Russian 
Federation 2019 -2030.  
23. The value of agricultural production increased significantly over the review period. In volume 
terms, the increase was less significant. The Russian Federation remains a net importer of 
agricultural goods, but agricultural exports increased substantially in recent years. As a share of 
total exports, agricultural exports increased from 4.7% in 2019 to 7.4% in 2020. Imports of 
agricultural goods also increased but less than exports. In 2020, as a response to the COVID -19 
pandemic, temporary export quotas were introduced on wheat, meslin, barley, rye and maize. The 
Government replaced them in late 2020 with a temporary export tariff rate quota on certain grains, WT/TPR/S/416  • Russian Federation  
- 11 - 
which was adju sted several times in the course of 2021 to stabilize domestic prices. Export duties 
were also increased on sunflower seeds and soyabeans. In accordance with its WTO accession 
commitments, the Russian Federation eliminated the tariff quotas on fresh, chill ed and frozen pork 
and pork trimming and replaced them with an ad valorem duty of 25%.  
24. Support to agriculture is provided primarily through the State Programme for the Development 
of Agriculture, originally adopted in 2012, and revised in 2019 to include a second phase (2018 -25). 
This second phase aims to ensure food security, increase domestic production as well as exports, 
and increase the investment in physical assets in the sector. A first sub -programme provided for by 
this second phase aims to support  agro-industrial sectors directly whereas a second -sub-programme 
aims to address, inter alia, the operational environment in the agro -industrial sectors, land 
reclamation, and digital agriculture. A separate State Programme on Integrated Development of 
Rural Territories was established in 2020. Additional strategies and the Food Security Doctrine, 
updated in 2020, provide further direction for the implementation of overall policy. Since 2017, the 
Russian Federation has provided two types of domestic transpo rt subsidies to various agricultural 
products.  
25. While the Russian Federation remains a major producer of wood and wood products, the value 
generated from forestry and logging is lower than its potential. The production and exports of wood 
increased during t he review period, while imports increased only slightly. In 2018, the Government 
adopted a Strategy for the Development of the Forest Complex of the Russian Federation until 2030, 
which was revised in 2021, and reflects four of the national development obj ectives. It aims to 
improve production and exports of a broad range of forestry products in the context of a sustainable 
management of forests and socio -economic development. Support to the forestry sector continues 
to be provided through a mix of general support to improving the management of forest resources, 
direct support to industry, and trade measures such as export and import duties. There are two 
export tariff rate quotas in place for coniferous wood in the rough.  
26. The Russian Federation is one of t he world's major fish producers, but the shares of the 
fisheries sector in GDP and total employment are relatively low. During the review period, the catch 
of fish and crustaceans increased overall, especially in the Pacific Ocean. Since 2014, the Russian 
Federation has been a net fish exporter. Rules limiting the operation of foreign -owned firms in the 
fisheries sector were made somewhat more restrictive through an amendment of the definition of 
foreign ownership. The overall framework for government actio n in the fisheries sector is defined by 
the Strategy for the Development of Agriculture and Fisheries through 2030 and the Strategy for 
the Development of the Fisheries Industry until 2030. Overall, tariff barriers in the fisheries sector 
are relatively hi gh.  
27. The Russian Federation is the world's third -largest crude oil producer and exporter. It is the 
world's second -largest natural gas producer, and the largest natural gas exporter. It has been 
observed that the Russian Federation remains structurally hig hly dependent on hydrocarbons, given 
that oil and gas dominate the Russian Federation's exports of goods and account for a substantial 
share of the Government's budget revenue. The Russian Federation's economy is also highly energy 
intensive. Key prioritie s of the Russian Federation are to continue to diversify the economy away 
from its abundant gas and oil resources and to reduce the economy's energy intensity. Production 
of crude oil reached a record high in 2019 before declining in 2020 because of the fa ll in global 
demand due to the COVID -19 pandemic and production cuts agreed by the OPEC+ countries. Exports 
of crude oil increased significantly in volume terms from 2015 to 2019 and in value terms from 2015 
to 2018 and declined from 2019 to 2020. With res pect to natural gas, there was also a substantial 
increase in production from 2015 to 2019, followed by a decline in 2020. A significant recent 
development is the expansion of production of liquefied natural gas. Gas exports rose sharply 
between 2015 and 2 019 and, in the case of natural gas, declined in 2020. For both oil and gas, the 
relative importance of Asia as a destination of the Russian Federation's exports is increasing.  
28. There were several important changes during the review period to the legal fra mework 
governing the oil and gas sector and more generally the mining sector. Amendments were made to 
the licensing provisions of the Subsoil Law, including introduction of special provisions on the 
allocation of subsoil plots containing hard -to-recover ma terials. The conditions under which foreign 
investors can operate in the mining sector were changed through various amendments to the 
Strategic Investment Law and the Law on Foreign Investment. In 2019, the Government began to 
implement a reduction in phas es of export duties on oil, gas condensate and petroleum products 
until their elimination in 2024. This was the second phase of the "tax manoeuvre" that had been WT/TPR/S/416  • Russian Federation  
- 12 - 
initiated in 2015. The reduction of export duties was accompanied by an equivalent increase in  the 
Mineral Resources Extractions Tax. A tax on the additional income from the extraction of 
hydrocarbons was also introduced. The Government adopted a new Energy Security Doctrine in 2019 
and, in 2020, an Energy Strategy of the Russian Federation for the  Period up to 2035.  
29. Banking dominates the financial sector in the Russian Federation. Concentration in the banking 
sector remains high, as does the role of state -owned banks. The banking sector remains financially 
sound overall. The Bank of Russia increas ed regulatory supervision and the number of banking 
institutions declined significantly. It also introduced proportionate regulation of banks and 
microfinance institutions, and it introduced regulatory measures to improve resilience to liquidity 
shocks (es pecially among systemically important banks) and to influence risk taking by commercial 
banks in retail lending. The Bank of Russia also continued to support the development of national 
payment systems. As the use of technology in financial services is hig h, access to financial services 
remained strong during the pandemic. The level of competition in the banking sector remains limited. 
It has been reported that restrictions on trade in commercial banking services increased between 
2016 and 2020.  
30. The number  of insurance companies fell, and concentration increased. While the Government 
eliminated certain ownership -related restrictions for insurance companies with majority foreign 
ownership, restrictions to trade in insurance services are reported to have incr eased between 2016 
and 2020. To strengthen the solvency of insurance companies, which remains above regulatory 
margins, the Bank or Russia increased minimum capital requirements, to be phased in until 2023, 
and established new approaches to determine finan cial stability and solvency of insurers. Across 
financial services, the authorities increased disclosure requirements and other regulations aimed at 
increasing transparency and protecting consumers. In 2016, the Bank of Russia established a 
National Reinsu rance Company with which insurers have to insure part of their ceded obligations.   
31. The telecommunications market is competitive and characterized by high rates of mobile 
penetration, relatively low market concentration, and affordable prices for standardi zed mobile and 
data baskets. There are four mobile network operators and more than 20 mobile virtual network 
operators. Number portability has been available to customers wanting to change their mobile 
operator since December 2013, and requirements for off ering access to (and interconnection with) 
telecommunications infrastructure on a contractual basis apply to all infrastructure owners, with 
major suppliers of public telecommunications services being required to grant non -discriminatory 
access. Following regulatory changes, national roaming charges (within -network roaming charges 
for subscribers travelling within the Russian Federation) were eliminated from 1 June 2019. In 2015, 
general rules requiring personal data collected on Russian citizens to be stor ed in the Russian 
Federation came into force, and since 2016, communications service providers and internet -based 
data distributors are required to store information regarding message transmission of users.  
32. Transport services contribute an important share  of the Russian Federation's total services 
exports. In 2019, the Federal Service for Supervision of Transport carried out a set of activities to 
transition to a risk -based model of supervisory activities. The Transport Strategy 2030, adopted in 
2008 and r evised in 2018, is the main policy document for the transport sector. Among its most 
important goals are the creation of a competitive transport and logistics services market and 
improved integration of the Russian Federation into the global transport syst em. Transport plays an 
important role in the import substitution policy.  
 WT/TPR/S/416  • Russian Federation  
- 13 - 
1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Russian  Federation is one of the world's biggest producers of oil , gas, and electricity, and 
one of the most energy -intensive economies. Considering the contribution of the oil and gas sector 
to GDP, employment, exports, and federal budget revenue, the  Russian Federation has been 
characterized as "structurally highly dependent on hydrocarbons".1 Key priorities of the 
Russian  Federation are to continue to diversify the economy away from its abundant gas and oil 
resources and to reduce the economy's energy intensity (Section  4.2.2). 
1.2.  As shown in Chart 1.1, the services sector continues to be the main contributor to GDP, with 
an estimated 61.1% share during the period 2016 -20 (62.5% in 2015), followed by manufacturing 
with 14.0% (13.8% in 2015)2; mining an d quarrying with 11.3% (9.8% in 2015); construction with 
5.8% (6.3% in 2015); and agriculture and related activities with 4.0% (4.3% in 2015).  
Chart 1.1 GDP by economic activity (at current basic prices), 2016 -20 
 
Note:  Simple average during the period 2016 -20. 
Source:  Federal State Statistic Service, National Accounts.  Viewed at: 
https://eng.rosstat.gov.ru/folder/13913 . 
1.3.  Despite a recent decline in the number of state -owned enterprises, the size of the Russian 
State is relatively large, with significant implications for competition and efficiency  (Section  3.3.5).  
1.4.  The Russian  Federa tion continues to face important demographic challenges. In 2020, 
according to preliminary estimates, life expectancy decreased for the first time since 2003, mainly 
due to the COVID -19 pandemic. It is now 71.1 years (compared with 73.3 years in 2019), and  life 
expectancy is expected  to return to the 2019 level by 2024.3 Under the new national development 
plan and objectives, the aim is to increase life expectancy to 80 years  by 2030 (Section 1.2). 
Although there is a National Strategy for Action for Women  2017-22, the Russian  Federation also 
faces gender equality challenges, notably in terms of wages and retirement, according to the 
World  Bank.4 
 
1 Word Bank, Russia Integrates: Deepening the Economy's Integration in the Global Economy , p. 43.  
2 The Russian  Federation is one of the world's largest manufacturers. Its main industries 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 agricultural machinery production.  
3 RBC Group, Life Expectancy in Russia in the Pandemic Decreased by 2 Years , 11 March 2021. Viewed 
at: https://www.rbc.ru/economics/11/03/2021/604a3c099a7947c4afb996b7 . 
4 The Russian  Federation ranks 129th (of 190) in the World Bank's Women, Business and the Law 2021  
report. Viewed at: https://wbl.worldbank.org/en/wbl . 
Agriculture, forestry and 
fishing 4.0%Mining and 
quarrying
11.3%Manufacturing
14.0%Electricity, gas 
and water 3.2%Construction 5.8%Other 0.6%
Wholesale and retail 
trade 13.7%Real estate activities
10.0%Public administration
7.8%
Transportation and 
storage 6.8%
Financial and 
insurance 
activities 4.5%
Professional, 
scientific and 
technical 
activities 4.4%
Human health 
and social work 
activities 3.4%Other services
10.5%Services 
61.1%Chart 1.[RUS] Gross domestic product by economic activity (at basic prices), 2016 -
20
Note:  Simple average during the period 2016 -20.
Source:  Federal State Statistic Service, National Accounts. Viewed at:https://eng.rosstat.gov.ru/folder/13913. WT/TPR/S/416  • Russian Federation  
- 14 - 
1.2  Recent Economic Developments  
1.5.  At the time of its previous Review in 2016, the Russian  Federation was still recov ering from 
both the 2008 -09 global financial crisis and the 2014 oil shock. A strong economic rebound in 
2010-12 was subsequently dampened by conflicts and instability in the region, which led to some 
countries imposing economic restrictions on the Russian  Federation, which took countermeasures. 
The economic uncertainty caused by these developments resulted in strong capital outflows, a sharp 
decline in the value of the ruble, and an increase in inflation. The Government responded with an 
anti-crisis plan a imed at : (i) stabilizing the banking sector ; (ii) introducing a fiscal stimulus ; (iii)  
switching to a floating exchange rate regime ; and (iv) introducing an import substitution 
programme.5 Since then, real GDP growth averaged 1.7% during 2016 -19 (compared with 4.8% in 
2003-12), insufficient to achieve income convergence with advanced economies.  
1.6.  For 2020, the IMF made the estimate that the GDP of the Russian  Federation contracted by 
3.0%6, mainly due to the COVID -19 pandemic and the related disrup tion in global oil markets.7 
However, according to the IMF, the Russian economy has proven more resilient than many other 
emerging economies during the pandemic, partly reflecting a large share of protected public 
employment, the relatively limited COVID -related restrictions that excluded much of the industrial 
sector, and the coordinated fiscal, monetary, and macro -prudential response to the crisis.  
1.7.  In 2020, the Russian  Federation had a nominal GDP of USD  1,479 billion (USD  1,281  billion in 
2016), with a GDP per capita of USD  10,135 (USD  8,818  in 2016) (Table 1.1). I n purchasing  power 
parity (PPP) terms, GDP was calculated at USD  4,133 billion in 2020 (USD  3,539 billion in 2016), 
while GDP per capita was estimated at USD  28,220 (USD  24,128 in 2016).8 According to the World 
Bank, the Russian  Federation is the world's sixth -largest economy in PPP terms.9 
Table 1.1 Selected economic indicators, 2016 -20 
  2016  2017  2018  2019  2020a 
GDP at current prices (RUB billion)  85,616.1  91,843.2  103,861.7  109,241.5  106,967.5  
GDP at current prices (USD billion)  1,281.0  1,575.4  1,650.5  1,690.6  1,479.0  
Population (million)  145.3  145.5  145.7  145.9  145.9  
GDP per capita USD  8,818  10,825  11,326  11,589  10,135  
Unemployment rate (%)  5.5 5.2 4.8 4.6 5.8 
Inflation (CPI % change, period average)  7.1 3.7 2.9 4.5 3.4 
National accounts      
  
Real GDP (% change)  0.2 1.8 2.8 2.0 -3.0 
Final consumption expenditure of:  -1.5 3.4 3.5 2.9 -5.2 
Households  -2.6 3.7 4.3 3.2 -8.6 
General government  1.4 2.5 1.3 2.4 4.0 
Non-profit institutions serving 
households  1.0 0.5 -1.7 -0.2 2.5 
Gross capital formation  -0.6 6.4 -1.6 3.3 -2.0 
Gross fixed capital formation  1.3 4.7 0.6 1.5 -4.3 
Exports  3.2 5.0 5.6 0.7 -4.3 
Imports  -3.7 17.3 2.7 3.4 -12.0 
Public finance (% of GDP)      
  
Total revenues  32.9 33.8 35.9 36.2 35.7 
Oil and gas revenues  5.7 6.5 8.7 11.3 4.9 
Non-oil and gas revenues  27.3 27.3 27.3 28.9 30.6 
Total expenditure  36.6 35.3 33.0 34.2 39.7 
Deficit ( -) / Surplus (+)  -3.7 -1.5 2.9 1.9 -4.6 
Non-oil and gas deficit  -9.3 -8.0 -5.8 -5.3 -8.9 
 
5 WTO document WT/TPR/S/345/Rev.1, 6 December 2016.  
6 IMF (2021), World Economic Outlook: Managing Divergent Recoveries , April.  
7 Oil prices collapsed to as low as USD  20 per  barrel in March -April 2020, rebounding to USD  50-USD 55 
in January 2021. Oil production fell by 18% in May 2020, bringing it to levels last seen in 2004, as the 
Russian  Federation and Organization of the Petroleum Exporting Countries (OPEC) members agreed  on cuts to 
stabilize oil markets. IMF (2021), Russian  Federation: Staff Report for the 2020 Article  IV Consultation , IMF 
Country Report No.  21/36, pp. 36 -38. 
8 Federal State Statistic Service. Viewed at: https://eng.rosstat.gov.ru/folder/11335 . 
9 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
p. 9. WT/TPR/S/416  • Russian Federation  
- 15 - 
  2016  2017  2018  2019  2020a 
General government debt  14.8 14.3 13.6 13.8 21.0 
Money and credit (% change)      
  
Base money  3.8 8.6 8.0 5.8 25.9 
Ruble broad money  9.2 10.5 11.0 9.7 13.5 
Credit to the economy  -0.5 8.2 11.5 8.6 13.1 
External sector      
  
Current account (% of GDP)  1.9 2.0 7.0 3.9 2.4 
Trade in goods and services (% of GDP)  46.7 46.8 51.6 49.3 46.3 
Terms of trade (% of change)  11.3 23.4 15.3 -1.9 -18.1 
RUB/USD (period average)  66.8 58.3 62.9 64.6 72.3 
RUB/EUR (period average)  74.0 66.0 74.1 72.3 82.8 
Real effective exchange rate (% of 
change: - depreciation)  -0.5 15.9 -7.7 2.5 -7.5 
Gross international reserves (USD  billion)  377.7  432.7  468.5  554.4  595.8  
In months of imports (of goods and 
services)  17.0 15.9 16.4 18.8 23.5 
Total external debt (USD billion)  511.8  518.4  455.1  491.3  467.4  
% of GDP  39.9 32.9 27.6 29.1 31.6 
Urals crude oil spot price (USD per barrel)  41.7 53.1 69.7 63.9 41.4 
Oil extraction (million tonnes)  547.8  546.5  555.5  561.0  513.1  
a Preliminary data.  
Source:  Bank of Russia, Statistics . Viewed at: https://www.cbr.ru/eng/statistics/ ; Federal State Statistics 
Office. Viewed at: https://eng.rosstat.gov.ru/folder/11335 ; Ministry of Finance, Statistic s. Viewed 
at: https://minfin.gov.ru/en/statistics/ ; IMF. Viewed at: https://www.imf.org/en/data ; IMF Country 
Report No.  21/36, February 2021; IMF (2021), World  Economic Outlook: Managing Divergent 
Recoveries , April; and information provided by the authorities.  
1.8.  The economic contraction in 2020 wiped out employment gains made over the last decade, 
while regional inequality fell, as the crisis had a disproportionat e impact on relatively wealthy regions 
that are more reliant on oil and gas, and where the services sector plays a greater role.10 The 
unemployment rate that had been decreasing in recent years went from 5.5% in 2016 to 5.8% in 
2020, the highest in eight y ears, while the poverty rate went from 13.2% at the end of 2019 to 
12.1% in Q2 2020. The rate of informal employment remains high, at around 20%.11 
1.9.  For 2021, the IMF expects GDP growth of 3.8%.  Underlying this forecast is the assumption that 
COVID -19 vacci nes become widely available during 2021 both in the Russian  Federation and its 
trading partners, allowing for a rebound in domestic demand and exports. The IMF also assumes 
that oil and gas exports will increase.12 
1.10.   Before the COVID -19 pandemic, the Russian  Federation's economic management was praised 
for achieving macroeconomic stability (inflation under control, fiscal budget in surplus, low national 
debt, and ample foreign reserves) but was criticized for the failure to secure higher economic growth.  
Since the global financial crisis, the Russian  Federation's estimated potential GDP growth rate has 
declined consistently, from around 3% to 1.7% in 2010 -17.13  
1.11.   The decline in the Russian  Federation's potential economic growth has raised concerns about 
its medium -term prospects and the risks of stalled convergence in GDP per capita with advanced 
economy levels. As a result, new national goals were announced in 2018 (see below), suggesting 
that the Russian  Federation will strive to further integrate into global production, value, and logistics 
chains. In this regard, special emphasis is put on developing modern technologies and highly skilled 
labour. According to the World Bank, further integration into global value chains (GVCs) would be 
an important step towards achieving these new goals. Indeed, GVC participation, especially in 
manufacturing, magnifies the effects of traditional trade and contributes to increased productivity, 
 
10 IMF Country Report No.  21/36, p. 5.  
11 World Bank (2020), Russia's Economy Loses Momentum Amidst COVID -19 Resurgence; Awaits Relief 
from Vaccine , Russia Economic Report 44.  
12 IMF (2021), World Economic Outlook: Managing Divergent Recoveries , April.  
13 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
p. 9. WT/TPR/S/416  • Russian Federation  
- 16 - 
better jobs, and lower poverty.14 An IMF study of structural is sues facing the Russian  Federation 
regarding productivity and economic diversity discusses the need for certain measures relating to 
the investment climate, transport infrastructure, customs clearance, preferential trade agreements, 
and allocation of resou rces to R&D.15 
1.12.   Presidential Decree No.  204 of 7  May 2018 on National Objectives and Strategic Tasks of the 
Russian  Federation's Development in the Period up to 2024  identifies nine national goals: (i)  ensure 
sustainable natural population growth; (ii)  increase life expectancy to 78 years (to 80 years by 
2030); (iii)  ensure sustainable growth of wages and pensions above inflation; (iv)  halve the number 
of people living in poverty; (v)  improve housing conditions for at least 5 million households annually; 
(vi) increase the share of innovating organizations to 50%; (vii) speed up the digitalization of the 
economy and the social sphere; (viii) become one of the world's five largest economies, with growth 
rates above the global average and inflation of 4%; and (i x) support high -productivity, 
export -oriented businesses in the key sectors of the economy, doubling non -raw-material and 
non-energy exports.16 
1.13.   Thirteen national projects were developed with a view to achieving those nine goals: health 
care, education, dem ography, culture, tourism, road safety, urban development, ecology, science, 
small and medium -sized enterprises (SMEs), digital economy, labour productivity, and international 
cooperation and export. The overall cost of implementing the strategy is estimat ed at RUB  26 trillion, 
i.e. about 4% of 2018 GDP.17 
1.14.   Presidential Decree No. 474 of 21  July 2020 o n the National Development Goals of the 
Russian  Federation in the Period up to 2030  has supplemented Presidential Decree No.  204, 
actualizing the list of natio nal goals, and setting a new deadline for their completion (from 2024 to 
2030). Presidential Decree No.  474 was adopted  in part because of the assessment of the COVID -19 
pandemic's impact on Russian and world economies and recovery forecasts for the global  economy. 
The new list of national goals includes: (i)  maintenance of the population, health, and well -being of 
people; (ii)  opportunities for self -realization and talent development; (iii)  a comfortable and safe 
living environment; (iv)  decent and product ive work and successful entrepreneurship; and (v)  digital 
transformation. The national objectives of Presidential Decree No.  204 were incorporated in 
Presidential Decree No.  474.18 
1.15.   Some specific targets to be achieved by 2030 include: (i)  increasing the nu mber of people 
employed in SMEs and individual entrepreneurs to 25 million; (ii)  attaining 100% waste segregation; 
(iii) achieving a four -fold increase in volume of investment in domestic IT products (compared with 
2019); and (iv)  ensuring investment and e xport growth of non -raw-material and non -energy goods 
(at least 70% compared with 2020).19 
1.2.1   Fiscal policy  
1.16.   In 2015, the fiscal rule introduced in December 2012 to help manage the impact of volatile 
oil resource revenues and limit fiscal sustainability risks was suspended due to the sharp decrease 
in oil prices and some changes in external conditions.20 A new fiscal rule adopted in 2017 provides 
that if oil prices are above a benchmark price of USD  40 (in real 2017 terms), the authorities will 
purchase foreign  exchange equal to the excess fiscal revenue and save that revenue in the National 
Wealth Fund (NWF). Such savings must be held at the Bank of Russia as part of Russian Federation's 
national reserves, at least until the target of NWF assets of 7% liquid as sets has been reached. 
Conversely, the Government can borrow from the NWF if oil prices fall below the benchmark price. 
By weakening the impact of the oil prices on the exchange rate, the fiscal rule supports the non -oil 
 
14 World Bank (2020), Russia's Economy Loses Momentum Amidst COVID -19 Resurgence; Awaits Relief 
from Vaccine , Russia Economic Report 44.  
15 IMF Country Focus, Russia: Five Reforms to Increase Productivity, Diversify Growth , 10 July 2017. 
Viewed at: https://www.imf.org/en/News/Articles/2017/07/05/na070717 -russia -five-reforms -to-increase -
productivity -diversify -growth . 
16 Office of the President. Viewed at: http://kremlin.ru/events/president/news/57425 . 
17 Chatham House, Royal Institute of International Affairs, Russia Economic Policy and the Russian 
Economic Syst em: Stability versus Growth . 
18 Office of the President. Viewed at: http://kremlin.ru/events/president/news/63728 . 
19 Russian Government Decisions, Mikhail Mishustin  Approves Strategy for the Manufacturing Sector , 
9 June 2020. Viewed at: http://government.ru/en/docs/39844/ . 
20 WTO document WT/TPR/S/345/Rev.1, 6 December 2016.  WT/TPR/S/416  • Russian Federation  
- 17 - 
economy and facilitates export dive rsification and thus contributes to the strengthening of the 
economy's competitiveness and the promotion of trade integration.21 In the context of the 2019 -21 
budget, the fiscal rule was relaxed for a limited period to accommodate higher infrastructure 
spending under the 13 national projects unveiled in May 2018. While initially the rule targeted a 
primary deficit of 0% of GDP, as revised it targets a deficit of 0.5% of GDP.22 Another relaxation of 
the fiscal rule took place in 2020 as par t of the Government's COVID -19 response.  
1.17.   The ample fiscal policy space allowed the Russian authorities to mount a sizeable public health 
and countercyclical response to the economic crisis in 2020, which helped limit the economic 
downturn. The fiscal poli cy response was mostly concentrated on expenditure measures (a bout 3.5% 
of GDP), revenue measures (0.4% of GDP), and loans and guarantees (0.6% of GDP). Consequently, 
the general government deficit, as a percentage of GDP, is estimated at 4.6% in 2020, com pared 
with surpluses of 2.9% and 1.9% in 2018 and 2019, respectively  (Table 1.1) .23 Fiscal support in 
2020 was targeted at the health sector, vulnerable households and the unemployed, and the most 
affected sectors (mainly SMEs), and at preventing large -scale layoffs.  Support specific to SMEs 
included wage subsidies, interest rate subsidies, subsidized credits, and forgone revenue 
(e.g. permanent reduction in social security contributions).24 
1.18.   The 2021 -23 budget envisages a significant fiscal consolidation, i n the expectation that 
support programmes will no longer be needed to the same extent as in 2020. However, according 
to the IMF, despite a significant increase in borrowing in 2020, the combination of relatively low 
public debt, modest gross financing need s, and sizeable macro -fiscal buffers (Section 1.2.3), the 
Russian  Federation has some fiscal space to continue supporting firms and households still 
experiencing economic stress while removing programmes that are no longer needed.25 Regional 
transfers are set to drop more than 10% in real terms in 2022, compared to the 2017 -19 
pre-pandemic average.26 
1.19.   The 2021 -23 budget is to eliminate many tax breaks for the oil and gas sector as part of the 
transition from the mineral extraction tax to the profit tax. The Russian  Federation would also benefit 
from further removing inefficient and inequitable tax expenditures in other sectors, while social 
assistance spending could be better targeted to reach the most vulnerable and help reduce poverty 
and inequality.27 
1.2.2   Mone tary and exchange rate policy  
1.20.   In November 2014, the Bank of Russia adopted a de jure  and de facto  free floating exchange 
regime28, and switched from exchange rate targeting to inflation targeting of 4%  letting the ruble  
be determined by supply and demand in the currency market.29 Inflation targeting contributed to 
significant de -dollarization and reduced inflation, as measured by the Consumer Price Index, from 
double -digit levels (10.2% on average during 2003 -12) to 3.4%  in 2020 (Table 1.1).30 
 
21 IMF (2019) , Russian Federation: 2019 Art icle IV Consultation – Press Release Staff Report , IMF 
Country Report No. 19/260, p. 19.  
22 IMF Country Report No. 19/260, pp. 9 -10; and IMF Country Report No. 17/198, pp. 23 -35.  
23 World Bank (2020), Russia's Economy Loses Momentum Amidst COVID -19 Resurgen ce; Awaits Relief 
from Vaccine , Russia Economic Report 44.  
24 IMF Country Report No.  21/36, p. 43.  
25 Government debt is projected to increase to 21% of GDP by end -2020, nearly 7.5% of GDP higher 
than at end -2019. However, this is well below other emerging m arket peers, and gross financing needs remain 
low (projected at some 3% of GDP on average over 2020 -25). IMF Country Report No.  21/36, p. 12.  
26 World Bank (2020), Russia's Economy Loses Momentum Amidst COVID -19 Resurgence; Awaits Relief 
from Vaccine , Russi a Economic Report 44.  
27 IMF Country Report No.  21/36, pp. 12 -13. 
28 Under this arrangement, the exchange rate of the ruble is determined by market forces. The Bank of 
Russia may intervene in the domestic foreign exchange market in the event of threats to fi nancial stability.  
29 The main function of the Bank of Russia , as determined by Article  75 of the Constitution, is to protect 
the ruble and ensure its stability. The sustainability of the ruble is achieved through maintaining price stability, 
which is the primary objective of monetary policy  (Article  3 of Federal Law No.  86-FZ of 10  July 2002 on the 
Central Bank of the Russian  Federation (Bank of Russia)).  The Bank of Russia is accountable to the State 
Duma, which appoints and dismisses the Bank of Russia  Governor (on the proposal of the President of the 
Russian  Federation) and members of the Bank of Russia  Board of  Directors (on the proposal of the Bank of 
Russia  Governor, agreed with the President of the Russian  Federation).  
30 IMF (2021), World Economic Outlook: Managing Divergent Recoveries , April.  WT/TPR/S/416  • Russian Federation  
- 18 - 
1.21.   Inflation had been below the 4% target since mid -2017, except in 2019 when it reached 4.5% 
partly due to an increase in the VAT rate from 18% to 20% ( Section 3.1.4 ). More recently, annual 
inflation rose above the inflation target in conditions of the gradual recovery of demand, ruble 
depreciation, and high food prices. A spike in global risk aversion and falling oil prices prompted a 
real effective exchange rate depre ciation of 7.5% in 2020 (Table 1.1).  
1.22.   Since the middle of 2020, the Bank of Russia  has paused its accommodative policy actions, 
keeping the key policy rate at a record low of 4.25% per year and maintaining  short-term interest 
rates close to the key rate. Ho wever, on 22  March  2021, the Bank of Russia  increased the key rate 
for the first time in two years from 4.25% to 4.5% per annum, and then raised it three times to 
6.5% on 23  July 2021, as inflationary pressures intensified.31 The Bank of Russia  will consid er the 
necessity of further increases in the near future. The Bank of Russia 's latest annual inflation forecast 
for 2021 went up to 5.7% -6.2%, and the Bank expects that annual inflation will edge down to 
4.0% -4.5% in 2022 and remain close to the 4.0% targe t further on.32 For 2021 and 2022, the IMF 
estimates average inflation rates of 4.5% and 3.4%, respectively.33 
1.23.   The Russian  Federation has an exchange system free of restrictions on the making of 
payments and transfers for current international transactions .34 Some of the few remaining 
restrictions on foreign exchange transactions were removed over the reporting period, as foreign 
currency transactions between residents and non -residents no longer require a "transaction 
passport", while information on the un derlying contract has to be collected by banks.35 Some 
requirements for residents to repatriate proceeds of export contracts remain in place, but they are 
being progressively removed, according to the authorities, while proceeds of contracts between 
reside nts and non -residents executed in rubles can be transferred into foreign bank accounts, 
denominated in rubles.36 
1.2.3   Balance of payments  
1.24.   Traditionally, the Russian  Federation has enjoyed surpluses in both its trade and current 
accounts of its balance of paymen ts (Table 1.2), on the back of its significant oil and gas export 
revenues. The current account surplus, as a percentage of GDP, reached 7.0% in 2018 but weakened 
thereafter, mainly due to lower energy -export receipts, financial market volatility, and incr eased 
geopolitical risks. In 2020, a sharp drop in imports, particularly of services due to less outbound 
tourism, limited the drop of the current account, estimated at 2.4% of GDP (Table 1.1).37 According 
to the IMF, the Russian  Federation's external posi tion is broadly in line with fundamentals and 
"desirable policies".38 For 2021, the IMF expects a current account surplus of 3.9% of GDP.39 
1.25.   Macro -fiscal stabilization policies and accumulated buffers are helping the Russian  Federation 
manage the impact of the COVID -19 pandemic. As at end -2020, the Bank of Russia 's international 
reserves stood at a comfortable USD  595.8 billion (23.5 months of imports), while the external debt, 
at 31.6% of GDP in 2020 (Table 1.1), compares favourably to the 60% Emerging Mark ets and 
Developing Economies (EMDE) average. As at end -2020, the Russian  Federation's National Wealth 
Fund reached a robust USD  182.3 billion (12.7% of GDP), while its liquid part reached 8.1% of 
GDP.40 
 
31 Pro-inflationary factors largely pertain to the weakening of the ruble on the back of increased 
volatility in global markets, as well as to higher geopolitical risks, negative oil -price dynamics, and capital 
outflows due to the COVID -19 outbreak. World Bank (2020), Russia's Economy Loses Momentum Amidst 
COVID -19 Resurgence; Awaits Relief from Vaccine , Russia Ec onomic Report 44.  
32 Bank of Russia, "The Bank of Russia Increases the Key Rate by 100 b.p., to 6.50% p.a.", 
23 July 2021.  
33 IMF (2021), World Economic Outlook: Managing Divergent Recoveries , April.  
34 IMF Country Report No.  21/36.  
35 Federal Law No. 265 -FZ of 2 August 2019 on Amendments to the Federal Law on Currency Regulation 
and Currency Control.  
36 CMS, Currency Control . Viewed at: https://cms.law/en/rus/publication/doing -business -in-russia -
2020/currency -control/foreign -currency -transactions . 
37 IMF (2021), World Economic Outlook: Managing Divergent Recoveries , April.  
38 IMF Country Report No.  21/36, p. 7.  
39 IMF (2021), World Economi c Outlook: Managing Divergent Recoveries , April.  
40 World Bank (2020), Russia's Economy Loses Momentum Amidst COVID -19 Resurgence; Awaits Relief 
from Vaccine , Russia Economic Report 44.  WT/TPR/S/416  • Russian Federation  
- 19 - 
Table 1.2 Balance of payments, 2016 -20 
(USD billion)  
  2016  2017  2018  2019  2020  
Current account  24.5 32.2 115.7  65.4 36.1 
Goods and services  66.3 83.2 165.0  129.1  76.7 
Credit  332.4  410.5  508.6  481.6  380.4  
Debit  266.1  327.2  343.6  352.5  303.7  
Goods  90.2 114.6  195.1  165.8  93.7 
Credit  281.7  352.9  443.9  419.7  333.4  
Debit  191.5  238.4  248.9  253.9  239.6  
Services  -24.0 -31.3 -30.1 -36.7 -17.0 
Credit  50.6 57.5 64.6 61.9 47.0 
Debit  74.6 88.9 94.7 98.7 64.1 
Primary income  -35.5 -42.1 -40.4 -53.5 -34.9 
Credit  40.5 46.6 52.9 53.9 44.7 
Debit  76.0 88.6 93.3 107.4  79.6 
Secondary income  -6.3 -9.0 -8.9 -10.2 -5.7 
Credit  8.6 10.6 12.3 14.7 13.4 
Debit  14.9 19.6 21.3 24.8 19.1 
Of which: Workers' remittances  -7.0 -8.3 -8.4 -7.3 -5.6 
Credit  1.2 1.4 1.7 2.2 2.5 
Debit  8.3 9.7 10.1 9.5 8.1 
Capital account  -0.8 -0.2 -1.1 -0.7 -0.5 
Current and capital account balance 
(Net lending (+) / net borrowing ( -)) 23.7 32.0 114.6  64.7 35.6 
Financial account balance (Net lending (+) / 
net borrowing ( -)) 18.3 34.6 116.7  63.5 39.3 
Direct investment  -10.2 8.2 22.6 -10.1 -3.5 
Net acquisition of financial assets  22.3 36.8 31.4 21.9 5.7 
Net incurrence of liabilities  32.5 28.6 8.8 32.0 9.2 
Portfolio investment  -2.4 -8.0 7.6 -12.7 25.3 
Net acquisition of financial assets  0.7 1.3 -1.8 4.8 14.2 
Net incurrence of liabilities  3.0 9.2 -9.4 17.5 -11.1 
Financial derivatives (other than reserves) 
and employee stock options  0.0 0.4 -0.7 2.6 1.9 
Net acquisition of financial assets  -12.8 -13.8 -11.7 -11.3 -25.4 
Net incurrence of liabilities  -12.8 -14.1 -11.0 -13.9 -27.4 
Other investment  22.7 11.4 49.0 17.2 29.4 
Net acquisition of financial assets  -5.4 -9.4 24.2 10.2 18.6 
Net incurrence of liabilities  -28.1 -20.7 -24.9 -6.9 -10.8 
Reserve assets  8.2 22.6 38.2 66.5 -13.8 
Net errors and omissions  -5.4 2.6 2.1 -1.2 3.7 
Source:  Bank of Russia, External Sector Statistics . Viewed at: 
https://www.cbr.ru/eng/statistics/macro_itm/svs/ . 
1.26.   Since 2014, a floating ruble has acted as a shock -absorber for external disruptions. A ccording 
to the IMF, cash breakeven oil prices in the Russian  Federation are around USD  10 per barrel, thanks 
to low operating costs, progressive taxes, and the stabilizing effect of the exchange rate. This 
suggests the oil and gas industry is well placed to weather a protracted period of low oil prices. 
However, keeping oil production at current levels would require significant investment, therefore the 
full-cost breakeven price is closer to USD  30-USD 40 per barrel. A prolonged period of oil prices 
below this level could threaten long -term GDP growth, the current account surplus, and the viability 
of the oil and gas sector.41 
1.27.   In the face of economic restrictions imposed by certain Members since 2014, the 
Russian  Federation has been implementing an import s ubstitution policy to satisfy the demand in its 
local market by securing the competitiveness of Russian goods.42 According to the World Bank, the 
import substitution strategy has shown mixed results in terms of achieving higher domestic 
 
41 IMF Country Report No.  21/36, p. 9.  
42 The Governmental Commission on Import Substitution was established under Government Decree  
No. 758 of 4 August 2015.  WT/TPR/S/416  • Russian Federation  
- 20 - 
production levels a nd decreasing import dependence.43 The economic recovery plan, as announced 
in June 2020, introduced measures supporting production of strategic components aimed at meeting 
demands of the Russian industry sector, which faced temporary gaps in supply chains  during the 
pandemic.44 
1.28.   During the review period, the Russian  Federation also actively pursued export promotion 
policies to encourage diversification. Since 2018, the National Project on International Cooperation 
and Export has been the main tool to promot e exports ( Section 2. 2), as part of the new national 
development goals (Section 1.2). Nonetheless, according to the World Bank, import substitution 
stands in the way of sustainable export diversification as access to imported components is generally 
import ant for exporters and manufacturers.45 According to the authorities, however, import 
substitution does not imply bans on imported components. A forthcoming government strategy for 
socio-economic development is expected to incorporate best policy practices to enhance the global 
competitiveness of Russian goods.  
1.3  Trade and Investment Performance  
1.3.1   Trade in goods and services  
1.29.   The ratio of merchandise trade (exports and imports) to GDP averaged almost 50% during 
the period 2016 -20 (Table 1.1). In 2020, the Russian  Federation ranked 12th among world 
merchandise exporters and 15th among importers (considering EU member States as one and 
excluding intra -EU trade).46 Since March 2020, the Russian  Federation has been facing a sizeable 
negative term of trade shock, absorbed through ruble depreciation and imp ort adjustment, while 
non-energy exports have been resilient to the pandemic's shocks.47 
1.30.   The global spread of the pandemic and the resulting containment measures took a heavy toll 
on Russian merchandise exports, which increased from USD  285.3 billion in 20 16 to 
USD 424.1  billion in 2019 and declined to USD  336.6  billion in 2020. Mineral fuels represented 
49.8% of total merchandise exports in 2020 (compared with 58.2% in 2016). Next comes 
manufacturing exports, led by base metals and articles thereof, which contributed 10.4% of total 
merchandise exports in 2020 (10.1% in 2016). Vegetable products increased their share in total 
merchandise exports from 2.5% in 2016 to 3.9% in 2020 (Table A1.1 and Chart 1.2).  
1.31.   Merchandise exports also continue to be highly conce ntrated geographically, albeit 
decreasingly. In 2020, 33.8%  of total exports were shipped to the European  Union (EU -27) 
(compared with 43.4% in 2016), followed by Asia with 27.1%, and the Commonwealth of 
Independent States (CIS)48 (12.8%) . During the revie w period, China became the largest single 
export market (14.6% of total merchandise exports in 2020), followed by the Netherlands  (7.4%), 
the United  Kingdom (6.9%), and Germany (5.5%). The shares of the United  States and Japan were 
3.3% and 2.7%, respectiv ely, in 2020 (Table A1.2 and Chart 1.3).  
1.32.   Merchandise imports also suffered from COVID -19 mitigation measures. They increased 
USD 181.8 billion in 2016 to USD  244.1 billion in 2019 and USD  231.1 billion in 2020. Machinery 
including electrical equipment led total merchandise imports with 31.7% share in 2020 (31.3% in 
2016), followed by chemicals (12.7%) and transport equipment (12.4%). Vegetable products 
represented 5.0% of total merchandise imports in 2020 (Table A1.3 and Chart 1.2).  
 
43 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
p. 54. 
44 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
pp. 52 -53. 
45 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
pp. 54 -56. The same report suggests that to align its various policies affecting foreign trade, the Government 
could adopt a foreign trade strategy that emphasizes firm competitiveness and quality of domestically 
produced goods.  
46 WTO Statistics Database, Trade Profiles: Russian  Federation . Viewed at: 
https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/RU_E.pdf .  
47 World Bank (2020), Russia's Economy Loses Momentum  Amidst COVID -19 Resurgence; Awaits Relief 
from Vaccine , Russia Economic Report 44.  
48 Commonwealth of Independent States, including certain associate and former member States.  WT/TPR/S/416  • Russian Federation  
- 21 - 
1.33.   Asia was the source of 3 7.9% of total merchandise imports in 2020 (35.2% in 2016), with 
China increasing its participation from 21.0% in 2016 to 23.8% in 2020. Led by Germany, the EU -27 
represented 33.9% of Russian merchandise imports in 2020, compared with 36.4% in 2016. The 
participation of the United  States decreased from 6.0% in 2016 to 5.7% in 2020, while that of Japan 
also went down, from 3.7% to 3.1% (Table A1.4 and Chart 1.3).  
Chart 1.2 Product composition of merchandise trade  by main HS section/subheading, 
2016 and 2020  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Chart 1.[RUS]  Product composition of merchandise trade by main HS sections/subheadings, 2016 and 2020
2016 2020
Precious 
stones
& metals 
9.0%
Petroleum oil, crude 
(HS 2709)
21.6%Petroleum oils, 
other than 
crude
(HS 2710) 
13.5%Petroleum gases 
and other gaseous 
hydrocarbons 
(HS 2711) 
10.0%Coal (HS 2701) 
3.7%
Vegetable 
products 3.9%
Total:   USD 285.3 billion Total:  USD 336.6 billion  
Base metals & 
articles thereof
6.3%
Chemicals 
12.8%Live animals & 
products 
3.3%
Vegetable 
products
5.1%Textiles and textile 
articles
4.7% 
Vegetable 
products
5.0%Live animals & 
products 
2.7%Textiles and 
textile articles
5.0% Machinery;
electrical 
equipment
3.8%
Base metals &
articles thereof
6.9% 
Total:   USD 181.8 billion Total:   USD 231.1 billion Other
19.5%
Source:  WTO Secretariat calculations, based on data provided by the authorities.Other 
10.1%Coal (HS 2701) 
3.1%
Other
9.8%Transport
equipment
12.4%Other
18.1%
Chemicals 
12.7%Transport
equipment
13.0%Vegetable 
products 2.5%Base metals & 
articles thereof
10.4%
Machinery; 
electrical 
equipment
3.8%
Machinery;
electrical equipment
31.3% Machinery; 
electrical equipment
31.7% 
Plastics & rubber 
5.6% Plastics & rubber
5.7% Petroleum gases 
and other gaseous 
hydrocarbons 
(HS 2711) 
12.4%Chemicals 
4.8%Chemicals 
4.9%Exports (f.o.b.)
Imports (c.i.f.) 
Precision 
instruments
3.0%Precision
instruments
3.7%Base metals & 
articles thereof
10.1%
Petroleum oil, crude 
(HS 2709)
25.8%Petroleum oils, 
other than 
crude
(HS 2710) 
16.2%
Prepared food,
beverages & 
tobacco
4.7%Prepared food,
beverages & 
tobacco
4.5%Precious 
stones
& metals 
3.1%WT/TPR/S/416  • Russian Federation  
- 22 - 
Chart 1.3 Direction of merchandise trade, 2016 and 2020  
 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
1.34.   Regarding services trade, the Russ ian Federation ranked 15th as exporter and 11th as importer 
in the world (considering EU member States as one and excluding intra -EU trade) in 2019.49 The 
Russian  Federation is a net importer of services, although its deficit decreased from USD  24.0 billio n 
in 2016 to USD  17.0 billion in 2020 (Table 1.2), largely due to the impact of the pandemic. Transport 
and travel services exports were hit the hardest, with restrictions on foreign travel and lower global 
demand. Net outflows have mostly occurred in the form of payments for foreign travel and other 
business services (Table A1.5), with the EU -27 being the largest trading partner in services trade 
(Chart  1.4). At the same time, despite the negative impact of the pandemic, the foreign trade 
turnover in servi ces increased in construction and related services from USD  10.3 billion in 2019 to 
USD 12.2 billion in 2020, and in telecommunications, computer, and information services from 
USD 10.7 billion in 2019 to USD  11.9 billion in 2020.50 
 
49 WTO Statistics Database , Trade Profiles: Russian  Federation . Viewed at: 
https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/RU_E.pdf .  
50 Data provided by the authorities.  
CIS 
11.1%
United 
Kingdom 
2.4%Africa 4.0%
CIS 
12.8% Belarus 4.7%Kazakhstan 
4.2%Other CIS 3.9%
Turkey 4.7%
United 
Kingdom 
6.9%Africa 3.5%Middle East 2.7%
Kazakhstan 
2.0%Other CIS 
1.4%Asia 
35.2%
Turkey 1.2%a
United 
States 
5.7%CIS 
9.4%
Belarus 5.4%Kazakhstan 
2.2%Other CIS 
1.8%Asia 
37.9%
Turkey 2.2%aChart 1.[RUS] Direction of merchandise trade, 2016 and 2020
2016 2020
Exports (f.o.b.)
Source:  WTO Secretariat calculations, based on data provided by the authorities.Other CIS 2.9%
Other Asia 7.7%Imports (c.i.f.)
Kore, Rep. of 2.8%Japan 3.7%Total: USD 285.3 billion Total: USD 336.6 billion
Total:  USD 181.8 billion Total: USD 231.1 billionOther
6.1%
Other
10.9%China
14.6%
EU-27
43.4%Other Asia 6.1%
Japan 3.1%
EU-27
36.4%China
23.8%Korea, Rep. of 3.1%
EU-27
33.9%Korea, Rep. of 3.5%Japan 3.3%
Other  
12.6%China
21.0%Other Asia 7.9%Other 
5.2%Japan 2.7%
EU-27
33.8%Middle East 2.6%
United States 
3.3%Turkey 4.8%Kazakhstan 3.3%
Belarus 4.9%
United States
3.3%Asia 
27.1%Korea, Rep. of 
3.7%
United States 
6.0% Belarus 5.2%CIS 
8.6%Other Asia 5.8%
Asia 
22.4%China 
9.8%
a          Commonwealth of Independent States, including certain associate and former member states.a
aWT/TPR/S/416  • Russian Federation  
- 23 - 
Chart 1.4 Trade in services by sector and partner, 2020  
 
Source:  Bank of Russia, External Sector Statistics . Viewed at: 
https://www.cbr.ru/eng/statistics/macro_itm/svs/ . 
1.3.2   Foreign direct investment  
1.35.   The Russian  Federation has experienced reduced FDI inflows between 2014 and 2019 , mainly 
due to increased uncertainties  derived from economic measures applied by some countries and the 
Russian  Federation's countermeasures. According to the World Bank, this exposed the economy's 
structural vulnerabilities, and adversely affected investors' sentiments and their valuations of assets 
in the Russian  Federation. Over this period, f alling oil prices further led to severe exchange rate 
34.2%
12.6%
12.0%11.7%10.0%6.1%2.5%2.5%
8.6%
17.8%
14.9%
14.3%
11.7%10.6%9.3%9.0%3.8%8.6%Chart 1.[RUS] Trade in services by sector and partner, 2020
Services trade by sector Exports
Services trade by partner Imports
EU-27
40.4%
United Kingdom
6.2%China
5.4%United States
5.0%Switzerland
5.0%Turkey
4.4%Belarus
2.4%Other
31.2%
EU-27
33.3%
Switzerland
7.7%United States
7.5%China 5.5%United Kingdom
4.9%Kazakhstan
3.8%Belarus 3.3%United Arab 
Emirates
2.1%Turkey 2.1%
Other
29.9%Transport
Travel
OtherFinancial services
Telecommunications, computer 
and information services
ConstructionProfessional and 
management consulting services
Charges for the use of 
intellectual property
Technical, trade -related, 
and other business services
Total: USD 47.0 billion Total: USD 64.1 billion
Source: Bank of Russia, External Sector Statistics . Viewed at: 
https://www.cbr.ru/eng/statistics/macro_itm/svs/.WT/TPR/S/416  • Russian Federation  
- 24 - 
deterioration , which adversely affected the value of investment stock directly, as well as contributed 
to the worsening of valuations a nd divestments.51 
1.36.   FDI inflows ranged around  USD 30 billion per year between 2016 and 2019, with a temporary 
drop to USD 8.8 billion in 2018. In line with the strong decline in global FDI flows in 2020 due to the 
COVID -19 pandemic, FDI inflows plummeted fro m USD 32 billion in 2019 to USD 8.7 billion in 2020, 
driven by the manufacturing and services sectors. The Russian Federation is also an important 
contributor to global FDI, with FDI outflows averaging USD 28.1 billion during 2016 -19; outflows of 
USD 5.3 b illion are estimated for 2020 (Table 1.3).52 
1.37.   In 2020, most FDI into the Russian economy originated in the United Kingdom, followed by 
Singapore and Hong Kong, China, while the main recipients of FDI outflows were Switzerland, 
Germany, and the United Kingdo m (Table 1.3). Over the last few years, the volume of FDI into the 
Russian  Federation was, on average, largely accounted for by mining and quarrying of fuel and 
energy materials, followed by services and manufacturing (mainly basic metals and fabricated 
metals) (Table 1.4).  
Table 1.3 FDI flows by main partners, 2016 -20a 
(USD million)  
  2016  2017  2018  2019  2020  
  FDI inflows  
World  32,539  28,557  8,785  31,975  8,663  
United Kingdom  478 2,076  2,522  4,686  9,105  
Singapore  16,274  2,703  1,587  530 8,571  
EU-27 2,215  12,995  -2,308  18,050  -15,996  
Netherlands  165 -1,427  7,846  6,393  1,928  
France  1,997  854 1,134  2,044  1,441  
Austria  1,071  -174 884 924 -39 
Cyprus  -436 8,674  -10,108  7,932  -4,368  
Hungary  362 184 259 284 139 
Bahamas  5,802  6,211  1,009  1,143  688 
Bermuda  2,551  1,256  843 967 1,009  
Hong Kong, China  -30 573 135 2,687  2,303  
Switzerland  1,842  1,511  1,690  23 -900 
United  States  402 495 376 -105 402 
Qatar  0 0 -314 1,465  260 
Kazakhstan  350 205 159 130 107 
Turkey  26 79 118 214 331 
Japan  140 83 345 116 72 
United Arab Emirates  82 94 324 148 70 
Norway  34 31 44 23 554 
China  345 140 -13 136 31 
Memorandum:       
EU-28 2,693  15,071  214 22,736  -6,891  
  FDI outflows  
World  22,314  36,757  31,377  21,923  5,298  
EU-27 11,799  23,720  20,431  18,342  -3,157  
Cyprus  9,827  21,241  10,681  14,344  -1,492  
Austria  258 6,739  221 369 168 
Ireland  1,139  634 2,032  832 1,158  
Germany  393 724 1,078  1,420  2,053  
Luxembourg  -1,633  1,857  2,000  727 597 
Singapore  888 6,136  1,566  1,923  146 
United Kingdom  755 192 2,626  2,454  1,967  
Switzerland  1,433  2,281  794 -2,152  2,712  
Bahamas  1,205  1,300  1,258  223 116 
Belarus  629 494 646 588 474 
Kazakhstan  476 727 366 187 64 
Kyrgyz  Republic  125 150 52 33 39 
 
51 World Bank (2020), Russia Integrates : Deepening the Country's Integration in the Global Economy , 
p. 162. 
52 UNCTAD , Investment Trends Monitor , Issue 38, January 2021; and data provided by the authorities.  WT/TPR/S/416  • Russian Federation  
- 25 - 
  2016  2017  2018  2019  2020  
Ukraine  822 -92 213 240 94 
Brazil  7 120 168 93 18 
United  States  873 126 653 -577 -677 
Turkey  1,184  557 534 -2,107  188 
Memorandum:        
EU-28 12,554  23,912  23,056  20,796  -1,189  
a Based on average during the period 2016 -20. 
Source:  Bank of Russia, External Sector Statistics . Viewed at: 
https://www.cbr.ru/eng/statistics/macro_itm/svs/ . 
Table 1.4 FDI inflows by economic activ ity, 2016 -20 
(USD million)  
  2016  2017  2018  2019  2020  
Total  32,539  28,557  8,785  31,975  8,663  
Agriculture, forestry and fishing  -141 -274 58 -23 119 
Mining and quarrying, of which:  22,304  8,329  5,043  8,446  8,209  
Mining and quarrying of fuel and energy 
materials (hard coal, lignite, crude 
petroleum, natural gas)  25,738  7,472  5,149  9,169  8,935  
Mining and quarrying except fuel and energy 
materials (mining of metal ores, various 
minerals and non -metallics)  -3,434  857 -106 -723 -727 
Manufacturing, of which:  4,884  2,867  4,289  6,608  -2,149  
Food products, beverages, and tobacco 
products  511 898 269 -755 -475 
Wood and products of wood and cork, 
except furniture; articles of straw and 
plaiting materials  291 164 -168 -125 -38 
Paper and paper products; printing and 
reproduction of recorded media  175 92 298 -131 -174 
Coke and refined petroleum products  -537 793 -258 778 456 
Chemicals and chemical products; 
pharmaceutical products and 
pharmaceutical preparations  1,187  -78 -772 201 -2,805  
Basic metals and fabricated metal products, 
except machinery and equipment  2,173  263 4,037  5,714  930 
Manufacture of motor vehicles, trailers and 
semi-trailers and other transport equipment  535 68 1,091  1,179  76 
Electricity, gas, steam and air conditioning 
supply  -98 1,173  696 405 433 
Water supply; sewerage, waste management 
and remediation activities  -9 -37 -2 18 9 
Construction  -342 2,072  -214 163 192 
Services, of which:  5,441  13,823  -1,634  15,087  1,381  
Wholesale and retail trade; repair of motor 
vehicles and motorcycles  1,701  1,826  -7,075  7,246  4,442  
Information and communication  -362 780 -1,197  -300 -598 
Financial and insurance activities  3,301  7,136  8,368  6,604  -1,643  
Real estate activities  399 1,402  583 125 -100 
Professional, scientific and technical 
activities  15 2,523  -4,107  -506 -1,372  
Other  500 603 549 1,271  469 
Source:  Bank of Russia, External Sector Statistics . Viewed at: 
https://www.cbr.ru/eng/statistics/macro_itm/svs/ . 
1.38.   During the review period, measures were taken by the Russian authorities to attract larger 
FDI inflows and improve the business climate. For ex ample, Federal Law No. 69 -FZ of 1 April 2020 
on the Protection and Encouragement of Investment in the Russian Federation was approved in 
2020, and the authorities are implementing a "regulatory guillotine" mechanism that includes 
consolidating key regulato ry principles (Section 2.4).  
1.39.   The Russian  Federation improved its ranking in the World Bank Doing Business Index from 40 
in 2016 to 28 in 2020.53 However, according to the World Bank, starting a business, enforcing 
 
53 World Bank (2020), Doing Business 2020, Economy Profile . Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/russia# . WT/TPR/S/416  • Russian Federation  
- 26 - 
contracts, and resolving insolvency are so me of the key impediments to investing in the 
Russian  Federation.54 Moreover, corruption and uncertainties regarding the stability of the region 
remain major challenges.55 At the same time, as indicated by the OECD's FDI Restrictiveness Index, 
the Russian  Federation still ranks poorly compared to some OECD countries for a number of 
policies.56 
 
54 World Bank, Ease of Doing Business in the Russian  Federation . Viewed at:  
http://www.doingbusiness.org/data/exploreeconomies/russia .  
55 Santander, Russia: Foreign Investment . Viewed at: https://santandertrade.com/en/portal/establish -
overseas/russia/foreign -investment?url_de_la_page=%2Fen%2Fportal%2Festablish -
overseas%2Fruss ia%2Fforeign -
investment&&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser . 
56 OECD FDI Regulatory Restrictiveness Index. Viewed at: 
https://www.oecd.org/investment/fdiindex.htm . WT/TPR/S/416  • Russian Federation  
- 27 - 
2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  According to its Constitution, the Russian  Federation is a federal republic consisting of 
"subjects", i.e. regions and entities of various legal structures. The executive, legislative, and 
judiciary form three independent branches of power of the State. A revised Constitution was adopted 
on 4 July 2020, introducing a number of changes that incl ude: (i)  certain limits to the enforcement 
of decisions of interstate bodies established under international treaties; (ii)  some adjustments in 
the overall balance of powers; and (iii)  new requirements for presidential candidates.  
2.2.  The President of the Russ ian Federation as head of state is elected by direct popular vote for a 
period of six years, renewable once following the recent constitutional changes.1 The overall role of 
the President is to ensure the coordination and functioning of the State, while "guaranteeing" the 
Constitution, human and civil rights, and freedoms. The President also determines the basic 
guidelines for domestic and foreign policy o f the Federation. Following approval by the State Duma2, 
the President appoints the Chairperson of the Government of the Russian  Federation (Prime 
Minister), Deputies of the Chairperson of the Government, and heads of federal executive bodies 
(including t he Federal Ministers), except for the heads of the bodies in charge of the issues of 
defence, state security, internal affairs, justice, foreign affairs, emergencies, and public security. 
The latter are appointed by the President in consultations with the Federation Council. The President 
of the Russian  Federation signs draft laws approved by the legislative branch and has wide power in 
proposing, naming, or dismissing key civil servants. For example, the President presents nominees 
for other important post s such as the Chairperson of the Bank of Russia (to the State Duma) or 
Chairperson of the Constitutional Court of the Russian  Federation (to the Federation Council) and 
appoints (following consultation with the Federation Council) or dismisses the General Prosecutor of 
the Russian  Federation. The President can also dismiss Deputies of the Chairperson of the 
Government and heads of federal executive bodies, accept or reject the resignation of the 
Government, and recommend dismissing the Chairperson of the Ba nk of Russia, the Chairperson of 
the Constitutional Court, and certain judges (see below). The President issues decrees and orders 
that cannot be inconsistent with the Constitution or federal laws and can also submit draft laws to 
the State Duma.  
2.3.  The Gover nment of the Russian  Federation, headed by the Chairperson of the Government 
under the general direction of the President, holds executive powers; ensures the implementation 
of a single trade, fiscal, credit, and monetary policy; and carries out measures o n the implementation 
of foreign policy. It develops the federal budget, submits it to the State Duma, implements it, and 
reports on its execution to the State Duma. The Chairperson of the Government "bears personal 
responsibility" regarding the exercise of  the Government's powers to the President.3 The 
Government issues resolutions and orders to implement policies. The Federation and regions share 
responsibility for civil rights and freedoms, education, healthcare, land, environmental protection, 
or public  administration.4 The Government resigns upon election of a new President.  
2.4.  The Federal Assembly is the legislature and consists of two chambers. The 450 members of the 
Lower Chamber (State Duma) are elected by popular vote, using a mixed electoral system every 
five years. Half of the deputies are elected based on lists in each constituency (one constituency -
one deputy), with the other half elected based on a proportional basis at the federal level. The Upper 
Chamber (Federation Council) comprises senators of the Russian  Federation: two representatives 
from each subject of the Russian  Federation, and up to 30 additional senators appointed by the 
 
1 The constitutional reforms in 2020 reduced the number of total terms of the President to two, while 
formerly the President could serve two consecutive terms. The reform also introduced a new requirement for 
candidates not to have held foreign residency in th e past and having been a resident in the Russian  Federation 
for at least 25 years (formerly 10 years). The new requirements, including limits on presidential terms, apply 
from the next election, effectively resetting past terms for the incumbent President.  Viewed at: 
http://www.en.kremlin.ru/acts/news/62988 . 
2 The constitutional reform changed parliament's role from giving consent to confirming the candidate. 
However, should the State Duma reject a candidate three times, the President can nevertheless appoint the 
Prime Minister and has the right to dissolve the  State Duma and call for new elections (Constitution, 
Article  111.4).  
3 Constitution, Article  113. 
4 Constitution, Articles 71 and 72. Viewed at: http://kremlin.ru/acts/constitution . WT/TPR/S/416  • Russian Federation  
- 28 - 
President.5 Draft laws are first adopted by the State Duma before being approved or rejected by the 
Federation Co uncil. Once a draft law is approved by the two chambers, the President signs the 
federal law adopted by the Federal Assembly unless s/he uses veto powers, which the legislative 
branch can override with certain majorities. The 2020 revisions to the Constitu tion further introduced 
an option for the President to request the Constitutional Court to review a law for its constitutionality 
before signing it. The President can also suspend the acts of the legislative branch pending the 
review of their consistency w ith the Constitution by a relevant court. The State Duma has the right 
to bring charges against the President for the purposes of impeachment.6 
2.5.  The judiciary consists of the Constitutional Court of the Russian  Federation, the Supreme Court 
of the Russian  Federation, a system of lower courts of general jurisdiction (including military courts), 
and arbitration courts (including a specialized court on intellectual property rights (IPRs)), both at 
the level of the subjects of the Russian  Federation and at the federal level, as well as justices of 
peace of the subjects of the Russian  Federation at district level for smaller disputes. The Supreme 
Court of the Russian  Federation is the highest court for, inter alia , civil, administrative, and criminal 
cases, as we ll as those on the resolution of economic disputes.7 The Constitutional Court is the 
highest court to review ( ex ante ) the constitutionality of laws and international treaties and also 
rules on the constitutionality of laws or other normative legal acts o f the Russian  Federation following 
complaints by citizens, legal entities, or municipalities or upon inquiry of lower courts in connection 
to a specific case.8 Similar courts exist at the level of the subjects of the Russian  Federation. The 
Office of the Public Prosecutor is tasked with ensuring the observance of all legal acts and the 
Constitution by federal and regional governments, and also has a role as State Prosecutor. In 
accordance with amendments introduced to the Constitution in 2020, the Federati on Council now 
has the authority to dismiss, upon the proposal of the President, the chairmen and judges of the 
Constitutional and Supreme Courts, as well as judges of some lower courts in case they act in a 
manner discrediting the honour and dignity of a judge.9 
2.6.  Draft normative legal acts are subject to a regulatory impact assessment procedure (which also 
considers, inter alia , the impact of a draft normative legal act on micro, small, and medium -sized 
enterprises (MSMEs)). Draft normative legal acts are posted for at least 30 days on the 
regulation.gov.ru website for public access and the opportunity to provide comments  and make 
proposals that can be considered by the developers of the acts. Similar systems are operating in 
regions of the Russian Federati on in respect of normative acts of regional authorities.  
2.7.  All legal instruments are published in official sources, notably the official gazette (the 
Rossiyskaya Gazeta ), the  Parlamentskaya Gazeta , and  the Sobraniezakonodatelstva Rossiyskoy 
Federatsii , as w ell as on the pravo.gov.ru website.  Legal acts of the President (such as presidential 
decrees) and the Government (such as government resolutions) are subject to official publication in 
the Rossiyskaya Gazeta  and the Sobraniezakonodatelstva Rossiyskoy Fede ratsii. Other websites 
making legal acts accessible online are government.ru/docs/all, garant.ru, consultant.ru, and 
docs.cntd.ru.  
2.8.  The hierarchy of legal instruments in the Russian  Federation is, from highest to lowest: (i)  the 
Constitution; (ii)  federal c onstitutional laws; (iii)  federal laws; (iv)  decrees and orders of the 
President, and resolutions and orders of the Government; and (v)  acts of federal executive 
authorities.10  
2.9.  Some of the recent amendments to the Constitution affect the trade -related ins titutional 
framework. Generally, international law takes precedence over domestic law, as the Constitution 
spells out that international treaties should be applied where such international treaties establish 
 
5 The term Senator w as introduced during the constitutional reform, which also included former 
Presidents as Senators in the Federal Council and introduced the ability of the President to nominate up to 30 
Senators in addition to those representing the federal subjects. Befor e the recent amendments, the President 
could appoint up to 10% of the number of the members of the Federation Council as Senators.  
6 Constitution, Article  93. 
7 Supreme Court website. Viewed at: http://www.supcourt.ru/en/judicial_system/overview/ . 
8 Federal Constitutional Law No.  1-FKZ of 21 July 1994 on the Constitutional Court of the 
Russian  Federation, Articles 3, 96, and 101.  
9 Constitution, Article  102. 
10 Normative legal acts of feder al executive authorities (i.e. acts whose binding effect extended to all of 
the territory of the Russian  Federation) include resolutions, orders, rules, instructions, regulations, and 
decisions.  WT/TPR/S/416  • Russian Federation  
- 29 - 
rules other than those provided for by (domestic ) law.11 Two amendments to the Constitution clarify 
this principle by allowing the Constitutional Court to prevent enforcement of supranational decisions 
where they are based on the interpretation of international treaties that contradict the Constitution 
or public policy. According to the Constitutional Court, this particular amendment does not entail a 
rejection by the Russian  Federation of its compliance with the international treaties or 
implementation of its international commitments but is designed to  adopt a Constitution -consistent 
mechanism for the implementation of relevant (supranational) decisions.12 
2.2  Trade Policy Formulation and Objectives  
2.10.   The Ministry of Economic Development (MED) and the Ministry of Industry and Trade (MIT) 
are responsible for the development and implementation of foreign trade policies.13 The MED and 
the MIT coordinate with the Ministry of Foreign Affairs (MFA) and other Ministries and trade -related 
agencies, notably the Ministry of Agriculture, the Ministry of Energy, the Ministry of Finance, the 
Ministry of Transport, and the Bank of Russia. The MED and the MIT conduct consultations with the 
private sector, academic community, and civil society on an ad hoc  basis or within the framework of 
specially designed bo dies like the Committee on Trade Policy and Customs Matters of the Russian 
Union of Industrialists and Entrepreneurs and a similar committee in the Chamber of Trade and 
Industry of the Russian  Federation to discuss trade policy developments and initiatives .14 
2.11.   Federal Law No.  164-FZ of 8  December  2003 on the Fundamentals of the State Regulation of 
Foreign Trade Activity in the Russian  Federation remains the main legislative act that governs 
fundamental principles of trade policy. With the entry into force of the  Treaty on the Eurasian 
Economic Union (EAEU Treaty) on 1  January  2015, a number of competences in the trade field were 
divided between the supranational regulatory bodies of the EAEU 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 legislation.15 
2.12.   Since the last Review, significant changes to relevant trade legislation have occurred, 
particularly in the areas of cu stoms procedures and requirements16, export duties and taxes17, export 
support18, public procurement19, foreign investment20, competition21, protection of IPRs22, financial 
 
11 Constitution, Article  15. 
12 Constitutional Court Conclusion  No. 1-Z of 16 March 2020 on the Compliance of the Law on the 
Amendment of the Constitution of the Russian  Federation with the Provisions of Chapters 1, 2, and 9 of the 
Constitution. Viewed at: http://doc.ksrf.ru/decision/KSRFDecision459904.pdf , pp. 20-21. 
13 The specific roles of the MED and the MIT in trade policy, as described in WTO document 
WT/TPR/S/345/Rev.1, 6  December  2016, paras.  2.7-2.8, have not changed since the previous Review.  
14 Other organizations consulted by the MED and the MIT on trade policy matters are Opora Russia, 
Delovaya Russia, and the Centre of Expertise on WTO -Related Matters. WTO document WT/TPR/S/345/Rev.1, 
6 December  2016, para.  2.11. 
15 Regarding the relationship between EAEU law and domestic law, the authorities indicate that the EAEU 
Treaty is part of the domestic legal system of the Russian Federation and envisages direct application of legal 
acts of EAEU bodies.  The direct applicabili ty of an EAEU legal act within the domestic legal order of EAEU member 
States depends upon the content of the act and the legal system of individual Member States. For example, EAEU 
technical regulations, the EAEU common customs tariff, and numerous other legal acts adopted by EAEU bodies 
are directly applicable in the Russian Federation, but international treaties concluded by the EAEU may require 
implementing regulations.  
16 Key developments included the entry into force of the EAEU  Customs Code, the adoption at the 
national level of a new customs law, and several EAEU legal decisions on customs valuation ( Section 3.1.1 ). 
17 Particularly with respect to energy ( Section 4.2.2).  
18 The legislation on the state corporation responsible for  the provision of export support was amended 
to change its mandate ( Section 3.2.4 ).  
19 While the basic legal framework has remained the same, numerous amendments were made to the 
three main laws regulating public procurement ( Section 3.3.6 ). 
20 Including am endments to legislation on foreign investment in companies of strategic importance 
(Sections 2.4  and 4.2.2 ). 
21 See Section 3.3.4  for a review of amendments made during the review period to the Law on the 
Protection of Competition.  
22 Changes were made to l egislation on copyrights and related rights, industrial designs, geographical 
indications, and patents, and several international legal instruments were accepted, including the Protocol 
amending the TRIPS  Agreement ( Section 3.3.7 ).  WT/TPR/S/416  • Russian Federation  
- 30 - 
services23, and telecommunications services.24 There were no major changes to the l egislation on 
non-tariff measures (Section 3.1.5), trade remedies (Section 3.1.6), special economic zones 
(Section 3.2.6), technical regulations and standards (Section 3.3.2), sanitary and phytosanitary 
measures (Section 3.3.3), and state ownership and pri vatization (Section 3.3. 5). 
2.13.   The Russian  Federation observes, in this Review, that its priorities include strengthening its 
position in the global market  and enhancing the contribution of foreign economic activities to its 
socio-economic development.  In thi s regard, the main objectives of the Russian  Federation's trade 
policy are to: (i)  modernize and diversify the economy, foster its global competitiveness, and create 
favourable conditions for its continuous growth and stable development; (ii)  promote susta inable 
and innovative economic development; (iii)  increase trade and investment volumes; (iv)  accelerate 
global integration processes; (v)  create favourable conditions for Russian exporters, importers, 
producers, and consumers of goods and services; and (v i) boost the competitiveness of the 
Russian  Federation's services sector. At this very general level, the trade policy objectives do not 
appear to have fundamentally changed since the last Review.25 
2.14.   Recent developments in the Russian  Federation's trade pol icy have been closely related to the 
pursuit of industrial policy. Federal Law No.  488-FZ of 31  December  2014 on the Industrial Policy in 
the Russian  Federation defines the purposes of industrial policy as follows: (i)  creation and 
development of modern in dustrial infrastructure, including for the facilitation of activities in the 
industrial sector; (ii)  creation of a competitive environment for activities in the industrial sector; 
(iii) encouragement of the subjects of activity in the industrial sector to implement the results of the 
intellectual activity and production of innovative industrial products; (iv)  encouragement of the 
subjects of activity in the industrial sector to utilize material, financial, labour, and natural resources 
efficiently and effec tively, to provide for the increase in labour productivity, and the introduction of 
import -substitutable, resource -saving, and ecologically safe technologies; (v)  increase in high value -
added output; (vi)  support for technological modernization of the subj ects of activity in the industrial 
sector, and modernization of basic production assets; (vii) reduction of the risk of technogenic 
emergencies at industrial infrastructure facilities; and (viii) ensuring technological independence of 
the national economy.26 The Industrial Policy Law defines conditions under which financial support 
may be provided to industries, introduces the special investment contract as a new type of incentive 
for industrial activities, provides for priority of domestic products and ser vices in public procurement, 
establishes a state information system to support the industrial sector, provides for the 
establishment of industrial parks, and introduces incentives for the development of industrial 
clusters.27 
2.15.   Notwithstanding the growing im portance of import substitution and localization 
(Section  3.1.7), there has also been a shift in the Russian  Federation's recent trade policy towards 
greater emphasis on the promotion and diversification of non -commodity exports, as illustrated by 
the esta blishment, in 2015, of the Russian Export Center and the launch, in 2016, of several export 
 
23 Including amendments to the Law on Banks and Banking Activities and to legislation on foreign 
ownership restrictions in insurance ( Section 4.3.1 ). 
24 Including amendments to the basic Law on Communication Services and a new Law on Cybersecurity 
(Section 4.3.2 ). 
25 See the list o f trade policy objectives in the previous Review. WTO document WT/TPR/S/345/Rev.1, 
6 December 2016, para.  2.14.  
26 WTO document WT/TPR/M/345/Add.1, 19 December 2016, p. 67. The authorities indicate that the 
Russian Federation's industrial policy is guided by the following basic principles: rational combination of forms 
and methods of state regulation and market economy; measures of direct and indirect stimulation of industrial 
activities; information openness in the development of industrial policy; and equ al access of industrial entities 
to state support in accordance with the terms of its provision. The promotion of industrial activities is carried 
out by providing financial and non -financial support, support for innovation in the industrial sector and 
development of human resources, support for foreign economic activity, provision of state and municipal 
preferences, and other support measures.  
27 No significant changes were made to Law No. 488 -FZ during the review period. However, within the 
framework of th e national goal "Decent and Effective Work and Successful Entrepreneurship", established by 
Presidential Decree No. 474 of 21  July 2020, the national project International Cooperation and Export is being 
implemented, the goal of which is to ensure by 2030 real growth in the export on non -energy goods by at least 
70% compared to 2020. This will be achieved by, inter alia , implementation of the federal programmes 
Industrial Exports, Exports of Agricultural Products, and Systemic Measures for the Development o f 
International Cooperation and Exports.  WT/TPR/S/416  • Russian Federation  
- 31 - 
promotion programmes28 (Section 3). One of the national development objectives adopted in May 
2018 in Presidential Decree No. 204  was the creation of a highly produ ctive, technologically 
advanced export -oriented subsector in basic sectors of the economy, particularly in manufacturing 
and agriculture industries.29 In relation to this objective, the Decree required the Government to 
develop or amend, by 1  October  2018,  a national project (programme) on international cooperation 
and export.30 Regarding the targets to be achieved by this national project (programme), the Decree 
provides that by 2024 non -resource -based exports must account for at least 20% of gross domesti c 
product (GDP) and amount to at least USD  250 billion annually31 and that trade volume between 
Member States of the EAEU must have increased by a factor of 1.5.32 It also instructs the 
Government to direct industrial, agricultural, and trade policies, including mechanisms of state 
support, towards achievement of international competitiveness of Russian goods and services on 
external markets; reduce administrative o bstacles in the area of international trade, including 
through the creation by 2021 of a single window system; complete the creation of a set of flexible 
instruments for export support (by 2021); eliminate the logistical obstacles to the export of goods 
through railroads, motor, and sea transportation; create a unified system of institutions for export 
promotion; and complete the creation of common markets for goods, services, capital, and labour 
within the EAEU.33 
2.16.   The National Project on International Coop eration and Export adopted pursuant to Presidential 
Decree No. 204 of 7  May 201834 comprises the following federal projects: (i)  Industrial Exports; 
(ii) Exports of the Agro -industrial Complex35; (iii)  Exports of Services36; (iii)  International Trade 
 
28 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
p. 53. The report includes a detailed analysis of recent international trade trends in the Russian  Federation. 
One o f its findings is that export diversification progressed slowly from 2013 to 2019, "as the economy remains 
structurally highly dependent upon hydrocarbon export revenues". Closely related to this, "Russia's low levels 
of export diversification are coupled with lower complexity of the export basket, compared to other countries 
with similar income levels" (Ibid., pp.  43-44). An earlier study by the IMF of the Russian  Federation's recent 
experience regarding export diversification concludes that "generally pos itive long -term trends in diversification 
have stalled and have not been accompanied to a move into more sophisticated products". IMF (2017), 
Russian  Federation: Selected Issues , IMF Country Report No.  17/198.  
29 Presidential Decree No.  204 of 7 May 2018 on  National Objectives and Strategic Tasks of the 
Russian  Federation's Development in the Period up to 2024, Article  1(i).  
30 Presidential Decree No.  204 of 7 May 2018 on National Objectives and Strategic Tasks of the 
Russian  Federation's Development in the Period up to 2024, Article  2(b). 
31 Including exports of engineering products (USD  50 billion), agriculture products (USD  45 billion), and 
services (USD  100 billion).  
32 Presidential Decree No.  204 of 7 May 2018 on National Objectives and Strategic Tasks of the 
Russian  Federation's Development in the Period up to 2024, Article  14(a).  
33 Presidential Decree No.  204 of 7 May 2018 on National Objectives and Strategic Tasks of the 
Russian  Federation's Development in the Period up to 2024, Article  14(b).  
34 The pass port of this National Project was approved by the Presidium of the Council under the 
President of the Russian Federation for strategic development and national projects on 24 December 2018. 
MIT, Passport of the National Project International Cooperation and Exports. Viewed at: 
https://minpromtorg.go v.ru/docs/#!pasport_nacionalnogo_proekta_nacionalnyy_proekt_mezhdunarodnaya_ko
operaciya_i_eksport1619027296 ; and L. Goncharenko, S. Sybachin, N. Sidorov, and Zyaed, N.M. "National 
Projects for the Development of the National Economy: The Way of Russian  Federation", Journal of Legal, 
Ethical and Regulatory Issues , Vol. 24, 2021.  
35 This project aims to increase the volume exports of agricultural products to reach USD 45 billion by 
the end of 2024. Within this overall target, quantitative performance indicato rs exist for the growth of exports 
of certain products (fat and oil, grain, fish and seafood, meat and dairy products, and the food and processing 
industry). The project provides for the creation of an export -oriented commodity distribution infrastructure,  
elimination of trade barriers (tariff and non -tariff) to ensure access of agricultural products to target markets, 
creation of a system for promoting and positioning agricultural products, conclusion of agreements on 
increasing the competitiveness of comp anies in key industries (fish and crustaceans, fat and oil products, food 
processing industry, and grain products), and implementation of a strategy for the development of agricultural 
logistics.  
36 The objective of this project was to increase the volume o f exports of services to USD  100 billion by 
the end of 2024. Specific performance indicators exist for the growth rates of exports of certain services 
(transport, use of intellectual property and business services, travel services, telecommunication, compu ter 
and information services, construction services, services related to industrial products, financial and insurance 
services, and services in the field of culture and recreation). The project encompasses measures aimed at 
simplifying visa and migration r egistration procedures for target countries and regulatory reforms to facilitate 
the export of services.  WT/TPR/S/416  • Russian Federation  
- 32 - 
Logistics37; and (iv)  Systemic Measures for the Development of International Cooperation and 
Exports.38 
2.17.   One of the new national development objectives adopted by Decree No.  474 of 21  July 2020 
is decent, efficient work and succe ssful entrepreneurship. One of the targets that has been set to 
achieve this objective is real growth by 2030 in exports of non -resource -based, non -energy goods 
by at least 70% compared to 2020.  This target is expected to be achieved, within the framework of 
the National Project on International Cooperation and Export, through three federal projects: 
Industrial Exports, Exports of Agricultural Products, and Systemic Measures for the Development of 
International Cooperation and Exports.39 The introduction of  this new target for growth of 
non-commodity exports was accompanied by a substantial increase in the amount of funding 
allocated to the federal projects on Industrial Exports and Exports of Agricultural Products.40 
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.18.   The Russian  Federation grants at least MFN treatment to all of its trading partners. It is a 
party to the Information Technology Agreement and the Agreement on Trade Facilitation (TFA) , 
which the Russian  Federation accepted on 22  April 2016. Since 29  May 2013, it has acted as an 
observer to the Agreement on Trade in Civil Aircraft and the Government Procurement Agreement 
(GPA). The Russian  Federation started GPA accession negotiations in the second half of 2016, issuing 
its initial GPA market access offer in June 2017.  
2.19.   The Russian  Federation continues to strongly support the multilateral trading system as 
embodied in the WTO and sees the WTO as critical to ensuring a stable and predictable international 
trading environment. According to the authorities, this w as one of the key priorities for the 
Russian  Federation's presidency in BRICS 2020, which was explicitly reflected in the Joint Statement 
by BRICS Trade Ministers on the Multilateral Trading System and WTO Reform adopted on 
1 June 2021. The Russian  Federat ion is contributing to the discussion around WTO reform with a 
focus on improvements of the dispute settlement, negotiating, and monitoring functions of the WTO, 
as well as institutional improvements for its operation. The Russian  Federation proposed its v ision 
of the MC12 package reflecting its key priorities.41 The Russian  Federation participates in all four 
Joint Statement Initiatives, endorsed the Buenos Aires Declaration on Trade and Women's Economic 
Empowerment, and is one of the members of the Inform al Working Group on Trade and Gender. 
According to the authorities, the Russian  Federation's proposal on involving MSMEs in domestic 
regulatory development served as a basis for the respective recommendation endorsed by the 
Informal Working Group on MSMEs in December 2020.42 The Russian  Federation, together with other 
WTO Members, also advanced a proposal that governments should voluntarily provide information 
on MSMEs in the government reports under the TPR.43 The Russian  Federation is also actively 
involv ed in the discussions regarding domestic support in agriculture, eliminating special agricultural 
 
37 This project aimed to increase the export of transport services (road, rail, water, and air transport) to 
USD 25 billion in 2024. It included specifi c performance indicators with respect to the reduction of time necessary 
to pass border controls at key international checkpoints, the increase in throughput of export -oriented 
checkpoints, and improvement in the Russian  Federation's position on the Global  Logistics Ranking and on the 
Doing Business Index (with respect to the average time spent on paperwork during export operations and the 
average time spent on passing border and customs control during export operations).  
38 This project has a main objective  of increasing the volume of exports covered by support instruments 
of the Russian Export Center to USD  25 billion in 2024. It provides for measures to reduce administrative and 
regulatory barriers in terms of tax, currency, and customs legislation; organi zation of interaction between 
foreign economic activity participants according to the "one window" principle based on the digital platform of 
the Russian Export Center; development of laboratory facilities and recognition of test results to defend the 
interests of Russian manufacturers in the development of international standards; and creation of a unified 
export promotion system.  
39 MIT, International Cooperation and Export , Viewed at: 
https://minpromtorg.gov.ru/projects/international/export -support/ . The projects on Exports of Services and 
International Trade Logistics were terminated in October 2020.   
40 MIT, Financial Support of Federal Projects for 2021 -2023. Viewed at: 
https://minpromtorg.gov.ru/projects/international/export -support/financing/ . 
41 WTO document JOB/GC /261, 22 June 2021.  
42 WTO document INF/MSME/3, Annex 4, 9 November 2020.  
43 WTO document INF/MSME/W/1/Rev.2, 22 February 2019.  WT/TPR/S/416  • Russian Federation  
- 33 - 
safeguards, tariff quota allocation, enhancing transparency of applied import custom duties, and 
negotiations on fishery subsidies.  
2.20.   Between June 2016 and 4  August 2021, the Russian  Federation made 306 notifications to the 
WTO. The notifications were concentrated on SPS and TBT measures (more than 50% of 
notifications), as well as on anti -dumping and countervailing measures (20% of notifications) (see 
Table  A2.1). As at end -2020, at least four notifications remained outstanding under, inter alia, the 
Agreement on Agriculture and the Agreement on Licensing Procedures. Since its accession, the 
Russian  Federation has not made any notifications under Article  XVII:4(a ) of GATT  1994 regarding 
state trading enterprises. In March 2019, the Russian  Federation made its first notification under the 
TFA.44 The Russian  Federation has also regularly submitted tariff data to the WTO Integrated 
Database (IDB).  
2.21.   Related to the COVI D-19 pandemic, the Russian  Federation notified four measures affecting 
trade in goods, one measure affecting trade in services, and six measures affecting IPRs. The 
Russian  Federation also notified 22 support measures and 5 SPS measures. The Russian  Federa tion 
also joined a number of proposals and statements on COVID -19 and world trade.45 
2.22.   The Russian  Federation has participated in 17 trade disputes: 8 as complainant46 and 9 as 
respondent.47 In addition, it has been involved as a third party in 89 cases. Mos t of the disputes saw 
either the European  Union, the United  States, or Ukraine as a counterpart.  
2.3.2   Regional and preferential agreements  
2.23.   The EAEU Treaty entered into force on 1  January  2015 between the Russian  Federation, 
Kazakhstan, and Belarus, with Armenia  joining in January 2015 and the Kyrgyz  Republic in August 
2015. The EAEU Treaty provides for the free movement of goods between its Members. The EAEU 
Treaty contains the basic principles of the functioning of the EAEU in areas such as tariff and customs 
regulation, foreign trade policy, technical regulation, SPS measures, and macroeconomic and foreign 
exchange policies. It also comprises various elements of cooperation and regulation of financial 
markets, services and investment, competition policy and nat ural monopolies, energy, 
transportation, government procurement, IPRs, industrial policy, and agriculture, as well as the 
movement of labour.48 The Agreement was notified on 12  December  2014 in WTO document 
WT/REG358/N/1, S/C/N/785. Further international a greements governing free trade in goods are 
concluded by the EAEU together with its Member States. Member States are eligible to grant tariff 
preferences in trade with third countries unilaterally based on an international treaty of the Member 
State with t he third country concluded before 1  January 2015, or an international treaty concluded 
by all Member States.  
2.24.   As part of the EAEU, the Russian  Federation is part of a free trade agreement (FTA) with the 
Socialist Republic of Viet  Nam (entered into force on 5 October  2016 and notified to the WTO on 
4 May 2017 in WTO document WT/REG385/N/1, S/C/N/889), the Interim Agreement leading to the 
formation of a free trade area between the EAEU and the Islamic Republic of Iran (entered into force 
 
44 WTO document G/TFA/N/RUS/1, 1 March 2020.  
45 For additional information, see the WTO page on COVID -19 proposals: 
https://www.wto.org/english/tratop_e/covid19_e/proposals_e.htm .  
46 The eight cases are: United  States – Anti-Dumping Measures on Carbon -Quality Steel from Russia  
(DS586), United  States – Certain Measures on Steel and Aluminium Products  (DS554), Ukraine – Measures 
relating to Trade in Goods and Services  (DS525), European  Union – Anti-Dumping Measures on Certain C old-
Rolled Flat Steel Products from Russia  (DS521), European  Union – Cost Adjustment Methodologies and Certain 
Anti-Dumping Measures on Imports from Russia (Second complaint)  (DS494), Ukraine – Anti-Dumping 
Measures on Ammonium Nitrate (DS493), European  Union and its member States – Certain Measures Relating 
to the Energy Sector (DS476), and European  Union – Cost Adjustment Methodologies and Certain Anti -
Dumping Measures on Imports from Russia  (DS474).  
47 The nine cases are: Russian  Federation – Additional D uties on Certain Products from the United  States  
(DS566), Russian  Federation – Measures Concerning the Importation and Transit of Certain Ukrainian Products  
(DS532), Russian  Federation – Measures Concerning Traffic in Transit  (DS512), Russian  Federation – Measures 
Affecting the Importation of Railway Equipment and Parts Thereof  (DS499), Russian  Federation – Tariff 
Treatment of Certain Agricultural and Manufacturing Products  (DS485), Russian  Federation – Anti-Dumping 
Duties on Light Commercial Vehicles from Germany and Italy  (DS479), Russian  Federation – Measures on the 
Importation of Live Pigs, Pork and Other Pig Products from the European  Union  (DS475), Russian  Federation – 
Recycling Fee on Motor Vehicles  (DS463), and Russian  Federation – Recycling Fee on M otor Vehicles  (DS462).  
48 Refer to WTO document WT/REG358/1 for a factual presentation of the FTA.  WT/TPR/S/416  • Russian Federation  
- 34 - 
on 27  October  2019 and  notified to the WTO 31  January  2020 in WTO document WT/REG401/N/1), 
an FTA with Singapore (signed on 1  October  2019, but not yet put into force), and an FTA with 
Serbia (signed on 25  October  2019, but not yet put into force). FTAs with Egypt, India, and I srael 
are currently under negotiation. Joint feasibility studies  with Mongolia and Indonesia were launched 
in 2020.  
2.25.   The Russian  Federation is also a party to the Treaty on a Free Trade Area Between Members 
of the Commonwealth of Independent States (CIS).49 It is also party to the 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 U kraine.50 In addition, bilateral FTAs with Azerbaijan, Belarus, Kazakhstan, 
Georgia, Serbia, Turkmenistan, and Uzbekistan are also in force (for additional details on these, see 
WTO document WT/TPR/S/345/Rev.1, 6  December  2016). The Russian  Federation is also condu cting 
bilateral negotiations on FTAs on trade in services and investments with Singapore and the Republic 
of Korea.  
2.3.3   Other agreements and arrangements  
2.26.   The EAEU as a group provides preferences under the Generalized System of Preferences (GSP) 
to 104 developi ng countries and 48 least developed countries (LDCs).51 Importers pay 75% of duties 
for goods originating in developing countries, while those originating in LDCs enter duty free. Since 
January 2019, preferential rules of origin are in place for the GSP sc heme.52 
2.4  Investment Regime  
2.27.   The MED designs economic policy, including polices related to regulatory impact assessment, 
investment, and special economic zones. Since 2014, the Government has implemented the State 
Programme for the Economic Development and In novation Economy, combining activities to improve 
the business and investment environment, increase employment in SMEs, and for self -employed, 
improving labour productivity, stimulating technology adoption, and improving the efficiency of 
public administra tion.53 The State Programme was adjusted repeatedly over the reporting period, 
and it was also complemented with other strategies aimed at improving competition in the economy. 
These include Government Order No.  147-r of 31  January  2017 to improve processe s relevant for 
doing business54, Presidential Decree No. 618 of 21  December  2017 on the Main Directions of the 
State Policy on the Development of Competition, the 2018 Road Map to promote competition in the 
Russian economy and move certain areas of natural  monopolies from a state of natural monopoly 
to a competitive market for 2018 -2055 (see also Section 3 .3.4), and the 2019 Strategy for the 
Development of Competition and Anti -Trust Regulation in the Russian  Federation for the Period up 
to 2030.  
2.28.   The Russian  Federation has continued to implement reforms aimed at improving the business 
environment, as reflected in various internationally comparable indicators, but boosting growth will 
require a more structural approach, according to the IMF.56 According to the latest Doing Business 
 
49 Armenia, Belarus, Kazakhstan, the Kyrgyz  Republic, the Republic of Moldova, the Russian  Federation, 
Tajikistan, and Ukraine are parties to the treaty, signe d on 18 October 2011. See WTO documents 
WT/REG343/N/1, 7 June 2013; WT/REG343/N/2, 18 March 2015; and WT/REG343/N/3, 8 June 2018.  
50 The Common Economic Zone Agreement is a framework agreement and does not introduce any kind 
of preferential treatment among its parties. See WTO document WT/REG358/1, 13 July 2018.  
51 WTO document WT/COMTD/PTA1/N/1, 16  July 2019; and the official websites it links to.  
52 WTO document G/RO/LDC/N/RUS/2, 22 January 2019.  
53 Government Decree No.  316 of 15 April 2014 on Approval of th e State Programme for Economic 
Development and Innovation Economy.  
54 They relate to issues such as land registration and obtaining a building permit, reforming processes of 
state supervision and control including shifting to a risk -based approach (see also  below), support for SMEs, 
connecting to utilities, improving mechanisms for regional investor protection, communication, and investment 
attraction. Government Order on Approval of Target Models for Simplifying Business Procedures and Increasing 
the Invest ment Attractiveness of the Constituent Entities of the Russian Federation.  
55 Government Decree No.  1697-r of 16 August 2018 on Approval of the Action Plan ("Road Map") for 
the Development of Competition in the Sectors of the Economy of the Russian  Federat ion and the Transition of 
Certain Spheres of Natural Monopolies from the State of Natural Monopoly to the State of a Competitive Market 
for 2018 -2020.  
56 IMF (2021), Russian  Federation: Staff Report for the 2020 Article  IV Consultation , IMF Country Report 
No. 21/36.  WT/TPR/S/416  • Russian Federation  
- 35 - 
report published before "data irregularities" were identified and the series was discontinued57, the 
Russian  Federation had improved its Ease of Doing Business Score from 74.1% of the top performers 
in 2016 to 78.2% in 2020. Also, the Russian  Federation's rankings in the World Economic Forum's 
(WEF) Global Competitiveness Index remained at 43 between 2017 and 2019, despite improvements 
in the overall score as other countries also undertook reforms.58 While the IMF in 2017 stressed the 
importance of simplifying business operating and licensing standards to encourage international 
participation in the domestic economy59, according to the 2019 Enterprise Survey the time required 
to obtain an operating licence is shorter t han in other upper -middle income countries, and had fallen 
significantly since 2012.60 However, given methodological design requirements, most international 
indicators of the business environment focus on narrowly defined activities that can be potentially  
targeted with narrow reforms without necessarily improving the broader and more general business 
environment. To reduce the bureaucratic burden businesses face, the authorities introduced a 
"regulatory guillotine" mechanism in 2019 (see below ), going beyo nd indicator -based reforms.  
2.29.   Efforts to improve how the Government manages the economy are of great importance to the 
business environment and are reflected in indicators, which at the same time demonstrate room for 
further work. For example, according to t he World Bank's Worldwide Governance Indicators, 
government effectiveness in the Russian  Federation improved between 2016 and 2019, but more 
than 40% of countries continue to outperform the Russian  Federation, while the country continues 
to rank below the 40th percentile in "regulatory quality".61  
2.30.   Overall, the Russian  Federation continues to lag in key areas affecting the overall investment 
regime, such as legal independence and corruption. According to the WEF's Global Competitiveness 
Index, business exec utives in the Russian  Federation perceive increasing challenges regarding the 
independence of the legal system over the reporting period62, while the Russian  Federation ranked 
in the bottom quartile of the distribution for the rule of law in 2019 in the Wo rldwide Governance 
Indicators.63 The IMF in 2017 stressed the need to strengthen property rights and contract 
enforcement to reassure investors.64 And perceptions about the prevalence of corruption in the 
Russian  Federation remain high, according to the Tr ansparency International 2020 Corruption 
Perception Index (rank 129 of 180), the WEF's 2019 Global Competitiveness Index (rank 116 of 
141), and the World Bank's Worldwide Governance Indicators on the control of corruption (in the 
bottom quartile of the dis tribution).65 To combat corruption, in 2018 the Government amended 
 
57 World Bank, World Bank Group to Discontinue Doing Business Report , 16 September 2021. Viewed 
at: https://www.worldbank.org/en/news/statement/2021/09/16/world -bank-group -to-discontinue -doing -
business -report . 
58 Methodological changes to the index were introduced with the 2018 version, making it challenging to 
compare scores over the whole period, but th e score of the Russian  Federation increased from 2017 to 2018, 
and from 2018 to 2019. Reports viewed at: http://reports.weforum.org/ .  
59 IMF Country Focus, Russia: Five Reforms to Increase Productivity, Diversify  Growth . Viewed at: 
https://www.imf.org/en/News/Articles/2017/07/05/na070717 -russia -five-reforms -to-increase -productivity -
diversify -growth . 
60 World Bank Enterprise Surveys, Country Highlights: Russian  Federation 2012 . Viewed at: 
https://www.enterprises urveys.org/content/dam/enterprisesurveys/documents/country -highlights/Russia -
2012.pdf ; and Russian  Federation 2019: Country Profile . Viewed at: 
https://www.enterprisesurveys.org/content/dam/enterprisesurveys/documents/country/Russian -Fedaration -
2019.pdf . 
61 World Bank, Worldwide Governance Indicators . Viewed at: 
https://databank.worldbank.org/source/worldwide -governance -indicators . Government Effectiveness measures 
perceptions related to the quality of policy formulation and implementation, public and civil service, its degree 
of independence from pol itical pressures, and government commitment to such policies. Regulatory Quality 
measures "perceptions of the ability of the Government to formulate and implement sound policies and 
regulations that permit and promote private sector development".  
62 The WEF 's Global Competitiveness Index indicates a deteriorating perception of the situation despite a 
small increase in the ranking for judicial independence. Viewed at: www.weforum.org . 
63 World Bank, Worldwide Governance Indicators . Viewed at: 
https://databank.worldbank.org/source/worldwide -governance -indicators . The "rule of law" captures 
"perceptions of the extent to which ag ents have confidence in and abide by the rules of society, and in 
particular the quality of contract enforcement, property rights, the police, and the courts, as well as the 
likelihood of crime and violence".  
64 IMF Country Focus, Russia: Five Reforms to In crease Productivity, Diversify Growth . Viewed at: 
https://www.imf.org/en/News/Articles/2017/07/05/na070717 -russia -five-reforms -to-increase -productivity -
diversify -growth . 
65 Transparency International, Corruption Perceptions Index . Viewed at: 
https://www.transparency.org/en/cpi/2020/index/rus ; WEF, Global Competitiveness Report 2019 . Viewed at: WT/TPR/S/416  • Russian Federation  
- 36 - 
Federal Law No. 273 -FZ of 25  December  2008 on Combatting Corruption to create a publicly 
available registry of persons dismissed from office because of a loss of confidence due to (perceive d) 
corruption, and strengthen the rules preventing conflicts of interests.  
2.31.   The Civil Code outlines the organizational and legal forms and legal capacities of legal entities. 
Businesses as profit organizations can take the form of partnerships and companies , peasant 
(farmer) farms, economic cooperatives and production cooperatives, and state and municipal unitary 
enterprises. State Corporations, such as Vnesheconombank (Section 3 .2.4) or Rostec 
(Section  4.3.2.4 ), are considered non -profit organizations. Comm ercial juridical persons have to be  
registered with the Federal Tax Service under the Ministry of Finance and be included in the Unified 
State Register, with most of the information provided during registration publicly available therein 
(including informa tion on licences issued to juridical persons).66 
2.32.   Entities can register by submitting hard copies or soft copies signed by a "qualified electronic 
signature", the most secure of electronic signatures available in the Russian  Federation. Firms are 
obliged to  update changes to recorded information with the Federal Tax Service maintaining the 
Register. Foreign and Russian juridical persons can also create branches (except in certain sectors) 
or representative offices. Insolvency is regulated by Federal Law No.  127-FZ of 26  October  2002 on 
Insolvency (Bankruptcy). It was amended more than 40 times over the review period, inter alia , 
increasing protection of the rights of citizens participating in shared -equity construction and 
establishing a mechanism for out -of-court bankruptcy for citizens.  
2.33.   Business taxes include a profit tax of 20% and other taxes such as land or property taxes or 
stamp duties. A number of tax incentives are also in place, complemented by various sector -specific 
support programmes (Section 3.3. 1). Tax incentives include investment tax credits for R&D, regional 
tax incentives, and other incentives for investors in geographically demarcated areas, such as special 
economic zones, other areas, or freeports, that all aim to attract domestic and foreign investment, 
often in high -tech sectors. All envision a range of tax incentives and in some cases provide relaxed 
rules on immigration (Section 3.2 .6). 
2.34.   A network of agencies and institutions working on investment promotion is in place at the 
federal and regional levels, but there is no institution at the national level coordinating functions 
across different agencies, according to the World Bank.67 Among them is the Foreign Investment 
Advisory Council (FIAC), which was founded in 1994 by the Government an d foreign companies with 
the objective of improving the business environment in the Russian  Federation. The FIAC is chaired 
by the Prime Minister, and international companies and government agencies identify and agree on 
specific actions in line with emerg ing priorities. Currently, some of the seven identified priorities 
relate to localization, the improvement of customs law and administration, and the development of 
technical regulations.68 
2.4.1   Regulatory framework  
2.35.   Over the reporting period, there have been im portant changes to the legal framework for 
domestic and foreign investors operating in the Russian  Federation through amended laws and 
regulations. There are few explicit restrictions for foreign investors in general, but foreign 
investments in key strateg ic sectors69 require prior approval by the Government Commission on 
Monitoring Foreign Investment. The list of such "strategic sectors" was expanded in 2017, and 
citizens of the Russian  Federation with multiple citizenships have also fallen under this law since 
2018.70 Over the reporting period, nearly 300 applications were received by the authorities. Among 
 
http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2 019.pdf ; and World Bank, Worldwide 
Governance Indicators . Viewed at: https://databank.worldbank.org/source/worldwide -governance -indicators .  
66 Federal Law No.  129-FZ of 8  August  2001 on State Registration of Legal Entities and Individual 
Entrepreneurs (as amended).  
67 World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
Chapter 4, p.  171. 
68 For more information, see https://fiac.ru/ . 
69 These sectors of "strategic importance for national defence and state security" are defined in Federal 
Law No.  57-FZ of 29 April 2008 on the Procedure for Making Foreign Investments in Business Entities of 
Strategic Importance for Ensuring the National Defence and State Security (as amended).  
70 Federal Law No.  57-FZ was amended by Federal Law No.  165-FZ of 18 July 2017 on Amending 
Article  6 of the Federal Law on Foreign Investments in the Russian  Federation and the Federal Law on the 
Procedure for Making F oreign Investments in Business Entities of Strategic Importance for Ensuring the WT/TPR/S/416  • Russian Federation  
- 37 - 
the around 100 applications considered where decisions were undertaken during the review period, 
nearly 90% received such prior approval according to d ata provided by the authorities.  
2.36.   A "regulatory guillotine" mechanism was introduced in 2019 under Presidential Instruction 
No. Pr-294 of 26  February  2019, aiming to review and abolish all sectoral regulatory acts and replace 
them with regulations containin g updated requirements and using risk -based principles. Significant 
work has been undertaken in each of the areas covered by 43 working groups. According to the 
authorities, 12,300 regulations containing mandatory requirements (more than 30% of mandatory 
requirements under revision) were abolished and 447 regulations adopted instead, often by 
regrouping various requirements into more comprehensive regulations.71 The authorities also 
consolidated key regulatory principles in Federal Law No.  248-FZ of 31  July 2020 on State Control 
(Supervision) and Municipal Control in Russian Federation and Federal Law No.  247-FZ of 
31 July 2020 on Mandatory Requirements in the Russian Federation. The Government has also 
launched a "regulatory sandbox" mechanism to facilitate  digital innovation.72 
2.37.   In 2017, the Government introduced a general foreign investment screening mechanism by 
amending the Foreign Investment Law (Federal Law No.  160-FZ of 9  July 1999 on Foreign 
Investment in the Russian  Federation).73 In 2020, the Russia n Federation expanded FDI screening 
procedures for the acquisitions of voting stakes in strategic enterprises by foreign investors to also 
include temporary acquisitions.74 Some ownership restrictions also apply to the banking and 
insurance sectors as a wh ole (Section 4 .3.1), the aviation sector, mass media, and audiovisual 
services; foreigners cannot own land in border and certain other areas, and some government 
support programmes are open only to Russian companies . There are no restrictions on the use of  
revenues and profits. There are also no restrictions for Russian citizens wanting to invest abroad.  
2.38.   Restrictions on FDI remain relatively high overall, according to the OECD's FDI Regulatory 
Restrictiveness Index, and they have increased since 2016. While  measuring statutory restrictions 
on FDI across 22 economic sectors, it does not capture all effective restrictions (the Index does not 
assess the implementation of regulations, or restrictions arising from state ownership).75 Across the 
four dimensions of  the Index (foreign equity limitations, screening or approval mechanisms, 
restrictions on the employment of foreigners as key personnel, and operational restrictions 
(branching, capital repatriation, or land ownership)), the restrictions in the Russian  Federation were 
among the highest of all OECD and other countries covered by the Index in 2019. Screening and 
approval measures (whose restrictiveness increased significantly between 2016 and 2019, as stated 
above), as well as equity restrictions, generated t he largest restrictions. Potential investors in sectors 
related to transport, media, and financial services faced the largest restrictions.  
2.39.   The SPIC (Special Investment Contract) was introduced in 2015 pursuant to the Industrial 
Policy Law. Under the previ ous legislation, 45 SPICs have been concluded in the following sectors: 
automotive industry (14); chemicals (8); pharmaceutics/medicine (7); machine building (8); 
agriculture and special machine building (2); forestry machine building (1); metallurgy/mater ials 
(4) and aircraft (1). The relevant legislative provisions were changed in 2019. The amended 
legislation took effect in 2019 and implementing rules were adopted in 2020. As provided for in the 
amended legislation, a SPIC is an agreement between an inve stor and the State under which: (i)  the 
investor undertakes to implement an investment project with the aim to introduce or develop and 
implement a modern technology that will enable it to master mass production of globally competitive 
industrial products in the Russian Federation; and (ii) the State undertakes to ensure the stability 
of the conditions for conducting business activities and to apply incentives to stimulate industrial 
activities provided for in federal or regional legislation. A "modern tech nology" in this connection is 
 
National Defen ce and State Security, adding in particular activities related to the use of atomic energy and 
operators of electronic platforms for the public procurement of go ods and services.  
71 Analytical Center for the Government of the Russian  Federation, Regulatory Guillotine Mechanism 
Effect Should Be Extended , 9 November 2020. Viewed at: https://ac.gov.ru/en/news/page/regulatory -
guillotine -mechanism -effect -should -be-extended -26684 . An overview of the work undertaken by the working 
groups can be found here: https://knd. ac.gov.ru/group/ . 
72 Federal Law No. 258 -FZ of 31 July 2020 on Experimental Legal Regimes in the Field of Digital 
Innovation in the Russian Federation."  
73 UNCTAD Investment Policy Hub, Russian  Federation: New Amendments to Foreign Investment Law 
Introduce a  General FDI Screening , 30 July 2017.  
74 UNCTAD (2021), Investment Policy Monitor , Issue 24.  
75 OECD, FDI Regulatory Restrictiveness Index. Viewed at: 
https://www.oecd.org/investment/fdiindex.htm .  WT/TPR/S/416  • Russian Federation  
- 38 - 
one of more than 600 technologies included in a list of modern technologies approved by the 
Government and issued in November 2020. A SPIC is concluded for a period not exceeding 15 or 
20 years, depending upon the amount of th e investments involved. There is no minimum amount of 
investment required, but the projected investments during the implementation of the SPIC may not 
be less than the total amount of expenditures and revenues lost by the State as a consequence of 
the gran ting of the industry -specific incentives to the SPIC. One of the advantages conferred by the 
SPIC is the expedited and simplified procedure for obtaining the status of a product manufactured 
in the Russian Federation in that confirmation of the "made in th e Russian Federation" status is 
possible from the date of the SPIC while the investor agrees to meet the applicable localization 
requirements within three years.  
2.40.   In 2020, a new Federal Law to protect and encourage investment was approved, introducing 
Capital Investment Promotion and Protection Agreements. These are new instruments of investment 
promotion between government entities at the federal and/or state level and private enterprises 
either following government initiative or unsolicited proposals by pr ivate enterprises.76 Such firm -
specific investment promotion and protection agreements can be concluded for investments in nearly 
all economic sectors with certain exceptions77 and allow for the reimbursement of some investment 
costs incurred by private en terprises for investment in infrastructure (broadly defined), and also 
provide certainty regarding the regulatory framework affecting the investment for a period of 6 to 
20 years depending on the size of the investment (a "stabilization clause"), while set ting certain 
targets that companies agree to achieve and that are monitored. Investment agreements are 
transferable.  
2.4.2   International cooperation  
2.41.   Over the reporting period, the Russian  Federation concluded three additional bilateral 
investment treaties (BITs)  with the Islamic Republic of Iran, Morocco, and Palestine; a number of 
new BITs entered into force; and the BIT with India ended in 2017, bringing the total of BITs in force 
to 62 according to UNCTAD (65 according to the authorities). They are complemente d by six Treaties 
with Investment Provisions (including the EAEU).78 The Russian  Federation also concluded additional 
double taxation agreements (DTAs) with Hong  Kong, China; Ecuador; and Japan, and amended four 
(including most recently Cyprus, Malta, and Luxembourg), bringing the total number of DTAs to 83, 
according to the authorities. The Russian Federation also adhered to the Multilateral Convention to 
Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, entering into 
force in 2019. In 2016, the Russian  Federation approved new rules governing the prioritization and 
negotiation of international agreements on the promotion and protection of investments.  
2.42.   The Russian  Federation is a 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). It has signed, but not ratified, the ICSID (International Centre for 
Settlement of Investment Dispu tes) Convention. Since 2016, there have been five investment 
disputes, four under the Russian  Federation -Ukraine BIT, and one under the Greece -
Russian  Federation BIT.79 
2.5  E-commerce  
2.43.   The e -commerce sector is relatively fragmented, with the two largest compani es (Wildberries 
and Ozon) jointly accounting for a little more than 20% of the market80, but turnover increased 
significantly over the review period to reach RUB  3 trillion in 2020.81 A small share of these 
 
76 Federal Law No.  69-FZ of 1 April 2020 on the Protection and Encouragement of Investment in the 
Russian  Federation.  
77 For example, gambling, tobacco and alcohol production, oil and gas, wholesale and retail, regulated 
financial services, or construction  (Article  6). 
78 UNCTAD Investment Policy Hub, International Investment Agreements Navigator: Russian  Federation . 
Viewed at: https://inv estmentpolicy.unctad.org/international -investment -agreements/countries/175/russian -
federation .  
79 UNCTAD Investment Policy Hub. Investment Dispute Settlement Navigator: Russian  Federation .  
80 Anna Rzhevkina and Alexander Marrow, "COVID -19 Crisis: A Shot in  the Arm for Russian 
E-commerce", Reuters , 19 November 2020. Viewed at: https://www.reuters.com/article/us -russia -ecommerce -
focus -idUSKBN27Z10Z . 
81 Association of Intern et Trade Companies (2020), E-commerce in 2020 . Viewed at: 
https://akit.ru/internet -torgovlya -v-rossii-2020/ . WT/TPR/S/416  • Russian Federation  
- 39 - 
transactions are exported (around RUB  90 billion in 2020). Alibaba is active in the market as a joint 
venture with a Russian company, while Amazon, as another major player, has not entered the 
market although options to ship goods directly or via intermediaries to the Russian  Federation exist.  
2.44.   Key conditions for the development of electronic commerce, such as (online) consumer 
protection laws, data privacy, and electronic signatures are in place. Consumers generally have the 
right to cancel orders and return purchases within 15 days. While produce rs can determine the 
duration of warranties they grant, consumers can generally file complaints within a two -year period 
in case of deficiencies unless a shorter warranty time has been determined.82 Companies are required 
to provide accurate information to  consumers and need to be identifiable by them. In terms of data 
protection83, companies have to keep private data confidential, are required to register with 
Roskomnadzor before being allowed to process data, and require consent (which can be withdrawn) 
from individuals whose data will be processed, with some exceptions spelled out in the law. Electronic 
messages to promote products, services, or political campaigning require prior consent from the 
recipients. Both handwritten and electronic signatures hav e validity for all commercial contracts, 
with varying levels of certification of the signatory in existence.84 In January 2021, new rules for 
retail entered into force, basically reflecting a number of earlier documents and introducing new 
elements relevan t for e -commerce, such as the requirement for sellers to issue order confirmations, 
simpler procedures for delivering such goods remotely, or rules on automated sales.85 The 
Russian  Federation participates in the Joint Statement Initiative on e -commerce.  
2.45.   Key barriers to the sector's development as of 2017 relate to slow package delivery, although 
there are reports that the situation has improved significantly as companies adjusted to COVID -19- 
related shopping patterns.86 The courier service market is relat ively concentrated, with the three 
largest players dominating the market although major international players are also active.87 Most 
online purchases are shipped with the Russian Postal service or EMS, while courier services such as 
DHL and UPS also opera te. The de minimis  threshold for small cross -border shipments was set at 
EUR 500 and/or 25 kilograms on 1 January 2019 and was set to be further decreased to EUR  200 
on 1 January 2020.88 While in the past, most shipments were paid with cash -on-delivery, th e share 
of online payments is said to have increased significantly over the past years.  
  
 
82 See Law No.  2300-I of 7 February 1992 on Protection of Consumer Rights (as amended).  
83 Federal Law No.  152-FZ of 27 July 2006 on Personal Data (as amended).  
84 Federal Law No.  63-FZ of 6 April 2011 on Electronic Signature.  
85 Rospotrebnadzor (2020), On the New Rules for the Sale of Goods at Retail . Viewed at: 
https://www.rospotrebnadzor.ru/about/info/news/news_details.php?ELEMENT_ID=16500 . 
86 UNIDO (2017), Nationa l Report on E -Commerce Development in Russia . Viewed at: 
https://www.unido.org/api/opentext/documents/download/9920890/unido -file-9920890 . 
87 Mordor Intelligenc e (2020), Russia Courier, Express, and Parcel (CEP) Market – Growth, Trends, 
Covid -19 Impact, and Forecasts (2021 -26). Viewed at: https://www.mordo rintelligence.com/industry -
reports/russia -courier -express -and-parcel -market . 
88 WTO document INF/MSME/W/4, 14 June 2019.  WT/TPR/S/416  • Russian Federation  
- 40 - 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  As a member of the Eurasian Economic Union (EAEU) and its predecessor, the Customs Union 
with Belarus and Kazakhstan, the Russian  Federation applies common customs legislation, as well 
as national legal instruments that govern aspects not regulated by the former. During the review 
period, changes to the legal framework took place at both the EAEU and the national levels.  
3.2.  In effect from 1  January  2018, the EAEU Customs Code replaced the unified Customs Code and 
other legal instruments of the Customs Union, most of which had be en in force since 2010. It brought 
about various innovations aimed at streamlining customs procedures, including through electronic 
means, and implementing key provisions of the WTO  Agreement on Trade Facilitation.1 
3.3.  The principal customs legislation was u pdated following the EAEU Customs Code's entry into 
force. Federal Law No.  311-FZ of 27 November 2010 on Customs Regulation in the 
Russian  Federation was replaced by Federal Law No.  289-FZ of 3 August 2018 on Customs 
Regulation in the Russian  Federation an d on Amending Certain Legislative Acts of the 
Russian  Federation.2 Federal Law No.  289-FZ of 3 August 2018 regulates matters that fall under 
national competence, including the advance payment of duties, fees, and charges, as well as 
procedures for review and appeal of customs decisions. The Law also sets a 60 -day timeframe for 
issuing advance rulings on classification and origin, whereas the maximum period provided for in 
the EAEU Customs Code is 90 days.  
3.4.  As at the time of the previous Review, there are no  general activity registration or licensing 
prerequisites for engaging in cross -border trade, although specific requirements continue to apply 
to controlled goods. Russian tax residency is required for declaring commercial imports to the Federal 
Customs Se rvice (FCS). Using the services of professional customs brokers remains optional. In 
March 2021 , there were 587 licensed customs brokers, up from some 400 in March 2016.3 According 
to the authorities, customs brokers compete freely; their fees are not reg ulated, and there are no 
geographic restrictions on their operations within the Russian  Federation.4 
3.5.  The EAEU  Customs Code provides for the pre -arrival notification of third -country imports, 
except for those shipped by pipelines and electricity transmission lines. The notifications' content 
and format are determined by the EAEU Commission, depending on the means of transport used.5 
In general, the customs authorities must be notified at least two hours before the goods' arrival at 
the EAEU's border. For third -country imports shipped by water transport, the minimum period is six 
hours. The stated purpose of pre -arrival notifications is to enable the customs authorities to assess 
risks and initiate corresponding control procedures. Pre -arrival notifications submitted in the form of 
an electronic document may be used as transit declarations.6 
3.6.  The Russian  Federation maintains a risk management system for the processing of import and 
export declarations. The risk assessment methodology is largely domestically determined, although 
recommendations for implementation of certain risk profiles may be elaborated at the EAEU level. 
Commercial imports deemed to be of low risk are cleared solely on the basis of the customs 
declaration and are released, as a rule, within four hours of the declaration's registration. The 
customs declarations of consignments flagged by the risk man agement system for documentary 
and/or physical checks must be accompanied by the relevant commercial and transport documents. 
 
1 For a summary of the main provisions of the new EAEU Customs Code, see WTO document 
WT/REG358/1, 13 July 2018, paras.  3.127 -3.130.  
2 WTO documents G/TFA/N/RUS/1, 1 March 2019;  and G/VAL/N/1/RUS/4, 23 May 2019.  
3 Customs brokers are required to have civil liability insurance with coverage of at least RUB  20 million 
and to make a security deposit (RUB  5 million for brokers not involved i n declaring exports subject to export 
duties, EUR  500,000 otherwise).  
4 Common rules for the registration of customs brokers are set out in the EAEU Customs Code and 
Eurasian Economic Commission (EEC) Collegium Decision No.  271 of 11 December 2012.  
5 EEC Collegium Decisions No.  51 of 10 April 2018, No.  56 and No.  57 of 17 April 2018, and No.  62 of 
24 April 2018.  
6 EEC Collegium Decision No.  214 of 25 December 2018.  WT/TPR/S/416  • Russian Federation  
- 41 - 
Where applicable, the supporting documentation must also include an import licence and/or permit,  
a certificate of origin, or a sa nitary and phytosanitary (SPS) certificate . 
3.7.  The authorities indicate that work on the development of a national single -window system is 
ongoing. It is guided by an action plan adopted by the Supreme Eurasian Economic Council in 2015, 
a resolution adopted b y the Government in 2017, and a reference model description approved by 
the Eurasian Intergovernmental Council in 2019.7 Elements of the future single window have been 
consolidated in a Seaport Portal, which facilitates the supervision of trade flows goin g through the 
Russian  Federation's sea checkpoints.  
3.8.  The EAEU Customs Code upgraded the pre -existing scheme for simplified customs formalities 
into a Union -wide authorized economic operator (AEO) scheme. Open to both importers and 
exporters, the new scheme provides for three types of AEO status with specific eligibility 
requirements and advantages granted.8 As of 17 May 2021, 164 legal persons were inscribed in the 
AEO register.  
3.9.  The World Bank Logistics Performance Index for 2018 ranked the Russian  Federati on 75th of 
160 economies for logistics generally and 97th for customs specifically. The corresponding rankings 
for 2014 were 90th and 133rd, respectively.9 The authorities indicate that the FCS has been 
elaborating annual action plans aimed at streamlinin g customs formalities and thereby further 
improving the Russian  Federation's rankings related to cross -border trade. In addition, the FCS has 
been conducting time release studies in accordance with the methodology established by the World 
Customs Organizat ion. According to the results of a December 2020 study, the maximum release 
times for non -risky consignments were 78 minutes for imports (12 minutes for seaborne imports) 
and 40 minutes for exports.  
3.10.   During the review period, the legal framework for customs  valuation underwent minor 
amendments upon the entry into force of the EAEU Customs Code, as well as through the adoption 
of several legal instruments by the Collegium of the Eurasian Economic Commission (EEC). 
Consequently, changes were also made to the n ational legislation, including with regard to the 
customs valuation of exports.10 The Russian  Federation provided updated notifications and a new 
checklist of issues  to the Committee on Customs Valuation in 2019.11 
3.11.   The authorities affirm that the transacti on value of the goods is mostly used for customs 
valuation purposes (88% of all cases). Whenever this method cannot be used, recourse to other 
methods follows the hierarchy set out in the WTO Customs Valuation Agreement. The dutiable value 
of imports is th e sum of the purchase cost and the expenses incurred up to the point of entry into 
the customs territory of the EAEU. Consignments can be released under bond prior to the final 
determination of their customs value. The FCS does not provide advance rulings on customs 
valuation.  
3.12.   The FCS has concluded cooperation agreements with the customs authorities of several 
foreign jurisdictions. These agreements typically contain provisions on the exchange of data 
regarding consignments and transport vehicles, on the se tting up of a "simplified customs corridor", 
or on transit traffic.  
3.13.   While the right to challenge a decision, action, or inaction of the customs authorities is 
stipulated in the EAEU Customs Code, the exact manner and timeframes are set out in the national  
legislation of each member State. In case of disagreement with FCS decisions, importers must first 
lodge a request for reconsideration at the customs office where the decision was made. Subsequent 
appeals may be made to the superior customs administration  centre, and then to the courts. 
 
7 Supreme Eurasian Economic Council Decision No.  19 of 8 May 2015, Government Resolutio n No.  561 
of 12 May 2017, and Eurasian Intergovernmental Council Decision No.  6 of 30 April 2019.  
8 WTO document WT/REG358/1, 13 July 2018, para.  3.129(j).  
9 World Bank, Global Rankings . Viewed at: https://lpi.worldbank.org/international/global .  
10 Federal Law No.  289-FZ of 3 August 2018; and Government Resolution No.  1694 of 
16 December  2019.  
11 WTO documents G/VAL/N/1/RUS/4 and G/VAL/N/2/RUS/2, 23 May 2019; G/VAL/N/1/RUS/4/Add.1, 
14 June 2019 ; and G/VAL/N/1/RUS/5, 16 October 2019.  WT/TPR/S/416  • Russian Federation  
- 42 - 
According to the authorities, during 2016 -20 most appeals related to decisions on the goods' 
classification and customs valuation, as well as to prosecutions of administrative offences.  
3.1.2   Rules of origin  
3.14.   Common rules of origin for goods imported into the territory of the EAEU govern MFN and 
certain preferential trade flows (imports under the Union's Common System of Tariff Preferences 
(CSTP) and under the free trade agreements (FTAs) concluded by the EAEU) . The 
Russian  Federation's trade under FTAs concluded before 1 January 2015 remains governed by the 
preferential rules of origin stipulated in each agreement.12  
3.15.   The EAEU non -preferential rules of origin apply to MFN imports and are used for the purposes 
specified in Article  37 of the Treaty on the Eurasian Economic Union (EAEU Treaty), including 
non-tariff measures, trade remedies, marking requirements, public procurement, and trade 
statistics. As from 12 January 2019, origin is conferred on the basis of a  list of criteria for wholly 
obtained products, a change in HS classification at the 4 -digit level, or a maximum threshold for 
non-originating inputs (50% of value -added).13 Basic operations, such as preparation for sale, 
labelling, freezing, colouring, or  packaging, do not confer origin. A certificate of origin is required for 
consignments worth more than USD  150 that may be subject to trade remedies depending on their 
origin.  
3.16.   To qualify for  preferential treatment under the CSTP, imported goods must be eit her wholly 
obtained or sufficiently processed in one of the eligible developing countries and least -developed 
countries (LDCs). The criteria for conferring wholly obtained status are almost the same as under 
the EAEU's non -preferential rules of origin. A t imetable for the gradual differentiation of the sufficient 
processing threshold (the admissible share of third -country inputs in the exported product's value) 
for exports from developing countries and LDCs became effective on 16 January 2019.14 Whereas 
the threshold for developing countries remains at 50%, the threshold for LDCs is set at 55% between 
1 January  2020 and 31 December 2024, and at 60% from 1 January 2025 onwards.  
3.17.   In general, importers claiming CSTP treatment must submit the original certificate  of origin 
(Form A) during customs clearance. This requirement was temporarily relaxed in response to the 
COVID -19 pandemic.15 The origin of imports whose customs value does not exceed EUR  5,000 may 
be attested by a declaration of origin.  
3.1.3   Tariffs  
3.18.   As a memb er of the EAEU, the Russian  Federation applies, with some exceptions, its unified 
customs tariff (UCT) and receives a share (85.065% as from 1 January 2020) of the revenue from 
customs duties and trade remedies levied on imports from third countries.16 
3.19.   During 2016 -19, customs duties and levies on international trade ranged between 14% and 
17% of annual tax revenue. In addition, value added tax (VAT) and excise taxes on imports 
accounted for 11% to 12% annually. The relative importance of customs duties a nd charges on 
imports in tax receipts was generally in decline (Table  3.1). 
 
12 WTO documents G/RO/N/207, 2 November 2020; G/RO/N/194, 18 February 2020; G/RO/N/179 and 
G/RO/LDC/N/RUS/2, 22 January 2019; G/RO/LDC/N/RUS/1, 18 September 2017; G/RO/N/162, 21 July 2017; 
G/RO/N/106/Corr.1, 2 July 2015; G/RO/N/115, 11 April 2014; and G/RO/N/84, 27 September 2012.  Pursuant 
to Federal Law No.  289-FZ of 3 August 2018, the FCS is to issue advance rulings on the origin of imports within 
60 days of receipt of the respective appli cation.  
13 EEC Council Decision No.  49 of 13 July 2018, amended by EEC Council Decision No.  57 of 
10 July 2020, with effect from 1 January 2021.  
14 EEC Council Decision No.  60 of 14 June 2018.  
15 EEC Council Decision No.  36 of 3 April 2020.  
16 Pursuant to the EAEU Treaty (Annex 31), the Russian  Federation applies higher -than-UCT rates on 
certain parts used in the industrial assembly of motor vehicles.  WT/TPR/S/416  • Russian Federation  
- 43 - 
Table 3.1 Tax revenue, 2016 -19 
(RUB billion)   
2016  2017  2018  2019  
Total tax revenue  15,447  17,633  21,303  21,937  
Taxes on income, profits, and capital gains  5,412  6,888  8,070  8,761  
Taxes on property  998 1,105  1,270  1,186  
Taxes on goods and services  6,402  7,055  8,263  8,961  
VAT 4,793  5,272  6,164  7,077  
Imports  1,763  1,901  2,256  2,613  
Domestic  3,030  3,371  3,909  4,464  
Excise tax  1,414  1,581  1,589  1,336  
Imports  59 76 95 89 
Domestic  1,355  1,505  1,494  1,247  
Other  196 203 509 548 
Taxes on international trade and transactions  2,635  2,585  3,700  3,029  
Duties and charges on imports  572 588 681 740 
Import duties  486 502 574 611 
Trade remedies  4 4 5 7 
Customs fees  17 18 20 20 
Customs taxes (natural persons)  6 7 16 25 
Export taxes  2,046  1,979  3,000  2,289  
Other taxes  0 0 0 1 
Memo:      
Total customs revenue  4,456  4,562  6,051  5,731  
Source:  WTO Secretariat calculations, based on information provided by the authorities.  
3.20.   With regard to imports from third countries, the remit of the EEC includes: (i)  setting UCT and 
CSTP rates, as well as rates under preferential trade agreements conclud ed by the EAEU; 
(ii) regulating tariff exemptions; and (iii)  setting tariff rate quotas (including the administration 
method) and allocating quota volumes among member States. EEC decisions on UCT rates are 
normally taken by a two -thirds qualified majority  vote, except for sensitive products on which 
consensus is required.  
3.21.   The 2021 UCT is based on the 2017 version of the Harmonized Commodity Description and 
Coding System (HS), and comprises 12,286 lines at the 10 -digit level. Approximately 86% of all 
tariff lines, including duty -free ones, have ad valorem  rates (Table  3.2). Most of the remaining lines 
have mixed duties in the form of an ad valorem rate with a minimum specific duty expressed in 
euros per unit (except sugar (HS 1701) for which it is expressed in US dollars).17 There are no 
seasonal tariffs.  
Table 3.2 Structure of the MFN tariff, 2016 and 2021  
 
MFN applied  Final 
bounda  
2016  2021  
Bound tariff lines (% of all tariff lines)  n.a. n.a. 100.0  
Simple average rate  8.3 7.9 8.4 
WTO agricultural products  14.6 13.4 13.4 
WTO non -agricultural products  6.5 6.3 7.1 
Duty-free tariff lines (% of all tariff lines)  16.0 16.0 3.8 
Simple average of dutiable lines only  9.9 9.4 8.7 
Tariff quotas (% of all tariff lines)  0.4b 0.2 1.0 
Non-ad valorem  tariffs (% of all tariff lines)  14.8 14.0 12.1 
Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  4.4 4.6 4.4 
Domestic tariff "peaks" (% of all tariff lines)c 3.0 2.4 1.3 
International tariff "peaks" (% of all tariff lines)d 6.4 4.2 3.0 
Nuisance applied rates (% of all tariff lines)e 0.8 1.0 1.4 
Number of lines  
Total 11,561  12,286  11,557  
Ad valorem  rates 9,850  10,567  10,161  
Duty-free lines  1,845  1,968  443 
 
17 The number of distinct ad valorem  duty rates decreased from 77 in 2016 to 31 in 2021. For 
non-ad valorem  duties, the corresponding figures were 284 and 225, respectively.  WT/TPR/S/416  • Russian Federation  
- 44 - 
 
MFN applied  Final 
bounda  
2016  2021  
Non-ad valorem  rates 1,711  1,719  1,396  
Specific  557 609 572 
Compound  0 35 35 
Mixed  1,154  1,075  789 
n.a. Not applicable.  
a Average final bound rates are based on the Russian  Federation's Consolidated Tariff Schedule in 
HS07 nomenclature, whereas average MFN rates are based on the 2016 and 2021 UCT schedules in 
HS12 and HS17 nomenclatures, respectively.  
b Based on WTO document G/AG/N/RUS/12 , 26 April 2016.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. There were only two such peaks in 2012, as temporary rate increases on some 100 lines had 
raised the overall average.  
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and UN International Trade 
Centre T rade Map database.  
3.22.   The simple average applied MFN tariff declined slightly from 8.3% in 2016 to 7.9% in 2021; 
for dutiable lines, the decline was from 9.9% to 9.4%. The phased implementation of the 
Russian  Federation's accession commitments partly explains the reduction in a verage applied rates. 
Some 16% of tariff lines are duty free (same as in 2016) and 1.4% of all lines carry rates of over 
25%, down from 1.9% in 2016 (Chart  3.1). Overall tariff dispersion remains significant, with rates 
(including ad valorem  equivalents (A VEs)) ranging from zero to 284.6% (Table  A3.1). The average 
applied rate on agricultural products (WTO definition) is 13.4% (down from 14.6% in 2016), whereas 
the corresponding average for non -agricultural products stands at 6.3% (down from 6.5% in 2016).  
Chart 3.1 Frequency distribution of MFN tariff rates, 2016 and 2021  
 
Note:  Figures above bars denote the share of the respective tariff schedule's total lines. They do not add to 
100% due to the presence of n on-ad valorem  rates without AVEs. Calculations exclude in -quota 
rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and UN International Trade 
Centre Trade Map database.  
3.23.   Upon acceding to the WTO in 2012, the Russian  Feder ation bound its entire tariff at the 
10-digit level, with bound rate reductions for 7,028 tariff lines (60.8% of all lines) to be phased in 
over periods of one to eight years (Table 3.3). The final bound tariff became effective in 2020. The 
Russian  Federat ion bound "other duties and charges" at zero.  
WT/TPR/S/416  • Russian Federation  
- 45 - 
Table 3.3 Implementation of final bound tariffs, 2012 -20 
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 
2019 11,533  24 0.2 
2020 11,557  0 0.0 
Note:  According to the authorities, the annual reduction of import duties occurred on 1  September, except 
for 77 tariff lines that were subject to a different implementation date. The Russian  Federation's 
Consolidated Tariff Schedule is based on HS07 nomenclatur e. 
Source:  WTO Secretariat calculations, based on the Consolidated Tariff Schedules (CTS) database.  
3.24.   The process of certifying the Russian  Federation's bound tariff schedule to incorporate the 
changes resulting from the introduction of nomenclature versions  HS12 and HS17 has not been 
completed.18 In the absence of a common nomenclature version, comparisons between the 
Russian  Federation's bound and applied tariffs (based on HS07 and HS17, respectively) are prone 
to imprecision.19 With that caveat, the simple  average bound tariff rate (8.4%) is about half a 
percentage point higher than the 2021 average UCT rate. Besides nomenclature differences, this 
gap may be partly due to the greater share of duty-free lines in the UCT  (Table  3.2). 
3.25.   For three tariff lines, t he MFN rates applied in 2021 are somewhat higher than the 
corresponding bindings (by up to 2 percentage points). The Russian  Federation's bindings for seven 
additional tariff lines could potentially be exceeded, because the applied rates match the 
correspo nding ( ad valorem ) bound levels but also have  a minimum specific duty component. For 
one additional tariff line, the MFN rate is ad valorem  (6.5%) while the bound rate is compound (4.5% 
plus EUR  0.02 per kg).  
3.26.   The Russian  Federation's Consolidated Tariff Sc hedule contains four tariff quotas: fresh and 
chilled beef; frozen beef; fresh, chilled or frozen poultry; and whey and modified whey. Tariff quotas 
on pork trimming and fresh, chilled and frozen pork were replaced by an ad valorem  rate of 25% as 
from 1 January 2020. The EEC decision establishing the tariff quota volumes for 2021 (Table  3.4) 
stipulates that allocation among third -country exporters is to be done in accordance with the 
Russian  Federation's national legislation and its  WTO obligations.20  
Table 3.4 Tariff quotas on imports, 2021  
Product 
group  In-quota 
HS codesa TQ 
volume  
('000 
tonnes)b 2021 MFN tariff  Bound tariff  
In-quota rate  Out-of-quota rate  In-
quota 
rate Out-of-
quota 
rate 
Fresh and 
chilled beef  0201100001  
0201202001  
0201203001  
0201205001  
0201209001  
0201300004  40 15% 50%, but not less 
than EUR  1 per 1  kg 15% 55% 
Frozen beef  0202100001  
0202201001  
0202203001  
0202205001  
0202209001  
0202301004  
0202305004  
0202309004  530 15% 50%, but not less 
than EUR  1 per 1  kg 15% 55% 
 
18 WTO document G/MA/W/158/Rev.2, 14 April 2021.  
19 Approximately 10% of tariff lines could not be compared due to nomenclature differences.  
20 EEC Collegium Decision No.  102 of 18 August 2020.  WT/TPR/S/416  • Russian Federation  
- 46 - 
Product 
group  In-quota 
HS codesa TQ 
volume  
('000 
tonnes)b 2021 MFN tariff  Bound tariff  
In-quota rate  Out-of-quota rate  In-
quota 
rate Out-of-
quota 
rate 
Fresh, 
chilled, or 
frozen 
poultry  0207142001  
0207146001  250 25%, but not less 
than EUR  0.2 per 1  kg 80%, but not less 
than EUR  0.7 per 1  kg 25% 80% 
0207141001  100 25% 80% 25% 80% 
0207271001  14 25%, but not less 
than EUR  0.2 per 1  kg 80% 25% 80% 
0207273001  
0207274001  
0207276001  
0207277001  25%, but not less 
than EUR  0.2 per 1  kg 80%, but not less 
than EUR  0.7 per 1  kg 25% 80% 
Whey and 
modified 
whey 0404101201  
0404101601  15 10% 15% 10% 15% 
a HS codes are based on the 2021 applied tariff schedule (HS17).  
b Trigger volumes spanning several HS codes signify cumulative imports under these HS codes.  
Source:  WTO Secretariat calculations, based on the Consolidated Tariff Schedules (CTS) database and 
information provided by the authorities.  
3.27.   As part of the common external trade regime implemented together with its EAEU partners 
(Armenia, Belarus, Kazakhstan, and the Kyrgyz  Republic), the Russian  Federatio n applies tariff 
preferences under the EAEU -Islamic Republic of Iran and EAEU -Viet Nam FTAs, as well as under the 
EAEU's CSTP scheme ( Section  2.3.2). In addition, the Russian  Federation maintains tariff 
preferences under several regional and bilateral agre ements (Chart  3.2 and Table  3.5) that predate 
the entry into force of the EAEU Treaty. Statistics regarding the share of preferential imports in total 
imports, as well as regarding tariff revenue forgone on preferential imports, were not available.  
Chart 3.2 Distribution of applied MFN and preferential tariffs, 2021  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.5 Tariffs under preferential arrangements, 2021  
  Simple average (%)  Duty -free tariff lines (% of total)  
Overall  WTO 
agriculture  WTO non -
agriculture  Overall  WTO 
agriculture  WTO non -
agriculture  
MFN 7.9 13.4 6.3 16.0 7.7 18.3 
Azerbaijan  0 0 0 100 100 100 
CIS 0 0 0 100 100 100 
EAEU  0 0 0 100 100 100 
Georgia  0.0 0.2 0 99.9 99.6 100 
Iran, Islamic Republic of  7.7 13.2 6.2 17.5 9.0 19.9 
0%10%20%30%40%50%60%70%80%90%100%
MFN
Azerbaijan
Georgia
Turkmenistan
Serbia
EAEU
Uzbekistan
Viet Nam
Iran
CIS
GSP
GSP for LDCs Applied MFN duty-free  Dutiable lines (no preferential rate)
 Preferential tariff rates (duty-free)  Preferential tariff rates (reduced rate)Chart 3. [RUS] Distribution of of applied MFN and preferential tariffs, 2021
Source: WTO calculations, based on data provided by the authorities .WT/TPR/S/416  • Russian Federation  
- 47 - 
  Simple average (%)  Duty -free tariff lines (% of total)  
Overall  WTO 
agriculture  WTO non -
agriculture  Overall  WTO 
agriculture  WTO non -
agriculture  
Serbia  1.6 4.8 0.7 91.9 88.4 92.9 
Turkmenistan  0 0 0 100 100 100 
Uzbekistan  0 0 0 100 100 100 
Viet Nam 2.5 6.6 1.3 78.3 64.6 82.2 
CSTP 7.4 12.0 6.1 16.0 7.7 18.3 
CSTP for LDCs  4.7 7.0 4.1 61.2 70.7 58.6 
Note:  If no preferential rate is applied, the corresponding MFN rate is used for the calculations.  
Source:  WTO Secretariat calculations, based on information provided by the authorities.  
3.28.   The EAEU -Viet Nam FTA envisages preferential tariff rate  quotas. The EEC is responsible for 
apportioning quota volumes among member States, as well as for determining the method for 
allocation among importers. No qu ota volume was assigned to the Russian  Federation for 2021.21 
3.1.4   Other charges affecting imports  
3.29.   The EAEU  Customs Code sets out a list of customs payments including import and export 
duties, VAT, excise tax, and customs fees. The Code also stipulates that the amount of customs fees 
charged may not exceed the estimated cost incurred by the customs authorities for the services 
rendered.  
3.30.   The same principle is enshrined in the Russian  Federation's national legislation, which sets 
out customs fees for clearance -related operations, customs escort, and storage.22 The customs fees' 
calculation bases and rates are upda ted periodically by government resolutions. The latest update 
for customs escort and storage fees dates from 2018, whereas customs clearance fees were last 
revised (mostly upwards) in 2020 (Table  3.6). 
Table 3.6 Fees for customs services, 2021  
Fee type and calculation base  Rate (RUB)  
Customs clearance feesa,b 
a) Customs value of consignment:   
 200,000 and less  775 
 from 200,000 to 450,000  1,550  
 from 450,000 to 1,200,000  3,100  
 from 1,200,000 to 2,700,000  8,530  
 from 2,700,000 to 4,200,000  12,000  
 from 4,200,000 to 5,500,000  15,500  
 from 5,500,000 to 7,000,000  20,000  
 from 7,000,000 to 8,000,000  23,000  
 from 8,000,000 to 9,000,000  25,000  
 from 9,000,000 to 10,000,000  27,000  
 over 10,000,000  30,000  
b) Goods not subject to customs value determination:   
 50 items or fewer (per declaration)  6,000  
 from 51 to 100 items (per declaration)  12,000  
 101 or more items (per declaration)  20,000  
c) Air, sea, river, combined (river -and-sea) vessels  
(i) moved as commodities under the customs regimes of 
temporary importation, temporary exportation, processing 
(repairs) on the customs territory or processing (repairs) 
outside the customs territory and  
(ii) upon completion of temporary imp ortation by initiating a 
re-export procedure, temporary exportation by initiating a 
re-import procedure, processing on the customs territory 
by initiating a re -export procedure, processing outside the 
customs territory by initiating either a re -import 
procedure or a release -for-domestic -consumption 
procedure  20,500 per vessel  
 
21 EEC Collegium Decision No.  110 of 8 September 2020.  
22 Federal Law No.  289-FZ of 3 August 2018.  WT/TPR/S/416  • Russian Federation  
- 48 - 
Fee type and calculation base  Rate (RUB)  
Customs escort feesc 
a) A motor vehicle or a unit of railway rolling stock:   
 for a distance up to 50 km  2,000  
 for a distance 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 per 100 km, 
minimum 6,000  
b) A sea or river vessel, or an aircraft (regardless of the distance)  20,000 per vessel  
Fees for storage at a customs postc 
 In a temporary storage warehouse  1 per 100 kg, per day  
 In specially equipped premises  2 per 100 kg, per day  
a Government Resolution No.  342 of 26 March 2020.  
b Different rates and calculation bases apply to goods subject to temporary periodical declaring and 
goods imported for personal use.  
c Government Resolution No.  1082 of 11 September 2018.  
Source:  WTO Secretariat calculations, based on the Consolidated Tariff Schedules (CTS) database.  
3.31.   VAT and excise taxes are levied on imports fro m third countries, as well as on intra -EAEU 
trade. The EEC has been working with EAEU member States on the establishment of systems for 
streamlined control of the turnover and movement of goods in the Union. Such systems are being 
implemented for identific ation of foreign economic activity participants, electronic filing at national 
tax authorities and automatic exchange of information among them, and certain goods' marking and 
tracing ( Section  3.1.7). Amendments to the EAEU legislation have also been draft ed with a view to 
establishing a common procedure for collecting VAT on electronically supplied services.23 
3.32.   In the Russian  Federation, excise taxes may be levied on specific, ad valorem , or compound 
bases, depending on the good.24 In general, excise tax ra tes are reviewed annually; they are 
identical for imports and domestically produced goods.  
3.33.   During 2016 -21, most excise tax rates were revised upwards (Table 3. 7). Specific rates 
continued to apply on all excisable goods, except cigarettes. In 2019, crude o il was added to the list 
of excisable goods, with a special formula for the calculation of the applicable tax rate. A formula 
was also introduced for the excise tax rate on intermediate hydrocarbon distillates.  
Table 3.7 Excise taxes, 2016 and 2021  
(RUB)  
Description  2016  2021  
(from 1 April to 
31 December)  (from 1 January to 
31 December)  
Ethyl alcohol made of all types of raw materials  102 per 1 litre of 
absolute ethyl alcohol 
contained  566 per 1 litre of absolute 
ethyl alcohol contained  
Alcohol -containing products (except perfumery, 
cosmetic and household chemical goods in metal 
aerosol packaging)  400 per 1 litre of 
absolute ethyl alcohol 
contained  566 per 1 litre of absolute 
ethyl alcohol  contained  
Grapes used to produce wine  - 31 per tonne  
Wine inputs, grape must, fruit must  - 32 per litre  
Alcohol products with volume content of ethyl 
alcohol ≤  9% 400 per 1 litre of 
absolute ethyl alcohol 
contained  452 per 1 litre of absolute 
ethyl alcohol contained  
Alcohol products with volume content of ethyl 
alcohol >  9% 500 per 1 litre of 
absolute ethyl alcohol 
contained  566 per 1 litre of absolute 
ethyl alcohol contained  
Champagne and sparkling wines  26 per 1 litrea 41 per 1 litre  
Natural wines (except champagne and sparkling 
wines)  9 per 1 litreb 32 per 1 litreb 
Wine beverages made without the addition of food -
based rectified ethyl alcohol  - 41 per 1 litre  
Cider, perry (poiré), mead  9 per 1 litre  23 per 1 litre  
 
23 EAEU (2019), Review of EAEU Member States' Tax Systems.  Viewed at: 
http:// www.eurasiancommission.org/ru/nae/news/Pages/22 -10-2019-1.aspx .  
24 Federal Law No.  117–FZ of 5 August 2000, Chapter 22.  WT/TPR/S/416  • Russian Federation  
- 49 - 
Description  2016  2021  
(from 1 April to 
31 December)  (from 1 January to 
31 December)  
Beer with normative (standardized) volume content 
of ethyl alcohol ≤  0.5%  0 per 1 litre  0 per 1 litre  
Beer with normative (standardized) volume content 
of ethyl alcohol >  0.5% and ≤  8.6%  20 per 1 litre  23 per 1 litre  
Beer with normative (standardized) volume content 
of ethyl alcohol >  8.6%  37 per 1 litre  43 per 1 litre  
Smoking, chewing, pipe and waterpipe tobacco 
(including snuff), except inputs for production of 
tobacco articles  2,000 per 1  kg 3,806 per 1  kg 
Tobacco for consumption by heating  - 7,248 per 1  kg 
Electronic nicotine delivery systems, tobacco 
heating devices  - 60 per 1 piece  
Liquids for electronic nicotine delivery systems  - 16 per 1 ml  
Cigars  141 per 1 piece  258 per 1 piece  
Cigarillos  2,112 per 1,000 pieces  3,666 per 1,000 pieces  
Cigarettesc 1,250 per 1,000 pieces 
+ 12% but not less than 
1,680 per 1,000 pieces  2,359 per 1,000 pieces 
+ 16% but not less than 
3,205 per 1,000 pieces  
Cars with engine power >  67.5 Kw (90 hp) and 
≤ 112.5  Kw (150 hp)  41 per 0.75 kW (1  hp) 51 per 0.75 kW (1  hp) 
Cars with engine power >  112.5 Kw (150 hp) and 
≤ 150 Kw (200 hp)  402 per 0.75 kW (1  hp) 491 per 0.75 kW (1  hp) 
Cars with engine power >  150 Kw (200 hp) and 
≤ 225 Kw (300 hp)  402 per 0.75 kW (1  hp) 804 per 0.75 kW (1 hp) 
Cars with engine power >  225 Kw (300 hp) and 
≤ 300 Kw (400 hp)  402 per 0.75 kW (1  hp) 1,370 per 0.75 kW (1  hp) 
Cars with engine power >  300 Kw (400 hp) and 
≤ 375 Kw (500 hp)  402 per 0.75 kW (1  hp) 1,418 per 0.75 kW (1  hp) 
Cars with engine power >  375 Kw (500 hp)  402 per 0.75 kW (1  hp) 1,464 per 0.75 kW (1  hp) 
Motorcycles with engine power >  112.5 Kw (150 
hp) 402 per 0.75 kW (1  hp) 491 per 0.75 kW (1  hp) 
Natural gasd 30% 30% 
Motor gasoline unclassifiable in class 5  13,100 per tonne  13,624 per tonne  
Motor gasoline of class 5  10,130 per tonne  13,262 per tonne  
Diesel fuel  5,293 per tonne  9,188 per tonne  
Oil for diesel and/or carburettor (injection) engines  6,000 per tonne  5,841 per tonne  
Virgin ("straight -run") gasoline  13,100 per tonne  15,533 per tonne  
Benzene, paraxylene, orthoxylene  3,000 per tonne  3,187 per tonne  
Jet kerosene  3,000 per tonne  2,800 per tonne  
Intermediate hydrocarbon distillates  5,293 per tonne  formula  
Crude oil  - formula  
- Nil. 
a The excise tax rate for sparkling wines with a protected geographical indication or a protected 
appellation of origin was RUB  13 per 1 litre.  
b The excise tax rate for wines (except sparkling wines) with a protected geographical indication or a 
protected appellation of origin was RUB  5 per 1 litre.  
c The ad valorem  component is calculated on the basis of the maximum retail value (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.  
d Unless a different rate is stipulated in any of the Russian Federation's international agreements.  
Source:  Federal Tax Service; and Tax Code.  
3.34.   The standard VA T rate was raised from 18% to 20% as from January 2019. A reduced rate of 
10% remains in place for certain items, including basic foodstuffs, goods for children, medicines, 
medical devices, and certain printed publications (Table A3.2). During the review p eriod, the list of 
eligible goods for children was expanded. Some supplies, including exports, remain zero -rated and 
are thus eligible for a refund of the VAT paid on inputs (Table A3.3). Various exemptions from VAT 
also remain in place, mainly for social assistance and economic development purposes (Table A3.4).  
3.35.   During the review period, the Russian  Federation implemented a framework for the collection 
of VAT on electronically supplied services. As from 2017, foreign suppliers of services over the 
Internet  must charge the applicable VAT and remit it to the Federal Tax Service.  WT/TPR/S/416  • Russian Federation  
- 50 - 
3.1.5   Import prohibitions, restrictions, and licensing  
3.36.   The EAEU Treaty (Articles 46 -47 and Annex 7) remains the legal basis for the application of 
non-tariff measures (NTMs). The EEC is ves ted with the authority to impose, extend, and terminate 
NTMs; institutional arrangements for their enforcement are made at the national level. NTMs may 
take the form of import/export prohibitions, quantitative restrictions, exclusive trading rights, 
automa tic and non -automatic licensing, and authorization procedures. In exceptional cases, EAEU 
member States may also unilaterally impose NTMs.  
3.37.   The EAEU NTMs are set out in a "Single List", which entered into force on 1 January 2010 and 
has been amended a numbe r of times.25 As at June 2021, the Single List comprised 7 items 
prohibited for importation and 15 restricted items that were subject to (non -automatic) import 
licensing. Many of the NTMs in place implemented obligations undertaken under international 
conventions, such as CITES, the Stockholm Convention, and the Basel Convention, while others 
reflected national or regional interests. Most NTMs were of a permanent nature.26 
3.38.   In August 2014, the Russian  Federation prohibited, on national security grounds, the 
importation of certain agricultural products from several trading partners. Through periodic 
extensions, the import ban was maintained during 2016 -21, with some amendments to coverage 
(Table  3.8). In its current form (in force until 31 December 2021), the prohibition applies to imports 
of designated products from Albania, Australia, Canada, the European  Union, Iceland, Liechtenstein, 
Montenegro, Norway, Ukraine, the United Kingdom, and the United  States.  
Table 3.8 Product coverage of Government Resolution No. 778 of 7 August 2014 (as 
amended)  
HS Code  Entry into 
force  Product name  
0103 (except  
0103 10 000 0)  04/11/2017  Live pigs (except purebred breeding animals)  
0201  Meat of bovine animals, fresh or chilled  
0202 09/06/2016  Meat of bovine animals, frozen  
0203  Pork meat, fresh, chilled of frozen  
0206 (except  
0206 10 100 0,  
0206 22 000 1,  
0206 29 100 0,  
0206 30 000 1,  
0206 30 000 3,  
0206 41 000 1,  
0206 49 000 1,  
0206 80 100 0,  
0206 90 100 0)  04/11/2017  Edible offal of cattle, pigs, sheep, goats, horses, donkeys, 
mules, and hinnies, fresh, chilled or frozen (except inputs 
for the production of pharmaceuticals)  
0207 09/06/2016  Meat and edible offal of poultry in heading 0105, fresh, 
chilled or frozen  
0209 04/11/2017  Pork and poultry fat, not rendered or otherwise extracted, 
fresh, chilled, frozen, salted, in brine, dried or smoked  
0210  Meat (salted, in brine, dried or smoked)  
0301 (except  
030111000 0 and  
030119 000 0)   Live fish (except fry of salmon, trout, turbot flounder, and 
sea bass)  
0302, 0303, 0304, 0305, 0306, 
0307 (except 0307 60 9000), 
0308 02/11/2016  Fish, crustaceans, molluscs and other aquatic invertebrates 
(except spat of oysters, mussels, a nd white -footed shrimp)  
0401, 0402, 0403, 0404, 0405, 
0406 09/03/2021  Milk and dairy products (except specialized lactose -free milk 
and lactose -free dairy products for clinical and dietary 
nutrition, and dry milk whey with demineralization >90%)  
0701 (except 0701 10 000 0), 
0702 00 000, 0703 (except 0703 
10 110 0), 0704, 0705, 0706, 17/10/2019  Edible vegetables and certain roots and tubers (except seed 
potatoes, seed onions, sweet corn for planting, peas for 
planting, chickpeas for planting, and lentils for planting)  
 
25 WTO documents G/LIC/N/2/RUS/3 and G/LIC/N/2/RUS/4, 9 August 2019; and G/LIC/N/3/RUS/5, 
9 October 2019. A list of the measures in force  can be viewed at: 
http://www.eurasiancommission.org/en/act/trade/catr/nontariff/Pages/ediny_perechen.aspx . See also WTO 
document WT/TPR/S/411/Rev.1, 15  July 2021, Table A3.2.  
26 A surveillance mechanism on certain steel products, based on automatic licensing, was in place from 
1 January 2020 to 31 December 2020 (EEC Board Decision No.  90 of 4 June 2019).  WT/TPR/S/416  • Russian Federation  
- 51 - 
HS Code  Entry into 
force  Product name  
0707 00, 0708, 0709, 0710, 
0711, 0712 (except 0712 90 110 
0), 0713 (except 0713 10 100 0, 
0713 20 000 0, 0713 40 000 0), 
0714 
0801, 0802, 0803, 0804, 0805, 
0806, 0807, 0808, 0809, 0810, 
0811, 0813   Fruit and nuts  
1501 04/11/2017  Pork fat (including lard) and poultry fat, other than that of 
headings 0209 or 1503  
1502 04/11/2017  Fat of cattle, sheep or goats, other than that of heading 
1503 
1503 00  04/11/2017  Lard stearin, lard oil, oleostearin, oleo oil and animal oil, 
non-emulsified, unmixed, or not otherwise prepared  
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,  
2106 90 920 0,  
2106 90 980 4,  
2106 90 980 5,  
2106 90 980 9  30/09/2015  Prepared foodstuffs (except biologically active additives; 
specialized food products for athletes; vitamin and mineral 
complexes; flavoring additives; protein concentrates 
(animal and vegetable origin) and their mixtures; dietary 
fibers; and foo d additives (including complex ones))  
1901 90 990 0   Cheese -based foodstuffs containing milk fat of 1.5% or 
more 
2501 00  01/11/2016  Salt (including table salt and denatured salt) and pure 
sodium chloride, whether or not dissolved in water, or 
containing or not containing additives of anti -caking or 
flowing agents, and sea water (excluding dietary 
supplements)  
Source:  Government Resolution No.  778 of 7 August 2014 (last amended on 25 February 2021).  
3.39.   In December 2015, the Russian  Federation also  banned, on national security grounds, the 
importation of certain products of Turkish origin. The list of prohibited imports was subsequently 
narrowed down, through four revisions, to fresh or chilled tomatoes (HS 0702 00 000) with effect 
from November 201 7.27 
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.40.   There were no major changes to the legal and institutional framework for trade remedies 
during the review period.28 Being part of the EAEU's common external trade regime, contingency 
measures  toward s third parties remain the exclusive competence of the EEC. The EAEU  Treaty 
(Articles 48 -50 and Annex 8) and the relevant EEC decisions provide the legal basis for application 
of anti -dumping (AD), countervailing (CV), and safeguard (SG) measures.29 Recent legislative 
amendments regulated the period between publication and  entry into force of provisional and certain 
definitive duties30, and implemented bilateral emergency action provisions of the EAEU -Viet Nam 
FTA.31 
3.41.   The legislation in force does not preclude the simultaneous imposition of AD, CV, and SG 
measures on the sam e product. A separate investigation would be required prior to the imposition 
of each type of measure. Such investigations may be initiated and conducted concurrently. To date, 
AD, CV, and SG measures have not been applied in parallel on the same product.  
 
27 Government Resolution No.  1296 of 30 November 20 15 (last amended on 21 December 2019).  
28 WTO documents WT/TPR/S/345/Rev.1, 6 December 2016, Section 3.1.7; and G/ADP/N/1/RUS/2, 
G/SCM/N/1/RUS/2, and G/SG/N/1/RUS/2, 20 May 2016.  
29 The industrial subsidies provisions of the EAEU Treaty (Articles 93 and 105 and Annex 28) also set out 
conditions under which member States may impose "compensatory measures" on intra -EAEU trade. Rules for 
the harmonization of industrial subsidies and additional competences of the EEC in this regard were to enter 
into force from J anuary 2017.  
30 EEC Council Decisions No.  99 of 14 September 2018 and No.  30 of 22 February 2019.  
31 EEC Council Decision No.  115 of 18 October 2016.  WT/TPR/S/416  • Russian Federation  
- 52 - 
3.42.   Between June 2016 and March 2021, the EEC's Department for Internal Market Defence 
(DIMD) initiated three original SG investigations and 29 AD proceedings, comprising 13 original 
investigations and 16 expiry reviews (Table  3.9). During the same period, ori ginal investigations 
resulted in the imposition of one definitive SG and nine definitive AD measures, and all six completed 
expiry reviews resulted in continuation of the AD measures in place. No measures were imposed in 
one AD, one CV, and two SG investig ations.  
Table 3.9 Trade remedy proceedings by DIMD, June 2016 -March 2021  
Type  2016  2017  2018  2019  2020  2021  
Anti-dumping measures        
Proceedings initiated  2 7 5 5 9 1 
Original investigations completed  1 1 0 5 1 2 
Provisional measures imposed  0 1 0 0 0 0 
Definitive measures imposed  1 1 0 4 1 2 
Interim reviews completed  0 1 3 0 1 0 
Changed circumstances  0 0 2 0 1 0 
Anti-circumvention  0 1 0 0 0 0 
New shipper  0 0 1 0 0 0 
Expiry reviews completed  1 0 3 1 1 0 
Continuation of measures  1 0 3 1 1 0 
Safeguard measures              
Investigations initiated  0 0 1 2 0 0 
Original investigations completed  0 0 0 1 0 0 
Provisional measures imposed  0 0 0 0 0 0 
Definitive measures imposed  0 0 0 1 0 0 
Countervailing measures              
Investigations initiated  0 0 0 0 0 0 
Original investigations completed  1 0 0 0 0 0 
Source:  Eurasian Economic Commission.  
3.43.   In March 2021, there were 21 definitive trade remedy measures in effect, compared with 18  in 
May 2016. Seven measures expired between June 2016 and March 2021 (Table  3.10). The average 
timespan of AD and SG measures in force at some point during the same period was seven and two 
years, respectively. Ten AD m easures had been in place for longer than 5 years, including 6 
measures with timespans exceeding 10 years. Approximately half of the contingency measures in 
force concerned products of the steel industry.  
Table 3.10 Definitive contingency measures, 2016 -2021  
Product  HS code  Type  Expiry  Exporter  
Measures in force as at March 2021  
Certain steel pipes and tubes  7304, 7305, 7306  AD 01/06/2021  Ukraine  
Cold-rolled flat steel products with polymer 
coating  7210, 7212, 7225  AD 22/01/2023  China  
Cold-worked seamless pipes and tubes of 
stainless steel  7304 AD 10/12/2023  China; 
Malaysia  
Steel forged rolls  8455 AD 28/02/2022  Ukraine  
Stainless steel flatware  8211, 8215  AD 15/01/2021  China  
Seamless steel oil country tubular goods  7304 AD 12/05/2021  China  
Crawler bulldozers  8429 AD 29/07/2021  China  
Commercial vehicle tyres  4011 AD 18/08/2021  China  
Seamless pipes and tubes of stainless steel  7304 AD 25/02/2021  Ukraine  
Bars and rods  7213, 7214, 
7227, 7228 AD 29/04/2021  Ukraine  
Ferro silicon manganese  7202 AD 27/10/2021  Ukraine  
Hot-rolled steel angles  7216, 7228  AD 02/07/2022  Ukraine  
Rolling -element bearings (excl. needle roller 
bearings)  8482 AD 20/08/2023  China  
Graphite electrodes  8545 AD 24/09/2023  India 
Aluminium alloy wheels  8708 AD 27/04/2024  China  
Herbicides  3808 AD 19/07/2024  European 
Union  
Zinc plated or coated flat -rolled steel products  7210, 7212, 7225  AD 04/01/2025  Ukraine; 
China  
Hot-worked seamless pipes and tubes of 
stainless steel  7304 AD 31/01/2025  China  WT/TPR/S/416  • Russian Federation  
- 53 - 
Product  HS code  Type  Expiry  Exporter  
Aluminium alloy strips  7606 AD 23/10/2025  Azerbaijan; 
China  
Leaf-springs  7320 AD 20/03/2026  China  
Welded tubes of stainless steel  7306 AD 13/03/2026  China  
Measures terminated between June 2016 and March 2021  
Steel railway wheels  8607 AD 21/01/2021  Ukraine  
Hot-rolled steel products  7208, 7211, 
7225, 7226  SG 30/11/2020  All countries  
Lemon acid  2918 AD 09/04/2020  China  
Combine harvesters and modules  8433 SG 21/08/2016  All countries  
Tableware and kitchenware of porcelain  6911 SG 28/09/2016  All countries  
Light commercial vehicles  8704 AD 14/06/2018  Germany, 
Italy, 
Turkey  
Enamelled baths of cast iron  7324 AD 25/01/2018  China  
Source:  Eurasian Economic Commission.  
3.44.   During the review period, the Russian  Federation was involved, as a defendant, in one dispute 
settlement case relating to AD duties on light commercial vehicles. On 20 June 2018, the 
Russian  Federation informed the Dispute Settlement Body (DSB)  that, following the expiration of 
the measures at issue, the DSB's recommendations and rulings in this dispute had been fully 
implemented.32 
3.1.7   Other measures affecting imports  
3.45.   A ban on the international transit of certain cargo through the territory of the 
Russian  Federation was implemented in 2014 and underwent several amendments before being 
lifted in July 2019.33 From that date, the transit traffic of goods originating in jurisdictions that have 
imposed certain economic restrictions against Russian legal and/or natural persons, as well as goods 
originating in or being transported through Ukraine, must be traced us ing identification means 
(seals) operating on the basis of the global navigation satellite system (GLONASS) and, in case of 
transportation by road, registration cards for drivers. Rules governing the transit of such goods when 
transported by air were enact ed in June 2020.34 
3.46.   After the successful implementation of a pilot project for the marking of fur products with 
RFID tags, the Eurasian Intergovernmental Council established a Union -wide "track and trace" 
system for the marking of certain goods with (machin e-readable) means of identification in February 
2018, which became effective on 29 March 2019.35 From that date, the transportation, purchase, 
and sale of unmarked fur products within the EAEU are prohibited.36 Subsequent EEC Council 
Decisions have extende d the marking system's product coverage, while giving member States 
certain flexibility regarding the implementation date.37 Proposals for additional products are 
reviewed by the EEC, which must decide by consensus on their inclusion in the marking system. In 
the absence of a consensus decision, member States may establish marking requirements pursuant 
to national legislation b ut following the general principles of the Union -wide system. Specific EEC 
Council Decisions have exempted certain tobacco products and alcoholic beverages from the EAEU's 
 
32 WTO document WT/DS479/12, 21 June 2018.  
33 Presidential Decree No.  290 of 24 June 2019 and Government Resol ution No.  1877 of 
27 December  2019.  
34 Presidential Decree No.  401 of 19 June 2020.  
35 Agreement on the Marking of Goods with Means of Identification in the EAEU  of 2 February 2018, 
ratified by Federal Law No.  281-FZ of 3 August 2018.  
36 Upon importation into the EAEU, goods covered by the marking system are to be marked before their 
release from customs for domestic consumption. Local manufacturers of similar good s must apply the marking 
before offering them for sale. The marking requirements do not apply to goods exported outside the EAEU.  
37 Additions to the marking system's product coverage, along with the earliest implementation dates, 
were set out in EEC Counci l Decisions No.  127 of 18 November 2019 on certain light manufacturing products 
(as from 1 January 2021), No.  128 of 18 November 2019 on fragrances (as from 1 October 2020), No.  129 of 
18 November 2019 on pneumatic tyres (as from 1 December 2020), No.  130 of 18 November 2019 on photo 
cameras and flashlights (as from 1 October 2020), and No.  129 of 23 December 2020 on certain dairy products 
(as from June -December 2021).  WT/TPR/S/416  • Russian Federation  
- 54 - 
marking system, thereby giving member States the freedom to set marking requirements  at the 
national level.38 
3.47.   The Russian Federation develops import substitution programmes through various 
instruments. These include the regulation of public procurement under Federal Law No. 44 -FZ and 
Federal Law No. 223 -FZ of 18 July 201139 (Section 3.3.6 ). Foreign data storage systems were 
prohibited by Decree No. 1746 of 21 December 2019 in procurement for governmental purposes. 
The Russian authorities observe in this Review that since 2016 there have been no priority sectors 
for import substitution.40 With respect to a recent World Bank report that identifies planned 
decreases in import shares in certain industries41, the authorities note that these indexes for import 
substitution in certain sectors have a forecast character.  
3.48.   Import substitution policy has been accompanied by measures designed to encourage foreign 
firms to locate production in the territory of the Russian Federation. A key element in this localization 
policy is the definition of rules on the conditions under which a product is recognized  as made in the 
Russian Federation.42 To be certified as made in the Russian Federation, a product must meet the 
requirements set out in Decree No. 719 of 17 July 2015 with respect to the products covered by the 
Appendix to that Decree43, meet the country of origin criteria of the CIS Agreement on the Rules for 
Determining the Country of Origin of Goods in the CIS, or be the subject of a Special Investment 
Contract (SPIC)  (Section  2.4.1).44  
3.49.   The Industrial Assembly Investment Regime introduced in 2005 in th e automotive sector 
provided for preferential tariffs or tariff exemptions for imports of components used in the industrial 
assembly of motor vehicles and parts and components thereof conditional upon compliance with the 
requirement regarding local content . These tariff measures expired in September 2018.45 The 
Russian Federation observes that "[u]pon expiry of transition periods granted within WTO accession 
framework to Russian local [sic] requirements in automotive sector, local content policies, operate 
in line with standard WTO requirements, including under the TRIMS Agreement".46 The authorities 
 
38 EEC Council Decisions No.  43 and No.  44 of 23 April 2021.  
39 The authorities indicate t hat the Government Commission on Import Substitution was established as a 
coordinating body mandated to ensure consistency of actions among federal executive bodies and local 
authorities and organizations for the purposes of resolving issues related to the  creation of conditions for the 
timely and complete satisfaction of the needs of legal entities specified in Federal Law No. 223 -FZ.  
40 In the previous Review, the Russian Federation indicated that the priority sectors for import 
substitution were e quipment for the food -manufacturing industry, heavy machine -building, energy machine -
building, the electro -chemical and cable industry, oil and gas machine -building, the tool -making industry, ship -
building equipment (as regards ship accessory equipment), t he radio -electronic industry, the chemical and 
petrochemical industry (accelerants, production of rare -earth metals, composite materials, paints and lacquers, 
plastics, cleaning and polishing agents, and rubber and plastic products), the pharmaceutical ind ustry, the 
medical industry, production of conventional weapons, the civil aircraft industry, the engine industry, and 
components and equipment for transport machine -building. WTO document WT/TPR/M/345/Add.1, 
19 December 2016, p.  316. 
41 According to the World Bank report, "[t]he Russian Government developed import substitution 
programmes for 22  industries, covering approximately 2,000 products in the industries for pharmaceuticals, 
medical, radio -electronics, transport, construction, and metallurgy  ... it w as planned that in the timber industry 
the share of imports should decrease to 49 percent, in the oil and gas engineering industry to 55 percent, in 
the automotive industry up to 7 per cent, in machine tools up to 75 percent, and in pharmaceuticals up to 3 3 
percent". World Bank (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
p. 52. The authorities also note that the correct forecast figures are: timber industry, 21.3%; oil and gas 
engineering industry, 43%; automotive i ndustry, 38%; machine tools, 58%; and pharmaceuticals, 50%.  
42 The authorities consider that the measures discussed in this paragraph do not affect imports.  
43 Decree No. 719 of 17 July 2015 on Confirmation of Industrial Manufacturing of Products in the 
Territory of the Russian Federation. Such requirements pertain to the possession of intellectual property rights, 
availability of a service centre in an EAEU member State, the conduct of specified technological operations in 
the Russian Federation, and limit s on the number or value of foreign components used in the production 
process. Specific localization requirements exist in the following sectors: mechanical engineering and metal 
industries; food and food processing; automotive industry; information and co mputer technologies; medical 
technologies; and pharmaceuticals. Industrial Development Fund, Production Localization in the Russian 
Federation: Specific Features of the Legislation . Viewed at: 
http://idfrf.com/upload/iblock/04b/Production_localization_in_the_RF.pdf . 
44 The localization requirements do not apply if a foreign product has no domestic analogue in the 
Russian Federation. 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.  
45 WTO document G/SCM/Q2/RUS/19, 26 January 2021, p. 4.  
46 Russian Federation, Replies to Initial Questionnaire, Item B13.  WT/TPR/S/416  • Russian Federation  
- 55 - 
indicate that the auto investment programmes were terminated in 2020 and that there are no 
measures, or plans to develop new measures, to replace these programm es.  
3.50.   During the review period, the import substitution policies pursued by the Russian Federation 
were raised in meetings of relevant WTO bodies.47 Several studies have raised questions with respect 
to the effectiveness and economic rationale of these poli cies48 (Section 1).  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.51.   The basic legislation on export procedures and requirements is contained in the EAEU Customs 
Code and Federal Law No.  289-FZ of 3  August  2018 (Section 3.1.1).  
3.52.   Regis tration and documentation requirements for exports, in general, are similar to those for 
imports (Section  3.1.1). To export goods from the customs territory of the EAEU, the carrier must 
submit to the relevant customs body (the FCS) documents and informati on listed in paragraphs 1 
and 2 of Article  92 of the EAEU Customs Code, such as the goods declaration or a copy thereof, and 
the transit declaration concerning the goods.49 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 declaration is required.50 Exports of goods have to 
take place at designated points of departure within the working hours of customs bodies.51 
3.53.   According to the World Bank's most recent Ease of Doing Business report, the time needed to 
export goods from Moscow is 66 hours (compared to an average of 16.1 hours for Europe and Central 
Asia), and a cost of USD  580, down from USD  1,125 in 201552, but still higher than the average for 
Europe and Central Asia (Table 3. 11). In the case of the Russian  Federation (Moscow), the high 
delays (costs) of exports are mai nly driven by port or border handling and the cost of inspections.53 
It should be noted, however, that the methodology used in this aspect of the Ease of Doing Business 
report has sometimes been questioned. The authorities consider that the World Bank's fi gures are 
incorrect and submit that in 2020, according to the FCS, the time limit for export of goods not 
identified as risk consignments (for which additional information is required) was 40  minutes.  
Table 3.11 Time and cost to export, 2020  
 Moscow  Europe & Central Asia  
Time required to export  
Border compliance   66 hours  16.1 hours  
Documentary compliance  26 hours  25.1 hours  
Cost to export  
Border compliance  USD 580 USD 150 
Documentary compliance   USD 80 USD 87.6 
Source:  World Bank (2020), Doing Business 2020, Economy Profile . Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/russia# . 
 
47 E.g. WTO documents G/TRIMS/Q/ RUS/4-10, G/TRIMS/M/48, 30 October 2020.  
48 E.g. N . Volchkova, "The Export Trap of Russian Import Substitution Policies", BRE Review , 
28 February 2020. Viewed at: https://sites.utu.fi/bre/the -export -trap-of-russian -import -substitution -policies/ . 
World Bank Group (2020), Russia Integrates: Deepening the Country's Integration in the Global Economy , 
p. 63.  
49 This applies to the whole customs te rritory of the EAEU regardless of the border post through which 
goods are exported. EAEU Customs Code, Article  92, para. 2.  
50 EAEU Customs Code, Article  92, para.  2. 
51 EAEU Customs Code, Article  79, para.  1. 
52 WTO document WT/TPR/S/345/Rev.1, 6 December 20 16, para. 3.91.  
53 World Bank (2020), Doing Business 2020, Economy Profile . Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/russia# . WT/TPR/S/416  • Russian Federation  
- 56 - 
3.2.2   Export taxes, charges, and levies  
3.54.   Export duties are not applied on intra -EAEU trade. The EAEU has no common regulati on for 
export duties; member States are thus free to unilaterally apply export duties in accordance with 
their respective domestic legislation and international commitments.54 
3.55.   Export duties in respect of third countries are applied under Law No.  5003-I of 21 May 1993 
on Customs Tariffs and implementing regulations on raw materials and semi -finished goods, mainly 
for fiscal purposes. According to the authorities, in a few cases (such as oil seeds, and raw hides 
and skins), export duties are imposed to ensure greater availability of raw materials for the domestic 
industry or for the purpose of securing needs of domestic defence industries. Export duties on waste 
and scrap are imposed to address environmental protection problems. According to the authorities, 
the Russian Federation applies export duties on 147 tariff li nes, or subdivisions thereof, at the 
10-digit level. Nine tariff lines have an export duty of zero  (including gas condensate55) and other 
rates, often applied as mixed duties, have ad valorem  elements of up to 80% for some wood 
products. Government Resolut ion No.  754 of 30  August  2013 on the Approval of the Rates of Export 
Customs Duties on Goods Exported from the Russian  Federation Outside of the Parties to the 
Agreements on the Customs Union, and on the Recognition as Invalid of Certain Acts of the 
Govern ment of the Russian  Federation (as amended) provides a comprehensive, up -to-date list of 
all customs duties currently in force with respect to exports to third countries ( i.e. non-EAEU 
countries).56 
3.56.   The Russian  Federation eliminated export duties on 495 li nes as part of its WTO accession 
commitments.57 It also undertook to establish two export tariff rate quotas for wood products with 
in-quota export duties of 13% and 15%.58 Since 2016, the Russian  Federation removed export duties 
on 235  tariff lines, or su bdivisions thereof, at the 10 -digit level. The export duties were reduced on 
raw hides and skins, wood, copper, nickel and aluminium waste and scrap, tungsten, cobalt, cermet, 
and articles thereof. There was also a gradual reduction of export duties on cer tain energy products 
(Section 4. 2.2). 
3.57.   In January 2021, a Resolution by the Prime Minister was signed to adjust exports through 
export tariff rate quotas  on wheat, barley, rye, and corn to stabilize their prices on the domestic 
market . As from  2 June 2021, this tax was to be replaced by floating duties, calculated using a 
benchmark index  (Section 4. 1.3). It covers products delivered from the Russian  Federation outside 
the EAEU. The regulations are expected to reduce export volumes and refocus market particip ants 
from selling agricultural raw materials abroad to export high value -added agricultural products.59 
3.58.   Regarding sunflower seeds (HS 120600), the export duty was significantly increased for the 
period from 9 January to 30 June 2021 to 30% but at least EUR  165 per tonne. Also, export duties 
on soya beans were introduced for the period February -June 2021. Both export duties have been 
extended at higher rates from 1  July 2021 to 31  August  2022 ( Section  4.1.3.2 ).60 
3.59.   As from 1  August  2021, temporary exp ort duties were introduced on ferrous and major base 
metals ranging from USD  54/mt to USD  2,321/mt and will be in effect through the end of 
December  2021. The new duties system will take 15% as a base and involve a metal -specific rate. 
The Ministry of Econ omic Development (MED) estimates that these export duties will add revenues 
for about RUB  110-RUB 115 billion for ferrous metals and some RUB  50 billion for non -ferrous 
metals.61 
 
54 WTO document WT/REG358/1, 13 July 2018, para. 3.44.  
55 Tariff line 2709 00 100 1.  
56 Government Resolution No.  754 of 30  August  2013 (as amended). Viewed at: 
http://ivo.garant.ru/#/document/70443626/paragraph/1:0 . 
57 WTO document WT/TPR/S/345/Rev.1, 6 December 2016, paras.  3.93 and 3.94; and WT/REG358/1, 
13 July 2018, para. 3.45.  
58 Government Resolution No.  779 of 30 July 2012 (as amended).  
59 Ministry of Agriculture, Russian Prime Minister Signs Resolution on Grain Export Duties , 
28 January  2021. Viewed at: https://mcx .gov.ru/en/news/Russian -Prime -Minister -signs-resolution -on-grain-
export -duties/ . 
60 Government Resolution No.  754 of 30  August  2013 (as amended).  
61 Government of the Russian  Federation. Viewed at: http://www.government.ru/en/news/42599/ . WT/TPR/S/416  • Russian Federation  
- 57 - 
3.60.   Exports from the Russian  Federation to countries outside of the EAEU are not subject to excise 
taxation. Exports are zero -rated for VAT purposes.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.61.   The EAEU rules on common non -tariff regulatory measures in re lation to trade with 
third countries62 allow for the application, in exceptional cases, of bans or quantitative restrictions 
on exports to prevent or reduce any critical shortage in the internal market of food products or other 
goods essential for the inte rnal EAEU market, as well as bans or quantitative restrictions on export 
required for the application of standards or rules for the classification, sorting, and sale of goods in 
international trade. In addition, exports to trade third countries may also be  subjected to one of the 
non-tariff regulatory measures based on more general exceptions.63 EAEU measures applied 
pursuant to these provisions to exports to third countries are included on the Single List of goods, 
which entered into force on 1  January  2010 and has been amended a number of times. As at 
June 2021, 20  categories of products were subject to export prohibitions, restrictions, or licensing.64 
3.62.   According to the authorities, during the review period the Single List of goods was amended 
with respect  to export licensing measures regarding gamma -butyrolactone (GBL) and certain fauna 
animals ( e.g. giraffes and populations of ovis).65 
3.63.   The EAEU also maintains a common list of goods that are significantly important to the internal 
market in which temporary  bans or export restrictions can be put in place.66 The list has 
85 categories of goods listed by HS code. The products include meat, milk, grains, flour, beans, 
oilseeds, vegetable oil and oilcakes, animal feed, fuels, hides and skins, wood, wastepaper, w ool, 
and various metal waste and scrap. Since 2016, the list has been supplemented by certain wood 
products (HS 4401, 4403, 4404, 4406, and 4407) and agricultural products (onions, garlic, and 
turnips).  
3.64.   On 24  March  2020, the EAEU imposed temporary export p rohibitions on a range of medical 
products, devices, and personal protective equipment (PPE) to prevent critical shortages in response 
to the COVID -19 pandemic. They applied mainly to cotton wool, gauze, bandages, masks, half 
masks, respirator masks, respi rators, filters for PPE for respiratory devices, goggles, disinfectants, 
 
62 As discussed in Section 3.1.5, "common non -tariff regulatory measures" comprise the following 
categories of measures: (i)  prohibition of import and/or export of goods; (ii)  quantitative restrictions on import 
and/or e xport of goods; (iii)  exclusive right to export and/or import goods; (iv)  automatic licensing 
(surveillance) of export and/or import of goods; and (v)  authorization -based procedure for import and/or 
export of goods. Annex 7 to the EAEU Treaty specifies the  procedure for issuing licences 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 third countries. The period of validity of a single -use licence may not exceed one y ear 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 basis for the issuance of the licence.  
63 The general exceptions listed in Annex 7 allow for measures: (i)  necessary to maintain public morals 
or law and order; (ii)  necessary to protect life human life or health, the environment, and the life or health of 
animals and plants; (iii)  related to the  export and/or import of gold or silver; (iv)  applied to protect cultural 
values and heritage; (v)  necessary to prevent the depletion of irreplaceable natural resources and 
implemented simultaneously with a limitation of domestic production or consumption related to the use of such 
natural resources; (vi) linked to restriction of export of domestic raw materials to provide sufficient quantity of 
such materials for the domestic manufacturing industry in periods when domestic prices for such materials are 
kept lower than world prices as the result of a stabilization plan implemented by the Government; 
(vii) necessary to acquire or distribute goods that are in short supply either generally or locally; (viii)  necessary 
for the purpose of defence and security; an d (ix)  necessary to ensure the implementation of legal acts not 
contravening international commitments and related to the application of the customs legislation, preservation 
of environment, protection of intellectual property, and other legal acts.  
64 WTO documents G/LIC/N/2/RUS/3 and G/LIC/N/2/RUS/4, 9 August 2019; and G/LIC/N/3/RUS/5, 
9 October 2019. A list of the measures in force can be viewed at: 
http://www.eurasiancommission.org/en/act/trade/catr/nontariff/Pages/ediny_perechen.aspx . See also WTO 
document WT/TPR/S/411/Rev.1, 15 July 2021, Table A3.3.  
65 In some countries, GBL has been found in extracts from samples of unadulterated wines.  
66 EEC, EEC Board Decision No.  83 of 26 July 2016. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Pages/shv.aspx .  WT/TPR/S/416  • Russian Federation  
- 58 - 
shoe covers, certain types of clothing and accessories, and gloves.67 These temporary export 
prohibitions were eliminated on 1  October  2020.  
3.65.   On 21  April 2020, the EAEU also prohibited  the exportation of certain agricultural goods, such 
as onions, garlic, turnips, rye, rice, buckwheat, millet, cereals, wholemeal flour, and cereal granules 
(Section 4. 1.3).68 These temporary export prohibitions were eliminated on 1  July 2020.  
3.66.   In exceptional cases,  EAEU member States may also unilaterally introduce and temporarily 
apply (for up to six months) non -tariff measures to imports from and/or exports to third countries . 
The EAEU member State that intends to introduce a temporary measure shall in advance, but no 
later than three calendar days prior to its introduction, notify the EEC and submit a proposal for the 
introduction of such measures within the customs territory  of the EAEU.69 During the review period, 
the Russian  Federation introduced temporary quantitative restrictions on export of ferrous waste 
and scrap, birch, and logs and a temporary prohibition of exports of raw hides and skins. All of these 
quantitative r estrictions have been abolished.  
3.67.   An exclusive right remains in place for exports outside the EAEU's customs territory of natural 
gas (HS 2711 11 000 0 and 2711  21 000 0) originating from the Russian  Federation.  
3.2.4   Export finance, insurance, and guarantees  
3.68.   The EAEU Treaty provides for the application of joint measures to promote exports of goods 
originating from member States to third -party markets; the indicative list includes export credit and 
export insurance facilities, "made in the EAEU" labelling, and coo rdinated exhibition, advertising, 
and branding activities.70 However, according to the authorities, in practice export support has been 
carried out only at the national level.  
3.69.   On 24  December  2018, the Presidential Council for Strategic Development and Nati onal 
Projects announced a new set of measures to promote exports and industrial development under 
the International Cooperation and Export national project ( Section 2.2 ). The key aim of this project 
is to double the Russian  Federation's export of both non -energy and no n-resource -based goods and 
services by 2025. For this purpose, a system of financial and non -financial export support was 
established. Financial measures are export credits with interest rate support, insurance, and 
guarantees of export credit s, as well as support for participation in international exhibitions. 
Non-financial measures include consultation services, assistance in searching for potential partners 
abroad, and support for ensuring compliance with customs procedures in the destinatio n country.  
3.70.   At the federal level, the state corporation VEB.RF (formerly Vnesheconombank) is the principal 
development institution involved in export support, although it is not its main activity. It is not 
licensed or subject to regulatory oversight by the  Bank of Russia. VEB.RF aims to improve the quality 
of life of the Russian people through facilitating financing for infrastructure, technology, ecological, 
and social welfare projects. In mid -2018, VEB.RF embarked on an important transformation and 
adopte d a new business model in response to, inter alia , the deterioration of investment conditions.71 
3.71.   The core business areas and principal policies of VEB.RF are set out in Federal Law No.  82-FZ 
of 17 May 2007 on State Development Corporation VEB.RF, as amende d by Federal Law No.  452-FZ 
of 28  November  2018 on State Development Corporation VEB -RF, and the Memorandum on the 
Financial Policies approved by Government Resolution No.  1510 of 23  July 2018.  This Memorandum 
also describes the conditions and procedures f or VEB.RF's participation in national projects to be 
implemented in areas stipulated by Presidential Decree No.  204 of 7 May 2018 on National 
 
67 Amendments to EEC Board Decision  No. 30 of 21 April 2015 on Measures of Non -tariff Regulation. 
EEC Board Decision No.  41 of 24  March  2020. Viewed at: https://docs.eaeunion.org/docs/ru -
ru/01425254/err_26032020_4 1.  
68 EEC Board Decision No.  43 of 30 March 2020, as amended by EEC Board Decision No.  57 of 
21 April 2020. Viewed at: 
http://www.eurasiancommission.org /ru/act/trade/catr/nontariff/Documents/EP.pdf/1.11.pdf .  
69 The EEC shall consider the proposal from the member on the imposition of a temporary measure and 
may decide to impose such measure in the customs territory of the EAEU. If the decision to impose temporary 
quantitative restriction is not adopted, the EEC informs the customs authorities of the relevant member that 
the temporary measure is valid for not more than six months from the date of its introduction.  
70 EAEU Treaty, Article  41. 
71 VEB.RF , White Paper on Our Activities . Viewed at: https://veb.ru/en/white -paper -on-our-activities/ . WT/TPR/S/416  • Russian Federation  
- 59 - 
Objectives and Strategic Tasks of the Russian Federation's Development in the Period Up to 2024 
(Section 2.2 ).72 
3.72.   As part of its new business model, VEB.RF has committed to financing priority national 
objectives for about RUB  3 trillion. This is expected to contribute an additional RUB  8-RUB 9 trillion 
to the economy. VEB.RF is directly involved in  priority  projects, i ncluding supporting urban 
economies, infrastructure, and medical and healthcare projects. These projects are aimed at 
improving the public good ( e.g. development of depressed regions and cities with populations over 
100,000 (in total, approximately 50 mill ion people), development of senior living communities, and 
clean -up of illegal garbage dumping). VEB.RF now focuses on the following investment areas: 
infrastructure (40%), production sector and high -technology sphere (30%), and urban economy 
(30%).73 As of 31 December  2020, VEB.RF had RUB  3,406 billion in assets, RUB  2,717 billion in 
liabilities, and a RUB  1,169 billion loan portfolio.  
3.73.   VEB.RF offers its clients the following export finance products74: 
• export lending:  financing of commercial exporter credits, financing of trade turnover 
with foreign buyers, direct foreign buyer credit, and credit to the bank of a foreign 
buyer; and  
 
• guarantee support:  tenders, return of advance payment, payments, and performance 
of obligations under an export contract.  
 
3.74.   VEB.RF supports export development through its subsidiary – state export support institution 
Russian Export Center (REC).75 Having decided to adopt a holistic approach to providing financial 
and non -financial support to exporters, the authoritie s set up the REC as a single window in 2015.76 
Besides matching customers with the appropriate support facilities, the REC may assist 
entrepreneurs in carrying out market research, finding partners, participating in international 
tenders, structuring expor t projects, conducting negotiations, and drawing up export contracts. The 
REC's mandate also includes acting as an interface between the Government and businesses, to 
ensure that legislative initiatives 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, and it has not 
received any funding from the federal budget to date.  
3.75.   The key strategic goal of the REC is to form an efficient infrastructure for the expor t of 
non-resource products and services, as well as to provide support to the companies considering the 
export of their products. The REC established a comprehensive system of financial and non -financial 
export support instruments. The REC's systematic act ivity is focused both on large businesses and 
small and medium -sized enterprises (SMEs). Since 2019, the REC also compensates 15  approved 
commercial banks for subsidized interest rates on export credits and other loans to exporters, and 
it provides subsidi es to insurance premiums under export credit insurance contracts.77 In 2019, the 
REC supported more than 11,000 exporters and total exports valued at USD  19.5 billion through its 
support programmes.  
3.76.   Aiming to offer comprehensive integrated services to expo rt-oriented companies, the REC 
arranges for credits to domestic producers that export, other exporters of Russian goods, and foreign 
buyers of Russian goods via the Export and Import Bank (Roseximbank or Eximbank), and these 
credits can be insured by the E xport Insurance Agency of Russia (EXIAR).78 Unlike VEB.RF, Eximbank 
is a credit institution subject to Russian banking legislation and regulation by the Bank of Russia. 
According to the authorities, VEB.RF and related companies do not follow uniform direct ives on 
 
72 VEB.RF, White Paper on Our Activities .  
73 VEB.RF, White Paper on Our Activities .  
74 VEB.RF , White Paper on Our Activities . The authorities indicate that this export financing is provided 
in full conformity with WTO rules.  
75 The REC was established by Federal Law No.  185-FZ of 29 June 2015  on Amendments to the Federal 
Law on the Bank for Development and Article  970 of Part 2 of the Civil Code.  
76 Federal Law No.  185-FZ of 29 June 2015. As of 1  July 2021, the REC's charter capital amounted to 
RUB 74.5 billion. REC, Export Support in 2019 . Viewed at: https://2019.exportcenter.ru/en/expocenter/export -
support -in-2019/ . 
77 REC (2020), Annual Report 2019 , Chapter 2.  
78 The REC is the sole shareholder of EXIAR, which in turn is the owner of Eximbank.  WT/TPR/S/416  • Russian Federation  
- 60 - 
minimum Russian content and sectoral or geographical priorities; separate legal acts and/or internal 
documents may be established to guide the operations of each entity.  
3.77.   The export credit and guarantee facilities provided by Eximbank are primarily targeted at the 
supply of industrial goods, works, and non -financial services. Typically, the cost of Russian -sourced 
inputs (including labour and services) must represent at least 30% of the export contract's overall 
value.79 Unlike commercial banks, Exim bank cannot provide export finance for raw materials. In 
2019, Eximbank was the second -largest provider of international factoring services, implemented 
under EXIAR's insurance coverage for receivables. Eximbank's loan portfolio increased from 
RUB 10.4 billion at end -2014 to RUB  130.2  billion at end -2020, whereas its portfolio of guarantees 
decreased from RUB 84.3 million to RUB  4.6 billion in the same period.  In 2020, 37.0% of export 
finance provided by Eximbank was allocated in the engineering industry, f ollowed by metallurgy, 
with Europe as the main destination with 53.0% of the total share (Chart 3. 3). 
Chart 3.3 Eximbank: export finance by geographic market and industry, 2020  
 
Source:  WTO Secretariat, based on data provided by the authorities.  
3.78.   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 
account.80 The Bank of Russia treats an EXIAR insurance policy as a first -class security, which allows 
Russian -incorporated credit institutions to benefit from a more favourable provisioning regime (a 
liquidity advantage).81 A VAT exemption for insurance services related to export credits and 
investments applies to all commercial insurance companies, including EXIAR.  
3.79.   In 2020, the amount of export credits supported by EXIAR amounted to USD  17.3 billion 
(USD  3.9 billion in 2014). Over the same period, gross premiums written increased from 
USD 23.5 million to USD  98.1 million, while t he number of insured exporters rose from 112 to 497. 
In 2020, the majority of insurance and reinsurance contracts concluded by EXIAR were short -term 
(less than two  years), with corporate, bank, and sovereign exposure risks accounting for 80.2%, 
10.2%, and 9.6% of the overall portfolio, respectively. In 2020,  almost half of EXIAR's export finance 
went to the engineering industry, followed by chemicals. Europe was the main destination, with 
25.6% of the total share (Chart 3.4).   
 
79 Eximbank, Financial and Guar antee Export Support . Viewed at: http://eximbank.ru/eng/credits/ .  
80 Federal Law No.  245-FZ of 19 July 2011.  
81 EXIAR, Working for EXIAR: The Benefits for Banks . Viewed at: http://www.exiar.ru/en/products/for -
banks/banks_advantages.php .  
Europe 53.0%
Asia19.0%CIS19.0%Africa 5.0%North America 4.0%
Engineering
37.0%
Metallurgy
33.0%Chemicals
19.0%Agriculture
7.0%Export of services
3.0%
Other 2.0%Chart 3. Eximbank of Russia: export finance by geographic market and industry, 2020 
Geographic market Industry
Source:  WTO Secretariat, based on Eximbank annual financial accounting report 2020.(% of total value of export contracts supported) WT/TPR/S/416  • Russian Federation  
- 61 - 
Chart 3.4 EXIAR export finance by geographic market and industry, 2020  
 
Source:  WTO Secretariat, based on data provided by the authorities.  
3.2.5   Export promotion and marketing assistance  
3.80.   In addition to the REC, international market expansion services for Russian entrepreneurs are 
offered by the MED together with the Ministry of Industry and Trade (MIT), including through 
53 overseas trade representations and 105 intergovernmental committee s on economic and 
scientific cooperation. The MED is also involved in the deployment of domestic infrastructure support 
for export -oriented SMEs and the elaboration of service delivery requirements and relevant 
performance indicators. In March 2021, this i nfrastructure comprised 82 regional SME support 
centres and 42 regional integrated centres.82 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 b udgets, with the former accounting for on average near 92% of the funding.  
3.81.   The range of export promotion and marketing assistance activities includes the provision of 
trade and market prospects 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.83 The MED, through the overseas trade representations, also 
organizes business missions that bring together Russian representatives from business and 
academia with potentia l foreign partners.84 Furthermore, the MED has concluded cooperation 
agreements with the executive authorities of 82 subjects of the Russian  Federation, to assist them 
in the planning and implementation of international business development activities for socially 
important local companies or projects, on the basis of mutually agreed terms set out in a "project 
passport".  
3.82.   An Interdepartmental Commission for Exhibition and Fair Activities, comprising, inter alia,  
representatives from the MIT, the MED, sector al ministries, unions, and associations, drafts annually 
a list of overseas exhibitions and fairs in which Russian companies and associations may participate 
with partial funding from the federal budget.85 The final list of overseas events and the budgetar y 
 
82 The regional integrated centres, formerly known as European information and consulting 
(correspondent) centres, are members of the Enterprise Euro pe Network.  
83 Integrated Foreign Economic Information Portal, Russia Is Your Business Partner . Viewed at: 
http://www.ved.gov.ru/exportcountries/businessguide/  and 
http://www.ved.gov.ru/exportcountries/economics_review/ .  
84 The MED publishes the programme of business missions for the coming year by December of the 
current year.  
85 MIT Order No.  374 of 2 December 2008.  
CIS18.2%
Russian Federation
17.1%
Latin America
16.1%Europe 25.6%Asia 12.8%Africa
8.1%North America 2.0%
Enginnering
49.0%Chemicals
17.0%Metallurgy
12.0%Agriculture
7.0%Export of 
services
6.0%Wood products
2.0%
Other
8.0%Chart 3. [EXIAR] Export finance by industry and geographic market, 2020 
Geographic marketIndustry
Source:  WTO Secretariat, based on data provided by the authorities.(% of total value of export contracts supported) WT/TPR/S/416  • Russian Federation  
- 62 - 
appropriation for the co -financing of Russian representations are approved by decree of the 
Government. The budget allocations for co -financing of the participation of companies in exhibitions 
and fairs amounted to RUB  2.6 billion in 2018, RUB  3.1 billio n in 2019, and RUB  0.3 billion in 2020.86 
3.2.6   Special economic zones and regional schemes  
3.83.   Under Federal Law No.  116-FZ of 22  July 2005 on Special Economic Zones in the 
Russian  Federation, four different types of special economic zones (SEZs) may be established : 
industrial and production zones, technology and innovation zones, tourist and recreational zones, 
and port and logistical zones. S EZs in the Russian  Federation aim to attract investments (both 
Russian and foreign) and promote regional socio -economic and industrial development. The key 
objectives of SEZs are: (i)  effective participation of Russian businesses in global value chains; 
(ii) promotion of the economic and investment attractiveness of the Russian  Federation and its 
regions; (iii)  creation of empl oyment opportunities, including high -performance jobs; 
(iv) development of the digital economy; (v)  economic diversification, including export 
diversification; (vi)  promotion of export growth; (vii)  promotion of knowledge, skills, expertise, and 
technology  transfer; (viii)  promotion of manufacturing development (e.g. high -tech industries, 
shipbuilding, transport infrastructure, and tourism); and (ix)  development of new technologies, 
including IT and innovation.  
3.84.   SEZs provide local and foreign investors with a reduction in initial expenditure for up to 30% 
on capital investment. Moreover, SEZs provide tax exemptions, customs and social preferences, and 
favourable administrative procedures, as well as construction of ge neral engineering and transport 
infrastructure financed from both federal and regional budgets. Some of the SEZ key incentives are 
summarized in (Table 3. 12). 
Table 3.12 Special economic zones: selected incent ives, 2021  
 Normal rate  SEZ rate  Note  
Corporate 
income tax  20% 0-2% (federal)  
0-13.5% (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 for 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  EUR 0.1-
EUR 3.5/hp  According to the decision 
of the region (0%)  According to the decision of the region  
Social taxes 
and 
insurance  34% 
15% for SMEs  
7.6% for IT 
companies and 
producers of 
radio-electronics  2017: 14%  
2018: 21%  
2019: 28%  
The preferences were 
lifted in 2020.  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 used in an SEZ 
are subject to t he 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 are applied.  
- Export duties and charges , where 
applicable, are charged from processed 
products leaving an SEZ and destined for 
outside the EAEU.  
VAT 20% 0 Exempt for services by residents in port 
SEZs 
Source:  Information  provided by the authorities . 
 
86 Data provided by the authorities.  WT/TPR/S/416  • Russian Federation  
- 63 - 
3.85.   The form of ownership of SEZs' administration companies is not limited. Customs operations 
regarding goods placed in the territory of SEZs are governed by the EAEU Customs Code. Customs 
duties and taxes payable upon importation, as well as anti -dumping, co untervailing, and safeguard 
duties, are to be paid on imported inputs in case of selling products originating in SEZs to the rest 
of the customs territory of the Russian  Federation (or to other EAEU members). SEZ residents are 
not subject to any export req uirements. Firms in industrial and production SEZs are required to 
invest at least RUB  120 million, and there are no other eligibility criteria for residents of SEZs.  
3.86.   The authorities indicate that at end -2020, there were 38 SEZs (19 industrial and producti on; 
7 technology and innovation; 10 tourism and recreational; and 2 port and logistics). There are 
investors from 41 countries and 830  residents, and 42,120 jobs were created. Private capital 
investment amounted to RUB  447.6 billion (RUB  243.3 billion of f oreign investments) with annual 
investment inflows of RUB  70-RUB 80 billion .87 
3.87.   In addition to SEZs, there are regional schemes: the Skolkovo Innovation Center (SIC)88, the 
Vladivostok Free Port89, territorial development zones90, and the Far Eastern Federa l District.91 The 
SIC hosts research work in the areas of energy efficient technologies, advanced industrial 
technologies, nuclear and space technologies, biomedical technologies, and IT.92 A participant must 
be a Russian legal entity established to carry out research activity under Federal Law No.  244-FZ of 
28 September 2010 on Skolkovo Innovation Center and be given the status of a participant in the 
SIC. The benefits apply for 10 years from registration and include grant support, relaxed rules on 
immigra tion for foreign employees working in the SIC, and tax advantages. Some of the tax 
advantages are exemptions from taxes on profits and property tax, refunds of VAT and import duties, 
and reduced rates for social taxes and insurance contributions. By the en d of 2020, the SIC had over 
2,750 participants (start -ups and research and development (R&D) centres). The combined revenue 
of such start -ups and R&D centres amounted to more than RUB  162.8 billion, the volume of attracted 
investments amounted to RUB  19.1 billion, and the number of created jobs in these start -ups and 
R&D centres exceeded 51,000.   
3.88.   The Vladivostok Free Port (VFP) regime aims to facilitate construction projects and the 
renovation of port terminals; improve transport, logistics, and warehouse f acilities; and encourage 
other investment projects related to port activities. It provides incentives for businesses operating 
in the free port zone, including reduced rates of corporate profit tax and social taxes and insurance 
contributions, exemption fr om property tax, and a facilitated visa regime. On the territory of VFP, 
investors have special tax, customs, and administrative regimes.  
3.89.   The VFP  regime applies to 22 municipalities in 5 regions; it provides 87,010 jobs with an 
estimated investment volume of RUB  1.1 billion. Each region applies its own tax incentives, but 
typically the following regime is provided: 0% income tax for the first 5 yea rs and 12% for the next 
5 years, and a unified social tax at the rate of 7.6% for 10 years. The most important administrative 
preferences are the possibility to apply the procedure of free customs zones and the system of "one 
single window".93 
3.90.   Territorial Development Zones (TDZs) may be established for up to 20 years where state 
support may be provided to accelerate the socio -economic development of regions of the 
Russian  Federation. Regions approved by the Government may apply for the creation of TDZs wher e 
incentives ( e.g. tax incentives, leasing, subsidies, and state guarantees on loans) may be granted. 
By of the end of 2020, no TDZs had been created.  
3.91.   In the Far Eastern Federal District (FEFD), the largest of the eight federal districts  of the 
Russia n Federation but the least populated, development areas may be established for up to 
 
87 Data provided by the authorities.  
88 Federal Law No.  244-FZ of 28  Septem ber 2010 on Skolkovo Innovation Center and Federal Law 
No. 243-FZ of 28  September 2010 on Amending Certain Legislative Acts of the Russian  Federation Following 
the Enactment of the Federal Law on Skolkovo Innovation Center.  
89 Federal Law No.  212-FZ of 13  July 2015 on Vladivostok Free Port took effect on 12  October  2015.  
90 Federal Law No.  392-FZ of 3 December 2011 and Government Resolution No.  326 of 10 April 2013 
provide for the establishment of territorial development zones . 
91 Federal Law No.  473-FZ of 29 December 2014 on Priority Social and Economic Development Areas in 
the Russian  Federation entered into force in March 2015.  
92 Skolkovo, Participants . Viewed at: http://sk.ru/net/participants/ . 
93 Information provided by the authorities.  WT/TPR/S/416  • Russian Federation  
- 64 - 
70 years. Extensive state support is provided to investors aimed at encouraging import substitution 
and industrial development of the region in priority sectors ( e.g. agriculture and fisheries, transport, 
industrial production, and mining). Various incentives are granted, including special tax and customs 
preferences and simplified administrative procedures.94 
3.92.   The Territories of Advanced Socio -Economic Development (TACED) a re the main instruments 
of FEFD development. At present, 22 such territories have been created; they provide 90,824 jobs 
with an estimated investment of RUB  4.374 billion. Residents of TACED receive tax benefits and 
administrative preferences. In particula r, they are subject to the following tax regime: 0% income 
tax for the first five years and 12% for the next five years; 7.6% social tax; 0% land tax for three  to 
five years; 0% corporate property tax for the first five years, and 2.2% for the next five ye ars.95 
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.93.   The EAEU Treaty contains disciplines on the granting of subsidies in relation to industrial 
products.96 
3.94.   EAEU rules on industrial subsidies are to a large extent based on the rules of the 
WTO Agreeme nt on Subsidies and Countervailing Measures but differ in several important respects. 
They prohibit export subsidies, import substitution subsidies, specific subsidies that cause injury to 
any section of the national economy of another member State, specif ic subsidies contingent upon 
local content or trade -balancing requirements, and specific subsidies that may cause serious 
prejudice to the interest of other member States.97 Subsidies other than specific and prohibited 
subsidies are deemed permissible, and  certain types of subsidies are treated as non -actionable. In 
addition to rules on procedural and substantive aspects of countervailing duty investigations by 
national competent authorities of the member States, the EAEU also grants important powers to the  
EEC to enforce implementation of the common rules on industrial subsidies.98 
3.95.   The application of the EAEU substantive disciplines on industrial subsidies is subject to 
country -specific temporary exceptions. In acceding to the WTO, the Russian  Federation "c onfirmed 
that any subsidy programme in place or established after accession within the territory of the 
Russian  Federation would be administered in conformity with the WTO  Agreement on Subsidies and 
Countervailing Measures".99 
3.96.   In its latest notification to  the WTO, the Russian  Federation submitted information regarding 
subsidies granted at the federal and sub -federal levels for 2017 and 2018. At the federal level, 
support was provided to several sectors under different legislative acts and in various forms,  such 
as capital contributions, partial compensation for interest charged on loans, and grants (Table 3 .13). 
At the sub -federal level, the support provided by the sub -federal authorities was usually for specific 
sectors and also took various forms, includi ng tax incentives, compensation for expenditures and 
interest on loans, and grants.100 
 
94 Information provided by the authorities.  
95 Information provided by the authorities.  
96 EAEU Treaty, Article  93, Annex 28 (industrial subsidies). See the Secretariat Factual Present ation in 
WTO document WT/REG358/1, 13 July 2018, paras.  3.117 -3.125. For developments relating to support to 
agriculture, see Section 4.1.3.  
97 EAEU Treaty, Annex 28, Section II.  
98 One aspect of this is the EEC's power to make rulings on whether a subsidy granted by a member 
State is consistent with the Voluntary Harmonization Agreement concluded in May 2017 pursuant to 
paragraph  7 of Annex 28. If the EEC determines that a subsidy is in conformity with that Agreement, member 
States may not take action again st such a subsidy under their domestic countervailing duty legislation.  
99 WTO document WT/ACC/RUS/70, 17 November 2011, para. 698.  
100 See WTO document G/SCM/N/343/RUS, 14  January  2020.  WT/TPR/S/416  • Russian Federation  
- 65 - 
Table 3.13 Federal support programmes, 2017 and 2018  
(RUB million)  
Support to  2017  2018  
Civil industries  2,964  5,716  
Traditional and new materials  1,700  776 
Light and textile industry, arts and crafts, juvenile products industry  3,567  3,671  
High-tech products in civil industries  5,637  7,066  
Transport and specialized machine building  169,223  192,035  
Industrial infrastructure and operation support infrastructure in 
industry  224 185 
Medicines production  619 834 
Medical products  1,235  1,480  
Shipbuilding  2,389  2,086  
Fisheries industries  198 114 
Civil aviation and air navigation service  300 407 
Foreign economic activity  0 186 
Establishment and development of Skolkovo Innovation Center  11,860  11,256  
Auto investment programme  .. .. 
Territories with special economic regimes  .. .. 
.. Not available.  
Source:  WTO document G/SCM/N/343/RUS, 14 January  2020.  
3.97.   Various tax incentives are available at both the federal and sub -federal levels. Under the Tax 
Code, regional executive authorities have some flexibility in offering tax -rate and tax -base 
concessions, and setting the corresponding eligibil ity criteria101, 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 chosen to rely on 
taxpayers' self-assessment. Consequently, considerable tax rate dispersion across regions, 
economic activities, and types of taxpayers continue to exist.102 
3.98.   Federal activity -specific incentives include: (i)  a 150% deduction of qualifying R&D 
expenditures from the prof it tax base; (ii)  accelerated depreciation for fixed assets used in science 
and technology; (iii)  social security contributions at lower rates for technology and software 
companies; and (iv)  exemption of capital gains on listed shares in Russian high -tech companies from 
profit tax, if acquired after 1  January 2011 and held for more than five years.103 In addition, the 
overall corporate profit tax rate has been set at zero during 2012 -22 for providers of education and 
medical services.104 
3.99.   Various tax incentive s remain in place for the oil and natural gas industries, with concessions 
depending on field characteristics, such as age and accessibility. Trunk gas pipelines and related 
structures, gas production project sites, and helium production and storage facili ties are eligible for 
a corporate property tax waiver during 2015 -34, if the initial commissioning took place after 
1 January 2015.105 
3.100.   Under Government Decree No.  191 of 23  February  2019 (as amended on 4  August  2020), 
the Corporate Competitiveness Enhanceme nt Programme (KPPK) is being implemented. The KPPK 
aims to increase production and competitiveness of industrial products with high added value by 
providing access to subsidized investment loans for the creation of production in the 
Russian  Federation and/ or abroad, and certain financial instruments for products destined for 
exports.  
 
101 Most regional executive authorities require a minimum level of capital  investment or place 
restrictions on the type of business activity undertaken, but in some cases employment and wage rate 
considerations constitute the main eligibility criteria.  
102 PwC, Russian  Federation: Corporate – Tax Credits and Incentives . Viewed at:  
https://taxsummaries.pwc.com/russian -federation/corporate/tax -credits -and-incentives . 
103 The same exemption also applies to capital gains realized on the s ale of unlisted shares and 
participations in any Russian company.  
104 PwC, Russian  Federation: Corporate – Tax Credits and Incentives . 
105 PwC, Russian  Federation: Corporate – Tax Credits and Incentives . WT/TPR/S/416  • Russian Federation  
- 66 - 
3.3.2   Standards and other technical requirements  
3.101.   There have been no major changes to the legal and institutional framework for standards, 
technical regulations, and conformity assess ment procedures since the previous Review.106 An 
EAEU -level Agreement on the Intra -Union Circulation of Products Not Covered by EAEU Technical 
Regulations and Rules for Ensuring Their Safety was concluded on 3 February 2020. Pursuant to this 
Agreement, memb er States retain regulatory competence to develop and apply within their territory 
technical regulations in the areas of defence and security, protection of state secrets, and nuclear 
power.  
3.102.   The EAEU Treaty (Articles 51 -55 and Annexes 9 -11) sets out a regu latory system based on 
a set of requirements and procedures common to all member States.107 Common requirements may 
take the form of compulsory conformity assessment for product groups (originally 67) slated to 
become subject to EAEU technical regulations108 and lists of standards whose voluntary application 
is deemed to ensure compliance with EAEU technical regulations (lists for 42 technical regulations 
approved as of 2020). Procedural harmonization initiatives have resulted in standardized conformity 
asses sment schemes and documents, a single register of accredited conformity assessment entities, 
a single register of issued conformity assessment documents, and mutual recognition of 
measurement uniformity assurance outcomes.109 
3.103.   The EEC and the competent bodie s of each member State may develop and submit draft 
technical regulations to the EEC Council for approval and adoption. Enforcement of technical 
regulations is carried out in accordance with national legislation. The EEC adopted recommendations 
on cooperat ion among compliance -controlling bodies and on their collaboration with member States' 
customs administrations in the enforcement of EAEU technical regulations in 2018 and 2019, 
respectively.110 A draft Agreement on the Principles and Approaches of State Co ntrol (Surveillance) 
of Compliance with the Requirements of EAEU Technical Regulations is at the signing stage.  
3.104.   Standardization work may be carried out at the supranational and national levels. The 
Federal Technical Regulation and Metrology Agency (Rosstan dart) remains the national 
standardization body. Rosstandart represents the Russian  Federation in international and regional 
standards setting organizations, such as the International Organization for Standards (ISO), the 
International Electrotechnical Com mission (IEC), the Euro Asian Council for Standardization, 
Metrology and Certification (EASC), the Pacific Area Standards Congress (PASC), and the Standards 
and Metrology Institute for Islamic Countries (SMIIC).111 Rosstandart also serves as the supervising  
authority for legal metrology, conformity assessment, and liability matters arising from the violation 
of technical regulations.  
3.105.   At end -June 2021, in addition to 43 EAEU technical regulations, there were two national -
level technical regulations (Table  3.14) and 36,839 national standards in force in the 
Russian  Federation. Between June 2016 and June 2021, the EEC Council adopted 15 EAEU technical 
regulations, and the Russian  Federation enacted over 7,500 national standards. The authorities 
affirm that stand ards and technical regulations implemented i n the Russian  Federation a re generally 
based on international standards or r elevan t parts thereof, excep t when  fundamental climatic, 
geographical, or technological factors render the latter in effective or inappropriate for the fulfilment 
of legitimate objectives.  
 
106 WTO document WT/TPR/S/345/Rev.1, 6 December 2016, Sect ion 3.1.8.  
107 WTO document WT/REG358/1, 13 July 2018, Section 3.4.1.  
108 The EAEU technical regulations in force can be viewed at: 
http://www.eurasiancommission.org/ru/act/texnreg/deptexreg/tr/Pages/TRVsily.aspx . 
109 EEC (2020), EAEU  Figures and Facts: Technical Regulation and SPS Measures . 
110 EEC Collegium Recommendations No.  9 of 19 June 2018 and No.  22 of 23 July 2019.  
111 Rosstandart h as not accepted the WTO TBT Code of Good Practice. A national standard (GOST R 1.2 -
2020), approved by Rosstandart Order No.  328-ST of 30 June 2020, sets out updated rules for the 
development, adoption, updating, amendment, and termination of Russian standa rds. WT/TPR/S/416  • Russian Federation  
- 67 - 
Table 3.14 Technical regulations, 2016 -21 
Technical regulation  Legal basis  
On the safety of maritime transport facilities  Government Resolution No.  620 of 12 August 2010, last 
amended on 7 October 2019  
On the safety of inland water transport facilities  Government Resolution No.  623 of 12 August 2010, last 
amended on 6 August 2 020 
On tobacco products  Replaced by EAEU technical regulation 035/2014 as from 
15 November 2017  
Source:  Information provided by the authorities.  
3.106.   Between June 2016 and March 2021, the Russian  Federation submitted 41 regular 
notifications to the WTO Committee on Technical Barriers to Trade (TBT Committee), all of which 
concerned EAEU -level measures. In 21 submissions (46% of the total) the allowed pe riod for 
comments was 60 days or more. Only three notifications allowed for a comment period of less than 
45 days.  
3.107.   The Russian Scientific and Technical Centre for Information on Standardization, Metrology 
and Conformity Assessment (Standartinform) is the national enquiry point, and the MED is the 
notification authority under the Agreement on Technical Barriers to Trade. Between June 2016 and 
March 2021, the Russian  Federation was asked to respond to nine specific trade concerns raised by 
several Members to  the TBT Committee. During that period, the Russian  Federation also joined 
various delegations in raising eight specific trade concerns.112 
3.108.   Accreditation in the EAEU is carried out in accordance with member States' respective 
national systems.  Applicants wi shing to carry out compulsory conformity assessment activities must 
be registered as a legal entity in the EAEU and must obtain accreditation in the jurisdiction of 
registration. Accredited conformity assessment entities (certification bodies and testing l aboratories) 
may also be inscribed in the EAEU's single register; the relevant eligibility criteria were adopted in 
December 2018.113 Conformity assessments performed by entities inscribed in the single register 
are recognized throughout the EAEU. EAEU memb er States aim to conduct, on an ongoing basis, 
joint comparative assessments of accreditation bodies in order to achieve equivalence of national 
systems.  
3.109.   At end-March 2021 , 5,771 testing laboratories were accredited in the Russian  Federation, of 
which 1,38 3 were inscribed in the EAEU's single register. The corresponding figures for product and 
service certification bodies were 584 and 273, respectively (Table 3. 15). 
Table 3.15 Entities accredited in the Russian Federation, March 2021  
Entities  Accreditation criteria  No. of 
accreditations  EAEU 
register  
Testing laboratories  GOST ISO/IEC 17025  5,771  1,383  
Inspection bodies  GOST R ISO/IEC 17020  14 6 
Interlaboratory comparison (proficiency testing) 
providers  GOST ISO/IEC 17043  19 0 
Calibration laboratories and metrology service 
providers  GOST ISO/IEC 17025  2,184  0 
Quality management system certification bodies  GOST R ISO/IEC 17021  111 0 
Product/service certification bodies  GOST ISO/IEC 17065  584 273 
Personnel certification bodies  GOST R ISO/IEC 17024  2 0 
Source:  Information provided by the authorities.  
3.110.   The Federal Service for Accreditation (RusAccreditation) is the national authority for 
accreditation. Through RusAccreditation, the Russian  Federation is a party to 14 TBT-related 
technical cooperation instruments. RusAccreditation represents the Russian  Federation in relevant 
international initiatives, including the  International Laboratory Accreditation Cooperation (ILAC), the 
International Accreditation Forum, the Asia Pacific Accreditation Cooperation (APAC), and the EASC. 
 
112 WTO, Technical Barriers to Trade Information Management System. Viewed at: 
http://tbtims.wto.org . 
113 EEC Council Decision No.  100 of 5 December 2018.  WT/TPR/S/416  • Russian Federation  
- 68 - 
During the review  period, RusAccreditation joined the APAC mutual recognition agreement (MRA) 
and the ILAC MRA for the accreditation of testing and calibration laboratories.  
3.111.   General requirements for the packaging of goods and labelling requirements for foodstuffs 
are set o ut in EAEU technical regulations TR CU 005/2011 and TR CU 022/2011, respectively. In 
addition, packaging, marking, and labelling requirements are stipulated in all product -specific EAEU 
technical regulations. The authorities indicate that no packaging, mar king, or labelling requirements 
are established at the national level.  
3.112.   Two agreements concluded in 2014 set the basis for the gradual establishment of a unified 
EAEU market for medicines and medical devices. As at December 2020, the body of EAEU legislatio n 
governing the intra -Union circulation of medicines and medical devices comprised more than 
80 normative legal acts (EEC decisions and recommendations). The first volume of a EAEU 
Pharmacopoeia, a document intended to ensure a common approach to assessing  the quality of 
medicines, was adopted in 2020.114 A Union -wide regime for the compulsory registration of 
medicines superseded the relevant national systems as from 1 January 2020.115 The transition period 
during which EAEU registration is an optional altern ative to the national registration of medical 
devices is set to end on 31 December 2021. In the Russian Federation, the Federal Service for 
Surveillance in Healthcare (Roszdravnadzor) under the Ministry of Health remains in charge of the 
circulation of med icines and medical devices.  
3.3.3   Sanitary and phytosanitary requirements  
3.113.   As with standards and technical regulations, the legal and institutional framework for SPS 
protection is a mixture of national and EEC competences. There were no major changes to that 
framework during the review period.116 In 2018, the Russian  Federation adopted rules for controls 
carried out at overseas production, processing, and dispatch sites of planting materials intended for 
importation into its territory.117 
3.114.   Pursuant to the EAEU Treaty  (Articles 56 -57 and Annex 12), the EEC remains responsible for 
coordinating the elaboration and implementation of SPS measures by EAEU member States.118 Its 
remit includes: (i)  approving the common lists of goods subject to sanitary -epidemiological, 
veteri nary, and phytosanitary controls at the EAEU border; (ii)  setting common sanitary, 
epidemiological, veterinary, phytosanitary, and hygienic requirements for goods marketed within 
the EAEU; (iii)  approving standardized SPS certificates119; and (iv)  establish ing unified procedures 
for inspections and market monitoring activities carried out by the competent national authorities. 
The EEC also adopts EAEU technical regulations, some of which relate to SPS measures.  
3.115.   As at March 2021, common phytosanitary controls  on imports from third countries applied 
to 128 product groups. The corresponding figures for common veterinary and 
sanitary -epidemiological controls were 110 product groups and 19 product groups, respectively.120 
Goods marketed within the EAEU were subject  to 106 phytosanitary requirements, and a range of 
veterinary and sanitary -epidemiological requirements. The bulk of these requirements were set out 
in more than 25  EAEU technical regulations. The authorities affirm that no export restrictions or 
prohibiti ons were introduced for SPS reasons during the review period, and all SPS -related import 
restrictions were duly notified to the WTO.  
 
114 EEC (2020), EAEU  Figures and Facts: Technical Regulation and  SPS Measures . 
115 The files of any medicines registered under member States' national systems prior to that date must 
be brought in line with the EAEU regime by 31 December 2025.  
116 WTO document WT/TPR/S/345/Rev.1, 6 December 2016, Section  3.1.9.  
117 Governmen t Resolution No.  128 of 8 February 2018  on the Approval of Rules for C ontrols Carried Out 
at Overseas Production (including Processing) and Dispatch Sites of Planting Materials Intended for Importation 
Into the Russian Federation from Foreign States or Gro ups of Foreign States Where Quarantine Objects Typical 
for such Planting Materials Have Been Revealed in Accordance with International Treaties of the  Russian 
Federation".  
118 WTO document WT/REG358/1, 13 July 2018, Section  3.4.1.1.  
119 The competent national  authorities of a EAEU member State may agree with third -country competent 
authorities on the admissibility of certificates that differ in format from those standardized at the EAEU level.  
120 Commission Decisions No.  299 of 28 May 2010 (last amended on 8 De cember 2020), No.  317 of 
18 June 2010 (last amended on 8 December 2020), and No.  318 of 18 June 2010 (last amended on 
5 April 2021).  WT/TPR/S/416  • Russian Federation  
- 69 - 
3.116.   Pursuant to the EAEU Treaty, member States can unilaterally implement provisional SPS 
measures that have not been harmonize d at the Union level, declare disease -free and pest -free 
zones (based on the regionalization principle), and implement a higher level of protection than in 
the rest of the EAEU, based on scientific justification.121 Any national laws relating to SPS measure s 
are to be applied to the extent that they do not contradict the EAEU Treaty and the acts constituting 
the law of the EAEU. The Russian authorities affirm that all unilaterally implemented SPS measures 
affecting international trade are duly notified to th e WTO.  
3.117.   The institutional framework for SPS measures within the Russian  Federation remains broadly 
unchanged since the previous Review.122 The Federal Service for Veterinary and Phytosanitary 
Surveillance (Rosselkhoznadzor) under the Ministry of Agriculture remains responsible for 
implementing and enforcing EAEU and domestic measures related to plant and animal health. The 
remit of Rosselkhoznadzor also comprises drugs for veterinary use, pesticides and agrochemicals, 
animal feed, genetically modified organisms, diseases common to humans and animals, and food 
safety at the border. According to the authorities, Rosselkhoznadzor operates 10 electronic 
information systems aimed at facilitating the admission of imports subject to SPS controls. These 
systems also serve as the backbone for a rapid alert system, operated in conformity with the relevant 
provisions of the Agreement on Trade Facilitation.  
3.118.   The Federal Service for Surveillance on Consumer Rights Protection and Human Wellbe ing 
(Rospotrebnadzor), reporting directly to the Government, remains in charge of, inter alia , developing 
and approving national sanitary and epidemiological guidelines and hygienic norms, as well as 
carrying out sanitary and epidemiological surveillance.  
3.119.   The Russian Scientific and Technical Centre for Information on Standardization, Metrology 
and Conformity Assessment (Standartinform) is the national enquiry point, whereas the MED is the 
notification authority under the SPS  Agreement. The Russian  Federatio n submitted 39 regular and 
49 emergency notifications to the WTO between June  2016 and March 2021. SPS measures adopted 
at the EAEU level were the subject of nearly half of the regular notifications. Approximately 87% of 
the measures announced in regular n otifications and 92% of emergency measures were based on 
international standards. During the same period, the Russian  Federation was asked to respond to 
six specific trade concerns raised by several Members at the Committee on Sanitary and 
Phytosanitary Me asures. The Russian  Federation also raised four specific trade concerns and 
supported six concerns raised by other Members.123 
3.3.4   Competition policy and price controls  
3.3.4.1   Current legal framework, recent amendments, and development prospects  
3.120.   The National Plan on the Development of Competition Policy in the Russian Federation for 
the years 2018 -20 was adopted in 2017, in the form of a Presidential Decree on State Competition 
Policy Guidelines. The national plan aims to , inter alia : (i) increase consumer satisfaction  by 
expanding the range of goods, works, and services, improving their quality, and reducing their 
prices; (ii)  increase economic efficiency and competitiveness of economic entities, including by 
ensuring equal access to goods and services of natural monop olies and public services necessary for 
conducting business activities; and (iii)  ensure stable growth and development of a multisectoral 
economy. Besides the main aims, the national plan also sets out key indicators of competition 
development and expected  results to be achieved by the end of 2020124, all of which are set to serve 
the wider goals of strengthening the economy, reducing the number of anti -competitive 
 
121 EEC (2020), EAEU  Figures and Facts: Technical Regulation and SPS Measures . 
122 WTO document WT/TPR /S/345/Rev.1, 6 December 2016, Section  3.1.9.  
123 WTO, Sanitary and Phytosanitary Information Management System. Viewed at: 
http://spsims.wto.org .  
124 The targets are to: (i)  ensure the presence of at least three economic  entities (at least one of which 
should be a private entity) in any given market, except for the markets of natural monopolies; (ii)  reduce the 
number of anti -competitive arrangements by half compared with 2017; and (iii)  increase the share of 
set-asides f or SMEs in government procurement transactions.  WT/TPR/S/416  • Russian Federation  
- 70 - 
arrangements, and, importantly, decreasing the presence of the State in certain commodity 
markets.125 
3.121.   In addition, the national plan contains a list of industries in which competition should be 
promoted. In accordance with the list, competition should be enhanced in, inter alia , the healthcare 
sector, with one of the expected results being the reduction of  prices for medicines and medical 
supplies for consumers. Other sectors include telecommunications, public utilities, and transport 
services. To secure enhancement of competition and liberalization of markets in specific sectors, the 
Government adopted a r oad map containing detailed steps, deadlines, and responsible bodies.126 
According to the Federal Antimonopoly Service (FAS),  200 of 228 measures set out in the road map 
had been implemented by the beginning of 2021.127 
3.122.   As in the previous reporting period, t he legal framework regulating competition policy 
comprises the Constitution, the Civil Code, Federal Law No.  135-FZ of 26 July 2006 on the Protection 
of Competition (last amended in February 2021), and other federal laws. In addition, competition 
policy ca n be regulated by government resolutions and by the FAS, if envisaged in the legislation.  
3.123.   Competition in cross -border markets within the EAEU (of which the Russian  Federation is a 
founding member) is regulated by unified provisions of the EAEU Treaty.128 EAEU member States 
are allowed to establish additional prohibitions in their legislation, as well as additional requirements 
and limitations regarding prohibitions.129 The EAEU Treaty prohibits the abuse of market dominance, 
anti-competitive agreements, and u nfair competition, and it confers enforcement powers on the 
EEC.130 It further provides for the harmonization of member States' national legislation in the area 
of competition policy on the basis of general principles, including effective control of economi c 
concentrations, 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)131, and codification and applic ation of penalties.  
3.124.   During the review period, Federal Law No.  135-FZ was amended several times.132 Notably, 
the amendments to the Law resulted in a prohibition of creating and operating unitary entities133 in 
competitive markets.134 Another amendment related to the suspension of the execution of FAS 
rulings. Before the amendment, compliance with FAS rulings was suspended if an appeal was lodged 
 
125 The IMF recently concluded that due to the State's large presence in certain markets, some state -
owned enterprises have dominant positions. IMF (2018), Russian  Federation: Selected Issues , IMF Country 
Repor t No. 18/276.  
126 Government Decree No. 1697 -r of 16 August 2018 on Approval of the Action Plan ("Road Map") for 
the Development of Competition in the Sectors of the Economy of the Russian Federation and the Transition of 
Certain Spheres of Natural Monopolie s from the State of Natural Monopoly to the State of a Competitive Market 
for 2018 -2020. 
127 FAS (2019), Report on Competition Policy in the Russian  Federation in 2019 to the Organisation for 
Economic Co -operation and Development . Viewed at: https://fas.gov.ru/documents/b -n-3609af5f -7476-4122-
bb77-d04c49d96ca7 . 
128 Criteria to decide on the cross -border nature of the market were approved by EEC Council Decision 
No. 29 of 19 December 2012. They can be viewed at: 
http://www.consultant.ru/document/cons_doc_LAW_139427/66b1bf7f1776c2a74da3b3466 18fc41bf5439e56/#
dst100009 . 
129 See the EAEU Treaty, adopted on 29 May 2014, which can be viewed at: 
https://www.wto.org/english/thewto_e/acc_e/kaz_e/WTACCKAZ85_LEG_1.pdf . 
130 EEC decisions on antitrust cases can be appealed to the Court of the Eurasian Economic Union, see 
Annex 1, Articles  3 and 9; Annex 1, Article  13; and Annex 2, Article  106 of the EAEU  Treaty.  
131 As regards preferences granted by state or municipal authori ties, Annex 19, para.  2(4), to the EAEU 
Treaty defines "State or Municipal Preference" as the "provision by executive authorities, local authorities of 
the member States, other bodies, or organizations exercising functions of these bodies to individual bus iness 
entities (market participants) [of] preferences that provide them with more favorable conditions of activities by 
transferring State or municipal property, other objects of civil rights or by way of providing property 
exemptions, State or municipal g uarantees".  
132 Federal Law No.  135-FZ was updated 18 times between 29 July 2017 and 17 February 2021. For 
details on competition policy regulations, see WTO document WT/TPR/S/345/Rev.1, 6 December 2016, 
Section  3.3.4.  
133 A unitary enterprise is defined as a  commercial organization that does not have ownership over the 
property attached to it. Only state and municipal enterprises can take the form of a unitary enterprise.  
134 Federal Law No.  485-FZ of 27 December 2019 on Amending the Federal Law on State and M unicipal 
Unitary Enterprises and Federal Law on the Protection of Competition.  WT/TPR/S/416  • Russian Federation  
- 71 - 
before a court. After the amendment, state and municipal bodies are no longer exempted from  the 
requirement to comply with FAS rulings even when an appeal has been filed with a court.135 
3.125.   Regarding the internal monitoring of risks in economic entities, the notion of "internal 
compliance with the anti -monopoly regulation" was introduced to encourag e companies to 
implement special anti -trust compliance measures. The mechanism helps to reduce the risk of 
violating anti -monopoly legislation.  Any economic entity, whether public or private, can adopt 
internal acts to assess risks of anti -monopoly legisla tion violations, measures to decrease risk, and 
measures to control the functioning of such internal systems.136 The internal acts establishing an 
internal control system can be submitted to the FAS for a conclusion about the compliance of such 
acts with an ti-monopoly legislation.  
3.126.   In accordance with information provided by the authorities, if an internal act on 
anti-monopoly compliance or its draft contains all the mandatory elements provided for in 
Article  9.1(2) of Federal Law No.  135-FZ, and there are no provisions that contradict the 
anti-monopoly legislation, the FAS reaches a positive conclusion on compliance with the 
requirements of the anti -monopoly legislation. In this case, such an economic entity does not violate 
the anti -monopoly legislation if it s actions are carried out within the agreed rules of the compliance 
system. After completion of this procedure, the time -periods between inspections of a particular 
economic entity by the FAS can be increased from three to five years, or the investigation can result 
in the lack of inspections by the FAS in relation to an economic entity. In case of non -compliance 
with the requirements of anti -monopoly legislation, the FAS reaches a negative conclusion.  
3.127.   Regarding the fight against cartels, a Government Decre e was adopted that approved the 
Programme of Inter -Agency Measures for 2019 -2023 for the Detection and Combatting of Cartels 
and other Agreements Limiting Competition.137 As reported by the Government, around 400 cases 
of violation of the anti -monopoly regu lations are registered every year, 85% of which relate to 
cartels.138 The Programme is thus "designed to consolidate efforts and resources of the authorities 
to defend the national interests of the Russian  Federation and create unified practice for preventi ng 
cartels and anticompetitive agreements".139 The Programme also entails close cooperation between 
the FAS and different law enforcement authorities to curb anti -monopoly arrangements.  
3.128.   Both ex ante and ex post  notifications are possible under merger contro l rules. For ex ante  
control, the following financial thresholds are applicable: (i)  the aggregate worldwide value of assets 
of the acquirer's group and the target's group of companies exceeds RUB  7 billion, and the aggregate 
worldwide value of assets of t he target's group of companies exceeds RUB  400 million; or (ii)  the 
aggregate worldwide turnover of the acquirer's group and the target's group of companies from the 
sale of goods, works, and services during the last calendar year exceeds RUB  10 billion, a nd the 
aggregate worldwide value of assets of the target's group of companies exceeds RUB  400 million.140 
These thresholds are not applicable to financial organizations. Ex post  notification is applicable only 
to cases of intra -group transactions where the information on the group has already been provided 
to the competition authorities ahead of the transaction.  
3.129.   During the review period, the FAS issued several guidelines and recommendations aimed at 
facilitating compliance with anti -monopoly regulations.141 Examples of such guidelines include: 
(i) the Recommendation on Practices in the Use of Information Technology in Trade, Including Those 
Related to the Use of Price Algorithms, which delineates practices that violate anti -monopoly 
regulations from practices that can be deemed acceptable when trading non -food products using 
 
135 Federal Law No.  509-FZ of 27 December 2019 on Amending Article  52 of the Federal Law on the 
Protection of Competition.  
136 Federal Law No.  33 of 1 March 2020 on Amending the F ederal Law on the Protection of Competition.  
137 The Decree can be viewed at: http://www.consultant.ru/document/cons_doc_LAW_327701%20/ . 
138 See introduction to the session of the Govern ment on 27 June 2019 by Dmitry Medvedev, which can 
be viewed at: http://government.ru/news/37179/ . 
139 The Government -Approved Inter -Department Programme for Exposing and Suppressing Cartels of 
2 July 2019 can  be viewed at: http://en.fas.gov.ru/press -center/news/detail.html?id=54172 . 
140 Ilene Knable Gotts (ed.) (2020), Merger Review Control , 11th edition.  
141 The FAS guidelines and recommendations can be viewed at: 
https://fas.gov.ru/documents/type_of_documents/acts . WT/TPR/S/416  • Russian Federation  
- 72 - 
Internet -based technologies and algorithms142; (ii) Guidelines on Determination of the Amount of 
Losses Caused as a Result of Violation of the Antimonopoly Legislation, which clarify issues related 
to the implementation of provisions on abuse of a dominant position143; and (iii)  Guidelines on 
Certain Issues in the Analysis of the State of Competition, which aim to introduce a unified 
application of anti -monopoly legislation when analysing the state of competition.144 
3.130.   On 4 March 2021, the Supreme Court issued a so -called "Plenum", with a view to ensuring 
the unified application of anti -monopoly rules.145 In addition to procedural aspects relating to the 
hearing of anti -monopoly cases, the Plenum clarifies other matters, such as the need to assess the 
causal link between bidders' behaviour in the government procurement auction and the subsequent 
change of prices, the recommendation to take into account other economic factors when deciding 
on dominant position in cases when the company controls less than 50% of the market, and the 
definition of the term "group of entities".  
3.131.   Anti-monopoly legislation continu ed to be applied during the COVID -19 pandemic. The FAS 
published an announcement urging economic entities not to abuse the emergency situation to gain 
extra profit. Moreover, the FAS confirmed that it would closely monitor the prices of goods, such as 
face masks and foodstuffs, in specific markets. Cartels or other anti -competitive arrangements were 
not exempted as a result of the pandemic.146 The anti -monopoly authority issued, inter alia, 
warnings to market participants in order to prevent excessive demand, a shortage of such goods, 
and an increase of prices.  
3.132.   Regarding the future development of anti -monopoly legislation, discussions are underway 
on the so -called "fifth anti -monopoly package", which envisages legislative amendments. The 
amend ments aim to reflect recent developments, especially in the areas of the digital economy and 
data circulation.147 In addition, a National Competition Development Plan 2021 -25 was developed 
by the FAS. It focuses on the enhancement of competition in the foll owing priority areas: healthcare, 
the agro -industrial complex, financial markets, road construction, science and education, and 
information technology. Digitalization of anti -monopoly regulation is another of the Plan's priorities 
for the upcoming years.148 In order to ensure the necessary digital transformation aimed at 
improving the quality of the implementation of the functions assigned to the anti -monopoly 
authority, the FAS is implementing a project to develop an automated information system, called 
Anti-Cartel, that uses artificial intelligence and big data technologies  to identify signs of cartel 
collusion in the markets.  
3.3.4.2   Enforcement of anti -monopoly regulation  
3.133.   The FAS and its territorial branches, operating directly under the authority of the 
Governme nt149, are responsible for administering and enforcing anti -monopoly regulation.150 The 
FAS has a mandate that includes price regulation, public and defence procurement and procurement 
 
142 The FAS Executive Council Recommendation on Practices in the Use of Informa tion Technology in 
Trade, Including Those Related to the Use of Price Algorithms of 18 March 2019 can be viewed at: 
https://fas.gov.ru/documents/684828 . 
143 The FAS Guidelines on Determination of the Amount  of Losses Caused as a Result of Violation of the 
Antimonopoly Legislation can be viewed at: https://fas.gov.ru/documents/561690 . 
144 The FAS Guidelines on Certain Issues in the Analysis of the State of Com petition can be viewed at: 
https://fas.gov.ru/documents/685047 . 
145 See the Supreme Court Decision of the Plenum No.  2 of 4 March 2021, which can be viewed at: 
http://supcourt.ru/documents/own/29742/ . 
146 See the Antitrust Law and Legislation in Russia During COVID -19, which can be viewed at: 
https://cms.law/en/int/expert -guides/cms -expert -guide -to-antitrust -law-and-legislation -during -covid-
19/russia . 
147 FAS, "Fifth Anti -Monopoly Package Will Be Adopted after Discussions", 4 December 2020. Viewed at: 
https://fas.gov.ru/publications/22338 . 
148 FAS (2019), Report on Competition Policy in Russian  Federation in 2019 to Organisation for Economic 
Co-operation and Development . Viewed at: 
https://en.fas.gov.ru/upload/other/FAS%20Annual%20Report%202019.pdf . 
149 Presidential Decree No.  21 of 21 January 2020 on the Structure of Federal Bodies of Executive 
Branch.  
150 Federal Law No.  135-FZ of 26 July 2006, Article  23 (last amended in February 2021).  WT/TPR/S/416  • Russian Federation  
- 73 - 
by specific types of legal entities, compliance with the Law on Advertisi ng, and foreign investments 
in strategic industries.151 
3.134.   In the exercise of its competition policy functions, the FAS, besides conducting an 
investigation (fact -finding) and deciding on a case at first instance, also proposes draft laws, adopts 
acts of secon dary legislation, and is vested with other powers related to the regulation of competition 
policy. As a first instance of hearing a case, the FAS can adopt: (i)  conclusions on the facts of the 
case; (ii)  warnings; (iii)  decisions; and (iv)  instructions. FA S decisions and instructions may be 
appealed before a court within three months of their adoption. Decisions and/or instructions of FAS 
territorial branches can be appealed to the collegial body of the FAS.  
3.135.   Violations of Federal Law No.  135-FZ are subject to administrative and criminal penalties, 
depending on the nature and gravity of the offence. Administrative fines may be imposed on legal 
entities and individual officers; in certain cases, officers may also be disqualified from exercising 
their functions  for up to three years. The Code of Administrative Offences establishes a detailed 
mechanism for the calculation of fines, including all mitigating and aggravating circumstances. The 
legal entity or the individual officer can appeal the administrative fine  in а court. Criminal liability 
provisions are in place for any competition -restricting agreement (cartels) that caused major 
damages (exceeding RUB  10 million) to physical persons, organizations, or the State, or brought the 
perpetrators major earnings (e xceeding RUB  50 million). Criminal penalties include fines 
(RUB 300,000 -RUB 1 million), disqualification to hold certain positions or engage in certain 
activities, and prison terms of up to seven years.  
3.136.   Two types of leniency programmes are included in the Code of Administrative Offences 
No. 195-FZ of 30 December 3001 and the Criminal Code No.  63-FZ of 13 June 1996. The 
administrative leniency programme takes the form of a note to Article  14.32 of the Code of 
Administrative Offences.152 Under the programme, f ull immunity can be granted for all 
anti-competitive arrangements (such as cartels and concerted practices). The first legal entity (or 
group of entities) voluntarily informing the FAS about an anti -competitive arrangement to which it 
is a party gets full immunity if it: (i)  stops its participation in the anti -competitive arrangement; and 
(ii) provides the FAS with documents and/or information that the FAS did not already possess and 
that will help establish the existence of the anti -competitive arrangement . Immunity from 
administrative fines does not guarantee immunity from criminal liability. Such immunity is 
conditional on active cooperation and providing compensation for the damages caused by an 
anti-competitive agreement.153 
3.137.   Data on leniency applications  received by the FAS during the review period (as well as other 
competition enforcement data) are shown in Table 3. 16. Anti -competitive practices were disclosed 
on various markets, including healthcare, construction, telecommunications, and transport.154 
Table 3.16 Competition enforcement, 2016 -20 
 
2016  2017  2018  2019  2020  
Leniency applications examined (Administrative 
Code, Article  14.32)  91 118 89 137 196 
Claims concerning violations related to the abuse 
of a dominant position by an economic entity  29,935  23,824  28,441  29,291  36,929  
Claims examined concerning violations related to 
actions/arrangements of economic entities that 
restrict competition  1,390  1,757  2,069  2,812  2,388  
Merger notifications:  83 128 189 144 133 
• Approved  83 128 189 144 133 
• Disapproved  0 0 0 0 0 
Proceedings initiated  4,039  3,534  3,223  3,029  2,395  
Total decisions made confirming a violation  2,735  2,621  2,486  2,236  1,823  
Total administrative fines imposed  6,048  6,458  8,911  9,526  8,598  
 
151 Government Resolution No.  331 of 30 June 2004 (last amended in May 2020) on Approving the 
Statute of the Federal Anti -monopoly Service.  
152 Code of Administrative Offence s No. 195-FZ, Article  14.32 (last amended in February 2021).  
153 Criminal Code No.  63-FZ, Article  178 (last amended in February 2021) . 
154 FAS, Report on the State of Competition in the Russian  Federation in 2019 . Viewed at: 
https://fas.gov.ru/documents/687048 . WT/TPR/S/416  • Russian Federation  
- 74 - 
 
2016  2017  2018  2019  2020  
Prescription s issued  1,894  1,856  1,811  1,404  1,005  
Appeals made in the previous period  1,223  683 526 512 391 
Appeals made in the review period   668 670 632 571 510 
Decisions declared by court as invalid in the 
previous period  277 179 119 121 88 
Decisions declared by court as invalid in the review 
period  14 31 11 8 6 
Source:  Data provided by the FAS.  
3.3.4.3   International cooperation  
3.138.   The Russian  Federation actively cooperates with international and regional organizations 
(such as the OECD, UNCTAD, and BRICS) and foreign competition agencies in order to support the 
integration of the Russian  Federation's economy into the world economic sphere, implement the 
international obligations of the Russian  Federation, protect the Russian  Federation's interests, and 
implement best practice clauses.155 The portfolio of cooperation instruments in place comprises 
legally binding intergovernmental agreements (such as the EAEU Treaty) and non -binding 
arrangements between Russian  Federation institutions and counterparts in other jurisdictions (such 
as the Me morandum of Understanding between the FAS and the EU Commission).  
3.139.   The Russian  Federation has concluded bilateral cooperation agreements with competition 
authorities, including Brazil, Slovakia, France, the Republic of Korea, and Mexico. A single provision 
on competition policy is included in the FTAs concluded by the EAEU with Serbia and Singapore 
obliging the parties to ensure effective protection against anti -competitive practices in accordance 
with their respective national legislation and Article  10bis of the Paris Convention for the Protection 
of Industrial Property.  
3.3.4.4   Price controls  
3.140.   Prices (tariffs) in the Russian  Federation are determined freely by market forces, except for 
several identified sectors where prices are regulated by the State. Presidential  Decree No.  221 of 
28 February 1995 on Measures to Streamline the State Regulation of Prices (Tariffs) (as amended 
in April 2016) establishes the main principles of state price regulation in the domestic market. 
Normative legal acts issued by federal execu tive bodies concerning state regulation of prices for 
goods and services are published. All government resolutions concerning state regulation of prices 
and tariffs, including with respect to natural monopolies, are published in the Rossiyskaya Gazeta . 
3.141.   The FAS is the federal executive body responsible for price regulation, control, and 
monitoring of several goods and services markets. Other sub -federal bodies also carry out price 
regulation functions. Prices are regulated, inter alia , in the following areas : 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 transportation (p ublic 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 (domestic lette r 
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 (icebr eaking fleet and ice pilotage); air 
navigation services; and solid domestic waste management.  
3.142.   Most of the markets subject to price controls are deemed to operate under natural monopoly 
conditions156, with the monopoly holders being subject to additional reg ulation (including information 
disclosure requirements) and supervision pursuant to the Law on Natural Monopolies. The FAS 
 
155 For details about cooperation between the FAS and international organizations and foreign 
competition agencies, see https:/ /fas.gov.ru/tags/121 . 
156 Article  4 of Federal Law No.  147-FZ of 17 August 1995 on Natural Monopolies (last amended in 
July 2017) lists areas deemed to be monopolistic, such as transportation of oil and oil products, railway 
transportation, and transmission of electricity.  WT/TPR/S/416  • Russian Federation  
- 75 - 
maintains a register of natural monopolies  that is updated regularly (Table 3.17) .157 In 2019, the 
FAS submitted to the Government a d raft Law on the Basics of State Regulation of Prices (Tariffs). 
The main aim is to consolidate the legal bases for price regulation in the Russian  Federation in 
different areas, as well as to implement unified principles and approaches. According to the 
authorities, the draft Law is currently being finalized.  
Table 3.17 Number of natural monopolies included and excluded from the register of 
natural monopoly entities, 2016 -20 
 
2016  2017  2018  2019  2020  
Natural monopolies included  191 118 117 337 353 
Natural monopolies excluded  .. 205 354 453 229 
.. Not available . 
Source:  Data provided by the authorities.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.143.   The Russian  Federation has 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. 158 
3.144.   The Constitution guarantees equal protection to private, state, municipal, and other forms 
of property, and also aims to prevent monopolization and unfair competition.  
3.145.   The Civil Code lists three possible legal/corporate forms for an enterprise, and state -owned 
enterprises (SOEs) take one of these forms: unitary enterprises, joint -stock companies (JSCs), and 
state corporations.  
3.146.   Unitary enterprises, basically regulated by Federal Law No . 161-FZ of 14  November 2002 on 
State and Municipal Unitary Enterprises (as amended), 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. According 
to data provided by the authorities, the number of unitary enterprises declined from 23,262 on 
1 January 2016 to 13,801 on 1 January 2020. The reduction of the number of unitary enterpr ises 
has resulted from a deliberate government policy and has been achieved through the reorganization 
of unitary enterprises as JSCs159, their conversion into state corporations, or the privatization or 
liquidation of unitary enterprises.  
3.147.   JSCs, mainly gove rned under Federal Law No.  208-FZ of 26  December  1995 on  Joint-Stock 
Companies (as amended), may have private shareholders and may be listed on foreign stock 
exchanges. A distinction exists between open and closed JSCs, depending upon whether or not 
shares  can be publicly traded.160 According to data provided by the authorities, the total number of 
state-owned JSCs with the State's share above 30% decreased by 30% (from 1,557 at the beginning 
of 2016 to 1,084 by 2019), among which are JSCs with state shares of more than 50%, the number 
of which decreased by 45% during the same period.  
3.148.   State corporations established under Federal Law No.  7-FZ of 12 January 1996 on 
Non-Commercial Entities are non -profit, non -commercial organizations where asset management 
depen ds in the individual law or charter of establishment, which also sets out their responsibilities 
 
157 As at April 2021, the register of natural monopolies contained 6,019 entities. See the FAS website, 
which can be viewed at: http://fas.gov.ru/pages/activity/tariffregulation/reestr -subektov -estestvennyix -
monopolij.html .  
158 In its accession to the WTO, the Russian  Federation made several commitments relating to state -
owned and state -controlled enterprises and enterprises with excl usive or special privileges with regards to 
conducting commercial activity. These are described in WTO document WT/TPR/S/345/Rev.1, 
6 December  2016.  
159 Thus, for example, Rosoboronexport, Post of Russia, and Rosspirtprom, which at the time of the 
previous R eview were unitary enterprises, now exist as JSCs.  
160 Russian Railways, the Post of Russia, and United Shipbuilding Corporation are examples of open JSCs 
with 100% ownership by the Russian State, whereas Gazprom, Rosneft, Sberbank, VTB , and Aeroflot are 
examples of open JSCs with partial state ownership.  WT/TPR/S/416  • Russian Federation  
- 76 - 
and reporting requirements.161 A state corporation is obliged to publish property use reports 
annually. Annual financial statements of a state corporation are s ubject to mandatory audit and 
must be published on its official website. The Accounts Chamber and other state bodies are entitled 
to supervise the activity of a state corporation. No statistics were available regarding the number of 
state corporations duri ng the review period.  
3.149.   The degree of state ownership varies from one sector to another. Some of the key SOEs are 
listed in Table 3. 18. 
Table 3.18 Selected state -owned enterprises, 2020  
(RUB million)  
Company  Sales volume  Net profit  State ownershipa 
Gazprom  7,659.6  932.9  38.4 
11 Rosneftegaz  
0.9 Rosgazifikatsiyab 
Rosneft  8,676.0  805.0  less than 0.01  
40.4 Rosneftegaz 
Sberbank  856.1  760.3  52.3 
Russian Railways  2,279.0  52.9 100 
VTB Group  .. 75.3 60.9 
Transneft  1,063.8  197.1  78.1 
Rosseti  1,029.7  105.3  85.3 
RusHydro  366.6  0.6 61.7 
Aeroflot Group  302.2  -123.2  57.3  
Rostelecom  546.9  25.3 38.2 
.. Not available.  
a State percentage of ordinary shares.  
b Rosneftegaz  is 100% state -owned, and Rosgazifikatsiya is 74.54% state -owned.  
Source:  Information provided by the authorities . 
3.150.   An IMF report published in 2018 finds that the Russian State "leaves a deep footprint in the 
economy".162 Specifically, "the state represented about one third of Russia's value added (VA) in 
2016, smaller than in the mainstream narrative but nonetheless large".163 The State accounts for 
nearly 40% of formal sector activity and 50% of formal sector employment. The Report also finds 
that this "relatively large"164 share of the Russian State contributes to economic concentration in 
several sectors even though concentration is also high in sectors with low state presence. In 
particular, the State's share is large in  sectors considered to be strategic, natural monopolies and 
public services, in the financial sector and, naturally, in public administration, defence, health, and 
education.165 The size of the Russian State has a significant impact on competition and econo mic 
efficiency, which underlines the importance of pro -competitive procurement policies. Finally, the 
Report finds that SOEs appear to underperform relative to non -state firms in a variety of economic 
activities.166 The Russian authorities point out that th e data used in the IMF report are too old to be 
used in this Review.167  
 
161 Examples of state corporations include VEB.RF, the Fund of Housing and Communal Services 
Development Cooperation, Rostech (defence and high -tech industries), Rosatom (nuclear energy), and 
Roscosmos (cosmo nautics).  
162 IMF (2018), Russian Federation: Selected Issues , IMF Country Report No. 18/276. p. 3.  
163 IMF (2018), Russian Federation: Selected Issues , IMF Country Report No. 18/276, p.  12. The Report 
notes that the State's share in oil and gas extraction an d the financial sector increased in recent years. Ibid., 
p. 8. 
164 The Report's characterization of the size of the Russian State as "relatively large" results from an 
analysis based on cross -country employment data. IMF (2018), Russian Federation: Selected Issues , IMF 
Country Report No. 18/276. pp. 4 and 14.  
165 IMF (2018), Russian Federation: Selected Issues , IMF Country Report No. 18/276, p.  9 
166 IMF (2018), Russian Federation: Selected Issues , IMF Country Report No. 18/276, p.  12. 
167 As noted above, informati on provided by the authorities indicates a substantial decline during the 
review period in the number of SOEs in the form of unitary enterprises and JSCs.  WT/TPR/S/416  • Russian Federation  
- 77 - 
3.151.   WTO Members have raised concerns regarding purchases by Russian SOEs acting 
commercially.168 
3.152.   The pr ivatization process is regulated by Federal Law No.  178-FZ of 21  December  2001 on 
Privatization of State and Municipal Property169 (last amended on 13  July 2015), and implementing 
legislation. Within the framework of the last forecast for 2017 -19, adopted by Government 
Resolution No.  227-r of 8  February  2017, privatization of state shares was exercised in 581 
commercial companies, 252 federal state unitary enterprises, and 1,872 other objects in state 
property.  
3.153.   In January 2020, the Government published a privatization plan for 2020 -22 that identifies 
86 fede ral unitary state enterprises, 186 JSCs, and 13 LLCs for privatization over the period. 
According to government estimates, the plan could generate RUB  3.6 billion per year for the federal 
budget.170 As part of the Plan's implementation, 49 commercial compan ies, 9 federal unitary state 
enterprises, and 315 other objects in state property were privatized in 2020.  
3.3.6   Government procurement  
3.3.6.1   Overview  
3.154.   Government procurement encompasses all procurements of goods, services, and works by 
contractual means to meet state  and municipal needs. It amounted to RUB  8.24 trillion in 2019 (or 
about 7.5% of GDP) (Table 3. 19). The main legal framework has remained the same since the 
previous Review, though numerous amendments have taken place.171 Confidence in the 
procurement syste m seems to have been enhanced, as the average number of participants in each 
procurement procedure increased from 2.94 in 2018 to 3.12 in 2019.172 
3.155.   The Russian  Federation is not a party to the WTO Agreement on Government Procurement 
(GPA). On joining the WTO  in August 2012, the Russian  Federation agreed to initiate negotiations 
on accession to the GPA within four years. The Russian  Federation became an observer in the 
Committee on Government Procurement on 29 May 2013 and initiated its GPA accession process 
in August 2016. The initial market access offer was circulated in  June 2017. The Replies to the 
Checklist of Issues, together with the Federal Law No.  44-FZ of 5 April 2013 on the Contract System 
in State and Municipal Procurement of Goods, Works and Servic es, were circulated in  January  2018.  
Table 3.19 Government procurement and its share in GDP, 2016 -19 
Year Value of procurement ( RUB trillion)  Share in GDP (%)  
2016 5.40 6.30 
2017 6.36 6.90 
2018 6.95 6.64 
2019 8.24 7.48 
Source:  Information provided by the authorities.  
3.3.6.2   Legal framework  
3.156.   As was the case during the previous review period, government procurement is divided into 
three categories in terms of the nature of the procuring entity: (i ) procurement by federal and 
 
168 For example, see WTO documents G/TRIMS/M/48, 30 October 2020, paras.  33-44; and G/C/M/138, 
12 March 2021, paras.  31.1-31.17.  
169 WTO document WT/ACC/RUS/70, 17 November 2011, para. 59.  
170 Santander, Russia: Foreign Investment . Viewed at: https://santandertrade.com/en/por tal/establish -
overseas/russia/foreign -investment?url_de_la_page=%2Fen%2Fportal%2Festablish -
overseas%2Frussia%2Fforeign -
investment&&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser . 
171 Federal Law No.  44-FZ was amended 42 times (from 22 Februar y 2017 to 30 December 2020), 
Federal Law No.  223-FZ was amended 18 times (from 7 June 2017 to 22 December 2020), and Federal Law 
No. 275-FZ was amended 11 times (from 29 July 2017 to 8 December 2020).  
172 See Ministry of Finance, The Summary Analytical Repor t for 2019 Based on the Results of the 
Monitoring of Procurement of Goods, Services, and Works for the Satisfaction of State and Municipal Needs in 
Accordance with Federal Law No.  44-FZ of 5 April 2013.  Viewed at: 
https://minfin.gov.ru/common/upload/library/2020/06/main/Svodnyy_analiticheskiy_otchet_2019.pdf .  WT/TPR/S/416  • Russian Federation  
- 78 - 
municipal governments; (ii)  procurement by certain other types of legal entities, such as SOEs, 
regulated entities, monopoly entities, and utility companies; and (iii)  procurement by military 
entities. Each type of procuring en tity is governed by a different set of laws, as described belo w 
(Table 3.20).  
Table 3.20 Main legal framework of the federal and municipal procurement system  
Law number and date of adoption  Title  
Federal Law No.  44-FZ of 5 April 2013  On the Contract System in State and Municipal Procurement of 
Goods, Works and Services (last amended on 30  December 
2020)  
Federal Law No.  223-FZ of 18 July 2011  On Purchases of Goods, Works and Services by Certain Types 
of Legal Entities (last amended on 22 December 2020)  
Federal Law No.  275-FZ of 29 December 2012  On the State Defence Order (last amended on 8 December 
2020)  
Source:  Information provided by the authorities.  
3.157.   For procurement by federal and municipal governments, the applicable law is Federal Law 
No. 44-FZ of 5 April 2013 on the Contract System in State and Municipal Procurement of Goods, 
Works and Services, which entered into force on 1 January 2014. During the  review period, the Law 
was amended 42 times to effect both substantive and technical changes. In accordance with data 
from 2019, there are 307,000 procuring entities regulated by this Law registered in the unified 
information system, 238,395 of which (abo ut 78%) carried out procurement procedures in 2019.  
3.158.   For procurement by SOEs, natural monopoly entities, public companies, and utilities 
companies, the main law is Federal Law No.  223-FZ of 18 July 2011 on Purchases of Goods, Works 
and Services by Certain T ypes of Legal Entities. It sets out a list of competitive procurement methods 
(tenders, auctions, request for quotations, and request for tenders) and the right for the procuring 
entity to establish requirements for other procurement methods (including the  grounds for single 
source procurement). By the end of 2019, 96,473 entities procuring in accordance with Federal Law 
No. 223-FZ had been registered in the unified information system, 27,468 of which (around 28%) 
conducted procurement in that year.173 
3.159.   For procurement by military entities, Federal Law No.  275-FZ of 29  December 2012 on the 
State Defence Order applies. Entities covered by this Law are federal government authorities, the 
State Atomic Energy Corporation (Rosatom), and the State Space Corpora tion (Roscosmos).  
3.160.   Other laws relating to government procurement include the Constitution, the Civil Code174, 
the Budget Code175, and the Law on Protection of Competition.176 
3.3.6.3   General principles and buy national requirements  
3.161.   According to Federal Law No.  44-FZ, all procurements should be conducted under the 
principles of openness, transparency of the information about the procurement system, competition, 
professionalism of procuring entities, facilitation of innovation, uniformity of the procurement 
system, effic iency, and responsibility for the attainment of state and municipal needs. The whole 
procurement system is directed towards the creation of equal conditions for the participation of any 
interested supplier. The procuring entities (as well as specialized ag encies, and their officials, 
procurement commissions, members of such commissions, participants in the procurement 
procedure, operators of electronic platforms, and operators of specialized electronic platforms) are 
prohibited from taking actions that rest rict competition, in particular actions that would unreasonably 
restrict the number of suppliers participating in procurement.  
 
173 See Monitoring of the Implementation in 2019 of Federal Law No.  223-FZ of 18 July 2011  on the 
Procurement of Goods, Services and Works by Specific Types of Legal Entities .  
174 The Civil Code (last amended on 12 May 2020) can be viewed at: 
http://www.consultant.ru/document/c ons_doc_LAW_5142/ . 
175 The Budget Code (last amended on 12 November 2019) can be viewed at: 
http://www.consultant.ru/document/cons_doc_LAW_19702/ . 
176 Тhe Law on Protection of Competition (l ast amended on 22 December 2020) can be viewed at: 
http://www.consultant.ru/document/cons_doc_LAW_61763/ . WT/TPR/S/416  • Russian Federation  
- 79 - 
3.162.   At the same time, Federal Law No.  44-FZ allows the Government to adopt legal acts aimed 
at imposing restrictions on the purchase of foreign goods, works, and services for the purposes of 
protecting the constitutional order, national defence and security, and the domestic market; 
developing the national economy; and supporting Russian  Federation producers.177 These 
restrictions might include the requirement to procure a "minimum mandatory share of Russian 
goods, including goods delivered during the provision of works and services".178 The list of such 
goods and their minimum share in procurement is established in Government Decision No.  2014 of 
3 December 2020 on Minimum Mandatory Share of Russian Goоds in Procurement and Its 
Achievement by Procuring Entities.179 
3.163.   In addition, detailed implementing rules regarding these restrictions were developed and 
published in the form of federal resol utions. Examples of such resolutions include Resolution No.  617 
of 30 April 2020 on Establishing Market Entry Restrictions for Certain Types of Industrial Goods 
Originating from Foreign Countries in the Context of Procurement for State and Municipal Needs and 
Resolution No.  616 of 30 April 2020 on Establishing Ban on Market Entry of Certain Types of 
Industrial Goods Originating from Foreign Countries in the Context of Procurement for State and 
Municipal Needs, and Foreign Industrial Goods and Services (Work s) in the Context of Procurement 
for Defence Need. Under these Resolutions, procurement of foreign products will be allowed if there 
is no production of like domestic goods and services. Foreign participation is also restricted in some 
sectors, such as sof tware and databases (with limited exceptions)180, radio -electronic equipment181, 
and medicines and materials used for medical purposes.182 These Resolutions do not establish any 
limitations or specific requirements concerning suppliers and service providers w ith foreign capital 
established in the territory of the Russian  Federation (and in that of other EAEU member States). 
Thus, such suppliers and service providers have equal rights to participate in government 
procurement in the Russian  Federation.  
3.164.   Specific rules apply to contracts envisaging investment obligations from a supplier -investor. 
Only legal entities registered in the territory of the Russian  Federation can participate in procedures 
for entering into such contracts aimed at establishing or modernizi ng and/or developing the 
production of goods in the territory of the Russian  Federation.183 These contracts can be signed for 
no more than 10 years, and the minimum amount of investment should be no less than RUB  1 billion. 
The subject of such contracts is the purchase of goods developed in compliance with the 
requirements of "local origin".184 A procurement notice containing the requirements to participate in 
a procedure for the award of such contract is published in the unified information system 60 days 
prior to the day of granting access to tenders.185 Although there is an open call for tenders, once a 
contract is awarded, the selected supplier becomes the single supplier of such goods for the period 
of existence of the contract.  
3.165.   Federal Law No.  44-FZ provi des that preferences be given to four types of suppliers: 
(i) institutions and enterprises of the penitentiary system; (ii)  organizations of people with a 
disability; (iii)  small businesses; and (iv)  socially oriented non -commercial organizations. 
Specific ally, a procuring entity is obliged to provide the first two groups of suppliers with a price 
preference at a margin of 15%. Lists of goods, works, and services eligible for preferences when 
procured from institutions and enterprises of the penitentiary sy stem and organizations of people 
 
177 Federal Law No.  44-FZ of 5 April 2013, Article  14. 
178 Federal Law No.  44-FZ of 5 April 2013, Article  14(3).  
179 The list can be viewed at: 
http://publication.pravo.gov.ru/Document/View/0001202012080031?index=0&r angeSize=1 . 
180 Government Decision No.  1236 of 16 November 2015 (last amended in 2019) on Imposing a Ban on 
the Admission of Software Originating from Foreign Countries for the Purpose of Procurement for State and 
Municipal Needs.  
181 Government Decision No.  878 of 10 July 2019 (last amended in 2020) on Measures Stimulating 
Domestic Production of Radio -electronic Equipment by Means of a Public Procurement System.  
182 Government Decree No.  102 of 5 February 2015 (last amended in 2021) on Establishin g Market 
Entry Restrictions for Individual Types of Medical Devices Originating from Foreign Countries in the Context of 
Procurement for State and Municipal Needs.  
183 Federal Law No.  44-FZ of 5 April 2013, Article  111.4.  
184 Federal Law No.  44-FZ of 5 April 2 013, Article  111.4(5).  
185 Government Decision No.  1166 of 12 November 2016 on Establishing Specificities of Planning and 
Conducting Competitions for the Selection of a Supplier with Whom a State Contract Is Signed Envisaging 
Mutual Investment Obligations of  the Supplier -Investor for the Creation or Modernisation and/or Development 
of Production in the Territory of the Subject of Russian  Federation for the Satisfaction of Needs of the Subject 
of Russian  Federation.  WT/TPR/S/416  • Russian Federation  
- 80 - 
with a disability are approved by the Government. From 1 January 2022, procuring entities are 
obliged to set aside contracts of no less than 25% of the total annual volume of procurements for 
small businesses and socially o riented non -commercial organizations. Such advantages are specified 
in the notices of procurement and procurement documentation. In 2019, about RUB  3.8 trillion in 
contracts was granted to small businesses and socially oriented non -commercial organizations .186 
3.166.   Regarding entities covered by Federal Law No.  223-FZ (SOEs, natural monopoly entities, 
public companies, and utilities companies) , the Government has the right to establish preferences, 
including through the procurement of a minimum share of goods, wor ks, and services provided by 
Russian suppliers.187 Furthermore, in case of procurement of goods, including goods supplied when 
procuring works or services, the contract should stipulate the origins of such goods. A draft decision 
was introduced to this end.188 In addition, Government Decree No.  925 of 16  September 2016 sets 
out a 15% price preference for goods, works, and services of Russian  Federation origin procured by 
entities covered by Federal Law No.  223-FZ. Article  8 of Government Decree No.  925 provides that 
"preference is granted subject to the provisions of the General Agreement on Tariffs and Trade 1994 
and the Eurasian Economic Union Treaty of 24  May 2014".  
3.3.6.4   Procurement methods and procedures  
3.167.   Procurem ent planning is obligatory under Federal Law No.  44-FZ. The Government has the 
right to establish requirements related to the form of the plans; the procedure concerning the 
formation, approval, and amendment of the plans; and the procedure for publishing the plans in the 
unified information system. Procurement plans must be prepared in accordance with budgetary law 
and for the given period of planning. Publication of procurement documentation not complying with 
the information in procurement plans is not a llowed. Procurement plans and other procurement 
documentation are subject to mandatory public consultations from the time that the plans are 
published in the unified information system.  
3.168.   Procurement methods were not changed substantially during the review p eriod. They can be 
classified into two general categories in terms of the extent of competition in the procurement 
method: (i)  competitive methods; and (ii)  single -supplier methods. Competitive methods include 
tendering (open tendering, tendering with limi ted participation, two -stage tendering, closed 
tendering, closed tendering with limited participation, and closed two -stage tendering), auctions 
(electronic auctions and closed auctions), request for quotations, and request for proposals. In 
tendering, the  supplier that offers the best contract conditions will be awarded the contract. In an 
auction, the supplier that offers the lowest price will win the contract. The procuring entity decides 
which procurement method will be used for a specific procurement, according to the provisions of 
Federal Law No.  44-FZ. Closed forms of procurement methods can be organized only with the 
agreement of the relevant federal executive body. The procuring entities' choices of procurement 
methods should not result in an unreas onable reduction in the number of participants in the 
procurement. According to data provided by the authorities, electronic auction is the most frequently 
used method, while the use of single sourcing remained stable (Table 3. 21). 
 
186 See Ministry of Finance, Summary Analytica l Report for 2019 Based on the Results of the Monitoring 
of Procurement of Goods, Services, and Works for the Satisfaction of State and Municipal Needs in Accordance 
with Federal Law No.  44-FZ of 5 April 2013 . Viewed at: 
https://minfin.gov.ru/common/upload/library/2020/06/main/Svodnyy_analiticheskiy_otchet_2019.pdf . 
187 Federal Law No.  223-FZ of 18 July 2011, Article  3(8). 
188 WTO document G/C/M/138, 12 March 2021, para.  31.3.  WT/TPR/S/416  • Russian Federation  
- 81 - 
Table 3.21 Share of procurement methods, 2016 -19 
Procurement method  2016  2017  2018  2019  
E-auction  56.4% or 
RUB 3.04 trillion  59.07% or 
RUB 3.76 trillion  63.56% or 
RUB 4.42 trillion  65.9% or 
RUB 5.43 trillion  
Procurement from single 
supplier  23.94% or 
RUB 1.29 trillion  26.85% or 
RUB 1.69 trillion  22.59% or 
RUB 1.56 trillion  21.65% or 
RUB 1.75 trillion  
Open tendering  12.89% or 
RUB 697 billion  7.01 % or 
RUB 446 billion  7.7% or 
RUB 533 billion  5.74% or 
RUB 474 billion  
Tendering with limited 
participation  4.1% or 
RUB 221 billion  4.37% or 
RUB 280 billion  3.78% or 
RUB 263 billion  4.13% or 
RUB 344 billion  
Request for proposal  1.32% or 
RUB 72 billion  1.39% or 
RUB 87 billion  0.75% or 
RUB 52 billion  1.45% or 
RUB 134 billion  
Other methods  1.35% or 
RUB 73 billion  1.3% or 
RUB 82 billion  1.62% or 
RUB 113 billion  1.64% or 
RUB 136 billion  
Source:  Information provided by the authorities.  
3.169.   For the 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. As reported by the authorities, as at 1 January 2019, all procurement procedures are 
conducted using  e-platforms. Procuring entities can procure through electronic catalogues of 
products as long as the procurement value does not exceed RUB  3 million. According to 2019 data, 
62,558 items were included in the catalogue. In addition, a unified accreditation  for the electronic 
platforms was introduced, and the use of a single qualified electronic signature was established. In 
order to obtain an e -signature and to participate in procurement procedures organized through 
e-procurement platforms, foreign supplier s usually set up legal entities in the Russian  Federation (or 
in other EAEU member States).  
3.170.   In evaluating offers, consideration is given to criteria such as price; expenses for operation 
and repair of the procured products; qualitative, functional, and eco logical characteristics of the 
procured products; and qualifications of the suppliers, including their financial and material 
resources, work experience, and business reputation. While the contract price is the only criterion 
to be considered in an auction , other procurement methods should use at least two of these criteria, 
one of which being price. When procuring new machines and equipment, the procuring entity might 
use life -cycle costing to evaluate the bids.  
3.171.   The procuring entity should establish a proc urement commission for the award of the 
contract, except for cases of procurement from a single supplier. To avoid conflicts of interest, 
Federal Law No.  44-FZ sets out restrictions for groups of people wishing to become members of a 
procurement commission . The commission should be composed of a limited number of members 
(either five or three), and most members should have received professional training, hold advanced 
qualifications in the field of procurement, or have special knowledge of the subject matte r of the 
procurement.  
3.172.   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. The rights, obligations, and responsibilities of procuring entities 
when conducting joint tenders or auctions are stipulated in the agreement signed among the 
procuring entities. The contract with the winner(s) is signed by each procuring entity individually.189 
In centralized procurement, the procurement agency takes responsibility for organizing the 
procurement process, including the conclusion of contracts with the winner(s).  
3.173.   In January 2021, the Government presented to the State Duma draft legislation to ame nd 
the existing procedures used for the purchase of goods, works, and services for state and municipal 
needs.190 The draft law was signed by the President and will enter into force on 1 January 2022. The 
amendments envisage, in particular: (i)  a decrease in  the number of open competitive procedures 
to three ( tendering, auction, request for quotations) ; (ii) procedures for the conduct of closed 
electronic procedures; (iii)  new grounds for single source procurement; and (iv)  a new requirement 
 
189 Federal Law No.  223-FZ of 18 July 2011, Article  25(1).  
190 Draft legislation on the optimization of public procurement can be viewed at: 
https://zakupki.gov.ru/epz/main/public/news/news_preview.html?newsId=30898 . WT/TPR/S/416  • Russian Federation  
- 82 - 
allowing only the  suppliers that had successfully implemented a state or a municipal contract within 
the previous three years to participate in a procurement for contracts with the value over 
RUB 20 million. In accordance with the amendments, two -stage tendering, tenders w ith limited 
participation, and requests for tenders are eliminated.  
3.3.6.5   Control/monitoring/audit of government procurement and bid challenge review 
mechanism  
3.174.   The Ministry of Finance is designated as the public procurement agency, with the powers to 
elaborate r elevant policies and to regulate the area. In addition, the Ministry of Finance carries out 
regular monitoring of procurement transactions through the unified information system. Results of 
the annual monitoring are published in the unified information sys tem as a report containing an 
analysis of the effectiveness of the procurement system. The report also proposes measures for the 
improvement of legislation. At the federal level, an audit is carried out by the Accounts Chamber. 
The function of control over  procurement transactions is vested in several institutions, including 
municipal bodies, the FAS, the Treasury, and internal state financial control bodies, each within the 
scope of its powers. Civil society control is also envisaged by Federal Law No.  44-FZ. 
3.175.   Under Federal Law No.  44-FZ, any procurement participant has the right to lodge a complaint 
about actions of a procuring entity, the competent authorized agency, the specialized organization, 
the procurement commission and its members, officials of the  contract service, the contract 
manager, the operator of the electronic procurement platform, and the operator of the specialized 
electronic procurement platform, if such actions infringe the rights and legitimate interests of a 
procurement participant. Bo th judicial and administrative procedures are available  (Table 3.22) . The 
FAS is the administrative body that reviews the complaints. A complaint must be submitted within 
five days of the evaluation report being published on the unified information system.  A complaint 
about provisions of procurement documentation may be lodged before the deadline for submitting 
tenders. If the actions against which the complaint is lodged took place after the opening of tenders, 
such complaint can be launched only by the su pplier who has submitted a tender. After the expiration 
of these specified time -periods, complaints may be pursued only through a judicial procedure.  
Table 3.22 Number of complaints, 2016 -20 
 2016  2017  2018  2019  2020  
Administrative complaints  22,437  24,005  30,695  28,384  28,091  
Judicial complaints  2,296  2,750  3,260  3,204  2,438  
Source:  Information provided by the authorities.  
3.176.   The FAS is required to consider a complaint within five days of the date of receipt of the 
complaint. The procurement may be suspended where necessary. The FAS must decide whether or 
not the complaint is justified, and issue instructions to eliminate any v iolations that may have been 
committed. The decision may be challenged through a judicial procedure within three months from 
the date that it was made. Persons guilty of violating relevant legislation shall bear disciplinary, civil, 
administrative, or crim inal liability. The operators of electronic procurement platforms and their 
officials must cover losses caused by their illegal actions, including the ones associated with 
disclosure of information obtained in the course of electronic procedures. No other compensation is 
envisaged.  
3.3.6.6   International cooperation  
3.177.   During the review period, the EAEU (with the Russian  Federation being one of its founding 
members) signed FTAs with Serbia and Singapore, and one interim agreement leading to  an FTA 
with Iran. The FTA w ith Singapore contains a chapter on government procurement largely concerned 
with transparency and cooperation. It also envisages that further procurement market liberalization 
and market access negotiations might be conducted, if necessary.  WT/TPR/S/416  • Russian Federation  
- 83 - 
3.3.7   Intellectual p roperty rights  
3.3.7.1   COVID -19 pandemic and IP -related measures  
3.178.   Since the outbreak of the COVID -19 pandemic, the Russian  Federation has taken a number 
of measures to improve transparency on COVID -19-related intellectual property (IP) information 
and to facilitate IP acquisition procedures.191 These measures include: (i)  the creation of a news 
section called "Patent of the Week" and an information section on COVID -19-related patents on the 
website of the Federal Service for Intellectual Property (Rospatent ); (ii)  adoption of an electronic 
interaction system between Rospatent and IP applicants from 15 April to 17 May 2020; 
(iii) acceleration of examination procedures for patent applications for inventions and utility models 
to combat viruses and associated d iseases; and (iv)  the possibility to request an extension of the 
deadline for various IP procedures, including payment of patent application fees and other 
maintenance fees, submission of documents, and objection to Rospatent decisions.  
3.179.   On 31 December 2020, Government Order No.  3718-r was issued to grant a compulsory 
licence for remdesivir192, an investigational medical treatment of COVID -19193, on the grounds of 
national security under Article  1360 of the Civil Code of the Russian  Federation ( CC RF). Under this 
Article,  the Government has the power to authorize compulsory licences for the use of an invention, 
utility model, or industrial design without the consent of its patent holder, if such use is in the interest 
of national defence and securi ty. The patent holder should, however, be notified of such use in the 
shortest possible time and be compensated commensurately.  
3.180.   The Order authorized a Russian company called Pharmasyntez to use six patents related to 
remdesivir under the compulsory licence  to supply the Russian population with necessary amounts 
of remdesivir. T hese patents ( Eurasian patents number EA020659, EA025252, EA025311, 
EA028742, EA029712, and EA032239) are mainly owned by Gilead Sciences, Inc.194 The term of the 
licence is valid unti l the end of 2021. The order also provides that the patent holder will be notified 
and receive adequate remuneration.  
3.181.   In addition to Article  1360, Article  1362 of the CC RF stipulates that compulsory licences can 
be granted by Russian courts, upon request,  on two other grounds: (i)  when an invention or 
industrial design is not sufficiently used by the patent holder for four years from the granting of the 
patent and a utility model for three years from the granting of the patent, which leads to insufficient 
supply of goods, works, or services on the market; and (ii)  when a dependent patent holder cannot 
use his or her invention without infringing the rights of another patent holder.195 In both cases, a 
person requesting a compulsory licence should provide evid ence that the patent holder has refused 
to enter into a voluntary licensing agreement on terms and conditions corresponding to established 
practice.  
3.182.   The State Duma adopted a bill on expanding the grounds for granting compulsory licences, 
including in emerg ency use related to protecting the life and health of citizens.196 The bill also 
 
191 WTO, COVID -19: Measures Regarding Trade -Related Intellectual Property Rights . Viewed at:  
https://www.wto.org/english/tratop_e/covid19_e/trade_related_ip_measure_e.htm . 
192 Government Order No.  3718-r of 31 December 2020.  
193 Recent trials delivered mixed results on the effectiveness of remdesivir as a COVID -19 treatment.  
194 Gilead applied for four main patent families covering nucleoside analogues' use as antivirals in 
humans leading to remdesivir, which were filed through PCT application US2009/041432 (EA019883, 
terminated on 23  April 2020 due to non -payment of renewal fee), US2011/045102 (EA0 25252, subject to the 
Order), US2015/057933 (EA032239, subject to the Order), and US2016/052092 (no corresponding Eurasian 
patent). Xiaoping Wu and Bassam Peter Khazin (2020), Patent -related Actions Taken in WTO Members in 
Response to the COVID -19 Pandemic , WTO Staff Working Paper. Viewed at:  
https://www.wto.org/english/res_e/reser_e/ersd202012_e.pdf . In addition, the Russian compulsory licence 
further covers PCT applications US2009/041447 (EA020659), US2010/035641 (EA028742), US2011/044581 
(EA025311), and US2014/064412 (EA029712).  
195 The Moscow City Court (Mosgorsud) granted two compulsory licences in 2018 and 2019, respectively, 
based on paragraph 2 of Article  1362 of the CC RF. Viewed at:  
https://www.ilnipinsider.com/2020/04/compulsory -licensing -in-russia -in-the-view-of-COVID -19/. 
196 Bill No.  842633 -7 on Ame nding Article  1360 of the Civil Code of the Russian  Federation (in terms of 
clarifying provisions for the use of an invention, utility model, or industrial design in the interests of national 
security) (first reading adopted on 15 December 2020). Viewed at : https://sozd.duma.gov.ru/bill/842633 -7. WT/TPR/S/416  • Russian Federation  
- 84 - 
suggests that the Government should establish an appropriate policy and practices for determining 
the amount of compensation and its payment procedure.  
3.183.   On 6 December 2005, WTO Members adopted a decision on the Amendment of the 
Agreement on Trade -Related Aspects of Intellectual Property Rights  (TRIPS Agreement), which 
transforms the 30 August 2003 decision on a special compulsory licensing system into a permanent 
amendment of the  TRIPS Agreement. The Amendment makes it easier for Members with no or 
insufficient pharmaceutical manufacturing capacity to obtain generic versions of patented medicines 
by setting aside a compulsory licence provision of the TRIPS Agreement.197 After the a cceptance of 
the Protocol amending the TRIPS Agreement by two thirds of WTO Members, the Amendment took 
effect on 23  January 2017. The Russian  Federation accepted the Amendment on 
22 September  2017, and the State Duma is now considering the inclusion of th e special compulsory 
licensing system of the amended TRIPS Agreement into the CC  RF in compliance with Article  31bis 
of the TRIPS Agreement. On 25 May 2021, the bill was adopted by the State Duma in the third 
reading. It was expected to be signed by the Pr esident of the Russian  Federation in June -July 2021.  
3.3.7.2   Overview  
3.184.   During the review period, the Russian  Federation further improved its administrative 
systems to ensure the capitalization of IP, as part of its effort to enhance the independence and 
competitive ness of the country and to strengthen national intellectual capacity. Notably, in 
December 2016, the Russian  Federation approved the Strategy for the Scientific and Technological 
Development, which identifies the challenges, priorities, and opportunities f or scientific and 
technological development and sets out the Russian  Federation's strategic objectives, policy 
principles, and implementation mechanisms.198 Currently, the key document to define state IP policy 
is the Intellectual Property Roadmap under the  Government Business Environment Transformation 
initiative.199 The Roadmap encompassed all legislative tracks related to the development of the 
Russian IP system, including accession to international treaties, institutional development, improving 
examinatio n procedures, and tax regulation.  
3.185.   The Strategy recognizes seven priority areas: (i)  digital production technologies (e.g. 
robotics, new materials and design methods, big data systems); (ii)  environment -friendly and 
resource -saving energy (e.g. hydrocarbon extraction and processing, energy transportation and 
storage); (iii)  personalized medicines and health technologies (e.g. antibacterial); (iv)  farming and 
aquaculture (e.g. chemical and biological protection equipment for agricultural plants and animals); 
(v) counteraction against hazards; (vi)  intelligent transport, logistics, and telecommunications 
systems; and (vii)  effective responses to other challenges identified by the Strategy.  
3.186.   In March 2019, the Government approved the State Programme for the Scien tific and 
Technological Development of the Russian  Federation 2019 -2030200, which is administered by the 
Ministry of Science and Higher Education. According to the Programme, the annual federal budget 
allocated for scientific R&D and higher education will i ncrease from RUB  889.7 billion (about 
USD 11.9 billion, 5.6% of the total federal budget201) in 2019 to RUB  1,969.6 billion (about 
USD 26.4 billion) in 2030.  
3.187.   The Programme comprises five sections: (i)  developing national intellectual potential; 
(ii) ensuring global competitiveness of higher education; (iii)  strengthening basic scientific research 
for long -term development; (iv)  forming and implementing integrated scientific and technological 
programmes according to the priorities of the Strategy;  and (v) building  infrastructure for scientific, 
technological, and innovative activities.  
 
197 Article  31(f) of the TRIPS Agreement provides: "any such use [i.e. use of a patent without the 
authorization of the right holder] shall be authorized predomi nantly for the supply of the domestic market of 
the Member authorizing such use".  
198 Strategy for the Scientific and Technological Development of the Russian  Federation, Presidential 
Order No.  642 of 1 December 2016. Unofficial English translation is availa ble at: 
https://online.mai.ru/StrategySTD%20RF.pdf . 
199 Rospatent (2020), Annual Report 2020: Transforming the IP Business Environment , pp. 16 -29. 
200 State Programme for the Scientific and Technologic al Development of the Russian  Federation, 
Government Decree No.  377 of 29 March 2019.  
201 The federal budget for 2019 amounted to RUB  15,986 billion. TASS, State Duma Adopts Russia's 
Budget for 2017 -2019, 9 December 2016. Viewed at: https://tass.com/economy/917970 . WT/TPR/S/416  • Russian Federation  
- 85 - 
3.188.   The Programme is expected to achieve several concrete results by 2030, including the 
Russian  Federation entering the top 50 of the Global Talent Competitiveness Inde x202, doubling the 
number of foreign students in the higher education system, ensuring that at least 800 students for 
every 10,000 people aged 17 to 30 can receive free higher education, becoming one of the 5 leading 
countries in terms of the total number o f articles published in the priority areas identified by the 
Strategy, becoming the top 10 leaders in 14 areas of scientific specialization, ensuring the growth 
rate of domestic R&D spending exceeds the growth rate of GDP , and entering top 5 countries in 
terms of domestic R&D spending. It should be noted that several IP -related indicators, such as 
raising investment in IP to 5% of the nation's total investment in fixed assets, and the 
Russian  Federation entering top five leading countries in terms of the to tal number of patent 
applications in the priority areas of the Strategy, are integral parts of the Programme.  
3.189.   Historically, the Russian  Federation has strong national R&D capacity. For example, there 
were 758,462 researchers reported in 2018, the third hig hest globally, although this number has 
declined steadily from 833,654  in 2015.203 According to the Global Innovation Index 2020, the solid 
tertiary education system of the Russian  Federation, ranked 17th globally, indicates one of the 
strengths in R&D, whe reas the regulatory environment, ranked 95th, may be considered as one of 
the weaknesses.204 
3.190.   Overall, R&D expenditure as a proportion of GDP remained around 1.10% during 2014 -17, 
with a little drop to 0.98% in 2018, slightly lower than the average of 1.15% among middle -income 
economies.205 Meanwhile, R&D expenditure per capita rose steadily from USD  266 in 2013 to 
USD 285 in 2018.206 R&D expenditure performed by business enterprises rose significantly from 
43.4% in 2013 to 55.6% in 2018207, indicating the growing participation of the private sector in R&D 
activities. While the R&D expenditure has contributed to energetic patenting acti vities, innovation 
outputs still do not match the R&D investment.208 
3.191.   In terms of manufactured exports, the share of high technology products increased from 
10.7% in 2013 to 13% in 2019, and the export value rose by 17%, to reach USD  10.9 billion.209 
During t he same period, exports of pharmaceuticals, one of the priority areas identified by the 
Strategy, also rose about 45%, from USD  592 million to reach USD  856 million.210 
3.3.7.3   IP legislation  
3.192.   The Russian  Federation has a long -established IP system and houses one of  the world's top 
10 IP offices in terms of IP filing activities.211 Since 2015, the Russian  Federation has made several 
amendments to Part IV of the CC RF (Table 3. 23), the main source of substantive IP legislation, 
which entered into force on 1 January 200 8, showing the continuing public interest in strengthening 
and refining the IP legislative framework in support of innovation.  
 
202 Launched in 2014, the Global Talent Competitiveness Index ranks countries based on the ability to 
enable, attract, raise, and retain talent. Th e Russian  Federation was ranked 53rd among 119 countries in 2018 
and has risen to 48th among 132 countries in 2020. Adecco Group (2020), GTCI: Bridging the Skills Gap: 
Rethinking Workforce Investment . Viewed at: https://gtcistudy.com/the -gtci-index/ . 
203 UNESCO Institute for Statistics, Section on Science, Technology, and Innovation. Viewed at:  
http://data.uis.unesco.org/ . 
204 Soumitra  Dutta, Bruno Lanvin, and Sacha Wunsch -Vincent (eds) (2020), Global Innovation 
Index  2020: Who Will Finance Innovation?  Cornell University, INSEAD, and WIPO. Viewed at: 
https://www .wipo.int/edocs/pubdocs/en/wipo_pub_gii_2020.pdf . 
205 UNESCO Institute for Statistics, Section on Science, Technology, and Innovation.  
206 UNESCO Institute for Statistics, Section on Science, Technology, and Innovation.  
207 UNESCO Institute for Statistics, Secti on on Science, Technology, and Innovation.  
208 Cornell University, INSEAD, and WIPO, Global Innovation Index 2020: Russian  Federation . Viewed 
at: https://www.wipo.int/edocs/pubdoc s/en/wipo_pub_gii_2020/ru.pdf . 
209 World Bank Open Data, High-technology Exports . Viewed at: http://data.worldbank.org/ . 
210 WTO Data Portal, Merchandise Exports by Product Group - Annual, "Pharmaceuticals" . Viewed at : 
https://data.wto.org/ . 
211 WIPO (2020), World Intellectual Property Indicators 2020 . Viewed at:  
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2020.pdf . WT/TPR/S/416  • Russian Federation  
- 86 - 
Table 3.23 Summary of amendments to IP legislation, 2015 -20 
Subject  Legislation  Main changes  
Copyright and 
related rights  Federal Law No.  43-FZ of 
28 March 2017 on 
Amendments to Part IV of the 
Civil Code of the 
Russian  Federation (CC RF)  • Strengthen protection of related rights of directors 
of theatrical and entertainment performances by 
linking theatrical productions to the objects of 
related rights if they are expressed in the forms of 
public performance and recording  
Federal Law No.  319-FZ of 
14 November 2017 on 
Amendments to Part IV of the 
CC RF  • Improve  activities of organizations on collective 
management of copyright and related rights  
• Strengthen control over activities of collective 
management organizations, including the 
imposition of obligation of accredited organizations 
to conduct and disclose an a nnual accountancy 
(financial) reporting on their official websites  
Federal Law No.  381-FZ of 
5 December 2017 on 
Amendments to Article  1293 
of Part IV of the CC  RF  • Expand the list of grounds under which authors of 
original works of fine art can receive a reward, 
including at each resale of the original of such 
works, in which the auction house, gallery of fine 
art, art salon, or shop participates as an 
intermediary, seller, or buyer  
Industrial 
designs  Federal Law No.  549-FZ of 
27 December 2018 on 
Amendments to Part IV of the 
CC RF  • Provide temporary protection to industrial designs 
during the stage of substantive examination of 
applications (i.e. from publication of an application 
until issuance of a patent)  
• Provide possib ility for publishing the information 
on an industrial design application that had passed 
formal examination at the request of the applicant  
Geographical 
indications (GIs)  Federal Law No.  230-FZ of 
26 June 2019 on Amendments 
to Part IV of the CC  RF, and 
Articles 1 and 23 -1 of the Law 
on State Regulation of 
Manufacturing and Circulation 
of Ethanol, Alcohol Products 
and Restriction of Alcohol 
Product Consumption212 • Introduce GIs as an independent form of IP that 
can be obtained by one or several individuals, l egal 
entities, or associations of persons who produce or 
commercialize the goods  
• Set forth a procedure for registration and granting 
of the right to use GIs (e.g. requirements for an 
application for registration of a GI)  
• Provide a distinction between GIs a nd appellations 
of origin of goods  
Electronic means  Federal Law No.  217-FZ of 
20 July 2020 on Amendments 
to Part IV of the CC  RF • Introduce, on a voluntary basis, electronic forms of 
issuance of patents and registration certificates for 
trademarks, well -known trademarks, GIs, and 
other IP  
• Allow an applicant to provide 3D models of an 
invention or utility model for explaining the 
formula of the invention or the utility model  
Patents  Federal Law No.  262-FZ of 
31 July 2020 on Amendments 
to Part IV of the CC RF  • Introduce procedures of primary information 
research and assessment of patentability of 
inventions and utility models, conducted by 
Rospatent -accredited scientific and educational 
centres  
• Allow an applicant to request the centre to pro vide 
research in respect of an invention and its 
patentability before examination of application  
• Introduce amendments related to the right of 
duty-free patenting  
Source:  Information provided by the authorities.  
3.193.   The Russian  Federation has acceded to 23 treaties administered by WIPO, 3 of which have 
entered into force since 2018 (Table 3. 24). On 20 November 2020 (notification deposited to the 
European Economic Community on 24 November 2020), the Russian  Federation ratified the 
Agreement on Trademarks, Ser vice Marks and Appellations of Origin of the Eurasian Economic Union 
signed on 3  February 2020 (entered into force on 26 April 2021). On 4 December 2020 (instrument 
deposited to WIPO on 11 January 2021), the Russian  Federation ratified the Protocol to the Eurasian 
 
212 WTO document IP/N/1/RUS/4, IP/N/1/RUS/G/1, 15 October 2019.  WT/TPR/S/416  • Russian Federation  
- 87 - 
Patent Convention of September 9, 1994 on the Protection of Industrial Designs signed on 
9 September 2019 (entered  into force on 11 April 2021).  
Table 3.24 Participation in WIPO -administered international agreements, 2015 -20 
Treaty/Agreement  Accession  In Force  
Marrakesh Treaty to Facilitate Access to Published Works for 
Persons Who Are Blind, Visually Impaired or Otherwise Print 
Disabled (Marrakesh VIP Trea ty) 8 February 2018  8 May 2018  
Hague Agreement Concerning the International Registration of 
Industrial Design (Hague Agreement)  30 November 2017  28 February 2018  
Beijing Treaty on Audiovisual Performances  19 October 2015  28 April 2020  
Source:  WIPO IP Portal, WIPO -Administered Treaties, Contracting Parties: Russian  Federation. Viewed at: 
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=147C . 
3.3.7.4   Copyright and r elated rights  
3.194.   The Russian  Federation has amended its copyright legislation since the previous Review, with 
a focus on copyright collective management and access to and use of information and information 
technology.  
3.195.   In order to effectively implement the obl igations of collective management organizations 
introduced by Federal Law No.  319-FZ of 14  November 2017 on Amendments to Part IV of the Civil 
Code of the Russian  Federation ( Table 3. 23), the Russian  Federation requires these collective 
management organiza tions to disclose their activities213, and imposes administrative liabilities for 
failing to disclose annual accounting (financial) reports.214 
3.196.   Regarding protection of information and information technology, Federal Law No.  156-FZ of 
1 July 2017 on Amendment s to the Federal Law on Information, Information Technologies and 
Information Protection (FLIITIP) established a mechanism allowing the court to restrict access to 
"mirrors", i.e. sites that are confusingly similar to the sites to which access was previous ly restricted 
due to replicative and illegal posting of information containing copyright items. This Law covers 
websites that contain unauthorized copyright and related rights' items or the information required 
to obtain these items. Federal Law No.  276-FZ of 29 July 2017 on Amendments to the Federal Law 
on Information, Information Technologies, and Information Protection (FLIITIP) prohibits the use of 
information and telecommunications networks, information systems, and computer programs to 
access prohibit ed information resources on the list maintained by t he Federal Service for Supervision 
in the Sphere of Telecom, Information Technologies and Mass Communication (Roskomnadzor). This 
Law also prevents proxy service (e.g.  VPNs) providers from providing acces s to prohibited 
information resources in the Russian  Federation and bans s earch engine operators from issuing links 
to such materials.  
3.197.   Amendments to Chapter 70 (Copyright Law) of the CC RF are being prepared to bring 
national legislation in line with the p rovisions of the WIPO Marrakesh Treaty to Facilitate Access to 
Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled 
(Marrakesh VIP Treaty), including the expansion of the scope of copyright exceptions to cover any 
works  in the form of a text, musical note, or associated illustration, published or made publicly 
available otherwise by any information means (e.g. audiobooks) exclusively intended for print -
disabled people, and the possibility for the importation of copies in  an accessible format without the 
consent of the copyright holder.215 
3.3.7.5   Patents  
3.198.   As listed  in Table 3. 23, Federal Law No. 262-FZ of 31 July 2020 on Amendments  to Part IV 
of the Civil Code of the Russian  Federation  is one of the major  legal developments  in Russian  patent  
 
213 Resolution No.  831 of 16 July 2018 on the Approval of the  Disclosure Standard by Collectively 
Accredited Organizations.  
214 Federal Law No.  318-FZ of 14 November 2017 on Amendments to the Code of the 
Russian  Federation on Administrative Offences.  
215 Federal Law No.  369-FZ of 5 December 2017 on the Accession of the Russian  Federation to the 
Marrakech Treaty on the Facilitation of Access of the Blind and Persons with Visual Impairments or Other 
Limited Abilities to Perceive Printed Information to Published Works.  WT/TPR/S/416  • Russian Federation  
- 88 - 
law. It introduces  a new mechanism  for institutions  accredited  by Rospatent  to carry out, upon the 
request  of an applicant,  a preliminary  information search and patentability assessment as part of 
the examination of applications for inventions and utility models. Applicants who submit the 
preliminary assessment results to Rospatent will benefit from reduced fees an d shortened periods 
of substantive patent examinations.216 This mechanism is expected to reduce the amount of 
preparatory work of Rospatent examiners, help examiners have a better understanding of the 
essence of the claimed invention, and improve patent qua lity by involving industry experts to 
examine prior art and assess patentability before substantive examination by Rospatent.  
3.199.   During the period 2016 -20, the total number of patent applications declined by 11%, mainly 
due to a considerable decrease in invention and utility model filings and a steady decline in 
non-resident applications. On average, Rospatent received approximately  54,000 patent applications 
per year, of which about 69% were resident applications. The share of patent applications for 
inventions fell from 72% in 2016 to 67% in 2020, while the share of industrial design applications 
rose from 9% to 15% (Table 3. 25). The decline in patent applications was mainly attributed to the 
COVID -19 pandemic.  
3.200.   Despite the drop in patent applications, in 2020, Rospatent was ranked 9th worldwide in 
terms of the number of patent applications217, falling from 8th in 2019. As discussed a bove, the 
active patenting activities may be attributed to the large amount of R&D expenditure within the 
country.  
Table 3.25 Patent applications, 2016 -20 
 
2016  2017  2018  2019  2020  
Total 58,163  54,013  54,269  52,791  51,919  
 Of which (by applicant)       
 Resident  39,829  36,192  37,410  36,431  36,442  
 Non-resident  18,334  17,821  16,859  16,360  15,477  
   Of which (by type)       
 Inventions  41,587  36,883  37,957  35,511  34,984  
 Utility models  11,112  10,643  9,747  10,136  9,195  
 Industrial designs  5,464  6,487  6,565  7,144  7,740  
Source:  WIPO IP Statistics Data Center; and information provided by the authorities. Data for 2020 are from 
Rospatent (2021), Annual Report 2020: Transforming the IP Business Environment . Viewed at:  
https://rospatent.gov.ru/content/uploadfiles/annual -report -2020-short-version -en.pdf . 
3.201.   During the same period, Rospatent g ranted, on a yearly average, approximately 33,000 
patents for inventions (about 64% to resident applicants), 8,600 patents for utility models (about 
96% to resident applicants), and 5,600 patents for industrial designs (about 48% to resident 
applicants) (T able 3 .26.). 
Table 3.26 Patent grants, 2016 -20 
 
2016  2017  2018  2019  2020  
Total 46,866  48,367  52,384  49,186  40,574  
 Of which (by applicant)       
 Resident  31,274  31,607  32,758  31,438  .. 
 Non-resident  15,592  16,760  19,626  17,748  .. 
Of which (by type)       
 Inventions  33,536  34,254  35,774  34,008  28,788  
 Utility models  8,875  8,774  9,869  8,848  6,748  
 Industrial designs  4,455  5,339  6,741  6,330  5,038  
.. Not available.  
Source:  WIPO IP Statistics Data Center; and information provided by the authorities. Data for 2020 are from 
Rospatent (2021), Annual Report 2020: Transforming the IP Business Environment . 
 
216 Rospatent, AIF: New Procedure Introduced to Outsource  Examination for Inventions and Utility 
Models , 12 February 2021. Viewed at:  
https://rospatent.gov.ru/en/news/aif -procedure -rassmotreniya -patentnyh -zayavok -na-izobreteniya -150221 . 
217 WIPO (2020), World Intellectual Property Indicators 2020 , pp. 27 and 31.  WT/TPR/S/416  • Russian Federation  
- 89 - 
3.202.   As at 31 December 2020, there were 266,189 patents for inventions, 45,953 fo r utility 
models, and 41,161 for industrial designs in force.218 
3.203.   The Russian  Federation's comparative innovative and technology capacity is focused on the 
following technology fields, as evidenced by patents granted for inventions originated from the 
countr y between 2016 and 2019: measurement (8.7%), food chemistry (8%, falling from 20.8% to 
2.9% during the period), medical technology (7.6%), civil engineering (6.6%), other special 
machines (5.8%), pharmaceuticals (5.1%), materials/metallurgy (4.9%), transpo rt (4.8%), and 
engines/pumps/turbines (4.2%).219 
3.3.7.6   Trademarks  
3.204.   Following the signature of the Agreement on Trademarks, Service Marks and Appellations of 
Origin of the Eurasian Economic Union  by all EAEU  member States, the Russian  Federation became 
the first member to ratify the Agreement ( November 2020).  This Agreement is considered an 
important step towards Eurasian integration in the field of IP, as it will create a EAEU Unified Register 
for trademarks  and appellations of origin. The Unified Register will allow an application to be filed 
with any of the five national patent offices at reduced application fees and be protected within  the 
EAEU Customs Union territory if it passes the examinations at all p atent offices.220 
3.205.   In accordance with Article  16 of the TRIPS Agreement, the Russian  Federation provides a 
higher level of protection for well -known trademarks. Under Articles 1508 and 1509 of the CC RF, a 
well-known trademark authorized by Rospatent enjoys infinite duration of protection without any 
need to renew. The protection further extends to goods that are not similar to those for which a 
well-known trademark is registered if the use of trademark is likely associated by consumers with 
the well -known tr ademark holder and may damage the lawful interests of the holder.  
3.206.   The high level of protection for well -known trademarks goes together with the high threshold 
for well -known trademark applicants. As at February 2021, the open registry of the Federal Instit ute 
of Industrial Property (FIPS) contained only 224 registered and protected well -known trademarks.221 
The IP Court recently rendered an important decision on the concept of well -known trademarks.222 
During the review period, trademark filing activity rose steadily (Table 3. 27): resident applications 
grew remarkably by 62% from 2016 to 2020, and non -resident applications also rose by 9%. The 
share of resident applications increased from 63% in 2016 to 72% in 2020, which is slightly lower 
than the average of the upper -middle -income group (75.2% in 2019 without China).223 The number 
of Russian applicants filing abroad rose sharply, by 43%, from 2016 to reach 31,318 in 2019, 
possibly illustrating an increasing export of domestic brand holders.224 
Table 3.27 Trademark application s, 2016 -20 
Year 2016  2017  2018  2019  2020  
Total 65,862  71,796  75,124  85,040  93,926  
 Of which (by applicant)       
 Resident  41,529  46,602  49,132  58,626  67,396  
 Non-resident  24,333  25,194  25,992  26,414  26,530  
Source:  WIPO IP Statistics Data Center; and information provided by the authorities. Data for 2020 are from 
Rospatent (2021), Annual Report 2020: Transforming the IP Business Environment .  
 
218 Annual Report of Rospatent 2020.  
219 WIPO IP Statistics Data Center. Viewed at: https://www3 .wipo.int/ipstats/ . 
220 Rospatent, Ratification of EAEU Treaty on Trademarks, Service Marks and Appellation of Origin , 
27 October 2020. Viewed at:  
https://rospatent.gov.ru/en/news/gosduma -prinyala -zakonoproekt -ratifikacii -dogovora -o-tz-zo-nmpt . 
221 FIPS, Registry of Well -known Trademarks in the Russian  Federation . Viewed at:  
https://www.fips.ru/registers -web/action?acName=clickRegister&regName=WKTM . 
222 "Raffaello", International Review of Intellectual Property and Competition Law , Vol. 52, pp. 71 -79, 
11 January 2021. Viewed at: https://doi.org/10.1007/s40319 -020-01007 -9. 
223 WIPO (2020), World Intellectual Property Indicators 2020 , p. 91.  
224 WIPO IP Statistics Data Center. Vi ewed at: https://www3.wipo.int/ipstats/ . WT/TPR/S/416  • Russian Federation  
- 90 - 
3.3.7.7   Geographical indications  
3.207.   Federal Law No.  230-FZ of 26 June 2019 on Amendmen ts to Part IV of the Civil Code of the 
Russian  Federation introduced geographical indication (GI) as a new and independent type of IP with 
an aim to attract foreign investment and promote domestic brands. The Law establishes a 
registration procedure and re quirements for GI protection. Under the Law, GI is defined as a 
designation used to identify a product as originating from a specific geographical territory, where 
certain quality, reputation, and other characteristics are attributable to its origin. The t erm of 
protection of GIs is 10 years with the possibility of unlimited renewals. In addition, GIs can be 
registered by one or several individuals, legal entities, or associations of persons who manufacture 
or commercialize the product.  
3.208.   Although a geographical designation can be protected as an appellation of origin (AO) under 
existing Articles  1516-1537 of the CC RF, GI protection has several advantages compared to AO 
protection. Notably, a GI can be applied as long as the applicant can prove that one stage of the 
production chain takes place in the geographical location of which the name is being registered, 
whereas for an AO applicant, all production stages must take place within the geographical 
location.225 Additionally, GI protection is available to any foreign applicant, provided that his or her 
jurisdiction has the same level of protection as under Russian law, but AOs can be protected only if 
they are protected as AOs in the country of origin.226 
3.209.   Applications for GIs began on 27 July  2020. As at 31 December 2020, a total of 44 GI 
applications were filed, 42 of which were from Russian applicants and 2 from foreign applicants. 
Among them, one certificate of protection for GI was issued.  
3.210.   The number of AO applications doubled from 2016 to  2019, with a significant drop in 2020 
due to the introduction of GI protection (Table 3. 28). Among 157 AO certificates, 145 were granted 
to residents, showing the domination of domestic applicants in this field. As at 31 December 2020, 
there were 250 appe llations of origin in force.  
Table 3.28 Appellations of origin applications and grants, 2016 -20 
Year 2016  2017  2018  2019  2020a 
Total applications  44 56 99 100 34 
 Of which       
 Resident  42 56 97 92 30 
 Non-resident  2 0 2 8 4 
Total issued certificates  24 30 36 67 51 
 Of which       
 Resident  16 27 36 66 .. 
 Non-resident  8 3 0 1 .. 
.. Not available.  
a Rospatent, Annual Report 2020: Transforming the IP Business Environment .  
Source:  Information provided by the authorities.  
3.3.7.8   IP enforcement  
3.211.   IP enforcement in the Russian  Federation is implemented by a number of government 
agencies, including the Prosecutor Office, Ministry of the Interior, the FCS, Federal Service for 
Supervision in the S phere of Telecom, Information Technologies and Mass Communication 
(Roskomnadzor), Moscow City Court (Mosgorsud), and IP Court.  
3.212.   Legislative changes during the review period provided stricter legal liabilities for IP 
infringements in the Russian  Federation. In 2016, Article  180 of the Criminal Code of the 
Russian  Federation was amended to enhance the liabilities for illegal use of the means of 
 
225 Rospatent, Initiatives for Improving Russian Legislation Concerning the Protection of Geographical 
Indications , Worldwide Symposium on Geographical Indications (2 -4 July 2019). Viewed at:  
https://www.wipo.int/edocs/mdocs/sct/en/wipo_geo_lis_19/wipo_geo_lis_19_x5.pdf . 
226 A. Zappalaglio and E. Mikheeva (2021), "The New Russian L aw of Geographical Indications: A Critical 
Assessment", Journal of Intellectual Property Law & Practice . WT/TPR/S/416  • Russian Federation  
- 91 - 
individualization of goods, works, and services when such activities are carried out by an organized 
group of persons . 
3.213.   In addition, Federal Law No.  95-FZ of 1 April 2020 on Amendments to Article  238.1 of the 
Criminal Code of the Russian  Federation criminalizes certain actions relating to the use of the media 
or information and telecommunication networks, including the Internet, and strengthens the 
corresponding legal liabilities. This Law covers manufacturing, importing, and supplying 
counterfeited, poor quality, or illegal medical products.  
3.214.   From 2016 to 2019, the number of criminal copyright infringement cases decreased 
significantly from 1,132 to 438 (Table 3. 29). The number of copyright infringements on physical 
media decreases every year. Infringements of copyrights are committed mostly using the Internet. 
Such infringements de facto  are registered on Internet sites no t in the country -code top -level domain 
(ccTLD) ".ru". Besides, the servers with illegal content are not located in the territory of the 
Russian  Federation. During the same period, the number of criminal trademark infringement cases 
remained around 200 annu ally. 
Table 3.29 IP-related cases (criminal, administrative, and civil), 2016 -20 
Nature of cases  2016  2017  2018  2019  2020  
Criminal cases  
Number of infringements of copyright and related 
rights (Article  146 of the Criminal Code of the 
Russian  Federation)  1,132  911 594 438 363 
Number of illegal use of trademarks (Article  180 of 
the Criminal Code of the Russian  Federation)  210 216 186 265 247 
Administrative cases  
Number of IP objects in the customs register 
(pieces)  4,295  4,617  4,953  5,141  5,406  
Copyright and related rights  .. .. .. .. .. 
Trademarks  .. .. .. .. .. 
Number of detected counterfeit products (million 
units)  20.4 10.1 16.2 .. 8.7 
Amount of prevented damage (USD million)  105 61.4 92.7 109.1  47.3 
Civil cases  
Number of IP cases filed with courts of general 
jurisdiction  .. .. .. .. .. 
Number of IP cases filed with commercial courts  .. .. .. .. .. 
.. Not available.  
Source:  Information provided by the authorities.  
3.215.   The Russian  Federation continues to improve IP administrative and enforcement systems. 
On 4 September 2018, Federal Law No.  289-FZ of 3 August 2018 on Customs Regulation in the 
Russian  Federation and on Amending Certain Legislative Acts of the Russian  Federation came into 
force, replacing Federal Law No.  311-FZ of 27 November 2010 on Customs Regulation in the 
Russian  Federation.227 The new customs regulation amended certain norms governing the procedure 
for IP protection by customs authorities.  
3.216.   The Law also secures the possibility of a paperless procedure for intellectual property right 
holders to include IP objects in the customs re gister administered by the FCS. Moreover, the 
maximum period for customs registry was extended from two to three years. The amount of liability 
insurance for causing property damage to the declarant, owner, recipient of the goods, or other 
persons due to t he suspension of the release of goods by customs authorities also increased from 
 
227 The amendment was developed in connection with the coming into force of the new Customs Code of 
the Eurasian Economic Union (EAEU) from 1 January 201 8. Important changes to the EAEU's new Customs 
Code include allowing foreign trade operators to make customs declarations electronically, reducing the time of 
release of goods to four hours, promoting the full implementation of the "single window" mechanis m, 
permitting information systems to make decisions automatically on registration and release of goods in some 
cases, and establishing grounds for delays in customs duties payment. EEC, The EAEU New Customs Code Will 
Enter into Force on January 1, 2018 , 14 November 2017. Viewed at:  
http://www.eurasiancommission.org/en/nae/news/Pages/14_11_17.aspx . WT/TPR/S/416  • Russian Federation  
- 92 - 
RUB 300,000 (USD  4,100) to RUB  500,000 (USD  6,800). The number of IP objects included in the 
customs register has steadily increased to reach 5,406 as at 2020 (Table 3. 29). 
3.217.   In accordance with Article  113 of Federal Law No.  289-FZ, Russian customs authorities are 
empowered to ex officio  actions (i.e. without a request from the right holder) , including measures 
to suspend the release of goods if infringing IP signs are detected.  
3.218.   In 2018, the IP Court heard 741 cases as the court of first instance, 193 of which involved 
foreign entities, and it heard 1,391 cases as the court of cassation, 155 of which involved foreign 
entities. Of these cases, 52% related to trademarks, 9% to copyr ight and related right, and 9% to 
patents.228 Other disputes include unfair competition and recovery of compensations.  
 
 
228 IP Court, Court statistics, Court of First Instance 2018 report and Court of Cassation 2018 report. 
Viewed at: http://ipc.arbitr.ru/node/13545 . WT/TPR/S/416  • Russian Federation  
- 93 - 
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.  Agriculture, forestry, and fishing contributed more than RUB  3.9 trillion or 4.1% to GDP in 
2019. In 2018, 4.3 million people were employed in these sectors (including hunting), accounting 
for about 5.9% of total employment. Due to its vast landmass and diversity in geographical and 
climati c features, the Russian  Federation produces a large variety of agricultural goods, but the 
five largest products (milk, wheat, poultry meat, pig meat, and beef and veal) continue to account 
for more than 50% of the total value of agricultural production. I n 2019, the Russian  Federation was 
the largest producer in the world of barley, oats, sugar beets, and sunflower seeds; the third -largest 
producer of potatoes, rye, and wheat; and the fourth -largest producer of chicken meat. It was among 
the largest milk p roducers in 2018.1 
4.2.  The nominal value of agricultural production at farm gate prices increased significantly over the 
review period, from RUB  4,443 million in 2016 to RUB  5,348 million in 2019. In terms of volume, 
the increase was less significant, as total crop production in creased from 230 million tonnes to 
241 million tonnes over the same period. The area harvested for crops increased from 61.7 million 
hectares in 2016 to 63.1 million hectares in 2019, according to the FAO, with crop yields increasing. 
While production has increased overall since 2016, its structure underwent only small changes as 
the importance of potatoes, maize, and rye continued to decline, while the share of sunflowers, 
sugar, and pig meat in production continued their trend increases (Table 4.1). Among  the more 
important products, the area harvested for sunflowers, soya beans, and rapeseed increased between 
15% and 56% over the reporting period.2 
4.3.  According to the authorities, crops were sown on 79.9 million hectares of land in 2019, a large 
proportion of the 122 million hectares of arable land (and 215 million hectares of agricultural land).3 
In 2019, agricultural enterprises produced 58% of all agricultural output, household enterprises 
produced 28% , and peasant (farm) enterprises accounted for 14%, p roducing primarily potatoes 
and vegetables, especially for their own consumption while selling surplus on local markets.  
4.4.  The majority of land continues to be owned by the State and by municipal authorities, with 
private citizens holding 28.1% and private e nterprises 5.2% of land. Land owned by the State and 
by municipal authorities can be leased by agricultural producers in accordance with Federal Law 
No. 101-FZ of 24  July 2002 on the Turnover of Agricultural Land. According to the authorities, limits 
to the share of total land owned by (a group of) citizens are in place and vary by municipal district 
to limit concentration of land ownership within a given locality. Foreign citizens or foreign legal 
entities  cannot own agricultural land in the Russian  Federa tion, but they can sign leases.  
4.5.  While agricultural firms are profitable on average, large productivity differences can be 
observed. In 2019, 87.2% of agricultural firms were profitable when taking subsidies into 
consideration, an increase from the year bef ore. On average, profitability was estimated at 14.6%, 
an increase compared to 2018, while profitability excluding subsidies was estimated to be 9.9%. The 
average masks important differences, however, as 32.4% of firms earned profits of between 0 % 
and 10%,  while 5.4% of enterprises generated profits of more than 70%. Profitability varies greatly 
across agricultural sectors, with crops generally more profitable than livestock or agro -processing 
(profitability in both of which declined in 2019).4 According t o OECD data, yields for wheat, maize, 
soya beans, and rice have been increasing since the early 2000s but remain below the average for 
OECD countries (with the exception of rice, where yields are higher).5 
 
1 FAOSTAT, Crops and Livestock Products.  Viewed at: http://www.fao.org/faostat/en/#data/QCL . 
2 FAOSTAT, Crops and Livestock Products . 
3 FAOSTAT, Land Use . Viewed at: http://www.fao.org/faostat/en/#data/ RL. 
4 Government Order No.  1684-r of 26  June 2020 approving the National Report on the Progress and the 
Implementation Results for 2019 of the State Programme for Agricultural Development and Regulation of 
Agricultural Markets.  
5 OECD/FAO (2021), OECD -FAO Agricultural Outlook (Edition 2020) , OECD Agriculture Statistics 
database. Viewed at: https://data.oecd.org/agroutput/crop -production.htm . WT/TPR/S/416  • Russian Federation  
- 94 - 
Table 4.1 Production of selected agricultural products, 2015 -20 
 
2015  2016  2017  2018  2019  2020  
Value of production (RUB billion)        
Total 4,139.0  4,443.8  4,516.0  4,629.2  5,187.4  5,741.1  
Wheat  542.0  648.2  628.2  615.8  765.3  1,051.1  
Barley  128.5  139.1  139.9  137.9  195.7  204.0  
Maize  103.2  127.6  92.9 90.3 143.7  146.6  
Oats 24.9 30.5 35.6 28.2 30.4 35.2 
Rye 11.0 15.7 14.3 10.7 11.5 22.9 
Sunflowers  199.8  258.2  191.6  241.0  278.2  325.8  
Sugar  119.8  149.8  116.1  111.3  105.8  93.3 
Milk 617.1  649.8  739.1  699.6  780.1  833.1  
Beef and veal  263.2  268.2  267.1  278.5  295.9  316.6  
Pig meat  407.1  406.8  439.1  477.7  477.8  505.1  
Poultry meat  430.4  447.9  450.4  472.6  506.9  498.0  
Eggs 177.3  182.1  159.8  175.0  187.5  195.3  
Potatoes  335.3  230.2  252.0  281.0  233.0  231.2  
Non-MPS commodities  779.5  889.9  989.9  1,009.7  1,175.5  1,282.8  
Production quantity (million tonnes)        
Wheat  61.8 73.3 86.0 72.1 74.5 85.9 
Barley  17.5 18.0 20.6 17.0 20.5 20.9 
Maize  13.1 15.3 13.2 11.4 14.3 13.5 
Oats 4.5 4.8 5.5 4.7 4.4 4.1 
Rye 2.1 2.5 2.5 1.9 1.4 2.4 
Sunflowers  9.8 11.8 11.2 13.6 15.4 13.3 
Sugar  5.1 5.8 6.7 6.3 7.3 5.1 
Milk 29.9 29.8 30.2 30.6 31.4 32.2 
Beef and veal  1.4 1.3 1.3 1.4 1.4 1.4 
Pig meat  2.7 2.9 3.0 3.2 3.4 3.7 
Poultry meat  4.3 4.4 4.7 4.7 4.7 4.7 
Eggs 2.4 2.4 2.5 2.5 2.5 2.5 
Potatoes  25.4 22.5 21.7 22.4 22.1 19.6 
Source:  OECD, Agricultural Policy Monitoring and Evaluation. Viewed at: 
http://www.oecd.org/agriculture/topics/agricultural -policy -monitoring -and-evaluation/ . 
4.1.1   Trade  
4.6.  Despite the increases in production, the Russian  Federation rem ains a net importer of 
agricultural goods. Agricultural exports increased by more than 40% over the period 2016 -19 in 
nominal USD  terms to USD  20 billion and increased by another 23.6% between 2019 and 2020. 
They stayed constant as a share of exports at 4. 7% until 2019 before increasing to 7.4% in 2020.6 
The increase in exports was broad based across most of the important export products with 
particularly notable exceptions of maize and some tobacco products, which declined over the 
reporting period (in addition to some other products) (Table 4.2). Four p roducts account for more 
than half of the value of all exports (wheat and meslin, certain vegetable oils, barley , and chocolate 
(preparations)). In 2019, agricultural exports were primarily destined for Turkey, Kazakhstan, the 
European  Union (EU -27), Egypt , and China, but some products are primarily shipped to other 
countries (such as barley to the Kingdom of Saudi Arabia).7 
Table 4.2 Exports of selected agricultural products, 2014 -20a 
(USD million, unless otherwise indicated)  
HS4 Product description  2014  2015  2016  2017  2018  2019  2020  
Total agriculture exports  16,135  13,379  14,324  17,666  20,555  20,101  24,847  
  (% of total exports)  3.2 3.9 4.7 4.7 4.6 4.7 7.4 
1001 Wheat and meslin  5,423  3,949  4,216  5,796  8,432  6,403  8,189  
1512 Sunflower -seed, safflower or 
cotton -seed oil and fractions 
thereof  1,461  1,191  1,440  1,780  1,602  2,206  2,811  
1003 Barley  785 944 424 732 1,024  764 1,086  
1806 Chocolate and other food 
preparations containing cocoa  651 437 477 552 632 720  729 
 
6 Using WTO definition of agriculture, see footno te in Table 4.2.  
7 No trade data by partner country were available for 2020.  WT/TPR/S/416  • Russian Federation  
- 95 - 
HS4 Product description  2014  2015  2016  2017  2018  2019  2020  
1005 Maize (corn)  700 601 861 846 853 618  698 
1514 Rape, colza or mustard oil and 
fractions thereof  295 191 169 239 361 514 586 
1905 Bread, pastry, cakes, biscuits 
and other bakers' wares  361 306 324 342 369 425 450 
2306 Oil-cake and other solid 
residues  455 308 270 221 286 416 433 
1507 Soya-bean oil and its fractions  292 305 345 392 406 398 482 
0713 Dried leguminous vegetables  210 322 385 411 325 360 349 
0207 Meat and edible offal, of the 
poultry  65 76 118 173 191 327 427 
1201 Soya beans, whether or not 
broken  24 119 133 169 290 279 487 
1701 Cane or beet sugar and 
chemically pure sucrose, in 
solid form  6 7 59 276 178 271 467 
2106 Food preparations not 
elsewhere specified or 
included  225 156 318 418 233 271 294 
2402 Cigars, cheroots, cigarillos 
and cigarettes, of tobacco or 
of tobacco substitutes  564 518 451 375 302 263 196 
1206 Sunflower seeds, whether or 
not broken  42 33 84 132 50 254 564 
2403 Other manufactured tobacco 
and manufactured tobacco 
substitutes  214 224 205 212 187 252 316 
2303 Residues of starch 
manufacture and similar 
residues  142 116 144 149 202 222 240 
1204 Linseed, whether or not 
broken  152 137 206 189 147 219 230 
1517 Margarine; edible mixtures or 
preparations of animal or 
vegetable fats or oils  190 155 162 200 188 208 229 
a Major items according to 2019 data.  
Note:  WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS 03, 0508, 
0511.91, 1504.10, 1504.20, 1603 -1605, and 2301.20), plus some selected products (HS  2905.43 -
2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 5101 -5103, 
5201-5203, and 5301 -5302).  
Source:  WTO Secretariat c alculations, based on UN Comtrade database.  
4.7.  Imports of agricultural products increased by 14. 1% between 2016 and 20 20, less than 
exports, and slightly fell as a share of total imports. In 2020, agricultural imports were valued at 
USD 28.3 billion. Imports were particularly dominated by fruits, dairy products, (alcoholic) 
beverages, (preparations of) meats, and soya beans, accounting for around 47.9% of total 
agricultural imports (Table 4.3). In 2019, imports primarily originated in the EU -27, Belarus, Brazi l, 
China, and Turkey.8 
Table 4.3 Imports of selected agricultural products, 2014 -20a 
(USD million, unless otherwise indicated)  
HS4 Product description  2014  2015  2016  2017  2018  2019  2020  
Total agriculture imports  37,702  25,429  24,789  28,650  28,087  28,394  28,275  
  (% of total imports)  13.2 13.9 11.9 11.0 11.7 11.5 12.2 
0805 Citrus fruit, fresh or dried  1,487  1,191  1,171  1,192  1,237  1,289  1,279  
0406 Cheese and curd  1,582  720 751 943 965 1,161  1,227  
2204 Wine of fresh grapes  1,143  691 728 1,004  1,051  1,161  1,093  
0803 Bananas, including plantains, 
fresh or dried  958 910 999 1,140  1,155  1,120  1,117  
2208 Spirits, liqueurs and other 
spirituous beverages  1,237  713 684 947 943 1,114  976  
0202 Meat of bovine animals, frozen  2,249  1,161  833 895 893 809 708  
1201 Soya beans, whether or not 
broken  1,151  942 977 966 993 792 862  
2309 Preparations of a kind used in 
animal feeding  808 560 561 707 746 762 848  
 
8 No trade data by partner country were available for 2020.  WT/TPR/S/416  • Russian Federation  
- 96 - 
HS4 Product description  2014  2015  2016  2017  2018  2019  2020  
2106 Food preparations not 
elsewhere specified or 
included  953 485 948 1,181  645 670 712  
1511 Palm oil and its fractions  642 642 647 702 749 668 793  
2401 Unmanufactured tobacco; 
tobacco refuse  1,044  952 921 721 664 651 628  
0405 Butter and other fats and oils 
derived from milk  742 307 400 535 426 640 600  
0702 Tomatoes, fresh or chilled  1,045  676 492 561 631 639 555  
0901 Coffee  572 511 517 639 593 631 652  
1806 Chocolate and other food 
preparations containing cocoa  631 347 345 462 540 587 547  
0808 Apples, pears and quinces, 
fresh 980 540 526 601 725 586 772  
0810 Other fruit, fresh  453 293 263 339 441 477 536  
0809 Apricots, cherries, peaches, 
plums and sloes, fresh  504 278 277 416 431 461 640  
0402 Milk and cream  657 412 510 527 305 428 332  
0902 Tea, whether or not flavoured  646 638 548 525 497 426 413  
a Major items according to 2019 data.  
Note:  WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS 03, 0508, 
0511.91, 1504.10, 1504.20, 1603 -1605, and 2301.20), plus some selected products (HS  2905.43 -
2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 5101 -5103, 
5201-5203, and 5301 -5302).  
Source:  WTO Secretariat calculations, based on UN Comtrade database; and data provided by the 
authorities.  
4.1.2   Policies  
4.8.  The agricultural policies of the Russian  Federation operate within the framework of its 
membership in the Eurasian Economic Union (EAEU). Member States agreed to a (coordinated) 
agro-industrial policy outlining principles for a "b alanced" development of agricultural and food 
production as well as markets, fair competition among member States, and explicitly the "protection 
of the interest of agricultural producers".9 Annex 29 to the Treaty on the Eurasian Economic Union 
(EAEU Treaty) sets principles for state support to agriculture and prohibits the use of measures that 
distort trade to a "larger extent"10, stating that EAEU member States' "commitments on state suppor t 
measures that distort agricultural trade undertaken as a condition for the accession to the WTO" 
also become their EAEU commitments.11 Disciplines regarding state support to agriculture are in line 
with those of the WTO  Agreement on Agriculture.12 Suppor t policies remain implemented at the 
national level, and there are no financial transfers among the EAEU member States related to 
agricultural policy.  
4.9.  In the Russian  Federation, the Ministry of Agriculture is responsible for setting policies affecting 
agriculture at the federal level. They are implemented by the federal subjects, using allocations from 
the federal budget supplemented with regional budgets.  
4.10.   In accordance with the EAEU Treaty, technical regulations that establish mandatory 
requirements for fo od products are set at the EAEU level. Mandatory safety requirements for all food 
products and related processes of production (manufacturing), storage, transportation, sale, and 
disposal are established by the technical regulation of the Customs Union (TR  CU) on Food Safety.13 
General requirements for the packaging of goods and labelling requirements for foodstuffs are set 
out in EAEU technical regulations TR CU 005/2011 and TR CU 022/2011, respectively.  In addition, 
 
9 Treaty on the Eurasian Economic Union, Article  94. 
10 According to the Factual Presentation on the Treaty on the Euras ian Economic Union, they include 
subsidies for export to another member State and support contingent on the use of domestic agricultural 
products in the production of agricultural products. These are listed in Section IV of the Protocol on Agricultural 
Support. WTO document WT/REG358/1, 13 July 2018.  
11 For detailed information, see Section XXV and Annex 29 to the EAEU Treaty.  
12 The EAEU Commission is also entrusted with competencies to monitor agricultural policies, providing 
recommendations on effectivene ss, and promoting a level playing field. See Factual Presentation on the Treaty 
on the Eurasian Economic Union, WTO document WT/REG358/1, 13  July 2018.  
13 Customs Union Commission Decision No.  880 of 9 December 2011 on the Adoption of the Technical 
Regulati on of the Customs Union on Food Safety.  WT/TPR/S/416  • Russian Federation  
- 97 - 
packaging, marking, and labelling requi rements are stipulated in all product -specific EAEU technical 
regulations .14 Uniform inspection and market monitoring activities carried out by EAEU -accredited 
national competent authorities are also in place for products on the common list (for more 
information, see Sections 3.3.2 and 3.3.3). Under the specific technical regulations, each EAEU 
member State determines the authorities responsible for oversight. In the Russian  Federation, 
control at checkpoints is provided by the Federal Customs Service. Base d on documentary checks, 
it can invite the responsible authority to provide assessment in case of documentary discrepancies.  
4.11.   According to the Federal Law 264 -FZ of 29  December  2006 on Development of Agriculture (as 
amended), the overall objective of agricu ltural policies is to ensure food security and sustainable 
development of rural areas by developing agriculture as a competitive economic activity with efficient 
markets. According to the authorities, state agrarian policy is aimed at increasing the volume  of 
agricultural production (by increasing the efficiency of agriculture) and ensuring stable 
socio-economic development of rural areas as basic guarantees of food security.15 To achieve this, 
the Government applies a combination of policies, including pol icies at the border (import and export 
duties, tariff rate quotas, and export restrictions (implemented in the context of the pandemic)), 
support programmes (interest rate subsidies, support to capital investments, production subsidies 
based on output, dec oupled income support, and subsidies for insurance premiums), and 
interventions in domestic (grain) markets.16 As a response to the pandemic, additional support 
measures were put in place (Section 4.1.3.2) . 
4.12.   Strategies such as the 2020 Strategy for Developm ent of Agriculture and Fisheries Through 
2030 or the 2019 Long -term Strategy for the Development of the Grain Complex until 203517 provide 
further direction for the implementation of overall policy, and they also reflect priorities outlined 
under the natio nal objectives. The Strategy for Development of Agriculture and Fisheries Through 
2030 explicitly reflects seven of the national goals in the context of the agriculture and fisheries 
sector, and stresses the role of the State in supporting structural trans formation in rural areas 
through eight strategy objectives around improved housing, education, technology, digitization, and 
increasing value -added production, investment, and exports, while ensuring food security. These 
strategy objectives are in turn ref lected in the State Programmes implemented by the Ministry of 
Agriculture. Funding to activities is allocated via these State Programmes.  
4.13.   In January 2020, a new version of the Food Security Doctrine was also approved18, replacing 
the earlier version adopte d in 2010 that had been repeatedly amended. The new document adjusts 
the methodology to assess food security, adding indicators of compliance with standards and the 
economic and physical availability of food to the previously used indicator of domestic pro duction in 
total domestic consumption. It includes new products such as vegetables and melons, fruits and 
berries, and seeds, while increasing for a number of products the targets for the share of domestic 
production in domestic consumption.19 It also func tions as a framework for additional legal acts in 
the area of agriculture and fisheries.  
4.14.   Agricultural support is provided through border policies that continue to play an important 
role, as well as domestic support that is primarily spelled out in the Stat e Programme for 
 
14 The EAEU technical regulations in force can be viewed at: 
http://www.eurasiancommission.org/ru/act/texnreg/deptexreg/tr/Pages/TRVsily.aspx . 
15 In this context, food security presupposes the unconditional provision of the  country's population with 
safe, high -quality, and affordable agricultural products in volumes that allow guaranteeing rational norms for 
the consumption of food products.  
16 According to the notifications of the Russian  Federation and discussions in the Co mmittee on 
Agriculture, no price interventions were carried out in 2017 and 2018. According to the authorities, no price 
interventions took place in 2019, and more than 1.4 million tonnes of grain were sold in 2020.  
17 The strategy sets targets for the prod uction and export of grains, requiring an approximate budget of 
over RUB  4.4 trillion from public and private sources. Ministry of Agriculture, Ministry of Agriculture Completes 
Development of Long -term Grain Complex Strategy , 16 July 2019. Viewed at: 
https://mcx.gov.ru/en/news/Ministry -of-Agriculture -Completes -Development -of-Long-term-Grain -Complex -
Strategy/ . 
18 Preparing this new ve rsion was part of the activities under the State Programme for the Development 
of Agriculture.  
19 Ministry of Agriculture, New Food Security Doctrine Approved , 27 January 2020. Viewed at: 
https://mcx.gov.ru/en/news/New -Food-Security -Doctrine -Approved/ . WT/TPR/S/416  • Russian Federation  
- 98 - 
Development of Agriculture adopted in 201220 and revised to include a second phase in 2019.21 The 
second phase (covering 2018 -25 and further described below) aims to ensure food security, increase 
domestic production as well as exports, and  increase the investment in physical assets in the sector, 
reflecting the new strategies mentioned above.  Businesses and individuals engaged in agriculture 
can opt to pay a Unified Agricultural Tax of 6% on the difference between income and total costs.22 
4.1.2.1   Border policies  
4.15.   Average applied tariffs on agricultural goods (including ad valorem  equivalents (AVEs)) stood 
at 13.4% in 2021 (a decrease from 14.6% in 2016). They ranged from duty free to 138.8%, with 
37.3% of tariff lines having non -ad valorem  tariff ra tes. Average tariffs for agricultural goods are 
higher than the average for other products, and a smaller share of tariff lines are duty free (7.7%) 
compared to all tariff lines (16.0%). Agricultural imports under preferential trade agreements also 
general ly face higher tariffs than non -agricultural products. Product groups with the highest applied 
MFN tariffs are animals and animal products, dairy products, and sugars ( Section 3.1.3 ). 
4.16.   Temporary introduction and suspension of import and export duties and ta riff rate quotas are 
also used to stabilize domestic prices, including when domestic price interventions are used. In 
addition , as a response to the pandemic in 2020, the Government temporarily introduced export 
quotas on wheat, meslin, barley, rye, and maize.23 In December 2020, the Russian  Federation 
established a temporary export tariff rate quota on certain grains for most of the first half of 2021, 
with in -quota export duties initially set at 0% for rye, barley, and corn, and at EUR  25 per tonne for 
wheat and meslin.24 Out-of-quota duties were set at 50% but at least EUR  100 per tonne. In early 
2021, the Government adjusted export duties on wheat, barley, and corn within this export quota 
to stabilize domestic market prices.25 Following additional cha nges, as from 2  June 2021 these duties 
were to be replaced by floating duties, calculated using a benchmark index. According to the 
authorities, the export duty on sunflower seeds was also significantly increased for the period from 
9 January to 30  June 2021 (to 30% but at least EUR  165 per tonne), and the authorities introduced 
export duties on soya beans for the period February -June 2021. Both export duties have been 
extended at higher rates from 1  July 2021 to 31  August 2022.26 In 2020, the EAEU introduc ed a 
temporary ban on the exports of some products including onions, garlic, turnips, rye, rice, 
buckwheat, millet, cereals, wholemeal flour, and cereal granules and other products.27 According to 
the authorities, it was in place from 1  April to 30  June 2020 as a response to the adverse effect of 
the COVID -19 pandemic.  
4.17.   The Russian  Federation applies tariff rate quotas on the import of fresh, chilled, and frozen 
beef and poultry, as well as (modified) whey (Table  3.4). In line with its commitments upon 
accession, the Russian  Federation eliminated the tariff quotas on fres h, chilled, and frozen pork and 
pork trimming as of 1  January  2020, replacing it with an ad valorem  duty of 25%, less than half of 
the over -quota tariff rate previously applied. Quota allocations to individuals or companies are based 
on historical import p erformance.28 Since 2014, the Russian  Federation prohibits the import of 
certain agricultural goods from a list of countries on national security grounds. The ban was recently 
 
20 Government Resolution No.  717 of 14 July 2012 on the State Programme for the Development of 
Agriculture and Reg ulation of the Markets of Agricultural Products, Raw Materials and Food.  
21 Government Resolution No.  98 of 8 February 2019 on Introduction of Changes into Government 
Resolution No.  717 of 14  July 2012.  
22 Tax Code, Chapter 26.1.  
23 These were in place from 1 April 2020 until 30 June 2020. WTO, COVID -19 Measures Affecting Trade 
in Goods . Viewed at: https://www.wto.org/english/tratop_e/covid19_e/trade_related_goods _measure_e.htm . 
24 The wheat export duty had previously been reduced to zero in September 2016.  
25 Ministry of Agriculture, "Russian Prime Minister Signs Resolution on Grain Export Duties", 
28 January  2021. The resolution was also expected to refocus market participants from selling agricultural raw 
materials abroad to export high value -added agricultural products. Viewed at: 
https://mcx.gov.ru/en/news/R ussian -Prime -Minister -signs-resolution -on-grain-export -duties/ . 
26 Government Order No.  754 of 30 August 2013 about Approval of Rates of Exported Customs Duties 
on the Goods Exported from the Russian  Federation Outside the Limits of the States – Participant s of 
Agreements on the Customs Union, and about Recognition Invalid of Some Acts of the Government of the 
Russian  Federation (last amended by Government Resolution No.  803 of 27 May 2021).  
27 EEC Board Decision No. 43 of 30 March 2020, as amended by EEC Bo ard Decision No. 57 of 
21 April 2020. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Documents/EP.pdf/1.11.pdf . 
28 WTO document G/AG/N/RUS/31, 21 May 2021.  WT/TPR/S/416  • Russian Federation  
- 99 - 
extended to the end of 2021. Fresh and chilled tomatoes from Turkey are also ban ned from 
importation (Section 3.1.5).  
4.18.   According to its notifications to the WTO Committee on Agriculture, the Russian  Federation 
did not provide export subsidies for agricultural products during the review period.29 However, a 
number of Members have raised  questions in recent Committee on Agriculture meetings, asking for 
clarification on the provision of financing support for exporters and exports via the Russian Export 
Center, a one -stop shop for export financing and other support (for additional informati on, see 
Section 3.2.4 ).30 The Center arranges for export credits, insurance, and guarantees to exporters and 
importers of Russian goods via Eximbank and EXIAR (see also Section 3.2.4).31 Eximbank provides 
export credits and guarantees, while EXIAR offers c omprehensive export insurance programmes. 
According to the authorities, the total value of agricultural exports covered by EXIAR in 2020 was 
USD 993 million, and those directly supported by Eximbank were valued at USD  124.3 million. The 
share of agricultur al products supported  by Eximbank was 7% in 2020 (10% in 2019) and by EXIAR 
7% (6% in 2019).  
4.19.   According to the authorities, no state trading arrangements or enterprises are in place 
regarding the importation or exportation of agricultural products.32 
4.20.   Shipme nts related to the provision of international humanitarian assistance are excluded from 
the application of the export tariff quota for grain crops introduced in December 2020.33 
4.1.2.2   Domestic policies  
4.21.   In the State Programme for the Development of Agriculture (2 018-25), specific activities are 
outlined under two subprogrammes being implemented between 2019 and 2025.34 The first aims to 
support agro -industrial sectors directly through five projects that focus on increasing production of 
basic agricultural goods35, stimulating investment, supporting technological modernization, 
supporting agro -industrial exports, and supporting farmers. The second subprogramme consists of 
seven targeted programmes and activities that aim to address the operational environment in the  
agro-industrial sectors, the sustainable development of rural areas, land reclamation, scientific and 
technical support, sanitary and phytosanitary (SPS) supervision, and "digital agriculture" (some of 
these were only implemented in 2019 and 2020) (Table 4.4). Some of these projects reflect federal 
projects designed under the national objectives, while others reflect programmes designed 
separately and linked to the complex set of strategic documents. The Ministry of Agriculture also 
implements a separate S tate Programme on Integrated Development of Rural Territories36 that 
indirectly provides support to agricultural activities (see below).  
4.22.   Activities supported under the State Programme for the Development of Agriculture primarily: 
(i) provide subsidies to producers and for land reclamation efforts, including construction and 
modernization of irrigation and drainage systems, soil enhancement, and soil liming; (ii)  provide 
 
29 WTO documents G/AG/N/RUS/15, 23 January 2017; G/AG/N/RUS/18, 29 January 2018; 
G/AG/N/RUS/22, 1 February 2019; G/AG/N/RUS/2 6, 15 January 2020; and G/AG/N/RUS/30, 12 March 2021.  
30 See for example WTO, Agriculture Information Management System, question IDs 95138, 93175, and 
92032. Viewed at: https://agims -qna.wto.org/public/Pages/en/Search.aspx . 
31 The Russian Export Center is the sole shareholder of EXIAR (which in turn is the owner of Eximbank), 
a development institution established by the Government to support the development of the non -resource 
exports.  
32 Some members have raised questions in the Committee on Agriculture and the Working Party on 
State Trading Enterprises as to whether the United Grain Company should be considered a state trading 
enterprise. The Government's view is that it has not granted sp ecial privileges ultimately affecting trade, 
imports, and exports, and the Company undertakes trading activities on a commercial basis (see below).  
33 Government Resolution No.  2097 of 14 December 2020 on the Tariff Quota for the Export of Grain 
Crops Outsi de the Territory of the Russian  Federation to States that Are Not Members of the Eurasian Economic 
Union, Article  2. 
34 An additional seven subprogrammes were implemented only  in 2018. From 2019, most activities were 
included under the remaining subprogramm es: Development of Sectors of the Agro -Industrial Complex and 
Ensuring Conditions for the Development of the Agro -Industrial Complex.  
35 The State Programme sets higher target growth rates for domestic production compared to target 
growth rates for imports.  See Annex 1, p. 12.  
36 Government Decree No.  696 of 31 May 2019 on the Approval of the State Programme of the 
Russian  Federation "Integrated Development of Rural Areas" and on Amendments to Some Acts of the 
Government of the Russian  Federation.  WT/TPR/S/416  • Russian Federation  
- 100 - 
support to investment activities through subsidies for interest rate payme nts, including interest rate 
subsidies to enterprises engaged in production, processing, and sale of agricultural products that 
participate in "competitiveness enhancement programmes"37; and (iii)  provide direct support for 
capital investments to construct  or modernize agricultural facilities (the grain strategy also foresees 
subsidized credit to modernize machinery), subsidies for insurance premiums, subsidies for low 
productivity areas, and general services support . 
4.23.   One of the projects implemented via the  State Programme is a federal project called Export 
of Agro -Industrial Products, which aims to increase production of agricultural products (including 
high value -added products), providing commodity distribution infrastructure, removing trade 
barriers, and  supporting the promotion of product groups abroad.38 
4.24.   The State Programme also contains activities aimed to implement the Federal Scientific and 
Technical Programme for Agricultural Development (2017 -25).39 It supports the development and 
use of improved ( new) seeds and breeding animals, feed (additives), veterinary medicinal 
preparations, agrochemicals, and pesticides; the improvement of storage, processing, and quality 
control of agricultural products; and improvements in relevant (vocational) training. T otal funding 
for the project amounts  to RUB  49.1 billion from the federal budget and extrabudgetary resources.40 
Table 4.4 State Programme for the Development of Agriculture, 2nd phase, 2018 -25 
Project  Timeframe  Federal 
allocations 2020 
(RUB million)  
Subprogramme I: Development of Sectors of the Agro -Industrial 
Complex  2018-25 210,165  
Development of Branches of the Agro -Industrial Complex, Providing 
Accelerated Import Substitution of the Main Types of Agricultural Products, 
Raw Materials and Food  2018-25 61,816  
Stimulation of Investment Activity in the Agro -Industrial Complex  2018-25 108,141  
Technical Modernization of the Agro -Industrial Complex  2018-25 6,637  
Federal Project: Export of Agricultural Products  2018-24 29,739  
Federal Project: Creation of a Support System for Farmers and the 
Development of Rural Cooperation  2018-24 3,832  
Subprogramme II: Ensuring Conditions for the Development of the 
Agro -Industrial Complex   95,576  
Digital Agriculture  2018-25 299 
Development of the Reclamation Complex in the Russian  Federation  2018-25 14,311  
Ensuring General Conditions for the Functioning of the Branches of the 
Agro-Industrial Complex  2018-25 29,889  
Scientific and Technical Support for the Development of Branches of the 
Agro-Industrial Complex  2018-25 1,971  
Organization of Veterinary and Phytosanitary Supervision  2018-25 13,831  
Sustainable Development of Rural Areas  2014-18 33,759  
Implementation of the Functions of the Apparatus of the Responsible 
Executor of the State Programme  2018-25 1,516  
Source:  Information provided by the authorities.  
4.25.   Grain market interventions remain in the toolkit of the Ministry of Agriculture. According to 
the authorities, the Government procures grains via the State Grain Intervention Fund when prices 
are below minimum calculated prices, and sells grains when price s are above maximum calculated 
prices. Such prices are set based on producer prices during the last marketing year. While the State 
Grain Intervention Fund did not procure grains between 2017 and 2020, it did sell more than 
 
37 Governme nt Resolution No.  512 of 26 April 2019 on the Provision of Subsidies from the Federal 
Budget to Russian Credit Institutions, International Financial Organizations and the State Development 
Corporation VEB.RF for Reimbursement of Lost Income on Loans Issued  to Agricultural Producers (Except for 
Agricultural Credit Consumer Cooperatives), Organizations and Individual Entrepreneurs Engaged in 
Production, Primary and (or) Subsequent (Industrial) Processing of Agricultural Products and Their Sale, at a 
Preferent ial Rate (as amended).  
38 Such support includes, inter alia,  analytical support for the export of agricultural products, purchase 
of laboratory equipment, support for marketing, and systemic efforts to improve veterinary well -being and 
certification for me at and meat products.  
39 This programme is implemented jointly by the Ministry of Agriculture and the Ministry of Industry and 
Trade.  
40 Government Decree of 25 August 2017 No.  996 on the Approval of the Federal Scientific and 
Technical Programme for Agricul tural Development for 2017 -25. WT/TPR/S/416  • Russian Federation  
- 101 - 
1.4 million tonnes in 2020, acco rding to the authorities. In practice, interventions of the State Grain 
Intervention Fund are carried out through an agent, the United Grain Company (UGC). Fully 
government -owned, UGC owns logistics infrastructure and equipment suited to the grains trade, and 
undertakes trading activities (including internationally) on a commercial basis, according to its 
website.41 
4.26.   Overall, agricultural support policies are administered by the regions, co -funded from federal 
and regional budgets according to budgetary legi slation. Regions can allocate additional funding to 
their agricultural support activities depending on their sectoral and product priorities. In 2020, the 
Ministry of Agriculture started to categorize existing support programmes into two categories for 
administrative purposes. According to the OECD, these could be described as "compensatory" and 
"stimulative" support.42 The authorities stress that the names of these categories have not been 
formally finalized and that no changes to the system of support measures were introduced.  
4.27.   Budget allocations to the State Programme increased significantly to nearly RUB  1.2 trillion in 
2018, about 40% of GDP from crop and animal production, hunting, and related service activities, 
and remaining at higher annua l allocations of around RUB  750 billion to RUB  850 billion per year for 
the period 2019 -25.43 These increases primarily come from extrabudgetary resources. According to 
the authorities, extrabudgetary resources mentioned in the State Programme relate to ex pected 
private sector investments. In 2019, nearly three quarters of the actual  budget execution was spent 
on the first subprogramme (development of the agro -industrial complex), with the remainder on the 
other (ensuring conditions for agro -industrial deve lopment), primarily by the Ministry of 
Agriculture.44 Most targets outlined in the State Programme were over -achieved in 2019 but a few 
lagged behind, such as the volume of investment, actual added value generated, livestock 
production, and the profitabili ty of enterprises. Total federal budget  execution on agriculture and 
fisheries was RUB  203 billion in 2018, the latest year for which data are available.45 
4.28.   According to data provided for 2019 by the authorities, product -specific support other than 
market p rice interventions was directed primarily at the milk sector, with the largest share of 
non-product -specific support spent on interest rate subsidies on short -term credits and investment 
loans and other interest rate subsidies, jointly accounting for 50.9%  of total non -product -specific 
aggregate measure of support (AMS).46 The second -largest area of support was for investments in 
production capital (USD  545 million), followed by subsidies for pedigree livestock (USD  250 million). 
Costs for land reclamation accounted for USD  181 million, while support for perennial plantations 
accounted for USD  117 million in 2019.  
4.29.   Since late 2019, firms have been able to receive support to offset some of the costs associated 
with the certification process of agricultural pro ducts in foreign markets.47 Domestic companies are 
eligible to receive a partial reimbursement of actual certification costs incurred and documented. 
The project is implemented by the Russian Export Center, based on an agreement with the Ministry 
of Agricu lture. According to the authorities, no subsidies were provided in 2019, and data for 2020 
are not yet available. The general compatibility of this support with commitments on export subsidies 
 
41 According to the Report of the Working Party on the Accession of the Russian  Federation, the 
Government had initially planned to divest 100% of the United Grain Company by 2012. WTO document 
WT/ACC/RUS/70, 17 November 2011,  para. 67.  
42 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 , p. 473.  
43 Between 2012 and 2017, they were around RUB  250 billion per year. Viewed at: 
http://docs.cntd.ru/document/902361 843. 
44 Ministry of Agriculture (2020), National Progress and Results Report in 2019 of the State Agricultural 
Development and Regulatory Programme for Agricultural Products, Raw Materials and Food . 
45 Rosstat, Execution of Federal Budget of the Russian  Federation in 2016 . Viewed at: 
https://eng.rosstat.gov.ru/storage/subblock/subblock_document/2018 -08/11/24 -04.doc . 
46 According to the authorities, interest rate support has been shifting from support to personal 
households, peasant (farm) enterprises, and agricultural consumer cooperati ves towards agricultural producers 
and companies engaged in the production and processing of agricultural goods. See WTO Agriculture 
Information Management System, question ID 95096. Viewed at: https://agims -
qna.wto.org/public/Pages/en/Search.aspx . 
47 Government Decree No.  1816 of 25 December 2019 on State Support of Organizations in Order to 
Compensate for Part of the Costs Associated with the Certification of Agricultural Products in For eign Markets.  WT/TPR/S/416  • Russian Federation  
- 102 - 
by the Russian  Federation has been discussed repeatedly in the Committee on Agriculture with 
questions raised and answers provided.48 
4.30.   The Russian Government also has provided two types of domestic transport cost subsidies to 
various agricultural products since 2017.49 Under the first scheme as outlined in Decree No.  1104 of 
15 September 201750, companies registered in the Russian  Federation can apply for a subsidy for 
the costs related to the transportation of certain types of agricultural products within the territory  of 
the Russian  Federation. This scheme is managed by the Russian Export Center as an agent of the 
Government, based on an agreement with the Ministry of Agriculture. The second scheme provided 
a subsidy for transportation costs of domestic grain shipments  (established under Decree No.  1595 
of 20 December 2017) to the Russian Railways in 2017 and 2018 only, according to the authorities. 
This subsidy was a compensation for revenue losses from the application of concessional rates on 
the transport of wheat, b arley, and corn shipments within the territory of the Russian  Federation. 
These subsidies accounted for USD  55 million in 2017, USD  45 million in 2018, and USD  30 million 
in 2019. While these subsidies are for domestic transport costs, such cargoes could p otentially 
subsequently be exported, but no information on such amounts is available, according to the 
authorities. It remained unclear whether a producer could benefit from a direct transport cost 
subsidy for a shipment of grains that also benefited from concessional railway transport rates.  
4.31.   In 2020, support for the integrated development of rural territories was established as a 
separate State Programme, having previously been part of the State Programme for the 
Development of Agriculture. The newly esta blished State Programme on Integrated Development of 
Rural Territories aims to develop rural areas, where around a quarter of the population lives, and 
addresses the repair, construction, and reconstruction of social and housing facilities, transport and 
engineering infrastructure, and the purchase of transport vehicles. The Ministry of Agriculture is the 
main implementing authority. Its budget for the period 2020 -25 amounts to RUB  1.2 trillion, 
primarily funded from the federal budget and extrabudgetary re sources with the remainder coming 
from regional budgets.51 
4.32.   In addition to agriculture -specific support, agricultural producers also benefit from 
COVID -related general support measures, including the prolongation of concessional short -term loan 
terms and an  increase in the maximum amounts provided to one borrower, an expansion of eligible 
use under such loans, the deferral of payments on accrued interest on previously concluded 
concessional short -term loans (for small enterprises as borrowers), the deferral of payments on 
accrued interest and on repayment of the principal debt on previously concluded concessional 
investment loans, and the lease of equipment on concessional terms.52 As of end -2020, 
1,392  "backbone companies" (systemic companies) have in princi ple access to larger economic 
support measures that include preferential access to credit, government guarantees for loans, 
deferment of tax payments, or subsidies. Such support can be granted in exchange for commitments 
to reduce operational costs.53 Conditions for eligibility of direct support as a "backbone company" 
include financial soundness of firms, no outstanding debt to the Government, and ownership being 
more than 50% domestic. While almost 90 large agricultural companies are classified as such 
systemic companies, no support was granted to them as part of this initiative, according to the 
authorities.  
4.33.   In early 2020, the Russian  Federation introduced a new (voluntary) programme for the 
certification of organic products. Products for sale can be lab elled "organic" once it has been 
 
48 See WTO Agriculture Information Management System, for example question IDs 95037 and 96060. 
Viewed at: https://agims -qna.wto.org/public/Pages/en/Search.aspx . 
49 These subsidies have been subject to various questions in the Committee on Agriculture (see for 
example WTO Agriculture Information Management System, question IDs 86047, 86068, 87098, 88073, 
91161, 91162, or 95068).  
50 Introduced as part of the subprogramme Development of Sectors of the Agro -Industrial Complex 
under the State Programme for the Development of Agriculture.  
51 Government Decree No.  696 of 31 May 2019 on the Approval of the State Programme  of the 
Russian  Federation "Integrated Development of Rural Areas" and on Amendments to Some Acts of the 
Government of the Russian  Federation (as amended on 10  July 2020).  
52 See Government Resolution No.  582 of 24 April 2020 on the Approval of the Rules fo r the Granting of 
Subsidies from the Federal Budget to Russian Credit Institutions for Reimbursement of Lost Income on Loans 
Issued in 2020 to Systemic Organizations for Replenishing Working Capital.  
53 See Government Resolution No.  651 of 10 May 2020 on Me asures to Support Strategic Organizations. 
For the list of backbone enterprises, see Ministry of Economic Development. Viewed at: 
https://data.economy.gov.ru/ . WT/TPR/S/416  • Russian Federation  
- 103 - 
demonstrated that they meet certain requirements outlined in Federal Law No.  280-FZ of 
3 August  2018 on Organic Products and Amendments in Certain Legislative Acts of the 
Russian  Federation, and have been included in an off icial register. Otherwise, products cannot be 
labelled as organic. As of 1  June 2021, 64 economic entities were included in the Unified State 
Register of Organic Producers. No agreement on the mutual recognition of organic labels has been 
concluded with ot her jurisdictions to date.  
4.1.3   OECD support estimates  
4.34.   According to OECD data54, the total support estimate (TSE) for agriculture in the 
Russian  Federation varied only modestly between 2016 and 2019, below RUB  700 billion, and 
declined to RUB  524 billion in 202 0, while the estimated value of production increased by 17% 
between 2016 and 2019, and increased by an additional 11% in 2020.55 Overall support to producers 
as a share of gross farm receipts declined from 12.3% in 2016 to 9.2% in 2019, and to 6.7% in 
2020, as gross farm receipts increased. This compares to an average producer support estimate 
(PSE) of 17.6% in OECD countries and 8.5% in emerging and developing economies covered by the 
OECD database over the period 2017 -19.56 
4.35.   In particular, decreasing market price support (OECD definition) over the reporting period, 
partially compensated by increases in "miscellaneous payments"57, led to an overall decline in PSE, 
accompanied by a shift from single commodity support to group commodity support  until 2019 
(support provided to produce commodities within a specific group, rather than a specific 
commodity).58  
4.36.   Support to specific commodities continues to vary strongly across both commodities and years 
(Table 4.5). According to OECD estimates, the c ommodities with the largest support as a share of 
gross receipts in 2020 were meat, milk, and sugar, with support to maize also noteworthy in 2019 
(in other years, market price support was negative).  
Table 4.5 Total PSE and single commodity transfer values for selected commodities, 
2015 -20 
  2015  2016  2017  2018  2019  2020  
Total PSE (RUB million)  557,211  578,159  554,155  558,462  491,735  400,042  
PSE as a share of gross farm 
receipts  12.7 12.4 11.7 11.5 9.0 6.7 
I. Producer Single Commodity 
Transfers (PSCT)  357,981  404,013  365,329  349,274  268,411  185,922  
PSCT as share of gross farm 
receipts  8.6 9.0 8.0 7.5 5.1 3.2 
II. Group Commodity Transfers (GCT)  165,864  125,594  128,147  144,641  160,945  86,699  
III. All Commodity Transfers (ACT)  24,425  29,021  30,707  27,338  25,116  31,666  
IV. Other Transfers to Producers (OTP)  8,941  19,531  29,972  37,210  37,263  95,756  
Producer Single Commodity Transfers  
Wheat  
SCT (RUB million)  -49,706  1,598  -36,052  -53,426  -7,991  -63,031  
% of gross receipts  -9.2 0.2 -5.7 -8.7 -1.0 -6.0 
Barley  
SCT (RUB million)  -25,638  -1,955  -10,606  -35,495  817 -21,163  
% of gross receipts  -19.9 -1.4 -7.6 -25.7 0.4 -10.4 
Maize  
SCT (RUB million)  -7,215  -17,593  -2,688  -2,189  22,812  -1,872  
% of gross receipts  -7.0 -13.8 -2.9 -2.4 15.9 -1.3 
Oats 
SCT (RUB million)  -8,533  -10,416  -7,034  -2,725  -9,157  -9,797  
% of gross receipts  -34.2 -34.1 -19.8 -9.7 -30.1 -27.9 
 
54 OECD (2020), Agricultural Support Estimates  (Edition 2020). Viewed at: 
https://doi.org/10.1787/466c3b98 -en. 
55 OECD data estimate the overall support to agriculture in terms of market outcomes, by estimating the 
total effective transfers to producers as a result of market price interventions (including trade restrictions), 
subsidies, and direct payments, and taking stock of general services provided by the Government.  
56 OECD (2020), Agricultural Policy Monitoring and Evaluation 2020 . 
57 These are transfers  for which there is insufficient information to allocate them to the appropriate 
categories.  
58 For milk, payments based on outputs and input use also declined.  WT/TPR/S/416  • Russian Federation  
- 104 - 
  2015  2016  2017  2018  2019  2020  
Rye 
SCT (RUB million)  -102 1,226  1,765  -457 -283 1,929  
% of gross receipts  -0.9 7.8 12.3 -4.3 -2.5 8.4 
Sunflowers  
SCT (RUB million)  -19,789  -27,312  -23,995  -15,514  -25,411  -55,223  
% of gross receipts  -9.9 -10.6 -12.5 -6.4 -9.1 -16.9 
Sugar  
SCT (RUB million)  37,851  40,270  27,763  33,420  24,193  10,876  
% of gross receipts  31.6 26.9 23.9 30.0 22.9 11.7 
Milk 
SCT (RUB million)  155,933  204,779  188,190  244,669  69,080  93,089  
% of gross receipts  24.2 29.7 24.2 33.5 8.5 10.8 
Beef and veal  
SCT (RUB million)  88,884  64,203  56,257  45,860  62,893  61,086  
% of gross receipts  32.5 23.0 20.6 16.5 21.3 19.3 
Pig meat        
SCT (RUB million)  132,580  108,250  107,370  94,840  92,367  118,890  
% of gross receipts  32.5 26.5 24.4 19.8 19.3 23.5 
Poultry meat  
SCT (RUB million)  41,404  24,318  58,124  36,660  30,766  55,612  
% of gross receipts  9.6 5.4 12.9 7.8 6.1 11.2 
Eggs 
SCT (RUB million)  5,772  2,853  2,807  4,634  -751 4,205  
% of gross receipts  3.3 1.6 1.8 2.6 -0.4 2.2 
Potatoes  
SCT (RUB million)  8 8 0 0 0 0 
% of gross receipts  0.0 0.0 0.0 0.0 0.0 0.0 
Non-MPS commodities  
SCT (RUB million)  6,532  13,782  3,428  -1,005  9,074  -8,679  
% of gross receipts  0.8 1.5 0.3 -0.1 0.8 -0.7 
Source:  OECD, Agricultural Policy Monitoring and Evaluation . Viewed at: 
http://www.oecd.org/agriculture/topics/agricultural -policy -monitoring -and-evaluation/ . 
4.1.4   WTO notifications  
4.37.   The most recent notification to the WTO on agricult ure support is for calendar year 2019.59 
Recent changes reflected in the second phase of the State Programme on support for agriculture or 
the State Programme on Integrated Development of Rural Territories (whose activities the 
authorities plan to notify u nder Green Box measures60) are therefore not yet covered. The total 
notified support to agriculture in 2019 comprises Amber Box, including de minimis  support (63%), 
and Green Box support (37%).  
4.38.   Total current AMS increased from USD  52 million in 2016 to USD  94.2 million in 2019, well 
below the Russian  Federation's bound total AMS commitment level of USD  4.4 billion (since 2018 
following its reduction in line with accession commitments). Support varied between 2016 and 2019, 
as Green Box support and support n otified under the Amber Box (including de minimis support ) 
increased (although they remain below 2014 levels). The notifications show that no market price 
support (WTO definition) was provided in 2017, 2018, or 2019 for wheat, barley, and rye (nor was 
there market price support for rye in 2016). According to the notifications, changes in Green Box 
support were broad based, with decoupled income support declining and other types of support (with 
the exception of training services) increasing (Chart 4.1). Cha nges in the volume of product -specific 
AMS were driven by increases in support to milk and other livestock products, while in relative terms, 
support to grains increased most strongly. Support to rape seed was notified first in 2019. Changes 
in non -product -specific AMS resulted primarily from increases in pedigree livestock subsidies, credit 
subsidies, fuel and lubricant subsidies (in 2018), reclamation and network maintenance costs, and 
increases in support to perennial plantations (Chart 4.2). Support for  credit, milk production, and 
capital investments accounted for 68.6% of the total notified AMS.  
 
59 WTO document G/AG/N/RUS/34, 1 June 2021.  
60 WTO Agriculture Information Management System, qu estion ID 92017. Viewed at: https://agims -
qna.wto.org/public/Pages/en/Search.aspx . WT/TPR/S/416  • Russian Federation  
- 105 - 
Chart 4.1 Green Box support, 2014 -19 
(USD billion)  
 
Source:  WTO notifications.  
Chart 4.2 Amber Box support, 2014 -19 (including de minimis ) 
(USD million)  
 
Source:  WTO documents G/AG/N/RUS/11, 7 February 2017; G/AG/N/RUS/13, 28 April 2016; 
G/AG/N/RUS/21, 22 May 2018; G/AG/N/RUS/24, 18 September 2 019; G/AG/N/RUS/29, 
20 July 2020; and G/AG/N/RUS/34, 1 June 2021.  
4.1.5   Forestry  
4.39.   The Russian  Federation has a large forest area of around 815 million hectares, covering 
roughly half of the country, accounting for 20.1% of the world's forests.61 The Russian  Feder ation 
 
61 FAO (2020), The State of the World's Forests .  
0.00.51.01.52.02.53.0
2014 2015 2016 2017 2018 2019Pest and disease control Infrastructural services Training services
Research Other general services Decoupled income support
OtherChart 4.[RUS]  Green Box support in the Russian Federation, 2014 -19
(USD billion)
Source: WTO notifications. 
-8,000-6,000-4,000-2,00002,0004,0006,000
2014 2015 2016 2017 2018 2019Other non-specific product support
Credit support
Pedigree livestock subsidies
Capital production investments
Other livestock
Milk
Cattle
Other crops
Barley
Rye
WheatChart 4. [RUS] Amber Box support in the Russian Federation 2014 -19 (including de minimis ) 
(USD million)
Source: WTO documents  G/AG/N/RUS/11; G/AG/N/RUS/13; G/AG/N/RUS/21; G/AG/N/RUS/24;  G/AG/N/RUS/29; and G/AG/N/RUS/34.WT/TPR/S/416  • Russian Federation  
- 106 - 
remains a major producer of wood and wood products. Nevertheless, the value generated from 
forestry and logging is lower than its potential, according to the authorities, and represents a 
relatively small share of GDP in 2020 (0.2%)62, while employme nt in the sector accounts for 1.41% 
of total employment, compared to 1.38% in 2016. Reporting to the Ministry of Natural Resources 
and Ecology, the Federal Forestry Agency (Rosleshoz) is responsible for oversight of forestry issues 
and manages lands under the Forest Fund, an area comprising 69% of the territory of the 
Russian  Federation and comprising both lands covered by forests and others designated as forest 
lands but not covered by forest. Wood processing, cellulose and paper manufacturing, and furnitu re-
manufacturing fall under the Ministry of Industry and Trade.  
4.40.   Over the reporting period, the production and export of wood increased, while imports 
increased only slightly. The increase in export value was primarily driven by prices, as export 
quantities  and overall production volumes increased less strongly (Tables 4.6 and  4.7). 
Table 4.6 Wood production, 2016 -20 
  Unit 2016  2017  2018  2019  2020  
Rough timber  million m3 213.8  212.4  238.6  219.2  220.0  
Timber, sawn or split longitudinally, 
sliced or peeled, longitudinally, 
sliced or peeled, more than 6 mm 
thick; wooden railroad or tram 
sleepers, untreated  million m3 35.7  37.7  42.8  45.0  43.0  
Plywood  million m3 3.8  3.8  4.1  4.1  4.0  
Chipboards and similar boards of 
wood or wood -based materials  million m3 7.4  8.3  10.1  10.0  9.9  
Fibreboards made of wood or other 
lignified  materials  million m3 554.9  599.4  665.6  691.3  642.5  
Veneer for plywood  million m3 1.2  1.5  1.8  1.8  1.6  
Fuel pellets from wood processing 
waste  '000 tonnes  1,065.6  1,432.8  1,399.7  1,844.7  1,996.8  
Source:  Information provided by the authorities.  
Table 4.7 Trade in selected wood products, 2016 -20 
HS / product 
description  Unit 2016  2017  2018  2019  2020  
Exports of 
wood and wood 
productsa USD million  9,511  11,281  13,394  12,244  11,811  
% of total 
exports    3.3%  3.2%  3.0%  2.9%  3.5%  
HS 44 Wood and 
articles of wood; 
wood charcoal  USD million  6,530  7,857  9,010  8,625  8,303  
 '000 tonnes  39,488  42,114  43,902  43,344  43,253  
HS 4407 Wood 
sawn or chipped 
lengthwise, sliced 
or peeled  USD million  3,200  3,943  4,504  4,509  4,309  
 '000 tonnes  16,254  18,031  19,239  19,832  18,509  
HS 4412 
Plywood, 
veneered panel 
and similar 
laminated wood  USD million  946 1,103  1,353  1,141  1,158  
 '000 tonnes  1,670  1,683  1,831  1,886  1,943  
HS 4403 Wood in 
the rough, 
whether or not 
stripped of bark 
or sapwood, or 
roughly squared  USD million  1,352  1,468  1,462  1,116  1,022  
 '000 tonnes  15,938  15,714  15,609  13,075  13,171  
HS 47 Pulp of 
wood or of other 
fibrous cellulosic 
material  USD million  1,082  1,224  1,641  1,122  1,089  
 '000 tonnes  2,498  2,605  2,624  2,435  2,619  
 
62 According to the Strategy for the Development of the  Forest Complex of the Russian  Federation until 
2030, this figure is 0.74%.  WT/TPR/S/416  • Russian Federation  
- 107 - 
HS / product 
description  Unit 2016  2017  2018  2019  2020  
HS 4703 
Chemical wood 
pulp, soda or 
sulphate  USD million  986 1,090  1,484  1,008  996 
 '000 tonnes  2,119  2,090  2,103  2,038  2,290  
HS 48 Paper and 
paperboard; 
articles of paper 
pulp, of paper or 
of paperboard  USD million  1,899  2,200  2,742  2,496  2,419  
 '000 tonnes  3,047  3,274  3,461  3,501  4,008  
Imports of 
wood and wood 
productsa USD million  2,982  3,202  3,512  3,257  3,094  
% of total 
imports    1.6%  1.4%  1.5%  1.3%  1.3%  
HS 4411 
Fibreboard of 
wood or other 
ligneous 
materials  USD million  195 211 221 199 202 
 '000 tonnes  399 367 370 363 387 
HS 4703 
Chemical wood 
pulp, soda or 
sulphate  USD million  104 106 121 158 143 
 '000 tonnes  140 143 144 207 228 
HS 48 Paper and 
paperboard; 
articles of paper 
pulp, of paper or 
of paperboard  USD million  2,254  2,404  2,657  2,457  2,306  
 '000 tonnes  1,526  1,637  .. 1,664  1,524  
.. Not available.  
Note:  Definition of wood products: HS 44, HS 47, and HS 48.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and UN Comtrade 
database.  
4.41.   The forestry sector is regulated by the Forest Code of the Russian  Federation No.  200-FZ of 
4 December 2006 (Forest Code), which has continued to undergo revisions during the review period, 
being amended more than 10 times since 2017. Key changes include a shift from reproduction of 
resources to the conservation of forests (including changes to fire protection measures as a response 
to large wildfir es in recent years), changes in forest classification63, and changes to the way the use 
of forests is auctioned or allocated. Changes introduced in 2020 recognize forests on abandoned 
agricultural land, allowing for their exploitation, which was previously  not legally possible.64 While 
most forests remain state -owned as in the past, these changes mean that forests on abandoned 
agricultural lands can be privately owned by Russian nationals. Leases and concessions for the 
management or use of forest land are managed at the subnational level, usually following auctions 
or tenders for such leases or use rights. They are usually linked to a specific use of the forest land 
under discussion.  
4.42.   In 2018, the Government approved a Strategy for the Development of the For est Complex of 
the Russian  Federation until 2030, which was replaced in February 2021 by a new version with the 
same title, reflecting four of the national objectives.65 The Strategy aims to improve production and 
exports of a broad range of forestry produ cts in the context of a sustainable management of forests 
and socio -economic development. It is primarily implemented via the State Programmes on Forest 
 
63 While the 2015 version of the Forest Code allowed for the designation of operational and reserve 
forests, the current version of the Forest Code provides for the designation as p rotective forests (on various 
grounds), operational forests, and reserve forests. The Forest Code also regulates the use of forests on land 
outside the forest fund.  
64 Government Decree No.  1509 of 21 September 2020 on Specifics of Use, Protection, Safegua rding, 
and Reproduction of Forests Located on Agricultural Lands.  
65 Government Directive  No. 312-r of 11 February 2021 on the Approval of the Strategy for the 
Development of the Forest Complex of the Russian  Federation until 2030.  WT/TPR/S/416  • Russian Federation  
- 108 - 
Development66, Industry Development and Increasing its Competitiveness67, with close links to the 
State  Programme on Complex Development of Rural Areas (see also Section 4.1.3.2) . 
4.43.   The State Programme on Forest Development aims to better protect and maintain forests, 
improving forest management to ensure sustainable forest use and development of the forest s ector. 
The State Programme was revised multiple times over the reporting period and now spans the period 
2013-2024 with planned budget of RUB  180 billion allocated for the period 2016 -2020. The State 
Programme on Industry Development and Increasing Its Com petitiveness supports the development 
of timber industry enterprises by providing loan servicing subsidies for investments in high -tech 
processing industries or the formation of seasonal stocks of raw materials and fuel, and subsidies to 
enterprises partic ipating in priority investment projects in the Far Eastern Federal District.68 
4.44.   Support continues to be provided via a mix of general support to improving the management 
of forest resources, direct support to industry, and trade measures such as export and import duties. 
Import duties for paper products range from 0% to 14%, with an average tariff of 8.2% and only 
1.4% of tariff lines duty free. Including furniture, import duties range from 0% to 21.5%, with an 
average tariff of 8.2% and 4.1% of tariff lines  duty free. Export duties are usually applied as mixed 
duties with the ad valorem  element ranging from 5% to 80%, with some specific duties ranging from 
EUR 30 to EUR  100 per cubic metre and estimated AVEs of some of these tariffs reaching more than 
175%. Two export tariff rate quotas for coniferous wood in the rough with in -quota export duties of 
13% and 15% are in place (Section 3. 2.2). According to the authorities, 80% of tariff lines of wood 
and products thereof do not face export duties in line with co mmitments made during the accession 
process.69 The economic effects of imposing export tariffs and quotas, aimed at increasing domestic 
value added by reducing input prices for downstream producers, can potentially limit the 
development of the forestry sec tor in the country imposing these.70  
4.45.   Total budgetary appropriations to the State Programme on Forest Development amounted to 
RUB 42 billion in 202071, and support under the subprogramme called Production of Traditional and 
New Materials, which includes "d evelopment of timber industry enterprises" amounted to 
RUB 2.5 billion at the federal level and RUB  86 million at the state level in 2017 -18, with part of this 
going to the timber industry.72 
4.46.   Despite efforts to improve forest management and the national au tomated information system 
for timber (transactions), which is already in place73, challenges remain including with the legal 
control of wood and illegal logging. Estimates of the share of illegal logging in total timber harvesting 
vary greatly, but analysis approximates it around 20%, with rates much higher in the Far East 
region.74 A UN research report estimates that illegal logging is primarily the result of misuse of 
permits, often complex networks of intermediary companies, and over -harvesting, w ith bribery also 
playing a role.75 The Government aims to address these issues and over the reporting period it 
lowered the criminal liability threshold for illegal trafficking of forest resources to be considered a 
crime under Article  226.1 of the Penal C ode. As of June 2021, the area of Forest Stewardship Council 
(FSC) -certified forests in the Russian  Federation has grown to 60.7 million hectares, more than a 
 
66 Government Resolution No.  318 of 15 April 2014 on the Approval of the State Programme on 
Development of Forestry.  
67 Government Resolution No.  328 of 15 April 2014 on the Approval of the State Programme on 
Development of Industry and Increasing Its Compet itiveness.  
68 See State Programme on Industry Development and Increasing Its Competitiveness.  
69 According to Government Resolution No.  754 of 30 August 2013 on the Approval of the Rates of 
Export Customs Duties for Goods Exported from the Russian  Federatio n outside the States Parties to 
Agreements on the Customs Union, and on Recognizing Certain Acts of the Government of the 
Russian  Federation as Invalid, export duties are currently applied to about 79 tariff lines (or subsets thereof).  
70 For an overview of  the economic impact of export restrictions, see for example OECD (2010), The 
Economic Impact of Export Restrictions on Raw Materials ; and WTO Information Note of 23 April 2020 "Export 
Prohibitions and Restrictions".  
71 Government Resolution No.  318 of 15 April 2014 (as of June 2021).  
72 WTO document G/SCM/N/343/RUS, 14 January 2020.  
73 See Forest Code, Article  50.6. 
74 Gan, J. et al. (2016), "Quantifying Illegal Logging and Related Timber Trade" in Kleinschmit, D., 
Mansourian, S., Wildburger, C. & A. Purret ( eds), Illegal Logging and Related Timber Trade – Dimensions, 
Drivers, Impacts and Responses,  A Global Scientific Rapid Response Assessment Report.  
75 UN Environment (2018), Russian  Federation – Country Overview to Aid Implementation of the EU 
Timber Regulat ion.  WT/TPR/S/416  • Russian Federation  
- 109 - 
quarter of forests certified globally under the FSC scheme, with more than 1,000 companies 
certified.76 According to the authorities, these include the largest 10 companies.  
4.47.   No updated information regarding the potential development of a new economic model of 
intensive forest use and reproduction mentioned in the last Secretariat report was available.  
4.1.6   Fisheries  
4.48.   While the Russian  Federation is one of the world's major fish producers, the shares of the 
fisheries sector in GDP (0.3%) and total employment (0.2%) remain limited. In 2018, the 
Russian  Federation was the fourth -largest producer of marine fish and the 10th-largest producer of 
inland fish. Aquaculture accounted for 3.8% of the total catch.77 Production of aquatic algae has also 
increased over the reporting period but remains low compared to those of major producers.  
4.49.   The sector is regulated overal l by Federal Law No.  166-FZ of 20 December 2004 on Fishing 
and Conservation of Aquatic Biological Resources (as amended) and Federal Law No.  148–FZ of 
2 July 2013 on Aquaculture (Fish Farming) and on Amendments to Certain Legislative Acts of the 
Russian  Federation (as amended).  
4.50.   Catch quotas are allocated by the Federal Agency for Fishery under a total allowable catch 
(TAC) system. Based on a TAC by species and fishing zone (or basin) set by the Agency, quotas are 
allocated to the activities of commercial fi shing, coastal fishing, fishing for research and control 
purposes, fishing for cultural and educational purposes, fishing for aquaculture (fish farming), and 
recreational fishing, as well as fishing in order to ensure the traditional way of life and the 
implementation of traditional economic activities of the indigenous peoples of the North, Siberia, 
and the Far East of the Russian  Federation. Companies bid in auctions to sign contracts with the 
authorities for the right to exploit aquatic biological resour ces commercially.78 In addition, according 
to Federal Law 166 -FZ, firms can also apply for rights to a share of the TAC under fishing -related 
"investment projects".79 Contracts between economic operators and the Agency guarantee a certain 
percentage of the established TAC. Based on these contracts, the Agency then issues fishing 
permits.80 Fishing rules are also in place by fishing basin and are revised from time to ti me, according 
to fisheries management objectives.  
4.51.   Over the reporting period, catch (landings) of fish and crustaceans increased overall, 
especially in the Pacific Ocean. In particular, the catch of diadromous fish and crustaceans increased, 
while the catch  of cod, hake, and haddock declined, with others remaining broadly unchanged 
(Table  4.8). Russian  fishing vessels engage in fishing activities inside and outside their exclusive 
economic zone in accordance with bilateral and multilateral access agreements.  
Table 4.8 Fish landings in the Russian  Federation, 2014 -19 
('000 tonnes)   
2014  2015  2016  2017  2018  2019  
Total  4,429.7  4,618.2  4,947.5  5,060.4  5,323.5  5,231.4  
Inward waters  393.2  423.1  446.8  433.4  440.6  438.2  
Carp, barbel and other cyprinids  203.7  186.1  218.3  226.8  254.2  239.8  
Salmon, trout, smelt  126.0  178.1  149.0  118.8  104.8  121.2  
Marine areas  4,036.5  4,195.1  4,500.7  4,627.0  4,882.9  4,793.2  
Atlantic Ocean and adjacent 
seas 1,263.8  1,404.9  1,410.3  1,489.0  1,386.4  1,317.8  
Marine fishes  1,221.2  1,358.2  1,356.5  1,434.0  1,317.7  1,217.3  
Cod, hake, haddock  684.0  678.9  706.0  712.9  621.5  601.7  
Flounder, halibut, sole  25.0  29.3  27.4  28.1  29.8  31.6  
Herrings, sardines, anchovies  187.3  232.6  237.6  261.3  229.3  246.1  
 
76 FSC, webpage for the Russian  Federation. Viewed at: https://ru.fsc.org/ru -ru.  
77 FAO (2020), The State of World Fisheries and Aquaculture 2020: Sustainability in Action . Viewed at: 
https://doi.org/10.4060/ca9229en . 
78 These contracts usually have a duration of 15 years.  
79 Such investment projects can be implemented by entities registered in the Russian  Federation that 
invest in Russian -built ships and/or processing infrastructure located in the Russian  Federation (as introduced 
to Federal Law No.  166-FZ by Federal Law No.  349-FZ of 3  July 2016). Since 2019, a similar mechanism has 
been in place for the catching of crab.  
80 For additional i nformation, see Federal Law 166 -FZ, Chapter 4.  WT/TPR/S/416  • Russian Federation  
- 110 - 
 
2014  2015  2016  2017  2018  2019  
Crustaceans  10.9  16.5  18.9  21.7  31.7 48.2  
Diadromous fishes  23.5 19.8 23.6 22.0 26.2 38.2 
Salmon, trout, smelt  19.7 12.2 14.2 14.5 21.2 33.7 
Pacific Ocean  2,772.1  2,789.3  3,089.6  3,137.6  3,496.1  3,475.3  
Crustaceans  61.0  63.7  71.7  87.4  93.3  88.3  
Crabs, sea -spiders  32.1  30.7  35.1  43.2  47.1  43.2  
King crabs, squat -lobsters  17.5  19.3  22.1  26.0  29.7  29.1  
Diadromous fishes  282.4  258.2  370.7  318.3  650.4  468.2  
Salmon, trout, smelt  282.4  258.2  370.7  318.3  650.4  468.2  
Marine fishes  2,278.9  2,373.4  2,505.7  2,595.7  2,595.1  2,745.2  
Cod, hake, haddock  1,665.1  1,781.9  1,898.8  1,919.7  1,884.7  1,970.2  
Herrings, sardines, anchovies  364.1  386.2  406.7  433.5  432.2  510.4  
Molluscs  129.0  72.4  112.1  109.6  128.0  133.7  
Squid, cuttlefish, octopuses  111.1  53.9  87.4  83.4  102.4  98.2  
Source:  FAOSTAT , Fisheries and Aquaculture. Fisheries statistics and information viewed at: 
http://www.fao.org/fishery/ . 
4.52.   Domestically incorporated firms with foreign ownership can operate in the sector only if 
foreign ownership  of the company has been established in line with requirements outlined in Federal 
Law No.  57-FZ of 29 April 2008 on the Procedure for Making Foreign Investments in Business Entities  
of Strategic Importance for Ensuring the National Defence and State Secur ity (as amended). As a 
result of amendments to Federal Law s No. 57-FZ and No.  166-FZ, a company operating in the 
fisheries sector is considered foreign owned when foreigners or "or a group of persons that includes 
a foreign investor" own more than 25% of t he company, requiring prior approval for such control of 
the company, similar to the rules applied to investors in certain mining activities.81 
4.53.   Since 2014, the Russian  Federation has been a net fish exporter, as exports grew continuously 
while imports decl ined and then stagnated from 2014 when the Russian  Federation imposed a ban 
on certain food imports from various countries, including fish as a response to economic restrictions 
imposed by certain Members (Chart  4.3). The recent increase in the export of c rustaceans was 
primarily driven by increased exports of crabs.  
 
81 These amendments were introduced by Federal Law 339 -FZ of 2 July 2021 on Amendments to the 
Federal Law on Fisheries and the Conservation of Aquatic Biological Resources and the Federal Law on the 
Procedure f or Making Foreign Investments in Business Entities of Strategic Importance for Ensuring the 
National Defen ce and State Security.  WT/TPR/S/416  • Russian Federation  
- 111 - 
Chart 4.3 Fish and fishery trade, 2009 -19 
(USD million)  
 
Note:  Fish and fishery products: HS 03, HS 0508, HS 0511191, HS 150410, HS 150420, HS 1603 -05, and 
HS 230120.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
4.54.   The Strategy for Development of Agriculture and Fisheries Through 2030, approved in 
April 2020 and the Strategy for the Development of the Fisheries Ind ustry until 2030, approved in 
November 2019, provide the overall framework for government action in the fisheries sector. 
Support for the fisheries sector is concentrated on supporting access to finance (subsidies for loan 
interests) for investment into fi shing vessels, processing infrastructure, storage, and the 
development of aquaculture (primarily via interest payments for investment loans), as well as 
insurance (for aquaculture). Support to the sector is outlined in the State Programme on the 
Developmen t of the Fisheries Industry82 (adopted in 2014), but some support is also provided under 
the State Programme on Development of Shipbuilding and Techniques for Offshore Field 
Development.83 Over the period 2017 -18, the State Programmes provided support of 
RUB 312 million and RUB  4.5 billion, respectively, complemented with support from sub -federal 
programmes of RUB  4.42 billion.84 In addition, the State Programme on the Development of 
Agriculture also supported aquaculture development under its subprogramme Development of 
Breeding, Processing and Marketing of Livestock Products for the purchase of fish stocking material, 
feed, veterinary drugs, and the development of aquaculture infrastructure facilities until 2020 when 
this support ended, accord ing to the authorities. No information regarding the structure and amount 
of subsidies to the fisheries sector was available yet for the period 2019 -20. 
4.55.   Overall, the fisheries sector remains protected behind relatively high tariff barriers that are 
on aver age 7.3% with only 2.6% of tariff lines duty free. The Russian  Federation also applies export 
tariffs for two tariff lines covering tuna fish of 5%.85  
4.56.   According to the authorities, the Russian  Federation aims to combat illegal, unreported, and 
unregulated  (IUU) fishing in line with the International Plan of Action to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing. The Russian  Federation is a party to the UN Fish Stocks 
Agreement and the Agreement on Port State Measures to Prevent,  Deter and Eliminate Illegal, 
 
82 Government Resolution No.  314 of 15 April 2014 on the Approval of the State Programme on 
Development of the Fishery Complex (as amended).  
83 Government Resolution No.  304 of 15 April 2014 on the Approval of the State Programme on 
Development of Shipbuilding and Equipment for the Development of Shelf Deposits (as amended).  
84 WTO document G/SCM/N/343/RUS, 14 January 2020. The prog ramme on shipbuilding provides 
broader support but explicitly includes fishing.  
85 These are 0302 35 190 0 and ex 0302 99 000 9. Tariff information is based on HS 2012 
nomenclature.  
-4,000-3,000-2,000-1,00001,0002,0003,0004,0005,0006,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Fish (fresh, chilled or frozen)
Crustanceans, molluscs
Fish and fishery products
Other
Trade balanceChart 4.[RUS]  Russia's fish and fishery trade
(USD million)
Exports
Imports
Source: WTO calculations, based on UNSD Comtrade.Fish and fishery products: HS 03, HS 0508, HS 0511191, HS 150410, HS 150420, HS 1603 -05, and HS 230120. Note:WT/TPR/S/416  • Russian Federation  
- 112 - 
Unreported and Unregulated Fishing (ratified by the Russian  Federation in December 2020), but not 
to the Agreement to Promote Compliance with International Conservation and Management 
Measures by Fishing Vessels on the High Se as. According to the authorities, the Russian  Federation 
also concluded bilateral agreements to combat IUU fishing with the Republic of Korea, China, Japan, 
the United  States, the Democratic People's Republic of Korea, and a number of other countries, and 
fishing vessels registered in the Russian  Federation carry an International Maritime Organization 
(IMO) identification number.  
4.2  Mining and Energy  
4.2.1   Minerals  
4.57.   In recent years, minerals typically have made up between 60% and 70% of total merchandise 
exports from  the Russian  Federation, which has one of the world's largest mineral resource bases. 
In addition to hydrocarbons86, the country is a major producer of several non -energy producing 
minerals:  
• Gold. The Russian  Federation holds the world's third -largest gold  reserves and is the world's 
third-largest gold producer. There are more than 30 gold mining companies, 5 of which 
account for half of the total gold production. The leading company is Polyus Gold, which is 
among the top five gold producers globally and ma kes up 25% of the Russian  Federation's 
gold production, followed by Polymetal, Canadian -owned Kinross, UGC Group 
(Uzhuralzoloto), and Petrapavlosk.87 The principal export markets for gold are the 
United  Kingdom (with a share of more than 90% in January  2021), Kazakhstan, and 
Switzerland. The Russian  Federation's gold exports increased several times in volume and 
value in 2019 and 2020.88 In April 2020, rules on licensing of exports of gold were adopted 
that allowed gold mining and refinery companies along w ith credit institutions to obtain 
general licences for the export of refined gold from the Ministry of Industry and Trade 
(MIT).89 
• Diamonds. The Russian  Federation has the world's largest reserves of diamonds and ranks 
first in terms of global production. The country's leading diamond producer, Alrosa, is 
controlled by the State and accounts for nearly 90% of domestic production and 2 8% of 
global production.90 The main export destinations are Belgium, the United Arab Emirates, 
and India.91 
• Iron ore. The Russian  Federation has a significant raw material base of iron ores, second 
only to Brazil in scale. The country is among the world's five largest producers of iron ore 
products (concentrates, pellets, sinter, and direct reduction iron products). The leading iron 
ore companies are Metalloinvest (with a share in production of 42%), NMLK (Novolipisk), 
Severstal, Evraz, and MMK (Magnitogork  Iron & Steel Works). Iron exports fell both in 
volume and value terms from 2011 to 2016, followed by a substantial increase since 2016. 
 
86 Energy producing minerals, notably oil and gas, account for more than 70%  of the mineral extraction 
sector, and are discussed in Section 4.2.2.  
87 EMIS, Russia Mining Sector 2019/2020 , pp. 18, 31, and 76 -77. J. Harder, "Russia's Mining Industry 
on an Upswing", AT Mineral Processing , 2020, Vol. 3., p. 6.  
88 See, for example, SeaNews, "Russia's Gold Export Up Several Times", 22 April 2020. Viewed at: 
hhttps://seanews.ru/en/2020/04/22/russia -s-gold-export -up-several -
times/ttps://seanews.ru/en/2020/04/22/russia -s-gold-export -up-several -times/ . It has been reported that in 
April and May 2020 export revenu e from gold exceeded export revenue from gas for the first time. E. Teslova, 
"Russia: Income from Gold Export Exceed Gas Sales Profit", 14 July 2020. Viewed at: 
https://www.aa.com.tr/en/europe/russia -income -from-gold-export -exceed -gas-sales-profit/1910322 . In the 
first quarter of 2021, gold exports increased by 72%.  
89 S&P Global Platts, "Russia to Liberalize Gold Exports", 21  April 2020. Viewed at:  
https://www.spglobal.com/platts/en/market -insights/latest -news/metals/042120 -russia -to-liberalize -gold-
exports . 
90 Alrosa, Annual  Report 2020 , p. 12.  
91 EMIS, Russia Mining Sector 2019/2020 , pp. 30, 44 -47, and 79 -80. J. Harder, "Russia's Mining 
Industry on an Upswing", AT Mineral Processing , 2020, Vol. 3, pp. 6 -7. WT/TPR/S/416  • Russian Federation  
- 113 - 
The major export destinations (for the period 2016 -June 2021) included Kazakhstan; 
Armenia; Belarus; Czech  Republic; an d Hong  Kong, China.92 
 
• Nickel. The Russian  Federation holds the world's third -largest nickel reserves and is the 
world's fourth -largest nickel producer. The country's leading producer is Norilsk Nickel, with 
a domestic market share of approximately 70% and  a share of global production of nearly 
14%. The company's nickel output declined in 2016 -17, due to the decommissioning of one 
of its old plants, but the company has increased its nickel production since 2017 and is 
planning to continue to expand capacity  to meet the growing demand for electric vehicles. 
The major markets (for the period 2016 -June 2021) were Switzerland, Finland, China, 
Belarus, and the Netherlands.93 
• Platinum and palladium. The Russian  Federation is in second place in the world in terms of 
reserves and production of the total amount of platinoids, supplying a quarter of world 
production. Norilsk Nickel accounts for 10.7% of global production of platinum and is the 
third-largest platinum producing company in the world. It is the worl d's largest producer of 
palladium with a global share in production of 40%. The major markets for platinum include 
the United  States, the United Kingdom, Japan, Germany, and Belarus, and for palladium, 
the United  States, the United Kingdom, Germany, Japan,  and Switzerland.94 
 
• Copper. The Russian  Federation ranks 10th among the world's copper producing countries. 
Norilsk Nickel has a share of 40% in Russian copper production. Two other copper producing 
companies are Ural Mining and Metallurgical Company, wit h a share in production of 44%, 
and Russian Copper Company with a share of 16%. Major export markets (for the period 
2016-June 2021) were the Netherlands, China, Germany, Greece, and Switzerland.  
4.58.   Many of the non -energy mineral companies are privately owned , but the industry is 
characterized by a high degree of concentration.95 
4.2.2   Energy  
4.2.2.1   General  
4.59.   The Russian  Federation is a key player in global energy markets. It accounts for 10% of world 
fuel production and 5% of world fuel consumption, and  exports more than ha lf of its primary energy 
production of 1,470 million tonnes in oil equivalent, which makes it "the world's absolute leader in 
energy exports".96 The oil and gas industries generate more than 60% of the Russian  Federation's 
exports of goods97 and 40% of its  budget revenues98, and it has been observed, in this regard, that 
the Russian  Federation remains "structurally highly dependent on hydrocarbons".99 The 
 
92 Harder, "Russia's Mining Industry on an Upswing", AT Mineral Process ing, 2020, Vol. 3, p. 4; EMIS, 
Russia Mining Sector 2019/2020, pp. 18 -19, 28, 39 -41, and 64 -65; and information provided by the 
authorities.  
93 EMIS, Russia Mining Sector 2019/2020 , pp. 20 -29, 36 -38, and 67 -69; J. Harder, "Russia's Mining 
Industry on an Up swing", AT Mineral Processing , 2020, Vol. 3, p. 5; and information provided by the 
authorities.  
94 EMIS, Russia Mining Sector 2019/2020, pp. 35 -37; J. Harder, "Russia's Mining Industry on an 
Upswing", AT Mineral Processing , 2020, Vol. 3, p. 5; and informat ion provided by the authorities.  
95 The list of natural monopoly activities approved by Federal Law No.  147-FZ of 17 August 1995 on 
Natural Monopolies does not include non -energy minerals. Thus, there are no economic entities with the status 
of natural mono polies in the non -energy mining sector.  
96 The Energy Research Institute of the Russian Academy of Sciences and SKOLVOKO Energy Centre, 
Moscow School of Management, Global and Russian Energy Outlook 2019 , p. 132.  
97 The share of mineral fuels in exports declined to 62.1% in 2019, compared to 70.6% in 2013. World 
Bank, Russia Integrates: Deepening the Economy's Integration in the Global Economy , p. 43.  
98 Ministry of Finance, Annual Report on the Execution of the Fede ral Budget (starting from 1 January 
2006).  Viewed at: https://minfin.gov.ru/en/statistics/fedbud/?id_65=1 19255 -
annual_report_on_execution_of_the_federal_budget_starting_from_january_1_2006 . While the proportion of 
energy in budget revenue is much lower than during the period 2011 -2014 (50%), it is still much higher than 
during the early 2000s, when energy rev enues represented less than 10% of the federal budget revenue.   
99 World Bank, Russia Integrates: Deepening the Economy's Integration in the Global Economy , p. 43.  WT/TPR/S/416  • Russian Federation  
- 114 - 
Russian  Federation's economy is characterized by very high energy intensity, far above the world 
averag e.100 
4.60.   In the period since the mid -2010s, the Russian  Federation has faced important changes in 
international energy markets, because of substantially lower oil prices and economic measures 
applied by other countries in a context of geopolitical tensions. Sustain ing energy exports in these 
circumstances has been a major policy objective. Key elements in the Russian  Federation's response 
to this new environment have been the devaluation of the ruble, which has reduced the economy's 
vulnerability to oil price fluctu ations and resulted in substantial increases in the volumes of oil and 
gas exports in 20 15-19, and participation, since 2016, in international coordination of limitations on 
oil production in the context of the OPEC+.  
4.61.   The COVID -19 pandemic's impact on glob al energy markets resulted in substantial declines 
in production and exports of oil and natural gas.  
4.62.   The geographic structure of Russian energy exports has been changing, with Asia becoming 
relatively more important.  
4.63.   The role of the State in the energy sec tor remains very important, notwithstanding that there 
also have been several initiatives aimed at enhancing the role of market forces and competition.  
4.64.   The review period witnessed several notable regulatory changes, for example with respect to 
the phase -out of export duties and related changes in other energy taxes, and important 
developments regarding general energy policy, including the adoption of a comprehensive energy 
strategy for the period until 2035 aimed at transforming the energy sector to maximiz e its 
contribution to economic development.  
4.2.2.2   Oil 
4.65.   The Russian  Federation is the world's third -largest crude oil producer, based on data for the 
period 2016 -20.101 Its proven crude oil reserves stood at 14.8 billion metric tonnes or 107.8 billion 
barrels in 2020, accounting for 6.2% of the world's total.102 Crude oil production during the review 
period was slightly higher than in the period covered by the previous Re view and reached a record 
high of 560.3 million tonnes in 2019.103 In mb/d, production increased from an average of 10.6 in 
2015 to 11.2 in 2019. The fall in global demand due to the COVID -19 pandemic and production cuts 
agreed by the OPEC+ countries104 resulted in a very substantial decline in crude oil production in 
2020 (Table 4. 9). It has been reported that this was the first decline in crude oil production since 
2008 and that the level of production in 2020 was the lowest since 2011.105 While crude oil 
production is expected to recover in the short term, there is some uncertainty as to whether it will 
be possible to maintain the high pre -crisis level of production in the long term.106 The authorities 
note that by 2035 production capacity of oil with gas con densate will reach 523 -551 million tonnes, 
according to Ministry of Energy data.  
 
100 The Energy Research Institute of the Russian Academy of Sciences and SKOLVOKO Energy Centr e, 
Moscow School of Management, Global and Russian Energy Outlook 2019 , p. 137.   
101 BP, Statistical Review of World Energy 2021 , p. 18.  
102 BP, Statistical Review of World Energy 2021 , p. 16.  
103 A recent IMF report explains that because of relatively low opera ting costs, the stabilizing effects of 
the flexible exchange rate, the fiscal rule, and the progressive tax regime, crude oil production in the 
Russian  Federation has not been very sensitive to volatility in international oil prices. IMF (2021), 
Russian  Federation: Staff Report for the 2020 Article  IV Consultation , IMF Country Report No.  21/36, 
pp. 36-37. 
104 The Russian  Federation joined the Vienna Agreement of the Organization of the Petroleum Exporting 
Countries (OPEC) on the adjustment of oil production o n 30 November 2016 by signing the OPEC/non -OPEC 
Declaration of Cooperation in December 2016. As it is stipulated in the Adjustment, from 1 August 2020, in 
accordance with the terms of the oil production cut agreement between the OPEC member States and the 
non-OPEC member States, the Russian  Federation has undertaken obligations to reduce oil production in the 
amount of 2 million barrels per day.  
105 Reuters , "Russian Annual Output Falls for the First Time since 2008 on OPEC+ Deal, Pandemic", 
2 January 2021. Viewed at: https://www.reuters.com/article/oil -russia -output/russian -annual -oil-output -falls-
for-the-first-time-since-2008-on-opec-deal-pandemic -idUSKBN29704E .  
106 As discussed in, for example, J. Henderson, "The Future of Russian Oil Production in the Short, 
Medium and Long Term", The Oxford Institute for Energy Studies , September 2019 , p. 3.  WT/TPR/S/416  • Russian Federation  
- 115 - 
Table 4.9 Crude oil: production and exports, 2013 -20 
 
2013  2014  2015  2016  2017  2018  2019  2020  
Production (million tonnes)  523.2  526.7  533.6  547.3  546.7  555.8  560.3  512.8  
Production (mb/d)  10.5 10.5 10.6 10.9 10.9 11.1 11.2 10.2 
Exports (million tonnes)  236.6  223.4  244.5  254.7  252.6  260.6  267.5  238.6  
Exports (billion USD)  173.7  153.9  89.6 73.7 93.3 129.2  121.4  72.3 
.. Not available.  
Source : Ministry of Energy, Statistics. Viewed at: https://minenergo.gov.ru/en/activity/statistic ; Federal 
Customs Service, Statistics. Viewed at: https://customs.gov.ru/statistic/eksport -rossii-vazhnejshix -
tovarov ; Production in mb/d: BP, Statistical Review of World Energy 2021 , p. 20. Viewed at: 
https://www.bp.com/content/dam/bp/business -sites/en/global/corporate/pdfs/energy -
economics/statistical -review/bp -stats-review -2021-full-report.pdf . 
4.66.   As at 1  January  2021, 285 entities were licensed to use subsoil rights to produce crude oil in 
the Russian  Federation, including 98 entities that belong to 11 vertically integrated companies and 
which accounted for more than 84% of crude oil production.107 The major oil producing companies 
are Rosneft, Lukoil, Surgutneftegas, Gazprom Neft, Tatneft, Slavneft, Bashneft, Novatek, and 
Russneft. According to some sources, the share of crude oil production accounted for by minor oil 
companies inc reased in recent years.108 Apart from Lukoil, Surgutneftega s, Russneft, and Novatek, 
the major integrated oil companies are controlled by the State.109 According to several studies, the 
level of state ownership in the oil sector exceeds 50% of production and has increased since the 
early 2010s.110 
4.67.   Exports of crude oil increased significantly in volume terms from 2015 to 2019 and in value 
terms from 2015 t o 2018 ( Table 4. 9). There was a very substantial decline in both the volume and  
the value of crude oil exports from 2019 to 2020. The Russian  Federation was the world's second -
largest crude oil exporter in 2018 -19 and the third -largest crude oil exporter i n 2020.111 According 
to the authorities, the share of exported oil in 2019 amounted to 46.2% in the structure of Russian 
supplies of fuel and energy complex products.  
4.68.   The main destinations in 2019 for crude oil were China, the Netherlands, Germany, the 
Republic of Korea, Belarus, Italy, Poland, Finland, Turkey, Japan, the United  States, and Slovakia.112 
The sharp increase in the past two decades in China's share of exports of goods from the 
Russian  Federation is largely attributable to crude oil, which consti tutes 70% of Chinese imports 
from the Russian  Federation.113 More generally, it is expected that Russian crude oil exports to 
Europe will decline in the long run, while exports to the Asia Pacific Region will increase.114 
4.69.   In 2019, there were 76 specialized o il refineries processing oil and gas condensate, and the 
volume of primary processing of crude oil amounted to 285.1 million tonnes.115 Oil refining depth 
 
107 In January 20 16, 299 licensed enterprises were active in the extraction of oil and gas condensate. 
WTO document WT/TPR/S/345/Rev.1, 6 December 2016, para.  4.83. There has been a gradual decrease since 
2012 in the number of licence -based operations. Deloitte, Overview o f the Russian Oilfield Services Market – 
2019, p. 9. 
108 See e.g. Deloitte, Overview of the Russian Oilfield Services Market – 2019, p. 10.  
109 In October 2016, the Government sold its controlling state of 50% in Bashneft to Rosneft, and in 
December it sold a  19.5% stake in Rosneft to Glencore and the Qatar Investment Authority.  
110 One study observes that "[f]ollowing the return of Bashneft to state -ownership in 2014, the share of 
companies with the state -majority ownership in Russian oil production reached ove r 50%, compared to 33% in 
2012". T. Mitrova, "Russia's Energy Strategy", Atlantic Council, Eurasia Center, July 2019, p. 10 . The IMF 
reports that the share of the State in oil and gas extraction increased between 2012 and 2016. IMF, 
Russian  Federation: Sel ected Issues , IMF Country Report No.  18/276, pp. 8, 15.  
111 BP, Statistical Review of World Energy 2021 , p. 32.  
112 Information provided by the authorities.  
113 World Bank, Russia's Economy Loses Momentum amidst Covid -19 Resurgence; Awaits Relief from 
Vaccine,  December 2020, pp. 15 -16. The trend towards a growing share of China in Russian exports has been 
reinforced by the COVID -19 crisis.  
114 The Energy Research Institute of the Russian Academy of Sciences and SKOLVOKO Energy Centre, 
Moscow School of Management , Global and Russian Energy Outlook 2019 , p. 149.  
115 Ministry of Energy, Refining of Oil and Gas Condensate . Viewed at: 
https://minenergo.gov.ru/node/1212 . WT/TPR/S/416  • Russian Federation  
- 116 - 
was 83.1% in 2019.116 Most refining facilities are controlled by the integrated oil companies.117 The 
Russian Federation's refining capacity increased to 6.7  mb/d in 2020 from 6.5  mb/d in 2015.118 The 
volume of exports of oil products amounted to 123.3 million tonnes in 2019 and 106.8  million tonnes 
in 2020.119 
4.2.2.3   Gas 
4.70.   The Russian  Federation has the world's larges t proven natural gas reserves, which stood at 
37.4 trillion cubic metres in 2020, accounting for 19.9% of global gas reserves.120 It is the world's 
second -largest natural gas producer, and the largest natural gas exporter.121 
4.71.   Production of natural gas increa sed substantially between 2015 and 2019 (Table  4.10). In 
2020, natural gas production  declined by 5.7%.  
Table 4.10 Natural gas production and exports, 2013 -20 
(billion cubic metres)  
 2013  2014  2015  2016  2017  2018  2019  2020  
Productiona  .. .. .. 641 691 726 679 .. 
Productionb 614.5  591.2  584.4  589.3  635.6  669.1  679.0  638.5  
Exportsb 225.2  203.2  208.8  216.7  235.2  247.3  260.1  238.1  
Pipeline exports  210.7  189.6  194.2  202.0  219.7  222.4  221.0  197.7  
LNG exports  14.5 13.6 14.6 14.6 15.4 24.9 39.1 40.4 
.. Not available.  
a Data provided by the authorities.  
b Data from BP, Statistical Review of World Energy 2021 . 
Source:  Information provided by the authorities; and BP, Statistical Review of World Energy 2021. Viewed 
at: https://www.bp.com/content/dam/bp/business -sites/en/global/corporate/pdfs/energy -
economics/statistical -review/bp -stats-review -2021-full-report.pdf . 
4.72.   As at 1  January  2021, production of natural gas and associated petroleum gas was carried 
out by 260 extracting companies, including 76 affiliates of vertically integrated holdings, 
15 subsidiaries of Gazprom, 8 entities owned by Novatek, 158 independent oil and gas companies, 
and 3 companies operating under production sharing agreements.122 State -controlled Gazprom123 
accounts for 71.1% and 67.9% of the Russian  Federation's gas reserves and gas production, 
respectively, and for 16.3% and 11.7 % of the world's gas reserves and gas production.124 The vast 
majority of its gas production is in the Ural Federal District. Gazprom owns and operates the United 
 
116 Ministry of Energy, Refining of Oil and Gas Cond ensate . Viewed at: 
https://minenergo.gov.ru/node/1212 . "Oil refining depth" is the ratio of crude oil volumes processed at 
primary refining facilities, excluding saleable heating oil, liquid fuel used in p roduction, and losses in drying and 
desalination, to total crude oil volumes processed at primary refining facilities. WTO document 
WT/TPR/S/345/Rev.1, 6 December 2016, p. 139.  
117 Rosneft operates 13 oil refineries with a total capacity of 118.4 million tonnes per year and accounts 
for more than 35% of the volume of refining in the Russian  Federation. Rosneft, Annual Report 2019 , 
pp. 86-87. 
118 BP, Statistical Review of World Energy 2021, p. 31.  
119 BP, Statistical Review of World Energy 2021 , p. 33.  
120 BP, Statistical Review of World Energy 2021 , p. 34.  
121 According to the BP data,  the Russian Federation accounted for 17% of world production of natural 
gas in 2019 and 16.6% in 2020; its share in world exports of natural gas was 26.1% in 2019 and 25.3% in 
2020. BP, Statistical Review of World Energy 2020, pp. 34, 42; BP, Statistical Review of World Energy 2021,  
pp. 36, 42. According to the authorities, the share of the Russian Federation i n world exports of natural gas in 
2019 was significantly lower (19.9%) than the figure reported by BP (26.1%). The authorities did not submit 
data on exports of natural gas in 2020.  
122 Ministry of Energy, Gas – About the Industry . Viewed at: https://minenergo.gov.ru/node/1215 . 
123 Gazprom is 38.4% state -owned, with another 11.9% owned by companies controlled by the State. 
Gazprom, Annual Report 2020 , p. 31.  
124 Based on data for 2019. Gazprom, Gazprom in Figure s Factbook 2015 -2019, p. 4. Viewed at: 
https://www.gazprom.com/f/posts/72/802627/gazprom -in-figures -2015-2019-en.pdf . In 2020, Gazprom 
produced 454.5 billion cubi c metres of natural and associated gas and 16.3 million tonnes of gas condensate. 
Gazprom, Annual Report 2020, p. 97.  WT/TPR/S/416  • Russian Federation  
- 117 - 
Gas Supply System. Gazprom's main export markets are the Netherlands, Germany, Italy, Turkey, 
and France. Gazprom accounts for nearly one third of gas consumption in Europe.125 
4.73.   A new direction in t he development of the industry was the production of natural gas in its 
liquefied state (LNG). There was a substantial expansion of LNG production during the review period, 
mainly driven by privately owned Novatek.126 According to Ministry of Energy data, p roduction of 
LNG amounted to 29.5 million tonnes in 2019, 47.5% higher than in 201 8.127 The Government 
recently adopted a long -term strategy for the development of LNG production, which envisages an 
increase in LNG production from 28 million tonnes in 2021 to approximately 140 million tonnes in 
2035.128 This is to be achieved, inter alia , through the construction of several new plants.129 
4.74.   Gas exports rose by more than a quarter between 2015 and 2019 ( Table  4.10). The increase 
was particularly pronounced regard ing LNG, exports of which rose from 14.6 billion cubic metres in 
2015 to 40.4 billion cubic metres in 2020.130 A sharp decline in gas exports occurred in 2020, but 
this masks a divergence between pipeline exports, which fell, and LNG exports, which increase d. 
4.75.   The major destinations for Russian pipeline natural gas exports in 2020 were Germany, Italy, 
Belarus, Turkey, France, Kazakhstan, and the United Kingdom. There was a significant expansion of 
capacity to export gas to both Europe and Asia, as exemplified  by the construction of the Nord 
Stream 2, Turk Stream, and Power of Siberia pipelines.131 As with oil, Asian countries are expected 
to become increasingly important as destinations for Russian gas exports.132 
4.2.2.4   Coal 
4.76.   The Russian  Federation's reserves of coal o f all categories amounted to 275.4 billion tonnes 
as of 1  January  2020.133 The raw material base of coal provides the country with the fourth place in 
the world after the United  States, Australia, and China. Coal production rose from 374.0 million 
tonnes in  2015, to 441.9  million tonnes in 2018, and to 442.7 million tonnes in 2019, and then 
declined to 402.1 million tonnes in 2020.134 
4.77.   As of 1  January  2021, there were 179 enterprises active in coal mining, including 58 pit mines 
and 121 open -surface mines, wit h a total production capacity of 508 million tonnes at the beginning 
of 2020.135 More than 76% of coal mining takes place in Siberia. In 2020, the largest coal companies 
were the Siberian Coal Energy Company, with a share in coal production of 25%, and 
Kuzbassrazresugol, with a share of 10%. The authorities indicate that the coal industry is 
represented by fully private companies operating in market conditions. Along with the continuation 
of the development of traditional coal mining centres, new deposits ar e being developed in Eastern 
Siberia and the Far East, as well as in the Arctic zone of the Russian  Federation.  
4.78.   The Russian  Federation is third in the ranking of the world's largest coal exporters, after 
Australia and Indonesia, with a share of 16% in worl d coal exports. The major export markets for 
Russian coal are the Republic of Korea, Japan, China, Turkey, the United Kingdom, the Netherlands, 
Germany, Ukraine, and Poland.136 In volume terms, coal exports amounted to 156 million tonnes in 
2015, 171 million tonnes in 2016, 190 million tonnes in 2017, 210 million tonnes in 2018, 221 million 
tonnes in 2019, and 211 million tonnes in 2020.137 There was a sharp increase in the value  of coal 
exports from 2016 to 2018 as a result of higher prices in international markets. Since 2014 -15, the 
 
125 Gazprom, Annual Report 2020,  pp. 122 -123. 
126 Novatek owns a share of 50.1% in the Yamal LNG project.  
127 Ministry of Energy, Production an d Supply of Liquefied Natural Gas (LNG) . Viewed at: 
https://minenergo.gov.ru/node/4853 . 
128 Decree No.  640 of 16 March 2021.  
129 At present, most LNG production is accounted for by the Yamal and Sakhalin -2 projects.  
130 The Russian  Federation was the world's fourth -largest exporter of LNG in 2020. BP, Statistical Review 
of World Energy 2021 , p. 44.  
131 In December 2019, Gazprom started delivering natural gas to China via the Power of Siberia pipeline.  
132 The Energy Research Institute of the Russian Academy of Sciences and SKOLVOKO Energy Centre, 
Moscow School of Management, Global and Russian Energy Outl ook 2019 , pp. 153 -154.  
133 Information provided by the authorities.  
134 Information provided by the authorities.  
135 Ministry of Energy, Coal. Viewed at: https://minenergo.gov.ru/node/433 . 
136 EMIS, Russia Mining Sector 2019/2020 , pp. 61 -62. 
137 Information provided by the authorities.  WT/TPR/S/416  • Russian Federation  
- 118 - 
Russian  Federation has diversified its coal exports and increased shipments to Asia. The share of 
Europe in the Russian  Federation's coal exports d eclined from 72% in 2010 to 53% in 2018 and to 
41% in 2020, while the share of Asia increased from 27% in 2010 to 47% in 2018 and to 59% to 
2020.138 The Russian  Federation is investing heavily in improvements to its railway and port 
infrastructure to boost exports of coal and other products to Asian markets. It has been reported 
that the Russian  Federation aims to double its coal exports during the period until 2035.139 
4.2.2.5   Electricity  
4.79.   The Russian  Federation has the world's fourth -largest electricity system, afte r the 
United  States, China, and India. The total installed power generation capacity in the 
Russian  Federation was 251,097 MW as at 1  January  2021. Production of electricity within the 
Unified Energy System (UES) amounted to 1090.6 billion kWh in 2019 and 1063.7 billion kWh in 
2020.140 Gas accounts for 46% of electricity generation, followed by coal (18%), hydro (18%), and 
nuclear power (17%). The role of non -hydro renewable energy in electricity production is very small.  
4.80.   Most of the country's generating assets are concentrated in thermal generating companies of 
the wholesale electricity market (PJSC Gazprom Group), the federal hydro -generating company of 
the wholesale market (PJSC Rushydro), territorial generating companies of the GKSUEK, TGK -16 
groups, PJSC Inter RAO UES, UC RUSAL, and Rosenergoatom.  
4.81.   The subjects of natural monopolies in the electric power industry are PJSC FGC UES; PJSC 
Rosseti and its branches; other territorial grid organizations providing electricity transmission 
services;  and SO UES JSC and other system operators that carry out dispatch control of the UES.  
4.82.   Consumption of electricity in the Russian  Federation amounted to 1,075.2 billion kWh in 2019, 
including 1,059.4 billion kWh consumed through the UES141, and to 1,050.4  billion kWh in 2020, 
including 1,033.7 billion kWh consumed through the UES.142 
4.83.   The Russian  Federation is a net exporter of electric power. Inter Rao holds the exclusive right 
to import and export electric power. In 2020, it imported 1.374 billion kWh and exp orted 
11.701  billion kWh. It exports to Azerbaijan, Belarus, China, Finland, Georgia, Kazakhstan, 
Lithuania, and Mongolia. The largest export destinations are Lithuania (26.9%), China (26.2%), 
Finland (22.5%), and Kazakhstan (10.8%). Imports are mostly fro m Kazakhstan.143 
4.2.2.6   Institutional framework, regulatory changes, and developments in energy 
strategy and policies144 
4.2.2.6.1   Institutional framework  
4.84.   According to paragraph 2 of Article  9 of the Constitution, land and other natural resources 
may be in private, state, mu nicipal, and other forms of ownership. Article  1.2 of the Subsoil Law 
provides that the subsoil within the boundaries of the territory of the Russian  Federation, including 
underground space and minerals, energy, and other resources contained in the subsoil , is state 
property. The ownership use and disposal of subsoil are under the joint jurisdiction of the 
Russian  Federation and its constituent entities.  
4.85.   The Ministry of Natural Resources and Environment of the Russian  Federation (MinPrirody of 
Russia) carri es out the functions of developing state policy and legal regulation in the field of study, 
use, reproduction, and protection of natural resources, including subsoil. Within its competence, the 
Ministry also ensures the fulfilment of obligations arising fr om international treaties on issues related 
to its sphere of activity. The Ministry coordinates and controls the activities of its subordinates: the 
 
138 Information provided by the authorities.  
139 ResourceWorld, "Russia Eyes Big Plans for Coal Production and Exports". Viewed at:  
https://resourceworld.com/russia -eyes-big-plans -for-coal-production -and-exports/ . 
140 Information provided by the authorities. Nearly all electricity is generat ed within the UES.  
141 Ministry of Energy, Main Characteristics of the Russian Electric Power Industry . Viewed at: 
https://minenergo.gov.ru/node/532 . 
142 Information provided by the authorities.  
143 Inter Rao, Annual Report 2020 , pp. 110 -111.  
144 Many of the issues addressed in this subsection also pertain to non -energy minerals.  WT/TPR/S/416  • Russian Federation  
- 119 - 
Federal Service for Hydrometeorology and Environmental Monitoring, the Federal Service for 
Supervision of N atural Resources, the Federal Agency for Water Resources, the Federal Agency for 
Forestry, and the Federal Agency for Subsoil Use.145 
4.86.   The Ministry of Energy carries out the functions of developing and implementing state policy 
and legal regulation in the fi eld of the fuel and energy complex, including the electric power industry ; 
the oil production, oil refining, gas, coal, shale, and peat industries; trunk pipelines, oil, gas, and 
products of their processing; renewable energy sources; and the development o f hydrocarbon 
deposits on the basis of production sharing agreements; and in the petrochemical industry; as well 
as the functions of providing public services in these areas. In addition, the Ministry of Energy carries 
out the functions of developing state  policy and legal regulation in the field of energy saving and 
increasing energy efficiency on information support of measures for energy saving and increasing 
energy efficiency, accounting for energy resources used, and in the field of heat supply in term s of 
heat production in the mode of combined generation of electric and heat energy. The Ministry of 
Energy, within its competence, carries out the functions of creating, operating, and improving the 
state information system of the fuel and energy complex.146 
4.87.   The Federal Antimonopoly Service (FAS) regulates natural monopolies and is responsible for 
setting tariffs for electricity, natural gas, and pipeline transportation.147 
4.88.   The Federal Service for Environmental, Technological, and Nuclear Supervision is resp onsible 
for drafting and implementing government policy and legal regulations relating to nuclear energy. It 
also oversees the safety of hydro -engineering structures.148 
4.2.2.6.2   Regulatory changes  
4.2.2.6.2.1   Subsoil Law  
4.89.   Most of the oil and gas extraction in the Russian  Federation takes place under a tax and royalty 
system, the main legal basis of which is the licensing regime provided for in Federal Law No.  2395-1 
of 21 February  1992 on Subsoil, as amended.149 
4.90.   The Subsoil Law outlines the legal framework for the e xploration, extraction, and exploitation 
of minerals and other natural resources. It provides for the procedure for considering applications 
for obtaining the right to use subsoil, including for geological exploration to search and evaluate 
hydrocarbon dep osits in a subsoil plot of federal significance, inland sea waters, and the territorial 
sea of the Russian  Federation. The procedure is established by the Government. Prior to the entry 
into force of amendments to the Subsoil Law made in 2019, the three ma in types of subsoil licences 
were: (i)  geological (exploration) survey licences (covering prospecting and appraisal activities); 
(ii) production/mining licences; and (iii)  combined exploration and production licences (covering 
both geological (exploration)  surveys and production/mining activities). A geological survey licence 
may be granted for a maximum period of 5 years, but geological survey licences can be granted for 
7 years in the Northern and Far East regions, or 10 years for offshore fields. Product ion/mining 
licences and combined licences can be issued for the projects' life span. Geological licences are 
awarded without a tender or auction, while production and combined licences are awarded by tender 
or auction.  
 
145 Information provided by the authorities.  
146 Information provided by the auth orities.  
147 FAS, What We Do . Viewed at: http://en.fas.gov.ru/about/what -we-do/general -information.html . 
148 Rostechnadzor, Basic Activities of Federal Environmental, Industrial and  Nuclear Supervision Service . 
Viewed at: http://en.gosnadzor.gov.ru/activity/ . 
149 Apart from the licensing regime under the Subsoil Law, the geological surveying, exploration, and 
production of natural re sources can also be undertaken based on production sharing agreements concluded 
between the State and private investors pursuant to Federal Law No.  225-FZ of 30 December 1995 on 
Production Sharing Agreements. T his Federal Law was amended by several legisla tive acts: Federal Law 
No. 19-FZ of 7 January 1999; Federal Law No.  75-FZ of 18 June 2001; Federal Law No.  65-FZ of 6 June 2003; 
Federal Law No.  58-FZ of 29 June 2004; Federal Law No.  199-FZ of 29 December 2004; Federal Law No.  309 
of 30 December 2008; Fed eral Law No.  89-FZ of 19 May 2010; Federal Law No.  248-FZ of 19 July 2011; 
Federal Law No.  205-FZ of 29 June 2015; Federal Law No.  104-FZ of 5 April 2016; Federal Law No.  164-FZ of 
27 June 2018; and Federal Law No.  429-FZ of 8 December 2020. There are curr ently three production sharing 
agreements, which were concluded during the 1990s.  WT/TPR/S/416  • Russian Federation  
- 120 - 
4.91.   Article  7 of the Subsoil Law was amen ded in December 2019 to introduce special provisions 
on the allocation of subsoil plots containing hard -to-recover minerals.150 Another amendment, 
adopted in June 2020, provides that subsoil users may not only develop the main resources to which 
their licence pertains but also "associated minerals" located within the boundaries of their subsoil 
fields.151 In addition to these amend ments to the Subsoil Law, several measures relating to subsoil 
licences were adopted as part of the Government's support to businesses affected by the COVID -19 
pandemic.152 
4.2.2.6.2.2   Strategic Investment Law  
4.92.   The Strategic Investment Law153 establishes certain restrict ions on the acquisition by foreign 
investors, or a group of persons that includes a foreign investor, of control over enterprises carrying 
out activities that are strategically important for ensuring the State's defence and security, as well 
as on the acqu isition of 25% or more of the fixed production assets of such enterprises and the 
performance of several other related transactions and actions. The list of activities of strategic 
importance for the defence and security of the State includes 47 types of a ctivities, including 
exploration and/or detailed exploration and production of minerals in subsoil areas of federal 
significance.154  
4.93.   The authorities indicate that subsoil plots of federal significance include not only those that 
meet the criteria defined b y the Subsoil Law, but also other plots included in the List of Subsoil Plots 
of Federal Significance by the Federal Agency for Subsoil Use, officially published in the Rossiyskaya 
Gazeta . That is, a subsoil plot may not be included in the specified List, but if its reserves exceed, 
for example, 50 tonnes of indigenous gold, such a plot will be recognized as having federal 
significance. Acquisition by a foreign investor of a subsoil user company operating under a licence 
for the right to use a subsoil plot of federal significance is only possible on the premise of compliance 
with the conditions established by the Subsoil Law and after receiving preliminary approval from the 
Government Commission for Control over Foreign Investments in the Russian  Federation.  For a 
private foreign investor to acquire 25% of shares (stakes) in strategic companies -subsoil users, 
preliminary approval of the Government Commission for Control over Foreign Investments in the 
Russian  Federation is required. For public investors (fore ign states, international organizations, and 
organizations under their control), as well as private investors who have not previously disclosed 
their ownership structure, an agreement with the Government Commission is required to acquire 
more than 5% of sh ares (stakes) in a strategic subsoil user company, and acquisition of 25% or 
more shares (stakes) of a strategic subsoil user company is prohibited. Similar restrictions for private 
and public investors were recently introduced with respect to strategic co mpanies engaged in the 
extraction (catch) of aquatic biological resources  (Section  4.1.7) .155 Preparatory work for the final 
 
150 Federal Law No.  396-FZ of 2 December 2019 on Introduction of Amendments to the Law of the 
Russian  Federation on Subsoil in Respect of Legal Regulation of Geological Study,  Exploration and Production of 
Hard-to-Recover Natural Resources.  
151 Federal Law No.  179-FZ of 8 June 2020 on Amendments to the Subsoil Law of the Russian  Federation 
in Connection with Development of Extraction of Mineral Resources not Related to Crude Hydr ocarbons from 
Subsoil Waters, Associated Waters, and Waters Used for Own Production and Technological Needs During 
Exploration and Extraction of Crude Hydrocarbons. This amendment entered into force in September 2020.  
152 Decree No.  440 of 3 April 2020 on E xtension of Permits and Other Aspects of Permitting Activities in 
2020; and Decree No.  557 of 22 April 2020 on Amending Certain Acts of the Government of the 
Russian  Federation Regarding the Establishment of Specifics of the Implementation of Control, Supe rvisory and 
Permitting Activities in 2020.  
153 Law No.  57-FZ of 29 April 2008 on the Procedure for Making Foreign Investment s in Business Entities  
of Strategic Importance for Ensuring the National Defence and State Security, as amended and supplemented.  
154 Subsoil Plots of federal significance,  as defined in the Subsoil Law, are: (i)  subsoil plots with 
confirmed reserves of extractable crude oil in an amount of 70 million tonnes, natural gas of 50  billion cubic 
metres or more, gold of 50 tonnes or more, or co pper of 500,000 tonnes or more; (ii)  subsoil plots located 
within the internal sea waters, the territorial sea, or the continental shelf; (iii)  subsoil plots with uranium, pure 
quartz, niobium, certain rare -earth metals, and primary deposits of diamonds an d platinum group metals; and 
(iv) subsoil plots the exploitation of which requires the use of land areas that have a defence or security 
significance. An Official List of all plots that meet these criteria is regularly updated and currently contains 
about 180 oil and gas fields and more than 1,000 hard mineral fields. The list is available at: 
https://www.rosnedra.gov.ru/category/144.html . 
155 Federal Law No.  339-FZ of 2 July 2021 on Amendments to the Federal Law on Fishery and the 
Preservation of Biological Water Resources. Prior to these amendments, the Law restricted foreign acquisition 
of more than 50% of the shares in such companies.  WT/TPR/S/416  • Russian Federation  
- 121 - 
decision of the Commission is carried out by the FAS.156 As part of the preparation, the FAS asks for 
opinions on the planned transac tion of the state body in the field of state security, as well as of the 
sectoral federal executive bodies. The Commission considers the opinions of the authorities, as well 
as the significance of the transaction for the Russian economy and the presence or  absence of risks 
of threats to the security of the State in the event of the transaction in question.  
4.94.   In July 2017, the Strategic Investment Law  was amended to introduce special restrictions on 
investments by offshore companies in activities of strategic importance, including a ban on the 
acquisition of control over strategic enterprises.157 These restrictions were extended in 2018 to any 
foreign legal entity or foreign organization that does not provide information to the FAS about its 
beneficiaries, benef icial owners, and controlling persons, while the ban on investments by offshore 
companies has been lifted, provided that they submit the specified information to the FAS.158 
4.95.   A second set of amendments made at the end of July 2017 concerned both the Strategic 
Investment Law and the Law on Foreign Investments. These amendments provide for more severe 
consequences under the Strategic Investment Law for a failure by a foreign investor to notify the 
FAS of certain transactions, and introduced a provision in the Law on Foreign Investments allowing 
the Governmental Commission for the Control on Foreign Investments to require approval of a 
foreign investment transition in respect of any Russian company, including companies not engaged 
in business activities o f strategic importance.  
4.96.   The Strategic Investment Law was further amended in July 2020 to change the definition of 
control and the list of transactions subject to preliminary approval.159 
4.97.   Amendments that became effective in March 2021 removed barriers to for eign investment in 
companies that are recognized as strategic only because they have a "related" (non -main) asset in 
the form of an object of water supply or sewerage or a licence for an activity related to the use of 
pathogens of infectious diseases, the book value of which is no more than 1% of the value of all 
assets of the company.160 For public foreign investors, the ban on establishing control over such 
companies has been lifted, but acquisition of such companies requires the prior consent of the 
Gover nment Commission. For private foreign investors, a simplified approval procedure has been 
introduced, in which the transaction is approved by the FAS if the Federal Security Service, the 
Ministry of Defence, the Ministry of Construction, the Ministry of Ec onomic Development, and 
Rospotrebnadzor (Federal Service for the Oversight of Consumer Protection and Welfare) present 
conclusions on the absence of the need for the Government Commission to consider the transaction; 
otherwise, the transaction is submitted  to the Commission for approval.  
4.2.2.6.2.3   Export customs duties and taxation  
4.98.   Crude oil and petroleum products are subject to export duties under Article  3.1 of the Law on 
the Customs Tariff. The rates of export duty vary depending upon the price of crude oil.161 In 
 
156 Resolution No.  510 of 6 July 2008. According to information provided by the authorities, during the 
period from 2008 to 2020 inclusively, the FAS received 133 applications from foreign investors for preliminary 
approval of transactions in relation to stra tegic companies -subsoil users. The Government Commission 
considered 84 applications (79 were agreed, of which 8 with the imposition of obligations on the investor; and 
5 were refused). Twenty -nine applications did not require consideration by the Governmen t Commission, and 
the transactions (other actions) indicated in them could be made based on a letter from the FAS about the 
return of the application. Twenty applications were withdrawn by the applicants due to the abandonment of the 
intention to make tran sactions.  
157 Federal Law No.  155-FZ of 1 July 2017  on Amendments to Article 5  of the Federal Law on 
Privatization of State and Municipal Property and the Federal Law on the Procedure for Making Foreign 
Investments in Business Entities of Strategic Importan ce for Ensuring the National Defen ce and State Security .  
158 Federal Law No.  122-FZ of 31 May 2018.  The information to be provided pursuant to this provision is 
defined in Decree No.  1456 of 1 December 2018.  
159 Federal Law No.  255-FZ of 31 July 2020 on Amen dments to the Federal Law on the Procedure for 
Making Foreign Investments in Business Entities of Strategic Importance for Ensuring the National Defen ce and 
State Security.  
160 Federal Law No.  40-FZ of 9 March 2021 on Amendments to the Federal Law on the Pr ocedure for 
Making Foreign Investments in Business Entities of Strategic Importance for Ensuring the National Defence and 
State Security.  
161 Government Resolution No.  2197 of 21 December 2020 eliminates the possibility of establishing 
special formulas for calculating the rates of export customs duties in relation to crude oil with a viscosity in WT/TPR/S/416  • Russian Federation  
- 122 - 
accordance with bilateral intergovernmental agreements between the Russian  Federation and 
Belarus, Armenia, and the Kyrgyz  Republic, the export duty is not applied to oil and oil products 
exported to these countries within the indicative balances developed  and agreed upon annually for 
the supply of oil and oil products.162 
4.99.   In August 2018, amendments were adopted to the Russian  Federation Tax Code and the Law 
on the Customs Tariff as part of the second and final phase of the oil "tax manoeuvre" initiated in 
2015.163 As explained by the Russian  Federation in the previous Review, the aim of the tax 
manoeuvre is "to transfer the tax burden from the oil export to its extraction (due to the gradual 
reduction of the size of export customs duties rates on oil and oil products together with a 
simultaneous increase in tax rates on the mineral extraction in the extraction of oil), as well as the 
preservation of incentives for advanced oil refining".164 The first phase of the tax manoeuvre, 
launched in 2015, provided for a reduction of export customs duties on oil and oil products (by 
1.7 times in three years on oil and between 1.7 and 5 times on oil products depending on the type 
of oil products) and a simultaneous increase in the mineral extraction tax rate on oil (by 1.7 times) 
and gas condensate (by 6.5 times).165 
4.100.   The amendments adopted in August 2018, and which became effective in January 2019, 
provided for a reduction in phases of export duties on oil, gas condensate, and petroleum products 
until their elimination in 202 4, accompanied by an equivalent increase in the Mineral Resources 
Extraction Tax (MRET) for oil and gas condensate. The amendments also included provisions allowing 
for the application of a temporary, a protective increase in the amount of export duties on  crude oil 
and petroleum products , and increases in the rates of excise taxes on petroleum products.166 The 
reduction of export duties on crude oil and petroleum products was accompanied by the adoption of 
special tax deductions to oil refineries and a "rev erse excise tax" on petroleum feedstock to 
compensate them for the increased cost of feedstock.167 It has been observed that the measures 
taken to compensate refineries have made the system too complex and that, by restoring subsidies 
to refining and consumption, these measures have compromised the objective of creating a level 
playing field between domestic and export markets. However, the Russian authorities have pointed 
out in this connection that subsidies for refining and domestic consumption have  been significantly 
reduced.168 
4.101.   Related to the tax manoeuvre, a tax on the additional income from extraction of 
hydrocarbons (Additional Income Tax (AIT)) was also introduced in January 2019. Unlike the MRET, 
which is a royalty tax, based on the volume, wei ght, or value of hydrocarbons extracted169, the AIT 
is based on the profits derived from the extraction of hydrocarbons.170 Its main aim is to encourage 
promotion of fields that require a significant amount of investment. The AIT was initially applied on 
a pilot basis to four groups of areas171 but, following amendments to the Tax Code in October 2020, 
its scope of application was extended to cover nearly half of all oil production in the 
Russian  Federation.  
4.102.   Other fiscal changes made in 2019 included an adjustment to the MRET on oil and changes 
in middle distillate excise taxation.   
 
reservoir conditions of at least 10,000 millipascal seconds, as well as crude oil with special physical and 
chemical characteristics.  
162 Gazprom Neft, Annual Report 2018, pp. 318 -319. 
163 Federal Law No.  301-FZ of 3 August 2018 on Amendments to Part Two of the Tax Code of the 
Russian  Federation; and Federal Law No.  305-FZ of 3 August 2018 on Amendments to Article  3.1, Russian 
Customs Tariff Law.  
164 WTO document WT/TPR/M/345/Add.1, 19 December 2016, p. 3.  
165 WTO document WT/TPR/M/345/Add.1, 19 December 2016, p. 3.  
166 Rosneft, Annual Report 2019 , p. 147.  
167 Rosneft, Annual R eport 2019 , p. 145.  
168 IMF (2019), Russian  Federation: Staff Report for the 2019 Article  IV Consultation , IMF Country 
Report No.  19/260, pp. 11 -12; and IMF Country Report No.  21/36, p. 12.   
169 For a detailed description of the formula used to determine the M RET tax liability, see e.g. Gazprom 
Neft, Annual Report 2018 , pp. 314 -317.  
170 The rate of AIT is 50% of the tax base, which is the estimated revenue reduced by actual expenses, 
estimated export duty, estimated transport expenses, and historical losses. Ros neft, Annual Report 2019 , 
p. 146. 
171 The transition to the AIT has entailed a substantial reduction in the amount of MRET payable in 
respect of these projects.  WT/TPR/S/416  • Russian Federation  
- 123 - 
4.103.   Because of the COVID -19 pandemic, the rules on export customs duties, the AIT, and the 
MRET in relation to the oil and gas sector  were amended in October 2020 to raise more revenue for 
the federal budget. This involved the removal of the zero -export customs duty for high viscosity oil 
and the reduction of MRET benefits.172 
4.104.   Exports of natural gas are subject to a customs duty of 30%; there is no customs duty on 
exports of LNG. In relation to liquefied hydrocarbon gases, classified by the EAEU Commodity 
Nomenclature for Foreign Economic Activity 2711 12 - 2711 19 000 0, (propane, butanes, ethylene, 
propylene, butylene, butadiene, and ot hers) (hereinafter referred to as LPG), the rate of export 
customs duty is calculated depending on the average price of LPG at the border with Poland during 
the monitoring period (DAF Brest). For ethane, butane, and isobutane with a purity of 95% or more, 
classified by code 2901 10 000 1 of the EAEU Commodity Nomenclature for Foreign Economic 
Activity, the export customs duty rate has been set from 1  January to 31  December 2021, at the 
level of 80% of the duty rate on LPG, and from 1  January 2022, at the le vel of 90% of the duty rate 
for LPG. At the same time, within the framework of the "tax manoeuvre" in relation to LPG positions 
2711 12 - 2711 19 000 0 and 2901 10 000 1 of the EAEU Commodity Nomenclature for Foreign 
Economic Activity, an annual reduction in export customs duties to 0 is provided for from 2024.  
4.105.   There were modest changes with respect to the regulation of the right to export gas. 
Gazprom continues to enjoy the sole legal right to export natural gas by pipeline, but there has been 
some liberal ization regarding exports of LNG. Federal Law No. 117-FZ of 18 July 2006 on Exports of 
Gas was amended in April 2020 to extend the list of persons having the right to export LNG to 
include subsoil users holding subsoil licences issued after 1  January  2013.  
4.106.   Export duties that were applicable to certain types of coal coke and semi -coke made of coal, 
lignite, or peat, agglomerated or non -agglomerated, and retort coal were eliminated in 2016 by 
Government Decree No.  797 of 15  August  2016 (entered into force on 19 September  2016).  
4.2.2.6.2.4   Regulated prices  
4.107.   Certain segments of the energy sector are subject to price regulation at federal and sub -
federal levels (Section 3.3.4.4). Th ey include electric energy (transmission, operational dispatch 
management, connection to the U nified National Electricity network, distribution, wholesale, and 
retail), thermal power (co -generation and retail), natural gas (pipeline transportation, wholesale, 
and retail), and transportation of oil and petroleum products (main pipelines). While Pres idential 
Decree No.  221 of 28  February 1995 on Measures to Streamline the State Regulation of Prices 
(Tariffs), as amended, sets out certain basic principles of price regulation, more detailed rules exist 
with respect to the individual products and service s at issue, such as Government Decree No.  1178 
of 29  December  2011 on Pricing in the Field of Regulated Prices (Tariffs) in the Electric Power 
Industry and the Decree on Regulation of Gas Prices.  
4.108.   The list of regulated prices (tariffs) for electric energy ( capacity) is determined by the 
Principles of Pricing in the Field of Regulated Prices (Tariffs) in the Electric Power Industry, approved 
by Government Decree No.  1178 of 29  December  2011. In the system of regulated prices (tariffs) 
for electric energy, the  following main directions can be distinguished:  
• services for the transmission of electrical energy provided by territorial grid organizations 
and the organization managing the unified national (all -Russian) electrical grid;  
• services of infrastructure orga nizations (ATS JSC, SO UES JSC);  
• payment for technological connection to the unified national (all -Russian) electric grid, and 
to the electric grids of territorial grid organizations;  
• sales markups of suppliers of last resort;  
• prices (tariffs) for electric  energy (capacity) supplied to the population and equivalent 
categories of consumers; and  
 
172 The reduction of MRET  benefits also applied to certain types of hard minerals.  WT/TPR/S/416  • Russian Federation  
- 124 - 
• in terms of electricity generation:  
o supply of electricity on the wholesale market under regulated contracts;  
o supply of electric energy by producers of electric energy  (capacity) under contracts 
with suppliers of last resort (energy supplying organizations, energy sales 
organizations, and the number of buyers of electric energy (capacity) of which 
includes the population and (or) categories of consumers equated to them) ; and  
o supply of electric energy produced at generating facilities located in the territories 
of technologically isolated territorial electric power systems.  
4.109.   Measures were adopted to make energy markets more competitive. The Action Plan 
approved in 2018 for  the promotion of competition in certain sectors of the economy (Section 3 .3.4) 
includes several measures relating to gas supply, oil and oil products, the coal industry, and the 
electricity industry. It provides for: (i)  a transition to market pricing of natural gas through, 
inter alia, an increase in the volume of natural gas sales at organized auctions and number of gas 
sellers at organized auctions; (ii)  promotion of market pricing mechanisms for oil and oil products173; 
(iii) elimination of tariff discrimination; and (iv)  transparency and durability of tariff regulation.174 
4.2.2.6.2.5   Import substitution and technological development  
4.110.   Since 2014, the Russian  Federation has been applying measures to develop domestic 
technologies in the  energy sector.175 Several legal acts were adopted in 2019 with a view to 
developing advanced domestic technologies in the fuel and energy complex, including four action 
plans: (i)  for the implementation of measures to develop oil fields and increase oil pr oduction in the 
Russian  Federation; (ii)  for the development of the petrochemical complex during the period up to 
2025; (iii)  for compulsory purchases in the electric power industry; and (iv)  for the localization of 
critical equipment for medium and large -scale production of LNG and the construction of LNG 
carriers. The Competence Centre for Technological Development of the Fuel and Energy Complex 
was created in 2019 to support innovation and import substitution in the fuel and energy complex. 
Several innov ation projects in the energy sector have been undertaken as part of the National 
Technology Initiative.176 
4.2.2.6.2.6   Incentives177 
4.111.   Pursuant to the Decree signed in March 2020 on the Basics of the State Policy of the 
Russian  Federation in the Arctic for the Period unti l 2035, legislation was adopted providing for a 
wide range of measures to support investment in the Arctic, including reduced MRET rates.178 
 
173 To be achieved through measures such as the development of organized trading in oil for export; the 
development of a futures exchange market for oil products; the development of organized small -scale 
wholesale trading and the formation of market price indicators for the small -scale wholesale market; and 
deregulation of prices for the transportation of oil products through main oil product pipelines, providing for the 
maintenance of volume of organ ized trading in petroleum products at the level of, and an increase in the 
volume of, export transactions.  
174 Ministry of Energy, Development of Competition in the Fuel and Energy Sector . Viewed at: 
https: //minenergo.gov.ru/node/12295 . 
175 Ministry of Energy, Import Substitution in the Fuel and Energy Comple x. Viewed at: 
https://minenergo.gov.ru/node/7693 . 
176 Ministry of Energy of the Russian  Federation, Innov ative Development of Power Plants . Viewed at: 
https://minenergo.gov.ru/node/4844 . 
177 See also Section 3.3.1, Incentives.  
178 Federal Law No.  65-FZ of 18 March 2020 on Amendments to Part Two of the Tax Code of  the 
Russian  Federation; Federal Law No.  193-FZ of 13 July 2020 on State Support of Entrepreneurial Activity in the 
Arctic Zone of the Russian  Federation; Federal Law No.  194-FZ of 13 July 2020 on Amendments to Certain 
Legislative Acts of the Russian  Feder ation in Connection with the Adoption of the Federal Law on State Support 
of Entrepreneurial Activity in the Arctic Zone of the Russian  Federation; and Federal Law No.  195-FZ of 
13 July 2020 on Amendments to Part Two of the Tax Code of the Russian  Federati on in Connection with the 
Adoption of the Federal Law on State Support of Entrepreneurial Activity in the Arctic Zone of the 
Russian  Federation.  WT/TPR/S/416  • Russian Federation  
- 125 - 
4.2.2.6.3   Energy strategy and policy  
4.112.   There were several developments during the review period regarding the formulation of the  
general energy strategy of the Russian  Federation and its implementation in specific policy areas.  
4.113.   In June 2020, the Government adopted the Energy Strategy of the Russian  Federation for 
the Period up to 2035179 (ES-2035), which replaced the Energy Strategy  of the Russian  Federation 
until 2030.180 According to the authorities, the main activities contemplated by the ES -2035 aimed 
at achieving the goal of energy development are:  
• effective provision of the needs of the socio -economic development of the 
Russian  Federation with the corresponding volumes of production and export of products 
and services of the fuel and energy complex, which means effective satisfaction of domestic 
demand, formed, inter alia , within the framework of the implementation of national 
programmes and projects, and on the other hand is based on a balance of availability and 
usefulness for the consumer of energy products or services, as well as on the efficienc y of 
production of these products and services;  
• spatial and regional development of the energy sector, which means the transformation and 
optimization of energy infrastructure, taking into account the development of domestic and 
global markets for energy p roducts and services, political and economic integration 
processes, and changes in international relations;  
• achieving technological independence of the fuel and energy complex branches and 
increasing competitiveness, which means a sufficient level of provi sion of fuel and energy 
complex organizations with their own competencies and technological complexes, 
equipment, materials, software, and related services produced in the territory of the 
Russian  Federation and territories under the jurisdiction of the Ru ssian Federation for 
sustainable functioning and development; and  
• improvement of public administration and development of international relations in the field 
of energy.  
4.3  Services  
4.3.1   Financial services  
4.3.1.1   Overview  
4.114.   Banking dominates the financial sector in the Rus sian Federation. Between 2016 and 2019, 
the ratio of assets in the banking sector to GDP increased from 86.5 % to 97.4%.181 Net assets of 
non-state pension funds and mutual investment funds stood at 8.9% of GDP at the end of 2020, 
and net assets of insurance companies at 3.6% of GDP.  Dominated by banks with state ownership 
of varying degrees, the banking sector's loan portfolio increased from RUB  46 trillion at the end of 
2016 to RUB  68 billion at the end of 2020  and indicators of financial inclusion  improved, while 
competition remains limited. While the insurance sector grew rapidly over the reporting period, it 
remains overall small.  
4.115.   The Russian Financial Market Development Guidelines for 2019 -2021 issued by Bank of 
Russia spell out that financial m arket development and sector growth contribute to improving the 
standard of living through competitive access to debt and equity financing, as well as options to 
hedge risks. To achieve these goals, the Bank of Russia identified four policy areas: creating  an 
 
179 A detailed plan for the implementation of ES -2035 was approved in June 2021.  
180 The Energy Security Doctrine of 2012 was updated in 2019. The authorities observe that ES -2035 
and the Energy Security Doctrine are two interrelated and complementary documents, and that while the 
Energy Security Doctrine is focused on ensuring the energy security, ES -2035, for its pa rt, is focused on the 
future development of energy sector.  
181 Provided by the authorities as assets minus provisions for losses divided by nominal GDP with data 
from the Bank of Russia and Rosstat.  WT/TPR/S/416  • Russian Federation  
- 126 - 
environment of trust, promoting competition in the financial market, maintaining financial stability, 
and enabling access to financial services and capital.  
4.116.   According to Federal Law No.  86-FZ of 10  July 2002 on the Central Bank of the 
Russian  Federatio n (as amended), the Bank of Russia regulates and supervises the banking and 
non-banking financial sector, including all microcredit companies, consumer credit cooperatives, and 
agricultural credit consumer cooperatives, and since 12  February  2021 has direc tly controlled the 
larger ones.182 In line with their treaty, EAEU member  State s aim to harmonize legislation affecting 
banking, insurance, and securities markets and to establish a single market for financial services by 
2025.183 
4.117.   Over the review period, the  Bank of Russia introduced proportionate regulation of banks and 
microfinance institutions and introduced regulatory measures to improve resilience to liquidity 
shocks. It also continued to support the development of national payment systems and fintech 
innovation. In the insurance sector, the Government eliminated certain ownership -related 
restrictions for insurance companies with majority foreign ownership in line with its GATS 
commitments184 and is preparing additional changes regarding the operation of b ranches of foreign 
insurance companies (Section  4.3.1.3). In 2016, the Bank of Russia established a National 
Reinsurance Company, with which insurers have to insure part of their ceded obligations.185 
4.3.1.2   Banking  
4.118.   The Bank of Russia continued its efforts to strengthen the financial system and ensure 
regulatory compliance. As a result, the number of banks and non -bank credit institutions declined 
from 623 at the end of 2016 to 442 in early 2020 (see Table  4.11). Duri ng 2020, the number of 
credit institutions fell further, to 406, according to the authorities. Among them were 12 systemically 
important banks that accounted for nearly 76% of the total assets of the banking sector.186 From 
2016 to April 2021, the Bank of R ussia revoked licences from 264 credit institutions, almost half of 
them due to non -compliance with anti -money laundering laws, according to the authorities. Over 
the reporting period, 58 restructurings took place.187 Between 2017 and 2021, the Bank of Russ ia 
applied insolvency prevention measures regarding nine banks. In 2018, the Bank of Russia also 
created a non -core asset bank (NAB) established under the auspices of NB Trust (PJSC) in a process 
that also included a number of asset transfers and mergers w ith (parts of) other banks participating 
in bankruptcy prevention measures. The NAB receives non -core and toxic assets in line with Bank 
of Russia participation plans in their interventions.  
4.119.   The Bank of Russia as regulator has issued two types of banking l icences since June 2017.188 
Roughly two thirds of banks, representing more than 99% of banking assets, hold a universal licence, 
 
182 According to the Bank of Russia, this means that 17%  of microfinance organizations, 
33% of the active consumer credit cooperatives, and  13% of the active agricultural consumer credit 
cooperatives will be  under its direct supervision, while others will be under the supervision a "self -regulatory 
organization". B ank of Russia, "Bank of Russia Establishes Criteria for Delineation of Supervisory Authority in 
Microfinance Market", 1 February 2021. Viewed at: http://www.cbr.ru/eng/press/event/?id=9534 . According to 
the authorities, control includes functions such as periodically conducting an inspection in addition to regular 
supervisory activities.  
183 WTO document WT/REG358/1, 13 July 2018.  
184 WTO document WT/ACC/RUS/70/Add.2, 17 November 2011.  
185 The comp any was established as a joint stock company with the Bank of Russia owning 100% of its 
shares.  
186 Bank of Russia, "List of Systemically Important Credit Institutions Approved", 29 October 2020. 
Viewed at: https://www.cbr.ru/eng/press/pr/?file=29102020_000000ENG_PP02112020_150646.htm . 
187 The introduction of a new commercial bank resolution mechanism in 2017 (Federal Law No.  84-FZ of 
1 May 2017 on Amending Certain La ws of the Russian  Federation) allows the Bank of Russia to finance bank 
resolution interventions through the Fund of Banking Sector Consolidation Asset Management Company set up 
by the Bank of Russia, minimizing the use of budget funds, according to the au thorities, while increasing 
control. Bank of Russia (2018), Annual Report 2017.  
188 Federal Law No.  92-FZ of 1 May 2017 on Amending the Federal Law on Banks and Banking Activities 
established two types of licences (universal and basic) and defined new minimu m capital requirements that 
differ for both types of banks. Basic licences come with simpler regulation but also contain some restrictions 
such as limitations on international operations and stricter limits on risk exposure per borrower. Bank of Russia 
(2018), Annual Report 2017 . See also amendments to Federal Law No.  86-FZ of 10  July 2002 on the Central 
Bank of the Russian  Federation (Bank of Russia).  WT/TPR/S/416  • Russian Federation  
- 127 - 
with smaller banks (with equity ranging from RUB  300 million to RUB  1 billion) holding basic 
licences.189 Non-bank credit institu tions accounted for 5.2% of assets in early 2021.190 
Table 4.11 Banking sector, 2016 -20a 
  2016  2017  2018  2019  2020  
Structure  
 Number of licensed banks  575 517 440 402 366 
 Number of non -bank credit institutions  48 44 44 40 40 
 Share of system assets of:  
  3 largest banks  48.7 48.9 54.1 53.7 54.6 
  5 largest banks  55.3 56.0 61.6 61.4 62.6 
 Total assets (% of GDP)  86.5 84.9 84.9 81.3 97.4 
 Total asset growth rate  3 7.9 6.2 5.9 12.5 
 Total gross loans (% of GDP)  65 63.3 53.7 54.2 63.4 
 Credit to private sector (% of GDP)  51.1 50.1 50.9 51.9 60.8 
 Total deposits, excluding interbank (% of 
GDP) 56.7 55.3 54.4 53.6 62.8 
Capital adequacy (FSI)  
 Regulatory capital to risk -weighted assets  13.1 12 12.2 12.3 12.5 
 Tier 1 capital to risk -weighted assets  9.2 8.5 8.9 9.3 9.7 
Asset quality  
 Ratio of client funds to total loans  110 110.5  106.7  103.4  103.2  
 NPLs to total loans  11 11.4 10.8 9.6 9 
 Net NPLs to total capital  15.8 16 15.5 12 10.9 
 Loss loan provisions to total loans  9.9 10.2 9.5 9 9.1 
Profitability  
 Profits (% change)  509 23 85 72 6 
 Return on assets  0.9 0.7 1.2 2 1.7 
 Return on equity  9 6.4 11.5 19.5 15.7 
 Non-interest expenses to gross incomeb 45.3 41.5 45.6 44.6 51.8 
 Average lending spread (basis points) 
(FSI) 304.2  278.5  259.4  259.4  259.4  
 Interest income to gross income  65.3 62.4 59.4 53 44.8 
a Data are as of 1 January of the following year ( e.g. data for 2016 are as of 1 January 2017).  
b The category "non -interest expenses" represents the total expenses (not including the cost of 
making reserves for possible losses) minus interest expenses and expenses rela ted to foreign 
exchange transactions.  
Source:  IMF, Financial Soundness Indicators (FSI); and information provided by the authorities and the Bank 
of Russia.  
4.120.   Overall, concentration within the banking sector remains high, with the five largest credit 
institu tions accounting for 62.2% of total assets. The banking sector is dominated by large state -
owned banks, accounting for more than two thirds of the banking sector by assets.191 Four of the 
five largest credit institutions were state -owned in 2020, and the la rgest, Sberbank, accounted for 
about 35% of system loans and 45% of retail deposits in August 2020.192 As part of measures to 
prevent insolvency, the Bank of Russia acquired shares in a number of relatively large banks whose 
assets account for less than 3% of banking sector assets as of May 2021, according to the 
authorities. The objective of the Bank of Russia is to sell shares of the rehabilitated banks to new 
owners following such interventions. In April 2020, the Bank of Russia sold its majority stake in  
Sberbank to the Ministry of Finance in a RUB  2.1 trillion (USD  28.5 billion) deal funded from the 
National Wealth Fund.193 
4.121.   According to the IMF and the Bank of Russia, competition in the main product markets of 
the financial sector remains insufficient, an d although spreads between lending and deposit rates 
have fallen significantly over the past years, they remain elevated (see Tables 4. 11 and Table 4. 12), 
as does the net interest margin. Overall, the Russian banking sector can be best characterized as 
 
189 Bank of Russia , Banking Sector . Viewed at: https: //www.cbr.ru/eng/banking_sector/ . 
190 Data provided by the authorities.  
191 IMF (2018), Russian  Federation:  Selected Issues , IMF Country Report No.  18/276.  
192 Fitch Ratings, "Fitch Affirms 4 Russian State -Owned Banks", 3  November  2020. Viewed at: 
https://www.fitchratings.com/research/banks/fitch -affirms-4-russian -state-owned -banks -03-11-2020.  
193 Reuters , "Russian Finance Ministry Buys 50% of Sberbank from Central Bank", 10 April 2020.  WT/TPR/S/416  • Russian Federation  
- 128 - 
operating under monopolistic competition, according to the IMF194, as the banking sector remains 
dominated by the largest two state -owned banks195, while the authorities consider the sector as 
oligopoly with a competitive environment. According to the IMF's analysis, the degree of competition 
in the banking sector is similar to that in India and Brazil, while the degree of competition of Russian 
private banks tended to be greater than that for Russian state -owned banks, although the difference 
was not s tatistically significant. According to the Bank of Russia, competition in the important 
segments of transfer and payments remained most monopolized, while competition was stronger in 
the segments of insurance and investment services.196 
Table 4.12 Cross -country comparison of banking -related indicators  
 
Share of 
top 3 banks 
(2017)  Share of 
top 5 banks 
(2017)  Net 
interest 
margin 
(2017)  Interest 
rate spread 
(2019)  Return on 
assets 
(2019)  Return 
on equity 
(2019)  
Brazil  56.6 83.4 6.3 32 1.98 17.99  
China  37.2 52.5 2.3 2.9 0.87 10.96  
India 37.3 47 3.0 .. 0.22 2.75 
Russian  Federation  60.6 67.8 6.1 3.3 2.35 19.54  
South  Africa  76.7 98.5 3.7 3.1 1.47 17.64  
United Kingdom  49.1 67.1 2.6 2.7 0.50a 7.46a 
.. Not available.  
a Year 2018.  
Source:  World Bank, Global Financial Development Database, October 2019; IMF, Financial Soundness 
Indicators; and World Bank, World Development Indicators.  
4.122.   Profitability as measured by the return on assets or capital is higher than in other BRICS 
countries (see Table 4. 12) with, on average, return on assets (capital) at 1.7% (15.7%) at the end 
of 2020. However, this average masks significant variance across banks, with larger banks having 
higher returns on assets compared  to smaller ones, and around a quarter of banks having losses 
during the first half of 2021.197 The Bank of Russia estimates that, in September 2020 during the 
pandemic, around 5% of the assets of the banking sector were with unprofitable banks.198 Using a 
broader set of measures, the IMF in its 2018 assessment found that the "efficiency"199 of private 
banks was higher than that of state -owned banks, with Sberbank standing out positively.  
4.123.   Access to banking services has improved over the past years, with 76% of  the population 
older than 15 years having an account in 2017200, the number of accounts per capita increasing to 
1.8 at the beginning of 2020, and the number of investment accounts also increasing nearly tenfold 
between 2017 and 2020.201 Online banking is b ecoming increasingly widespread, and 86.5% of 
accounts had remote access in 2020202 while the number of physical branches per 100,000 adults 
continued to decline from 30.1 in 2016 to 25.6 in 2019.203 While the Russian  Federation had a 
generally dense network infrastructure for financial services, geographic and demographic 
characteristics affect the provision of financial services to certain population groups, according to 
the authorities. As part of the implementation of the Strategy for Increasing Financial Inclusion for 
 
194 IMF Country Report No.  18/276. Data coverage until 2016 only. The analysis does not only consider 
actual concentrat ion but also assesses the contestability of financial services.  
195 At the end of 2017, Sberbank and Total VTB Group accounted for more than 50% of system deposits 
and system loans. IMF Country Report No.  18/276. This situation has not changed fundamentally as the 
authorities confirmed in this review that as of 1  January  2021, the same banks (the two largest banks) 
accounted for about 50% of system loans and system deposits.  
196 Bank of Russia (2020), Annual Report 2019 . 
197 The share of banks making losses stoo d at 17% in 2019 before increasing during the pandemic and 
standing at around a quarter in the first half of 2021. Bank of Russia, "Financial Performance of Credit 
Institutions " Statistics. Viewed at: https://www.cbr.ru/eng/banking_sector/statistics/ .  
198 Speech by Elvira Nabiullina, Governor of the Bank of Russia. Viewed at: 
https://www.bis.org/review/r201001f.htm .  
199 IMF Country Report No. 18/276: "Efficiency" relates to the transformation of various inputs such as 
deposits and expenses into outputs such as loans and profits.  
200 World Bank, Global Findex Database 2017.  
201 Data provided by the authorities.  
202 Bank of Russia (2020), Annual Report 2019 . 
203 World Bank, "Commercial Bank Branches (per 100,000 Adults)". Viewed at: 
https://data.worldbank.org/indicator/FB.CBK.BRCH.P5 . WT/TPR/S/416  • Russian Federation  
- 129 - 
the period 2018 -20 (and 2021), priorities are to provide equal access for residents in remote and 
sparsely populated areas, SMEs, people with disabilities, the elderly, and other les s mobile citizens.  
The Bank of Russia also prepared a Roadmap for the Development of Funding for Small and Medium -
sized Enterprises (SMEs) in 2021 -2022 that focuses primarily on developing new areas of financing. 
It includes broadening access to financing for SMEs through crowd -investing platforms, bond 
issuance, increasing the use of factoring, or faster payment systems.  
4.124.   Over the reporting period, the structure of bank lending changed only marginally, with 
lending to manufacturing, construction, and wholes ale/retail declining and most notably lending to 
individuals increasing (see Table 4. 13). As of 1  January  2021, the share of mortgage loans accounted 
for 47% of household loans204, supported by a new government programme of subsidized mortgage 
loans for new  homes introduced in April 2020 and extended into 2021.205 In 2020, the share of 
government bonds in bank assets increased to around 6% but remained low compared with that of 
other emerging economies.206 
Table 4.13 Credit to private sector, by economic activity, 2016 -20 (in %)  
 
2016  2017  2018  2019  2020  
Agriculture, hunting and forestry  4.2 4.2 4.3 4.0 4.1 
Mining  5.7 6.1 6.3 3.2 3.8 
Manufacturing  15.6 15.8 14.7 16.3 16.6 
Production and distribution of energy, 
gas and water  3.1 3.1 2.8 2.5 2.6 
Construction  4.6 3.8 3.4 2.6 2.6 
Wholesale and retail trade, repair of 
vehicles motorcycles, household goods 
and personal items  10.4 9.1 9.1 8.0 6.4 
Transport and communication  4.1 4.2 4.8 4.4 3.8 
Other economic activities  13.9 12.3 12.1 13.2 13.6 
Individuals  27.6 29.3 31.6 34.7 34.9 
Of which: mortgage loans  11.5 12.5 13.6 15.1 16.3 
Source:  Information provided by the authorities.  
4.125.   These market outcomes are partially due to restrictions to trade in commercial banking 
services that further increased between 2016 and 2020, according to the OECD's Services Trade 
Restrictiveness Index, and that are among the most severe among the countri es covered in the 
Index.207 Banks are predominantly domestically owned, and the share of capital held by foreigners 
declined over the reporting period. From 2016 to early 2021, the number of credit institutions with 
non-resident participation declined from 199 to 124208, while total investment by foreigners in the 
capital of credit institutions remained broadly unchanged at RUB  400 billion but fell in terms of its 
share (from 13.4 to 10.9%, continuing the trend outlined in the last Secretariat report) (Chart  4.4). 
In line with the Russian  Federation's GATS commitments, foreign capital participation in the banking 
system remains limited to 50%, controlled through prior authorizations by the Bank of Russia for 
new establishments, capital increases, or acquisitio n of shares. Non -residents are allowed to hold 
only 25% of votes of securities registrar companies. Foreign banks are required to establish locally 
incorporated subsidiaries or corporations and cannot establish branches in the Russian  Federation. 
Represent ative offices cannot undertake banking operations.  The Bank of Russia also maintains 
 
204 Bank of Russia,  "Housing (Mortgage) Loan Market" and "Financial Performance of Credit Institutions" 
Statistics. Viewed at: https://www.cbr.ru/eng/banking_sector/statistics/ . 
205 The preferential mortgage pro gramme at 6.5% was launched in April 2020 and extended until 
1 July 2021. According to the authorities, it aims to stimulate short -term demand in the primary market in 
response to the pandemic, by subsidizing the difference between the key rate of the Bank  of Russia increased 
by 3 percentage points, and the credit rate of the loan agreement, which should not exceed 6.5%.  
206 Reuters , "Russian State Banks' Snapping of Govt Debt Does Not Hurt Lending Activity  – IMF", 
9 December 2020.  
207 Since 2016, new restric tions on cross -border money transfers from the Russian  Federation to 
countries barring the use of the Russian national payment system (see text), and measures resulting in foreign 
suppliers being treated differently in terms of taxes and access to subsidie s, drive increases in restrictiveness 
as measured by the STRI. They have compounded earlier increases in restrictiveness since 2014. OECD 
(2020), STRI Country Note: Russian  Federation . Viewed at: http://www.oecd.org/trade/topics/services -
trade/documents/oecd -stri-country -note-rus.pdf ; and STRI database. Viewed at: 
https://qdd.oecd.org/subject.aspx?Subject=063bee63 -475f-427c-8b50-c19bffa7392d . 
208 Data provided by the authorities.  WT/TPR/S/416  • Russian Federation  
- 130 - 
business reputation requirements for managers, some officials, and major shareholders of banks, 
and these were expanded in 2018.209 
Chart 4.4 Foreign capital participation in Russian banking system , 2011 -20  
 
Source:  Information provided by the authorities . 
4.126.   Generally, the use of technology in financial services is high, with the adoption rate of fintech 
among the highest in the world210 and many domestic firms innovating and operating. As a result, 
access to financial services remained strong overall during the pandemic, as contact restrictions 
were being put in place.211 The Guidelines for Financial Technology Development for 2018-2020 
issued by the Bank of Russia build on and contribute to the implementation of the goals outlined by 
the Digital Economy of the Russian Federation national programme, building also on a large set of 
other strategic documents, including the Financi al Market Development Guidelines for 2016 -2018 
(later updated to 2019 -2021) (Section 1.1.1.1 ). They aim to reduce risks and costs in the financial 
sector, ensuring security and stability in financial technologies, and increasing the competitiveness 
of Russ ian technologies by creating a fintech -friendly environment.212 Major banks have been 
collaborating with fintech start -ups and in April 2018 the Bank of Russia launched a regulatory 
sandbox. In June 2018, the Bank of Russia launched the Unified Biometric Sy stem, developed in 
partnership with major banks, allowing for online identity confirmation.213 
4.127.   The Bank of Russia sets requirements for the operation of payment systems in line with 
Federal Law No.  161-FZ.214 Since 2018, foreign payment systems have been req uired to use the 
Russian payment infrastructure for domestic money transfers.215 The Law also requires credit 
institutions to provide only national payment instruments or payment cards when executing certain 
transfers from government budget to individuals. The Bank of Russia continued to support the 
 
209 Bank of Russia, Business Reputation . Viewed at: https://www.cbr.ru/eng/bus iness_reputation/ . 
Federal Law No.  395-1 of 2 December 1990 on Banks and Banking Activities as amended by Federal Law 
No. 281-FZ of 29 July 2017 on Amendments to Certain Legislative Acts of the Russian  Federation in Terms of 
Improving the Mandatory Require ments for Founders (Participants), Governing Bodies and Officials of Financial 
Organizations.  
210 Ernst and Young (2019), Global Fintech Adoption Index.  
211 Speech by Elvira Nabiullina, Governor of the Bank of Russia. Viewed at: 
https://www.bis.org/review/r201001f.htm . 
212 Bank of Russia, Financial Technology Development . Viewed at: https://www.cbr.ru/eng/fintech/ . 
213 Viewed at: https://www.rtlabs.ru/en/about/news/v -rossii-zapushchena -edinaya -biometricheskaya -
sistema -/. 
214 Federal Law No.  161-FZ of 27 June 2011 on the National Payment System.  
215 Bank of Russia (2020), Annual Report 2019 ; and OECD (2020), STRI Country Note: Russian 
Federation. Viewed at: http://www.oecd.org/trade/topics/services -trade/documents/oecd -stri-country -note-
rus.pdf . 
 - 50 100 150 200 250 300 350 400 450
0%5%10%15%20%25%30%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020% of foreign investments in aggregate capital of credit institutions
Total foreign investment in the banking sector (RUB billion)Chart 4.[RUS]  Foreign capital participation in Russian banking system, 2011 -20
Source:   Information provided by the authorities of the Russian Federation.(RUB billion)WT/TPR/S/416  • Russian Federation  
- 131 - 
development of payment systems over the reporting period and fully launched the national Mir 
payment system. Mir cards accounted for 24% of domestic transactions in 2020 and 30.6% of all 
card issuances, with the cards accepted internationally in 13 countries including all EAEU 
countries.216 In 2019, the Bank of Russia launched the Faster Payments System, allowing instant 
funds transfers between bank accounts using mobile phone numbers, and 210 banks had joined the 
system by 2021.217 
4.3.1.2.1   Stability of the banking sector  
4.128.   According to the latest anal ysis by the IMF, the banking sector remains financially sound, 
with capital adequacy ratios adequate at 12.7% during the third quarter of 2020 and NPL 
conservatively provisioned.218 At the beginning of 2019, foreign and private banks had higher capital 
adequacy than state -owned banks, with banks currently under rehabilitation negatively affecting the 
averages. At the end of 2020, 12 banks did not meet capital adequacy ratios, according to the 
authorities.219 While NPLs remained at elevated levels over the rep orting period and prior to the 
pandemic, the share of NPLs in corporate loans (both large companies and SMEs) decreased during 
2020, possibly as a result of loan restructuring, while it increased for retail loans.220 In 2016, the 
Bank for International Sett lements (BIS) found the domestic implementation of the risk -based 
capital framework and the Basel Liquidity Coverage Ratio (LCR) standards to be compliant with the 
minimum Basel III standards.221 
4.129.   To ensure resilience to liquidity shocks, systemically import ant credit institutions (D -SIBs) 
are also subject to requirements on their liquidity coverage ratio (exceeding 100% since 
January  2019).222 At the end of 2019, the short -term liquidity ratio of D -SIBs ranged from 100% to 
206%, and from 110% to 158% at the e nd of 2020, according to the authorities. To allow for access 
by D-SIBs to highly liquid assets that meet the Basel III definition , the Bank of Russia in 2015 
introduced "irrevocable credit lines" for these banks at interest rates 175  bp above the key rate  in 
case they would be used.223 To curtail their use and reduce banks' reliance on them, fees for the use 
of such lines were increased in May 2019 and in early 2020, maximum limits were set for banks 
having the right to establish such lines, and schedules for reducing these limits were established.224 
As a response to the pandemic, the Bank of Russia introduced a number of temporary relief measures 
including reduced fees for the lines' use225, the maximum limit under the facility was increased from 
RUB 1.5 trillion to RUB  5 trillion in Apr il 2020, and Sberbank opened a credit line for RUB  500 billion 
shortly thereafter.226 According to the authorities, a return to the normal environment of compliance 
with short -term liquidity ratios is being considered.  
4.130.   To increase the Bank of Russia's abili ty to influence lending behaviour of banks in riskier 
assets, Federal Law No . 86-FZ of 10  July 2002 on  the Central Bank of the Russian  Federation (Bank 
 
216 Bank of Russia (2021), Annual Report 2020 . 
217 Bank of Russia, Faster Payments System . Viewed at: https://www.cbr.ru/eng/PSystem/sfp/ . 
218 IMF, "Russian  Federation: Staff Concluding Statement of the 2020 Article IV Mission", 
24 November  2020. Viewed at: https://www.imf.org/en/News/Articles/2020/11/23/mcs112420 -russia -staff-
concluding -statement -of-the-2020-article -iv-mission . 
219 Taking into account credit institutions with negative capital, where bankrup tcy prevention measures 
with the participation of the Bank of Russia or the Deposit Insurance Agency are being taken.  
220 As of April 2021, the share of non -performing loans (overdue for more than 90 days) increased to 
8.9% (as of 1 April 2021), up from 7.5% at the beginning of 2020, while it remained at around 1% for the 
mortgage portfolio.  
221 Basel Committee on Banking Sup ervision (2016), Assessment of Basel III Risk -Based Capital 
Regulations – Russia . Viewed at: https://www.bis.org/bcbs/publ/d357.pdf ; and Assessment of Basel III LCR 
Regulations – Russia . Viewed at: https://www.bis.org/bcbs/publ/d358.pdf . 
222 Bank of Russia (2020), Annual Report 2019 . 
223 Bank of Russia Order No. OD -3381 of 30  November 2015 on Issuing Bank of  Russia Loans under 
Agreements on  Opening an  Irrevocable Credit Line.  
224 Bank of Russia Order No.  OD-854 of 16  April 2019 on  Amending Bank of Russia Order No.  OD-3439, 
dated 3  December 2015.  
225 Bank of Russia, "Bank of Russia Approves Measures to Support People, Economy and Financial Sector 
During Coron avirus", 20 March 2020. Viewed at: 
http://www.cbr.ru/eng/press/pr/?file=23032020_170800eng2020 -03-23T17_07_10.htm .  
226 S&P Global Market Intelligence, "Sberbank G ets Credit Line of up to 500B Rubles from Central 
Bank – Vedomosti", 14  April 2020. Viewed at: https://www.spglobal.com/marketintelligence/en/news -
insights/latest -news-headlines/sberbank -gets-credit -line-of-up-to-500b-rubles -from-central -bank-8211-
vedomosti -58021333 . WT/TPR/S/416  • Russian Federation  
- 132 - 
of Russia) was amended effective 7  March  2018227, allowing its Board of Directors to set add -ons to 
risk weights to calculate capital adequacy of credit institutions.228 The Bank of Russia also issued an 
Ordinance229 linking the issuance of new credit to households and related risk weights to newly 
introduced "debt loan indicators", and increased add -ons to ris k weights for unsecured consumer 
loans, which had been growing rapidly.230 The Bank of Russia also increased risk weights for 
mortgages supported by low down payments (of 10% -20%) in January 2018 and again in 2019 in 
an effort to reduce the share of such lo ans in total mortgage loans.  
4.131.   A mandatory deposit insurance scheme, funded largely from insurance premiums, covers 
deposits of up to RUB  1.4 million per customer per insured event as outlined in Federal Law 
No. 177-FZ of 23  December  2003 on Insurance of Nat ural Persons' Deposits in Banks of the 
Russian  Federation. It covers deposits of natural persons, individual entrepreneurs, small enterprises 
registered in the unified register of small and medium -sized businesses, and certain non -profit 
institutions.231 Participation is mandatory for banks licensed to attract deposits from and maintain 
accounts of individuals. As of 1  June 2021, only 7.8% of all operating banks had not joined the 
system, as they were not licensed to attract deposits from and maintain accoun ts of individuals.  
4.132.   Accommodative monetary conditions (the reference rate was set to 4.25% on 27  July 2020, 
a historic low, before being again raised three times to 6.5% between March and July 2021) and 
regulatory forbearance to cushion the impact of the pa ndemic, however, could well mask the true 
situation of the banking sector. With regulatory forbearance measures relating to asset valuation, 
risk categorization, and the suspension of macroprudential risk -weight add -ons for the calculation 
of capital ratio s, the authorities consider that the banking sector has overcome the difficulties of 
2020. By April 2021, banks had restructured loans valued at more than RUB  7.4 trillion (or 12% of 
the total portfolio), according to the authorities. As a result, it remai ns unclear whether loan 
provisioning, which increased only modestly in 2020, fully reflects the actual underlying credit risks 
at individual banks. According to the authorities, banks expect that 2% -3% of the restructured loans 
could ultimately become non -performing.  
4.3.1.3   Insurance  
4.133.   The Bank of Russia regulates, controls, and supervises the insurance sector, including mutual 
insurance companies and insurance brokers. While the insurance sector grew rapidly over the 
reporting period, the insurance market in the Ru ssian Federation remains small overall, with the 
penetration rate of insurance service at 1.4 in 2020, compared to an OECD average of 9. The 
penetration rate of life insurance is especially relatively low.232 The ratio of assets to GDP stood at 
3.5% at the end of 2020. There are no state -owned insurance companies with the exception of 
Rosgosstrakh following its bail -out in 2017.  
4.134.   Over the reporting period, the number of insurers in the market fell from 334 at the 
beginning of 2016 to 160 at the end of 2020, w hile gross written premiums increased from around 
RUB 1.2 trillion in 2016 to nearly RUB  1.5 trillion in 2020. While the share of life insurance in total 
written premiums increased from 18.3% in 2016 to 30.5% in 2018, the share declined to 27.9% in 
2020, a lthough it remained the largest segment. Mandatory insurance of civil liability of owners of 
cars (MICLC) remains an important sector.233 A national reinsurance company was established in 
2016 as a reaction to economic restrictions imposed by certain Members  affecting access to 
international reinsurers, and insurance companies must reinsure 10% of their ceded obligations 
 
227 By means of Federal Law No.  53-FZ of 7  March 2018 on  Amending Certain Laws of the 
Russian  Federation.  
228 Such changes had previously required amending regulatory acts. Bank of Russia (2019), Annual 
Report 2018 . 
229 Bank of Russia Ordinance No.  4892-U of 31 August 2018 on Types and Characteristics of Assets for 
Which Risk -based Capital Buffers Are Set and on the Methodology for Applying These Buffers to the Said Types 
of Assets for Credit Institutions to Calculate Th eir Capital Adequacy Ratios. Bank of Russia (2019), Annual 
Report 2018 . 
230 Growth of unsecured consumer lending slowed in the first half of 2020 before the Bank of Russia 
reduced add -ons to risk weights for some new unsecured consumer loans. Bank of Russia,  "Bank of Russia's 
Decision on Regulatory Easing and Macroprudential Measures", 10 August 2020.  
231 Deposit Insurance Agency (2020), Annual Report 2019 . 
232 OECD Stat. Viewed at: https://stat s.oecd.org/Index.aspx?DataSetCode=INSIND . Penetration rate is 
measured as gross written premiums divided by GDP.  
233 Only members of the Russian Motor Insurers Union could provide this insurance.  WT/TPR/S/416  • Russian Federation  
- 133 - 
(with some exceptio ns) with the national reinsurance company.234 It is fully owned by the Bank of 
Russia.  
4.135.   In 2020, 75% of premiums were concluded via intermediaries. By the end of 2020, 
59 licensed insurance brokers were operating. Insurance agents do not require a licence.  
4.136.   Concentration in the insurance market increased over the reporting period. The market share 
of the top 10 insurers increased from 74% to 82%, and the majority of market participants expect 
further mergers and acquisitions to take place.235 In 2017, Otkritie Group merged with Rosgosstrakh, 
the largest insurance company at the time of the last Review. In 2018, SOGAZ acquired 100% of 
VTB Insurance and, as of 2019, was the largest insurance company (with 23.2% market share). To 
allow for the Bank of Russia to par ticipate in bankruptcy prevention measures for insurance 
companies, Federal Law No. 86 -FZ of 10  July 2002 on the Central Bank of the Russian  Federation 
was amended in 2018.236 It allowed for the establishment of a Fund of Insurance Sector 
Consolidation, all owing the Bank of Russia to provide subordinated loans to, and acquire insurance 
companies for, bankruptcy prevention measures.  
4.137.   On average, insurance companies are profitable, but there are stark differences in 
profitability. At the end of 2020, returns on  assets and equity of the 20 largest insurers stood at 
6.8% and 28.7%, respectively, significantly higher than those of the remaining insurance companies. 
According to the authorities, profits in 2020 remained unchanged from 2019, as lower returns on 
insurance activities (driven by the life segment) were offset by higher investment results.237 
4.138.   According to the OECD's Services Trade Restrictiveness Index, the insurance services sector 
in the Russian  Federation is among those with the highest restrictions rela tive to other sectors across 
all countries covered in the STRI, and restrictions increased between 2016 and 2020.238 Over the 
reporting period, the number of existing insurance organizations with the participation of 
non-residents fell from 37 to 29, with s hare of foreign participation in their aggregate charter capital 
declining significantly from 20.9% (January 2016) to 10.9% (January 2021), primarily due to capital 
increases related to increases in minimum capital requirements (see paragraph 4. 142) as overall  
investment declined only slightly. With regard to insurance intermediation and auxiliary services, 
the Russian  Federation committed to open access in its GATS commitments, except for 
intermediation on behalf of foreign companies and limiting commer cial presence to juridical persons 
of the Russian  Federation.  
4.139.   In 2017, as spelled out in the GATS schedule of commitments, the Bank of Russia, in the 
areas of personal insurance and MICLC, lifted restrictions for insurance companies that are either 
subsidi aries of foreign insurance companies or have a share of foreign investors in their charter 
capital of more than 51%.239 Restrictions remain in place regarding the provision of insurance for 
state procurements and all reinsurance and retrocession for (re)ins urers with more than 49% foreign 
capital. Similar restrictions for reinsurance companies have been eliminated. The Russian  Federation 
also requires the foreign parent companies of subsidiaries to have operated for at least five years as 
an insurance compan y in compliance of regulations in the country of origin.240 
 
234 Federal Law No. 363 -FZ of 3 July 2016 on amending the Law of  the Russian  Federation on Insurance 
Business in the Russian  Federation. Viewed at: https://en.rnrc.ru/upload/doc -en/law/fz -
363_on_amending_the_law_en.pdf .  
235 KPMG (2017 ), Insurance Market Survey 2017 . Viewed at: 
https://assets.kpmg/content/dam/kpmg/ru/pdf/2017/07/ru -en-russian -insurance -market -survey -2017.pd f; 
and KPMG (2020) Insurance Market Survey 2020 . Viewed at: 
https://assets.kpmg/content/dam/kpmg/ru/pdf/2020/08/ru -en-insurance -survey -2020.pdf . 
236 Amendment s were introduced through Federal Law No.  87-FZ of 23 April 2018 on Amending Certain 
Laws of the Russian  Federation.  
237 Bank of Russia (2021), Financial Stability Review Q4 2020 -Q1 2021, p. 46. 
238 OECD (2020), STRI Country Note: Russian  Federation . Viewed at : 
http://www.oecd.org/trade/topics/services -trade/documents/oecd -stri-country -note-rus.pdf . According to the 
STRI database, additional restrictions rel ate to the mandatory cession of reinsurance business to the National 
Reinsurance Company (see text), data localization requirements, and the newly introduced opportunities to 
access certain state guarantees for investment projects when locally incorporated  (regardless of nationality of 
investors).  
239 As per amended Article  6 of Law No.  4015-1 of 27 November 1992 on the Organisation of the 
Insurance Business in the Russian  Federation.  
240 Law No.  4015-1 on the Organisation of the Insurance Business in the Russi an Federation, Article  6. WT/TPR/S/416  • Russian Federation  
- 134 - 
4.140.   In case the ratio of total foreign participation in the total charter capital of insurers/reinsurers 
that are juridical persons of the Russian  Federation exceeds 50%, no new licences are issued to 
insurance companies that are subsidiaries of foreign companies or have more than 49% foreign 
ownership. Prior permission is required for a company to increase its charter capital at the expense 
of foreign investors, or to sell its shares to foreign investo rs. Russian shareholders must also obtain 
prior permission from the insurance supervisory authority to sell their shares of an insurance 
company to foreign investors. Likewise, the Bank of Russia significantly expanded qualification and 
reputation requirem ents for managers and other officials, as well as reputation and financial 
requirements for certain other persons controlling (part of) an insurance organization in 2017, 
including insurance agents and brokers.241 Similarly, prior consent by the Bank of Rus sia continues 
to be required for any acquisition, or control, of more than 10% of shares in a Russian insurance 
organization, or transactions that exceed certain ownership thresholds in joint stock companies or 
limited liability companies, following the ad option of Federal Law No.  281-FZ of 29  July 2017 on 
Amendments to Certain Legislative Acts of the Russian  Federation in Terms of Improving the 
Mandatory Requirements for Founders (Participants), Governing Bodies and Officials of Financial 
Organizations .242 
4.141.   The Bank of Russia issues licences to insurance companies for various voluntary and 
mandatory activities, as well as to reinsurance organizations, mutual insurance companies, and 
(re)insurance brokers .243 In its accession, the Russian  Federation committed t o removing restrictions 
to the establishment of direct branches of foreign (re)insurers in the fields of life insurance, non -life 
insurance (excluding insurance of state procurement and mandatory insurance other than MICLC ), 
and reinsurance (except reinsur ance of risks related to insurance of state procurement and 
mandatory insurance other than MICLC ) by August 2021, subject to licensing, financial soundness, 
and guarantee deposit requirements. A draft law has been prepared that would require foreign 
insure rs to be accredited and supervised by the Bank of Russia, allowing the provision of voluntary 
insurances and compulsory third -party liability motor vehicle insurance. If approved, the draft law 
could enter into force later in 2021.  
4.142.   Solvency ratios for insu rance companies (both life and non -life) remain significantly above 
the regulatory solvency margin as of the end of 2020.244 To further improve solvency in the insurance 
sector, the authorities undertook measures over the reporting period and issued various regulatory 
acts.245 In 2018, they increased the minimum capital requirements for insurance organizations, with 
existing com panies benefitting from a transition period to January 2023.246 Bank of Russia Regulation 
No. 710-P of 10  January  2020 establishes new approaches to determine financial stability and 
solvency of insurers. They take into account the risk of changes in the va lue of assets when 
determining capital adequacy and  will be phased in over the period 2021 -25.247 
4.143.   To strengthen consumer protection, the Bank of Russia plans to mandate insurance 
companies to provide simple and transparent information on the conditions of i nsurance contracts 
 
241 Articles 8 and 32 -1 of Law No.  4015-1 on the Organization of the Insurance Business in the 
Russian  Federation spell these out.  
242 Such thresholds for joint stock companies are 10%, 25%, 50%, and 75% of the shares, and 10%, 
1/3, 5 0%, and 2/3 of the participatory interests for limited liability companies.  
243 Law No.  4015-1 of 27 November 1992 on the Organisation of the Insurance Business in the 
Russian  Federation , Article  32. 
244 Bank of Russia (2021), Financial Stability Review Q4 2020-Q1 2021. 
245 Bank of Russia (2019), Annual Report 2018. The Bank of Russia also undertook measures to ensure 
financial stability of microfinance organizations.  
246 Federal Law No.  251-FZ of 29 July 2018 on Amendments to the Law of the Russian  Federation o n the 
Organization of Insurance Business in the Russian  Federation introduced new minimum levels that are set at 
RUB 300 million for personal and property insurance; RUB  450 million for life insurance; and RUB  600 million 
for reinsurance, with Federal Law No. 442-FZ of 22 December 2020 on Amendments to Certain Legislative Acts 
of the Russian  Federation Regarding the Introduction of Interim Measures Aimed at Preserving the Property of 
the Subject of Insurance Business in Order to Fulfill Its Obligations exte nding the transition period by a year to 
2023. According to the authorities, the charter capital of 16 insurance organizations is subject to an increase 
by 1 January 2022.  
247 Central Bank Regulation No.  710-P of 10  January  2020 on Certain Requirements for F inancial 
Sustainability and Solvency of Insurers. According to the authorities, Bank of Russia's Directive No.  5745-U of 
2 March 2021 on Amendments to the Regulation of the Bank of Russia No.  558-P dated 16 November 2016 on 
the Rules for Forming Insurance Reserves for Insurance Other than Life Insurance provides additional 
opportunities to meet these capital requirements and reduce the stabilization reserve for voluntary types of 
insurance.  WT/TPR/S/416  • Russian Federation  
- 135 - 
prior to signing insurance contracts. A gradual expansion of the requirements for disclosure of 
information is also planned.248 
4.144.   As with other financial services, the Government supports the development of technology in 
the insurance secto r, while the private sector supports the development of InsurTech via 
"accelerators" (incubators). According to the authorities, as of April 2020, insurance agents and 
brokers can also provide services via the Internet and mobile apps, but actual contracts  still have to 
be signed between the insured and the insurer (as was possible before), which is also possible 
remotely. They can also provide online services for some voluntary insurances, as well as MICLC .249 
According to market observers, firms are increa singly adopting new technologies, such as cloud 
technology, online platforms for full client interaction, chatbots, and machine learning. Depending 
on the type of insurance, between 13% and 59% of sales were concluded via an online platform in 
2020, as wer e between 7% and 30% of claims.250 
4.3.1.4   Capital markets  
4.145.   The Moscow Exchange (MOEX ) and the St. Petersburg Exchange are the two significant 
exchanges in the Russian  Federation in terms of the volume of transactions. The MOEX organizes 
trading in securities, including foreign securities, derivative financial instruments, and currencies, 
while the St. Petersburg Exchange organizes trading in foreign securities and since 2020 in Russian 
securities. Both exchanges are publicly listed as joint stock companies, with the Bank of Russia 
holding 11.8% in the charter capital of the MOEX and 8.9% i n the charter capital of the 
St. Petersburg Exchange. Both exchanges collaborate on the development of derivatives. Overall, 
the market capitalization of Russian firms admitted to organized trading on the MOEX amounted to 
RUB 56.4 trillion (52.7% of GDP fo r 2020 at current prices) at the beginning of April 2021.  
4.146.   Overall, financial markets developed further over the reporting period, as the number of 
people trading on exchanges increased. Each resident can open one individual investment account, 
eligible to receive certain tax incentives on returns for investments with maturities of at least three 
years. Over the reporting period, the number of such accounts increased from 195,000 at the end 
of 2016 to 3.5 million at the end of 2020. Overall, the number of cl ients of brokers increased more 
than seven -fold to nearly 10 million at the end of 2020, with strong increases observed in 2020. 
Most of these new clients are with credit institutions, which account for 85% of accounts. In parallel, 
the ratio of assets in brokerage services to GDP increased from 10.4% at the end of 2019 to 13.4% 
at the end of 2020. These increases took place while the number of professional participants in the 
securities market declined significantly, as did the number of companies with a b rokerage licence, 
indicating consolidation in the market. A similar trend also occurred the market of pension funds and 
the market of mutual investment funds. While the number of pension funds declined from 74 at the 
end of 2016 to 43 at the end of 2020, t he volume of their investments increased from 3.8% to 4.2% 
of GDP. Likewise, assets in mutual funds also increased significantly over the same period, from 3% 
to 4.7% of GDP.  
4.147.    Debt and stock markets are regulated by the Bank of Russia in accordance with Fe deral Law 
No. 39-FZ of 22  April 1996 on the Securities Market and regulations of the Bank of Russia.  In order 
to operate in the financial market as a non -state pension fund or a professional participant in the 
securities market, a juridical person establis hed in the Russian  Federation must obtain a licence from 
the Bank of Russia, a licence to carry out activities in pension provision and pension insurance, or 
licences to carry out brokerage, dealer, depository activities, forex dealer activities, securitie s 
management activities, or activities to maintain a register of securities owners.251 The National 
Settlement Depository (part of the Moscow Exchange Group) acts as central securities depository, 
ensuring the accounting of rights on the foreign securities held by Russian investors abroad. All EAEU 
member  State s agreed to harmonize regulations for capital markets by 2025 and to establish a joint 
regulatory supranational body. The powers of the supranational body are defined in the Concept of 
the Formation of  the Common Financial Market of the EAEU (approved by Decision of the Supreme 
 
248 Bank of Russia, "Bank of Russia to Establish Requirements for Dis closing Information on Insurance 
Products", 1 February 2021. Viewed at: http://www.cbr.ru/eng/press/event/?id=9528 . 
249 Federal Law No.  149-FZ of 24 April 2020 on Amending Federal Law No.  4015-1 of 27 November  1992 
on the Organisation of the Insurance Business in the Russian  Federation.  
250 KPMG (2020), Russian Insurance Market Survey . 
251 Listing of companies on the stock exc hange is done according to the Law on Joint Stock Companies 
and provisions under Federal Law No.  395-1 of 2 December 1990 on Banks and Banking Activities.  WT/TPR/S/416  • Russian Federation  
- 136 - 
Eurasian Economic Union No.  20 of 1  October  2019). Specific powers and functions of the 
supranational body will be established in a separate international treaty of the Union.  
4.148.   Changes to the Law on the Securities Market made over the reporting period introduced 
additional disclosure and information requirements for (issuing) securities, including in the foreign 
language used in the financial market, and regulation of investment ad vice to protect investors. 
Procedures for issuing securities were modernized, according to the authorities, and new types of 
bonds (including perpetual and structured bonds) were introduced to develop the financial market 
further.252 Regulations for convert ible securities and syndicated loans were updated.253 The 
Government broadened regulations regarding insider trading and market manipulation through 
Federal Law No.  310-FZ of 3  August  2018 on Amendments to the Federal Law on Countering the 
Unlawful Use of I nsider Information and Market Manipulation and on Amending Certain Legislative 
Acts of the Russian Federation, amending Federal Law of No.  224-FZ of 27  July 2010 on Countering 
the Unlawful Use of Insider Information and Market Manipulation and on Amending Certain 
Legislative Acts of the Russian  Federation. These changes took effect in May  2019. In 2020, the 
authorities introduced a procedure for testing unqualified investors before they can invest in complex 
financial instruments.254 While initially planned to take effect from April 2022, the date was moved 
forward to October 2021 due to the significant increase in the number of such investors.  
4.3.2   Telecommunications and postal services  
4.3.2.1   Overview  
4.149.   The Russian  Federation's telecommunications market is competitive and characterized by 
high rates of mobile penetration, relatively low market concentration, and, according to the 
International Telecommunication Union (ITU), affordable prices for standardized mobile and data 
baskets (Table  4.14). Access to fi xed broadband is also very competitive, with the 
Russian  Federation ranked 8th in the ITU's 2020 information and communication technology (ICT) 
price trends (Table 4. 15). 
Table 4.14 Pricing data for mobile tel ephony, 2020  
Type of 
basket  Rank  As % of 
gross 
national 
income 
per 
capita  USD Purchasing 
power 
parity 
(USD)  Monthly 
voice call 
allowance 
(in 
minutes)  Monthly 
SMS 
allowance  Monthly 
data 
allowance 
(in GB)  Tax rate 
included  
High 
consumption 
mobile data 
and voice 
basket  19 0.69 5.76 15.59  200 200 5.0 20.0 
Low 
consumption 
mobile data 
and voice 
basket  34 0.69 5.76 15.59  200 200 5.1 20.0 
Mobile voice 
basket  16 0.32 2.62 7.10 n.a. n.a. n.a. 20.0 
Mobile data 
basket  62 0.91 7.54 20.42  n.a. n.a. 10.0 20.0 
n.a. Not applicable.  
Source:  ITU (2021), Measuring Digital Development: ICT Price Trends 2020 . 
 
252 The law was amended more than 20 times between July 2016 and March 2021.  
253 Federal Law No.  39-FZ of 22 April 1996 on the Securities Market, as of 4 July 2016, and 
1 January  2021.  
254 Federal Law No.  306-FZ of 31 July 2020 on Amendments to the Federal Law on the Securities Market 
and Certain Legislative Acts of the Russian  Federation.  WT/TPR/S/416  • Russian Federation  
- 137 - 
Table 4.15 Pricing data for fixed broadband, 2020  
Rank  as % of gross 
national income 
per capita  USD Purchasing power 
parity (USD)  Speed, in 
Mbit/s  Cap per 
month, in 
GB Tax rate 
included 
(%) 
8 0.64 5.35 14.48  100 Unlimited  20 
Source:  ITU (2021), Measuring Digital Development: ICT Price Trends 2020 . 
4.150.   Four companies are mobile network operators: VimpelCom, MTS, MegaFon, and Tele2.255 In 
addition, more than 20 mobile virtual network operators (MVNO) are active in the market, with the 
facilities -based mobile operators being the largest providers and accoun ting for more than 90% of 
total mobile subscribers.  
4.151.   Over the review period, overall sector revenue increased from RUB  1.53 trillion in 2016 to 
RUB 1.71 trillion in 2020, although it declined slightly between 2019 and 2020 when the number of 
fixed-line and mobile subscribers fell as the number of broadband subscribers increased. Overall, 
penetration rates for mobile and fixed telephone lines stood at 163 and 17.9 per 100 inhabitants in 
2020, respectively ( see Table 4. 16). According to the Government, 85% of the population had access 
to the Internet in 2020.  
4.152.   According to the Ministry of Digital Development, Communications and Mass Media, access 
to phone services as measured by penetration rates for mobile telephony and broadband Internet 
continues to vary acro ss the federal subjects of the Russian  Federation and especially connectivity 
in the cities of Moscow and St. Petersburg considerably higher.256 To guarantee equal access to 
universal services to all citizens and bridge the digital divide between Russian re gions, regulations 
regarding the supply of universal services are in place, with all operators contributing 1.2% of the 
revenue received from the provided communication services  to the Universal Access Fund.257 In 
2014, Rostelecom was designated as a single  supplier of universal services under a 10 -year contract. 
According to the authorities, the initiative will be implemented until 2030.  
Table 4.16 Telecommunications indicators, 2016 -20 
 
2016  2017  2018  2019  2020  
Subscriptions (including pre -paid) per 100 inhabitants  
Fixed -line telephony  23.3 22.2 20.8 19.1 17.9 
Mobile telephony (active subscribers)  156 155 156 163 163 
Broadband fixed Internet  18.6 21.0 21.7 22.2 23.0 
Number of active providers       
Fixed telephone  1,055  1,211  1,208  1,229  1,168  
Mobile and Internet  38 35 32 41 45 
Fixed Internet  1,230  1,577  1,745  2,024  2,009  
Market share of top provider (%)       
Fixed telephone  .. .. .. .. .. 
Mobile and Internet  .. .. .. .. .. 
Fixed Internet  .. .. .. .. .. 
Market share of top three providers (%)       
Fixed telephone  77 74 76 76 77 
Mobile and Internet  87 84 82 81 78 
Fixed Internet  68 67 64 57 56 
..  Not available.  
Source:  Information provided by the Ministry of Digital Development, Communications, and Mass Media.  
 
255 Rostelecom has full y owned Tele2 since March 2020. According to Fitch Ratings, the Government 
holds an indirect majority ownership in Rostelecom. Fitch Ratings, Fitch Affirms Rostelecomm PJSC at "BBB -"; 
Outlook Stable , 13 November 2020.  
256 Ministry of Digital Development, Co mmunications and Mass Media, Industry Statistics , 29 June 2021. 
Viewed at: https://digital.gov.ru/ru/pages/statistika -otrasli/#section -602.  
257 Ministry of Digital Development , Communications, and Mass Media. Viewed at: 
https://digital.gov.ru/ru/activity/directions/193/ . WT/TPR/S/416  • Russian Federation  
- 138 - 
4.3.2.2   Regulatory framework and changes  
4.153.   Federal Law No.  126-FZ of 7 July 2003 on Communications (last amended 30 April 2021) 
continues to set the gener al legal framework for the provision of communication services, and there 
have been no major changes to the framework while some important revisions were introduced. 
Amendments to Federal Law No.  126-FZ and to Federal Law No.  149-FZ of 27 July 2006 on 
Information, Information Technologies and Information Security in 2019 aimed to increase the 
resilience and security of the Internet and to enhance the security of user information, according to 
the authorities.258 The Russian  Federation also adopted Federal La w No.  187-FZ of 26  July 2017 on 
the Security of the Critical Information Infrastructure of the Russian  Federation, which aims to 
ensure the security of the critical information infrastructure and its protection against computer 
attacks.  
4.154.   The telecommunicati ons sector is regulated by the Ministry of Digital Development, 
Communications, and Mass Media with the Federal Service for Supervision of Communications, 
Information Technology, and Mass Media (Roskomnadzor) in charge of licensing, personal data 
protectio n, and the regulation of information dissemination, including through the Internet. Radio 
spectrum is auctioned by the State Commission on Radio Spectrum, an interdepartmental 
coordinating body operating under the Ministry of Digital Development, Communica tions and Mass 
Media. Roskomnadzor issues and controls licences covering 20 types of specific telecommunications 
and postal services, each with limited geographical validity, and monitors compliance with the 
mandatory certification of certain telecommunica tions facilities.259 
4.155.   There are no restrictions on foreign ownership, but licensees must be incorporated in the 
Russian  Federation. According to Article  31 of Federal Law No. 126-FZ, licences are allocated using 
a competitive auction where authorities find t hat the available radio spectrum or other factors limit 
the number of operators in a certain location. In other cases, applications for licences can be made 
without an auction.260 Over the reporting period, the total number of telecommunications licences 
issued declined significantly (Table 4. 17).  
4.156.   The Ministry of Digital Development, Communications, and Mass Media also assesses the 
quality of telecommunications services based on a  methodology approved in 2014. Initial reports 
were used to identify weaknesses in the telecom network, and potential locations for additional radio 
towers and information based on test results is periodically published.261 
Table 4.17 Number of telecommunications licences, 2015 -20 
 2015  2016  2017  2018  2019  2020  
Licences        
Fixed -line 16,382  15,758  15,250  14,756  14,077  14,076  
Mobile  664 744 709 687 680 705 
Internet  19,592  18,956  17,959  17,045  16,229  16,127  
Source:  Information provided by the authorities.  
4.157.   Key pro -competitive elements for the telecommunications sector are in place. Number 
portability has been available to customers wanting to change their mobile operator since 
December  2013, with a nat ionwide number catalogue funded from the Universal Access Fund (see 
above). Requirements for offering access to (and interconnection with) telecommunications 
 
258 Federal Law No.  90-FZ of 1 May 2019 on Amendments to the Federal Law on Communications and  
the Federal Law on Information, Information Technologies and Protection of Information.  
259 In early 2021, Government Decree No.  2385 of 30 December 2020 on Licensing Activities in the 
Provision of Communication Services and Invalidation of Some Acts of the  Government replaced Government 
Decree No.  87 of 18 February 2005 on Approval of the List of Names of Communication Services Included in 
the License, and Lists of License Conditions, effectively introducing a few changes in regulated activities. 
Government  Resolution No.  532 of 25 June 2009 on Approval of the List of Communications Equipment Subject 
to Mandatory Certification outlines communication facilities subject to certification.  
260 Federal Law No.  478-FZ of 27 December 2019 on Amendments to Certain Leg islative Acts of the 
Russian  Federation Regarding the Introduction of a Registry Model for the Provision of State Services for 
Licensing Certain Types of Activities introduced the option to submit licence applications electronically via a 
system that intro duced an electronic register of licences.  
261 Ministry of Digital Development, Communications, and Mass Media. Viewed at: 
https://digital.gov.ru/ru/activity/directions/504/ . Information base d on tests is accessible at http://xn --
80aeakmgi9azaci1dvg.xn --p1ai/.  WT/TPR/S/416  • Russian Federation  
- 139 - 
infrastructure on a contractual basis apply to all infrastructure owners, with major suppliers of public 
telecommunications services being required to grant non -discriminatory access.262 According to 
Government Resolution No.  627 of 19 October 2005 on State Regulation of Prices for Connection 
Services and Traffic Transmission Services Provided by Operat ors Occupying an Important Position 
in the Public Communication Network (last amended 17 April 2021), prices for some connection and 
traffic transmission services provided by important operators are also subject to regulation. 
Regulations for the sharing o f telecom infrastructure and radio spectrum are also in place.263 
4.158.   Following amendments to Federal Law No.  126-FZ and amendments to the rules for the 
provision of telephone services, national roaming charges (within -network roaming charges for 
subscribers travelling within the Russian  Federation) were eliminated from 1 June 2019.264 According 
to the authorities, the EAEU aims to establish a Unified Pricing Approach for traffic transmission 
services and fair tariffs for mobile services in internat ional roaming across the EAEU.265 Prices of 
certain telecom services are also regulated according to Government Resolution No.  637 of 
24 October 2005 on State Regulation of Tariffs on Public Telecommunications Services and Public 
Postal Services. Two revisi ons in 2018 and 2020 adjusted the methods for establishing regulated 
tariffs based on economically justified costs or a formula -based method, thus encouraging efficiency 
improvements of telecom operators.  
4.3.2.3   Policy developments  
4.159.   Overall, digital transformation  (and the role of competitive telecommunications services in 
this process) plays an important role in government policy -making. The National Programme on 
Digital Economy of the Russian  Federation (approved in 2018) outlines objectives and benchmarks 
for th e digital transformation of the national economy and includes seven federal projects with an 
overall budget of RUB  938 trillion between 2019 and 2024.266 As elsewhere, the pandemic has 
increased the demand for and accelerated the speed of digitalization and affected the role of the 
National Programme. According to the authorities, particular focus is on support for the development 
of digital technologies, digital transformation of companies, public administration, and online 
education.  
4.160.    The State Programme on Information Society was originally approved in 2014.267 In light of 
the National Programme, the State Programme was extended in March 2020.268 The State  
Programme explicitly creates links with six of the federal projects under the National Programme269 
and allocates significant annual budgets until 2024 to its four subprogrammes.270 
 
262 The register of incumbent operators occupying a significant position in the public communications 
network is published on Roskomnadzor's website. Viewed at: https://eng.rkn.gov.ru/open_data/ . 
263 Ministry of Digital Development, Communications, and Mass Media. Viewed at: 
https://digital.gov.ru/ru/activity/directions/504/ . 
264 See Federal Law No.  527-FZ of 27 December 2018 on Amendments to Articles 46 and 54 of the 
Federal Law on Communications; and Government Resolution No.  665 of 27 May 2019 on Amendments to the 
Rules for the Provision of Telephone Services.  
265 Ministry of Digital Development, Communications, and Mass Media. Viewed at: 
https://digital.gov.ru/ru/activity/directions/978/ . 
266 The National  Programme was approved by the minutes of the meeting of the Presidium of the Council 
under the President of the Russian  Federation for Strategic Development and National Projects No.  7 of 
4 June 2019. It aims to: (i)  increase overall spending for the deve lopment of the digital economy; (ii)  create a 
sustainable and secure information and telecommunications infrastructure that is accessible; and 
(iii) significantly increase the share of domestic software purchased or leased by state bodies, as well as local  
governments and organizations.  
267 Government Decree No.  313 of 15 April 2014 on Approval of the State Programme on the 
Russian  Federation Information Society (2011 -20). The State Programme was later renamed to "Information 
Society".  
268 The new version of t he State Programme on Information Society was approved on 31 March 2020 
(Government Decree No.  386-20 on Amendments to the State Programme on Information Society).  
269 These federal projects are Information Infrastructure, Information Security, Human Resourc es for 
the Digital Economy, Artificial Intelligence, Digital Technologies, and Digital Public Administration.  
270 The State Programme was amended 25 times between 2016 and June 2021, most recently on 
31 March 2021. According to the State Programme document a t the time of writing, the four subprogrammes 
were: (i)  Information and Telecommunications Infrastructure of the Information Society and Services Rendered 
on Its Basis, with the objective of "creation of a global competitive infrastructure for data transmi ssion, 
including on the basis of domestic developments, provision of high -quality and affordable communication 
services and access to the information and telecommunications network 'Internet'"; (ii)  Information WT/TPR/S/416  • Russian Federation  
- 140 - 
4.161.   In 2018, the Government adopted the Action Plan (Road Map) to Promote Compe tition in 
the Russian Economy and Transform Certain Areas of Natural Monopolies into a Competitive Market 
Mode for 2018 -20, which also aims to increase competition in the provision of telecom services.271 
It aims to ensure technological neutrality for the d evelopment of innovative telecommunications 
infrastructure, 80% of cities with more than 20,000 inhabitants will be served by at least 
three  telecom operators, and the elimination of roaming charges within the Russian  Federation. 
Products such as computers  require the pre -installation of Russian software, including browsers and 
search engines, but do not prevent the pre -installation of other foreign software.272 
4.162.   As part of its accession to the WTO, the Russian  Federation committed to the telecom 
reference pa per. It also committed to no limitations on national treatment for cross -border supply, 
consumption abroad, or commercial presence for the provision of telecom services, other than a 
domestic incorporation requirement. The Russian  Federation retained horiz ontal limitations on the 
movement of people and national treatment for the granting of subsidies.  
4.3.2.4   Developments in 5G  
4.163.   Government support of the development of 5G technology is outlined in a roadmap to 
implement 5G by 2024, which was developed by the state -owned companies Rostelecom and 
Rostec.273 The Government plans to provide 28.9 billion RUB  of support until 2024 under the 
three  areas of the Action Plan: (i)  develop production of high -tech telecommunications products for 
5G/IMT -2020, including serial produ ction; (ii)  develop 5G/IMT -2020 communication network 
infrastructure and radio frequency support; and (iii)  develop a market for services and services 
provided using 5G/IMT -2020 technologies. The roadmap also targets a minimum percentage of the 
share of do mestic equipment in the infrastructure of commercial communication networks of 70% 
by 2030 (indicator 7.4 of the roadmap).  
4.164.   The f our facilities -based mobile network operators (see above) agreed in 2019 to jointly 
deploy 5G networks to reduce cost and optimi ze frequency usage. In December 2020 , the Federal 
Antimonopoly Service (FAS) approved the proposal that had raised questions regarding potential 
anti-competitive effects on non -participating competitors, requiring the operators to agree with the 
FAS on the  terms of infrastructure and frequency -sharing, and the conditions for providing 
infrastructure for MVNOs.274 
4.3.2.5   Other policy changes affecting telecommunications and postal services  
4.165.   Amendments to the Federal Law No. 126-FZ in 2016 (in the context of new anti -terrorism 
measures introduced) require communications service providers and Internet -based data 
distributors to store information regarding message transmission (including actual content of voice 
data, written texts, images, sounds, videos, or other messag es) for between six months and 
three  years, and to share information (including decryption methods) with the authorities when 
requested without a court order. Amendments to Federal Law No.  149-FZ undertaken over the 
reporting period also require the owners  of electronic messenger services to register, locally maintain 
 
Environment, with the objective of "developme nt of the information environment and ensuring equal access of 
the population to the media environment"; (iii)  Security in the Information Society, with the objective of 
"prevention of threats arising in the information society"; and (iv)  Information State , with the objective of 
"ensuring the execution of the powers of state authorities and local self -government bodies, carried out in 
electronic form, including the provision of state, municipal and socially significant services to citizens and 
organizations  (implementation of functions), as well as increasing the efficiency of public administration, 
interaction of state (municipal) authorities, citizens and businesses through the use of information and 
telecommunications technologies".  
271 Government Directiv e No.  1697-r of 16 August 2018. Viewed at: 
https://docs.cntd.ru/document/550968940?marker=6560IO . It builds on the Executive Order of the President 
of the Russian  Federation No.  618 of 2 1 December 2018, which can be viewed at: 
http://en.fas.gov.ru/documents/documentdetails.html?id=15342 . 
272 This issue has been raised multiple times since the October 2020 meeting o f the Committee on Trade 
in Services.  
273 Total funding to the Roadmap for the Development of the High -Tech Area: "Mobile Communication 
Networks of the Fifth Generation" for the Period up to 2024 is estimated at RUB  208 billion, primarily from 
non-budgetary resources. Viewed at: https://legalacts.ru/doc/pasport -dorozhnoi -karty-razvitija -
vysokotekhnologichnoi -oblasti -mobilnye -seti-svjazi/. 
274 FAS, FAS Russia Agreed the Application of Communications Operators on Creation 5G Joint Venture , 
24 December 2020. Viewed at: http://en.fas.gov.ru/press -center/news/detail.h tml?id=55122 . WT/TPR/S/416  • Russian Federation  
- 141 - 
information on, and identify users via mobile phone numbers. Following 2017 amendments to 
Federal Law No.  149-FZ, virtual private network (VPN) operators are also required to prevent 
Russian u sers from accessing information that has been blocked by Russian authorities 
(Roskomnadzor ) due to inconsistency with existing legislation.  
4.166.   Since September  2015, personal data collected on Russian citizens has to be stored in the 
Russian  Federation according to Federal Law No.  152-FZ on Personal Data.275 Some processing, such 
as updating of records, also must take place in the Russian  Federation. According to  the authorities, 
it is permissible to keep information on parallel servers abroad if these servers are on a list of 
countries with adequate protection of personal data276 or following explicit approval of  
Roskomnadzor, the regulator. However, the primary e ntry has to be stored on servers in the territory 
of the Russian  Federation. These regulations are being monitored and enforced by Roskomnadzor, 
and penalties were increased in 2017.  
4.167.   With the aim of increasing the efficiency of supply of postal services, R ussian Post, the federal 
state unitary enterprise, was reorganized into a non -public joint -stock company of which the 
Government retains 100% ownership from 1 October 2018.277 The Government complemented these 
changes with Government Resolution No.  1429 of 15 September 2020 on Approval of the Rules for 
the Territorial Distribution of Post Offices of the JSC Russian Post. In November, the Ministry of 
Digital Development, Communications, and Mass Media amended the rules for the provision of postal 
services, wi th the objective of promoting the use of modern technologies in the supply of postal 
services, including in the areas of electronic payments, non -personal delivery of goods to packing 
stations, and confirmation of safe delivery.278 
4.3.3   Transport  
4.168.   In 2020, the sh are of transport in total GDP was 6.5% and 34.0%  of total services exports.279 
The transportation network covers the Russian  Federation's territory unevenly. The European part 
is dense and has a relatively modern infrastructure, while the remote Siberian or  Far East regions 
often lack regular connections and the infrastructure is not as developed. Because weather 
conditions make paved roads hard to maintain in extreme temperatures and rivers are oriented 
along the north -south axis, railroads have long been r esponsible for the most reliable traffic of goods 
and passengers. Since 2010, the Russian  Federation's infrastructure has been integrating with 
international transport corridors. Several projects are being implemented under the framework of 
the Europe -Western China transit route280 and the Euro -Asian Transport Links (EATL)281, as well as 
in the context of the Eurasian Economic Union (EAEU) and the Belt and Road Initiative.  
4.169.   The Russian  Federation has 87,600 km of railway line, of which 44,000 km  are electrified. 
There are over 1.5 million km of public roads, 101,600 km of inland waterways, about 7,500  km of 
 
275 These amendments were introduced by Federal Law No.  242 of 21 July 2014 on Amendments to 
Certain Legislative Acts of the Russian  Federation in Terms of Clarifying the Procedure for Processing Personal 
Data in Information and Telecommunicati ons Networks.  
276 As defined by Roskomnadzor . Countries include those party to the Council of Europe Convention 108, 
and some additional countries.  
277 Federal Law No.  171-FZ of 29 June 2018 on the Peculiarities of the Reorganization of the Federal 
State Unitary Enterprise Russian Post, the Fundamentals of the Activities of the Joint -Stock Company Russian 
Post, and on Amendments to Certain Legislative Ac ts of the Russian  Federation.  
278 Ministry of Digital Development, Communications, and Mass Media Order No.  602 of 
19 November  2020 on Amendments to the Rules for the Provision of Postal Services, Approved by Order of the 
Ministry of Communications and Mass Media No.  234 of 31 July 2014. Viewed at: 
https://digital.gov.ru/ru/documents/7398/#tdownloadblock .  
279 Data provided by the authorities.  
280 Wade Shepard, "Silk Road Breakthrough: Russia to Begin Construction on the China -Western Europe 
Transport Corridor", Forbes , 23 July 2019. Viewed at: 
https://www.forbes.com/sites/wadeshepard/2019/07/23/silk -road-breakthrough -russia -to-begin -construction -
on-the-china -western -europe -transport -corridor/ . 
281 The EATL project started in 2002 as a joint undertaking between the UN Economic Commission for 
Europe (UNECE) and the UN Economic and Social Commission for Asia and the Pacific (UNESCAP). It has 
identified main Euro -Asian road and rail routes for priority development and cooperation. The EATL aims to 
facilitate and remove physical and administrative bottlenecks when crossing borders in overland transport 
between Europe and Asia. UNECE, About Us . Viewed at: https://unece.org/about -us-31. WT/TPR/S/416  • Russian Federation  
- 142 - 
tram and trolleybus lines, 602 km of underground lines, 24  million tonnes of cargo handling capacity 
at seaports, and 241 airfields.282 Some k ey transport indicators are shown in Table  4.18. 
Table 4.18 Freight and passenger transport volumes, by type of transport, 2017 -20 
  2017  2018  2019  2020  
Passengers (million)   
Total 18,439  18,113  17,826  .. 
Automobile (bus)  11,185  10,912  10,637  7,399  
Underground  3,298  3,381  3,451  3,066  
Trolleybus  1,376  1,263  1,148  750 
Tram 1,327  1,259  1,240  901 
Railway  1,121  1,160  1,201  .. 
Air 108 118 131 .. 
Inland waterway  13 12 11 8 
Cargo transportation (million tonnes)  
Total 8,073  8,265  8,421  .. 
Automobile  5,404  5,544  5,735  .. 
Railway transport  1,384  1,411  1,399  .. 
Inland waterway  119 116 108 108 
Marine  26 23 19 24 
Air 1.3 1.3 1.3 1.3 
.. Not available.  
Source:  Data provided by the authorities.  
4.170.   The Ministry of Transport (MT) is responsible for all transport activities in the 
Russian  Federation. It carries out state policy, normative, and legal regulatory functions in the fields 
of: (i)  civil aviation, airspace management, and air nav igation services of the users of the 
Russian  Federation's airspace, aerospace search and rescue, and state registration of rights to 
aircraft; (ii)  maritime transport (including maritime ports), inland waterways, and operation and 
security of the shipping hydraulic structures; (iii)  rail transport; (iv)  road transport: automobile 
(including transport controls at crossing points on the state borders of the Russian  Federation), road 
management, and road traffic administration; and (v)  electricity: urban elect ricity (including the 
underground) and industrial transport.283 
4.171.   The Federal Service for Supervision of Transport (Rostransnadzor), under the MT, has 
several agencies or structural divisions according to the type of transport . In general, these  agencies 
are responsible for coordination between the territorial state supervision bodies on the 
implementation of their special licensing, control, and supervisory functions, as well as for control 
over the implementation of legislative and other regula tory legal acts to ensure safe, efficient, and 
sustainable functioning of transport. Each division is responsible for specific areas according to the 
type of transport: Goszheldornadzor (rail), Gosavtodornadzor (automobile), Gosmorrechnadzor ( sea 
and river), and Gosavianadzor ( air and airspace).  
4.172.   In 2019, as part of the improvement of control and supervisory activities, the Federal Service 
for Supervision of Transport carried out a set of activities to transition to a risk -based model of 
supervisory activities. A ccording to the authorities, this has increased the effectiveness and efficiency 
of supervisory activities and reduced the administrative burden. In collaboration with some regional 
groupings (e.g. the EAEU, the Shanghai Cooperation Organization, and the E conomic and Social 
Commission for Asia and the Pacific), modern digital technologies are being implemented, including 
intelligent transport systems, digital logistics, electronic information exchange, and document 
management systems.284 
4.173.   Transport Strategy 2 030, adopted in 2008 and revised in 2018, remains the main policy 
document for the sector. Among its most important goals are the creation of a competitive transport 
and logistic services market, and improved integration of the Russian  Federation into the global 
transport system. Transportation modernization and improvement goals are also set out in other 
 
282 Data provi ded by the authorities.  
283 Ministry of Transport . Viewed at: http://government.ru/en/department/68/events/.  
284 Ministry of Transport . Viewed at: http://government.ru/en/department/68/events/.  WT/TPR/S/416  • Russian Federation  
- 143 - 
strategic documents, notably in Presidential Decree No.  204 of 7 May 2018 on National Objectives 
and Strategic Tasks of the Russian  Federation's Developme nt in the Period up to 2024  (Section  2.2). 
According to the MT, implementation of the Safe and Quality Roads objective set out in that Decree 
will require RUB  2,618 billion, and the Development of the Transport Infrastructure objective is 
expected to requi re around RUB  6,348  billion. These amounts will come from federal and regional 
budgets, as well as extra -budgetary sources.285 Transport Strategy 2035 is under development.  
4.174.   In 2017, the average transportation distance for one tonne of cargo per mode of tran sport 
amounted to 1,977 km for rail, 46 km for road, and 567 km for inland water transportation. A key 
task for the Government is the creation of synergies between modes of transport through the 
implementation of strategic policies such as Presidential Dec ree No.  204.286 
4.175.   Transport plays an important role in the Government's import substitution policy  
(paragraph  4.30) . Some types of goods previously imported from neighbouring countries, over short 
distances, are now being transported from remote Russian regio ns where they are produced. The 
transport industry itself is also subject to changes related to import substitution; the 
Russian  Federation aims to increase its own production of components for several types of 
locomotives, airplanes, and road equipment an d is implementing relevant policies and financing 
schemes for this purpose ( Section 3.1.7 ). 
4.176.   The Treaty on the Eurasian Economic Union (EAEU Treaty) aims to create a common EAEU 
transport area by 2025.287 To this end, two action plans were adopted in 2017, w hich cover the 
period 2018 -20 and the implementation of which will create a basis for the removal of all existing 
restrictions.288 The relevant action plans for the implementation period 2021 -23 are currently being 
developed.  
4.177.   Under the GATS, the Russian  Federation undertook various commitments on transport 
services.289 
4.3.3.1   Rail transport  
4.178.   The railway system remains the key mode of transportation, and it is among the top three 
in the world in terms of use for freight purposes and in terms of length. In 2020, the share of rail 
transport in the total volume of cargo turnover was 47.2% (87.0%) excluding pipeline, while the 
share of rail transport in the total volume of cargo loading was 15.9% (18.4% excluding pipeline). 
The railway system is  divided into 17 regional railways, from the October Railway serving the 
St. Petersburg region to the Far Eastern Railway serving Vladivostok, with the free -standing 
Kaliningrad and Sakhalin Railways on either end. Coal, coke , and ferrous metals make up most of 
the freight rail vol umes. Railroads are often key to getting supplies shipped to remote parts of the 
country, as many people do not have access to other reliable means of transportation.290 
4.179.   Rail transport policy is being implemented under two main documents: Government Decree 
No. 384 of 18  May 2001 on a Programme for Structural Reform of Railway Transport; and 
Government Order No.  877 of 17  June 2008 on the Strategy for Railway Development in the 
Russian  Federation to 2030. The former focuses on restructuring the railways from a government -
owned monopoly to the private competitive sector, while the latter is an ambitious plan for 
equipment modernization and network expansion.291 
4.180.   Federal Law No.  147-FZ of 17 August 1995 on Natural Monopolies (as amended) enumerates 
railway transpo rtation among natural monopolies. The activities and goals of the state -owned 
Russian Railways (RZD) are set up in the Strategy for Railway Development in the 
Russian  Federation to 2030. The RZD has a monopoly in the provision of rail infrastructure and is  by 
 
285 Ministry of Transport . Viewed at: http://government.ru/en/department/68/events/ . 
286 Ministry of Transport . Viewed at: http://government.ru/en/department/68/events/ . 
287 EAEU Treaty, Section XXI and Annex 24, Protocol on the Coordinated Transport Policy of the Member 
States.  
288 WTO document WT/REG358/1, 13 July 2018 , paras  4.120 -4.123.  
289 WTO document WT/TPR/S/345/Rev.1, 6 December 2016.  
290 Ministry of Transport . Viewed at: http://government.ru/en/department/68/events/ . 
291 Some of the key goals set by the 203 0 strategy are increasing the railway density by 24% and the 
average route speed of long -distance passenger trains almost by 20% to 72 km/hour on the basic directions.  WT/TPR/S/416  • Russian Federation  
- 144 - 
far the major player in the provision of locomotive traction services.292 Nonetheless, the regulatory 
framework gives third -party operators (not carriers) the legal right to access such infrastructure on 
a non -discriminatory basis.293 The total share of the Union of Railway Transport Operators member 
companies is 71.2% of the fleet of freight railway cars (856,500 cars) registered in the 
Russian  Federation, while the share of freight cars by type is gondola cars at 48.0%, tank cars at 
21.0%, platforms at 12.0%, hoppers at 9.0%, and covered cars at 5.0%. According to the 
authorities, because of the relatively low wear and tear of the rolling stock fleet due to the large 
number of car purchases in previous years294, the need for its renewal is limited.  
4.181.   A key problem facing rail transport is ageing track and equipment. On 26 March 2020, a new 
plan was outlined to upgrade and expand the domestic railroad network over 15 years. It aims to 
ensure that regions are better integrated with both one another and with th e international rail 
networks connecting East and West (between China and Europe) and North and South (the Republic 
of Iran, the Middle East, and South Asia). That requires both upgrading the roadbeds and 
constructing new rail lines to cut the length of ti me to move freight and thus make Russian routes 
more attractive to foreign business.295 According to the authorities, the plan is not yet approved.  
4.182.   Railway services tariffs are regulated by the Government, and the RZD's main tariffs for the 
domestic movement of freight (infrastructure, locomotive traction, and wagons) fall under the 2003 
Price List No.  10-01 (excluding transit). The Price List disting uishes three broad classes of 
commodities and determines individual tariffs in each group, considering the haulage distance, 
shipment size, and related charges. The tariffs are uniform and mandatory for all users of the RZD's 
services. The FAS approves ame ndments to railway transport tariffs. The rates in the Price List are 
based on the average network costs on the federal railways.296 Tariff conditions for transit freight 
transportation on the RZD are established by the Organization for Cooperation of Railw ays (OSJD or 
OSShD).297 Information is available on the RZD's official website.298 
4.183.   The RZD receives subsidies and grants from the federal and regional governments for, 
inter alia, compensation of the effects of tariff regulation, capital repairs, and acquisi tion of assets. 
In 2017, state support for the RZD from the budgets of various levels amounted to RUB  98.4 billion, 
including RUB  96 billion from the federal budget. Direct support amounted to RUB  37.8 billion. In 
2017, the amount of monetary contributions  to the RZD's authorized capital was RUB  60.6 billion, 
while the RZD received state support from regional budgets and extra -budgetary funds of 
RUB 2.4 billion.299 
4.184.   The EAEU Treaty stipulates the following objectives in the field of rail transport300: 
(i) establishing a common market; (ii)  ensuring that consumers of member States have access to 
rail transport services in the territory of each member State on terms no less favourable than for 
consumers of that member State; (iii)  maintaining the balance between the economic interests of 
consumers of rail services and the interests of rail transport organizations of the member States; 
(iv) enabling access of rail transport organizations of one member State to the domestic market of 
 
292 On 18 September 2003, the RZD was established by Government Decree No.  585. The RZD st arted 
operation on 1  October  2003. It was created as the first stage of the railway sector reform in accordance with 
Government Resolution No.  384 of 18  May 2001. RZD, The Company . Viewed at: https://eng.rzd.ru/en /9498 . 
293 Federal Law No.  17-FZ of 10 January 2003 on Railway Transport and Federal Law No.  18-FZ of 
10 January 2003 on Charter of Railway Transport (as amended).  
294 Data provided by the authorities . 
295 Paul Goble, "Domestic and Foreign Challenges Prompt Mosc ow to Announce Unrealistically Ambitious 
Railway Plan", Eurasia Daily Monitor , 16 April 2020. Viewed at: https:/ /jamestown.org/program/domestic -and-
foreign -challenges -prompt -moscow -to-announce -unrealistically -ambitious -railway -plan/. 
296 Federal Customs Service (FCS) Order No.  396-t/1 of 18 December 2012 on Amendments and 
Additions to the Provision of the FCS.  
297 The Organization for Cooperation of Railways coordinates rail transport between Europe and Asia. It 
has helped develop cooperation between railway companies and with other international organizations – for 
example, a working group on container trains betwe en China and Europe. The group is represented by 
seven  countries  – Belarus, China, Germany, Kazakhstan, Mongolia, Poland, and the Russian  Federation. The 
interaction provides for the creation of optimal conditions for the development of a Euro -Asian transp ortation 
network, including forming a modern digital environment, increasing traffic speed, and making joint 
commitments to improve technological, tariff, and legal conditions.  
298 RZD. Viewed at: https://eng.rzd.ru/ . 
299 Data provided by the authorities.  
300 EAEU Treaty, Annex 24, para.  18. WT/TPR/S/416  • Russian Federation  
- 145 - 
rail transport services of anoth er member State; and (v)  enabling access of carriers to infrastructure 
services of member States.301 
4.3.3.2   Road transport  
4.185.   There are some 1.6 million km of roads in the Russian  Federation, most of which are paved, 
while t he total length of the high -speed road sections and highways is 6,654 km.  Given the 
Russian  Federation's vast area, this is a relatively small figure and the lack of high -speed roads 
coupled with poor -quality routes represents an important drain on the economy.302 Road 
construction is financed f rom the federal budget, the budgets of the constituent entities of the 
Russian  Federation, and funds from extra -budgetary sources, while the construction of toll roads is 
carried out through public -private partnerships.  
4.186.   In 2019, a new federal programme was  outlined for the development of a high -speed road 
network.  The state -owned company Russian Highways, commonly referred to as Avtodor, is directly 
responsible for the implementation of the programme that will run until 2030. According to the 
authorities, h owever, this programme is not yet approved.  
4.187.   Road transport policy is implemented under various documents. Federal Law No.  259-FZ of 
8 November 2007 on Charter of Road Transport and Urban Land Electric Transport and Government 
Decree No.  272 of 15 April 201 1 on Approval of the Rules for the Road Freight Transport regulate 
road transport. Federal Law No.  362-FZ of 11 November 2014 on Amendments to the Law on State 
Monitoring of International Road Transport and Liability for Violation of the Order of Execution  and 
the Code on Administrative Offences of the Russian  Federation in Connection with the Improvement 
of the Public Monitoring of Implementation of International Road Transport provides for increased 
efficiency in monitoring international road transportati on. Federal Law No.  220-FZ of 13 July 2015 
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 regulates, inter alia, the organization of regular carriage of passengers and 
luggage by road and urban ground electric transport, and also regulates the establishment, change, 
and cancellation of regular transport routes.303 
4.188.   Transport companies autonomously set the rates t hey charge for road transport.304 
Government Decree No.  1616 of 7 October 2020 on the Regulation on Licensing the Transportation 
of Passengers and Other Persons by Buses establishes licensing requirements for the transportation 
of passengers and other perso ns by buses, including in international traffic, based on the 
requirements for the safety of passenger transportation. Government Decree No.  1588 of 1  October 
2020 establishes the conditions for the admission of a Russian carrier to international road tran sport. 
According to Russian legislation, legal entities, individuals, and vehicles registered in the 
Russian  Federation have the right to carry out internal transportation of goods by road on the 
territory of the Russian  Federation.  
4.189.   Annex 24 to the EAEU Tr eaty requires that international carriage of goods by road performed 
by carriers registered in the territory of a member State be carried out on a permit -free basis: 
(i) between the member State of registration of such carriers and another member State; (i i) in 
transit through the territory of other member States; and (iii)  between other member States. The 
programme provided for in Annex 24 to the EAEU Treaty envisages the gradual liberalization of 
cabotage in four stages from 2016 -25.305 
 
301 Regarding this last item, the EAEU Treaty sets forth a procedure for regulating access to rail 
transport services, including the tariff policy framework.  
302 Around one third of the Russia n Federation's roads are carrying higher traffic volumes than they 
were designed for. World Highways, Russia New Programme for Developing High -speed Roads , 
14 January  2019. Viewed at: https://www.worldhighways.com/feature/russia -new-programme -developing -
high-speed -roads . 
303 Ministry of Transport . Viewed at: http://government.ru/en/department/68/e vents/ . 
304 The road freight transport rate for one tonne/km depends on several factors, including region, 
distance, load, type of carrier, truck brand (Russian or foreign), special requirements (cooling, security), size of 
the service provider, type of cont ract (short - or long -term), and insurance. Ministry of Transport . Viewed at: 
http://government.ru/en/department/68/events/ . 
305 See WTO document WT/REG358/1, 13 July 2018, Table 4.4 for a description of the different stages 
of this programme.  WT/TPR/S/416  • Russian Federation  
- 146 - 
4.3.3.3   Maritime transport  
4.190.   The Federal Agency for Maritime and River Transport (Rosmorrechflot), under the MT, is 
entrusted to manage state property, maintain transport security -related tasks, and provide services 
in the field of maritime and inland waterway transport.306 
4.191.   Port manage ment remains based on Federal Law No.  261-FZ of 8 November 2007 o n Sea 
Ports in the Russian  Federation and the Merchant Marine Code, according to which port management 
is carried out by the Seaport Administration. 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, and services for seaport users. The administration founders' 
functions and authorities are carried out by  the Federal Agency of Sea and River Transport.  
4.192.   Federal Law No.  147-FZ of 17 August 1995 on Natural Monopolies (as amended) enumerates 
ports and services related to the use of infrastructure of internal waterways  among natural 
monopolies . Prices on the list of services of natural monopolies in seaports and river ports, and of 
the use of infrastructure of internal waterways, are regulated by the State, in accordance with 
Government Resolution No.  293 of 23 April 2008 on State Regulation of  Prices (Rates, Charges) on 
Services of Subjects of Natural Monopolies in Transport Terminals, Ports, the Airports and Services 
in Use of Infrastructure of Inland Waterways (as amended on 27 December 2019).  
4.193.   According to the authorities, Government Decree N o. 778 of 10 August 2016 on 
Amendments to Government Decree No.  193 of 6 March 2012 simplified licensing requirements and 
conditions for passenger transportation, transportation of dangerous goods, towing, and freight 
operations for dangerous goods on sea and internal water transport.  
4.3.3.4   Air transport  
4.194.   The Federal Air Transport Agency (Rosaviatsiya), under the MT, oversees air transport. It is 
responsible for: (i)  the rendering of governmental services and managing governmental property in 
the sphere of air transport (civil aviation); (ii)  control of Russian airspace; (iii)  air navigation services 
within Russian airspace; (iv)  aeronautical search and rescue; (v)  air transport security; and 
(vi) government certification of aircraft ownership rights and related  transactions.307 
4.195.   The main law governing air transport is the Air Code, Federal Law No.  60-FZ of 
19 March  1997 (as amended on 27 December 2019). Federal Law No.  88-FZ of 1  April 2020 on 
Amendments to Articles 83 and 84 of the Air Code was adopted to optimiz e the costs of ensuring 
the protection of airports and their infrastructure facilities . It also provides transport security units 
with the right to carry out the protection of airports in the manner established by the Government.308 
4.196.   According to Federal L aw No. 270-FZ of 2 August 2019 on Amendments to the Law on 
Transport Security and to Certain Legislative Acts of the Russian  Federation, categorization 
procedures, vulnerability assessment, development of transport security plans, and air transport 
vehicles are excluded from the provisions of the legislation on transport security.309 
4.197.   During the review period, new requirements for guaranteeing transport security were 
issued310, which allow applying a differentiated approach to ensuring security of transport 
infrastructure facilities based on their functional purpose and operational characteristics. In addition, 
 
306 Federal Agency for Maritime and River Transport, About Rosmorrechflot . Viewed at: 
http://eng.morflot.ru/ . 
307 Russian Aviation, Federal Air Transport Agency ( Rosaviatsiya) . Viewed at: 
http://www.ruaviation.com/dir/info/6/?h . 
308 Russian Aviation, Federal Air Transport Agency (Rosaviatsiya) . Viewed at: 
http://www.ruaviation.com/dir/info/6/?h . 
309 Russian Aviation, Federal Air Transport Agency (Rosaviatsiya) . Viewed at: 
http://www.ruaviation.com/dir/info/6/?h . 
310 Government Decree No.  1603 of 5 October 2 020 on Approval of Requirements for Ensuring Transport 
Security Including Requirements for Anti -terrorist Protection of Facilities (Territories) Taking into Account the 
Security Levels for Objects of the Transport Infrastructure of Air Transport that Are N ot Subject to 
Categorization; Government Decree No.  1605 of 5 October 2020 on Approval of Requirements for Ensuring 
Transport Security Including Requirements for Anti -terrorist Protection of Facilities (Territories) Taking into 
Account Security Levels for Various Categories of Objects of Air Transport Infrastructure.  WT/TPR/S/416  • Russian Federation  
- 147 - 
the following legislation changes have been adopted with respect to air transport services: the 
procedure for providing services to passengers with disabi lities at airports and in aircraft311; approval 
of the form of an electronic consignment note in civil aviation312; rules for conducting pre -flight and 
post-flight inspections in terms of regulating the transportation of donor material313; general rules 
for air carriage of passengers, baggage, and cargo; and requirements for serving passengers, 
consignors, and consignees in terms of baggage transportation.314 
4.198.   In 2017, the Russian  Federation joined the Convention for the Unification of Certain Rules 
for Internat ional Carriage by Air, aimed at integrating the national transport system into the 
international transport and logistics system.315 
4.199.   During the review period, the Russian  Federation signed air services agreements with 
Cambodia (2015), Morocco (2016), and the  Lao People's Democratic Republic (2017). The 
Russian  Federation has over 200 bilateral and regional air services agreements in force. In general, 
the agreements cover almost identical commitments between parties regarding: (i)  the 
establishment of the rig hts of air carriers to use contractual lines; (ii)  the establishment of 
non-discriminatory conditions for the usage of contractual lines with transparent tariffs; (iii)  the 
recognition of certificates; (iv)  the transparency of legislation affecting air car riers; (v)  simplified 
customs control and the absence of customs duties for transit goods; (vi)  dispute settlement 
between parties; and (vii)  compliance with international agreements. These agreements are also 
comparable with respect to the freedoms covere d. 
4.200.   Aeroflot Group is the Russian  Federation's largest airline group and ranks among the top 20 
globally by passenger numbers. In 2019, the Group had a 41.3% market share in the 
Russian  Federation and carried more than 60.7 million passengers, 37.2 million of whom flew with 
Aeroflot -Russian Airlines, the Group's flagship carrier.316 The Russian  Federation owns a 51.17% 
stake in PJSC  Aeroflot through the Federal Agency for State Property Management. The Group's free 
float is 40.9%, which is held by institutional and retail investors.317 
4.201.   The EAEU Treaty provides for coordination by member States to ensure a common approach 
to the applic ation of International Civil Aviation Organization (ICAO) standards and recommended 
practices. It also lays down certain principles for the gradual establishment of a common market of 
air transport services, including harmonization of legislation, fair and  honest competition, 
non-discriminatory access of aviation companies of the member States to the aviation infrastructure, 
and expansion of air services between the member States.318 
 
311 Federal Law No.  52-FZ of 3 April 2017 on the Accession of the Russian  Federation to the Convention 
for the Unification of Certain Rules for International Carriage by Air.  
312 Ministry of Transp ort Order No.  300 of 10 August 2018 on Approval of the Form of an Electronic 
Consignment Note in Civil Aviation.  
313 Ministry of Transport Order No.  120 of 30 March 2018 on Amendments to the Rules for Conducting 
Pre-Flight and Post -Flight Inspections Approve d by Ministry of Transport Order No.  104 of 25  July 2007.  
314 Ministry of Transport Order No.  409 on Amendments to the Federal Aviation Regulations on General 
Rules for Air Carriage of Passengers, Baggage, Cargo and Requirements for Serving Passengers, Consi gnors, 
Consignees in Terms of Baggage Transportation. Approved by Ministry of Transport Order No.  82 of 
5 October  2017.  
315 Russian Aviation, Federal Air Transport Agency (Rosaviatsiya) . 
316 Aeroflot Group includes Aeroflot -Russian Airlines, Rossiya (a mid -market carrier), Aurora (a regional 
carrier in the Russian Far East), and Pobeda (a low -cost carrier). Aeroflot -Russian Airlines operates one of the 
youngest fleets of any global carrier, operating more than 100 aircraft, with an average aircraft age of 5 yea rs 
(7 years for all Aeroflot Group carriers). As of the end of 2019, the Group fleet comprised 359 planes, 245 of 
which are operated by Aeroflot -Russian Airlines. In 2019, the Group served more than 340 regular destinations 
in 57 countries. Aeroflot -Russia n Airlines is member of the SkyTeam Alliance. Aeroflot, About Aeroflot . Viewed 
at: https://ir.aeroflot.com/en/company -overview/about -aeroflot/ . 
317 Aeroflot's shares are traded on the Moscow Exchange and internationally as Global Depositary 
Receipts in Frankfurt. Aeroflot -Russian Airlines, About Aeroflot . Viewed at: https://ir.aeroflot.com/en/company -
overview/about -aeroflot/ . 
318 EAEU Treaty, Annex 24, paras.  10-14; and WTO document WT/REG358/1, 13 July 2018, para.  4.125.  WT/TPR/S/416  • Russian Federation  
- 148 - 
5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and major chapter subheading, 2016 -20 
HS section/chapter/subheading  2016  2017  2018  2019  2020  
Total exports (USD billion)  285.3  357.7  449.5  424.1  336.6  
 
(% of total)  
01 Live animals and products  1.2 1.2 1.1 1.3 1.8 
HS 03 Fish and crustaceans, molluscs and other aquatic 
invertebrates  1.1 1.0 1.0 1.1 1.4 
02 Vegetable products  2.5 2.6 2.7 2.4 3.9 
HS 10 Cereals  2.0 2.1 2.3 1.9 3.0 
HS 1001 Wheat and meslin  1.5 1.6 1.9 1.5 2.4 
HS 1003 Barley  0.1 0.2 0.2 0.2 0.3 
03 Fats and oils  0.8 0.8 0.6 0.8 1.3 
04 Prepared food, beverages and tobacco  1.5 1.3 1.1 1.3 1.9 
05 Mineral products  59.3 60.4 64.9 63.4 51.4 
HS 27 Mineral fuels  58.2 59.3 63.9 62.1 49.8 
HS 2709 Petroleum oil, crude.  25.8 26.1 28.7 28.8 21.6 
HS 2710 Petroleum oils and oils obtained from 
bituminous minerals, other than crude  16.2 16.3 17.4 15.8 13.5 
HS 2711 Petroleum gases and other gaseous 
hydrocarbons  12.4 12.1 12.6 12.1 10.0 
HS 2701 Coal; briquettes, ovoids  and similar solid fuels 
manufactured from coal  3.1 3.8 3.8 3.8 3.7 
06 Chemicals and products thereof  4.9 4.6 4.3 4.6 4.8 
HS 31 Fertilizers  2.3 2.0 1.8 2.0 2.1 
07 Plastics and rubber  1.7 1.7 1.4 1.4 1.9 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.1 0.1 0.1 0.0 0.0 
09 Wood, cork, straw  2.3 2.2 2.0 2.0 2.5 
HS 44 Wood and articles of wood; wood charcoal  2.3 2.2 2.0 2.0 2.5 
10 Pulp of wood; paper and paperboard  1.1 1.1 1.1 1.0 1.2 
11 Textiles and textile articles  0.2 0.3 0.2 0.3 0.4 
12 Footwear, headgear, etc.  0.1 0.1 0.1 0.1 0.1 
13 Articles of stone, plaster, cement  0.4 0.4 0.4 0.4 0.5 
14 Precious stones and metals, pearls  3.1 3.1 2.2 3.6 9.0 
15 Base metals and articles thereof  10.1 10.4 9.7 8.9 10.4 
HS 72 Iron and steel  4.9 5.3 5.2 4.3 4.8 
16 Machinery, electrical equipment  3.8 3.6 3.1 3.5 3.8 
HS 84 Machinery and mechanical appliances; parts thereof  2.4 2.4 2.0 2.1 2.5 
17 Transport equipment  2.0 2.0 1.5 1.7 2.5 
18 Precision instruments  0.5 0.5 0.4 0.4 0.5 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.1 
20 Miscellaneous manufactured articles  0.3 0.3 0.2 0.3 0.4 
21 Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 
Other  4.1 3.5 2.7 2.7 2.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  WT/TPR/S/416  • Russian Federation  
- 149 - 
Table A1. 2 Merchandise exports by destination, 2016 -20 
  2016  2017  2018  2019  2020  
Total exports (USD billion)  285.3  357.7  449.5  424.1  336.6   
(% of total)  
Americas  5.3 4.9 4.8 4.8 4.7 
United  States  3.3 3.0 2.8 3.1 3.3 
Other America  2.0 1.9 2.0 1.7 1.5 
Europe  54.6 53.9 54.1 53.2 49.0 
EU-27 43.4 42.2 43.5 41.6 33.8 
Netherlands  10.3 10.0 9.7 10.6 7.4 
Germany  7.5 7.2 7.6 6.6 5.5 
Italy 4.2 3.9 3.6 3.4 3.0 
Poland  3.2 3.3 3.7 3.0 2.8 
Finland  2.3 2.4 2.5 2.4 2.1 
Belgium  2.0 1.9 2.0 1.6 1.7 
France  1.7 1.6 1.7 1.5 1.4 
EFTA 1.3 1.3 1.3 1.5 1.2 
Other Europe  9.9 10.4 9.4 10.1 14.0 
United Kingdom  2.4 2.4 2.2 3.1 6.9 
Turkey  4.8 5.2 4.7 5.0 4.7 
Ukraine  2.2 2.2 2.1 1.6 1.9 
CISa 11.1 11.4 10.3 11.4 12.8 
Belarus  4.9 5.2 4.9 4.9 4.7 
Kazakhstan  3.3 3.5 2.9 3.4 4.2 
Uzbekistan  0.7 0.7 0.7 0.9 1.4 
Africa  4.0 4.1 3.9 3.3 3.5 
Middle East  2.6 2.5 2.0 2.0 2.7 
Asia 22.4 23.1 24.9 25.2 27.1 
China  9.8 10.9 12.5 13.5 14.6 
Japan  3.3 2.9 2.8 2.7 2.7 
Other Asia  9.3 9.3 9.7 9.0 9.8 
Korea, Republic of  3.5 3.4 4.0 3.9 3.7 
India 1.9 1.8 1.7 1.7 1.7 
Other  0.1 0.1 0.1 0.1 0.1 
Memorandum:       
EU-28 45.8 44.6 45.6 44.7 40.7 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities.  
  WT/TPR/S/416  • Russian Federation  
- 150 - 
Table A1. 3 Merchandise imports by HS section and major chapter subheadings, 2016 -20 
HS Sections/chapters/subheadings  2016  2017  2018  2019  2020  
Total imports (USD billion)  181.8  227.0  238.3  244.1  231.1   
(% of total)  
01 Live animals and products  3.3 3.2 2.8 2.9 2.7 
HS 04 Dairy produce  1.2 1.2 1.0 1.2 1.3 
02 Vegetable products  5.1 4.8 4.8 4.5 5.0 
HS 08 Edible fruit and nuts  2.1 2.1 2.1 2.1 2.4 
03 Fats and oils  0.6 0.5 0.6 0.5 0.6 
04 Prepared food, beverages and tobacco  4.7 4.2 4.4 4.3 4.5 
HS 22 Beverages, spirits and vinegar  1.0 1.1 1.1 1.2 1.2 
05 Mineral products  1.8 2.0 2.1 2.1 1.9 
06 Chemicals and products thereof  12.8 12.3 12.5 13.9 12.7 
HS 30 Pharmaceutical products  4.9 4.8 4.4 5.8 4.7 
HS 29 Organic chemicals  1.5 1.5 1.7 1.8 2.0 
07 Plastics and rubber  5.7 5.5 5.7 5.7 5.6 
HS 39 Plastics and articles thereof  4.1 3.9 4.1 4.0 4.0 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.4 0.5 0.5 0.5 0.4 
09 Wood, cork, straw  0.4 0.3 0.3 0.3 0.3 
10 Pulp of wood; paper and paperboard  1.5 1.3 1.3 1.2 1.2 
11 Textiles and textile articles  4.7 4.5 4.7 4.7 5.0 
12 Footwear, headgear, etc.  1.4 1.5 1.5 1.5 1.3 
13 Articles of stone, plaster, cement  1.2 1.1 1.2 1.1 1.2 
14 Precious stones and metals, pearls  0.2 0.3 0.3 0.4 0.3 
15 Base metals and articles thereof  6.3 6.9 7.2 7.3 6.9 
HS 73 Articles of iron or steel  2.3 2.3 2.4 2.7 2.4 
HS 72 Iron and steel  1.7 2.1 2.2 2.1 1.6 
16 Machinery, electrical equipment  31.3 31.7 30.9 29.9 31.7 
HS 84 Machinery and mechanical appliances; parts thereof  19.5 20.0 18.3 17.7 18.7 
HS 8471 Automatic data processing machines and units 
thereof  2.1 2.2 2.5 2.3 2.7 
HS 8419 Machinery, plant or laboratory equipment  3.4 3.1 1.1 0.9 1.2 
HS 85 Electrical machinery and equipment and parts thereof  11.8 11.8 12.6 12.2 13.1 
HS 8517 Telephone sets  3.7 3.7 4.0 3.7 4.1 
17 Transport equipment  13.0 14.0 13.5 13.1 12.4 
HS 87 Vehicles  8.7 9.5 10.0 9.8 8.0 
HS 88 Aircraft, spacecraft, and parts thereof  2.8 2.9 2.6 2.1 3.2 
18 Precision instruments  3.0 2.9 3.0 3.2 3.7 
HS 90 Medical or surgical instruments and apparatus  2.8 2.7 2.8 3.0 3.5 
HS 9018 Instruments and appliances used in medical, 
surgical, dental or veterinary sciences  0.9 0.8 0.8 0.9 1.0 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  2.5 2.5 2.6 2.6 2.5 
21 Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 
Other  0.1 0.0 0.1 0.1 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  WT/TPR/S/416  • Russian Federation  
- 151 - 
Table A1. 4 Merchandise imports by origin, 2016 -20 
  2016  2017  2018  2019  2020  
Total imports (USD billion)  181.8  227.0  238.3  244.1  231.1   
(% of total)  
Americas  10.2 9.7 9.1 9.1 9.2 
United  States  6.0 5.6 5.3 5.5 5.7 
Other America  4.2 4.1 3.8 3.6 3.5 
Europe  43.9 43.8 43.5 42.4 41.3 
EU-27 36.4 36.3 35.7 34.6 33.9 
Germany  10.7 10.7 10.7 10.3 10.1 
Italy 4.3 4.5 4.4 4.5 4.4 
France  4.7 4.2 4.0 3.5 3.5 
Poland  2.2 2.2 2.2 2.1 2.1 
Netherlands  1.7 1.7 1.6 1.6 1.6 
Czech  Republic  1.5 1.5 1.6 1.5 1.6 
Spain  1.4 1.4 1.4 1.4 1.3 
EFTA 1.5 1.3 1.3 1.4 1.4 
Other Europe  6.0 6.2 6.5 6.4 6.0 
Turkey  1.2 1.5 1.8 2.0 2.2 
Ukraine  2.1 2.2 2.3 2.0 1.6 
United Kingdom  1.9 1.8 1.7 1.7 1.5 
CISa 8.6 9.0 9.0 9.4 9.4 
Belarus  5.2 5.3 5.2 5.4 5.4 
Kazakhstan  2.0 2.2 2.2 2.3 2.2 
Africa  1.3 1.2 1.2 1.2 1.1 
Middle East  0.8 0.7 0.8 0.8 1.0 
Asia 35.2 35.6 36.3 37.1 37.9 
China  21.0 21.2 21.9 22.2 23.8 
Japan  3.7 3.4 3.7 3.7 3.1 
Other Asia  10.6 11.1 10.7 11.2 11.0 
Korea, Republic of  2.8 3.1 2.9 3.3 3.1 
Viet Nam 1.4 1.5 1.5 1.5 1.8 
India 1.3 1.3 1.4 1.6 1.5 
Other  0.0 0.0 0.0 0.0 0.0 
Memorandum:       
EU-28 38.3 38.1 37.4 36.3 35.4 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities.  
   WT/TPR/S/416  • Russian Federation  
- 152 - 
 
Table A1. 5 Trade in services by sector, 2016 -20 
(USD million)  
 Exports  Imports  Trade balance  
  2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 
Total  50,644  57,541  64,646  61,910  47,036  74,602  88,864  94,728  98,655  64,081  -23,959  -31,323  -30,082  -36,745  -17,045  
Manufacturing services 
on physical inputs 
owned by others  1,610  1,529  1,637  1,170  336 137 157 146 163 177 1,473  1,372  1,490  1,007  159 
Maintenance and repair 
services  1,543  1,800  1,599  1,900  1,666  1,559  1,780  2,008  1,949  1,735  -16 20 -409 -49 -69 
Transport  17,144  19,814  22,104  20,605  16,075  11,838  14,492  15,298  15,442  11,411  5,306  5,322  6,806  5,163  4,664  
Passenger services  5,035  5,993  7,144  6,274  2,107  3,702  4,526  4,520  4,459  1,660  1,333  1,467  2,624  1,815  447 
Freight services  5,889  7,090  7,729  7,002  8,208  5,574  6,786  7,369  7,681  6,943  314 304 360 -678 1,265  
Other transport services  6,220  6,731  7,231  7,329  5,759  2,562  3,180  3,409  3,303  2,808  3,658  3,551  3,821  4,026  2,952  
Sea transport  4,683  4,912  5,108  5,069  4,795  3,103  3,780  4,018  3,990  3,672  1,580  1,133  1,089  1,079  1,123  
Air transport  8,446  10,099  12,011  10,316  5,865  6,899  8,553  8,880  9,042  5,526  1,547  1,546  3,130  1,273  338 
Other transport, of 
which:  3,719  4,371  4,519  4,602  4,875  1,816  2,131  2,352  2,371  2,150  1,903  2,240  2,167  2,232  2,725  
Rail transport  971 955 864 1,239  1,597  837 945 1,000  1,146  900 134 11 -136 94 697 
Road transport  783 988 1,160  914 1,127  568 770 929 961 1,027  215 218 231 -48 100 
Pipeline transport  1,664  1,992  2,087  2,152  1,938  270 213 202 101 75 1,394  1,779  1,884  2,051  1,863  
Postal and courier 
services  296 431 467 619 540 19 28 48 40 62 276 403 420 579 478 
Travel  7,787  8,945  11,591  10,961  2,854  23,952  31,058  34,271  36,152  9,140  -16,165  -22,113  -22,679  -25,191  -6,286  
Construction  3,593  4,812  5,443  4,786  4,698  3,764  4,386  4,851  5,524  7,482  -171 425 593 -738 -2,784  
Insurance and pension 
services  384 330 512 373 421 969 1,205  1,005  1,069  1,016  -585 -876 -493 -696 -595 
Financial services  1,170  1,087  1,327  1,101  1,166  2,037  2,243  1,834  2,341  2,441  -867 -1,156  -506 -1,240  -1,275  
Charges for the use of 
intellectual property  548 733 876 1,014  1,164  4,997  5,980  6,288  6,866  6,809  -4,450  -5,247  -5,412  -5,852  -5,645  
Telecommunications, 
computer and 
information services  3,904  4,653  5,260  5,489  5,936  5,469  5,383  5,488  5,244  5,982  -1,565  -731 -228 246 -46 
Telecommunications 
services  1,147  1,111  1,072  853 723 1,947  1,539  1,486  1,162  968 -800 -428 -414 -309 -246 
Computer services  2,664  3,417  4,061  4,488  5,094  3,063  3,398  3,521  3,590  4,503  -399 19 540 899 591 
Information services  93 125 128 148 120 459 446 481 492 511 -366 -322 -353 -344 -391 
Other business services  11,716  12,467  12,689  12,994  11,548  17,348  19,322  20,398  21,012  15,431  -5,632  -6,855  -7,709  -8,018  -3,883  
Research and 
development services  395 430 419 439 437 164 129 173 156 123 230 301 246 282 314 
Professional and 
management consulting 
services, of which:  5,229  5,625  6,025  6,056  5,621  4,707  5,412  5,752  5,998  5,783  522 213 273 59 -163 
Business and 
management 
consulting and public 
relations services  1,573  1,499  1,434  1,563  1,394  2,098  2,333  2,202  2,024  1,762  -525 -834 -768 -461 -368 
Advertising, market 
research, and public 
opinion polling  2,876  3,296  3,705  3,614  3,340  1,778  2,279  2,655  3,098  3,082  1,098  1,017  1,051  516 258 
Technical, trade -related, 
and other business 
services  6,092  6,412  6,245  6,499  5,490  12,476  13,781  14,473  14,858  9,524  -6,384  -7,369  -8,229  -8,359  -4,034    WT/TPR/S/416  • Russian Federation  
- 153 - 
 
 Exports  Imports  Trade balance  
Operating leasing 
services  849 831 858 847 761 3,839  4,065  4,580  4,809  2,681  -2,990  -3,234  -3,722  -3,962  -1,920  
Architectural, 
engineering, and other 
technical services  3,101  3,194  2,675  3,076  2,595  4,712  5,900  5,730  5,917  3,231  -1,611  -2,705  -3,055  -2,841  -636 
Waste treatment and 
depollution, 
agricultural and 
mining services  612 671 737 699 601 2,345  2,162  2,457  2,318  2,152  -1,734  -1,491  -1,720  -1,618  -1,552  
Other business 
services  1,530  1,716  1,975  1,877  1,533  1,580  1,654  1,706  1,813  1,460  -50 62 269 63 73 
Personal, cultural, and 
recreational services  421 490 585 524 426 1,025  1,433  1,826  1,561  1,257  -603 -942 -1,241  -1,037  -831 
Government goods and 
services, not included 
elsewhere  825 883 1,023  993 746 1,508  1,424  1,316  1,331  1,200  -683 -542 -294 -338 -454 
Source:  Bank of Russia, External Sector Statistics . Viewed at: https://www.cbr.ru/eng/statistics/macro_itm/svs/ . 
 
 WT/TPR/S/416  • Russian Federation  
- 154 - 
Table A2. 1 Notifications by the Russian  Federation, June 2016 -August 2021  
Agreement  Requirement/content  Document symbol and date of notifications  
Agreement on Agriculture  
Articles 10 
and 18.2  Table ES:1 – Export subsidies  G/AG/N/RUS/10, 1  February  2016; G/AG/N/RUS/15, 
23 January  2017; G/AG/N/RUS/18, 29  January  2018; 
G/AG/N/RUS/22, 1  February  2019 
Article  16.2 NF:1 – LDCs and net food 
importing countries  G/AG/N/RUS/14, 22  June 2016; G/AG/N/RUS/17, 
18 May 2017; G/AG/N/RUS/20, 18  April 2018; 
G/AG/N/RUS/25, 5  November  2019; G/AG/N/RUS/28, 
12 May 2020; G/AG/N/RUS/33, 31  May 2021 
Article  18.2 Table DS:1 – Domestic support 
and appropriate supporting tables  G/AG/N/RUS/5/Rev.1, 29  January  2016; 
G/AG/N/RUS/13, 28  April 2016; G/AG/N/RUS/11, 
7 February 2017; G/AG/N/RUS/21, 22  May 2018; 
G/AG/N/RUS/24, 18  September  2019; 
G/AG/N/RUS/29, 20  July 2020; G/AG/N/RUS/34, 
1 June 2021  
Article  18.2 Table MA:1 – Administration of 
tariff quotas  G/AG/N/RUS/2/Rev.1, 1  September  2016; 
G/AG/N/RUS/31, 21  May 2021 
Article  18.2 Table DS:1 – Domestic support 
and appropriate supporting tables  G/AG/N/RUS/12, 2 6 April 2016; G/AG/N/RUS/16, 
15 March 2017; G/AG/N/RUS/19, 14  March  2018; 
G/AG/N/RUS/23, 12  March  2019; G/AG/N/RUS/27, 
3 April 2020; G/AG/N/RUS/32, 21  May 2021 
Agreement on Implementation of Article  VI of the GATT  1994 (Anti -Dumping)  
Article  16.4 Ad hoc  anti-dumping actions  G/ADP/N/281, 21  January  2016-G/ADP/N/355, 
11 May 2021  
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/350/RUS, 19  April 2021 
Article  18.5 Laws and regulations relevant to 
the Agreement  G/ADP/N/1/RUS/2, G/SCM/N/1/RUS/2, 
G/SG/N/1/RUS/2, 20  May 2016 
Agreement on Implementation of Article  VII of the GATT  1994 (Customs Valuation)  
Article  22 Legislation regarding customs 
valuation  G/VAL/N/1/RUS/4, 23  May 2019; G/VAL/N/1/RUS/5, 
16 October  2019 
Decision A.4  Valuation of carrier bearing 
software for data processing 
equipment  G/VAL/N/3/RUS/1/Rev.1, 5  May 2021 
Checklist of 
issues   G/VAL/N/2/RUS/2, 23  May 2019 
General Agreem ent on Trade in Services  
Article  III:3 Changes in regulation affecting 
trade in scheduled sectors  S/C/N/1000 -S/C/N/1002, 24  March  2020; 
S/C/N/1048, S/C/N/1049, 26  February  2021; 
S/C/N/1063, 21  July 2021; S/ENQ/78/Rev.19, 
29 August 2019; S/ENQ/78/Rev.21, 1 2 February  2021  
Article  V:7(a)  Economic integration agreements 
and their enlargement or 
modification  S/C/N/889, WT/REG385/N/1, 5  May 2017 
Article  VII:4 Existing or new Article  VII:1 
recognition measure  S/C/N/992 -S/C/N/999, 24  March  2020; S/C/N/1047, 
26 February  2021 
Agreement on Import Licensing Procedures  
Articles 1.4(a) 
and 8.2(b)  Rules and measures on import 
licensing and import quotas  G/LIC/N/1/RUS/12 -G/LIC/N/1/RUS/16, 
4 October  2016; G/LIC/N/1/RUS/12 -
G/LIC/N/1/RUS/16, 4  October 2016  
Articles 5.1 -
5.4 Notification of licensing 
procedures or changes  G/LIC/N/2/RUS/3, G/LIC/N/2/RUS/4, 9  August  2019 
Article  7.3 Replies to questionnaire on 
import licensing procedures  G/LIC/N/3/RUS/3 -G/LIC/N/3/RUS/5, 9  October  2019 
Agreement on Rules of Origin  
Paragraph 4 
of Annex II  Preferential rules of origin  G/RO/N/179, G/RO/LDC/N/RUS/2, 21  January  2019; 
G/RO/N/194, 18  February  2020 
Agreement on Safeguards  
Article  12.1(a)  Decision to initiate an 
investigation  G/SG/N/6/RUS/5, 20 September  2018-
G/SG/N/6/RUS/7, 21  March  2019 
Article  12.1(b)  Finding of serious injury or threat 
thereof caused by increased 
imports  G/SG/N/8/RUS/4, G/SG/N/10/RUS/4, 24  June 2019 
Article  12.1(c)  Decision to apply or extend a 
safeguard measure  G/SG/N/8 /RUS/4, G/SG/N/10/RUS/4, 24  June 2019 WT/TPR/S/416  • Russian Federation  
- 155 - 
Agreement  Requirement/content  Document symbol and date of notifications  
Article  12.5 
and 8.2  Notification of proposed 
suspension of concessions and 
other obligations referred to in 
Article  8.2 G/L/1241, G/SG/N/12/RUS/2, 22  May 2018; 
G/L/1304, G/SG/N/12/RUS/3, 2  April 2019 
Article  12.6 
(1) Notifications of laws and 
regulations under 18.5, 32.6, and 
12.6 of the Agreements  G/ADP/N/1/RUS/2, G/SCM/N/1/RUS/2, 
G/SG/N/1/RUS/2, 20  May 2016 
Termination  Notification of termination  G/SG/N/9/RUS/1, 6  May 2019; G/SG/N/9/RUS/2, 
17 January  2020 
Agreement on the Application 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/23 -G/SPS/N/RUS/234, 26  July 2021 
Agreement on Su bsidies and Countervailing Measures  
Article  25 New and full notification  G/SCM/N/284/RUS, 11  May 2016; 
G/SCM/N/315/RUS, 27  August  2018; 
G/SCM/N/343/RUS, 14  January  2020 
Article  25.11  Ad hoc  subsidies and 
countervailing actions  G/SCM/N/312, 13  December  2016 
Article  25.11  Semi-annual report on subsidies 
and countervailing duty actions  G/SCM/N/298/RUS, 18  April 2016; G/SCM/N/371, 
15 December  2020 
Article  32.6 Notification of laws and 
regulati ons G/ADP/N/1/RUS/2, G/SCM/N/1/RUS/2, 
G/SG/N/1/RUS/2, 20  May 2016 
Agreement on Technical Barriers to Trade (TBT)  
Article  2.10 Pharmaceutical products  G/TBT/N/RUS/50 -G/TBT/N/RUS/65, 20  May 2016 
Articles  2.10 
and 5.7  Coolants  G/TBT/N/RUS/81, 3  February  2017 
Article  2.9 Medicinal products  G/TBT/N/RUS/47 -G/TBT/N/RUS/120, 30  July 2021 
Articles  2.9 
and 5.6  Light rail transport  G/TBT/N/RUS/66 -G/TBT/N/RUS/88, 28  May 2018 
Article  5.7  Medical devices, hydraulic cement 
and cement  G/TBT/N/RUS/48 -G/TBT/N/RUS/64, 18  May 2016 
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Laws and regulations  IP/N/1/RUS/4, IP/N/1/RUS/G/1, 15  October  2019 
Agreement on Trade Facilitation  
Articles  1.4, 
10.4.3, 10.6.2 
and 12.2.2  Notification of Category 
commitments  G/TFA/N/RUS/1, 1 March 2019  
Enabling Clause  
 Notification of preferential trade 
agreements  WT/COMTD/PTA1/N/1, 16  July 2019 
Source:  WTO Secretariat. Notifications submitted between 1  June 2016 and 4  August  2021.  
  WT/TPR/S/416  • Russian Federation  
- 156 - 
Table A3. 1 Summary analysis of MFN tariff, 2021  
 
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  12,286  7.9 0-284.6  9.4 16.0 14.0 
HS 01 -24 3,140  12.7 0-284.6  16.1 5.5 33.0 
HS 25 -97 9,146  6.2 0-45.4 4.6 19.6 7.5 
By WTO category        
WTO agricultural products  2,685  13.4 0-138.8  16.4 7.7 37.3 
Animals and products thereof  538 29.7 0-138.8  28.1 10.4 65.4 
Dairy products  161 15.8 5-40 4.1 0.0 56.5 
Fruit, vegetables, and plants  569 8.5 0-20.4 3.5 4.4 15.3 
Coffee, tea, and cocoa and cocoa 
preparations  74 6.8 0-13 3.8 14.9 50.0 
Cereals and preparations  245 9.7 0-30 3.6 2.9 33.1 
Oils seeds, fats, oil and their 
products  200 7.6 0-36 5.7 15.5 14.0 
Sugars and confectionery  130 15.0 1.9-104.5  18.2 0.0 83.1 
Beverages, spirits and tobacco  458 11.2 0-115.1  9.1 5.7 43.9 
Cotton  6 0.0 0.0 0.0 100.0  0.0 
Other agricultural products, n.e.s.  304 4.6 0-11.8 2.5 14.8 5.3 
WTO non -agricultural 
products  9,601  6.3 0-284.6  5.4 18.3 7.5 
Fish and fishery products  605 7.3 0-284.6  12.0 2.6 6.3 
Minerals and metals  1,770  7.3 0-20 4.3 8.8 0.7 
Chemicals and photographic 
supplies  1,469  4.6 0-10 1.8 10.8 0.5 
Wood, pulp, paper and furniture  632 8.2 0-21.5 3.3 4.1 7.6 
Textiles  887 7.7 0-24.2 3.4 1.2 13.1 
Clothing  361 9.3 0.4-45.4 5.9 0.0 82.5 
Leather, rubber, footwear and 
travel goods  339 4.8 0-22.9 4.3 25.4 20.4 
Non-electric machinery  1,285  2.9 0-15 4.0 59.1 0.0 
Electric machinery  613 4.6 0-19.7 4.6 42.6 1.6 
Transport equipment  788 9.7 0-20 6.1 12.1 15.0 
Non-agricultural products, n.e.s.  774 6.9 0-20 5.0 24.0 0.1 
Petroleum  78 4.6 0-5 1.3 7.7 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing  783 6.0 0-30 3.7 13.3 7.3 
ISIC 2 - Mining and quarrying  130 4.4 0-15 2.8 20.0 0.0 
ISIC 3 - Manufacturing  11,372  8.0 0-284.6  9.7 16.2 14.6 
By stage of processing        
First stage of processing  1,445  6.0 0-30 3.6 11.6 7.3 
Semi-processed products  3,323  6.1 0-104.5  4.0 8.6 3.5 
Fully processed products  7,518  9.0 0-284.6  11.5 20.2 19.9 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas, and water are excluded 
(1 tariff line).  
Note:  Calculations are based on the UCT at the 10 -digit level, excluding in -quota rates. In cases of AVE 
unavailability, the ad valorem  component of compound and mixed rates is used.  
Source : WTO Secretariat calculations, based on data provided by the authorities and UN International Trade 
Centre Trade Map database.   WT/TPR/S/416  • Russian Federation  
- 157 - 
Table A3. 2 Supplies subject to 10% VAT, 2021  
 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 species;  
− seafood and fish products, except certai n gourmet types;  
− baby and diabetic foodstuffs; and  
− vegetables (including potatoes).  
2. Children's goods:  
− knitwear articles for newborn  babies and children of nursery, pre -school, junior and senior school 
age groups;  
− 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 scho ol 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; and  
− 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 pharmaceutical 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 embryos 
thereof  
Source:  Government Resolutions No.  41 of 23 January 2003, No.  688 of 15 September 2004, and No.  908 of 
31 December 2004.  
  WT/TPR/S/416  • Russian Federation  
- 158 - 
Table A3. 3 Supplies subject to 0% VAT, 2021  
 Description  
1.  Goods declared for export or under 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 State 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 normal operation of aircraft and maritime vessels  
5 Goods (works and services) for use by diplomatic missions and international organizations operating in the 
territory of the Russian  Federation  
6. Goods (works, services, and property rights) obtained by foreign partners of the International Olympic 
Committee in preparation for 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  Federation  
Source:  Tax Code, Article  164. 
  WT/TPR/S/416  • Russian Federation  
- 159 - 
Table A3. 4 Supplies exempt from VAT, 2021  
 Description  
1.  Essential and vital medical equipment  
2.  Prosthetic and orthopaedic items, raw materials and articles 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 persons with disabilities  
4.  Spectacles (except sunglasses), lenses and spectacle 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)  
6.  Unregistered 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 municipal 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 acc ordance with the legislation of the Russian  Federation 
on valuable objects of cultural and 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 passes, 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 articles and religious literature (in accordance with 
the list approved by the Government of the Russian  Federation as advised by religiou s organizations 
(associations), produced and sold by religious organizations (associations), organizations owned by 
religious organizations (associations), and companies whose charter (reserve) capital consists entirely 
of contributions from religious orga nizations (associations), as part of religious activities, except 
excisable goods and minerals, and the organization and holding 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, imported 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 as advised by Russian public organizations of persons with disabilities), works, or 
services (except brokers' and other intermediary services) produced and sold:  
- by public organizations of persons with disabilities (including those created as unions of public 
organizations of persons with disabilities), in which persons with disabilities and their lawful 
representatives constitute no less than 80% of the membership;  
- organizations whose charter capital consists entirely of contributions by the aforementioned 
public organizations of persons with disabilities, if the number of persons with disabilities 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 the aforementioned public organizations of 
persons with disabilities) created for educational, cultural, therapeutic, physical exercise and 
sport, scientific, informational and other social purposes, and to render legal and other 
assistance to persons with disabilities, or children with disabilities and their parents; and  
- health t reatment 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  WT/TPR/S/416  • Russian Federation  
- 160 - 
 Description  
19.  The sale of ore, concentrates and other industrial products containing precious metals, scrap and 
waste from precious 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 gems 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 
Russia n Federation (Bank of Russia) 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 Bank of Russia and banks, and of precious metals in ingots by the Bank of Russia and banks, 
provided that such ingots remain in one of the certified vaults (the State Vault of Valuables, the Vault 
of the Bank of Russia  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 produced (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 services 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 l abour, 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 state 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 outer space, as well as in the framework of 
agreements on spacecraft launch services, as per the list approved by the Government  
27.  Ferrous and non -ferrous scrap and waste  (implemented by Federal 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  
29.  Goods intended for official use of foreign diplomatic and similar representa tions, 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 currencies (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 Register  
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, co -insurance and reinsurance services for export credits and investments 
against entrepreneurial and/or political risks  
Source:  Tax Code, Articles 149 -150. 
 
__________  
 
 