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Russian Federation

Progress and Reform Challenges

Russian Federation by Organisation for Economic Co-operation and Development
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Despite a wealth of investment opportunities, the Russian Federation has attracted relatively little foreign direct investment (FDI) and has experienced large-scale capital flight. This phenomenon results from sectoral restrictions on foreign investment and from important institutional factors which also affect domestic businesses.

Russia has made significant improvements in its business environment since the last decade, adopting laws to protect the property and other rights of investors, and establishing institutions needed for a market economy to function. Russia has also signed investment and double-taxation treaties with OECD members and other countries.

In 2001, the OECD published The Investment Environment in the Russian Federation: Laws, Policies and Institutions, in which it made proposals for building on these positive developments and further improving policies towards foreign investment.

The 2004 Investment Policy Review of the Russian Federation evaluates the progress made since the publication of the 2001 study and offers policy options designed to improve the investment environment further. These include relaxing remaining restrictions on FDI in several sectors of the economy, continuing efforts to simplify and make administrative procedures more transparent, and ensuring compliance with federal laws and regulations at sub-federal government levels.

This Review is part of the OECD's ongoing co-operation with non-member economies around the world.

Organisation for Economic Co-operation and Development; January 2004
112 pages; ISBN 9789264018518
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Title: Russian Federation
Author: Organisation for Economic Co-operation and Development
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