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The European Standards of Human Rights and Public Justice in the Russian Federation - international conference

I was recently involved in planning and development of international conference – “The European Standards of Human Rights and Public Justice in the Russian Federation, innovation methods in the legal practice of the Kaliningrad region”, financed by Foreign and Commonwealth Office in Russia. Conference was held in November 27 - 28, 2008, hotel Heliopark Kaiserhof, Kaliningrad and attracted lawyers representing Supreme and Constitutional Courts of the Russian Federation, Russian Parliament, Human Rights Ombudsman of the Russian Federation, Russian Ministry of Foreign Affairs, Foreign Embassies, University of Nottingham Human Rights Law Centre, General Prosecutor Office, Federal and Regional Courts, Militias and Bar Associations. photo

Open Dialogue - a training programme for lawyers from the Kaliningrad region of Russia

Last year I finished management of the second stage of the programme “Open Dialogue” – a training programme for lawyers from the Kaliningrad region of Russia in European human rights standards. In December 17 - 23, 2007 Russian delegation visited the University of Nottingham Human Rights Law Centre and met representatives of the British criminal justice system, including the Magistrates Court and Crown Court, Crown Prosecution Service, Barristers, Victim and Witness Protection and the Police. photo

The first stage of the programme was previously successfully completed in Kaliningrad, supported by Foreign and Commonwealth Office in Russia, Global Opportunity Fund Sustainable Development Programme and provided an intensive training from March - June 2007. It consisted of a number of seminar courses, organized by the Kaliningrad Resource Informational Analytical Centre (RIAC), providing human rights training for practicing lawyers representing the Courts of General Jurisdiction, Military Courts, Militias and Bar Associations on European standards of human rights. .....›

Opportunities for Russian lawyers/Возможности сотрудничества для российских юристов                                                                                         

Click HERE for full information/Нажмите ЗДЕСЬ для получения полной информации      

Could Russia Feed The World?      

August 01, 2008, Alex Rossi (Sky News) - Economists believe Russia may provide the answer to shortages of food around the world and prevent famines over the next decade.

In an area known as the 'Black Earth Belt' a farming revolution is underway.

Investors from Russia and abroad are buying up huge chunks of land. The farms are simply massive. They make large farms in the UK look more like allotments.

A group of British investors have bought into the new land rush.

Heartland Farms now has 75,000 acres in its portfolio. About half of that is being cultivated - the rest is being cleared for use. Heartland Farms currently grows sugar beet, potatoes, barley, wheat and rapeseed.

The opportunities, though, are endless, according to operations director Colin Hinchley.

"You have such a large land mass that is underutilised. There are some very good Russian farms but the bigger areas are really not at the production levels they could be. That requires investment and management. But the potential to feed Europe and a large part of the world is here." .....›

US legal system 'worse than Russia'

March 18, 2008 (The Times) - A survey shows that European in-house lawyers would rather face litigation in China and Russia than in America

Fear of the American legal system has created an atmosphere in which lawyers working for European businesses would prefer to face a major dispute in Russia or China than the US, a study has revealed.

A survey of 180 in-house counsel working in five European countries identified the US as the jurisdiction they were keenest to avoid, with 29 per cent naming it the country they were most concerned about facing a major dispute in.

The US attracted almost twice as many votes as Russia and China. Despite fears of political interference and corruption in their legal processes, both were named by just 16 per cent of in-house counsel as their most feared jurisdiction. .....›

KD Avia commits to 25 Airbus A320 Family aircraft

May 29,  2008 (Airbus) - KD Avia, a fast growing Russian airline, has placed a commitment with Airbus for the purchase of 25 A319s, thus becoming a new Airbus customer. The agreement was signed at the International Berlin Airshow taking place from 27th May to 1st June. 

KD Avia’s A319s will feature a spacious and comfortable cabin layout. The aircraft will be operated on the airline’s extended network of domestic and international routes out of its Kaliningrad hub. The choice of engines has not yet been made.

The A319 is a member of Airbus award-winning A320 family, which also includes the A318, the A320 and A321. Each aircraft features fly by wire controls and all share a unique cockpit and operational commonality across the range. With proven reliability and extended servicing periods, the A320 Family has the lowest operating costs of any single aisle aircraft. In addition, the latest new cabin design saves on weight and offers the passenger a quieter and roomier experience as well as significantly larger overhead stowage lockers. Uniquely, the A320 Family offers a containerized cargo system, which is compatible with the world wide standard wide-body system. .....›

Moscow Signs EU - Russia Visa Facilitation Agreement

Moscow, March 10, 2007 (The Presidential Press and Information Office) -- Vladimir Putin signed the Federal law that ratifies the Agreement between the Russian Federation and the European Union on simplifying visa procedures for Russian and EU citizens.

The Federal law ratifies the Agreement Between the Russian Federation and the European Union on Simplifying Visa Procedures for Citizens of the Russian Federation and the European Union member states, except Great Britain, Denmark and Ireland.

The Agreement provides for simplifying the visa regime and procedures for issuing single-entry visas valid for a period of up to three months, as well as issuing multiple-entry visas for certain categories of citizens.

In particular, the simplified regime will apply to: members of official delegations; entrepreneurs and representatives of commercial organisations; drivers and transport personnel engaged in international transport; journalists; members of cultural, academic and educational communities; family members, students and school children; participants in international sporting events; and a number of other categories of citizens.

In addition, the Agreement will harmonise visa fees and clearly lay out the time frame required for obtaining visas.

The Agreement is designed to develop and enhance contacts between the citizens of the Russian Federation and those of the European Union.            

Download full text of the Agreement < MS Word    

Sony Sets Up TV Production in Russia’s Westernmost Region

A factory in Kaliningrad will start producing Sony’s LCDs this year. With the annual output of 300,000 televisions a year, the Baltmikst plant hopes to secure a no less lucrative contract with Panasonic. The presence of these global players is most likely to cut prices on LCDs in Russia.   

    
The contract for the television production at Baltmikst, operated by Advantage Group, was signed earlier this year, Vitaly Dakhnenko, director general of Advantage Group, told Kommersant. The factory plans to produce 200,000 televisions this year to increase the number to 300,000 annually in 2008 and further on. Baltmikst hopes to sell Kaliningrad-produced Sony LCDs for $160 million this year.


Advantage Group invests in real estate development and electronics production and also manages the Baltmikst factory. The group’s founder and owner Mikhail Pechersky is a former vice-president at
Alfa Bank. Baltmikst currently produces electronics for Philips, JVC, Daewoo, Sanyo and Elenberg. It has the capacity of 1 million tube televisions, 600,000 LCD and plasma televisions and 1 million DVD players.
.....›
 

Putin signs decree for new system of foreigners employment

Moscow, December 29, 2006 (Prime-Tass) -- Russian President Vladimir Putin has signed a decree that clears the way for a new system of foreign workers employment in the country, the presidential press service said Friday.

The decree invalidates previous presidential decrees regulating employment of foreigners in Russia effective January 15, 2007.

The new system of employing foreign workers is outlined by the government ruling dated November 15. The ruling, which takes effect on January 15, 2007, introduces a quota of 6 million work permits in 2007 for immigrants from countries that have visa-free travel agreements with Russia.

Those countries include Belarus, Ukraine, Moldova, Azerbaijan, Armenia, Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan. Previously there was no quota for immigrants from these countries. Most immigrants working in Russia are not legally registered, but employers are rarely prosecuted for hiring illegal immigrants.

In the same ruling the Russian government set a separate quota of 40% of total staff for any foreign employees working in street markets for January-March 2007 and a zero quota starting from April 1, 2007. The government also banned the employment of foreign nationals by retailers of alcoholic beverages and pharmaceutical products starting from January 1, 2007.

On November 11 the government set a quota of 308,842 work permits for 2007 for citizens of countries that do not have visa-free agreements with Russia, down 6% compared with the single quota for all foreign countries for this year.

The move was initiated by Putin, who called for an overhaul of immigration laws.

Legal comments:     HERE                Law in Russian in the information section

Kaliningrad erases stains of  past

October 16, 2006 (BBC), During Soviet times Kaliningrad was a closed military zone, and after the fall of the USSR the exclave suffered one of the worst economic collapses anywhere in Russia. But things are quietly changing in Russia's smallest region, because Kaliningrad is experiencing an economic boom - and Moscow has declared it will turn the region into "the Russian Hong Kong".

With average GDP growth of more than 10% in the last few years, Kaliningrad is growing faster than any other region in Russia, even outstripping the success of its EU neighbours. There are building sites everywhere putting up new homes and office blocks. Designer shops line the streets of the city centre, and the region now has more cars per head than Moscow.

The reason for all this prosperity is that Moscow has designated Kaliningrad a Special Economic Zone (SEZ). Manufacturers based here get tax and customs duty breaks on the goods they send back to Russia. That policy means the region is now a manufacturing hub. One in three televisions in Russia is made in Kaliningrad, and it is home to car plants making Hummers and BMWs. .....›

Russia's GAZ Group buys 100% stake in UK van maker LDV

Moscow, July 31 (RIA Novosti) - Russian auto manufacturer GAZ Group has acquired a 100% stake in LDV, a British van manufacturer, the company said Monday. The shares were bought from Sun Capital, a U.S. fund. Birmingham-based LDV, formerly Leyland DAF Vans Limited, produces about 15,000 vehicles a year. GAZ Group was established in 2005, after RusPromAvto restructured its production assets.  Based in the central Russian city of Niznhy Novgorod, GAZ supplies vehicles to 29 countries in the former Soviet Union, Eastern Europe, Southeast Asia, Africa, Latin America, and the Middle East. GAZ produces about 200,000 vehicles a year.

Gazprom buys UK gas firm Pennine Natural Gas

June 23, 2006 (BBC), Russian gas monopoly Gazprom has confirmed its intention to enter the UK market by buying small Cheshire-based company Pennine Natural Gas (PNG). PNG is a gas distribution business. Although it employs just 12 people, it supplies a number of leading UK firms including Debenhams. No details have been released about how much the deal is worth. The takeover comes two months after state-run Gazprom expressed an interest in buying British Gas owner Centrica. .....›

World Pay Report: Emerging Economies come first in new International Pay Stakes

July 17, 2006. New research from global management consultancy Hay Group reveals a new pay world order, with so-called “second world” or "emerging" economies in Asia, Eastern and Southern Europe, overtaking developed Western countries as the world’s new pay hotspots.

Hay Group’s World Pay Report, compiled using Hay Group PayNet®, one of the world’s most comprehensive pay databases, compares detailed salary, bonus, tax and cost-of-living information at senior management (departmental head) level, in order to reveal real executive pay levels for 29 countries across the world.

Eastern and Southern Europe dominate the new world pay map, with Russia’s senior managers third in the pay stakes, enjoying salary buying power equivalent to €77,400, and Poland’s senior managers sixth, with salary buying power equivalent to €76,300 when tax and cost of living are taken into consideration. Click HERE for full article.

BNG secures Russian contract

Sunday Express, June 25, 2006. Robin Pagnamenta.

BRITISH Nuclear Group (BNG) has landed a contract to oversee security at nuclear sites in the former Soviet Union. BNG will be responsible for guarding nuclear materials, training staff and improving physical protection and access at a range of sites across the region. The initial work will focus on a nuclear plant in Moscow and two sites in Obninsk, approximately 200km south-west of the Russian capital. Much of the work will be carried out by Russian subcontractors who have been security cleared by the Russian authorities.

The contract, which runs until 2012, was awarded to BNG by the UK's Department of Trade & Industry.The DTI plays a key role in a G8 global partnership set up to address the nuclear legacies of he former Soviet Union. BNG said the contract would represent a major chunk of the DTI's £32.5million annual budget for the programme.

"Throughout the world there is a growing awareness of the need to safeguard sensitive nuclear sites," said BNG project manager John Hunt. "I am confident we have the expertise and international credibility to ensure the success of this vital project."

EU - Russia visa agreement will be in force from January 1, 2007

Moscow, May 23 (RIA Novosti) - Russia wants visa facilitation and readmission agreements due to be signed this week with the European Union to come into force from January 1 next year, a presidential aide said Tuesday.  Sergei Yastrzhembsky, President Vladimir Putin's pointman on relations with the EU, said: "We hope that by the end of this year the agreements will be ratified, and that our European partners will also ratify them. From January 1, 2007, we want the agreements to be in force." .....›

British monument to Russian glory

MOSCOW. (RIA Novosti political commentator Alexander Yurov) - Lendalfoot is a tiny village in Western Scotland off the coast of the Irish Sea. Few people in Russia have heard of it. But a monument to the legendary Russian cruiser Varyag was inaugurated there on July 30, the day of the Russian Navy. The cruiser was sold for scrap after the October revolution. But she was not destined to disappear forever. When the Varyag was being towed off the Scottish coast in 1920, she ran aground, and in 1925 sank for good in the Irish Sea less than half a mile from Lendalfoot (Ayrshire). As I am a former Russian naval officer it was very interesting news for me to hear. I think some British and Russian people will be interested to read that as well.  1.....› 2.....›

CEOs with Military Experience Outperform S&P 500 Index                             

Study from Korn/Ferry International Examines Link Between Military Experience and CEOs -

Los Angeles, June 16, 2006 – Companies led by CEOs with military experience have outperformed the S&P 500 Index over the past three, five and 10-year periods by as much as 20 percentage points, according to a study by Korn/Ferry International (NYSE:KFY), the premier global provider of executive search, outsourced recruiting and leadership development solutions.

Published by Korn/Ferry in cooperation with the Economist Intelligence Unit, “Military Experience & CEOs: Is There a Link?” also found that CEOs with military experience tend to last longer in the job.  CEOs with military experience have an average tenure of 7.2 years, while CEOs without military experience have an average tenure of 4.6 years. 

The study found that the 59 companies on the S&P 500 headed by CEOs with military experience provided an average annual shareholder return of 21.3% over the three-year period ending September 2005, versus 11.0% for the S&P 500 Index during the same time.  For a five-year period, the ex-military CEOs provided a 9.5% return while the Index provided a -10.7% return, and for a ten-year period, the ex-military CEOs provided a 12.2% return versus a 9.4% return for the S&P 500 Index. .....›

GM to assemble HUMMER H3 and four Chevrolet models for Russian market in Kaliningrad

KALININGRAD, April 5, 2006  (General Motors - Europe) - GM today celebrated the start of production and sales of the HUMMER H3 in Russia at a ceremony at the Avtotor plant in Kaliningrad, Russia. In addition, GM announced the start of pilot production of four Chevrolet models in Kaliningrad.
GM and Avtotor have been collaborating since June 2004, starting with production of Hummer H2. Currently, there are three GM brands being produced at Avtotor: Cadillac STS, CTS and SRX; Hummer H2 and H3; and the Chevrolet Tahoe and Trail Blazer. The four new Chevrolet models will be produced with SKD (semi-knock down) technology. In 2007, one core model will be produced as CKD (complete-knock down) which will include painting, welding and general assembly operations. “The overall approach in Kaliningrad is a positive move towards expanding our total GM operation in Russia”, said Warren P. Browne, Executive-in-Charge, GM Russia.....›

Kaliningrad: from Russian relic to Baltic boom town

Independent, 23 March 2006, Stephen Castle report.                                                           

Once famous for brutalist Soviet architecture and soaring Aids rates, this tiny enclave is emerging as Putin's answer to Hong Kong.

Once it was a home of philosophy, a European capital and a centre of Baltic prosperity. These days those who have heard of Kaliningrad associate it with drugs, prostitution and the Russian Aids epidemic.

Jutting out into the Baltic, the region of Kaliningrad is an accident of history, a part of Russia now literally cut off from the rest of the motherland by Lithuanian territory. But this small, Russian fifth column inside an expanding EU is mounting a surprise comeback. Buoyed by something of an economic boom, the region's extrovert, 42-year-old governor, Georgy Boos, has ambitious plans to turn the enclave into the Hong Kong of the Baltic. He also wants to transform the city once known as Königsberg into one of Europe's least likely tourist destinations......›

Trade infrastructure development in Russian regions

British London & Regional Properties (L&RP), the biggest European developer intends to build the shopping centres 40 000-80 000 m² in Russian cities of Belgorod, Yaroslavl’, Tula, Ryazan’ and Ivanovo with population less than 1 million people. In March of this year L&RP signed an agreement with Swedish Centrum Group which will be managing the shopping centres. The first one called Centrum Park Kaluga, a 30,000 m² regional shopping centre in Kaluga, 190 km from Moscow will be opened in the end of year 2007 and within consequent five years will be launched 5-7 more of such projects with total cost of $300 millions.

Inteko Invests in British Farming Equipment

Moscow's Inteko has bought a stake in the British agricultural harvesting and farming equipment manufacturer Shelbourne Reynolds and plans to start joint production in the Kaliningrad region, Inteko vice president Viktor Baturin said Friday, Vedomosti reported.

The size of the stake was not announced, but Baturin said that Inteko paid several million pounds for the stock, which entitles Inteko to "make any decisions in terms of organizing production in Russia," the paper said.

Keith Shelbourne, chairman of Shelbourne Reynolds, said Monday that he hoped to start the production of the Shelbourne Headers line of next-generation combines by the end of 2006. The machines pick grain from the standing crop rather than cutting grain with the straw, Shelbourne said. The joint venture will aim to produce several hundred machines per year, he said.    

The most complicated parts of the machinery will still be produced in Britain, while assembly will be in Russia, Shelbourne said. So far, production in Kaliningrad is planned for the Russian market, where Inteko would act as the British company's distributor, he said.

"We already manufacture in Mexico, Hungary and China. If Kaliningrad is successful, we would consider switching some production to Russia," he said. (The Moscow Times, Tuesday, January 17, 2006)

Sweden opens consulate-general in Kaliningrad

KALININGRAD, February 17 (Itar-Tass) - Sweden has opened its consulate-general in Kaliningrad on Friday. The opening ceremony was attended by Swedish Foreign Minister Laila Freivalds.

She emphasized that “cooperation with Russia is a priority for Sweden, and the opening of the consulate-general in Kaliningrad will help to boost relations between our countries, contacts between Swedish and Russian citizens as well as states of the Baltic region as a whole”.

According to Freivalds, “especially close contacts have developed between southern Sweden and the Kaliningrad Region over the past 15 years: more than ten cities have twinned relations, which is very important for strengthening mutual confidence”. The minister noted that Sweden renders financial support in implementing several major projects in the Russian westernmost region.

The fact that the consulate will issue Schengen visas for Russians, starting with March, lends special importance to the opening of the Swedish consulate-general in Kaliningrad, the first diplomatic mission of a state member of the Schengen union, the minister claimed.

There will be no need now for residents of the region to travel to Moscow or St. Petersburg where there are Swedish consulates. “It will be easier for Kaliningraders to visit Sweden. As a result, contacts between people and businessmen will be more intensive,” the minister stated.

However, according to an issued visa, it will be necessary to tour Schengen agreement countries, starting precisely with Sweden, the consulate specified to Tass. It is planned to issue annually between 5,000 and 8,000 visas. The cost and time of making out visas will be the same as for citizens of “hinterland” Russia: consular charges – 35 euros and about a week for waiting. Swedish Consulate-General in Kaliningrad

The Nordic Council of Ministers opens office in Kaliningrad

An agreement to open a new Nordic Council of Ministers' office in Kaliningrad was signed in Moscow on 22 December by the Council of Ministers and the Russian Federation. The Nordic Council of Ministers has had offices in the Baltic capitals since 1991 and in St. Petersburg since 1995. Co-operation with North-West Russia will now be taken a step further by greater involvement in Kaliningrad.                                                                                           

In collaboration with local bodies, the office will co-ordinate and implement the Council of Ministers' Russia Programme in Kaliningrad - in particular in relation to the Nordic Council of Ministers' new guidelines and programme for co-operation with North-West Russia. The Nordic Council of Ministers' exchange and networking programme for civil servants, researchers, artists, politicians and business will be open to citizens of Kaliningrad.                                                                                                             

Co-operation projects will be launched involving local parties in Kaliningrad and partners in the Nordic Region. The Council of Ministers also envisages closer political co-operation with the local administration in Kaliningrad. The Nordic Council of Ministers has made co-operation with North-West Russia and the Baltic States one of its top priorities, a move reflected in the fact that it earmarks approximately 20% of the total annual budget for work in the area.          (Nordic Council)                                                          

Kaliningrad will become more transparent for Western investors

KALININGRAD, December 14 (GTRK "Kaliningrad) - Today, the regional development agency presented the "Virtual Integrated Service Center for Investors." The Center accumulates information about the development of industries across the districts of the oblast and investment projects. All data are structured across customer types and published in the respective sections of the Regional Development Agency web-site. The European Union has allocated Euro 3 million in the framework of the TACIS program to the build-up of this database. As yet, the Virtual Center contains information about only 7 districts of the oblast, however, already next year entrepreneurs will be able to familiarize themselves with investment programs of all municipalities.

British trade mission visits Russian exclave

KALININGRAD, November 7 (RIA Novosti-Northwest, Anatoly Nilov) - A British trade mission has begun a four-day visit to Kaliningrad, Russia's exclave on the Baltic Sea, the regional government press service said Monday.

"The Russian-British Chamber of Commerce, with the participation of the British Consulate General in St. Petersburg, under the auspices of the Kaliningrad region's government and city hall, has organized a trade mission of British businessmen to the region," a spokesman said.

He said the mission would provide an opportunity for British businessmen to familiarize themselves with Russia's northwestern region, noting that similar missions had been a success in other big Russian cities.

The businessmen represent companies that are members of the bilateral chamber of commerce, including Spirax Sarco, the world's leading supplier of pipeline controls and instrumentation for steam and other industrial fluids, and Russian-British joint venture LonMadi, which supplies construction equipment.

U.K. businessmen amazed by Britain's investment in Kaliningrad

KALININGRAD, November 8 (RIA Novosti-Northwest, Anatoly Nilov) - British businessmen are surprised at the share of British investment in the economy of the Kaliningrad region, Russia's exclave in the Baltic Sea, representatives of the Russian-British Commerce Chamber said Tuesday.                                                                                                               

Daniel Kearvell and Peter Langham, who head the British mission, told journalists referring to local Russian authorities that the UK's share was 13% of the total regional investment.

They said they intended to further contribute to developing British business in the region, like Spirax-Sarco, DLA Piper Rudnick Gray Cary and LonMadi.

British diplomas to be awarded at the Kant State University

KALININGRAD, November 17 (GTRK "Kaliningrad) - The Kant State University acted as the host of educators from Great Britain. The guests from the misty Albion wanted to personally prove the high standards of education at the leading higher education establishment of Kaliningrad. As a matter of fact, already next academic year the Kant State University is opening a new master program with participation of the Bristol University. Any graduate has the right to join the program. Within 18 months, students can improve their English and finally obtain diplomas of this prestigious European university.

Emerging market priorities for global Retailers

Every year, the retail landscape looks a little different. In 2005, consumer electronics, apparel and home-improvement companies are awakening to the global growth imperative. DIY retailer Kingfisher just opened in Russia, and The Home Depot set up shop in China. Next year, what format will appeal to what market?

The index not only provides an annual snapshot of how the opportunities in emerging markets stack up, but also offers insights into changing trends. A slight change in position from one year to the next may not seem significant, but over the course of a few years, we see just how important these subtle indicators can be. So when we report that India has overtaken Russia to take the lead spot this year, and that six of the top 10 most promising regions are in Eastern Europe, what does it mean? If Russia is the clear choice at number two this year, where was it five years ago? How important are country advances and declines on the index? Ukraine moved from number 11 to the number three spot in just one year. Surely there’s more than one reason for such a jump.... A.T. Kearney, Global Retail Development Index (GRDI), September 12

Russia to see investment boom

The World Bank forecasts an investment boom in Russia soon. “Investment activity, including foreign investment, appears to be picking up in the second half of 2005, and a genuine investment boom could be possible in Russia in the near future,” the bank said in its Russian Economic Report... RosBusinessConsulting, December 2

Why it is worth making investments in Kaliningrad

The Kaliningrad region is the most western region, separated from the mainland of the Russian Federation. Due to its geographical and political location, especially after Poland’s and Lithuania’s joining the EU, the Kaliningrad region is gaining a new challenge of extending and developing co-operation with the European countries in various fields, first and foremost, in economics. This site of Kaliningrad City Hall give you very useful  economic and legal information on investment environment in this region.

Russia banks on Governor's girl   

For a decade she had the ear of the Governor of the Bank of England; now she is one of the international faces of the increasingly authoritarian Russia of President Putin.

Liz George, whose father, Lord George, ran the Bank of England for ten years until 2003, is to be a news anchor for Russia Today, a controversial Kremlin-backed English language news channel that was launched last weekend...The Times, Jeremy Page, December 13

Amazing story of Russian who bought a great British name

IN the charmed world of Russia’s spectacularly rich tycoons, few walk on water with the ease of multi-billionaire Oleg Deripaska.

Yesterday he was in the Kremlin, advising President Putin about the bureaucratic obstacles to business in Russia.

But this week he came to the attention of this country – snapping up a piece of British industrial history, the van maker LDV.

Its roots go back to 1896, when the Lancashire Steam Motor Company was founded. The firm later became Leyland Daf before emerging with its present name. Daily Express, August 3 .....›

The Russians are coming

They may not be an Abramovich, says Mary Gold, but the rouble elite know how to get what they want. The trouble with being a Russian property-buyer is that everyone thinks you’re Roman Abramovich and whacks 10 per cent on the price. The Russians have woken up to this, and are becoming increasingly cunning when buying a home. Several agents in London have taken on Russian-speakers to make Russians feel more at home and to emphasise in their own language that they are not being ripped off... The Times

Oligarch of the Glen: Russia's second richest buys £7m estate

He is a gun-toting member of the super-rich Russian elite with a personal fortune of £5.4bn. Vladimir Lisin is also a former welder who has become his country's second-richest man with a place in President Putin's favoured circle.

But Scotland on Sunday can reveal today that the 49-year-old steel tycoon is also the new laird of Aberuchill Castle Estate, a prime slice of the Perthshire Highlands that he recently bought with £6.8m of "small change"... Scotland on Sunday, Jeremy Watson, December 11

Welcome to Londongrad

Armed with big wallets and bigger dreams, Russia's elite make the British capital their home away from home.... Forbes, Michael Freedman, May 23

Information      

Main Taxes Rates in Russia

Tax

Rate

Profits tax

24% of the profit – main rate

Simplified tax

6% (“revenue” base); 15% (“revenue less listed expenses” base)

Withholding Tax

 

Foreign legal entities are subject to a withholding tax

15% - dividends

20% - interest, royalties, rentals

10% - on income from freight and international transportation services rendered in Russia

VAT

18%, 10%, 0%

Property tax

2.2% of the annual average net book value of fixed assets

Excise tax

Determined by product

State duty for securities emission

0.2% of the nominal value of securities issue, but not more than 100,000 roubles (US$ 3,600)

State duty for using the Words “Russia”, “Russian Federation”

10,000 roubles (US$ 360)

Mineral Royalty tax

Depends of the minerals and deposits

Personal Income tax

Default rates – 13% for residents; 30% for non-residents; 35% prises

Unified Social tax

26% down to 2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paying taxes in Russia for foreign/British residents

When you come to live or work in Russia, the Russian tax you'll pay depends on whether you have “resident” or “non-resident” status over there. Residents and non-residents paying taxes in case they receive income from the sources on the territory of the Russian Federation. Foreign citizen can be a tax resident of the Russian Federation if he resides on the territory of the Russian Federation not less than 183 days of the calendar year. Tax rates for residents and not residents are different. 13 % is for income received by tax residents; and 30 % is for income received by tax non-residents on the territory of the Russian Federation. An individual who is a non-resident of the Russian Federation may be exempt from taxation by Russian tax authorities, provided that he introduces (forwards) to Russian tax authorities an official confirmation that he is a resident of the state that has double taxation treaty with the Russian Federation. Russia and U.K. has double taxation treaty from 1994 No. 3213. Thanks to that you can decide where you want to pay your taxes in Russia or in U.K.

Law "On the Legal Status of Foreign Citizens in the Russian Federation" (Russian language) /  Закон "О правовом положении иностранных граждан в Российской Федерации" (с изменениями на 18 июля 2006 года)                                      

Defines the legal status of foreigners in the Russian Federation, and regulates conditions of their entry into and exit from Russia. It regulates relations between foreigners and state and local authorities in connection with the foreigner's temporary or permanent stay in Russia, including those related to foreigners' employment, commercial and other activities in Russia. Download

Travel rights for non-EU national family members of EU/UK citizens within the European Union

Neither the UK nor other EU countries such as Lithuania, Estonia, Latvia, Poland, Hungary, Slovakia, Czech Republic, Ireland, Cyprus, Slovenia, and Malta are currently signatories of the Schengen agreement that means in order to travel to another EU country members of the family of an EU/UK citizen should be required to obtain a visa. Such visas, where they are necessary, should be granted free of charge, and without undue formalities. This facilitated system of obtaining a visa will apply to non-EU national family members, however, only when they travel with an EU citizen.  Download

Right of admission foreign/Russian spouse of a British national to the UK without the need to obtain entry clearance

In the case of a British national spouse/partner have been lawfully resident in the other EEA country before applying to enter the UK - it is not needed to obtain entry clearance. More detailed explanation of European law further.

Kaliningrad Visas                                                                             

Kaliningrad operates a special visa system which allows visas to be issued at the border on arrival, thus avoiding Russian embassies abroad and complicated visa forms.  The short-term tourist visas (for stays of up to 72 hours on the territory of Kaliningrad oblast only) to foreign tourists (citizens of countries of the Schengen Treaty, the United Kingdom, Japan) on requests of Kaliningrad tourist agencies, that are registered for consular services at the Representative Office of Russian Ministry of Foreign Affairsand have the right to issue short-term visas, but not later than 48 hours prior to a supposed entry of a foreign tourist.  Download 

Main Taxes and Duties Rates in the Kaliningrad region Download

Certificate of Origin in the Kaliningrad Special Economic Zone 

This is a new process of obtaining Kaliningrad certificate of origin in correspondence with "Decision of the Government of the Russian Federation No. 171 of March 30, 2006 on the Endorsement of the Rules of Use of Criteria of Enough Processing and Issue of Appropriate Certificates for the Products of Processing of Commodities Imported under the Customs Regime of Free Customs Zone Applied in the Kaliningrad Region". Document contains an application form and list of documents which is necessary to submit while application process to Kaliningrad Chamber of Commerce and Industry. Download

Russian import duties                                                                                               

Find out the import duty for your product is possible in the "Applied Tariffs Database" of free European Union Market Access Database

Law on the special economic zone in the Kaliningrad region.

The new Federal law "On the Special economic zone (SEZ) in the Kaliningrad region" came into force on 1 April 2006. Under that law the new zone will be operational for 25 years. In the first six years entities will be exempt from the profit tax 100%, and they will enjoy 50% discount in profit taxes for another six years. In addition, investors will be exempt from the tax on organizations’ property for the first six years of their projects. But this is only for investors who bring at least one hundred and fifty million rubles of investment. They won’t have to pay customs duties on commodities brought to Kaliningrad for production purposes, as long as the commodities keep within the regional limits. Visa formalities will be reduced for investors. Companies which are registered before the law came into force have a ten-year long transition period and can use the old privileges. Privileges for them means that goods, manufactured in the Special economic zone (the fact that is verified by the certificate on the goods origin) and exported to the other countries and the Russian Federation, are exempt from Customs duties and other charges while going through the Customs and being cleared (except the Customs fees for drawing up the Customs clearance papers). Download

On submission of an investment declaration for SEZ resident

According to the Law № 16-FL “On the Special economic zone in the Kaliningrad region which come into force on 1 April 2006 the Government of the Kaliningrad region has approved a special form of an investment declaration for SEZ resident.

Now, with coming into force of the new law on SEZ, applicants for inclusion in the Register of residents of the Special economic zone in the Kaliningrad region should prepare and submit the following documents:

·        an application in the free form, addressed to the Head of the Administration of Special economic zone (Minister of Economics of the Kaliningrad region  F.F.Lapin) on inclusion of the legal person into register;

·        copies of legal person’s foundation papers, certified by a notary;

·        a certified copy of the document, attesting that the legal person has been entered in the general State register of legal persons;

·        the certificate of registration by the tax authority;

·      the investment declaration page 1  page 2

·        the business - plan of investment project.

This package of documents can be sent by mail to the address: 236007, Kaliningrad, Dmitry Donskoy street 1 or be brought into the reception office of Ministry of Economics of the Kaliningrad region (within working day) office 428 (phone: 599 024).

Civil Code of the Russian Federation (Part One)

Part I of the Civil Code upholds such rights as the rights to own and inherit property; to engage in entrepreneurial activity; to establish independent legal entities; and the protection of intellectual property rights. Part I also defines concepts such as securities, contractual rights, and the power of attorney. Download

Civil Code of the Russian Federation (Part Two)

Part II of the Civil Code further expands on these new civil relationships, and contains provisions governing certain types of agreements and the rights to sign contracts, to rent property, to receive loans, and to be compensated for injury. Download

Map of Europe with the Baltic Sea Countries and Kaliningrad

to download the great map click here

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