APPROVED
Chairman of the Executive Committee of the Foreign Investment Advisory Council in Russia

E.S. Nabiullina 

 _______________  2010  No.

REGULATIONS

Concerning the Rotation of Members
of the Foreign Investment Advisory Council in Russia

I. General provisions

1. The Regulations hereof, worked out in accordance with the Statute Concerning the Foreign Investment Advisory Council approved by Decree No. 1141 of the Government of the Russian Federation of 30 December 2009, determine the rules for forming the Foreign Investment Advisory Council (hereinafter, the “Advisory Council”) as well as those for forming the rotation group of the Executive Committee of the Advisory Council, and also the procedure of the group’s work.
2. The Advisory Council is formed (changed) after an examination of the applications submitted by foreign organizations investing in the Russian economy and by international and other organizations (hereinafter, “application”) and with regard to the activity of the Advisory Council’s foreign member organizations, apart from the case indicated in clause 11 of the Regulations hereof.
3.  The applications and the results of the activity carried on by the Advisory Council’s foreign member organizations are to be considered by the rotation group created under the Executive Committee of the Advisory Council (hereinafter, the “rotation group”).
4.  In this respect, the rotation group is to hold a meeting, if need be, but it should be held at least once a year. The group’s decisions on rotation are adopted by a two-thirds majority vote by its members present at the meeting. They are recorded in the minutes and signed by all members attending the meeting.
5. The signed minutes are submitted to the Chairman of the Executive Committee within two weeks. The rotation group’s decisions are recommendatory.
6. The membership of the Advisory Council and the list of foreign organizations whose heads participate in the Advisory Council’s activity are approved (changed) by the Chairman of the Executive Committee, and this is reported to the Chairman of the Advisory Council.
7. The rotation group is formed by decision of the Chairman of the Executive Committee of the Advisory Council. It should have at least nine members, five of whom are from the Russian part, and four, from the Advisory Council’s foreign member organizations. Those from the Russian part are the executive secretary of the Executive Committee of the Advisory Council and officials from the Ministry of Economic Development and the Ministry of Finance, and from the Staff of the Russian Government.
   The representatives of four of the Advisory Council’s member organizations form the foreign part of the group.
8. The rotation group’s members are approved by the Chairman of the Executive Committee of the Advisory Council.  

   II. Acceptance into the Advisory Council

9. Grounds for considering acceptance into the Advisory Council are the application submitted by the head of a parent foreign organization engaged in investment in the Russian economy as well as the head of an international or other organization taking part in the formation of a favorable investment climate and the promotion of investment processes in the Russian economy (hereinafter, the “organization”). The application, addressed to the Chairman of the Advisory Council, is to contain information on the organization’s activity in the Russian Federation as listed in the addendum to the Regulations hereof.
10. When considering the acceptance of an organization into the Advisory Council, the following is to be taken into account:
• conformity of the type of an organization’s activity to the priorities of development of the Russian economy as determined by the Concept of Long-term Social and Economic Development of the Russian Federation until 2020 and the principal lines of the Advisory Council’s activity;
  
• an organization’s investment activity in the Russian economy with regard to the indicators in the addendum to the Regulations hereof;
  
• the quality of an organization’s direct investments in the Russian economy;
  
• the number of workplaces created in the Russian Federation and the number of Russian employees engaged by an organization, inter alia, in the sphere of production.
  The membership of the Advisory Council is formed with regard to the following basic principles:
  
• balanced membership of the Advisory Council in respect of the country (region) to which its members belong;
  
• balanced membership of the Advisory Council with regard to the types of its members’ activity in respect of the priorities of the Russian economy’s development and the principal lines of the Advisory Council’s activity;
  
• an organization’s active participation in the undertakings of the Advisory Council’s working bodies.
  
11. The Chairman of the Executive Committee is entitled to make at his/her discretion the decision to accept an organization into the Advisory Council even without considering the requests by the rotation group.   
    
12. An organization’s management is to be notified of the organization’s acceptance into the Advisory Council.
    

    III. Exclusion from the Advisory Council

13. Grounds for considering an organization’s exclusion from the Advisory Council are the following:
    
    • the application of intent filed by the head of a parent organization to terminate participation in the Advisory Council’s activity;
      
    • termination or considerable reduction of investments in the Russian economy;
      
    • frequent absence without a good reason at the Advisory Council’s sessions by the head of a parent organization; 
      
    • an organization’s non-participation or inactive participation in the activity of the working bodies of the Advisory Council;
      
    • non-compliance of an organization’s activity to the principal lines of the Advisory Council’s activity;
      
    • a negative social or economic impact of an organization’s activity on the  Russian economy;
      
    • receipt of information on a foreign organization’s illegal activity;
      
    • provision of unreliable information by an organization on its activity in Russia.
      
14. When considering an organization’s exclusion from the Advisory Council, the rotation group is to analyze its activity in Russia.
    
15. An organization’s management is to be notified of the organization’s exclusion from the Advisory Council.   

ADDENDUM
to the Regulations Concerning
the Rotation of Members of the
Foreign Investment Advisory
Council in Russia

Information on an Organization’s Activity in the Russian Federation

1.  General description of an organization’s activity (including its capitalization and the total number of its employees).
2.  Total investments in the Russian economy, including the priority economic sectors determined by the Concept of Long-term Social and Economic Development of the Russian Federation until 2020 and the principal lines of the Advisory Council’s activity, and in the sphere of production (on a comparable basis, broken down by years and forms of investment activity for the entire period of activity and also for the last five years).
3. List of projects being implemented in the Russian Federation (a constituent entity of the Russian Federation, the timetables for the beginning and the end of projects, the amount of investments, and the participants in a project), and a list of expected projects.
4. Number of workplaces created in the Russian Federation and the number of Russian employees engaged by an organization, inter alia, in the sphere of production.
5. Extent of charitable activity by an organization in the Russian Federation (in the last three years).