RUSSIAN STATE SUPPORT TO ITALIAN COMPANIES

The prospect of entering the Russian market attracts thousands of Italian companies, but not all managers know what steps Russia is taking to make commerce more profitable and legally easier.

Georgiy Sherstobitov 19/07/2021

Why is the number of Italian companies on the Russian market increasing?

Going deeper into history, it can be noted that the trade relations between Italy and Russia have always been close. The Russian government also remembers this fact, noting the Italian colleagues as reliable partners, and trade and cooperation as a profitable prospect for both sides. Measures aimed to support the business and remove many restrictions that once took place, are opening up a new prospect for Italian companies to acquire a vast sales market not only in Russia, but also in the entire CIS, because cooperation with Russia also opens access to the markets of CIS countries.

Measures to support Italian companies in Russia

It sounds surprising, but in addition to the direct benefits from the development of new markets with a rich demand for the products of Italian manufacturers, companies with foreign capital have the right to enjoy many benefits and concessions from the government of the Russian Federation. The main condition is that the share of the authorized foreign capital does not exceed 49%. For this reason, the model of joint production of Russia and Italy is becoming increasingly popular.

What are the most significant advantages of such model of relationships?

• For government, such company is not foreign. This means that an Italian-Russian enterprise is also allowed to receive all the benefits which Russian companies have.
• Russia is interested in foreign investment, so such cooperation is reliable.
• Investments in small and medium-sized businesses are the most interesting for Russia. Companies founded by Italian citizens can receive the status of a small and medium-sized business entity, which subsequently guarantees state support.

Russia is also interested in importing from Italy. In order to facilitate the supplier's relationship with a foreign company, some export support centers were created, whose tasks include assistance in translations from a foreign language, filling out documentation and other procedures that facilitate trade between countries.

A new approach to foreign capital is gaining popularity, but not all foreign investors have managed to orient themselves and pay attention to the Russian market. This is your chance to to make a profitable investment at the dawn of warming economic relations between Russia and the West.