Business asks to extend visas for foreigners: barriers for investors may collapse

“This will have a significant impact on filling the budget”

The business proposed that the authorities issue visas to foreign investors for three years. It will be available to those who have invested more than 100 million rubles in projects in Russia at the request of one of the country’s four business associations. Now you can get a visa for a maximum period of one year, but in fact you can stay in the country for no more than 90 days in each half-year. Is there a demand among investors from friendly countries to participate in projects in Russia? What other risks might they face? Experts told MK about this.

Anastasia Chumak, co-head of the investor rights protection practice at Intercession: “Of course, there is demand. However, it is far from the level before 2022. There are investors from China, India, CIS countries and Latin America. At the same time, many large investors have doubts about investing in the Russian economy. Large Chinese companies and companies from the CIS are afraid of secondary sanctions. And they do this for good reason. Medium-sized businesses in Asia, Latin America and the CIS have significantly lower risks. A three-year visa will make things easier for many investors, but we would not expect increased excitement due to this measure. The most obvious risk that foreign investors may face is secondary sanctions. This is what can happen to a foreign investor first. Economic uncertainty comes second. 2023 was extremely successful from a business point of view. Almost all sectors showed growth. But 2024 promises some slowdown. The risk of uncertainty stops foreign investors from making long-term investments. We can see this in the example of the Chinese automobile industry. Large manufacturers are in no hurry to build factories in the Russian Federation, preferring to sell equipment without localization. Meanwhile, the Russian economy needs foreign investors, like any other country that strives for development. Long-term visas will make it easier for current foreign investors to do business and may be able to attract some new ones.”

Private investor, founder of the “School of Practical Investment” Fedor Sidorov: “In general, investors from friendly countries have an interest in projects in the regions of the Russian Federation – and in the last year it has only intensified. Thus, the country has been running a program for issuing residence permits for investments in a simplified manner for a year now, and about 20 applications have already been received from foreigners – these investors are ready to invest a total of 1.2 billion rubles in the Russian economy. At the same time, few infrastructure projects can be fully implemented in a year. In addition, now a business visa is issued for a maximum of one year, but in fact you can stay in the country for no more than 90 days in each half-year. So the introduction of three-year visas will definitely increase the comfort of foreign investors. And taking into account that the authors of the initiative propose issuing such a visa to those who have invested at least 100 million rubles in Russian projects, this will significantly affect the filling of the budget.”

President of the National Coordination Center for International Business Cooperation Kirill Babaev: “For businessmen from China, India, Iran, and Arab countries, this is an excellent opportunity to come to Russia and start a new business here, investing in those niches that are now opening up after the departure of Western companies. For Russia, these countries are the main source of much-needed investment for the country and the driver of the “turn to the East” that is taking place today. We see that interest in the Russian market is very high, but barriers, including visa barriers, are holding it back. So this decision would be good news for the investment climate.”