MIFC

The agenda includes discussions of the International Financial Center Roadmap. Participants will debate the outlook for Russian financial market development, megaregulator KPIs, the role of SROs in the financial market, tax incentives for investors, and improved tax administration of financial transactions.

Participants include Head of the Central Bank Elvira Nabiullina, Chairman of the Supreme Arbitration Court Anton Ivanov, First Deputy Prime Minister Igor Shuvalov, Finance Minister Anton Siluanov, Minister for Economic Development Alexey Ulyukaev, Presidential Aide Andrey Belousov, Minister of the Interior Vladimir Kolokoltsev, Science and Education Minister Dmitry Livanov, Head of MIFC Taskforce Alexander Voloshin.

The initial MIFC development plan was passed in July 2009, with the current Roadmap enacted in June 2013.

As part of the Roadmap, Minfin has drafted Tax Code amendments geared to administer new taxation rules for securities and derivatives transactions, says the release. The document also introduces tax benefits for 3 year-plus owners of securities, similar to real estate (a maximum tax rebate on investment is RUB 3mn). The proposal was voiced by Siluanov a year ago, however the bill has not been introduced to the Duma so far. The Government press office does not specify if the document’s fate is to be decided at the meeting with the Prime Minister.

BANKS

Another meeting will be dedicated to boosting financial stability of Russia’s banking system, as well as deposit insurance system reform that has suffered twice in the recent months (Pushkino Bank and Master Bank cases). Major Russian banks have also delegated their representatives to the meeting.

Bankruptcy prevention and financial recovery is currently handled by the Central Bank in liaison with Deposit Insurance Agency based on an Act passed in crisis times (prolonged in 2011 until end-2014). “There is a need to unify and structure financial recovery procedures for banks as well as bankruptcy prevention measures, and to pass amendments that have been prompted by the enforcement practice of corresponding norms”, states the Government press release.

Statutes related to bankruptcy and financial recovery of banks will be consolidated in one Act, according to the press release.

In September, Duma passed in the first reading the bill on risk level-based bank contributions to the deposit insurance system. In early November, the Head of the State Duma Financial Market Committee Natalya Burykina said that the chamber is likely to postpone the reading of the bill until Spring 2014.

Project Group №1