RSPP Congress: Key Issues for Business

The annual congress of the Russian Union of Industrialists and Entrepreneurs (RSPP) took place, and numerous statements relevant to businesses were made during the event. Here are the most interesting highlights for your attention.

Given that the President of Russia, Vladimir Putin, participated in the congress, it is no surprise that his words drew the most attention. The head of state urged not to consider sanctions a temporary phenomenon and stated that even if the sanctions regime were to weaken, there would still be other ways to "put a wrench in the works." Putin particularly focused on companies that have left Russia, affirming that they will not receive any privileges or preferences, meaning that their return will occur under market conditions. Therefore, Russian entrepreneurs, as well as those foreign businessmen who have come to our country in recent years (or who never left), will be at an advantage compared to the "fleeing" companies. We believe that partners from China who have entered our country in recent years heard what they wanted to hear – their positions in our market are not threatened, and Russia remembers and appreciates the assistance that Asian countries provided to our country after the tightening of sanctions.

Incidentally, the president also commented on this, noting that Russian businesses have skillfully taken advantage of the departure of Western companies from the Russian market and have filled the vacated market niches by investing their funds. We would also like to highlight the contribution of foreign partners from friendly countries, including China. As we see, there are still available niches, many of which do not correlate with the sanctions regime, providing great opportunities for Asian partners.

Speaking about the Russian economy, Putin emphasized that it should "remain a safe haven" for domestic businesses – this should be understood as a commitment to creating optimal conditions for entrepreneurs. "Safe havens" have always been valued (including by Chinese entrepreneurs), and if foreign businesses see that the "haven" is indeed "safe," it will become one of the new impulses for developing cooperation with Asia.

Among other notable statements, there was an initiative to prepare a project of assignments from the business community to the government. We believe that this should include proposals for further improving the business climate in Russia – at the moment, many aspects still unsettle Asian partners, and there is much that can be enhanced in legislative, administrative, and practical terms.

For instance, the head of the Russian Direct Investment Fund, Kirill Dmitriev, stated that Russian authorities are not focused on lifting U.S. sanctions, and the country feels comfortable even under the current restrictions. Meanwhile, the head of the Russian Chamber of Commerce and Industry, Sergey Katyrin, mentioned that Western companies may be required to pay compensation for returning to the Russian market if their departure violated contractual obligations or led to significant losses. We fully support this approach and believe that Asian companies actively operating in Russia over the past three years should not be left without support in competing against large Western corporations that decide to return to Russia.

In this way, President Putin sent several serious signals to businesses – we at the RAUIE have studied them and will continue working on further integrating Russian companies into new markets, attracting investments, and strengthening cooperation with Asian countries.