HAMBURG:  Red tape is set to stymie investment in Russia.

The Russian government has introduced new legislation designed to protect all strategic sectors in its economy.

More than 40 sectors are now declared as strategic and range from aerospace to energy and fishing to automotive.

The legislation stipulates that foreign investors require the permission of a government commission in order to take a majority stake in a strategic sector.

NZTE understands a complicated application procedure is now in place.

Experts say that this new law brings along more bureaucracy and insecurity for foreign firms wanting to invest in Russia.

Contact: For more information, please contact Christine Spahn, market development manager – Central and Eastern Europe Markets, NZTE Hamburg.  Email: Christine.spahn@nzte.govt.nz

http://www.nzte.govt.nz/section/14480.aspx#hamburg