First Deputy Prime Minister Igor Shuvalov: In 2010, the President decided to establish the office of investment ombudsman to investigate complaints submitted by foreign investors. Per the President’s directive, the Russian Government adopted a decision in August last year that an investment policy department will be set up at the Economic Development Ministry, and such a department was established.
The First Deputy Prime Minister was charged with the functions of the ombudsman for such disputes, and a mechanism was created which foreign investors could use to file a complaint with the Government. The most complex issues raised in such complaints were then immediately investigated by the Government Executive Office and at Government meetings. On issues that could be handled by the Economic Development Ministry and the Economic Development Minister, similar steps were taken by Ms Nabiullina.
In total 76 complaints have been filed to date, of which 52 complaints were satisfied and the disputes were settled. The remaining issues are currently under consideration. We hope to conclude the investigations and satisfy the investors in the near future.
Nevertheless, we realised from the outset that to improve the investment climate our first priority should be to take care of Russian investors – both active and potential investors. The same mechanism should be available to them so that they could use it to file complaints.
One of the President’s initiatives, which were announced in Magnitogorsk, was to establish the office of an investment ombudsman in the federal districts. This initiative has now been formalized as a Presidential decision. Mr Medvedev has appointed investment ombudsmen in each federal district. This status was given to Deputy Presidential Plenipotentiary Envoys to Federal Districts, and in the Central Federal District it was conferred on the Aide to the Presidential Plenipotentiary Envoy.
Relevant departments have been set up in each federal district and recommendations have been adopted regarding the way the ombudsmen will work independently, within the bounds of their powers, with regional governments and municipalities, and how they will interact with the Economic Development Ministry.
We have agreed that the most complex issues raised in investor’s complaints will be forwarded by the ombudsmen directly to me, and we will make decisions on the most pressing issues immediately. All other complaints will be processed by the investment ombudsmen and the Economic Development Ministry.
The most important thing is that an integrated system is being created across the country, according to which complaints from investors, not only foreign but also Russian, can be submitted to the investment ombudsmen in federal districts and forwarded immediately to the Government, including to me personally. Decisions on those issues will be made promptly.
The competence of the Ombudsman and the investment ombudsmen in the federal districts will not extend to such issues that are subject to judicial review so that there is no competition between the investigating authorities. In any case, we accept that the disputes that are subject to judicial review are a priority in line with Russian legislation; our responsibility is to ensure that fair decisions are adopted on administrative procedures.