Microsoft Will Invest In Skolkovo Fund

Microsoft will initially invest in Skolkovo tens million dollars a year. Executive officer Steve Ballmer told reporters last week in Moscow .

Fund Skolkovo and U.S. company Microsoft signed a memorandum of understanding to the beginning of cooperation between the innovation center and the software giant. This document was signed by Steve Ballmer and president of Skolkovo Fund Viktor Vekselberg.

It is planned to create items platforms of Technical Computing (new initiative to create a large-scale solutions in the field of data processing for research, engineering, data analysis and experimental modeling) and Microsoft Business Solutions (business applications).

Microsoft also plans to engage on the basis of Skolkovo implementation of promising research projects in cooperation with Russian and foreign universities and research organizations, to expand the program of assistance to the Russian innovative start-ups, to establish a technology center to provide access to information technology in Skolkovo and support the creation of University of Technology.

S. Ballmer noted that the key point of investigations should be cloud computing, which allow users of different levels of access to information anytime, anywhere. "We live in a time of great hope, when there are opportunities for convergence of technologies and innovations that result will create new ways of sharing information," - he said.

Under the agreement, the corporation intends to provide its own financial support for start-up companies in the implementation of the most promising ideas in their early stages. 


S. Ballmer noted that the Russian market for Microsoft is strategically important. "Russian IT-market is growing rapidly. For several years, we expect that it will double. In coming years, the corporation plans to sell in Russia 1 million computers with software of Microsoft", - said the head of the company. However, he pointed out that in terms of technology and innovation in the Russian Federation there is a "fantastic opportunity". 


President of Skolkovo Viktor Vekselberg, said: "We are pleased to welcome such a large IT-player like Microsoft as a project participant in Skolkovo. The vast experience of the corporation as to create innovative IT-products and solutions, as well as in organizing and supporting research and well as her knowledge and skill to create an innovation ecosystem will be very useful for the development of Skolkovo."


V. Vekselberg also said that in the near future may be signed contracts with several major companies. "Russia's level of mathematical background is very high and we are going to companies that see here, especially human resources. Among the companies with which we expect shortly to sign the agreement are Nokia and Intel". 

Limited Liability Company In Russia

A limited liability company is:

- a company established by one or several persons; 

- the share capital of such company is divided into shares determined by the constituent documents;

- shareholders of the company are not responsible for the company's liabilities and carry the risk of losses related to the company's operations up to the value of their investment. 

Issues concerning a share transfer to third parties are regulated by the company's Articles of association.

The minimum registered capital is 10,000 roubles. 

The company must have a round seal (stamp) that has its full company name in Russian and an indication of the company's location.

The company's members enter the Association agreement.

Shareholders' general meeting is the supreme authority of the company.

Management of the current operation of the company is performed by a sole executive authority (director, director general) elected by the shareholder's general meeting for the period of time stipulated in the Articles of association. 

How To Set Up A Company In Russia

The form of legal presence in Russia influences all aspects of activity including:

1. possibility for making deals and tax consequences of the deals
2. financial and tax accounting and reporting
3. possibilities under customs
4. currency control legislation
5. ability to employ foreign nationals
6. repatriation of income
7. and many very serious others....

ATTENTION! Russian business modelling MUST be made PRIOR to setting up legal presence in Russia.
Foreign investor may set up (or register) a Russian legal entity in the following forms:

1. limited liability company

2. joint-stock company (which can be private or public)

3. partnership


The other way is to register:

1. a representative office

2. a branch

Accreditation of Rep Office of a Foreign Company in Russia

A simple notification, which is all that is required in some countries, would not be sufficient in Russia. The Russian Law provides for a formal procedure for accreditation of representative offices of foreign companies.

Under this accreditation procedure a foreign company must file necessary documents to the State Registration Chamber of the Ministry of Justice of Russia. 

The list of documents required for accreditation is as follows:

* letter confirming the authority (power of attorney) issued in the name of a representative of the foreign company in Russia;

* written application stating the general details of the company (name, location, type of business, corporate bodies, management, etc.);

* articles of association (or any similar document);

* certificate of incorporation or an extract from the Trade Register certifying the company's registration;

* the foreign company's decision on establishing a representative office in Russia;

* bank statement from the country of the company's domicile as proof of the company's solvency;

* the company's regulation regarding the representative office;

* letters of reference from the Russian business partners (at least two written in a free form);

* document confirming legal address of the representative office to be established (e.g. a lease agreement for the premises of the representative office in Russia);

* filled out registration card with the representative office data (to be issued at the Registration Chamber).

All documents of foreign origin must be translated into Russian and duly notarized by the Consular Offices of the Russian Federation abroad (the Consulate stamp or the apostille).

In case of a favourable decision the accrediting body shall within 21 business days issue a permit for establishing a representative office and the certificate confirming that the representative office is listed in the Consolidated State Register. 

This certificate shall serve as the confirmation of the official status of the representative office and will be required to open bank accounts, register with the tax authorities, issue Russian visas and undergo customs procedures. Accreditation is normally issued for the period of 1, 2, or 3 years and is extendable.

Customs Rules For Individuals Entering Russia

You can bring into or out of Russia foreign and (or) Russian cash as well as travellers cheques, foreign and (or) domestic securities in physical certificated form in the sum of up to the equivalent of 3000 US dollars.

When the amount is in excess of this sum, the money must be declared to the customs office by submitting a TD-6 customs declaration stating the sum total of money carried.

IPO of Mostotrest - Largest Russian Bridges Constructor

The largest bridge-building company in Russia Mostotrest announced today the results of the subscription to their shares in their initial public offering (IPO). The company's shares will be placed on the bottom of the price range - 6,25 USD / pcs. Thus, the market capitalization of Mostotrest is $1.55 billion.

The total amount received during the placement is about $388 million. 40% will be spent to purchase additional shares of the company. The remaining funds be directed for general corporate purposes, including acquisition of production facilities and equipment. The share of the company's shares in free float immediately after placement and public offering will be about 36%. 

Ordinary shares of the company are listed on the "B" on the RTS stock exchange and admitted to trading on the MICEX. Start of Mostotrest's shares trading on MICEX is scheduled for today.

Joint global coordinators and joint book-runners of placing are Deutsche Bank, JPMorgan and Troika Dialog. TCB Capital is a joint lead manager. 

JSC Mostotrest is the largest Russian company in the construction and reconstruction of railway, highway and city bridges and overpasses. It is the first company in the sector decided to go public. 

The main shareholder  of Mostotrest is the company Mark O'Polo (50,3%), which enefetsiaries are  managers of the companies N-Trance, E4 Group and their partners.


In March 2008 the structures of RZD - the funds Welfare and RWM Capital - became the owners of a blocking stake (25% plus one share) of Mostotrest. 

In I half of 2010 revenues of Mostotrest under IFRS amounted to 31 billion 361 million rubles. Activities of the company provide 14 branches and five subsidiaries and affiliates operating in the territory of Russia. 

Business Visa: Your Business Trip To Russia

This case deals with the most common situation when the foreigners arrive to the Russian Federation on a standard business visa. 

According to Russian legislation foreigners that are travelling in Russian companies, Representative Offices and Branches of foreign companies in Russia should obtain business visas. 

So, a business visa should officially be obtained by those individuals who are traveling to Russia to conduct a business activity related to the business they are invloved in at their home country (such as exhibitions, conference meetings, negotiations, etc.).

However, a business visa is often the only way to be able to stay in Russia for longer than 1 month, as standard tourist visas are valid for up to 1 month only. So, it's became quite a common practice to issue business visa for tourists and that is what most of the Russian tourist agencies do.

If an individual has plans to have a long-term employment in Russia, then a standard business visa is not legally sufficient.

Several types of business visa are distinguished in Russia:

- 1 month single entry,

- 3 month single entry,

- 1 month double entry,

- 3 month double entry,

- 6 month multiple entry

- 1 year multiple entry. 

Total time needed for obtaining single entry and double entry business visas is 10 working days, for multiple entry business visas – 15 working days. This period may be longer or shorter, depending on what fee is paid to the authorities that process the visa support and visa request.

The procedure of obtaining business visas for foreign visitors you can see in my earlier posts. 

Foreign Legal Entities In Russia: Rep Office And Branch

Foreign individuals and legal entities have right to participate in establishment of business partnerships and companies  in Russia or to acquire a share in the registered capital or shares in established legal entities. 

A foreign legal entity may open on the territory of  Russia  its  representative office or a branch. 

Relationships concerning the state guarantees for foreign investors' rights while investing on the territory of  Russia are regulated by the Federal Law № 160-FZ "On Foreign Investment in the Russian Federation" dated 9 July 1999.

A representative office of a foreign legal entity

It is a separate subdivision which does not assume either property or personal non-property rights and cannot be either a claimant or a respondent in court. A representative office is always located on the territory of Russia where it represents and protects interests of a foreign legal entity and does not carry out independent industrial economic activities.

A branch of a foreign legal entity 

It is created for the purposes of carrying out those activities  in Russia which are carried out by the parent organisation abroad  and is liquidated on decision of a parent organisation. 

State control over establishment, activities, and liquidation of a branch is effected by its accreditation in accordance with the procedure determined by the Government of the Russian Federation.

New Regulations of Customs Regime in Russia

On September 25, 2010 came into force Technical Regulations on the Safety of machinery and equipment.  

There is a list of machines and equipment that are subject to mandatory conformity assessment on entry into Russia.

Simultaneously with the customs declaration there must be submitted a declaration of conformity or certificate of compliance or documentation of their recognition.  

The list includes equipment for oil and gas wells, construction machinery, equipment for various industries, etc.

The resolution came into force on September 25, 2010.

Gazprom's Profits Tripled In III Quarter 2010

Net profit of Gazprom in the III quarter of 2010 increased almost three times over the same period a year earlier, the company said today. During July and August Russian natural gas giant earned 56.8 billion rubles according to Russian Accounting Standards (RAS), which is 2,8 times more than a year ago (20.15 billion).


Earlier, representatives of Gazprom reported that the company is planning this year's net profit under RAS on the level of the previous year. In 2009 the company's profit amounted to 624.6 billion rubles and the two thirds of these profits came in IV quarter, when the gas company earned 435 billion rubles.