Newsletter for the Brazilian businesses and investors (Issue 2, 2014)
New amendments to the Russian law on foreign investments in strategic businesses
The Federal Anti-Monopoly Service of the Russian Federation has prepared a new set of amendments regulating foreign investments in strategic Russian businesses.
The legislation, which is titled "On Amending the Federal Law ‘On Foreign Investments in Business Entities of Strategic Importance for National Defense and State Security',’’ would simplify and refine the provisions of the law, extend its effect on certain transactions, and loosen the controls previously imposed on certain industries that are classified as strategic. For example, one of the amendments exempts the use of infectious agents by food production companies from classification as a strategic activity. Another amendment loosens controls on intercompany transactions in which the same foreign investor holds a controlling majority in both entities. A similar amendment applies to businesses that use the subsoil.
OAO Uralkali acquires a stake in a Brazilian port
OAO Uralkali has acquired a 25% stake in the holding company, Equiplan Participacoes SA, which is the main shareholder of the port terminal, Terminais Portuarios da Ponta do Felix SA (Antonina, Brazil). According to Oleg Petrov, Director of Sales and Marketing of Uralkali, the deal marks a new advance in the development of the company's operations in Latin America.
Russia plans to resume imports of Brazilian pork and is considering imports of additional Brazilian commodities
Rosselhoznadzor, the Russian Federal Service for Veterinary and Phytosanitary Surveillance, plans to restore pork imports from Brazil in March, reported department spokesman Alexey Alexeenko in an interview on 19 February 2014. In order to ensure stability and security in the supply of pork to the Russian market, there is a plan to conclude a bilateral agreement regulating the process of production and processing of Brazilian pork. In addition, representatives of Rosselkhoznadzor and their Brazilian colleagues discussed opportunities for importing new commodities from Brazil, among them, seafood, honey, and high-quality pork bellies. Interest in importing Brazilian bacon has increased significantly after the cessation of imports of European bacon as a result of the detection of African swine fever throughout the European Union.
Saratov Airlines expands its operations using Embraer E-195 airplanes
In December, 2013, Saratov Airlines began to operate flights between Saratov and the Domodedoveo Airport in Moscow, using a new Brazilian airplane, the Embraer E-195. The airline was already using the Embraer E-195 for flights between Prague (Czech Republic) and Saratov, and for chartered flights from Saratov to Sharjah (United Arab Emirates). Saratov Airlines now plans to start using the Brazilian aircraft for flights to Dubai and to selected cities in Europe, Asia, and Africa.
Projects for the development of the Ust-Luga seaport
A logistics complex worth between US$ 50 and US$ 70 million will be built in the Gatchina district of the Leningrad region. The complex will be aimed primarily at servicing the Ust-Luga seaport, and will be used for temporary storage of containers meant for subsequent transportation to St. Petersburg and the cities of the Russian Northwest. There are also plans to develop a large-scale project in a 3,000 hectare area in the Leningrad region. This project will include a new international cargo airport, a dry port, an industrial and logistics complex, an industrial park, aircraft storage facilities, customs terminals, a wind farm, and a residential and recreational complex. Further details concerning the development of the Ust–Luga Multimodal Complex project may be found at www.ust-luga-mmc.ru/index-e.
Construction of a Central Ring Road in Moscow to stimulate business development
Construction of a Central Ring Road in the Moscow region has begun. Total investment for the project is estimated to cost between 300 to 350 billion rubles. The Central Ring Road is a key element of the logistics system for the Moscow region. In addition to developing the Moscow transportation hub, the project is also aimed at rationalizing the structure of cargo distribution and creating the infrastructural conditions needed to meet the demands for logistics facilities. As a result, there is a plan to build nine logistics facilities on the Central Ring Road, with a total area of approximately 2,086 square meters.