Economic and Trade developments in Russia meeting with

Economic and Trade developments in Russia meeting with EU Member States' consulates in Saint Petersburg 31 May 2017 Luis Portero EU Delegation to the Russian Federation

Macroeconomic stabilisation on the back of stable commodity prices

Modest GDP growth is expected in 2017 -2018…

… several macroeconomic indicators move back to positive territory…

… but real disposable income still declining

Increase in trade in 2017

Subsidies, Local Content, Export support Localisation / local content * Decree n. 550 of 10. 05. 2017 on the means to prove the domestic origin of goods: - SPIC - Certificate of compliance with Decree n. 719 - Certificate of compliance with Rules of origin Export support * "Passport" adopted on 30. 11. 2016 * Decree No 496 of 26 April 2017 – subsidies to cover transport costs for exports of automobiles and agricultural machinery Other Subsidies *Plan adopted on 17. 01. 2017 – general measures; automotive sector; other transport vehicles; agricultural machinery; construction machinery; foodprocessing machinery; light industry * Meeting of the import substitution committee on 16. 05. 2017 – package of regulations to implement subsidies

Public procurement and SOEs Russia has adopted a series of sectorial measures restricting access to government procurement in an increasing number of sectors/products In addition, there are discriminatory measures against imported goods and services in the procurement by SOEs: 1 January 2017 – Entry into force of a general "priority" for domestic goods and services in procurement by SOEs – Decree n° 925 of 16 September 2016 * 15% price preference for domestic goods and services * Russian SOEs already integrated the new requirements in their internal procurement manuals (e. g. Gazprom) * Rules for the determination of the origin of goods

Agricultural products • De-listing of agricultural exporting establishments * For those exporting establishment that have not exported to Russia over the past 18 -36 months • Wine excise duties * Lower excise duties for wines with GI protection * Only Russian wines are eligible for the lower excise duties * Risk of retroactive payment

WTO Developments WTO DISPUTES Pork meat (WT/DS 475) – appeal report issues on 23. 02. 2017 Import tariffs dispute (WT/DS 485) – end of "reasonable period of time" on 11. 05. 2017 Light Commercial Vehicles dispute (WT/DS 479) – appeal launched on 20. 02. 2017

Thank you!