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US Consulting Firms May Be Banned From Providing Services to Russian State Companies

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(updated 18:35 28.10.2014)
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Representatives and subsidiaries of US consulting companies may be banned from providing consulting services to Russian state companies, according to a draft law initiated by a United Russia deputy Evgeny Fyodorov, the Russian Izvestiya newspaper reported Thursday.

MOSCOW, June 19 (RIA Novosti) – Representatives and subsidiaries of US consulting companies may be banned from providing consulting services to Russian state companies, according to a draft law initiated by a United Russia deputy Evgeny Fyodorov, the Russian Izvestiya newspaper reported Thursday.

"Russian economy has just 0.5 percent growth as a result of foreign consultants lobbying the interests of their own country," Fyodorov said, as quoted by the newspaper.

"Several days ago at a meeting of the State Duma budget committee, Russia’s Central Bank report was discussed. Central Bank’s deputy head pointed out that a series of bankruptcies of Russian banks was a result of foreign consultations. They don’t help to manage, they appoint managers," Fyodorov said.

In Fyodorov’s opinion, the new law can protect the Russian state from foreign influence and large state companies from covert manipulations by foreigners.

As an alternative, Fyodorov suggested establishing new national consulting institutes, which will help state companies in economic planning and strategy development instead of American firms.

New restrictions will mostly affect Boston Consulting Group (BCG) in Russia, which is a representative office of an American company and one of the largest consulting companies in Russia. It provided consulting services to such state companies as Rosneft and the Russian Post. Another large international consulting company that can be barred from working with state companies is McKinsey & Co.

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