"We have secured a chance to keep the quotas. That's an honest arrangement-a live-and-let-live for Russian and overseas companies," he remarked.
The present-day ceiling for overseas capital share in Russian-based companies is 25 per cent for insurance, and roughly 12 per cent for banking.
Expatriate bankers and insurers will see the terms of their presence in Russia gradually liberalised, even though banks will have no right to start their offices in the host country. They may establish corporate affiliates, however. As for insurance, the related market will get through a transition period, after which expats will enjoy terms equal to their Russian colleagues'.
The stock market will also retain certain limitations. These will be at their toughest in the market infrastructure, e.g. for registrars and depositories. A quota will stay on for overseas participation in the authorised capital of Russian-based companies. The securities market will be milder. Brokers and others will have no limits for their work after a transition period of three to ten years.
The service market includes 150 sectors. Of these, forty will have an unlimited access, and another forty will be immune to expats, to a varying extent. On another fifty to sixty, Russia will not pledge to offer expatriate access. "All that means Russia will be able to make some service market regulation," said our informant.
As for the communications, the market will get rid of the Rostelecom monopoly. The EU said it was not worthwhile to preserve it, and Russia agreed. "At present, this country has a limited number of market operators and, with a huge telephone margin, the Rostelecom affords subsidies to rural and outlying areas as they get on the phone." A new subsidy arrangement will appear by 2008, with every operator making deductions to an Universal Service Fund to finance the progress of rural telephony.
