Vladimir Yefimov, deputy head of the foreign investment department at the Economics Ministry, said that five agencies -- in Frankfurt, Paris, Washington, London and Chicago -- could open as soon as the first quarter of 1995.
The agencies will provide companies intending to invest in Russia with advice and data on their potential partners on the Russian market, Yefimov said.
"We want to make sure that information about the investment climate in Russia is accessible," he said. "It'll make it easier for investors to make a first step."
Lack of legal and taxation information is one of a major obstacles for foreign investors in Russia. A recent report by the U.S. consulting firm Ernst & Young showed just 6 percent of multinational companies were targeting Russia for major investments -- preferring China, southeast Asia and Latin America.
The new project has been drawn up by members of the Foreign Investment Advisory Council, created by the Russian government earlier this year to help boost foreign investment.
Member companies of the council, which represent many of the top foreign investors in Russia, would provide part of the funding for the project, and the Russian government would cover the rest, Yefimov said. The various parties' exact contributions are yet to be finalized, he said.
Yefimov said he does not expect the project to be very costly, adding that the new agencies will have special incentive programs to increase the likelihood they will be more efficient than the bureaucratic structures of the former Soviet Union.
"Our bureaus will be very small offices with only several employees," he said. "And they won't have a 9-to-6 working day: Their compensation will depend on how well they do their job, which is to lure investors here."
Yefimov said the consultancies will not only provide information to foreign businesses but also collect and analyze data on potential investors.
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