»»Russian Insurance Companies Not Capable of Competing with Foreign Insurers - Prime Minister Mikhail Fradkov
Russia’s Prime Minister Mikhail Fradkov said Thursday that major Russian insurance companies could be taken over by foreign investors following the country’s accession to the World Trade Organization (WTO).[…]
Only three to five Russian insurance companies may be capable of competing with foreign insurers following Russia’s accession to the WTO, he said.[…]
Currently, foreign insurers cannot set up direct branches operating under foreign law in Russia and are only allowed to set up subsidiaries that comply with Russian legislation. However, last year Russia agreed to allow foreign insurers set up branches in Russia nine years after it accedes to the WTO. The agreement was part of a landmark WTO deal with the U.S.
At present, foreign investors are allowed to hold a combined stake of up to 35% in Russia’s insurance industry. In November 2006, the Economic Development and Trade Ministry said that Russia would be able to increase the limit to 50% after its accession to the WTO.
(source)
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