A socially oriented non-financial development institution and a major organizer of international conventions, congress, exhibitions, business, social and sporting, public, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 155 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 75 countries worldwide.

The Roscongress Foundation has Telegram channels in Russian (t.me/Roscongress), English (t.me/RoscongressDirect), and Spanish (t.me/RoscongressEsp). Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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The Industrial Revolution in the Financial Sector: Tokenized Assets, Digital Financial Assets, and Digital Currencies for Central Banks
3 June 2021
15:00—16:15
KEY CONCLUSIONS
Russia needs to introduce infrastructure for digital financial assets as soon as possible, and business is ready for it

Considering that it’s been almost a year since the adoption of the law on digital financial assets (DFA) and half a year since its entry into force, we think that things need to be sped along. It’s already important now not to waste time and complete registration procedures in order to launch this circulation of digital financial assets based on the platforms that are being created in the Russian industry. The need to complete this stage as soon as possible can be seen in the results of a survey that we just conducted in April of this year on the prospects for the circulation of digital rights. 91% [of the respondents] don’t currently participate in the digital asset circulation system, but 30% plan to act as an issuer and 42% as buyers. These numbers are already quite tangible — Alexander Shokhin, President, Russian Union of Industrialists and Entrepreneurs (RSPP).

In my opinion, the law is quite workable. Our contacts with Norilsk Nickel, Transmashholding, and Sberbank indicate that they can apply the law in order to issue the relevant financial assets — Anatoly Aksakov, Chairman of the Committee on Financial Markets of the State Duma of the Federal Assembly of the Russian Federation.

Monitoring the product supply chain is becoming a very important issue in connection with ESG and ever-increasing environmental requirements. For example, now the European Union is about to introduce an electronic passport on batteries for electric vehicles. And, as a nickel producer, we are interested in our nickel being bought and supplied to car manufacturers who want it to meet these standards. Even just a smart contract, or a token, as we call it, allows us to record [information] in a batch of nickel [about] where it was mined, how it was delivered, and how environmental standards were observed there. At each stage of its implementation, it’s possible to trace that this is exactly the nickel [in question], right up to the moment when the battery in which it is contained is sent off for disposal — Sergey Batekhin, Chief Executive Officer, Head of the Management Board, Interros.

ISSUES
Digital financial asset platforms won’t be able to operate without a special tax regime

Unfortunately, I can verify that without amendments to legislation regarding digital financial assets, the business will not be able to get off the ground. This is a fact of life today. The new market will be able to earn money under two conditions. First, the readiness of business. This condition is feasible […] Second, this model will not work without the adoption of tax changes. Today, entry to the market is prohibitive. You have to pay 20% of the income tax right away with the release of DFAs. This is essentially a turnover tax — Sergey Batekhin, Chief Executive Officer, Head of the Management Board, Interros.

As for the development of the DFA circulation system, I would like to note that it will be extremely difficult without launching and debugging all the elements of this system. In this regard, a favourable tax regime needs to be created, in particular. Unfortunately, the joint plan of the Russian government and the Central Bank left out the section on the taxation of the DFA, although we insistently suggested that is be included. We will work on including this theme there. We will try to include this in some key new document — Alexander Shokhin, President, Russian Union of Industrialists and Entrepreneurs (RSPP).

SOLUTIONS
Taxation of digital financial assets similarly to securities

There is a bill in the State Duma, which was adopted in the first reading, and it hasn’t moved any further. Because as part of the discussion during the first reading, questions arose about the essential definitions of digital financial assets. It concerns the taxation of cryptocurrencies, but already during the discussion in the first reading, we talked about the need to integrate taxation issues with the DFA. In terms of their content, these assets are very close to securities, and it is definitely possible to apply the same norms that work for securities here with some nuances. It doesn’t take a lot of mental effort. I expect that we will pass the law in the fall — Anatoly Aksakov, Chairman of the Committee on Financial Markets of the State Duma of the Federal Assembly of the Russian Federation.

Introduction of a preferential tax regime

Of course, this is very Russian – spending six months discussing taxation of something that no one has ever seen, that does not exist, and it’s generally unclear in what form it will exist. We can argue until we are blue in the face instead of doing this whole thing on a preferential basis and not taxing it at all for the first time — Kirill Lipa, General Director, Transmashholding.