The Ministry of Economic Development has elaborated a draft law that Russian branches of foreign companies may get licenses same as Russian companies.
Currently, to receive a license a company registered in Russia (subsidiary) is necessary.
If compared to a subsidiary, a branch is an integral part of the foreign company and offers easier money flow, financing, and profit distribution.
The new regulation shall apply to pharma, medicine, education, transportation and other (totally 52 types of activity), apart from banks.
It is expected that the new law shall attract foreign investments, however increasing competition in the Russian market.