Create an Energy Company in Russia

Create an Energy Company in Russia

Updated on Tuesday 11th July 2017

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Create-an-energy-company-in-RussiaRussia is one of the world’s leaders when it comes to the production and distribution of energy. Also, Russia has one of the largest reserves of natural gas which contributes in a large measure to the country’s economy. Foreign investors who want to open company in Russia have decided for the energy sector several options for doing business:

  • -          they can explore the gas and oil reserves which represent 60% of Russia’s natural resources;
  • -          they can export gas and petroleum;
  • -          they ca distribute gas and petroleum.

No matter the type of energy business one intends to set up, they must comply with the Energy Strategy Policy which is set in place until 2020. Our lawyers in Russia can offer more information on the Energy Law.

Registering an energy company in Russia

The first step to set up a business in the energy sector in Russia is to register one of the available types of companies acknowledged by the Commercial Code. This implies preparing various documents, among which the memorandum and articles of association of the company, and file them with the Trade Register. Following that, the trade license must be obtained.

It should be noted that energy companies must sign concession agreements with the national energy supplier in Russia and will also use the national power grid put at their disposal by the same supplier.

Licenses related to opening an energy business in Russia

Apart from the trade license which enables the company to operate, a Russian energy business must also obtain an export license if its activities imply exporting natural gas or crude petroleum. It should also be taken into account that the employees of energy companies in Russia must have certain qualifications, as well as electrician certificates.

All energy companies in Russia must sign contracts with their clients based on which they will offer their services to private or corporate consumers. With respect to the prices, these must fall in line with the provisions established by the Competition Authority.

For full information on how to register a company in the energy industry in Russia, please feel free to contact us. You can also rely on our law firm in Russia for assistance with the company registration procedure.