Russia moves forward on foreign investment law

MOSCOW, March 6 (Reuters) - Russia moved a step closer to passing a key law on foreign investment in strategic industries on Thursday as a parliamentary committee approved a new draft ahead of a second crucial reading on March 19.

The Duma lower house of parliament approved the draft in the first reading last September, over two years after Russian President Putin ordered officials to draw up legislation to define rules on foreign investment.

The new draft, obtained by Reuters, extends the list of sectors where foreign investment will be limited to 43 from 39 and will also include electronic mass media, fishing industry, Internet providers and publishing houses.

An original list of strategic sectors included nuclear energy, natural monopolies, exploration of strategic mineral deposits, aviation, space as well as other defence sensitive industries.

The draft bans firms controlled by foreign governments from seeking control over the Russian companies and requires other foreign firms to seek permission from a government committee if they acquire over 50 percent of equity in a Russian firm.

The lawmakers also approved amendments to the existing subsoil law, defining recoverable deposits of over 70 million tonnes of crude, 50 billion cubic metres of natural gas, 50 tonnes of gold and 500,000 tonnes of copper as strategic.

Senior Russian officials had pledged the law would be passed in 2007 but the second reading was delayed due to a tussle between different ministries and security agencies over what industries should be deemed sensitive.

Government officials involved in drafting the law met with Putin this week and the version approved by the Duma committee is set to go the second reading without any delays. The third reading is largely technical.

The law goes into force after being signed by the President. (Reporting by Gleb Bryanski; Editing by Louise Ireland)