State contracts with private investors on the protection and promotion of investment introduced
01 Apr 2020
On 1 April 2020, the new Federal Law № 69-ФЗ on the Protection and Promotion of Investment entered into force. It does not replace the existing investment regime in the Russian Federation, but introduces a new instrument to incentivise investment - a contract to be concluded between public entities and private investors, either domestic or foreign. It is to contain stabilization clauses relating to import customs duties, measures of state support, rules regulating land use, as well as ecological and utilization fees and taxes. The terms of these stabilization clauses depend on the value of an investment and range from 6 to 20 years.
In order to qualify, an investment project needs to meet certain minimum capital requirements. They are: 1) 250 mill. rubles in healthcare, education, culture and physical fitness and sport industries; 2) 500 mill. rubles in digital economy, ecology and agriculture; 3) 1.5 bn rubles in processing industries; and 4) 5 bn rubles in other sectors. Furthermore, investment in the following sectors do not benefit from this facilitation scheme: gambling; tobacco and alcohol; liquid fuels; production of crude oil and gas; wholesale and retail trade; financial institutions; and construction.
-
Type:
-
Promotion and facilitation (Investment facilitation )
-
Industry:
-
Not industry specific
-
Primary (Agriculture, forestry and fishing)
-
Manufacturing (Manufacture of food products, beverages and tobacco products)
-
Manufacturing (Manufacture of food products, beverages and tobacco products)
-
Services (Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities, Education, Human health activities, Arts, entertainment and recreation)
-
Sources:
