The mechanism of protection and encouragement of investments in the Russian Federation is gaining momentum

On April 1, 2020, Russian President Vladimir Putin signed the Law on the Protection and Promotion of investments (hereinafter referred to as the Law). The document is published on the legal information portal. The Law regulates relations arising in connection with the implementation of investments on the basis of agreements on the protection and promotion of investments (hereinafter referred to as the NWPC). In 2020, the first 9 NWFPs were signed.

The law applies to companies and enterprises that have concluded a trilateral NWPC with the Russian Federation and the region. At the same time, investments in culture, healthcare, education and sports should be at least 250 million rubles, in the digital economy, ecology, agriculture - 500 million rubles, for projects in manufacturing — 1.5 billion, in other areas — 5 billion rubles.

As noted by the Omsk Region Development and Investment Agency, the main innovation of the Law is the stabilization clause. Investors are given the opportunity to implement investment projects based on the government's guarantee not to apply acts that could worsen their situation: for users of this support measure, tax conditions and land use conditions for a period of 6 to 20 years will not change.

In addition, the Law introduces a mechanism for reimbursing investors for the creation (construction), modernization and (or) reconstruction of facilities of supporting and (or) related infrastructure necessary for the implementation of an investment project, including for the reconstruction of infrastructure facilities owned by the state (municipal); for the payment of interest on loans and borrowings, coupon income on bond loans raised for the creation (construction), modernization and (or) reconstruction of facilities providing and (or) related infrastructure.

An investment project can be implemented in any field except: gambling, tobacco and alcohol production, crude oil and natural gas production, wholesale and retail trade, financial organizations and the construction of residential buildings, business and shopping centers.

It should be noted that the NWPC can be concluded between a constituent entity of the Russian Federation (represented by the Ministry of Economy of the Omsk Region as an authorized body) and an organization implementing an investment project if the volume of investments in the project exceeds 200 million rubles.

For more information, please contact the specialists of the Omsk Region Development and Investment Agency, who support investment projects on a one-stop-shop basis at all stages of implementation by phone: +7(3812)40-80-49.

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