ANNOUNCED AS TEMPORARYNo
Effective 2015, the Russian government updated its industrial policy framework law.
On 31 December 2014 the Russian government approved Federal Law No. 488-FZ ("the law"). It enters into force on 30 June 2015.
Its purpose is to form a competitive high-tech economy and to ensure the transition of the Russian economy from a model based on export of raw materials to an innovation-based model, inclusive by means of import-substitution. Its second priority is development of the national defence and state security. Employment and improvement of the living standards are also explicit state priorities. All industrial sectors of the local economy are targeted except for manufacturing of tobacco and alcohol.
The law explicitly defines a financial channel of state support -- through state funds for industrial development. The state funds are to stimulate country's industrial development by means of loans, grants, leasing contracts, participation in the registered capital.
A key novelty of the law are the introduced special investment contracts (SIC). Investing companies that undertake to modernise existing industrial production or to create new one is to be guaranteed long-term incentives in Russia. The maximum duration of such a contract is up to ten years. The contractual parties are the Russian government (respectively its constitutional regions, and municipalities) and the investors. A principal characteristic of this public-private partnership is the non-participation of any budgetary funds. The Russian Government guarantees by means of SIC stable business conditions in terms of applicable legal regimes concerning SIC. (See the related GTA Report No. 8896 for further legislative development on the state policy concerning SIC.)
In addition, the law explicitly states that:
The described law is a framework document (therefore amber, not implemented GTA report)which implementation is to be achieved by additional legal acts.
⚑ Please report this page in case you detect an inaccuracy in its content.