ANNOUNCEMENT 16 Jul 2015

In July 2015, the government of the Russian Federation introduced "special investment contracts" to improve business conditions.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

The Russian Government (2015). РАСПОРЯЖЕНИЕ ПРАВИТЕЛЬСТВА РФ ОТ 16 ИЮЛЯ 2015 Г. N 708 "О СПЕЦИАЛЬНЫХ ИНВЕСТИЦИОННЫХ КОНТРАКТАХ ДЛЯ ОТДЕЛЬНЫХ ОТРАСЛЕЙ ПРОМЫШЛЕННОСТИ". (Resolution of the Government of the Russian Federation of July 16, 2015 No. 708 "On Special Investment Contracts for Certain Industrial Sectors"). Available at http://pravo.gov.ru/proxy/ips/?docbody=&nd=102376302&rdk=0

Inception date: No inception date

Instrument unclear

The Russian government updated its treatment of special investment projects in 2015.
 
On 16 July 2015,the Government of the Russian Federation approved Decree No. 708 'On special investment contracts for selected industries' under the general provisions of Federal Law No. 488-FZ of 31 December 2014 'On the industrial policy in the Russian Federation' (see related GTA Report No. 9354).
 
A Special Investment Contract ('SIC') is a specific type of agreement that guarantees long-term incentives in Russia for investors that undertake to modernise existing industrial production or to create new production. 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 investor. Not every investor can be a SIC-investor --- s/he must be approved by the Russian Government.
The investor is defined as a juridical person or a sole trader who undertakes the obligation under the conditions of the SIC contract to create or modernise with own know-how and effort or by attracting of third parties industrial production on Russian territory.
 
A principal characteristic of this public-private partnership is a 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, and has the purpose to motivate the investor to create new production facilities on Russian territory. Hence, it is thought likely to reduce market and political risks.
 
The minimal SIC investment amount must be not less than 750 million RUB (ca. 13.24 million USD as per the USD/RUB exchange rate for 16 July 2015). Decree No. 708 does not set out specific incentives that can be provided to an investor. Incentives are to be determined and provided on a case by case basis to each investor, depending on the terms and conditions of the proposed investment. A commission decides within 60 days after submitting of a list of documents what preferences will be provided for the concrete case. There are no explicit limitations SIC to be combined with other mechanisms (for example, special economic zones and public procurement).
 
Assessment: Decree No. 708 forms part of the policies of the Russian Government aimed at creating a legal basis in the area of localisation of production on Russian territory and import substitution. Its realisation must enhance the achievement of the goals and indicators, set by Russian state industrial programmes in which framework SIC operate.

AFFECTED PRODUCTS

 
280120 280300 280421 280429 280440 280461 280469 280470 280511 280512 280530 280610 280920 281000 281111 281119 281121 281122 281129 281390 281511 281512 281520 281700 281810 281820 281830 281910 281990 282010 282090 282110 282120 282300 282510 282530 282560 282570 282580 282612 282619 282630 282690 282710 282720 282731 282732 282739 282749 282751 282810 282890 282911 283010 283110 283210 283321 283327 283329 283340 283410 283421 283429 283524 283526 283529 283531 283539 283620 283630 283640 283650 283660 283691 283699 283711 283720 283911 283919 283990 284019 284020 284180 284190 284210 284390 284410 284420 284440 284590 284610 284690 284700 284910 284990 285000 285300 290110 290122 290123 290124 290129 290219 290220 290290 290311 290312 290322 290323 290339 290373 290377 290389 290399 290410 290420 290512 290519 290531 290532 290542 290543 290544 290545 290549 290559 290611 290621 290711 290715 290719 290721 290729 290911 290919 290930 290943 290944 290949 290960 291030 291241 291260 291412 291450 291461 291470 291511 291512 291529 291531 291532 291539 291540 291560 291570 291590 291612 291614 291615 291619 291620 291631 291632 291639 291711 291712 291714 291719 291720 291733 291734 291735 291736 291739 291811 291812 291814 291815 291816 291819 291822 291829 291899 291990 292019 292090 292119 292121 292129 292130 292141 292142 292149 292151 292159 292211 292219 292241 292242 292249 292250 292310 292320 292390 292419 292429 292511 292529 292610 292690 292700 292800 292910 292990 293020 293040 293090 293190 293213 293219 293220 293299 293311 293319 293329 293339 293349 293353 293359 293361 293369 293371 293379 293399 293420 293499 293500 293621 293623 293624 293625 293627 293628 293629 293690 293712 293719 293729 293790 293810 293890 293930 293999 294000 294110 294120 294130 294140 294150 294190 294200 300120 300190 300210 300220 300230 300290 300310 300320 300331 300390 300410 300420 300431 300432 300439 300440 300450 300490 300510 300590 300610 300620 300630 300640 300660 300691 310100 310210 310260 310290 310390 310420 310430 310510 310520 310530 310560 310590 320210 320290 320300 320412 320413 320414 320416 320417 320419 320420 320611 320619 320620 320649 320650 320710 320720 320730 320740 320810 320820 320890 320910 320990 321000 321210 321290 321310 321410 321490 321511 321519 321590 330190 330210 330290 330300 330410 330420 330430 330491 330499 330510 330530 330590 330610 330620 330690 330710 330720 330730 330749 330790 340111 340119 340120 340130 340211 340212 340213 340219 340220 340290 340311 340319 340391 340399 340420 340490 340510 340530 340540 340590 340600 340700 350110 350211 350220 350290 350300 350400 350510 350520 350610 350691 350699 350790 360100 360200 360300 360410 360500 370110 370130 370210 370243 370244 370310 370320 370790 380110 380130 380210 380290 380630 380690 380891 380892 380893 380894 380899 380991 380992 380993 381010 381090 381119 381121 381129 381190 381210 381220 381230 381400 381511 381512 381519 381590 381600 381700 381800 381900 382000 382100 382200 382311 382313 382319 382370 382410 382430 382440 382450 382460 382478 382490 440122 440131 440290 440320 440690 440710 440791 440799 440810 440839 440890 440910 440929 441011 441012 441112 441113 441114 441192 441193 441194 441232 441239 441299 441400 441520 441600 441810 441820 441840 441860 441872 441890 441900 442010 442090 442110 442190 450310 450410 460121 460129 460192 460193 460211 460219 460290 470321 470329 470429 470610 470620 470692 470710 480100 480240 480254 480255 480256 480258 480261 480300 480429 480431 480439 480451 480452 480511 480512 480519 480524 480525 480530 480540 480591 480592 480593 480620 480700 480810 480890 480920 481013 481019 481022 481029 481092 481099 481141 481149 481151 481159 481160 481190 481200 481320 481390 481420 481490 481620 481690 481810 481820 481830 481890 481910 481920 481930 481940 481950 481960 482010 482020 482030 482040 482050 482090 482110 482190 482320 482369 482370 482390 490110 490199 490290 490300 490700 490900 491000 491110 491191 491199 500710 500720 510121 510710 510910 511130 520100 520210 520300 520411 520511 520512 520513 520514 520522 520523 520524 520532 520533 520611 520612 520632 520811 520812 520831 520832 520852 520859 520912 520931 520932 520939 520941 521049 521132 521139 521142 521151 530129 530310 530500 530610 530710 530720 530810 530890 531090 531100 540110 540211 540219 540220 540231 540232 540233 540234 540244 540247 540333 540411 540419 540710 540720 540730 540744 540751 540752 540753 540754 540761 540769 540772 540773 540774 540782 540783 540784 540792 540821 540822 540832 550130 550200 550311 550320 550330 550410 550810 550912 550922 550931 550932 550942 550953 550959 550961 550969 550999 551110 551120 551130 551219 551299 551311 551321 551341 551412 551422 551423 551429 551430 551511 551513 551599 560121 560122 560210 560290 560311 560312 560313 560314 560391 560392 560393 560394 560410 560490 560500 560600 560749 560750 560790 560819 560900 570210 570241 570242 570299 570320 570330 570390 570490 570500 580132 580133 580136 580137 580230 580410 580421 580610 580620 580632 580890 580900 581092 581100 590190 590210 590220 590290 590310 590320 590390 590410 590490 590610 590699 590700 590900 591000 591120 591131 591132 591140 591190 600110 600122 600191 600192 600240 600330 600410 600490 600521 600532 600621 600622 600623 600624 600631 600632 600633 600634 600642 600644 610120 610130 610210 610220 610230 610322 610323 610329 610332 610333 610342 610343 610422 610423 610429 610432 610433 610439 610441 610442 610443 610444 610449 610452 610453 610459 610462 610463 610469 610510 610520 610590 610610 610620 610711 610712 610721 610811 610821 610822 610831 610832 610891 610892 610910 610990 611011 611012 611020 611030 611090 611120 611130 611211 611212 611231 611241 611300 611420 611430 611510 611521 611522 611529 611530 611595 611596 611599 611610 611691 611692 611693 611710 611780 620111 620112 620113 620191 620192 620193 620199 620211 620212 620213 620219 620291 620292 620293 620311 620312 620319 620322 620323 620329 620331 620332 620333 620339 620341 620342 620343 620349 620419 620423 620429 620431 620432 620433 620439 620441 620442 620443 620444 620449 620451 620452 620453 620459 620461 620462 620463 620469 620520 620530 620590 620610 620630 620640 620690 620711 620791 620819 620822 620891 620892 620920 620930 621010 621020 621030 621040 621050 621111 621120 621132 621133 621142 621143 621210 621220 621230 621290 621410 621420 621430 621440 621490 621510 621520 621600 621710 630120 630130 630140 630210 630221 630222 630229 630231 630232 630251 630253 630260 630291 630293 630299 630312 630391 630392 630411 630419 630492 630493 630499 630532 630533 630612 630622 630640 630690 630710 630790 630800 630900 631010 720211 720219 720221 720229 720230 720241 720250 720270 720280 720293 720299 720429 720449 720510 720521 720529 720711 720810 720837 720838 720839 720840 720851 720852 720853 720854 720890 720915 720916 720917 720918 720926 720927 720928 721012 721020 721030 721049 721061 721069 721070 721090 721119 721123 721129 721190 721220 721230 721240 721250 721260 721310 721391 721420 721491 721499 721510 721550 721590 721610 721621 721631 721632 721633 721640 721650 721661 721669 721691 721699 721710 721720 721730 721790 721891 721899 721912 721913 721914 721921 721922 721923 721932 721933 721934 721935 721990 722012 722020 722090 722211 722220 722230 722240 722300 722490 722519 722540 722550 722591 722592 722599 722692 722699 722790 722810 722820 722830 722840 722850 722860 722870 722880 722920 722990 730110 730120 730210 730230 730240 730290 730300 730411 730419 730422 730423 730424 730429 730431 730439 730441 730449 730451 730459 730490 730511 730520 730531 730539 730590 730619 730629 730630 730640 730650 730661 730669 730690 730711 730719 730721 730722 730723 730729 730791 730792 730793 730799 730810 730820 730830 730840 730890 730900 731010 731021 731029 731100 731210 731414 731419 731420 731431 731439 731441 731442 731449 731511 731512 731520 731582 731589 731590 731600 731700 731811 731812 731813 731814 731815 731816 731819 731821 731822 731823 731824 731829 731990 732010 732020 732090 732111 732119 732181 732189 732190 732211 732219 732290 732310 732391 732392 732393 732394 732399 732410 732421 732429 732490 732510 732591 732599 732611 732619 732620 732690 740100 740312 740400 740610 740710 740721 740811 740819 740821 740829 740911 740919 740921 740931 741021 741110 741121 741122 741210 741220 741300 741533 741820 741991 741999 750210 750220 750400 750512 750522 750620 750712 750890 760110 760120 760200 760410 760421 760429 760511 760521 760529 760611 760612 760711 760719 760720 760810 760820 760900 761010 761090 761210 761290 761510 761520 761610 761699 780110 790111 790112 790120 790310 790400 790500 790700 800110 810194 810196 810199 810210 810294 810295 810299 810320 810390 810411 810590 810820 810830 810890 810920 810990 811090 811100 811219 811292 811299 811300 820110 820130 820140 820150 820160 820190 820210 820220 820231 820239 820240 820291 820299 820310 820320 820330 820340 820411 820412 820420 820510 820520 820530 820540 820551 820559 820560 820570 820590 820600 820713 820719 820730 820740 820750 820760 820770 820780 820790 820810 820820 820830 820840 820890 820900 821000 821110 821191 821192 821193 821194 821210 821220 821290 821300 821410 821420 821490 821520 821599 830110 830120 830130 830140 830160 830210 830220 830230 830241 830242 830249 830250 830260 830300 830400 830510 830520 830590 830610 830629 830630 830710 830790 830810 830820 830890 830910 830990 831000 831110 831120 831130 831190 840140 840212 840219 840220 840290 840310 840390 840410 840490 840510 840682 840690 840721 840729 840732 840733 840734 840790 840810 840820 840890 840991 840999 841013 841090 841111 841112 841121 841122 841181 841182 841191 841199 841221 841229 841231 841239 841280 841290 841311 841319 841320 841330 841340 841350 841360 841370 841381 841382 841391 841410 841420 841430 841440 841451 841459 841460 841480 841490 841510 841520 841581 841582 841583 841590 841610 841620 841630 841690 841710 841720 841780 841790 841810 841821 841829 841830 841840 841850 841861 841869 841891 841899 841911 841919 841920 841931 841932 841939 841940 841950 841960 841981 841989 841990 842010 842091 842111 842119 842121 842122 842123 842129 842131 842139 842191 842199 842211 842219 842220 842230 842240 842290 842310 842320 842330 842381 842382 842389 842390 842410 842420 842430 842481 842489 842490 842511 842519 842531 842539 842541 842542 842549 842611 842612 842619 842620 842630 842641 842649 842691 842699 842710 842720 842790 842810 842820 842831 842832 842833 842839 842840 842860 842890 842911 842919 842920 842940 842951 842952 842959 843010 843020 843031 843039 843041 843049 843050 843061 843069 843110 843120 843131 843139 843141 843143 843149 843210 843221 843229 843230 843240 843280 843290 843311 843319 843320 843330 843340 843351 843352 843353 843359 843360 843390 843410 843420 843490 843510 843610 843621 843629 843680 843699 843710 843780 843790 843810 843820 843830 843840 843850 843860 843880 843890 843910 843920 843930 843991 843999 844010 844110 844120 844130 844140 844180 844190 844230 844250 844311 844313 844316 844317 844319 844331 844332 844339 844391 844399 844400 844511 844512 844513 844519 844530 844540 844590 844630 844711 844720 844790 844811 844900 845011 845012 845019 845020 845090 845110 845121 845129 845130 845140 845150 845180 845210 845221 845229 845290 845310 845320 845380 845420 845430 845490 845521 845522 845530 845590 845610 845620 845630 845690 845710 845720 845730 845811 845819 845891 845899 845921 845929 845931 845939 845940 845951 845959 845961 845969 845970 846011 846019 846021 846029 846031 846039 846040 846090 846120 846130 846140 846150 846210 846221 846229 846231 846239 846241 846249 846291 846299 846310 846320