Government considers making investors’ life easier
5 Nov '19
Last week, the Government introduced amendments for Protecting and Promoting Investment and Developing Investment Activity in the Russian Federation into the State Duma.
The U.S.-Russia Business Council, citing draft bill provisions, underscored that the proposed general investment regime calls for the deferral of up to three years of regulations and federal laws which would worsen investment conditions for companies.
A special regime with an “entrance ticket” would apply to companies investing at least $3.94m in healthcare, education, culture, and sport with an overall project budget of at least $15.75m, with higher investment thresholds for projects in the industrial, agricultural, and digital economy sectors.
The special regime would protect the project from legislative and regulatory changes for the entire project’s lifecycle, not just three years. For major projects investing over $157.50m, there are also mechanisms to guarantee the formula for calculating the tariff rate on services for natural monopolies, as well as export customs duties over a period of six to 20 years.
In an explanatory note, the government estimates that investment in the new framework will total $409.24-613.86bn in 2019-2024. The Duma will now consider the bill during its fall session which ends on December 19th.