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MIL OSI Translation. Region: Russian Federation –

The Russian government is launching a new unified mechanism for supporting investments in the regions this year. This was announced by First Deputy Prime Minister Andrei Belousov at a meeting with Russian President Vladimir Putin on the implementation of the messages to the Federal Assembly.

The mechanism is primarily aimed at supporting medium-sized projects. The work is carried out jointly with the State Council within the framework of the Investment Commission under the leadership of the Governor of the Sakhalin Region Valery Limarenko.

In particular, clear, unified and public rules for the work of all participants in the investment process – investors, government agencies and resource supplying organizations – will be introduced in each region. These rules cannot be changed unilaterally.

Andrey Belousov listed five key elements of the new mechanism:

– an investment declaration, which will become the standard for the region to present its investment goals and priorities for at least a five-year period;

– a set of investment rules describing specific step-by-step algorithms for solving typical investor tasks, such as obtaining the necessary permits, connecting to infrastructure, obtaining benefits and financial support, hiring personnel;

– an interactive investment map of the region with all the necessary information for the investor, including the planned placement of objects by decisions of federal, regional and municipal authorities;

– creation of a consulting mechanism, which is most important for business, – communication of investors with power structures in the regions. These are the so-called investment committees;

– the launch of operational centers for supporting investment projects in the regions in the “one window” mode – development agencies responsible for promoting each specific project in a given constituent entity of the Federation.

In 2021, it is planned to introduce these standards in five pilot regions: Voronezh, Sakhalin, Moscow, Nizhny Novgorod and Tula regions. In 2022, it is planned to use the standard for supporting investment projects in at least 15 regions.

In this regard, Andrei Belousov proposed to link the provision of compensation for investment tax deduction in the regions with the introduction of an investment standard and a public register of investment projects with their key parameters.

The First Deputy Chairman of the Government also spoke about the implementation of the mechanism of agreements on the protection and promotion of investments (SZPK). At the moment, 36 agreements have been signed for 1.3 trillion rubles, which will create almost 32 thousand new jobs. In addition, applications from companies have been received for the implementation of 73 more new projects worth 1.6 trillion rubles. In total, in 2021, it is planned to conclude 100 federal agreements for almost 2 trillion rubles. By the end of 2024, it is expected to conclude about 600 federal SZPK with a total amount of 12.6 trillion rubles of investments, which will ensure the creation of 63 thousand new jobs. Of these funds, at least 3 trillion rubles should be invested in the economy by the end of 2024.

Currently, work is underway to clarify the rules of the so-called stabilization clause and expand the list of reimbursable costs for the investor. It is being worked out to include in it the payment of interest for a loan at the investment phase, the cost of employing redundant personnel, the cost of implemented R&D results, and a number of others.

It is also planned to automate the procedure for concluding agreements, simplify it and build it on a single digital platform. It is assumed that the possibility of concluding agreements in electronic form will be implemented already this year. The government will soon decide on the operator of the information system being created, after which it will be put into operation.

Andrei Belousov called the third element of the investment incentive system a radical reduction in the time and cost of industrial construction by eliminating excessive regulation and requirements for facilities – but with strict adherence to all safety requirements.

In addition, it is planned to create a new line of financial instruments to stimulate investment activity. Together with the Bank of Russia, a roadmap has been drawn up, consisting of 33 specific measures. By 2024, the Government plans to achieve an increase in the volume of financial resources for investments in the amount of 9-10 trillion rubles per year, which is one and a half times more than in 2020.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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