Infrastructural support

Capital investment protection and foster

Federal Law No. 69-FZ ‘On protection and foster of capital investment in the Russian Federation’, dated April 1, 2020, introduces a new instrument for the investment project implementation with the use of state support measures, i.e., the ‘Agreement on the protection and foster of capital investment’ (APFCI)

Subsidies in the amount of no more than 50% of the actual incurred costs for the facilities of the maintaining infrastructure, and 100% for related infrastructure facilities for reimbursing the following costs:

  • for the creation (building), modernization and (or) reconstruction of facilities of the maintaining and (or) related infrastructures, necessary for the implementation of the investment project
  • for paying the interest on loans, coupon yield on bonded loans involved to create (build), modernize and (or) reconstruct the facilities of the of the maintaining and (or) related infrastructures necessary for the implementation of the investment project

Additionally, the law lays the foundation for the creation of a unified register of all state (municipal) support measures applied in the Russian Federation. This will be an important step towards the systematization of these measures and control over their provision.

Infrastructural support for investors in accordance with the Resolution No. 1704, 1705 of the Government of the Russian Federation:

Resolution of the Government of the Russian Federation No. 1704 ‘On approval of the Rules for the determination of new investment projects, for the implementation of which the budget funds of a subject of the Russian Federation (released as a result of a reduction in the amount of debt repayment by the subject of the Russian Federation to the Russian Federation on budget loans) are to be transferred for the implementation of budgetary investments to the infrastructure facilities by the subject of the Russian Federation’, dated October 19, 2020 

Resolution of the Government of the Russian Federation No. 1705 ‘On approval of the Rules for the relief of the debt of a subject of the Russian Federation to the Russian Federation on budget loans and the list of tax incomes related with the implementation of new investment projects, and to be credited to the federal budget, and on which the Government of the Russian Federation has the right to write-off the debt of the subjects of the Russian Federation on budget loans in the amount of actual receipt of funds’, dated October 19, 2020

  • For new legal entities implementing investment projects with putting fixed assets into operation after January 1, 2021
  • Infrastructure facilities are understood as the objects of transport, engineering, energy and communal infrastructures necessary for the implementation of a new investment project
  • Budget funds of the Republic of Karelia can be used to pay for the services for the design and exploration work and work on the development of design and estimate documentation for infrastructure facilities
  • This mechanism is implemented by transferring budgetary investments to state-owned objects or in the form of a subsidies for reimbursing the costs incurred by the investor

For the Arctic zone residents

Resolution of the Government of the Russian Federation No. 297 ‘On approval of the Rules for the selection of investment projects planned for implementation in the Arctic zone of the Russian Federation’, dated March 18, 2020

  • As support measures for large-scale investment projects, federal budget subsidies are provided for the capital investments in infrastructure facilities
  • The investment site must be located in the Arctic zone of the Russian Federation
  • The total cost of the investment project is more than 300 000 000 rubles
  • The subsidy amount can be no more than 20% of the total amount of private investment for the project implementation
Investment portal of the Republic of Karelia