Agreement on Protection and Promotion of Investments
Agreement on Protection and Promotion of Investments
An Agreement on Protection and Promotion of Investments is an agreement concluded between an investor and a public legal entity (the Russian Federation, a constituent entity of the Russian Federation, or a municipal entity). Under this agreement, the organization implementing the project is entitled to expect measures of state support financed from the federal budget and/or the regional budget.
Within the framework of the Special Investment Contract, an investor can benefit from:
Stabilization Clause, which guarantees that no legislative acts worsening the conditions for investment activities will be applied, as well as the stability of tax conditions (including income tax, property tax, transport tax, land tax, VAT payment deadlines and reimbursement procedures, and the introduction of new taxes and fees).
Reimbursement of Costs at the expense of the federal budget and/or the budget of a constituent entity of the Russian Federation for the creation, modernization, or reconstruction of supporting or associated infrastructure facilities necessary for the implementation of the investment project.
The maximum amount of cost reimbursement for supporting infrastructure is up to 50% of the actual costs incurred, with a reimbursement period of up to 5 years; for associated infrastructure, it is up to 100% of the actual costs incurred, with a reimbursement period of up to 10 years.