New legislation for investors

1. New in legislation (changes that have entered into force)

- The government has approved the updated Consolidated Strategy for the Development of the Russian Manufacturing Industry until 2030 and for the period until 2035.

Order of September 9, 2023 No. 2436-r.

Increasing the share of the manufacturing industry in the structure of gross domestic product to 15.45% over 12 years, increasing the manufacturing index by 55% compared to the base year 2019, increasing the number of organizations carrying out technological innovations from 28 to 45%, doubling the physical volume investment and labor productivity in the industry - these and other goals are included in the updated Consolidated Strategy for the Development of the Russian Manufacturing Industry, which was approved by order of the Government.

The strategy also includes new sections devoted, among other things, to specialized mechanical engineering, mechanical engineering for the food and processing industries, environmental engineering, hydrogen, electrical and cable industries.

The document also reflects the tasks of digital transformation of the industry. Among the stated plans are the creation of an effective infrastructure and system to support the implementation of Russian software and hardware and software systems, the formation of a new employment model that takes into account the further development of automation and robotization of industry.

- The Strategy for the development of congress and exhibition activities in Russia was approved

Order of the Government of the Russian Federation of September 13, 2023 N 2461-r

The government has approved the Development Strategy of the congress and exhibition industry until 2030. Its goal is to increase the efficiency of promoting Russian goods and services, as well as the results of scientific and educational activities, to domestic and foreign markets through exhibitions, congresses and forums. Among the tasks that need to be solved to achieve it are improving the quality and availability of congress and exhibition services, training personnel, improving the system for collecting and analyzing statistical data, and creating and developing a congress and exhibition infrastructure.

In addition, the introduction of digital technologies will help improve the level of the industry. An important area of work in this area will be the creation of a congress and exhibition marketplace and an electronic system for assessing the quality of services provided. It is also envisaged to expand the practice of organizing digital exhibition pavilions and creating mobile applications for navigating through various exhibitions.

The implementation of the Strategy will be ensured by the Ministry of Industry and Trade.

- The Ministry of Industry and Trade plans to ensure the price competitiveness of Russian products through subsidies

Draft Decree of the Government of the Russian Federation "On approval of the Rules for the provision of subsidies from the federal budget to consumers of industrial products in order to increase the share of Russian industrial products used" (prepared by the Ministry of Industry and Trade of Russia on August 31, 2023)

The Ministry of Industry and Trade proposes to subsidize consumers of industrial products in order to increase the share of Russian industrial products used.

The consumer will be compensated for up to 100% of the difference in the cost of Russian and foreign equipment to ensure the price competitiveness of Russian products.

- Regions will receive a single subsidy for tourism development

Draft Decree of the Government of the Russian Federation "On amendments to the state program of the Russian Federation "Tourism Development" and invalidation of Decree of the Government of the Russian Federation of June 17, 2022 No. 1098 and certain provisions of some acts of the Government of the Russian Federation" (prepared by the Ministry of Economic Development of Russia on September 14, 2023 )

Rules have been developed for providing regions with a single subsidy to support tourism development projects in the following areas:

- support for public initiatives of organizations and entrepreneurs to create and develop beaches and national tourist routes;

- support for the development of tourism infrastructure within the framework of projects of organizations and entrepreneurs for the acquisition of tourist equipment, for the organization of year-round operation and expansion of accessibility of swimming pools, for the development of new tourist routes, for the creation of electronic guides, as well as for the creation and development of an accessible tourist environment for persons with disabilities ;

- support and promotion of events;

- implementation of regional programs for the development of the public territory of the municipality.

Specific events will be determined by the regions themselves.

- On the selection of investment projects for the construction of solar, wind and hydropower generation facilities

Order of the Government of the Russian Federation dated September 21, 2023 No. 2537-r On introducing amendments to the order of the Government of the Russian Federation dated March 24, 2022 No. 594-r

In 2024-2035 Competitive selection of investment projects for the construction of generating facilities operating on the basis of the use of renewable energy sources will be carried out. We are talking about solar and wind generation facilities, and hydroelectric generation. In this case, the agreement on joining the wholesale market trading system establishes:

- the minimum amount of reduction in the efficiency indicator of the generating facility specified in the application submitted at the second stage of selection, relative to the value of this indicator specified in the previous application accepted in relation to this facility;

- conditions for extending the period for submitting applications depending on the submission of applications at the second stage of selection in relation to generating facilities of the corresponding type and the values of the efficiency indicator of the generating facility specified in such applications.

- The procedure for concluding a SPIC will change

Draft Decree of the Government of the Russian Federation "On Amendments to the Rules for Concluding Special Investment Contracts" (prepared by the Ministry of Industry and Trade of Russia on September 20, 2023)

The rules for concluding special investment contracts will be clarified.

Cases will be prescribed when the volume of investments for the entire period of validity of the SPIC, provided for by the schedule of investment (spending) of funds (by year), may be less than the total volume of expenses and lost budget revenues generated in connection with the implementation of incentive measures provided for in the contract. This will be possible by decision of the Government if the terms of the SPIC concluded before March 1, 2022 are changed.

Requirements for investors will be adjusted.

- Subsidy for investment deduction for regions that have successfully implemented the regional investment standard

Decree of the Government of the Russian Federation of September 27, 2023 No. 1571 “On introducing amendments to paragraph 3 of Decree of the Government of the Russian Federation of July 12, 2021 N 1161”

The Ministry of Economic Development must submit to the Ministry of Finance by November 15, 2023 information about the regions that have confirmed the implementation of the Regional Investment Standard system. Regions that have confirmed the implementation of the standard receive the right to apply for subsidies for investment tax deductions.

- Reimbursement of part of the costs of industrial enterprises of Tatarstan

Resolution of the Cabinet of Ministers of the Republic of Tatarstan dated September 27, 2023 N 1187 "On approval of the Procedure for providing subsidies in 2023 from the budget of the Republic of Tatarstan to reimburse industrial enterprises for part of the costs of paying the first installment (advance payment) when concluding an equipment leasing agreement (agreements) with Russian leasing companies organizations"

The goals, conditions and mechanism for providing subsidies from the budget of the Republic of Tatarstan in 2023 to reimburse industrial enterprises for part of the costs of paying the first installment (advance) when concluding an equipment leasing agreement (agreements) with Russian leasing organizations have been determined.

Subsidies are provided based on the results of a selection conducted by the Ministry of Industry and Trade of the Republic of Tatarstan in the form of a competition. Requirements for subsidy recipients and selection criteria have been established. The selection procedure is regulated.

The subsidy is provided in an amount of no more than 80% of the costs actually incurred by the recipient of the subsidy and in an amount not exceeding 20 million rubles, and (or) in an amount not exceeding 50% of the cost of the equipment.

The subsidy is provided to reimburse part of the costs incurred no earlier than January 1, 2021.

- The program for supporting industrial clusters has been clarified

Decree of the Government of the Russian Federation of September 28, 2023 No. 1585 “On amendments to Decree of the Government of the Russian Federation of July 31, 2015 N 779”

According to the changes, organizations that provide production services can become participants in industrial clusters and count on government support.

Enterprises that produce import-substituting products are no longer required to separately account for the salaries of employees involved in the implementation of import-substituting projects. The list of documents submitted by specialized cluster organizations to confirm compliance with the requirements has been clarified.

- The rules for subsidizing investment projects for the creation of glampings will be clarified

Draft Decree of the Government of the Russian Federation "On amendments to paragraph 5 of Appendix No. 10 to the state program of the Russian Federation "Tourism Development" (prepared by the Ministry of Economic Development of Russia on September 26, 2023)

It is proposed to adjust the rules for subsidizing investment projects to create modular non-capital accommodation facilities.

If the region sends an official letter to the Ministry of Economic Development about the impossibility of achieving the value of the result of using the subsidy in 2023, both due to force majeure circumstances and other objective reasons, it will be allowed to achieve the value of the corresponding result of using the subsidy in 2024.

- Plots of public property can be purchased without bidding for the implementation of large-scale investment projects

Decree of the Government of the Russian Federation of October 2, 2023 N 1627 “On introducing amendments to paragraph 1 of Decree of the Government of the Russian Federation of April 9, 2022 N 629”

In 2023, legal entities can acquire public ownership or lease of land plots without bidding for the implementation of large-scale investment projects.

We are talking about projects involving the construction of a stadium and other sports facilities, as well as the obligation of a legal entity to carry out, at its own expense, the demolition of real estate located on such a plot of land, which is in regional or municipal ownership, before concluding a purchase and sale or lease agreement.

- Measures to stimulate the attraction of investors to Tatarstan

Law of the Republic of Tatarstan dated September 29, 2023 N 89-ZRT "On amendments to Article 13 of the Law of the Republic of Tatarstan "On investment activities in the Republic of Tatarstan" and Article 3 of the Law of the Republic of Tatarstan "On the property tax of organizations"

Tax benefits have been established for investment entities implementing investment projects with a volume of capital investments of at least 10 billion rubles. in accordance with the agreement on the implementation of the investment project and carrying out in the territory of the Republic of Tatarstan the production of ethylene by pyrolysis at production facilities with a design capacity of at least 500 thousand tons of ethylene per year.

The property of such organizations, put into operation no earlier than January 1, 2022, is exempt from taxation.

The tax benefit is provided starting from the 1st day of the month following the month of registration of the specified property as an object of taxation, for the duration of the agreement on the implementation of the investment project, but not more than 7 years.

The conditions for providing tax benefits have been determined, including fulfilling the conditions stipulated by the business plan, ensuring revenues to the consolidated budget of the republic at a rate not lower than for the industry as a whole in the Russian Federation for the three years preceding the reporting year.

In addition, the Law on Investment Activities enshrines a provision allowing for the provision of tax benefits to subjects of investment activities implementing investment projects in the mechanical engineering industry for a period of up to 13 years from the date of commencement of investments.

Support measures for the implementation of investment projects in Tatarstan

Law of the Republic of Tatarstan dated September 29, 2023 N 87-ZRT "On Amendments to the Land Code of the Republic of Tatarstan"

The criteria for providing a land plot in state or municipal ownership for rent without holding a tender for the implementation of a large-scale investment project are being adjusted.

The criterion for the size of the total area of residential premises is at least 5 thousand square meters. m when implementing an investment project for the construction of an apartment building and (or) other capital construction projects with the provision of one or more of the support measures for citizens affected by the actions (inaction) of unscrupulous developers, whose funds were raised for the construction of apartment buildings, reduced to 3 thousand sq. m. . m. The amount of minimum support has been reduced from 50 million rubles. up to 30 million rubles

- New form of alternative application and clarification of the initiator’s application form for concessions

On 10/01/2023, Decree of the Government of the Russian Federation dated 09/16/2023 No. 1515 “On approval of the application form for readiness to participate in the competition for concluding a concession agreement and on amending the form of proposal for concluding a concession agreement with the person taking the initiative to conclude a concession agreement” came into force agreement" (hereinafter referred to as Resolution No. 1515).

Resolution No. 1515 approved the application form for readiness to participate in the competition for concluding a concession agreement. This is the so-called alternative application form. Therefore, both the project proponent and the alternative applicant must certify the same general information. In particular, the alternative applicant must confirm information about the availability of funds or the possibility of obtaining them in the amount of at least 5% of the volume of investments declared in the draft concession agreement.

Also, Resolution No. 1515 approved changes that are made to the very form of the proposal to conclude a concession agreement with the person taking the initiative to conclude a concession agreement (Resolution of the Government of the Russian Federation dated March 31, 2015 No. 300).

It is established that:

1. The person taking the initiative to conclude a concession agreement must provide additional information:

- about the absence of suspension of the applicant’s activities in the manner established by the Administrative Code;

- about the lack of registration of the legal entity - the applicant in offshore zones.

2. The initiator also provides “Information about the applicant’s absence of an unfulfilled obligation to pay taxes, fees, penalties, fines and interest payable in accordance with the legislation of the Russian Federation on taxes and fees.”

3. It is important to clarify what documents can confirm “the applicant’s availability of funds or the ability to obtain them in the amount of at least 5% of the volume of investments declared in the draft concession agreement.” According to Resolution No. 1515, to confirm this information, attach “a copy of the supporting document issued by the credit institution (including a bank account statement, a letter from the credit institution about the possibility of providing the applicant with funds for the implementation of the project) <…>.” Now letters from credit institutions about the possibility of providing funds are normatively acceptable to confirm the availability of financial resources, which resolves situations related to this issue.

Decree No. 1515 also contains some other changes.

- The government has expanded the possibilities of the tool for pre-trial appeal against the actions of control authorities

Resolution No. 1634 of October 4, 2023

The government continues to work to improve control and supervisory activities to reduce the administrative burden on business. A resolution was signed to amend a number of existing regulations that will help achieve this goal.

One of these changes concerns the possibility of appealing orders issued as a result of preventive measures through the pre-trial appeal subsystem on the public services portal.

Until now, filing a complaint was only possible if the inspection number or other control measure was indicated. Now, when appealing an order issued, for example, during a preventive visit, which cannot be refused, you can indicate the account number of such a visit or the number of the order. The service guarantees transparency of the progress of consideration of applications and allows you to track it in real time.

The new decree also stipulates the extension of restrictions on inspections and other control measures in the new regions until 2026. Previously, such restrictions were in effect until 2024.

- Development of charging infrastructure for electric vehicles: the subsidy procedure has been adjusted

Decree of the Government of the Russian Federation of October 6, 2023 No. 1647 “On amendments to Appendix No. 33 to the state program of the Russian Federation “Energy Development”

It is clarified that subsidies are allocated including:

- territorial network organizations connecting charging infrastructure facilities for electric vehicles to their networks;

- manufacturers of these objects.

Lists of documents have been established to be submitted to the authorized regional body to receive funds for these purposes.

- About the launch of the second stage of the GIS "Capital Investments"

Decree of the Government of the Russian Federation of October 5, 2023 No. 1639 "On amendments to Decree of the Government of the Russian Federation of May 28, 2022 N 967"

From June 1, 2025, it was decided to carry out trial operation of the Capital Investments GIS as part of the second stage. The following functions will be provided:

- monitoring the implementation of the terms of agreements on the protection and promotion of capital investments and the conditions for the implementation of relevant investment projects;

- creation and use of machine-readable forms of documents for concluding agreements;

- storage and display of information to be placed in the GIS for users;

- formation and maintenance of a register of agreements, including data on related agreements.

It was decided to launch the GIS within the second phase before January 1, 2026.

The composition of information to be placed in the GIS has been updated.

- The government will support companies developing technologies for the production, transportation and storage of hydrogen

Resolution of October 11, 2023 No. 1679

The state will compensate scientific organizations, enterprises and companies for up to 70% of the costs of developing technologies for the production, transportation and storage of hydrogen, which will then be used in the implementation of large projects in the field of hydrogen energy. The decree approving the rules for providing subsidies for these purposes was signed by Prime Minister Mikhail Mishustin.

Funds will be allocated to organizations that have passed the competitive selection process of the Ministry of Energy. They can be used to pay employees directly involved in the development of new technologies, material costs associated with such research, the purchase of Russian-made raw materials, and the creation of pilot batches of products. The subsidy can be provided for up to three years.

1. Legislative initiatives

- They want to expand VAT benefits for Russian manufacturers of medical devices

Dossier on draft federal law No. 450827-8 “On Amendments to Articles 164 and 165 of Part Two of the Tax Code of the Russian Federation” (introduced on October 3, 2023 by the Government of the Russian Federation)

On October 4, 2023, a draft amendment to the Tax Code of the Russian Federation was submitted to the State Duma for consideration, providing for the introduction of a mechanism for refunding VAT paid by Russian manufacturers of medical devices when they purchased materials and components. A list of documents required for this has been determined.

It is also proposed to cancel preferential taxation on the import of foreign medical products.

- The government has proposed a number of measures to reduce construction time in the priority development area

Dossier on draft federal law No. 452658-8 “On amendments to certain legislative acts of the Russian Federation” (introduced on October 5, 2023 by the Government of the Russian Federation)

On October 6, 2023, a bill was submitted to the State Duma for consideration, providing for a number of measures to optimize capital construction in the ASEZ.

In particular, the period during which a local government body is required to issue an urban development plan for a land plot is being reduced from 14 to 10 working days. A 5-year validity period is fixed for the technical conditions issued to management companies and residents of priority development areas for connecting capital construction facilities to engineering and technical networks, as well as the technical requirements and conditions mandatory for architectural and construction design for the purpose of reconstruction and overhaul of existing linear facilities.

In addition, in order to grant the status of a resident of a priority development area, it is proposed to take into account the state of the applicant’s settlements with the budget as of the first day of the month in which the application is submitted.

- Rules for integrated development of territories will be improved

Dossier on draft federal law No. 452646-8 “On amendments to the Town Planning Code of the Russian Federation and certain legislative acts of the Russian Federation” (introduced on October 5, 2023 by the Government of the Russian Federation)

On October 5, 2023, a bill was submitted to the State Duma, according to which organizations ensuring the integrated development of the territory will be able to make decisions on the preparation of documentation on its planning, as well as contact the rights holders of the networks to conclude an agreement on connecting capital construction facilities.

It will be possible to engage in comprehensive development of the territory in accordance with previously approved documentation on its planning.

It will be possible to prepare documentation on the planning of the territory simultaneously with the preparation of changes to the program for the comprehensive development of municipal, transport and social infrastructure.

The reconstruction and removal of engineering and technical support networks is simplified as part of the integrated development of territories.

State information systems for supporting urban planning activities will contain decisions and agreements on the integrated development of the territory, as well as other information, documents and materials.

It will be possible to exclude an apartment building from the decision on the integrated development of a residential area before a decision is made to hold a tender for the right to conclude an agreement.