MONITORING CHANGES IN LEGISLATION FOR THE PERIOD FROM 02/09/2023 TO 03/06/2024

6 March 2024, Wednesday

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

• Regions will be able to receive additional funding for industrial development

Draft Decree of the Government of the Russian Federation "On Amendments to the Decree of the Government of the Russian Federation of April 15

2014 No. 328" (prepared by the Ministry of Industry and Trade of Russia on 02/06/2024)

Regions receive subsidies for the implementation of industrial development programs. To co-finance the activities of regional industrial development funds, an additional competitive selection will be carried out to provide funds from the federal budget of the current financial year.

• The issues of transfer of goods placed under the free customs zone procedure without its completion have been resolved

Order of the Ministry of Finance of Russia dated December 19, 2023 No. 200n “On approval of the Procedure for the transfer by a resident of a special economic zone to another resident of a special economic zone, by a resident of a priority development territory to another resident of a priority development territory, by a resident of the free port of Vladivostok to another resident of the free port of Vladivostok, by a participant in the free economic zone to another participant in the free economic zone or other legal entity whose state registration was carried out on the territory of the Republic of Crimea or the federal city of Sevastopol, and which is not a participant in the free economic zone, rights of ownership, use and (or) disposal..."

Registered on February 13, 2024. Registration No. 77245.

The Ministry of Finance regulated the procedure for transferring rights of ownership, use and disposal of goods placed under the free customs zone (FCZ) procedure, and (or) goods manufactured (obtained) from such goods, without completing the FZ procedure: by a SEZ resident to another SEZ resident; a resident of a priority development area to another resident of a priority development area;

Application forms for the transfer of goods and permission to transfer have been approved.

• FAS, according to new rules, forms the best and worst practices of regional and municipal authorities regarding the development of competition

Order of the Federal Antimonopoly Service of January 19, 2024 N 22/24 “On approval of the Procedure for developing the best practice of adoption by public authorities of the constituent entities of the Russian Federation and local government bodies of acts and implementation of actions aimed at developing competition, and the worst practice of adoption by public authorities of the constituent entities Russian Federation and local government bodies of acts and implementation of actions that are anti-competitive in nature"

The procedure for the formation of best practices by regional and municipal bodies in adopting acts and implementing actions aimed at developing competition (the “white book”), and the worst practices that are anti-competitive in nature (the “black book”) have been updated. The composition of both books and the formats for presenting documents for them have been clarified.

The previous order was declared invalid.

• Regions can more actively use the mechanism of new investment projects

Decree of the Government of the Russian Federation of February 14, 2024

No. 154 "On amendments to the Decree of the Government of the Russian Federation of October 19, 2020 N 1704"

The rules for determining new investment projects have been adjusted, for the purpose of implementing which funds from the regional budget, released as a result of reducing the volume of repayment of debt to the Russian Federation on budget loans, are directed to the creation of infrastructure facilities, to connect capital construction projects to engineering support networks.

It is possible to direct the released funds to the creation (development) of the infrastructure of technology parks in the field of high technologies, as well as to certain activities, the financial support of which began after January 1, 2021, for the creation (development) of infrastructure facilities necessary for the implementation of new investment projects. The selection procedure for projects implemented by SEZ residents has been simplified.

• Russia ratified an agreement on the creation of free, special and special economic zones in the Customs Union

Federal Law of February 26, 2024 N 24-FZ "On the ratification of the Agreement on free (special, exclusive) economic zones in the customs territory of the customs union and the customs procedure of the free customs zone"

The President of the Russian Federation signed the Law on the ratification of the Agreement on free (special, exclusive) economic zones in the customs territory of the Customs Union and the customs procedure of the free customs zone.

Free (special, exclusive) economic zones are created in order to promote the socio-economic development of the parties to the agreement, attract investment, create and develop industries based on new technologies, develop transport infrastructure, tourism and the health resort sector, or for other purposes determined during the creation zones

• The Government Commission on Foreign Investments will make recommendations on transactions with foreign shares in Russian companies

Decree of the President of the Russian Federation dated February 26, 2024 No. 143 "On amendments to Decree of the President of the Russian Federation dated August 5, 2022 No. 520 "On the application of special economic measures in the financial and fuel and energy sectors in connection with the unfriendly actions of some foreign states and international organizations"

Transactions (operations) in the financial and fuel and energy sectors that are prohibited can be carried out on the basis of a special decision of the President. In particular, we are talking about the withdrawal of large foreign investors from mining and energy projects.

The Government Commission for the Control of Foreign Investments considers the feasibility of such transactions by decision of the President and prepares a reasoned recommendation. If transactions are aimed at acquiring shares (interests) in financial organizations or establishing control over their shareholders (participants), the preliminary consent of the Bank of Russia is required.

At the same time, the possibility of adopting a special decision of the President without recommendation or consent is preserved.

The Decree comes into force on the date of publication.

• A procedure has been established for the alienation of federal property to attract investment, develop the stock market and the economy

Decree of the Government of the Russian Federation of February 22, 2024 N 208 “On approval of the Rules for the alienation of federal property in order to create conditions for attracting investments, stimulating the development of the stock market, modernization and technological development of the economy” (the document has not entered into force)

The issues of alienation of federal property have been resolved. The goal is to create conditions for attracting investment, stimulating the development of the stock market, modernization and technological development of the economy. The following methods of alienation are provided:

1. at auctions held in the form of an electronic auction in a manner similar to the procedure for the privatization of state and municipal property;
2. without bidding on the terms determined by the instructions or instructions of the President, the Chairman of the Government, his deputy, coordinating the work of the federal executive authority on issues of managing state property;
3. by making federal property as a contribution to the authorized capital of the joint-stock company, as a result of which Russia’s share in this capital will be less than 25 percent plus one share, with the possibility of concluding a shareholders’ agreement;
4. through the public placement of federally owned shares of the joint-stock company in accordance with the rules of the securities market.

Government decisions on the alienation of federal property will provide for the method and timing of alienation, the procedure for determining the price and other conditions of alienation. For transactions with investment conditions, the decision must additionally contain target indicators for achieving such conditions, the procedure for monitoring their implementation, as well as the form and frequency of reporting on the progress of their implementation.

• The procedure for transferring state property to residents of priority development areas has been simplified

Federal Law of February 26, 2024 No. 35-FZ “On Amendments to the Federal Law “On Priority Development Territories in the Russian Federation” (the document has not entered into force)

Amendments have been made to the Law on Priority Development Territories (ADT) to simplify the procedure for transferring property located in an ADZ to residents.

In particular, it has been established that the management company, on the right of ownership or lease, is transferred to the real estate located in the ASEZ, which is in state or municipal ownership, as well as other state property that is necessary for the functioning of the ASEZ and the activities of its residents. The transfer of such property and its disposal will be carried out in accordance with the procedure established by the Government.

The law comes into force 90 days after the day of its official publication.

• The requirements for holding an electronic competition for the right to conclude a concession agreement or a public-private partnership agreement have been determined

Decree of the Government of the Russian Federation of February 29, 2024 No. 246 "On the requirements for holding an open competition for the right to conclude a concession agreement, a public-private partnership agreement, an agreement on a municipal-private partnership in electronic form"

From March 1, 2024, an open competition for the right to conclude a concession agreement, public-private or municipal-private partnership agreement can be conducted electronically.

The government approved the rules for its organization. In particular, the competition is held on the electronic platform of an operator included in the government list. The procedure is carried out by the grantor (public partner) or a person who can exercise the powers or individual rights and obligations of the grantor (public partner) on the electronic platform chosen by him after accreditation.

Requirements have been established for banks in which the operator of an electronic platform can open accounts to account for money provided as security for an application for participation in a competition.

The resolution comes into force on March 1, 2024 and is valid until March 1, 2029.

The procedure for holding a competition for the right to conclude a special investment contract has been clarified
Decree of the Government of the Russian Federation of February 29, 2024

N 238 “On Amendments to Certain Acts of the Government of the Russian Federation” (the document has not entered into force)

The deadline for submitting applications by competition participants for the right to conclude a special investment contract cannot be later than 10 days after posting the notice of the competition in the state industrial information system. The notice is posted in the system no later than 10 days after the decision to hold the competition is made.

•   About the tax deduction for the investment protection and promotion agreement

Decree of the Government of the Russian Federation of February 29, 2024 No. 242 “On the form and procedure for filling out a tax deduction notice for an agreement on the protection and promotion of investments”

The form and rules for filling out a notice of tax deduction for an agreement on the protection and promotion of investments have been established.

The deduction is provided in the amount of actual costs incurred, for which the Law on the Protection and Encouragement of Investments provides for the provision of state support measures.

The resolution comes into force on the date of publication.

• Formats for transmitting information about residents of priority development areas to the customs authority have been approved

Order of the Ministry of the Russian Federation for the Development of the Far East and the Arctic dated January 17, 2024 No. 6 “On approval of the format and structure of submission to customs authorities of documents and information provided for in parts 15-17 of Article 13 of the Federal Law of December 29, 2014 N 473- Federal Law "On Priority Development Territories in the Russian Federation", parts 15-17 of Article 11 of the Federal Law of July 13, 2015 N 212-FZ "On the Free Port"

Vladivostok" (the document has not entered into force)

Registered on February 28, 2024. Registration No. 77366.

The Ministry of Eastern Development has approved the format and structure of the submission to the customs authorities:

information on registration of individual entrepreneurs and legal entities as residents of the priority development area;
copies of the agreement on the implementation of activities in the priority development area;
copies of the additional agreement to the agreement on work at the ASEZ;
notifications about making an entry in the register of residents of a priority development area about the termination of resident status.
The management company transmits this data to the customs authority.

The order comes into force on September 1, 2024.

• A new program for subsidizing the creation and expansion of technology parks is being prepared

Draft Decree of the Government of the Russian Federation "On introducing amendments to the state program of the Russian Federation "Development of industry and increasing its competitiveness" and invalidating certain acts of the Government of the Russian Federation" (prepared by the Ministry of Industry and Trade of Russia on 02/16/2024)

It is planned to update the procedure for reimbursement of part of the costs of management companies for the creation or increase in the area of industrial (industrial) parks and industrial technology parks. We are also talking about technology parks in the field of high technology.

The regions will receive subsidies for these purposes. Their selection is envisaged. It is planned, in particular, to reimburse a maximum of 120 thousand rubles. for 1 sq. m of total area of buildings of an industrial technology park, a technology park in the field of high technologies, 150 thousand rubles. - within the framework of the reindustrialization project.