Agreement
on the protection
and promotion
of investment

Business can conclude an agreement on the protection and promotion of investment (appi) with Moscow, which gives advantages in the implementation of an investment project, namely the invariability of tax benefits and a guarantee of state support for the entire term of the agreement.
WHAT IT GIVES
The invariability of regulatory legal acts: key taxes, conditions for land use and the implementation of urban planning activities are fixed at the time of the conclusion of the agreement and remain unchanged throughout the entire period of the investment project.

Government support under the agreement: reimbursement of costs and interest on loans for the creation of transport, energy, utilities, social, digital infrastructure used for the implementation of the investment project.
WHO CAN CONCLUDE
Russian investors implementing investment projects.
METHODS OF CONCLUSION
At the initiative of the state through a competitive procedure.

At the initiative of the investor.
OR EXAMPLE, IF THE MAIN RATE OF PROFIT TAX AT THE DATE OF THE AGREEMENT IS 20 %, IT WILL REMAIN AT THE SAME LEVEL FOR THE INVESTOR COMPANY EVEN IF THE TAX IS INCREASED FOR ALL OTHER TAXPAYERS.
200 MILLION RUBLES IS THE MINIMUM INVESTMENT AMOUNT FOR APPI CONCLUDED BY MOSCOW WITHOUT THE PARTICIPATION OF THE RUSSIAN FEDERATION, REGARDLESS OF THE INDUSTRY.
N.B
APPI cannot be applied in a number of areas: gambling, production of tobacco products, alcoholic beverages and liquid fuels, extraction of crude oil and natural gas, wholesale and retail trade, housing construction (except for housing construction under contracts), business centers and shopping malls, as well as the activities of financial institutions.
MINIMUM INVESTMENT FOR FEDERAL APPI:
  • 250 mln rub – for medicine, education, culture and sport;
  • 500 mln rub – for agriculture, ecology and it;
  • 1.5 bln rub – starting amount of investments for processing enterprises;
  • 5 bln rub – in other industries.
TERMS OF CONSIDERATION
Up to 33 working days (ncluding 5 working days for consideration of the application by the subject of the Russian Federation).

For APPI, that are concluded by moscow without participation of the Russian Federation – 8 working days. On the results, the decision is made on the possibility of conclusion of the SZPK.
LIST OF DOCUMENTS
  • APPI project.
  • Copies of the constituent documents of the applicant.
  • Copy of the document confirming the state registration of the applicant as a Russian legal entity.
  • Information about the applicant: information about the amount of its authorized capital, the composition of participants and information about their ability to control the activities of the applicant, a copy of the annual financial statements and (or) the annual consolidated financial reporting.
  • Business plan that includes information on the size and timing of the planned capital investment.
  • Description of the new investment project.
  • Financial model of the investment project.
  • Building permit.
  • List of acts (decisions) of the russian federation and the subject of the Russian Federation stabilized within the framework of the agreement.
DEPENDING ON THE AMOUNT OF INVESTMENTS, THE AGREEMENT IS SIGNED FOR A PERIOD FROM 6 TO 20 YEARS.

AN AGREEMENT CAN BE SIGNED FOR 20 YEARS IF THE CAPITAL INVESTMENT IS AT LEAST 10 BILLION RUBLES.
REFERENCE
The first Moscow APPI was signed in December 2020 – between the Government of the Russian Federation, Moscow and the "R-Opra" company.

The agreement was concluded for a period of 6 years, its subject was an investment project for the construction of a modern pharmaceutical enterprise at the "Alabushevo" site in the "Technopolis Moscow" special economic zone.

Investments in the project will amount to 8.5 billion rubles, of which 2.3 billion rubles will be own capital investments.

Under the agreement, the investor is guaranteed the invariability of land, town planning, tax legislation. In addition, a guarantee of state support for this period is assigned to him. The city together with the Russian Federation assumes obligations to compensate for damage in cases of changes in legislation, as well as in the case of decisions that will entail a change in the timing and amount of state support for the investor.

The R-Opra company has already received a permit from Moscow to build a plant on the territory of the SEZ. Regional property taxes, profits, and transport tax will be zeroed here for the investor.

Also in December 2020, two more similar agreements were concluded:
  • between the Government of the Russian Federation, Moscow, the governor of the Yaroslavl Region and R-Pharm: the term of the agreement is 6 years, the volume of investments is 8.4 billion rubles.
  • between the Government of the Russian Federation, Moscow and Medsi Group of Companies JSC: the term of the agreement is 6 years, the volume of investments is 7.83 billion rubles.
Contacts:

The Ministry of Economic Development of the Russian Federation, if the initiator is an investor: it is necessary to send a statement and the corresponding package of documents for assessment, based on the results of which a decision on the possibility of concluding a APPI is made.

Moscow City Investment and Industrial Policy Department for APPI, concluded by Moscow without the participation of the Russian Federation.
E-mail: pressprom@mos.ru
Audience: 16+