THE FIRST INVESTMENT PROTECTION AND PROMOTION AGREEMENT SIGNED IN MOSCOW

Under the Agreement, an investor will build a pharmaceutical factory in the special economic zone Technopolis Moscow, and in return will receive a guarantee of invariability of the state support conditions.

The first Investment Protection and Promotion Agreement was signed in Moscow enabling a modern pharmaceutical enterprise to be built in the special economic zone Technopolis Moscow at the Alabushevo site.

The concluded Agreement guarantees the investor the invariability of the state support conditions.

The agreement was signed by the Ministry of Economic Development of the Russian Federation, representatives of regional authorities of nine Russian regions and representatives of the applicant companies.

“The Investment Protection and Promotion Agreement is a powerful new tool to support investors. Stabilization of legislation, guarantee of its invariability create comfortable conditions for conducting investment projects, significantly improve the investment climate. At the regional level, Moscow will independently be able to conclude such agreements from April 2, 2021. We expect that the new mechanism for protecting and encouraging investment will be in demand and will have a positive effect on the development of the city's economy”, revealed Vladimir Efimov, Vice-Mayor of Moscow for Economic policy and Land-property affairs.

The minimum investment in projects for such agreements concluded with the participation of the Russian Federation is different for each industry. Depending on the volume of investments, agreements are signed for a period of six to 20 years. “The term of the Agreement signed today between the Government of Russia, Moscow and R-Opra LLC will be six years. Investments in the project - 8.5 billion rubles, of which own capital investments - 2.3 billion rubles. Under the Agreement, the investor is guaranteed the invariability of land, urban planning, tax legislation. In addition, a guarantee of state support for this period is assigned to him. The city, together with the federal authorities, undertakes 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”, clarified Alexander Prokhorov, Head of the Department for Investment and Industrial policy of Moscow.

The R-Opra company has already received a permit from the capital to build a plant on the territory of the special economic zone providing the investor with zeroed regional property taxes, profits, and transport tax.

Following Moscow, the Amur, Vologda, Leningrad, Kaliningrad, Oryol, Tver, Krasnodar regions and the Republic of Tatarstan have signed the first federal Investment Protection and Promotion Agreement.