Approval of an Application Form for Concluding a Special Investment Contract
Legal update No 539
Goltsblat BLP advises that the Russian Ministry for Industry and Trade has published Orders "On Approval of an Application Form for Conclusion of a Special Investment Contract" No. 2288 dated 07 August 2015 (hereinafter "Order No. 2288") and "On Approval of the Procedure for Monitoring and Exercising Control over Performance by Investors of Obligations under Special Investment Contracts Concluded Therewith and Reporting Forms Provided by Investors" No. 2289 dated 07 August 2015 (hereinafter "Order No. 2289").
Even though Order No. 2288 came into force on 20 October 2015, the effective date will be 01 January 2019 for the appendix form stipulated thereby to the application for concluding a special investment contract on implementation of the best available technologies in industrial production.
Order No. 2289 is effective from 23 October 2015.
Both documents were adopted to develop Federal Law No. 488-FZ dated 31 December 2014 "On the Industrial Policy of the Russian Federation" and Russian Government Resolution No. 708 dated 16 July 2015 "On Special Investment Contracts for Certain Industries".
Order No. 2288 approves the application form furnished by an investor to the Russian Ministry for Industry and Trade for entering into a special investment contract. Depending on the investment projects to be implemented within the scope of the special investment contracts, three types of appendix to the application have been approved, these stipulating:
establishment and renovation of industrial production (Appendix No. 1);
implementation of the best available technologies in industrial production (Appendix No. 2);
start-up of industrial products without analogues manufactured in the Russian Federation (Appendix No. 3).
Order No. 2289 determines the manner and deadlines for monitoring and exercising control over performance of obligations by investors under special investment contracts.
The Russian Ministry for Industry and Trade conducts monitoring every six months. This includes gathering, consolidating, streamlining and recording information about progress in performance of obligations by investors. An investor furnishes the Ministry with all the requisite information in the format recommended by the relevant appendix to Order No. 2289. Following such monitoring, the Russian Ministry for Industry and Trade sends a letter to the investor about the review of the information provided.
The Russian Ministry for Industry and Trade checks performance by the investor of the obligations stipulated by the special investment contract and achievement of the results (targets) specified therein during project implementation, for the reporting period and by the expiry date of the contract.
Order No. 2289 approves the forms for reporting on performance of obligations by the investor under a special investment contract during the reporting period and on results of investment project implementation under a special investment contract with respect to any of three types of a special investment contract envisaging establishment and (or) renovation of industrial production, implementation of the best available technologies in industrial production or start-up of industrial products without analogues manufactured in the Russian Federation.
The given reports, together with the attached documents, should be provided by the investor to the Russian Ministry for Industry and Trade once the reporting periods end and the special investment contract expires.
Following the review of the documents provided, the Russian Ministry for Industry and Trade drafts an opinion on performance or otherwise by the investor of the obligations under the special investment contract and achievement (full or partial) or otherwise of the stipulated results during the reporting or effective period of the entire special investment contract.
If a constituent entity of the Russian Federation and (or) municipality is party to a special investment contract, the opinion provided by the Russian Ministry for Industry and Trade should be coordinated with the authorised body of the Russian constituent entity and (or) municipality.
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