Оглавление
Falk Tischendorf. Guide for Investors
GUIDE FOR INVESTORS “Localisation and Setup of Production in Russia” (with access to key regulations)
From the Editor
Wilo sets new standards in the digital age
VUCA is a chance for Russia!
1. Introduction, background
2. Government programs/strategies
3. Market and volatility
4. Localisation in everyday practice
5. What are the current trends that should be considered in Russia, in particular in the automotive industry?
6. After LEAN now VUCA?
Localisation in Russia – based on personal experience
Location of manufacturing – Organisation of production – Localisation, Experience of the manager of a corporate group
Table of contents
Introduction
I. Pharmaceutical Industry
1. State procurements. 1.1. General provisions
1.2. Who is the state or municipal client?
1.3. What is a medicine “Made in Russia”?
1.3.1 CIS Rules 2009
1.3.2 Government Resolution No. 719
1.4. How is a product confirmed as “Made in Russia”?
2. Preference for Russian manufacturers during state procurements
3. Development and support measures. 3.1. Subsidies for manufacturers of Russian medicines
3.1.1 Projects to organise the manufacture of medicines and/or pharmaceutical substances
3.1.2 Organisation and conduct of clinical research on medicines
3.1.3 Reimbursement of part of the costs incurred on the implementation of projects to develop alternative innovative medicines with similar or improved pharmacological qualities
II. Medical Products. 1. Development of the medical industry
2. Implementation of localisation policy
3. Development and support measures
4. State procurements. 4.1. Participation of foreign companies in procurements
4.2. Access to state procurements
4.3. Current access regulations
4.4. Access conditions
4.5. Medical products “Made in Russia”
III. Mechanical Engineering. 1. Focus on localisation/“Buy Local” Rule
1.1. General provisions
1.2. To which products does the rule apply?
1.3. To which parties does the rule apply?
1.4. To which projects does the rule apply?
1.5. How are procurements approved? 1.5.1 Approval of operating characteristics40
1.5.2 Approval of procurements outside the Russian Federation42
2. Priority of products “Made in Russia”
IV. Automotive. 1. Focus on localisation and export
2. State support for the automobile industry. 2.1. “Industrial assembly”
2.2. Replacement of “industrial assembly”
2.3. State procurements of products “Made in Russia” 2.3.1 General provisions
2.3.2 “Made in Russia” products of the automobile industry for state procurements
(i) Government Resolution No. 719
(ii) CIS Rules 2009
(iii) Special investment contract
2.3.3 Confirmation of the manufacture of products in Russia (“Made in Russia”)
(a) Expert Report
(b) ST-1 Certificate
(c) Special investment contract
2.4. Co-financing programme of the Industrial Development Fund
2.4.1 “Components” programme
2.4.2 “Development Projects” programme
2.5. Other subsidies for automobile manufacturers
2.5.1 Subsidy to compensate for some of the costs related to the issue and support of warranty obligations in respect of wheeled vehicles that meet Euro-4 and Euro-5 standards 51 (a) General provisions
(b) Requirements on the manufacturer
(c) Procedure for providing the subsidy
(d) Amount of the subsidy
2.5.2 Subsidy to compensate for some of the costs on the performance of R&D and experimental design work and the testing of wheeled vehicles 52 (a) General provisions
(b) Requirements on the manufacturer
(c) Procedure for providing the subsidy
(d) Amount of the subsidy
2.5.3 Subsidy to compensate for some of the costs on the use of energy resources53 (a) General provisions
(b) Requirements on the manufacturer
(c) Procedure for providing the subsidy
(d) Amount of the subsidy
2.5.4 Subsidy to compensate for some of the costs on maintaining jobs54 (a) General provisions
(b) Requirements on the manufacturer
(c) Procedure for providing the subsidy
(d) Amount of the subsidy
2.5.5 Subsidy to reimburse costs in connection with the disposal of vehicles55 (a) General provisions
(b) Terms and conditions for paying the subsidy
(c) Amount of the subsidy
2.5.6 Subsidy to reimburse losses of income of leasing organisations on the provision of a discount to the lessee regarding the payment of the advance under lease agreements concluded in 2018–2020 56 (a) General provisions
(b) Requirements on the leasing organisation
(c) Terms and conditions for paying the subsidy
2.5.7 Subsidy to reimburse the shortfall in income on loans issued by Russian credit institutions in 2015–2017 to individuals for the acquisition of an automobile, and the reimbursement of some of the costs in respect of the loans issued in 2018–2020 to individuals for the acquisition of automobiles 57 (a) General provisions
(b) Terms and conditions for the payment of the subsidy
(c) Amount of the subsidy
2.6. Subsidies to the manufacturers of motorised and towed machinery
(a) General provisions
(b) Requirements on the manufacturer
(c) Procedure for providing a subsidy
V. Agriculture/Agricultural Equipment (I) Agriculture. 1. Import substitution policy
2. State support. 2.1. Subsidies
2.2. Limitations on imports of food products from a number of countries
2.3. Restrictions on state and municipal procurements of a number of imported food products
2.4. Tax incentives
2.4.1 Unified agricultural tax
2.4.2 Preferential rate of 0 % on the corporate income tax
2.4.3 Exemption from import customs duty and VAT
(II) Manufacturing of Agricultural Equipment
1. “Made in Russia” agricultural machinery
1.1. Government Resolution No. 719
1.2. The special investment contract as a basis for obtaining “Made in Russia” status
2. State support
2.1. Subsidies to manufacturers of agricultural machinery to compensate for costs on the production and sale of agricultural machinery. 2.1.1 General provisions
2.1.2 How large are the subsidies?
2.1.3 What are the requirements on the manufacturer?
2.1.4 How are products confirmed to be “Made in Russia” for the purpose of receiving the subsidy?
2.1.5 What is the procedure for providing the subsidy?
2.2 Subsidies to compensate part of the cost of servicing loans issued for technical retrofitting, reconstruction and modernisation 80. 2.2.1 General provisions
2.2.2 Which costs are eligible for compensation?
2.2.3 How large are the subsidies?
2.2.4 What are the requirements for receiving the subsidy?
2.2.5 What is the procedure for providing the subsidy?
2.3 Subsidies to compensate part of costs on transportation, homologation, and confirmation that products comply with international standards 81. 2.3.1 General provisions
2.3.2 Which costs are eligible for compensation?
2.3.3 How large are the subsidies?
2.3.4 Requirements on the manufacturer
2.3.5 What is the procedure for providing the subsidy?
2.4 Subsidies to compensate part of the costs related to the issue and support of warranty obligations 84. 2.4.1 General provisions
2.4.2 What are the requirements on the manufacturer?
2.4.3 What is the procedure for providing the subsidy?
3. Rosagroleasing
4. Disposal fee
VI. Software
1. Restrictions on admitting foreign software to Government and municipal procurement. 1.1. General provisions
1.2. Software “Made in Russia”
(a) “Russian origin of the rights holder”
(b) Maximum level of payments (royalties)
(c) Other criteria
1.3. Exception to the rule
B. SPECIAL INVESTMENT CONTRACT. 1. Fast facts
1.1. What is a special investment contract?
1.2. What does technology mean?
1.3. Who concludes a special investment contract on behalf of the state?
1.4. Who can act as the investor under a special investment contract?
1.5. For what term is a special investment contract concluded?
1.6. What are the investor’s main obligations under a special investment contract?
2. Investment procedure. 2.1. Amount of investments
2.2. Investment periods
2.3. Investment expenses
2.4. The business plan of the investment project
2.5. The financial model of the investment project
2.6. Confirmation of financing
2.7. Localisation obligations
3. Benefits for the investor
3.1. Stability of business conditions for the investor
3.2. “Local manufacturer/local product status”
3.3. Tax concessions
3.4. Sole product supplier status
3.5. Subsidies
4. Procedure for concluding a special investment contract. 4.1. General provisions
4.2. Stage 1. Inclusion of technology on the List
4.3. Stage 2. Tender
4.4. Stage 3. Commission on the conclusion, amendment, and termination of special investment contracts
4.5. Stage 4. Approval and signing of the final version of the special investment contract
5. Standard form of a special investment contract
5.1. Standard terms and conditions of a special investment contract
6. Monitoring of performance of a special investment contract
C. INDUSTRIAL DEVELOPMENT FUND
IDF program terms
1. Development Projects program
2. Components program
3. Machine-Tool Manufacturing program
4. Leasing Projects program
5. Industry Digitalization program
6. Labor Productivity program
7. Drug Labeling program
D. LOCALISATION AND SETUP OF PRODUCTION FACILITIES IN RUSSIA
1. Areas granted a special legal status. 1.1. Special Economic Zones (SEZ) 1.1.1 Framework
1.1.2 Types of SEZ and performance indicators
(a) Industrial and Production Special Economic Zones
(b) Technology and innovation special economic zones
(c) Tourist and recreational special economic zones
(d) Port special economic zones
1.1.3 Residents of SEZ
(a) Criteria for receiving resident status
(b) Agreement on operations in a special economic zone
(c) Acquisition of resident status
(d) Loss of resident status
1.1.4 Advantages for investors
(a) Tax benefits
(b) Free customs zone regime
(c) Provision of land plots
1.1.5 General assessment and development prospects
1.2. Industrial parks. 1.2.1 General provisions
1.2.2 Classification of industrial parks
1.2.3 Certification
1.2.4 State support
1.2.5 Investor benefits
1.3. Clusters. 1.3.1 General provisions
1.3.2 Classification
1.3.3 State support
1.4. Priority Development Areas (PDAs) 1.4.1 General provisions
1.4.2 PDA residents
1.4.3 Advantages for investors
1.5. Preferential taxation for the implementation of regional investment projects. 1.5.1 General provisions
1.5.2 Requirements on the application of tax concessions
1.5.3 Register of participants in a regional investment project
1.6. Ability to combine several preferential tax regimes
2. Acquisition of land plots for construction. 2.1. Introduction
2.2. Rights to land plots for construction
2.3. Acquisition of the title to land plots
2.3.1 Acquisition of title to land plots in public ownership
a) Acquisition of title to land plots through competitive bidding
(i) Price
(ii) Preparations for an auction
(iii) Auction
(iv) Conclusion of the sale and purchase agreement
(v) State registration of the title of the buyer in the EGRN
b) Acquisition of title to land plots without holding competitive bidding
(i) Price
(ii) Required procedures
2.3.2 Acquisition of title to land plots held as private property
a) State cadastral registration of the land plot
b) Conclusion of a sale and purchase agreement on the land plot
c) State registration of the buyer’s title to the land plot
2.4. Acquisition of land plots under lease
2.4.1 Acquisition under lease of land plots in public ownership
a) Acquisition of land plots under lease through competitive bidding (i) Amount of lease payment
(ii) Lease term
(iii) Conduct of the auction
b) Acquisition of land plots under lease without competitive bidding (i) Grounds
(ii) Lease term
(iii) Amount of lease payment
2.4.2 Acquisition under lease of land plots held as private property
(i) Conclusion of the lease agreement
(ii) State registration of the lease
3. Main stages of the construction project
3.1. Preliminary design
3.1.1 Collection of initial data
3.1.2 Engineering surveys
3.1.3 Receiving technical specifications
3.1.4 Land plot development plan
3.2. Preparation of design documentation
3.3. Expert assessment of design documentation
3.4. Construction permit
3.5. Commissioning permit
3.6. State cadastral registration and state registration of rights to a constructed building/structure
I. Independent Manufacture or Cooperation with a Russian Partner?
1. Founding a subsidiary in Russia. 1.1. Selecting a form of incorporation
2. Founders / Participants. 2.1. Corporate aspects. 2.1.1 Investing in “strategic industries”/regulation of foreign investments
2.1.2 Ban on the foundation of companies by a business entity consisting of one participant (ban on “second-tier” subsidiaries)
2.2. Tax aspects. 2.2.1 Concessions on withholding tax
2.2.2 Exemption of in-kind contributions from import customs duties
(a) Regulation at the level of the EAEU
(b) Regulation in Russia
(i) Not excisable
(ii) Inclusion in “fixed production assets”
(iii) Import within the deadlines stipulated by the foundation documents
(iv) Restrictions on use and control
3. Scope of business
4. Amount and payment of the charter capital
5. Management bodies of a company. 5.1. General provisions
5.2. General meeting of company participants. 5.2.1 Powers
5.2.2 Regulation of activity
5.3. Chief Executive Officer. 5.3.1 Competency
5.3.2 Appointment and dismissal
5.3.3 Regulation of activity
5.3.4 Consent of other bodies to the conclusion of the transactions
5.3.5 Foreign citizen as Chief Executive Officer
5.4. Collective executive body. 5.4.1 Competency
5.4.2 Formation and early termination of powers
5.4.3 Activity
5.4.4 Internal Audit Commission (Internal Auditor)
6. Foundation procedure
6.1. Supervisory board. 6.1.1 Competency
6.1.2 Formation and early termination of powers
6.1.3 Regulation of activity
7. Required documents and information
II. Specific Aspects of a Joint Venture with a Russian Partner
1. Joint venture in Russia or abroad?
2. Joint venture agreement/Shareholders’ agreement
3. Due Diligence
4. Approval by the state or other parties. 4.1. Government approval
4.1.1 Investments in “strategic industries”/right of foreign investment
4.1.2 Anti-trust law
4.2. Corporate approval by the Russian partner
4.3. Agreement by the Russian partner arising from the provisions of family law
Download of the translations of the main regulations
