Drafting of the Federal law “On protection and encouragement of investments” (2020)

On 10.12.2019 during the 1^st reading at the State Duma the bill of the Federal Law “On protection and encouragement of investments” was adopted. The State Duma act included more than 15 suggestions for amendments (https://sozd.duma.gov.ru/bill/828237-7).

The task: to improve the bill taking into account all the comments as fast as possible.

1. Participation in the working group for the drafting of the bill.
2. Significant amendments to the bill.
3. Taking part in a consensus procedure regarding the bill.

The Federal Law “On protection and encouragement of investments” was published on 01.04.2020. It includes a new instrument for the protection of investments – an agreement on protection and encouragement of investments – a contract between a private investor and the state regarding the obligation of the state not to worsen regulatory conditions throughout the period of an investment project.

Moreover, currently the law stipulates the possibility of reimbursement of certain expenses connected with implementation of an investment project, and (or) entitlement to a tax return.

The law is relevant for investors into projects worth 200 mil. roubles and over.