Russian Ministry of Finance has come up with a plan to ensure favorable investment climate in the country, TASS news agency reports and notes that a draft federal law On Protection and Encouragement of Investments in the Russian Federation was prepared by the Finance Ministry in order to support private investments.
According to the draft law, the ministry suggests to protect investors and investments by making an agreement on protection and encouragement of investments. The companies which sign such agreements, will be immune against legislative amendments and eligible to tax deductions. The draft law specifies that to be subject of such an agreement, investments in a project must amount to no less than RUR 10 bln ($147 mio).
The initiative can become an excellent driving force for attracting companies into state-private projects, Artyom Deev, senior analyst at AMarkets, believes.
“Many foreign companies will be especially interested in such projects, if that entails various benefits and immunity against legislative amendments. That will certainly produce some effect”, he says.
No doubt foreign companies will not rush to develop and invest in Russia’s economy, yet the number of investors will steadily grow. TASS notes, that under the draft law, offshore companies will not qualify for the proposed investments protection mechanism.