SPIC 2.0 creates the framework for investment projects aimed to implement or develop and implement a modern technology with aim to set up serial production of globally competitive products. Modern technologies are included in the list, that is created and updated according to the rules approved by the Government of the RF. 

The term of a special investment contract shall not exceed 15 years if the project investments are equal to or below 50 billion rubles (net of VAT) and shall not exceed 20 years if the project investments are above 50 billion rubles (net of VAT). A special investment contract under the updated SPIC framework may be concluded until December 31, 2030. 

Under a special investment contract, investors may be entitled to the following support measures:

• Non-deterioration of tax conditions;
• Tax benefits;
• Expedited and simplified procedure to obtain the “Made in Russia” status for their products;
• Facilitated access to the State procurement, industry-specific subsidies;
• Measures stipulated by regional laws (profit tax and property tax benefits, lease of land plots without bidding process).

• To make investments in the project in the amount provided for in the business plan;
• To develop and implement or to implement a modern technology from the list approved by the Russian Government;
• By the date stipulated in the special investment contract, to ensure the exclusive ownership of or the right to use the intellectual property rights to the modern technology included in the list of the Russian Government.

Furthermore, a number of performance indicators included in the contract should be met in implementing the investment project, such as certain output and sales volumes under the investment project, payment of certain amount of taxes, and creation of a certain number of workplaces.
The liability of the investor under a special investment contract may take form of indemnification for actual damages and a penalty. However, the investor’s liability is limited to the total amount of the support measures provided under the special investment contract. The State, on the other hand, is liable for non-provision of support measures. In this case, the investor has the right to initiate legal proceedings to terminate the special investment contract and claim its actual damages.

1. Inclusion of the technology in the list of modern technologies

The technology, that is planned to be implemented or to be developed and implemented under the investment project, must be included in the list of modern technologies approved by the Russian Government.

2. Initiating a tender

The form and composition of the bid application to conclude a SPIC were approved by the Order of the Ministry of Industry and Trade of the Russian Federation No. 627 dated 26 February 2020 «On approving the forms for the proposal by an investor on the conclusion of a special investment contract». A letter from the constituent entity and the municipality on the approval of the place of industrial production shall be enclosed to the bid.

The competitive tender can be initiated by:

1. The Russian Federation represented by an authorized body;
2. The Russian Federation jointly with the constituent entity of the Russian Federation and the municipal entity;
3. The investor.

3. Participation in the competitive tender

To participate in the competitive tender, the following documentation shall be provided:

• Action plan regarding the development and implementation or the implementation of a modern technology;
• Business plan;
• Financial model;
• Schedule of planned investments;
• Documents confirming ability to attract investments;
• Manufacturing localization schedule, etc.

The documentation package shall pass several expert reviews:

1. Express review.

Performed by a body authorized to enter into a SPIC and is aimed to verify that the package is complete.

2. Incoming expert review.

Performed by the Industrial Development Fund according to the authorized methodology. The purpose of the incoming expert review is to analyze the contents of the application and documents attached thereto in order to establish that the information required by the Rules for entering into SPICs is present.

3. In-depth review.

Performed by the Industrial Development Fund in order to determine if there are grounds to refuse to enter into a SPIC and to set the term of the SPIC.

However, the body authorized to enter into a SPIC can perform all the expert reviews itself.

• The proposed term to implement the modern technology;
• The amount of industrial products to be produced during the term of the special investment contract;
• The level of product localization.

The first two criteria here are essential. The localization level will be taken into consideration only if during the evaluation of applications according to the first two criteria several bidders received equal points.

Following the tender and after the SPIC project details were successfully negotiated by the parties, the contract is signed and entered into the register of special investment contracts.

The list of the concluded SPICs can be found here.

Important: all processes regarding concluding, amending, terminating and managing a SPIC are carried out through the State Information System of Industry (GISP).

A SPIC 2.0 may be concluded without tender only by the decision of the President of the Russian Federation (if the project is of strategic importance for the economy or the national security of the country), or if only one application meeting the applicable requirements was submitted to the competitive tender.

Russian Ministry of Industry and Trade is the body authorized to conclude special investment contracts in the industrial sector on behalf of the State (the Russian Federation). The special investment contracts in the oil, gas, coal and power generation industries fall into the scope of authority of the Russian Ministry of Energy. Special investment contracts in the agricultural sector are concluded with the Russian Ministry of Agriculture.