SPIC mechanism made more accessible

20 December 2017, Wednesday

Decree of the Russian Federation Government No. 1564 dated December 16, 2017 approved a new version of the Rules for Concluding a Special Investment Contract and the Model Form for Concluding a Special Investment Contract. The objective of the document is to improve the mechanism of the special investment contract (further, “the SPIC”) upon experience of its practical application.

The decree determines two other federal executive bodies to be authorised to conclude SPICs. Now, in addition to the Ministry of Industry and Trade of Russia, a SPIC can be concluded by the Ministry of Energy and the Ministry of Agriculture.

Enterprises of oil refining, gas processing, petrochemical, coal, and electric power sectors can apply for the conclusion of a special investment contract to the Ministry of Energy of Russia.

The new amendments regulate in more detail the procedures for considering investors’ applications for the conclusion of a SPIC, agreeing on its terms, altering and terminating the contract. The Rules set forth the requirements to investors applying for the conclusion of a SPIC, expand the list of documents to be provided as part of the application for the conclusion of a SPIC, specify the powers of the interdepartmental commission that is authorised to consider investors’ applications and take relevant decisions on them. The Model Form has been adjusted with consideration for the established practice of concluding SPICs.

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