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Agreement on Protection and Promotion of Investments (APPI)

        Federal law No. 69-fz of April 1, 2020
        An investor and the government conclude an agreement on conditions for the implementation of an investment project:
        investors undertake to invest in the project, and the region guarantees stabilization of tax and other regulatory conditions
        to investors.

                                               Preferences for investors


        1. Mechanism of compensation of the incurred costs from the paid taxes  2. Provision of stable conditions for the
                                                                                period of contract validity

              Types of        No contract      Contract         Volume of      • stabilization of legislation on taxes and
            infrastructure     with SME        with SME       compensation*    fees for the period of 20 years
                                                                               • non-application of legislative
             supporting         5 years         6 years           50%          alterations, worsening conditions of
                                                                               project implementation

              related           10 years        11 years          100%
                                                                               Guarantee for the entire period of APPI:
                                                                               • do not increase the rates of import
        *Cannot exceed the sum of tax revenues from the project over its implementation period   customs duties
                                                                               • do not change terms and/or volume
                                                                               of provided support
                                APPI validity period

                                                                               Within 3 years:
              ≥200 million  All projects                                       • do not cancel grounds for creation
                                                                               or provision of rights for land plots
                            Healthcare, education, culture,                    • do not change the process of price
              ≥250 million  physical culture and sport                         determination for sale/rent of a land plot
          6 years                                                              • do not establish additional
              ≥500 million      Digital economy, ecology,                   New projects  requirements to land use and
                                                                               development of the territory
                                agriculture
                                                                               preparing land-use planning documents
              ≥1.5 billion            Manufacturing                            • do not change the procedure of
                                                                               • do not increase the rate of the fee
                                                                               (charge) for negative impact on the
          15 years   ≥5 billion             All projects                       environment
                                                                               • do not increase the rate of the fee
          20 years   ≥10 billion                  All projects                 (charge) for lease of forest land


              Subject of the Russian Federation   Joint participation of the Russian Federation and a subject



        www.lenoblinvest.ru                                                                                   31
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