MIL OSI Translation. Region: Russian Federation –
The solution will also help the implementation of important investment projects.
Resolution of October 19, 2020 No. 1704
Decree of October 19, 2020 No. 1705
Regions that are actively developing infrastructure will be entitled to write off debts on budget loans. The decree on this was signed by the Prime Minister Mikhail Mishustin.
We are talking about the creation or reconstruction of transport, energy and communal infrastructure facilities necessary for launching new investment projects. At the expense of the funds that are freed up during debt restructuring, you can also prepare documentation or connect facilities to engineering networks. According to the decree, the amount of debt reduction is linked to the amount of taxes that will go to the federal budget from the implementation of the investment project.
From the opening remarks by Mikhail Mishustin at a meeting with the Deputy Prime Ministers on October 26, 2020
In parallel, the rules for the selection of new investment projects were approved. The document, in particular, fixes their industry affiliation: agriculture, tourism, manufacturing, mining (except for oil and gas), housing and road construction.
It is specified that the Ministry of Finance will accept applications for debt cancellation from the heads of the regions, and the Presidium of the Government Commission on Regional Development will consider the consolidated list of investment initiatives.
The approved documents will have a complex impact on the investment climate in the regions: they will help businesses to implement important investment decisions, accelerate the creation of new infrastructure and reduce the debt burden on regional budgets.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.