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Russian Government has established new requirements for wood investment projects

By Resolution No. 190 of February 23, 2018, the Government of the Russian Federation established fundamentally new requirements for the implementation of priority investment projects in the forest field.

This decree approved a new (very different from the previous one) Regulation on the preparation and approval of the list of priority investment projects in the area of forest activity. In addition, some changes were implemented in Government Decree No. 310 of May 22, 2007 concerning the application of the lowering coefficient to the rates of payment for forests using according to priority investment projects. If the new Regulation mainly affects new priority investment projects, then the change in the rates of the fee, apparently, will affect to all.

Changes relating to fee rates are as follows. The lowering coefficient to the rates can now be applied for only a certain period, depending on the volume of investments, and only "from the moment putting facilities into operation, confirmed by the act." Until then, and after the expiration of the reduction factor, the rent must be paid in full volume" with the application of the average coefficient of excess of the rent payment in excess of the minimum rate of payment established in the constituent entity of the Russian Federation."

Changes related to the order of including priority investment projects in the relevant list, and the order of their implementation, are very significant. The volume of investments should now be at least 500 million rubles. for the modernization of timber processing enterprises, and at least 750 million rubles. to create new ones (previously - 300 million rubles in both cases).

The investor also must document prove the existence of his own or borrowed funds in the amount of not less than 50% of the required for the whole project, or 25% of the required for the first two years, if the project implementation period exceeds three years. The information on the process of considering the application and decisions of the Ministry of Industry and Trade on the inclusion of projects in the list should be published on the ministry's website.

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