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State program approach

Minvostokrazvitiya Russia has presented a new formula for supporting investment projects in the Far East - "help me immaterial"

State program approach
The Ministry of Economic Development of Russia announced the launch of a new support mechanism for investors in the Far East - obtaining administrative support through the official inclusion of investment projects in the State Program "Social and Economic Development of the Far East and the Baikal Region".

According to the information from the official website of the Ministry of Economic Development, in order to receive this support measure, investment projects must pass the selection procedure. As requirements for participation in the selection, the minimum volume of private investments in the amount of 50 million rubles, the non-negative NPV of the project, the lack of the need for subsidies at the expense of the federal budget provided for by the State Program are indicated. The selected investment projects will be included in the State program.

It is expected that thanks to this status - participation in the State Program - the investor will be able to receive a set of administrative support measures. Thus, in relation to the selected investment projects, the Ministry for the Development of the Russian Far East intends to individually consider all issues related to their implementation, as well as to form targeted "road maps" of support. Such a card will contain measures of federal, regional, municipal support, as well as measures to support companies with state (municipal) participation. The EastRussia correspondent was not told additional details about these measures, the procedure for their provision, as well as about which companies with what needs are expected in the first place for the selection procedure.

When the EastRussia correspondent told some representatives of the business community about the emergence of a new measure to support investment projects of the Ministry of Eastern and European Development, their reaction was diverse.

“Personally, I am very surprised at the emergence of such an intangible initiative of the Ministry of the East Development,” the general director of SKIF Group shared with EastRussia Andrew Zhzhenykh. - Probably, this is a good initiative, and, something, and we with our project of a pig complex in Khabarovsk should be one of the first to whom it will be provided. We would very much like to take this measure of support to the Ministry - at least just to understand what is happening today with state participation in Far Eastern projects - how their presence is growing in them. I note in this context that the need for the measure itself does not cause doubts, the question is, so to speak, in its correctness - in fact it deals with very subtle technical, land, property issues and deals with regional officials and structures. The question arises: will Minskvokrazvitiya have enough courage, strength and patience to provide this new measure of support in full? "

At the same time, Andrei Zhzhenikh noted that, in his opinion, a new measure of "non-material" support of the Minsk region is of interest to any - medium, small, large - business in the field of agriculture in the Far East. Because the pre-construction stage of projects in this industry inevitably carries great difficulties for the investor. In particular, due to the established law enforcement practice, the great localization and bureaucratization of local administrations.

According to an EastRussia source in one of the transport and logistics companies in the Far East, "this measure was announced by the Ministry, and many were actually waiting for it." The interlocutor notes that the demand for various measures of state support in the Far East "is obviously growing", while participation for the existing business in the ASEZ and the Free Port is associated with the need for restructuring and maintaining separate tax accounting. "Not everyone is comfortable with this, so we and some other companies are interested in universal mechanisms." As such tools, the source cites a universal measure on tax benefits for investors in the Far East, which will be provided on a declarative basis, as well as a measure to include projects in the State Program. “We must pay tribute - both the Ministry and the supervising Deputy Prime Minister provide substantial administrative support to active and responsible business. If this approach is properly administered through a system of individual road maps, the quality of support will only increase. "

"Any form of state support is beneficial to business, in particular - and intangible, the role of which for business seems to be great," said Deputy General Director of the Sakhalin Mega Palace Hotel in a conversation with EastRussia Yuri Im. - If we talk about the Sakhalin region, then such aspects of the intangible support of the Ministry for the Development of Projects, such as resolving issues with the Russian Railways, solving the problems of transferring land plots into the necessary category for business, which would result in a reduction in terms of the pre-project phase, would be a great help from federal center. After all, in particular, such unpleasant phenomena are fully present on Sakhalin, such as a high tariff for transportation, restrictions on cargo traffic in certain periods of time, deadly delays in agreeing to transfer from category to category of land located in the territories of federal jurisdiction. ” .

Yuri Im noted in this context that a new non-material support for the Ministry of Eastern Development, which solves these and similar problems, is needed by any business in the Far East - at least in part, because "if not all of them face Russian Railways, then it’s worth ". That is, it deals with land plots. At the same time, he added that the key to success of the Ministry of Economic Development support measure is sensible informing potential consumers about it. Since modern Russian realities, unfortunately, are such that when creating a particular product, its creators and consumers are often separated from each other.

Meanwhile, the expert community was somewhat skeptical about the new support measure. “The emergence of a new, non-material, support measure for the Ministry for the Development of the Russian Far East is associated only with the reduction in this and subsequent years of government funding to support the development of the Far East. In its conditions, the Ministry has no choice but to help the Far Eastern business in all possible ways, - the director of the Institute for Regional Studies and Urban Planning of the National Research University Higher School of Economics assured the EastRussia correspondent Irina Ilyina. - But, given that the selection requirements clearly set the volume of private investment, due to be at the projects in the amount of at least 50 million rubles, it seems that the hunters will not be able to take advantage of the new measure of support for the Minsk region. At one time there already existed a program that established a requirement for 20 million rubles of minimal private investment - a lot of business with such a potential the state did not find. "

According to the expert, possible consumers of the new measure of support for the Ministry of the East is a small and medium business in the field of light and food industries. That is, a business that cannot in principle become a powerful driver for the development of the Far East. “Thus, I don’t see any big success as a result of this new measure of support for the Ministry of the East Development,” said Irina Ilyina.

As announced by the Ministry of Economic Development of Russia, the selection of investment projects for inclusion in the state program for the development of the Far East will last until 24 January 2017. A set of documents - an application, a business plan, a financial and economic model of the investment project and a conclusion confirming the validity of the above calculations. 
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