Regulatory framework of the new SPIC will be completed before December 2018

Regulatory framework of the new SPIC will be completed before December 2018

 

Prime. -The regulatory framework of the new SPIC: second generation Special Investment Contract, the principal decisions about which have already been taken, should be completed by the end of November, as told by the Deputy Prime Minister of Russian Federation Dmitri Kozak to journalists.

“The instructions have been given to finalise the legislation until the end of November, within the scope of the government meeting. The principal decisions have all been taken” – said Kozak , answering a question on the approval of the new SPIC. Kozak has added that there’s no possibility of extension to the industrial assembly regime for the car manufacturers, as the car industry will receive support through new mechanisms.

Earlier this week, Kozak has ordered the finalisation of the new SPIC with GAZ Group and Hyundai until 22 November, due for a review at the interdepartmental commission of the Ministry of Industry and Commerce on 26 November. The head of the department Denis Manturov, on the other hand, expects the signature of the contracts with Hyundai, GAZ Group, BMW and Renault-Nissan-Avtovaz alliance under the previous terms.

Previously, relevant institutions, car makers and related parties have submitted their proposals on state support for the industry at a number of meetings. A number of car manufacturers have proposed the establishment of entry requirements to the new investment regime, at a level not below the conditions of the second stage of the industrial assembly presented by SPIC. The Ministry of Industry and Commerce has supported this proposal.

The Ministry of Economic Development, on the other hand, has proposed to provide the car makers, whose industrial assembly agreements are due for expiration soon, with a transition period where the conditions of the already signed agreements are preserved, as well as the introduction of a mechanism for the gradual implementation of the new SPIC requirements. According to implications, such requirements will correlate with the current conditions of the industrial assembly agreements at the initial stage and their gradual consolidation will be stretched over time.

In addition, there were proposals to increase the utility fees and proportional growth in subsidies under the International Cooperation and Exports programme for car manufacturers exporting products manufactured in the Russian Federation.