Project Support Provided by VEB.RF for 76 Federal-Level Agreements to Protect and Promote Investment of More Than RUB4tn
VEB.RF provides project support for 76 federal-level investment protection and promotion agreements (IPPAs) across a range of economic sectors. This will bring investment of more than 4 trillion roubles into the country’s economy, including over 2.7 trillion roubles under 45 agreements signed in 2022–2024 with pre-approval from VEB.RF.
The use of IPPAs is particularly attractive to investors because they are enabled not only to receive reimbursement for some of their infrastructure costs, but also to invest in projects in a long-term predictable tax environment. For example, investors pay corporate profit tax at the rate applicable at the time when they enter into agreements, which is why any investment projects covered by the IPPAs signed before the end of 2024 are exempted for the period of stabilisation from the tax increase that came into effect in January 2025.
The mechanism was developed by the Russian Ministry of Economic Development to provide stability for investment in projects; the total number of agreements signed to date has reached 81, including 76 at federal level and five at regional level.
The current IPPAs cover 42 Russian regions, with the Leningrad, Sverdlovsk and Nizhni Novgorod Regions and the Republic of Tatarstan leading the field (each with four agreements).
Manufacturing (28 projects), agriculture and food processing (17 projects), and mineral extraction (17 projects) make up the largest proportion of IPPAs.
IPPAs are currently used to carry out investment projects aimed at producing import-substituting goods and setting up production projects unequalled on a global scale (such as projects related to green metal production and mineral processing). In addition, investment projects implemented under IPPAs contribute to the country’s food security by, for example, promoting agricultural production and reducing the share of agricultural imports in the domestic market.
VEB.RF was mandated in September 2022 to act as an agent for the Russian Government to provide support for investment protection and promotion agreements, including conducting financial and legal due diligence on investment projects, supporting processes of entering into and amending agreements, monitoring progress in project implementation, and recovering invested funds.
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