NEWS

On August 2, 2019, laws were signed to upgrade the SPIC (special investment contract) mechanism.

This is an agreement between an investor and a public party (jointly the Russian Federation, a constituent entity of the Russian Federation, and a municipality) on the implementation of an investment project involving the creation or introduction of an advanced technology for organising mass production of industrial products.

The public party guarantees the stability of the business environment and the application of special support measures – tax incentives, subsidies, etc.

We invite interested companies to discuss draft regulations on the SPIC mechanism.

Draft documents governing the procedure for concluding, implementing, amending, terminating SPICs are available at regulation.gov.ru on the following links:

• https://regulation.gov.ru/projects#npa=94242
• https://regulation.gov.ru/projects#npa=94297
• https://regulation.gov.ru/projects#npa=94300
• https://regulation.gov.ru/projects#npa=94314
• https://regulation.gov.ru/projects#npa=94246
• https://regulation.gov.ru/projects#npa=94298
• https://regulation.gov.ru/projects#npa=94292

https://regulation.gov.ru/projects#npa=94312

OOO Ford Sollers Yelabuga, based on which the updated Ford Sollers joint venture in Russia is being created, has signed a special investment contract (SPIC) with the Ministry of Industry and Trade of the Russian Federation to develop the production of the Ford Transit line in Russia.

The SPIC signing ceremony was held within the framework of the St. Petersburg International Economic Forum on June 7, 2019. The ceremony was attended by Tatarstan President Rustam Minnikhanov, Minister of Industry and Trade of Russia Denis Manturov, Chairman of Ford of Europe at Ford Motor Company Steven Armstrong, and Director General of Sollers Vadim Shvetsov.

The SPIC, signed by Ford Sollers Yelabuga in a consortium with the Ulyanovsk Automobile Plant, provides for significant investment in future production and localisation of the Ford Transit line in Russia and will allow the company to retain all key government support measures for the project for the long term until 2028.

In March 2019, shareholders of the JV Ford Sollers – Ford Motor Company and Sollers – announced a restructuring of the joint venture, whose activities in the future will focus on the segment of light commercial vehicles. In the new Ford Sollers structure, shareholders of the Ford Motor Company and Sollers remain partners, while Sollers will hold a 51% share in the JV’s authorised capital.