Russia’s Ministry of Industry and Trade has issued updated guidelines for Special Investment Contracts (SPICs), the government’s primary instrument for attracting long-term industrial investment. The updated framework — informally known as SPIC 2.0 — contains several provisions of direct relevance to foreign investors from the UAE, China and Asia.
What Is a Special Investment Contract?
A SPIC is a binding agreement between an investor and the Russian federal government (and in some cases regional governments) that guarantees specific conditions for the investor’s project over a defined period — typically 15 to 20 years. In exchange for commitments on investment volume and localisation of production, investors receive a package of fiscal and regulatory protections.
Key Benefits Under SPIC 2.0
The updated framework offers: a reduced profit tax rate of 0% for the first 10 years and 10% thereafter (compared to the standard 20%); exemption from property tax on new assets created under the contract; guaranteed stability of the regulatory environment — meaning no adverse legislative changes can affect the project for the contract’s duration; and priority access to state infrastructure support.
Qualifying Thresholds
The minimum investment threshold for a SPIC is RUB 750 million (approximately $8.5 million at current rates) for standard projects, with lower thresholds applicable in certain sectors including agriculture and eco-tourism. Projects must demonstrate localisation of at least 50% of production by value within 5 years.
Implications for Foreign Investors
For investors from the UAE and China deploying $10 million or more into Russian industrial or agricultural projects, the SPIC framework provides a level of legal certainty that significantly mitigates regulatory risk. Russia Investment Bridge has structured multiple SPIC-backed investments for Asian clients and can advise on the qualification process.
