Manturov asks large businesses not to delay investment projects, promises to boost support

ST. PETERSBURG. Nov 29 (Interfax) - The Russian Industry and Trade Ministry is ready to expand support for investment projects in industry, and expects that big business will not push their implementation to a later date, Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said that the Russian Industrialist forum on Wednesday.

"I think everyone agrees that we cannot put development projects on hold. In this regard, I have a few wishes for companies that are involved in megaprojects in one way or another, and there are many of them among the members of the Russian Union of Industrialists and Entrepreneurs: first of all, do not postpone these investment projects," he said in his welcoming speech at the plenary session of the forum.

"For our part, we are ready to help through tax preferences on SPICs [special investment contracts], or through the cluster investment platform. Today, 26 projects totaling 580 billion rubles have been approved under this mechanism, but we can support much more, we have budgeted the necessary funds for next year," Manturov said.

He recalled that the government also subsidizes research and development, develops industrial and technology parks, and finances preferential industrial mortgages. According to Manturov, industrial mortgages are a "very sought after" tool in the regions and the ministry will initiate an increase in the volume of subsidies. "As of today, more than 620 soft loans for almost 60 billion rubles have already been issued. In this regard, requests from constituent subjects are in excess of what we have currently provided, but we will seek to increase the volume," he said.

Alexander Shokhin, head of the Russian Union of Industrialists and Entrepreneurs, spoke to the call to preserve investment activity, linking it to the readjustment of the fiscal burden on companies and the introduction of significant investment tax deductions. "When I proposed thinking about the profit tax [a formulaic tax increase instead of one-off exemptions], there was a phrase after the comma: "with significant investment tax deductions" If we implement an approach where the tax deduction will be more transparent, universal, and will encourage the real investment process, given that there is nowhere to withdrawn money to, the process will proceed," the head of the union is confident.

"I think we are on the threshold of an investment market, we just need to set up the regulatory framework correctly," he said.