SPBILF 2019. Preferential Regimes: Division in the Conditions of Unification

For more than 10 years in Russia there are special legal regimes that provide their participants with exemptions from the current legislation  special economic zones, special administrative areas, regulatory sandboxes, special investment contracts, etc. In the absence of any unified approach to the legal regulation of these ecosystems investors often face difficulties in the implementation of activities in the conditions of contradictory and overlapping investment legislation.

In addition to the redundancy of types of preferential regimes, unsystematic legislative regulation, terminological differences, there is the unresolved issue of the possibility of combining preferences in the implementation of investor activities simultaneously in several regimes. For example, the absence of a territorial link between the activities of international companies registered in special administrative regions allows such companies, on the one hand, to receive preferences established for a particular territory of the region, and on the other hand, to carry out activities throughout Russia, while the establishment of the regime implies a focus on the development of the territory in which it operates.

These and other barriers lead to a decrease in the financial interest of investors in the implementation of investment projects and, in general, make it possible to state the inefficiency of the current regulation. Meanwhile, in the world practice, such regimes are an effective tool for stimulating the development of the economy of individual regions and the state as a whole.

During the International and Comparative Law Research Center's discussion session at St. Petersburg International Legal Forum on May 17, leading Russian and foreign experts, representatives of public authorities and interested businesses discussed the problems associated with the establishment of special legal regimes for individual business entities, to develop approaches to reforming the current regulation in order to solve the identified problems, based on the best international practices.