Arkhbum JSC and the Moscow region signed the first IPPA in the region

30 march 2021
As the Pulp Mill Holding Investment Policy Director, Vladimir Krupchak, detailed, the Istra branch of Arkhbum JSC is reconstructing the plant (production building) with the corresponding modernization of the engineering and logistics infrastructure, as well as the launch of two technological lines: corrugated packaging machine BHS and converting line BGM 1332.

“The total investment is 1.8 billion rubles, more than 120 million of which will be invested this year,” said Vladimir Krupchak. “As a result of modernization, the enterprise will employ more than 350 people.”

The Moscow Region signed the first in the region Investment Protection and Promotion Agreement (IPPA) with JSC Arkhbum. This was announced by the Minister of Investments, Industry and Science of the Moscow Region, Yekaterina Zinovieva.

The Minister noted that as part of the signing of the IPPA, the Moscow Region undertook to maintain unchanged in relation to the investment project of Arkhbum JSC the current regulatory legal acts on property and transport taxes, land and water legislation of the region, as well as legislation on landscaping and standards on urban planning.

As the Pulp Mill Holding Investment Policy Director, Vladimir Krupchak, detailed, the Istra branch of Arkhbum JSC is reconstructing the plant (production building) with the corresponding modernization of the engineering and logistics infrastructure, as well as the launch of two technological lines: corrugated packaging machine BHS and converting line BGM 1332.

“The total investment is 1.8 billion rubles, more than 120 million of which will be invested this year,” said Vladimir Krupchak. “As a result of modernization, the enterprise will employ more than 350 people.”

As a reminder, IPPA is a new mechanism for attracting investments, developed by the Ministry of Economic Development of Russia in order to launch a new investment cycle in the country.

A key feature of IPPA is the guarantees that the investor receives from the state not to pass any laws in relation to the investment project that could worsen the conditions for the implementation of the project. The so-called “stabilization clause” throughout the investment cycle ensures that all tax rates applicable to the project are maintained, and also prevents the emergence of new governing, regulatory and other procedures for the investor.