The 2006 Federal Budget Law provided for a RUR 69.7 billion Investment Fund for the first time, while RUR 72 billion was earmarked for 2007. The fund receives revenue from increases in the oil severance tax when the Stabilization Fund is formed and as a result of early repayment of foreign debt, i.e., through savings on interest payments.
The project review procedure comprises three main stages: review by the investment commission, review by the governmental commission, and approval by the meeting of the Russian government.
The government is expected to finance business projects worth at least 5 billion rubles over a five-year period. The private investor will be required to provide at least 25% of the project cost. The project profitability should be at least 4% but no more than 11%.
10% — for other sectors of the economy.
financial performance (internal rate of return, payback period, profitability index).
The total volume of investments in these projects, i.e. direct investments in the Russian economy, will top 1 trillion rubles, of which RUR 341.8 billion (or 30%) will be allocated from the Investment Fund. The available balance of funds, taking into account the projects approved by the governmental commission to date and funds earmarked in the draft federal budget until 2010, will be RUR 175.8 billion.
The projects will create 110,000 additional jobs in the regions and attract up to 1 trillion rubles in private investments, while the Russian state budget will receive an additional RUR 544 billion rubles in revenue. It is expected that the projects will be completed in 2010-2015.