The definition of investment projects is limited to sections of Federal Law from 25.02.1999 N 39-FL “On investment activity within the Russian Federation, carried out in the form of capital investments”. In particular, investment project is understood as feasibility study of the amount and timing of capital investment including the necessary project documentation, developed in accordance with the law of the Russian Federation, and description of practical actions for implementation of investments (business plan).
At the initial reading of this definition, it’s hardly possible to understand its meaning and draw up a picture of an investment project. To make it clear, investment project can be defined as a project for construction (modernization) or acquisition of companies, tools (inventory) for such; or any other fixed assets, that consist of economic justification for the feasibility, scope and timing, and which include project documentation and business plan.
Naturally, investment project requires investment to be implemented. Investments can be in form of money, securities or any other property including proprietary rights and any other rights, which have monetary value, invested in the enterprise activity or any other activity in order to receive profit and (or) any other beneficial effect.
Subjects of investment project may include: charterer, contractor, investors, users of the objects of capital investment and other bodies. Contractors, charterers and investors may be physical or legal entities, if it doesn’t contradict the law of the Russian Federation. Foreigners may be users or investors as well.
It is possible to say that sections of Federal Law Act from 25.02.1999 N39 – FL “On investment activity within the Russian Federation carried out in form of capital investments” establish special legal regulation for investment projects. Also, legal norms under the Civil Law Act of the Russian Federation are applied where 39-FL doesn’t provide regulation for legal relations.
Normally, investment projects suggest implementation of some large-scale task which require serious financing. That is why this field requires close attention from every participant. Considering large composition of subjects of the Russian Federation, absence of a uniform enforcement practices, competition of norms of general and special law - this activity can be safely attributed to the type of activity that has increased financial risks.
Therefore, every subject of investment market should take signing and execution of investment contract very seriously. Competent contract for implementation of investment project will lower the risks that can arise in the future to minimum.
As practice shows, up to 70% of litigations arise due to mistakes or missing outs in contracts and the remaining part of litigations arise because of further incompetent actions during the execution process. That is why, it can be safely said that good contract is half of the business (even more than half). In this regard, at the stage of contracting, it is not worth neglecting the assistance of professional lawyer or to use a full-time lawyer to resolve such an important matter. Trust, this vigilance will not be superfluous and will save and compensate with interest your strength and nerves in the future.
In addition to this, not every law firm is prepared to ensure the proper quality of legal service in maintenance of investment project in Russia. First of all, it is due to the specificity of the area. Secondly, it is due to the lack of experience in resolving these issues. This task can be handled only by serious law firm that has high-class lawyers in their office. That is why, Prime Legal LLC is attributed to this category of law firms. You may assess the quality of legal services and the professional level of our specialists’ knowledge yourself by contacting us.
Are you an investor, charterer or contractor of the investment project or aiming to become one? Then do not hesitate to contact us and we will tell you everything about the “underwater” stones and the prospects of this investment project.
Prime Legal LLC is prepared to assist you with solution of any legal issue. We guarantee proper quality of service within time limits and responsible attitude to job.
More information you can obtain by calling us.