ABOUT THE INITIATIVE
The mechanism of “Investment Elevator” is a complex program to assistant the development of non-primary companies, having an exports potential. The mechanism is aimed at lifting restrictions and ensuring a dynamic growth of the business to increase the share of exports in the revenues of promising Russian companies.
The initiative is implemented by: the Agency for Strategic Initiatives, Vneshekonombank, the Russian Direct Investment Fund, the Russian Exports Center – based on the quadripartite agreement on the assistance to non-primary export-oriented companies. The mechanism of “Investment Elevator” was approved on May 27, 2015 at the meeting of the Supervisory Board of the Agency for Strategic Initiatives.
Director of the Direction “New Business” of the Agency for Strategic Initiatives
“Actually, it is important for the country to increase the non-primary exports component and to do it fast enough. The Investment Elevator will allows for solving this problem using financial and non-financial measures. The role of the ASI in this mechanism will be the facilitation and acceleration of procedures to obtain assistance, including lifting of excessive administrative barriers, helping in “packaging the projects”.
General Director of the Agency for Strategic Initiatives
“We have to support those who manufacture competitive products. Today, there are about 200 companies in Russia who work in this segment and already export their products abroad. We plan to start with them, and then to create a tool which any company could use who is able to export something. We do not want to create tools allocated based on the sectoral principle. I think that any businessman who is able to export must unconditionally receive all the opportunities we are ready to give him, including opportunities for trade missions”.
President of the Russian Direct Investment Fund
“There is a number of medium companies who have a significant potential for growth in Russia, but now they cannot find equity financing as such. The President gave instruction to the Agency for Strategic Initiatives, Vneshekonombank and us (RDIF) to create those products that enable such companies to efficiently develop. On the other part, we are ready to provide the required equity financing. We believe that the Vneshekonombank is able to provide interest debt financing, the ASI can support these projects. It is possible to create 20-30 successful examples of medium companies that grow, including are able to export goods from Russia”.
The First Deputy President of the Group of Companies “Vneshekonombank”, Director of “Exar”
“Earlier, we talked about program of exports financing supports. They are unconditionally demanded. But under actual condition, this is not sufficient: a support system requires both financial and non-financial measures. We will focus on medium companies, as they have the greatest potential to increase the exports”.
The main goal of the ?Investment Elevator? mechanism is a comprehensive cooperation between the business and the public executive authorities, development institutions, state financial organization and other ?service? partners responsible for provision of various measures of state support in the process of foreign economic activity.
- Interaction with public authorities
- Equipment leasing
- Co-financing of an investment project
- Consultations on state support measures
CRITERIA AND PROCEDURE
Participant in the “Investment Elevator” mechanism may be
MAIN CRITERIA FOR SELECTION
- For companies
- For projects
- Activities related to a non-primary sector of economy
- Products having an exports potential
- A transparent ownership structure (the company is a RF residents; the beneficiaries owning more than 50 pct are RF residents; the share of the state or state-owned companies does not exceed 50 pct)
- Positive business reputation, stable financial position
- The Project products relate to a non-primary sector and have a potential for foreign markets access
- Compliance with the criterion of “readiness” (the technical feasibility has been confirmed, the scope of investments has been determined, the design and cost estimate documentation has been prepared, a business plan is available)
- If needed to attract project/investment financing, the own funds of the initiator shall amount to at least 20 pct of the general cost of the project
- If needed to attract shared financing – according to the main requirements of RDIF and the MIR Foundation for transactions.
STAGES OF SELECTION AND PROVIDING SUPPORT
Selection of projects
AnalysisWork with registered application, preliminary selection of companies and projects for expertise (compliance with the selection criteria)
Expertiseof companies and project, preparation of opinions for the working group
Selection of companies and projects(collective expert body)
Adoption of the decision on the approval of companies and project to be provided with financial and non-financial support
shared/debt financing of Small and Medium Enterprises
financing of exports contracts
financing of exports contracts
Collecting data on the deliverables Analysis of the project implementation ïðîåêòà Risks control Coordination of project changes
The expertise of projects and companies applying for support is carried out by a consultative body – the Working Group that ensure the efficiency and transparency of the “Investment Elevator” mechanism.
Chairman of the Working Group
Co-Chairman of the All-Russian Public Organization “Business Russia”, Chairman of the Committee for Investment Policy of the Chamber of Commerce and Industry of the Russian Federation
Deputy Chairman of the Working Group
Member of the Managing Board of the Russian Union of Industrialists and Entrepreneurs, Chairman of the Managing Board of the Non-Profit Partnership “The National Agency for Direct Investment”
Executive Secretary of the Working GroupHead of the Department for System Projects of the Direction “New Business” of the Agency for Strategic Initiatives