The team of our practice headed by Partner Alexander Panov has rendered legal support of a special investment contract (SPIC) on the manufacturing of electric cars, made by and between Motorinvest and the Lipetsk Region with the Russian Ministry of Industry and Trade. The company intends to invest over 13 billion roubles into setting up the production over 11 years.
BGP Litigation has provided comprehensive legal support of the project for the execution of the SPIC. The scope of our services included drafting and filing tender documents to bid for the right to execute the SPIC, a due diligence of financial documents and business plan to see if they met the selection criteria, as well as securing approval for the draft contract after our client was selected as the winner of the tender. Counsel Maria Semenova and Associate Ekaterina Tretyakova took part in the team’s work, performed under the guidance of BGP Litigation Partner Alexander Panov.
The SPIC was signed on 21 March 2022. It provides for the introduction of technologies of manufacturing green urban vehicles powered by Evolute traction engines. Planned investments into the project exceed 13 billion roubles, and the plant will occupy the area of over 70 thousand sq.m. Implementation of the SPIC will create almost 2,000 new jobs in the Lipetsk Region. “During the implementation of the project, the plant will produce more than 242,000 electric cars of five different models,” Denis Manturov, Russian Minister of Industry and Trade, has announced.
“We are grateful to our client for the trust and cooperation at all stages of our support of the project. Investments and localisation are a key area of our work and we hope that in the current environment, businesses will be more willing to use SPICs as an investment mechanism,” Ekaterina Tretyakova comments.