Moscow and Karelia concluded the first interregional offset contract in Russia

The customers from Karelia and Moscow concluded the first interregional offset contracts in Russia for the supply of crushed stone. They provide for reciprocal investment obligations of the supplier and investor for creation, modernization, and development of production in the territory of the republic.

This became possible after the Head of Karelia Artur Parfenchikov and the Mayor of Moscow Sergei Sobyanin signed an agreement on holding the corresponding electronic competition on October 23, 2023.

According to the terms of the contracts, crushed granite and gabbro-diabase of various fractions will be supplied from Karelia for repair and construction of roads.

An offset contract allows a business to invest in production without risk due to guaranteed sale of products. The winner of the competition must create crushed stone production within three years. The governments of both regions, for their part, guarantee the purchase of about 13.7 million tons of crushed stone during 10 years.

The offset contract for the supply of crushed stone was concluded for more than 61 billion rubles. This contract was among the ten largest purchases in the entire history of the modern contract system.

Several participants competed for the right to implement such a large-scale project, offering the best conditions for its implementation. Among the “selection conditions”, in addition to the mandatory investments stipulated by the contract in the amount of 780 million rubles, there was the investor’s readiness to make additional investments in creation or modernization of production, as well as experience in executing such contracts. The winner of the competition, OOO “BIOEN TRADE”, presented the documents on fulfilled obligations worth more than 10 billion rubles to confirm the relevant work experience.

The investment obligations for creation, modernization, and development of crushed stone production in the Republic of Karelia will amount to over 1.5 billion rubles.