The Nizhny Novgorod authorities intend to terminate the investment agreement with the foundry.

      June 24, 2026 14:48 Economy Regional authorities intend to terminate the investment agreement with LLC "Nizhny Novgorod Foundry". The corresponding bill was submitted to the Legislative Assembly by the governor of the Nizhny Novgorod region, Gleb Nikitin. The document proposes to recognize as invalid the law that approved the agreement between the regional government and the enterprise in 2022. The project concerns the creation of a joint venture in the metallurgy sector - a new line for block casting. In January 2021, it was granted the status of a priority investment project with state support in the form of a property tax exemption. The agreement itself was signed by the parties on March 21, 2022. The company intended to organize the production of large castings made of gray cast iron. The total investment was declared at 4.3 billion rubles. The enterprise was expected to receive a property tax exemption until December 1, 2026, amounting to 128.018 million rubles. The expected budget effect during the agreement's validity was estimated at 521.3 million rubles. The basis for termination was the factory's failure to fulfill its obligations. The company did not submit a report on the progress of the project, as stipulated in the agreement. This issue was reviewed by the relevant commission on priority investment projects. Following the results of the absentee meeting, it was recommended to terminate the agreement and repeal the corresponding regional law. At the same time, the explanatory note states that the enterprise did not take advantage of the granted tax exemption. Earlier, for a similar reason, the investment agreement with JSC "Intrast NN", which was implementing a project in the "NOVA PARK" trade and logistics park, was terminated. The company also did not submit the mandatory reporting on the progress of the project. NIA "Nizhny Novgorod" has channels on Telegram and MAX. Subscribe to stay updated on major events, exclusive materials, and operational information. Copyright © 1999—2025 NIA "Nizhny Novgorod". When reprinting, a hyperlink to NIA "Nizhny Novgorod" is required. This resource may contain materials 18+