Foreign cinematographers to sponsor film shooting in Armenia 

ArmInfo. Foreign producers who decide to shoot a film in Armenia will be able to get back up to 25% of the production costs incurred. And if the film promotes a positive image of the Republic of Armenia - even 35%. The initiative of the RA Ministry of Education, Science, Culture and Sports (MECS) was approved at the Cabinet meeting on April 10.

According to the head of the MECS Zhanna Andreasyan, this project  creates an opportunity to create favorable conditions for foreign  investment in the film industry, promote joint production, intensify  economic activity in the industry, help generate additional income,  etc. Thus, state funding for the film industry for 2019-2024 amounted  to an average of 309 million drams per year. During the same period,  film producers invested an average of 655 million drams annually.

As the Minister pointed out, there is interest in the sphere, there  are preliminary agreements with various international platforms on  joint film production and filming in Armenia. At the same time, the  flow of foreign filmmakers to Armenia is also small due to the lack  of appropriate conditions. However, Armenia's favorable climatic  conditions and accessible labor market for organizing film production  can ensure the attractiveness of the industry. In particular, Armenia  has the opportunity to simultaneously film all seasons of the year  and provide the necessary creative, technical and service work and  services for film production.

"Studying international experience, we see that an important tool for  promoting this production is the possibility of a partial return of  investment, which is an accepted format in many countries," she said.

In this regard, foreign filmmakers, including those filming films  together with Armenian filmmakers, can submit an application to the  National Cinematography Authority for the return of financial  expenses invested in the production of a film in the territory of the  Republic of Armenia, under the conditions and in the formats  specified in the draft decision. If the application is approved, an  agreement is concluded on the return of 10-40% of the investment.

In order to partially return their investments, filmmakers must  purchase goods, services and works directly related to film  production from organizations and individual entrepreneurs who are  residents of the Republic of Armenia and pay all types of taxes.

In this way, it is possible to return up to 25%. At the same time, an  additional 10% return on investment can be realized if there are  elements of popularization of the Republic of Armenia. , - Andreasyan  noted.

According to her, memorandums have already been signed with such a  platform as Netflix. And the adoption of this project will allow the  agreements to be transferred to a practical level.