Investment climate
The investment policy implemented by the Leningrad Region government is based on using competitive advantages of geopolitical location, natural resources capacity, economic, scientific and technological potential of the Region. Favorable taxation regime contributes to increase of investment appeal of the Region and forms the wide range of market infrastructure institutions. All favorable conditions for successful business development created for investors implementing project in the Leningrad Region. First of all, informational transparency and openness of business doing are provided and it is also guaranteed that rights of investors and contractual agreements will be strictly complied. Tax benefits provided to investors also strengthen investment appeal of the Leningrad region.
The proactive investment policy conducted by the Leningrad Region Government is aimed at effective realization of accumulated economic potential of the Region. This policy attracts over USD 5 billion of investments annually, supports the establishment of dozens of new enterprises and ensures continuous growth of volume of tax income to the budget. The main result of this activity was creation of the sustainable base for economic growth in the region-continued development of new industries, new technologies, and, very importantly, the virtual absence of unemployment.
In 2010 the regional economy received USD 636,9 million of foreign investments, including USD 380.9 million (59.8%) of direct foreign investments.
Investors implementing projects on the territory of the Leningrad Region are given every opportunity for successful business. The 1997 regional law “On State Support of Investment Activities in the Leningrad Region” (as the regional law on December 26, 2008 № 151-oz) is considered to be one of the most transparent and understandable laws for foreign and Russian investors.
It defines a set of measures of state support and protection to investors engaged in the Leningrad Region investment in the development of manufacturing industries, agriculture and fisheries, mining, hotels activity, construction, production and distribution of electricity, gas and water, transport and communications. Since the adoption of this law there are over 140 agreements signed between the Leningrad Region and investors.
The most favored treatment regime formed by provision of significant tax benefits for assets and profits is given to investors for the entire investment payback period plus two years after the cover of expenditure of the investment project.
State support for business entities may also be in the form of state guarantees of the Leningrad region.
- The regional Law № 24-оz, 22.07.1997 “On State support to investment activity in the Leningrad Region”
- The regional Law № 98-oz, 25.11.2003 “On corporate property tax”
- Decree of the Leningrad Region Government № 11 enacted at 30.03.1998 “On approval of the Methodic of calculation of breakeven point and period of actual payback period for implementing tax benefit regime in Leningrad Region”
- Decree of the Leningrad Region Government № 256 enacted at 25.12.2003 “On accreditation of legal entities carrying out consultancy activity in the Leningrad Region”
- Decree of the Leningrad Region Government № 209 enacted at 30.06.2006 “On approval of Regulation of evaluation of effectiveness and carrying out a monitoring of implemented and taking into implementation projects financed with the involvement of the Leningrad Region budget funds”
- Decree of the Leningrad Region Government №413 enacted at 30.12.2009 “On approval of the Procedure of provision of subsidies from the Leningrad Region budget to legal entities implementing investment projects on the territory of the Leningrad Region, which are under preferential treatment regime”