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Mechanisms to encourage investment process in the Astrakhan region

The Government of the Astrakhan region uses different mechanisms to
stimulate investment process in the region combining administrative (investment
law improvement, assessment and monitoring of investment projects) economic
(government support for priority projects by tax benefits, budget guarantees,
subsidies, mechanisms of depreciation and capital charges) and institutional
mechanisms to create and support a number of institutions necessary for subjects
of regional investment system and to implement the investment strategy of the
region.
1. Creating an enabling regulatory environment for investment
An Investment Council under the Government of the Astrakhan Region is
established in the region as a coordinating, inter-agency body for investments with
the view to improve the investment climate and interaction with investors. The
Council is chaired by the Vice-governor - Chairman of the Government of the
Astrakhan Region and formed from the heads of relevant executive authorities of
the Astrakhan region
Non-Profit Partnership "The Caspian Investment Agency" is defined as a
strategic partner of the Government in the field of investment promotion and
investor relations.
It has the following main functions: to create positive image and
attractiveness of the Astrakhan region in Russia and abroad; regularly search and
attract investors; develop promising investment areas; create project teams to
support specific investment projects as well as to develop proposals for improving
the investment climate.
The main emphasis by the Government of the Astrakhan region is on
improving the regional investment legislation.
A new adopted Law of the Astrakhan region No.17/2011-ОZ dated
13.04.2011 "On public support of investment activity in the Astrakhan region",
allows the Government of the Astrakhan region to use new mechanisms to
stimulate investment activity including tax benefits, public investment, subsidies
from the regional budget, state guarantees as well as to provide property of the
Astrakhan region as security for loan obligations of investors in the
implementation of significant projects in the region.
Currently, the Agency for State Property Management of the Astrakhan
region defines a list of the regional property objects to be included in the mortgage
fund of the Astrakhan region as well as determines how to transfer these objects to
guarantee fulfillment of loan obligations of subjects of investment activities who
have no property, property rights, allowing them to enforce the obligations in full.
In addition, the new law provides informational support to investment
activity in the Astrakhan region as well as quality monitoring of investment
projects by heads of executive bodies and local authorities with their personal
responsibility for the implementation of projects.

approved by the Government of the Astrakhan region” Property tax Concessionary rate Basic rate Concessionary rate 0. “Rosnanotechnologies”. They are the following: “Industrial and Commercial park “Zaboldinskiy” (Astrakhan. “Jubileyninskiy selsovet”. Income tax Status name Basic rate “particularly important investment project” “investment project. Leninskiy district) and Agroindustrial park “Alcha” (Alcha settlement.2 % (on all property) 13. 4. register land rights and supply it with energy. investment and venture capital funds. Currently. Formation of financial mechanisms to attract and support investment The Government of Astrakhan Region actively works with local and international development institutions. Krasnoyarskiy district of the Astrakhan region). approved by the Government of the Astrakhan region” and “particularly important investment project” are provided with exemptions for income and property taxes in accordance with the regional legislation. foreign government investment agencies. put the land to the state cadastre. specialized financial institutions and organizations to promote various investment projects. JSC "Russian Venture Company”. 3.2. Creating the infrastructure prepared for investments Territories of the integrated development (TID) with infrastructure prepared for investments are formed in the Astrakhan region in order to create conditions for industry and agriculture development including new production and the most advanced technologies.03. as well as a non-profit partnership “National Association of Business Angels of Russia”.5 % 1. 147-P dated 31. Local authorities of the Astrakhan region are the projects initiators. Tax Incentives for investment In accordance with the Law of the Astrakhan region “On state support of investment activity in the Astrakhan region” investment projects with a status of “investment project. transport and telecommunications infrastructure.22% 15. banks. In accordance with the Resolution of the Government of the Astrakhan region No.2010 “On the procedure for creating territories of the integrated development of the Astrakhan region” municipalities form isolated areas and within their boundaries by the respective budgets carry out land management. It has entered into cooperation agreements with the State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)”.1% (on the property involved in the project) . two territories of integrated development have already been formed in the Astrakhan region. engineering.5 % 20% 2.

.7 billion rubles.Investment projects with a status of “investment projects implemented in the territory of the integrated development” are supplied with transport and (or) technical infrastructure for their realization on the territory of the integrated development. There are 223 investment projects being currently implemented in the region with total investment of 317.