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-Z 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.
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. In accordance with the Resolution of the Government of the Astrakhan region No. 147-P dated 31.03.2010 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, put the land to the state cadastre, register land rights and supply it with energy, engineering, transport and telecommunications infrastructure. Currently, two territories of integrated development have already been formed in the Astrakhan region. They are the following: Industrial and Commercial park Zaboldinskiy (Astrakhan, Leninskiy district) and Agroindustrial park Alcha (Alcha settlement, Jubileyninskiy selsovet, Krasnoyarskiy district of the Astrakhan region). Local authorities of the Astrakhan region are the projects initiators. 3. Formation of financial mechanisms to attract and support investment The Government of Astrakhan Region actively works with local and international development institutions, investment and venture capital funds, banks, foreign government investment agencies, specialized financial institutions and organizations to promote various investment projects. It has entered into cooperation agreements with the State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank), Rosnanotechnologies, JSC "Russian Venture Company, as well as a non-profit partnership National Association of Business Angels of Russia. 4. 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, 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. Income tax Status name
Basic rate
particularly important investment project investment project, approved by the Government of the Astrakhan region
Property tax
Concessionary rate Basic rate Concessionary rate
0,2 % (on all property)
13,5 % 20%
2,22% 15,5 %
1.1% (on the
property involved in the project)
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 317.7 billion rubles.
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