Investments

The Vologda regional government has worked out a number of measures for increasing investment inflow in the regional economy:

• Governmental support of investment activities (including tax privileges)
• Establishment of transparent investment procedure
• Development of tools for dealing with regional investment projects

The government has also developed a set of laws for improving investment climate. Complex system of statutory acts regulating investment activities in the region is based on the Law "On State Regulation of Investment Activity on the Territory of the Vologda Region" that provide guarantees and privileges for enterprises and organizations that attract investments or deposit investments into production. The law stipulates:

• Establishing a wide range of real functioning forms of government support for financing investment projects
• Providing investors with tax privileges
• Application of the following principle оf non-deteriorating conditions for investors in case new acts are passed
• Information support for potential investors

The above mentioned law is systematically corrected, amended and modified according to current changes in the economic process.

High investment attractiveness of Vologda Region is confirmed by the Ministry of Economic Development and Trade of the Russian Federation and various Rating Agencies:

• According to the Russian rating agency Expert-RA Vologda Region has proved to be one of the most attractive and stable regions in the terms of investment climate for the first time in all the 14 years of this rating. In 2009 the agency affirmed Vologda Region rating at ′3B1′.
• In December 2008, the international rating agency Moody′s Investors Service assigned ′Ba1′ global scale rating to Vologda Region. The outlook is stable. At the same time, the Russian rating agency Moody′s Interfax affirmed the national scale rating at ′Aa1.ru′.
• In April 2009, Standard & Poor′s affirmed Vologda Region credit rating at ′BB-′, with stable outlook.

The ratings are supported by stable economic growth of the region lately, as well as responsible budget policy of the regional government, good credit history and very low debt load.

The Region development strategy aims to maintain the today’s industrial potential and develop competitive advantages, such as:

• Increase home sales of the regional metallurgy industry and turn it into the main raw material supplier for the national machine building and metal working
• Further development of the chemical industry due to new competitive products
• Development of the regional timber industry due to new capacities of fine timber processing and new world class products
• Accelerated development of consumer industries – first of all, food industry with its promising raw material stock; integrated production, processing and sales of agriculture products
• Stimulation of construction industry by supporting projects which develop new construction materials and new cost saving technologies
• Consolidation of positive trends in the agriculture industry - accelerated cattle farming (cattle products subsidies, livestock breeding support, equipment leasing, etc.) and stimulation of small agriculture businesses and development of rural credit cooperation
• Development of the communication infrastructure and adoption of information and communication technologies which will significantly increase efficiency of economic activity, reduce expenses and open up new information possibilities 

Investment Policy Department
Head of the Department – Roman B. MARKOV
Address: 2 Gertsen Street, Vologda 160000, Russia
Tel.: +7 (8172) 721-254
Fax: +7 (8172) 721-092
E-mail: bp@vologda-oblast.ru

Committee on Foreign Economic Activity
Head of the Department - Yury V. SENKO
Address: 2 Gertsen Street, Vologda 160000, Russia
Tel. +7 (8172) 723-170
Fax: +7 (8172) 769-619
E-mail: ved@vologda-oblast.ru