Investments

Investment policy of Orel Region is focused on:

• creation of favourable investment environment that could secure region’s attractiveness for investors of various categories
• working out priorities and strategic zones for investment activity

Orel authorities have done a lot over the previous several years to attract domestic and foreign investments in the regional economy. The volume of capital investment grows from year to year; by the end of 2009 it made RUR 19.9 bln (USD 663 mln).

The Government of Orel Region pays special attention to the following aspects, aimed at activation of investment activity:

• Shaping of the land lots subjected for further implementation of investment projects
• Development of engineering infrastructure of investment grounds required for accommodation of new production facilities
• Organization of public-private partnership – the budget will finance construction of infrastructure objects required for project implementation, which will eventually become the regional property
• Cooperation with owners of inefficient enterprises aimed at their involvement in the investment process within the frameworks of antirecession measures
• Cooperation with enterprises aimed at improving their investment attractiveness and working out the short-term strategy for production development
• Upgrading of Orel Region legislation in order to extend the range of financial and legal ways of investment activity stimulation

Regulatory framework was created to secure fruitful investment activity. Terms stipulated by the Law “On Investment Activity in Orel Region” are favourable for both domestic and foreign investors, since they enable activation of operation of small and medium-size business enterprises, growth of industrial and agricultural production. Implementation of top priority investment projects involves both major Russian and foreign companies.

In the fall of 2009, the Law “On State Support for Investment Activity in Orel Region” was enforced in view to stimulate and develop investment activity in the region. The law establishes the forms and methods of state support for investment activity in Orel Region.

General principles of state support of investment activity in Orel Region:

• equal rights to all investors, commonality and openness of public procedures
• availability and transparency of information necessary for investment activity execution 
• equation between public and private investors
• legality, objectivity, economic feasibility, stability and obligatory execution of adopted resolutions
• urgency, repayment, fee-payment and profitability

The region holds annual Investment Fair, representing investment potential of Orel Region. Agreements signed at Investment Fairs over the past 5 years helped raise more than RUR 80 bln for the economy of the region.

Regional authorities use opportunities provided by favourable investment climate to facilitate business activity of market participants.

United database of investment projects and investment passports of municipal formations of Orel Region was compiled. At present, the databank on land lots and vacant production floors, suitable for investment projects’ implementation is being created.

Investment attractiveness rating

Russian rating agency “Expert-RA” has assigned 3B2 rating (moderate risk – insignificant potential) to Orel Region. Among 83 Russian regions, Orel Region ranked 45th in investment risk and 61st in that of investment potential. The region has advanced infrastructure potential.

Contact information:

Department of Economic Affairs of Orel Region
Head of the Department
Yury A. Yesipov
1, Pl. Lenina (Lenin Square), 302021 Orel, Russia
Tel.: +7 (4862) 475-275
E-mail: eua@adm.orel.ru