Altai Territory is a region with fast developing economy and favorable conditions for investment attraction. The main advantage of the region is its unique geographical position on the crossroads of transcontinental transit cargo and passenger flows.
Altai Territory provides the following conditions for successful investment attraction:
unique natural resources
developed market infrastructure
highly qualified competitive manpower with high level of education and wide range of professions
even distribution of population across the region
considerable economic potential
favorable investment climate
constant positive dynamics of GRP, resulting from growth of production output of products and services in the key branches of economy
fertile farmlands, suitable for temperate-zone and subtropical crops cultivation
unique recreational resources enabling development of practically all types of tourism
To enhance investment potential of the region, certain trends of priority development have been specified, including projects in the following spheres of economy:
agriculture: plant growing, cattle-farming; manufacture of agricultural machinery
biopharmaceutics: production of medicaments and food stuff bearing certain preset properties
industrial production
touristic, recreational and resort services
mining industry: metals, complex ores
electrical power industry
gambling business
At present, Altai Territory can offer a wide range of investment projects, the largest of them being presented below:
1. Integrated development of Altai Priobye. Total cost – USD 20 bln.
Being traditionally one of the largest producers of agricultural products in Russia and Siberia, Altai Territory has good chances of being granted the status of “particularly important agrarian territory of the Russian Federation”. The implementation of this large scale pilot project is closely bound up with the development of the draft federal law on “particularly important agrarian territories of the Russian Federation”.
Total investments in the project exceed RUR 590 bln, 40% of them being state funds and 60% - private investments. The project involves the development of Altai operating enterprises potential. Many of enterprises have already submitted their investment projects, which are now being considered.
2. Gambling zone ′Sibirskaya Moneta′ (translated from Russian as "Siberian coin"). Total cost - USD 1 bln.
One of the four Russian gambling zones is to be set up in Altai Territory. “Sibirskaya Moneta” gambling zone will occupy the area of 2,304 ha. One fifth of the required investment is to be spent on creation of external infrastructure. Capital assets will probably be attracted from private investors.
A number of companies from Russia, Austria, Algeria, the United Arab Emirates have taken interest in development of Altai gambling zone.
Key advantages of “Sibirskaya Moneta”:
stable flow of visitors, tourists from Siberian regions and the nearby countries (Kazakhstan, China)
favorable landscape and climate conditions
minimal expenditures on the objects of external infrastructure, due to proximity of SEZ "Biryuzovaya Katun′
The project “Sibirskaya Moneta” involves building 15 casinos, 10 gambling and recreational complexes, 30 hotels able to accommodate 3,000 people. The territory of gambling zone will include business and administrative offices, sports and park center, complex for mountain sports and entertainment, golf courses, open-air cinema.
3. SEZ ′Biryuzovaya Katun′. Budget – USD 600 mln.
Tourist Special Economic Zone “Biryuzovaya Katun” was designed for a 20 year term in Altai district of Altai Territory. It was set up on the territory of existing tourist complex and aims to render tourist, health-improving and resort services at the level close to the highest global standards.
“Biryuzovaya Katun” is the first Russian large integrated complex combining natural and extreme tourism in the mountains with rigid division into “extreme zone for the youth” and “respectable zone” for wealthy tourists.
SEZ “Biryuzovaya Katun” is an example of implementation of public- private partnership concept in tourism, involving creation of engineering and transport infrastructure at the expense of the state, and touristic infrastructure at the expense of private investors. The concept of SEZ organization and development has been worked out by German consulting company “RolandBerger Strategy Consultants”.
The residents of SEZ "Biryuzovaya Katun′ will be granted tax and property rebates.
Investment legislation
Legislation of Altai Territory secures comfortable investment conditions, minimal financial risks and protection of investor’s property rights.
One of the principal regional legal acts regulating investment activities in the region is the Law on “Investment activities on Altai Territory”. The law is complimented by the system of statutory acts that regulate different stages of investment process, making cooperation procedure between investor and regional authorities open and transparent.
Investor implementing a project strategic for the region with the budget of min USD 17 mln, can expect non-financial support:
distribution of positive information about investor and the project implemented
adding the project into exposition of Altai Territory at international and national exhibitions and fairs
support in case of appeal to the federal authorities, for instance in order to participate in the federal target programs
adding the project into the list of projects expecting state support from Investment Fund of RF
State support of the real sector of economy is executed through the following mechanisms: partial subsidy assistance with bank interest rate, leasing, subsidy assistance with property tax and income tax.
Investment ratings
RA “Expert”:Investment rating of the region – 3B1. Low potential – moderate risk. The region climbed from 62nd position to the 37th in investment risk, which shifted it from the high risk zone to moderate risk zone.
In 2011 the international rating agency “Fitch Ratings” affirmed long-term foreign and national scale ratings of Altai Territory at ′BB′ and the national long-term rating at ′AA-(rus)′. Short-term rating in foreign currency was confirmed at ′B′ level. At the same time, the agency upped its outlook on long-term foreign and national ratings from ′Stable′ to ′Positive′.
Chief Department of Economics and Investment of Altai Territory
Head of Department
Michail P. Shchetinin
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