Investments

Leningrad regional Government pursues investment policy based on its specific advantages such as geopolitical, nature resources, economic, scientific and technological potential, as well as good tax treatment.

Leningrad Region’s investment climate is defined by the following parameters:

• Unique geopolitical location
• Powerful innovation industrial and personnel potential
• Developed legislation for investment activity
• Tax privileges and state support for investors
• Information transparency
• Political, social and economic stability

The geopolitical location has the following advantages:

• Russian gate to Europe and European gate to Asia
• Advantageous seaside location, a lot of sea ports
• Powerful transport node located in the 9th European transport corridor
• Crossroad of sea, river, railroad, motor, air, pipe and telecommunication tracks
• Frontier location (borders the EU)

Investors implementing their projects in the region have all the necessary conditions for successful business. The regional legislation has a number of investment regulations which stimulate investment activity in the region and regulate means of investor support. The regional law “On state support of investment activity in Leningrad Region” is considered to be one of the most transparent and clear laws for foreign and Russian investors.

The above mentioned law and the Leningrad regional law “On tax rates for investors working in Leningrad Region” stipulate the means for state support and protection of investors dealing with manufacturing, agriculture and fishing industries, as well as mining, hotels, construction, power supply, communications and transport. The laws envisage tax privileges and subsidies for investors.

Active investment policy of the regional government is aimed at efficient use of the actual potential and makes it possible to attract more than $5 bln investment per year, set up dozens of new enterprises and ensure constant growth of tax proceeds.

Investment policy of Leningrad Region pursues the following trends:

• Development of the regional investment legislation and legal framework for business support
• Provision of information transparency of the region
• Creation of specialized market infrastructure ensuring efficient investment process
• Restructuring of companies to increase their investment attractiveness

The current investment attractiveness ratings of the Leningrad Region are as follows:

• According to the leading rating agency Expert RA, as of 2008-2009 Leningrad Region is one of the low potential and moderate investment risk regions. The region also ranks 57 by investment risk and 25 by investment potential. The least investment risk is economic and financial, the most is social. The most investment potential is infrastructure.
• In December 2009 Standard & Poor′s, the international rating agency, confirmed the credit rating of Leningrad Region in foreign currency at BB level and in national currency at ruAA level. Both ratings are stable.
• In June 2009 Fitch Ratings, the international rating agency, gave Leningrad Region the long-term credit rating in foreign and national currency of BB level and short-term rating in foreign currency of B level, as well as national long-term credit rating of AA(rus) level. All the ratings are stable.

The total region’s need in investment resources today is not less than 10 billion US dollars.

With the demands of the local economy taken into account, the most promising sectors for investments are follows:

• Energy complex and power-consuming industries. Leningrad Region is one of nine regions in the Russian Federation with an energy surplus, and electrical costs for industrial consumers in this region are one of the lowest in the country.
• Thorough wood processing. The Government of the Leningrad Region is ready to lease to potential investors forest areas that will allow them to lay in and process about 5 million cubic meters of wood in a year in additional to the volumes stocked at present moment.
• Transport and telecommunication - development of seaports and river-ports, automobile and railroad highways, airports and pipelines, and their exploitation.
• Tourism – the priority development of excursion, water, rural, active and social tourism.
• Science intensive and high- tech industries.
   

Committee for Economic Development and Investment Activity
67 Suvorovsky Ave., 193311 St. Petersburg
Phone: +7 (812) 274-1446
Fax: +7 (812) 576-65-73
E-mail: econlobl@loblecon.spb.ru; gdvas@loblecon.spb.ru  

External Economic and International Relations Committee
67 Suvorovsky Ave., 193311 St. Petersburg
Phone: +7 (812) 274-47-42
Fax: +7 (812) 274-59-86
E-mail: kvs@lenreg.ru