Investments

Tambov Region′s investment climate can be characterized by:

• developed system of basic legal norms, that secure effective functioning of business and regional authorities
• competitive commodity, services, capital and labour markets
• high level of economic openness
• presence of a cluster of companies which successfully compete both at domestic and foreign markets and raise capital for their development

The industrial sector offers excellent investment opportunities and enhances economic growth of the region. Political risks of doing business in Tambov Region have been reduced to a minimum. Application of public-private partnership principles allowed high consolidation of regional authorities, businessmen and key social classes efforts in achieving the main objectives of social and economic development of the region.

Legislative and executive authorities of the region provide comprehensive support to industrial enterprises, which contribute significantly to the positive dynamics of the real sector of economy. State supportive measures are targeted at the implementation of investment and innovation projects that exercise the maximum multiplicative effect on the economy.

Vigorous investment activity of most of the enterprises results in effective performance of industry in general. About 30 major investment projects are being currently implemented in this sector of economy, including:

• Pigment OJSC – 2 investment projects on technical retooling of facilities involving state support from the regional budgetary funds, reconstruction and modernization of key technological schemes of pigments and gasoline antiknock additives production.
• ElectroPribor OJCS carries out the Program “Development of basic technologies and constructions of laser gyroscope transmitters and service electronics”. The enterprise experts have purchased and assembled advanced vacuum, metal-working and metering equipment. Total scope of investments made RUR 205.4 mln (USD 6.8 mln). 
• Tamak CJSC is reconstructing glued wood shop and cement chipboards manufacturing line involving purchase of high-performance equipment.

Legal and regulatory framework

In 2007 the regional law “On State Investment Policy and State Preferences in Tambov Region” was enacted in the region to execute the following functions:

• secure basic principles of Tambov Region’s investment policy in terms of investment activity regulation
• establish types and terms of granting state preferences to subjects of investment activity 
• facilitate investment attraction, stimulate investment activity in the region

The existing regional legislation envisages state support of investment activity in the form of tax rebates as related to additionally accrued tax obligation:

• For investors implementing investment projects in the region, corporate profit tax rate, as related to the tax amount payable to the regional budget, is reduced to 13.5%, in respect to the profit gained by selling the products, that have been manufactured at the facilities set up within the framework of the investment project or produced using new technologies introduced as part of project implementation.
• Organizations included in the list of those implementing priority investment projects subjected to state support, are exempted from property taxes in respect to the property constructed and (or) purchased in order to implement investment projects and increment of value of fixed assets renovated in accordance with investment projects.

Together with granting tax rebates, state support envisages:

• granting budget credits
• granting budget investments 
• granting rent allowance for the real estate units owned by Tambov Region, including the real estate units and land lots
• granting state guarantees of the region 
• granting subsidies to partially reimburse the part of expenses on credit and/or loan interest rate payments in respect to the credits and loans obtained for investment projects implementation, or on leasing payments, maid to leasing companies for the property purchased under leasing contracts concluded for investment projects implementation
• granting mortgage security
• granting investment tax credits
• development, approval and backing of intermunicipal investment projects and those implemented at the units of the regional state property and at the expense of the regional budgetary funds 
• formation of investment grounds
• formation of technoparks
• funding of reconstruction of the existing communal infrastructure and building new infrastructure up to the borderline of the investment object 
• conclusion of concession agreements with both Russian and foreign investors according to the results of auctions and tenders.

In 2009 Administration of Tambov Region adopted a resolution on foundation of Interagency Investment Policy Council, which acts as an advisory body in terms of stimulation of investment and entrepreneurial activity in the region. The Interagency Council secures state support for investment activity and is responsible for increasing economic competitiveness in line with the priority trends of the region’s development.

Investment ratings

In May 2011, "FitchRaitings” affirmed the long-termed rating of the region in foreign and national currencies at “BB-“ with a “Stable” outlook. Short-term rating in foreign currency is rated at “В”, long-term national rating at "A(rus)".

According to “Expert RA”, investment rating of the region is 3B2 (insignificant potential – moderate risk). The region ranks 23rd among all the RF regions in terms state-guaranteed order placement.

International and Interregional Relations Department
Head of the Department - Oleg N. KADYKOV
Address: 118 Sovetskaya Str., 392000 Tambov, Russia
Tel: +7 (4752) 790-936
E-mail: post@mms.tambov.gov.ru

Economic Policy Department
Head of the Department - Lyubov I. FYODOROVA
Address: 14 Internatsionalnaya Str., 392000 Tambov, Russia
Tel: +7 (4752) 72-23-41
Fax: +7 (4752) 72-54-16
E-mail: post@ekon.tambov.gov.ru