Saratov Region is a dynamically developing region that has a number of significant competitive advantages and favourable business environment.
Investment climate highlights:
Sufficient power production to meet the region’s demand. The region consumes less than one third of the total energy output (42 bln kW/hour).
Low cast land. Availability of more than 650,000 ha of idle agricultural lands, lands belonging to settlements, production sites with utilities and power and heat plants.
Gas production is carried out in the region (all the settlements and enterprises are entirely gasified). Oil recovery and oil refining performed in the region secure low cost of POL (petroleum, oil and lubricants).
Potential investors are by tender provided with unclaimed reserves of oil, gas, oil condensate, oil shale containing shale gas and shale oil, as well as mineral resources (chalk, limestones, expanded clay, clays, cement, sands, mineral water, potassium salt and magnesium salt, sulphur, phosphorites, silica rock).
Low-cost labour.
Low construction costs (residential, industrial, commercial property), low-priced rent.
Developed transport infrastructure.
The region borders on Kazakhstan, which provides the outlet to the countries of Central Asia and China.
Proximity to Moscow Region, distance to Moscow - 858 km.
Southern moderate climate allows lower expenditures on heating, lighting and machinery maintenance.
Bank and insurance sectors have seen rapid development over the last years. Communications and telecommunications are at high level.
Stable political situation, low crime level. Ethnic and confessional tolerance.
High scientific, technical, cultural, medical and educational potential of the region.
Highly skilled personnel
Investment legislation
In 2007 the Law “On the Most Favored Nation Treatment for Investors in Saratov Region” was passed to become a kind of “investment code”, providing investors with the whole range of allowances and preferences, including the “single window” mode.
The legislative package regulating corporate taxation includes:
Law “On Corporate Income Tax Rates for Investors Involved in Investment Activities in Saratov Region”
Law “On Imposition of Corporate Property Tax in Saratov Region”
Investors are offered remission of transport tax, lower corporate property rate starting from 0.1%, reduction of income tax rate payable to the regional budget from 18% to 13.5%.
In 2006 the Law “On the Pledge Fund of Saratov Region” was passed. The fund aims to attract investment for implementation of top-priority investment projects on security of the regional property.
In 2007 the Governor’s Investment Board was founded to carry out consistent work on investment promotion, as well as perform technical and territorial adaptation of investment projects to be implemented in Saratov Region.
The Government of Saratov Region annually holds “Investor of the Year” competition among the companies doing business in the region and investing heavily in its industrial development.
Investment opportunities
The Ministry of Investment Policy of Saratov Region is searching for investors to implement the following investment projects:
Oil refinery construction (volume of investment – over USD 3.4 billion)
Pharmaceutical factory construction (volume of investment – over USD 30 million)
Brewery construction (value of output - USD 3 million per year, volume of investment – USD 14.9 million)
Complex oil shale mining and processing in Saratov Region
Construction of marketable sheep farms in southeastern climatic zone of the region favourable for sheep farming
All investment projects have been developed in accordance with requirements of the United Nations Industrial Development Organization (UNIDO).
Potential investors are also offered to consider housing and utilities sector, where private-public partnership scheme can be applied.
Investment ratings
Moody’s Investors Service has assigned Ba2 credit rating at the global scale and Аa2.ru credit rating at a national scale to Saratov Region. The outlook is stable.
Russian rating agency “Expert-RA” has assigned 3B1 investment rating (low potential – moderate risk) to Saratov region. The region ranks 34th in investment risk and 24th in investment potential among 83 regions of Russia. The lowest investment risk is criminal, while financial risk is the highest. Innovation potential is the highest one.
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