Investments

Short-term investment policy of Penza Region is mainly aimed at increasing return on investments in production units, that make competitive products for domestic and external markets.

Positive features of Penza Region investment image include:

• Favorable geographical position
• Favorable ecological conditions 
• Developed small business
• High intellectual and personnel potential
• Favorable social and cultural climate, touristic potential
• Stable political and social situation
• Insignificant level of criminal risks

The Government of Penza Region is taking measures aimed at attracting and protecting investment, particularly foreign investment, providing free flows of goods, services, information, financial means, free economic activities. At present, electronic databases (in Russian and in English languages) are being developed, the data are used for preparation of printed presentation materials – catalogues on investment opportunities, profiles of investment grounds.

The most significant business-projects to be implemented within the Region receive Governor’s Wardship Certificate, designed to activate investment attraction, as well as cease possible violations in investment projects registration procedure and promotion efforts. The Certificate guarantees:

• Invariable economic starting conditions within the implementation period of a project
• Setting of standards for accelerated depreciation of equipment stipulated by investment project
• Granting of right for legal and physical bodies who obtained Wardship Certificate to pass through reconciliation in appropriate state legislative authorities in the first instance and to receive 50% rebate on service charge, including development, appraisal and promotion of investment project.

Priority sectors include:

• production of paper, carton and articles made out of them
• production of wooden and building structures
• production of confectionery
• brewing
• production of dairy products
• hog and poultry growing
• production of meat products
• production of wooden furniture and lumber
• production of reinforcing
• production of diesels and turbine compressors

Investment legislation

Penza authorities have elaborated regional legislative base in terms of investment activities and complex system of regulations based on three key laws: " On Investment Strategy in Penza Region", "On Investment in Penza Region", "On Introduction of Corporate Property Tax in Penza Region", a number of resolutions and orders issued by Government and Governor of the Region.

The law "On Investment in Penza Region" envisages the following preferences:

• tax incentives – in terms of income tax, property tax, land tax concerning the part payable to the regional budget
• tax and budget credits, subventions and subsidies
• exemption from rent for allotments owned by Penza Region
• real estate leasing allowances
• regional budget financing of capital repair and construction of public-service infrastructure
• administrative support

Largest foreign companies investing in Penza Region:

• International trust company "Euroservice", Sucden Group and Promindex Group of Companies are the largest investors in reconstruction projects implemented on 3 local sugar mills
• United company "Invest МV" CJSC (the Netherlands) – cultivation of roses using Dutch technology
• PenzaDecor Ltd. (Germany) – production of paper and paper goods
• TREI GmbH Ltd. (Germany) – production of industrial controllers, enterprise automation
• Technocell Dekor (Germany) – one of the investors in re-equipment of production facilities at Mayak JSC.

The Government of Penza Region is interested in attraction of investments into the regional economy, primarily in order to develop:

• Production of export-oriented and import-replacing products
• Machinery industry and processing industry
• Scientific and industrial potential for production of hi-tech and globally competitive products
• Transport and communications infrastructure
• Service sector (creation of networks of service and travel companies, construction of hotels and motels, campings, creation of recreation zones).

Ratings

Penza Region refers to a group of regions with moderate investment risk and low potential, according to the estimate of the leading Russian rating agency "Expert RA" (category 3В1). The Region ranks 38th among all the Russian regions in investment risk, and 48th in investment potential.

Investment Promotion Department of the Government of Penza Region
Head of Department - Evgeny A. Murashkin
Address: 36A Kuraeva Str., 440600 Penza, Russian Federation
Tel.: +7 (8412) 991-551
E-mail: penza-invest1@mail.ru