Investments

6 reasons to invest in Samara Region:

1. High level of economic activity
2. Well-developed innovation and educational potential
3. Investment-oriented laws and regulations
4. Favorable environment and well-developed social assets
5. Effective strategy of investments attraction and project monitoring
6. Advanced civil society

Consistent and targeted work is carried out in Samara Region to create more comfortable regional investment environment.

Basic principles of investment policy of the Samara Region:

• securing the appropriate information, and institutional environment to attract investment
• elimination of barriers to entry into the local market
• providing effective business support at the legislative level
• efficient public-private partnership

Investment legislation

Regional investment law guarantees equal treatment for all investors, promotes the elimination of administrative barriers, establishes favorable tax regime and incentives.

The main instrument for managing the investment process is the regional law "On State Support of Investments and Investment Activity in Samara Region."

Organizations implementing investment projects in Samara Region can benefit from government support at all stages and phases of the project.

At pre-investment stage, the regional law provides:

1. State supervision for investors implementing investment projects worth 650 million rubles and more, providing investors with information and legal support, including in the paperwork required to implement the investment project.
2. Reporting on the business environment during investment fairs and exhibitions organized by public authorities.
3. Methodological and advisory assistance, familiarization with the information and analytical materials, including the database of vacant production areas and land in the territory of Samara Region.
4. Long-term capital-intensive inter-municipal investment projects and investment projects involving state-owned assets of Samara Region are implemented on a competitive basis. Tender procedure is determined by the regional Government.

At the stage of implementation of investment projects, the regional law provides:

1. State guarantees for investment projects on a competitive basis.
2. Equity participation of Samara Region in the authorized (share) capital of legal persons implementing investment projects in accordance with existing federal and regional legislation.
3. Subsidies on the gratuitous and irrevocable basis for investors who produce goods and provide services (excluding producers of agricultural products), as a recovery of all costs incurred by the investor during investment project implementation.

Subsidies are provided on the principles of competitive selection according to the criteria of efficiency of investment projects implemented. Categories and criteria for selection of investors eligible for a grant, goals, conditions and procedure for granting subsidies, and other conditions are determined by the Government of Samara Region.

At the stage of completion of investment projects, state support for investors in Samara Region is provided in the form of property tax exemptions. In addition, major investors (investment over RUR 650 million) can get reduction in income tax rate to 13.5%. This benefit may receive the organization, implementing investment projects in accordance with the laws of Samara Region "On the Corporate Property Tax in the Territory of Samara Region" and "On the Reduced Rates of Corporate Income Tax, Payable to the Regional Budget."

Preferential taxation of organizations is established for the payback period of the investment project, but not more than 7 years.

In Samara Region considerable attention is paid to the formation of development institutions assisting with realization of investment projects.

Corporation for Samara Region Development founded by Samara Region and State Corporation "Bank for Development and Foreign Economic Affairs (VEB) " has worked in the region since 2008.

The Corporation′s main activities are direct participation in investment projects and creation of joint organizations with investors implementing investment projects on transport, road, energy, utilities, social and environmental infrastructure, major innovation projects in industry, communications and information sector, agriculture.

Public-Private Partnerships

Public-private partnership is one of the most promising directions of the regional investment policy. Relevant legal framework is now being formed, assigning major principles of public-private partnerships and aimed at efficient interaction between executive authorities and private entities.

The Concept for Implementation of Public-Private Partnership Projects has been adopted in the region. The Concept has become a basis for the regional law "On Participation of Samara Region in Public-Private Partnerships”, passed in 2010. This legislative framework aims to reduce the risks for private investors, thus increasing the attractiveness of investments in Samara Region.

Cluster approach

Investment priorities and the strategy for socio-economic development of Samara Region are based on the cluster approach to the regional economy. Development of clusters aims to increase the competitive ability of various sectors of economy, develop the regional technological and innovation potential. Samara Region was the first Russian region to utilize cluster approach, with the following clusters having been formed:

1. Automotive cluster
2. Aerospace cluster
3. Oil production cluster
4. Chemical cluster
5. Transportation and logistics cluster
6. Tourist and recreational cluster
7. Agro-industrial cluster
8. Innovation cluster

Ratings

Rating Agency "Expert" has assigned 2B investment rating to Samara Region (medium potential - moderate risk). The region occupies 41th place among Russian regions in investment risk, and 10th in investment potential. The lowest investment risk is administrative, the highest is criminal. The highest potential is labor, financial and innovative.
International rating agency Moody′s Investors Service has assigned Samara Region’s inernational credit rating at ‘Ba1’, outlook stable. National scale rating is ‘Aa1.ru.’

Standard & Poor′s. Credit rating on the international scale at ′BB +′, Russian national scale - at ′ruAA + ", outlook stable. The outlook is based on the fact that in 2011-2013 additional revenues and already secured sources of refinancing will allow Samara Region to cope with the growing pressures on the expenditure budget without deteriorating the liquidity indicators.

Ministry of Economic Development, Investment and Trade of Samara Region
Minister – Gabibulla R. Khasaev
Address: 210, Molodogvardeyskaya Str., 443006 Samara, Russian Federation
Tel.: +7 (846) 332-2744
Fax: +7 (846) 332-2233
E-mail: minister@economy.samregion.ru