BENEFITS FOR INVESTORS
The Regional Government provides all investors registered and implementing investment projects on the territory of the Yaroslavl Region are with the following support:
— Methodological, informational and organizational support at the stage of business planning and search for investors;
— State and legal guarantees at the stage of attracting investors;
— Subventions from the Regional State Budget, including reimbursement of banking credit interest payments, at the stage of attracting credit resources;
— Tax exemptions and investment tax credits as well as preferential rent rates for the usage of the tenements owned by the Yaroslavl Region at the stage of initial realization and product release.
The local legislation allows a simplified procedure of receiving State support, based on the "One-Window" principle.
One of the main tasks of the regional investment policy is creating most favourable financial, economic, legislative and organizational conditions for investments. This policy is part of the of social and economic development strategy for the 2004 - 2007 period, entitled "From Survival to Prosperity" logically continuing the previous development programme implemented in 2000 - 2004.
Application of the regional legislation supporting and stimulating investments as well as protecting investors' rights plays a considerable role in this work.
With this purpose in mind, in 1996 the Legislative Assembly of the Yaroslavl Region was among the first in Russia to adopt the regional law entitled "State Support of Investments in the Yaroslavl Region."
The year 2005 witnessed the adoption of the law on "State Regulation of Investments in the Yaroslavl Region." In the course of preparation of this law the local conditions of economic development and the federal legislative requirements had been taken into account and its scope had been expanded to include not only State support but also regulation of investments.
The efficiency of State support in 2001-2005 is characterized by the following figures: for every 1 rouble of State support there were 16 roubles of off-budget capital investments into top-priority projects and 3.6 roubles were received as receipts into the Consolidated State Budget of the Yaroslavl Region and the appropriate Off-budget Funds.
Since 2002 the Regional Budget has included a special Investment Programme to finance the most important infrastructure and social projects.
According to Expert Rating Agency, as a result of competent making and adjusting the investment legislation the last three years in a row the Yaroslavl Region has been declared first among the 89 Russian Federation Subjects in the "Best Legislature for Investments" Nomination.
As a result of successful investment activities of various locally based companies, over the last five years the amount of investments in fixed capital has increased five times as much totaling 1,2 euro in 2005, thus marking a 39% growth in comparison with the 2004 level. About 40% of all investments in fixed capital were allocated for manufacturing and 42% for transport and communications. About 30% of the investments came from the local companies' own funds.
Among the major motivating factors for Russian and foreign private investors is their confidence in the economic policy of the Regional Government and its ability to settle accounts on its promissory notes. That's why creating an attractive investment image of the Yaroslavl Region remains the main tool of the Regional Government's policy.
According to a survey conducted by Expert Rating Agency-AK&M Consortium, in 2005 the Yaroslavl Region confirmed the top A Credit Rating Class denoting a "High Level of Reliability with Stable Prospects."
The consistent investment policy realized by the Regional Government has favourably influenced the investment climate of the Yaroslavl Region.
According to Expert Rating Agency-AK&M, the Yaroslavl Region is occupying the 6th position in the "Decade of Stable Low Investment Risk" Category.
In terms of potential for investments, the Yaroslavl Region occupies the 37th position belonging to the category of regions with a highly flexible investment climate and there is a good chance for it to move upward on the investment attractiveness rating scale.
Active support of development processes allows the State Budget of the Yaroslavl Region to receive additional tax payments, to preserve the existing jobs and create new ones.
Investment Legislation
The following regional laws are aimed at stimulating investments in the Yaroslavl Region:
"On State Regulation of Investments in the Yaroslavl Region"
This law makes provision for State support of investors within the framework of projects included in the Yaroslavl Region Investment Projects Priority List. State support is provided in the form of:
- Tax exemptions,
- Investment tax credits,
- State and legal guarantees,
- Budget credits,
- Preferential rent rates for the usage of tenements owned by the Yaroslavl Region.
- Subventions and subsidies from the State Budget of the Yaroslavl Region including reimbursement of banking credit interest and financial leasing payments;
Besides, priority projects are provided with methodological, informational and organizational support.
State support is provided until the project's payback but not longer than for five years. In the case of an investment project of particular social importance State support can be prolonged up to seven years.
— "On the Procedure and Conditions of Tax-and-Duty Exemptions"
— "On Property Tax for Organizations"
— "On Transport Tax"
— "On Profit Tax for Organizations"
These laws make provision for property, transport and profit tax exemptions where the Regional Budget is concerned for certain categories of taxpayers including investors.
— "On State and Legal Guarantees of the Yaroslavl Region"
This law makes provision for the Regional Government to administer State and legal guarantees on behalf of the Yaroslavl Region to secure the fulfillment of civil contract liabilities by legal entities including those that appear during the implementation of investment projects included in the Yaroslavl Region Investment Projects Priority List.
— "On the Procedure and Conditions of Allocating Budget Credits from the Regional Budget"
This law makes provision for allocating budget credits from the State budget of the Yaroslavl Region to profit-making and non-profit organizations including those implementing investment projects included in the Yaroslavl Region Investment Projects Priority List.
— "On Stimulating Economic Development in the Yaroslavl Region"
According to this law, companies increasing their profit tax payments to the State Budget of the Yaroslavl Region are granted subventions for internal development.
— "On Town Planning Activities in the Yaroslavl Region"
The main purpose of this law is to provide openness and accessibility of information concerning town planning activities. The law prohibits demanding any documents in excess of the fixed register and determines a deadline for issuing decisions and resolutions at all stages of elaborating town planning documentation. Besides, the law makes provision for managerial responsibility of officials failing to meet the deadline requirements or denying permission without good reason.