Russian Krasnodar Region invites Finland to cooperate for investment projects

09 May 2008
Russian Krasnodar Region invites Finland to cooperate for investment projects

At the World Economic Forum in Davos, Krasnodar Region was named the most attractive region in Russia to investors. To boost investments, the Region Administration pays special attention to the development of international and foreign economic cooperation of the region with European countries.

One of the most promising lines of interrelationship is the cooperation with Finland, especially within the framework of investment projects in free economic zones of the region and in preparation for the 2014 Winter Olympic Games in Sochi, according to Alexander Tkachev, Governor of Krasnodar Region.

With the object of further development of trade and economic cooperation between Krasnodar Region and Finland, Krasnodar Region Administration will hold presentation in Helsinki on 21 May 2008.

The Presentation will show high investment potential and prospects for the future in the following fields: industry, fuel and energy complex, construction and architecture, housing and utilities infrastructure.

The event will be arranged in cooperation with the Ministry for Foreign Affairs of Russia, Chamber of Commerce and Industry of Russian Federation and the Trade Representation of Russian Federation in Finland.

Big investment opportunities

The rate of growth in investment of fixed capital through the Krasnodar Region for 2007 was 126%, and the amount invested totaled EUR 6 billion. About EUR 480 million or 13% of this amount came from foreign investors.

Over the last six years approximately EUR 1.9 billion of foreign investment has been made in the Region. Krasnodar Region consistently holds first place in the Southern Federal District for volume of investment.

The external trade turnover of Krasnodar Region, according to Customs statistics, grew by EUR 1.3 billion in 2007 compared to 2006, and totaled EUR 4.1 billion. Non-CIS countries dominated external trade with a share of more than 80% of total turnover.

At the international exhibitions and forums of 2007, the Region concluded 280 investment agreements to a total value of more than EUR 19 billion. These agreements are being realized. In 2007, 1795 investment projects in the Region were carried out, 341 more projects than in 2006.

According to the Krasnodar Region Administration, the investment legislation of region, one of the most progressive in Russia, reduces taxes on profit to 13.5%, and gives exemption from paying transport tax for five years. In total the concessions provided can reduce investors’ expenditure by 25 to 30%.

The investment potential of Krasnodar Region is highly rated by the major rating agencies. In September 2007 the international rating agency Standard & Poors raised the credit rating of the Region, changing it from Stable to Positive (BB-/Positive).

In 2007 the Department of External Economic Activity arranged visits for 26 official delegations and missions from 15 countries.

Sochi - a model for entire Russia

An example of the Region's major efforts is the ambitious plan for Winter Olympics 2014 of the City of Sochi. The plan includes strong efforts to save the environment in terms of sustainable development.

For instance, the Sochi aims to be carbon neutral and zero-waste city. As a result, the city sets a new standard in environmental awareness and responsibility and provides true model for sustainable development for the entire Russia. The financial prerequisities for the successful implementation of the plan are promising.

The Russian government has placed Sochi 2014 at the heart of the existing Federal Target Program (FTP) to revitalize Sochi and the surrounding region.

The international investment forum Sochi 2007 was attended by more than 10 000 people from 40 countries. Documents important to the development of bilateral cooperation and 169 investment agreements with a value of EUR 15 billion were signed during the Forum.

The plan, including the construction of 11 brand-new venues, for instance, Bolshoi Ice Palace and the Sochi Olympic Stadium, will be delivered on time with all budgets and deadlines guaranteed by Russian law.

Investors have the opportunity to take part in building modern tourist and sports complexes and new fashionable hotels.

Creating modern tourism complexes

There has never previously been a city of fortune similar to Las Vegas in Russia. The first such city, Azov City, is being built in the south. It will be ready for those who enjoy games of chance in 2009, when casinos and gaming clubs throughout the rest of Russia will be closed. Private investment is sought for construction of casinos, hotels, restaurants and golf clubs.

In addition, the beaches of the Azov and Black Sea coast stretch 1200 kilometers and at the present time only one quarter of this is developed. In the next few years the Region can accept EUR 4.5 billion of private investment in the special tourism-recreation economic zone.

To serve business and people an international airport, Gelendzhik, is being built in Krasnodar Region, with funds from the Federal budget and from private capital. Its 3100 meter runway will make it possible to accommodate the largest airliners in the world - the Airbus and large Boeings.

Source and more information

Presentation of Krasnodar region

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