NOVGOROD INVESTMENT PROMOTION AGENCY

Ghermana st. 1A, Novgorod, 173002, Russia

Ph.: 7(81622) 7-99-78 Fax: 7(81622) 7-96-75

E-mail: arpin@telecom.nov.ru

Basic advantages of investment climate:

QUALITY CHARACTERISTICS OF THE REGION

location between Moscow and St. Petersburg (the biggest markets), close to Buylorussia and the Baltic States.;

Novgorod region is linked by motorways and railroads with sea ports in St. Petersburg, Moscow sea port (access to Volga) and airports in this cities.;

favorable ecological situation in the region, absence of the nuclear power stations;

developed transport infrastructure: Novgorod region is crossed by : roadway of federal significance Moscow-St. Petersburg, railways Moscow-St. Petersburg, St. Petersburg-Kiev, Dno-Yaroslavl.;

developed structure of the modern means of communication (region takes the third place in Russia after Moscow and St. Petersburg as for level and volume of the transmission services), Novgorod region is crossed by optic-fiber line Helsinki - Tokyo;

developed infrastructure of business support.

SOCIAL AND POLITICAL SITUATION IN THE REGION

political stability in the region;
absence of the disturbing factors;
cooperation between legislative and executive branches of authority;
developed system of the regional and local governmental bodies.

CONDITIONS FOR THE ENTERPRISE LOCATION

the wide choice of free production areas provided with the necessary fully completed infrastructures (gas, water, electricity, etc.) and fixed assets for the technical provision of the investor;
the market of highly-skilled low-paid manpower from former defense industry enterprises;
good accessibility of the potential sites on motorways with hard cover, railroads and other transport means;
gas and oil main lines.

ECONOMIC POLICY OF THE REGIONAL AUTHORITIES

consistency and succession of economic changes further developing after re-election in December, 1995 of the Governor M. Prusak;
the active use of the rule “about non-worsening of the start conditions for the investors who has been doing his activities within the Novgorod market”;
promotion of perspective projects by the Economic Committee of the Administration, with the purpose to optimize professes of enterprise making (from registration up to production).

PRIVILEGES FOR INVESTORS

active use and the functioning of the regional law “On tax breaks for enterprises and organizations located in the territory of the Novgorod region”;
value added tax compensation in the part included to the regional budget for the organizations with foreign and home investments;
compensation of the motor road users tax in the part included to the Federal Budget for the organizations with foreign and home investments;
setting up of four MFN zones (zones of most favored nation treatment) in the region where all enterprises carrying out production activities are exempt from all local and regional taxes and the income tax in the part included to the Federal Budget is compensated.

GARANTEES FOR INVESTORS

setting up of the Guarantee Fund as stated in Art. 24 of the Law of the Regional Budget;
calculations of the capital full pay back period is done with the help of the technique of the world-known firm “Arthur Andersen”. This technique was approved by the decree of the regional Duma;
existence of the second land market, (100% foreign capital companies have land plots as a property).

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For more information e-mail us at:

arpin@telecom.nov.ru