Only the Best for Business People
“What is being done by the Ulyanovsk authorities to attract investments to the city?”
“Our top priority is to create a businesslike and comfortable atmosphere for investors. Our strategic approach is best expressed as follows: ‘For each investor the city of Ulyanovsk must be an understandable and open territory’. Only in these circumstances will business people with extensive practical experience and the necessary financial resources come to the city and invest their money in those programmes and that business which will have a noticeable effect on the conditions of living in comfort in our city”.
“Could you be a bit more specific? What exactly are you and your colleagues doing?”
“We are providing practical assistance in implementing investment projects. And this is at all levels. For example, the Region’s Government now includes the Ministry of Strategic Development and Innovations, specifically to coordinate, develop, work out and implement investment policy in the region, and to carry out investment projects and projects involving state and private partnership. There is a public body responsible to the Governor of the Region called ‘The Investment Council’, the functions of which include developing and facilitating investment activities. The Ulyanovsk Region Development Corporation has been set up to provide a ‘one-window’ opportunity for investors with the cooperation of the executive authorities. The Department of Investments, Innovations and Private-Municipal Partnership under the mayor’s administration deals with such matters at the city level.
For each investor the city of Ulyanovsk must be an understandable and open territory.
Any investor can apply to any of the above organisations, where he will find a response to his appeal and all-round support and cooperation in implementing investment projects.
The city also has a functioning system of day-to-day monitoring of the implementation of investment projects, based on putting mentors in position for each such project: from among members of the government of the Ulyanovsk Region and deputy mayors of the city for major projects; and specialists from the Department of Investments, Innovations and Private-Municipal Partnership under the mayor’s administration for all the investment projects included in the municipal register”.
You’ve Invested Money? We’ll Reduce Your Taxes!
“What kind of assistance and support from the authorities can investors count on?”
“On virtually any kind. This includes assistance in selecting production premises and plots of land, and the elimination of those administrative barriers (which we hope will not arise) to impede the implementation of an investment project, and the solution of problems of any kind, and the provision of assistance in information, methods and consultations. And, of course, measures of state support provided under existing law”.
“Are there any local laws applying to this?”
«Certainly. Law № 19-30 ‘On the Development of Investment Activities on the Territory of the Ulyanovsk Region’ came into force on the 15th of March 2005. And Statute № 1201 ‘On Support for Investment Activities on the Territory of the City of Ulyanovsk’, dated 3rd of March 2010 and approved by the Mayor’s resolution, operates in the city of Ulyanovsk itself”.
Grant James Harris, CEO of “SABMiller RUS” LLC:“Aiming to expand our activities in the Russian market, we greatly appreciated the conditions being created by the Government of the Ulyanovsk Region in the field of economic and social development, aimed to attract investments to the region”.
“And what benefits do these documents offer to investors?”
“First of all, tax benefits. For example, reduction of the rate of profits tax by 4.5% during the first eight years of activity, and relief from property tax and from land and transport taxes for the same eight-year period.And also, subsidies (reimbursement of costs from the Ulyanovsk Region’s budget) for profits tax (in particular, the 13.5% due to be paid into the Region’s budget, allowing for existing benefits), and personal income tax (the 6.5% due to be paid into the Region’s budget). Thus, in the first eight years of the implementation of a project, an investor, in effect, pays no taxes to the Region’s budget.”
“That’s great! Particularly for those in big business. But what are the prospects in your Region for investors representing small and medium businesses?”
“We treat such people with no less deference, regardless of whether we are talking about an RF citizen or an investor who has come to us from abroad. The above tax benefits apply to them too. And in addition, there are targeted programmes for the development of small and medium businesses; and we provide financial support in the form of subsidies for some of the costs of such businesses. For example, costs connected with payment for certification services, with participation in exhibitions and trade fairs, with repaying interest on credits taken out to pay for services in connecting up public utilities, or for the development of a business, or for starting up one’s own business.
We also provide property support, support in the field of training, retraining and qualification-raising of personnel, and informational support for small and medium businesses.With the aim of developing the support structure for medium and small businesses an independent non-commercial organization has been created in the city of Ulyanovsk: ‘the Center for the Development of Business’. The Center provides a wide range of information, consultation and education services for small and medium businesses”.
Willing to Work with Everybody
“Which foreign investors have you already attracted to Ulyanovsk?”
“There are very many examples! The favourable investment climate in Ulyanovsk has been recognised by such major foreign investors as “SABMiller RUS” LLC, “Metro Cash and Carry” LLC, the “Fresenius Medical Care” company and “BAU Motor Corporation” LLC. The construction of the “METRO” shopping center was carried out in record time – in only six months! Investments in the project totalled 575 million rubles (20 million USD). Two hundred and fifty new jobs were created.
In the first eight years of the implementation of a project, an investor, in effect, pays no taxes to the Region’s budget.
Construction of the “Hilton” Hotel, with planned investment of two billion rubles (70 million USD), creating at least 155 new jobs, was started in 2011. It is planned to open the hotel in 2012. The concept of the project is to create an international-class hotel complex with a shopping and amusement center – the leading one in the region.
The first two McDonald’s fast food restaurants opened last year. When they opened, the total sum of investments was 200 million rubles (7 million USD). This created 260 new jobs…”
“Serious investors, large sums of money, gigantic plans… But what about small and medium businesses from abroad?”
“We are sincerely glad to welcome and are willing to work with any investors wishing to come to Ulyanovsk, to develop their business, to help the development of our city as a whole, especially in the social and economic fields, to earn profits here, assisting in building a better Ulyanovsk, developing industry and tourism and improving the quality of life in our city”.