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Russian Regions’ Development under Sanctions

XII Regional Investment Congress named Regions Attracting Investors: Best Practices was held in Moscow on December 12, 2014. The event was organized by Expert RA rating agency.  Representatives of relevant federal ministries of the Russian Federation, regional governments and development institutions, Russian and foreign investors, business associations and financial institutions attended the congress.   

The list of key subjects discussed at the congress included the investment development of the Russian regions under unfavorable economic conditions and the best practices for interaction  with investors. The congress attendees mentioned the fact that investment risks tended to grow.  Nevertheless, they also spoke of certain positive aspects of economic sanctions. For instance, sanctions stimulate a number of industries to start manufacturing import substituting products.  Alexey Laptev, First Deputy Governor of Kaluga Region, spoke of Kaluga Region investment policy and principles for interaction with investors at a plenary discussion on regions’ investment development under tough economic conditions and technologies for economically efficient growth.  

It was noted that Kaluga Region maintained stable relations with investors despite political tensions. The favorable conditions created in Kaluga Region for new production facilities’ siting do not directly connected to politics. The authorities try to help investors minimize their costs, provide tax breaks and administrative support. Kaluga Region continuously tries to overcome infrastructural limitations, for instance, through development of multimodal transport and logistics centers (Freight Village Ru), and construction of airports (the first test flight is to take place in Kaluga International Airport on December 19).

Alexey Laptev noted: “We concluded 18 new investment agreements with industrial companies in the first 11 months of 2014. This figure does not include agricultural projects. The amount of investments grew by more than 2 times as compared to 2010”.   

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