INVESTMENT LEGISLATION  IN THE REGION

Investment laws in the region are among the most progressive in the country. The legal regulations protect and guarantee the rights of investors and the regional laws ensure government support for investors. The region has passed a law On Government Stimulation of Investment Activities in the Krasnodar Territory.

The regional budget earmarks large amounts of money for that purpose every year.

The following are the main forms of government support for investors envisaged under the regional laws: 

• regional tax benefits. Today this means that investors and leasing organisations are exempt from paying property tax for up to 3 years; profit tax is 4 percentage points less and residents of special economic zones enjoy a transport tax holiday of up to 5 years;  
• the Krasnodar Territory’s government guarantees investment projects awarded by tender;  
• subsidies (compensation) out of the regional budget for part of the interest on loans from lending institutions and corporate bond coupons; 
• easy terms for use of land during design and exploration work and construction (a 0.5% reduction coefficient is applied to land rent for investors). 

Government support is available to investors who invest their own and borrowed money in projects that have gained the approval of the Territory’s Administration. There is no discrimination here between domestic and foreign investors in terms of government support.

The region has a simplified procedure for both Russian and foreign investors starting up a business.

The Krasnodar Territory was one of the first in Russia to introduce a “one-stop” system of investment project support. The regional and municipal officials take investment projects through all the government agencies during both the construction and the operation periods. Investors receive all the approval documents required within 1-3 months. 

Since 2007, the region has had a new investment management system: it has a single regional investment network embracing its districts and cities. Reform and development committees provide project support in every municipality.