Rostov Region

Rostov region is one of the best regions of Russia for efficient investment of capital.

12 reasons to invest in the Rostov region:

  1. One of the best investment legislations in Russia.
  2. Working with investors is a priority for local authorities on all levels.
  3. Rostov region is a “gate” of Russia to the countries of Black sea, Mediterranean sea and Caspian sea basins.
  4. Political stability in the region.
  5. Developed financial, engineering and transportation infrastructure.
  6. State support of investment projects on all levels – from signing protocol of intention to commissioning the project.
  7. Concentrated reserves of highly-educated labor workforce.
  8. Reliable consumer demand.
  9. Investment opportunities in all sectors of economy.
  10. Wide range of minerals and raw materials.
  11. Excess energy resources.
  12. Stable credit rating.

The Don land enjoys favorable investment climate, including:

  • Transparent legislature
  • Simple and transparent tax system
  • Quality anti-monopoly surrounding
  • Fair competition
  • Efficient anti-corruption management
  • Favorable conditions for development of small business
  • Access to global markets

Experts of Forbes, Ministry of regional development of the Russian Federation, a range of Russian and foreign magazines have acknowledged the region as one of the best for business operation.
Large International companies like Coca-Cola and PepsiCo operate in the region, as well as Lafarge – the leading cement producer and producer of glass – Guardian. Almost all leading European retailers are present in the region many of which have been successfully operating for a number of years.
Rostov region is always open for dialogue with Russian and foreign investors and possesses a wide array of investment opportunities starting from agrarian and industrial enterprises, ports and housing complexes to large scale projects, like FIFA World Cup 2018, construction of Rostov subway and international airport Yuzhniy Hub.
The region has formed a register, which includes 58 perspective investment sites;
14 sites will be used for agroindustrial projects and 45 for industrial projects.
The following sectors will be most attractive for investors: agricultural processing, machine building, ferrous and non-ferrous metals industry, food industry, oil and energy complex, construction industry, public and housing utilities, trade and services.
Foreign investments are granted absolute protection on the territory of the region. Foreign investors can invest in any sector of the economy, and engage in all kinds of investment activities for the exception of sectors, activities and territories of the region, where investment is restricted under the legislation of the Russian Federation. Foreign investors consider investing in various sectors of the economy of the region.
All investors of the region receive benefits and preferences, have access to public contracts and procurement and receive maximum support from the Government of the region.

Forms of state support of investment activity:

 Form of state support

Conditions

Benefits for corporate profit and corporate property tax – for corporate property tax in the amount of 1,1 %;-organizations which implement investment projects with investment amount of 300 mln. rub. and more are exempt from the corporate property tax;- the regional part of the corporate profit tax rate is decreased to 13,5%
Subsidies to compensate part of commercial bank interest rates for credits, taken for construction, expansion, reconstruction and technical  renovation of the operating facilities – for ruble credits – in the amount of two thirds of the refinance rate of the Central Bank of Russian Federation (discount rate), valid for the credit occupation period but no more than two thirds of the costs, actually born by the borrower to cover the interest rate;- for foreign currency credits – in the amount of 30 % of the sum charged and paid
Contracts within the framework of public private partnership for participation of each side in the implementation of investment project on the territory of the Rostov region –        Construction of infrastructure objects on the account of the regional budget: water supply and sewage, transportation infrastructure, including roads and bridges;Compensation of 50% of the investor’s expenditures under contracts for connection to electricity supply objects (but no more than 100,0 mln. rub.) and gas supply objects (but no more than 70,0 mln. rub.) (it depends on the amount of capital investment)
Subsidies for organizations which provide services under energy performance contracts to compensate part of expenditures for purchasing materials or equipment to provide services under the contract Subsidies are given in the amount of 30% of the expenditures, born by the recipient for purchasing of materials or (and) equipment to provide services under energy performance contracts but no more than 5 mln. rubles per one subsidy recipient per year
Subsidies for organizations which install energy efficient equipment and (or) apply energy efficient materials for own needs to compensate part of the costs for purchasing energy efficient equipment and (or) apply energy efficient materials Subsidies are given in the amount of 30% of the costs, born by the recipient for purchasing of energy efficient equipment or (and) energy efficient materials for own needs but no more than 5 mln. rubles per one subsidy recipient per year
Subsidies for organizations which implement documented experimental development works with producing samples of energy efficient equipment and (or) energy efficient materials, complying with GOST (Russian National Standard) to compensate part of costs of purchasing materials and (or) equipment directly used for the works Subsidies are given in the amount of 30% of the costs, born by the recipient for purchasing equipment and (or) materials used for documented experimental development works with producing samples of energy efficient equipment and (or) energy efficient materials, complying with GOST (Russian National Standard), but no more than 5 mln. rubles for one recipient per year
Subsidies to compensate part of expenditures for credit interest payment for credits taken by small and medium enterprises for realization of investment projects Subsidies are given to borrowers on ruble and foreign currency credits for realization of investment projects in the amount of 2/3 of the refinance rate (account rate) of the Central Bank of the Russian Federation, established on the day of signing credit agreement but no more than costs actually born by the borrower for the interest payment.The support is rendered to small and medium enterprises – legal entities with average number of employee 50 people or more.At the time of application no less than 20 percent of the credit from the total amount of credit must be paid off and no less than 20 percent from the total amount of credit interest must be paid off.
Subsidies to small and medium enterprises to compensate part of expenditures of lease payments
  1. Subsidy for lease payments.

To compensate part of expenditures of SME under contract of financial lease or its part, but no more than 10 mln. rubles per 1 lessee.

Is provided monthly in the amount of 2/3 of the refinance rate (account rate) of the Central Bank of the Russian Federation, established on the day of latest lease payment multiplied by the rest payment under the contract of financial lease without covering leasing company yield part

Subsidy assistance period – 36 months.

  1. Subsidy for initial payment.

Is provided only once in the amount of 2/3 of the actual costs for initial payment payout under the contract of financial lease excluding VAT, but no more than 500 000 rubles per 1 SME.

More Information can be found at site of the Rostov Region Government.

Contact information:

Ministry of economic development

Bartenyev Vladimir Petrovich
Minister
112 Sotsialisticheskaya Street,
Rostov-on-Don, 344050
Tel.: (863) 240-52-57
Tel./Fax: (863) 240-54-80
E-mail: rra@donpac.ru

Gavrilenko Evgeniya Vyacheslavovna
Deputy Minister
112 Sotsialisticheskaya Street,
Rostov-on-Don, 344050
Tel.: (863) 240-25-29
Tel./Fax: (863) 240-17-01
E-mail: international@aaanet.ru

Department of International Cooperation and External Economic Activities
Zubareva Irina Grigorievna
Head of Department
Tel.: (863) 240-78-31
Tel./Fax: (863) 240-17-01
E-mail: international@aaanet.ru

External Economic Relations Section
Gudenitsa Igor Nikolaevitch
Head of Section
Tel.: (863) 240-27-98
Fax: (863) 240-17-01
E-mail: oves@donland.ru

International Cooperation Section
Zhuravlyov Igor Anatolevich
Head of the Section
Tel.: (863) 240-16-41
Tel./Fax: (863) 240-17-01
E-mail: oms@donland.ru

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