Investment opportunities of the Udmurt Republic
The Udmurt Republic is one of the fastest growing regions of the Russian Federation with strong industrial traditions, well-developed transport infrastructure, and profitable geographic location. It is famous for its talented designers, engineers, and scientists. Investments to the Udmurt Republic are investments to a region with political stability, high scientific and creative potential, favourable investment conditions for Russian and foreign companies.
Investment appeal of the Udmurt Republic is determined by the following factors:
1. Political stability in the region.
2. Favourable location close to the main industrial centers of the Ural region.
3. Unique base of natural resources, rich deposits of oil, forest resources, and well-developed agro-industrial sector.
4. Modern transport infrastructure, access to major air, railway, motor and river routes.
5. Strong manufacturing, metallurgy and machine-building industries.
6. Developed financial infrastructure, good credit and leasing opportunities.
7. Economic benefits to investors and assistance of regional, district and municipal governments.
8. High engineering and research potential of the republic; the country’s leading technical universities, research and development centers are situated in the region.
9. Sustainable economic growth over the last years.
10. Decent standards of living and strong demand for goods and services supported by the consumer’s capability to pay.
The Basic forms of the state support of enterprises of the Republic and potential investors is enshrined in the Law of the Udmurt Republic dated 22.06.2006 No. 26-RZ "On state support of investment activity in the Udmurt Republic":
- exemption on payment of tax on profit of organizations in part of the amounts of tax payable to the budget of the Udmurt Republic, at the rate of 17 to 13.5%;
- exemption from tax on property of organizations;
- subsidizing of part of expenses for payment of percent on credits and the part of expenses on lease payments received for implementation of investment projects;
- to provide investors with deferral, payment by installments, tax credit, investment tax credit on payment of taxes and other obligatory payments to be credited to the budget of the Udmurt Republic;
- the provision of budgetary appropriations of investment Fund of the Udmurt Republic for implementation of investment projects on public-private partnerships;
- providing investors with state guarantees;
- the inclusion of the investment project in the Register of investment projects of the Udmurt Republic, in The strategy for socio-economic development of the Udmurt Republic until 2025, in the socio-economic development of Privolzhsky Federal district till 2020;
- organization of participation of investment projects in international, national and regional forums, conferences and exhibitions (rent of exhibition space and registration fee);
- the inclusion of investment projects in the catalogue of investment projects of the Udmurt Republic and other presentation materials of the Republic;
- the granting of investor status "Best investor of the year of the Udmurt Republic" and (or) "Best exporter of the Udmurt Republic";
- informational and organizational support, including methodical and organizational assistance in preparation of applications for co-financing from the Federal development institutions;
- consulting, informational and organizational support of investment projects by supporting petitions and applications of project proponents to the bodies of state power and local self-government bodies, credit institutions and other organizations in the Udmurt Republic for assistance in the implementation of investment projects, conducting public examination of investment projects, organization of seminars, conferences on problems of investment activity, forums, fairs and exhibitions of investment projects, placement of information about investment projects in the catalogues of investment projects, the media, the Investment portal of the Udmurt Republic.
In accordance with the Laws of the Udmurt Republic "tax benefits related to investing" and "On the property tax of organizations in the Udmurt Republic", and also with the resolution of the Government of the Udmurt Republic "About the statement of Regulations about competition of investment projects of the organisations entitled to receive tax exemptions on profits and property tax" investors on a competitive basis, provides tax benefits on profits ranging from 1 to 4.5 percent and full exemption from property tax.
For all the time of rendering of the state support of investment activity in the Udmurt Republic, the winners were recognized 134 investment project 87 organizations of the Republic.
Organizations-winners of tenders for implementation of investment projects attracted investments of about 22 billion rubles, and provided more than 920 million rubles in tax benefits. Tax revenues amounted to more than 4.6 billion rubles. Additionally created during this period, about 4 thousand new jobs.
The Competition for grants is conducted in accordance with the Regulation on the procedure of granting economic entities of the Udmurt Republic using the funds of the budget of the Udmurt Republic for implementation of investment projects, subsidies for compensation of interest rates on loans and part of the leasing costs (decision of the Government of the Udmurt Republic dated 2 may 2012 No. 183).
The main purpose of ANO "Agency of investment development of the Udmurt Republic" - attracting investment in the Udmurt Republic, the elimination of administrative barriers, formation and promotion of positive investment image of the Udmurt Republic. Protocol of the Supervisory Board of ANO "Agency of investment development of the Udmurt Republic" on January 30, 2015 ANO "Agency of investment development of the Udmurt Republic" has been renamed to ANO "Center of investment development of the Udmurt Republic". One of the new offices created under the reorganization of the structure of the Government of Udmurtia in 2014 - the Agency for investment development of the Udmurt Republic. The main tasks of the Agency of investment development of the Udmurt Republic include provision of services in the sphere of investment activities aimed at:
1. Improvement of mechanisms of implementation of state investment policy on the territory of the Udmurt Republic;
2. The organization of interaction of Executive authorities of the Udmurt Republic for implementation and support of investment projects on the territory of the Udmurt Republic;
3. Ensuring effective relations between the bodies of state power of the Udmurt Republic and of entities of entrepreneurial activity on the territory of the Udmurt Republic;
4. The assistance to Russian and foreign companies in the implementation of investment projects on the territory of the Udmurt Republic;
5. Initiation, search, selection and promotion of investment projects, assistance in organization of financing of investment and infrastructure projects and activities;
6. The development of public-private partnership on the territory of the Udmurt Republic;
7. Promoting interregional and international foreign economic relations of the Udmurt Republic in terms of attracting investment.