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 Khabarovsk Krai is one of the most
attractive regions in Russia for investments, it has a favorable geographic
position, a unique natural environment, rich natural resources, industrial and
scientific potential, a developed transportation system, and qualified labor
force. The public, local government, and business community of the Krai are
very interested in the growth and development of international economic
cooperation.
Khabarovsk Krai is playing a very important role in the integration
of Russia with the countries of Pacific Rim region due to its close position to
these countries. The other important factors are: ice free sea ports, which
provide a significant volume of the foreign economic operations, and
Transsibirskaya and Baikalo-Amurskaya rail roads which make possible to provide
international transportation. More then 60 countries of the world have economic
relations with Khaharovsk Krai. |
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The Main
Industrial Sectors are (in percentage from total Krai Industrial Production
Volume): |
Forestry and Timber Processing Industry
The
average annual volume of logging for the last decade was 7 million cubic
meters, There are more than 350 enterprises working in this industry, including
the largest logging companies such as JS "Dallesprom" and JS "Forest-Starma",
and the largest wood processing companies such as JV "Vanino-Tairiku", and JS
"Amursk timber processing complex" |
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INVESTING IN KHABAROVSK KRAI
Investment Policy of the Region
It
is the Krai's policy to promote both foreign and domestic investment within the
Krai. Below are just a few of the recent initiatives relating to invigorate
investments:
- The Foreign
Investment Promotion Agency has been established in the Krai (the first one in
the Russian Far East), to promote the Krai and assist existing and new
investors coming to the Krai.
- The Consulting
Council on Foreign Investments (jointly controlled by the Governor of the Krai
and a rotating foreign investor), and the Investment Council, are two
organizations that are trying to streamline and simplify the investment process
in the Krai.
- The Khabarovsk
Krai is one of the few regions in the Russian Federation where the
Russian-American program "Regional Initiative" is operating to improve the
business conditions in the Krai.
- International
Investment Conferences are conducted on regular basis; foreign in vestment
missions are organized and Krai representatives participate in foreign
expositions of investment projects in Russia and abroad.
- In June of 2000
the Khabarovsk Krai Legislative Duma approved the new Law on Investment in
Khabarovsk Krai. It provides additional protection to all investors within the
Krai. The Law also provides a series of tax privileges to the investors, such
as:
- From the
Territory share of the profit tax are exempted:
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subjects of investment activity which are realizing investment
projects on newly creation, reconstruction or modernization of existed
manufacturing plants and realizing a production activity on above plants, on
the share of the profit obtained from investment project realization; financial
leasing organizations of the Krai, on the profit obtained from the financial
leasing agreement realization, on its payback period; financial institutions in
a part of the profit, directed on investment projects realization on
entrepreneurs plants creation.
- From the
Territory share of the enterprise property tax are exempted:
- From the
Territory share of the land tax are exempted:
- land areas,
which are used for location of newly created industrial units or real estate
units being in the process of reconstruction.
- The Krai
Investment Program and "The Main Directions of Krai Administration Foreign
Economic Activity" have been adopted and are in the process of being
implemented. This is the basic investment strategy for the Krai.
- Preferential
customs duties and Value Added tax exemptions are provided for imported
equipment of companies with foreign investment, when it is a part of their
equity.
- Since 1994
several local tax exemptions have been granted by Khabarovsk Krai (The Krai
exemption on profit and property taxes is provided for newly established
enterprises with foreign investments share more than 30%, if the sales proceeds
from goods or services production exceeds 70% of total sales proceeds) in
addition to exemptions under Russian Federation laws to stimulate foreign
investments.
- The local
administration is developed a system of guaranties for investments and loans
for the priority sectors of the Krai, and has created a Mortgage Fund that is
collateralized by certain objects of the Krai property. This fund and
guarantees can be used for certain investments related to priority sectors
designated by the Krai Administration.
Business infrastructure
- There are
Consulates Generals of China and Japan, and the Representative office of the
Ministry of Foreign Affair of the Russian Federation, located in
Khabarovsk.
- Internationally
known companies have opened their representative offices in the Khabarovsk
Krai, such as: Mitsui, Sumitomo, Marubeni, Nissho lwai, Nichimen, Michinoku
(Japan); Hyundai, LG (Korea); Caterpillar, DHL, Global One (USA);
- There are also
a number of foreign joint ventures and wholly owned foreign companies operating
in the Krai.
Several "Investment Funds' operate in the Krai: The US-Russian
Investment Fund (TUSRIF), the Investment Fund of the Far East and Eastern
Siberia (DAIWA), the Russian Fund of Small Business Support (European Bank for
Reconstruction and Development), the Program of Micro Loans for Small
Businesses under Counterpart International, known as "Working
Capital-Russia".
- There are
several programs providing consulting support to Russian businesses:
Russian-American Business Educational Center, the Japanese Center,
Entrepreneurial Business Service (ACDI/VOCA-WINROCK International), EcoLinks,
and others;
- The Krai
banking system provides the basic financial mechanisms for the investment
process. There are regional banks (Dalcom Bank, Regiobank) and branches of
Moscow banks (Vneshtorgbank, etc.) working in the Krai. The majority of banks
have correspondent relations with the world banks and work through the
international banking communication system "SWIFT".
- The majority of
foreign investments have been received from the USA (33%), Switzerland (15%),
Japan
- As of 1 January
2000, 731 enterprises with foreign investments were registered in the Krai,
including 419 joint ventures, 201 foreign enterprises, 111 branch
offices.
- The main
sectors for foreign investments are: timber industry, services in transport and
communication sphere, natural resources, ferrous and non ferrous metallurgy,
trade, and food industry.
- Some joint
ventures have become the leading exporters in the Krai. Their share in the
total amount of export is 8%. This joint ventures provide 3.2% of the Krai
total amount of import. In 1999 the enterprises with foreign investments
produced the goods and services for more than $US 50 million.
About
Khabarovsk Krai | Russian Activities
Business Opportunities | Donors & Sponsors
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