Efficient measures of support

1. Support of projects on the “one-stop-shop” principle

Economic Development Agency of Leningrad Region provides free support for investment projects in the territory of Leningrad region on the “one-stop-shop” principle, which allows simplifying work on implementation of investment projects, reducing administrative barriers while preparing documents, accelerating the process of obtaining information. The main task of the Agency is to provide comfortable interaction between investors and representatives of public authorities.

2. Public-private partnership

Public-private partnership (PPP) is one of the most important mechanisms for development of public infrastructure based on long-term cooperation between a state and business during which a private party (business) participates not only in creation (design, financing, construction/reconstruction) of an infrastructure facility, but also in its further operation and/or maintenance for the benefit of a public party.

The PPP legislation of the Russian Federation consists of:

  • Federal law of 13.07.2015 No. 224-FZ On Public-Private Partnership, Municipal-Private Partnership in the Russian Federation and Amending Certain Legal Acts of the Russian Federation;
  • Federal law of 21.07.2005 No. 115-FZ On Concession Agreements.

Committee for Economic Development and Investment Activity of Leningrad Region carries out functions concerning participation of Leningrad region in public-private partnership and concession agreements. 

In accordance with the regional law of Leningrad region of 25.11.2003 No. 98-oz On Property Tax, organizations which conclude concession agreements with Leningrad region do not pay property tax on real estate under the concession agreement.

According to the PPP rating of Russian regions prepared by PPP Development Centre together with the Chamber of Commerce and Industry of the Russian Federation and the Agency for Strategic Initiatives, Leningrad region occupies the 16th place.

3. Investment legislation 

Effective measures of government support of investment projects in Leningrad region are based on the advanced system of investment legislation of the region. Investment legislation of Leningrad region is aimed at establishing favourable conditions for attraction of investments and support for investment projects implementation in the region.

4. Tax benefits

Tax benefits in Leningrad region are granted in accordance with the law of 29.12.2012 No. 113-oz On Government Support for Organizations Undertaking Investment Activity in Leningrad Region and Amending Certain Legal Acts of Leningrad Region.

To receive tax benefits an investment project has to meet several conditions. “Investment project” is defined by legislators as placement of new and/or expansion of already existing production capacities in Leningrad region.

Conditions for obtaining tax benefits in Leningrad region:

  • registration of a legal entity in Leningrad region
  • investing within less than three years
  • the registered organization should pay corporate income tax and corporate property tax which are transferred to the regional budget of Leningrad region
  • work in the activities approved by the law No. 113-oz
  • conclusion of the agreement with the regional Government on the regime of government support of investment activity

Types of tax benefits

Volume of investmentPeriod of granting benefits
From 50 to 500 million rubles inclusive*4 years
From 300 to 500 million rubles inclusive4 years
From 500 million to 3 billion rubles inclusive5 years
Over 3 billion rubles** 6 years
Over 3 billion rubles*** 8 years
Over 5 billion rubles****3 years

* Only for Lodeynopolsky, Podporozhsky and Boksitogorsky municipal districts
** Except producers of automobiles, machinery and equipment
*** For producers of automobiles, machinery and equipment (OKVED code (Russian National Classifier of Economic Activities) 29.1, 28)

****For OKVED code 19.2 to organizations included in consolidates group of taxpayers

Benefits Investors Eng 2017

5. Subsidies

The Government of Leningrad region grants the following subsidies:

  • subsidies to non-profit organizations which are not government (municipal) institutions on implementation of activities aimed at training of personnel for the economy of Leningrad region  
  • subsidies to non-profit ogranizations in the sphere of industry support infrastructure on implementation of activities aimed at development of cluster initiatives and export 
  • subsidy from the regional budget of Leningrad region in the form of asset contribution of Leningrad region to the non-profit organization Fund for Support of Entrepreneurship and Industry of Leningrad Region, Microcredit Organization

6. Support for trading activity in Leningrad region 

Legal basis for support:

  • regional law of Leningrad region of 08.04.2002 No. 10-oz  On Measures of Government Support for Trading Activity in the Territory of Leningrad Region;
  • order of the Government of Leningrad region of 05.09.2002 No.158 On Approval of the List of Several Types of Goods Sold in Accordance with Regional Law On Measures of Government Support for Trading Activity in the Territory of Leningrad Region;
  • by-laws defining the order of granting subsidies to organizations engaged in trading activity (developed annually).

Traders receive:

  • exemption of corporate income tax (13.5% is included in the budget of Leningrad region);
  • subsidies from the regional budget of Leningrad region (granted every quarter).

Conditions for granting support:

  • registration in the territory of Leningrad region;
  • average monthly revenue over the current year exceeds 100 million rubles;
  • disposed goods are included in the list affirmed by the Order.

Advantages of undertaking trading activity in Leningrad region:
1. There are no similar support measures for trading activity in any subject of the Russian Federation.
2. Favourable investment climate of Leningrad region, its geographic location and foreign economic relations allow developing trading activities.
3. Consulting and informational support for organizations prior to receiving exemptions and within contract duration.