Main page > Investment opportunities and economic information > Investment Investment Policy of the Leningrad Region
 Many factors have promoted the development of investment in the Leningrad Region. The region’s unique geopolitical location, wealth of natural resources, industrial, scientific and technological potential and higher education levels are combined with local legislation favorable to investors and aimed at creating transparency and the legal groundwork for successful business dealing.
Regional laws adopted from 1997-1999 have established a series of measures for regional support and protection of investors. These laws regulate: investment activity, issues of preferential taxation of enterprises and the organizations located on the territory of the Leningrad Region, as well as tax and investment tax credits. Relations between authorities and investors regarding privileges is governed by one of the most comprehensive law in the Russian Federation, and has created a real competitive advantage for the Leningrad Region.
In recent years the amount of direct investments made in the region is between1-1.5 billion dollars per year, giving the Leningrad Region one of the levels of investment per capita in the Russian Federation. Domestic capital accounts for 60% of the overall investment totals.
 Large foreign firms quickly recognized the favorable investment climate of the Leningrad Region. Phillip Morris International Investment Corporation was the first major multinational to sign a contract on the creation of an enterprise on the territory of the region. In September, 1999, the tobacco fiber processing factory Kres-Neva Ltd. was opened. After the company signed a contract with the Regional Government and the Administration of Lomonosovsky District, the cigarette-making factory (Joint-Stock Company "Phillip Morris Izhora") was launched in January, 2000.
Kraft Foods company - the largest grocery holding in the USA and a subsidiary of Phillip Morris - has constructed an instant coffee packing factory in the space of only five and a half months. Operations at the plant were launched on October 6, 2000.
In Vsevolozhsk district a tea-weighing enterprise of the "Nevskije porogi" Ltd was launched, at which the most well-known market brands of the region - "Princess Candy" and "Princess Gita" are packed. As a result, at present the Leningrad Region produces more than 50 percent of the tea sold on the local market.
 The Henkel-Era corporation in Tosno district, a wholly-owned subsidiary of the German firm Henkel, is the largest manufacturer of synthetic washing detergents and household glues.
The region has benefited from large-scale investments in transport mechanical engineering. Since the summer of 1998, the Caterpillar corporation has run a factory in Tosno, manufacturing construction material for road-building and digging equipment and assembling of building machines. "Caterpillar Tosno" Ltd. Was created on the basis of foreign direct investment and to this day is 100% financed by foreign investors.
 On March 11, 1999 the board of directors of the Ford Motor Company took a decision to construct an assembly plant on the base of the Russky Diesel factory in Vsevolozhsk. In October, 2001, the assembly and testing of Ford Focus cars was launched.
This is but a small number of the many examples of successful cooperation between the Leningrad Region and leading foreign investors and firms. Twice, in 2001 and 2003, the Leningrad Region was awarded the Golden Ruble in the all-Russia competition on improvement of the national economy in the “Best Subject of the Russian Federation” category. Quite naturally, the region enjoys one of the highest levels of international investment among Russian regions.
At the end of 2004, over 140 large and medium sized enterprises were financed in part by foreign capital. |
