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Investment activity
INVESTMENT ACTIVITY: making investments and carrying on practical actions for the purpose of profit-making and (or) achieving another beneficial result.
INVESTMENT: material, non-material and other assets (monetary funds, securities, capital assets, technological projects, licenses for certain types of activities, other property, including property rights and other assessable rights), invested into entrepreneurial and (or) other projects for the purpose of profit-making and (or) achieving another beneficial result.
DIRECT INVESTMENTS: capital investments made directly into a certain kind of production including acquisition, creating and expansion of assets at enterprises.
PORTFOLIO INVESTMENTS: investments into securities.
REINVESTMENTS: making capital investments into entrepreneurial projects at the cost of income or profit gained from investments.
INVESTMENT PROJECT: the expediency of economic profitability, substantiation of the volume of work and time schedule for capital investments, including the required designing estimates worked out in compliance with the Russian Federation legislation and properly adopted standards (norms and regulations), also the description of practical actions for investments (business plan).
ESTIMATED PAYOFF PERIOD OF INVESTMENTS: the period estimated on the grounds of the available business-plan from the starting day of financing the investment expenses and up to the day when the difference between the accumulated sum of the net profit with the amortization deductions and the sum of the investment expenses turns positive.
THE REAL TIME PERIOD OF THE INVESTMENTS PAYOFF: the period of the time estimated on the grounds of accountant reports from the starting day of financing the investment expenses and up to the day when the difference between the actual accumulated sum of the net profit minus amortization deductions and the sum of the actual investment expenses turns positive. The estimated investment payoff period and the real-time investment payoff period are defined to compliance with “Methods of estimation the payoff period for the purpose of privileged taxation in the Leningrad Region” and shall be confirmed by a consulting company appointed by the investor from among those authorized for that by Government of the Leningrad Region.
CAPITAL INVESTMENTS: investments into the fixed capital (capital assets), including costs for the new construction, expansion, reconstruction and technical reequipment of the operating enterprises, purchase of machinery, equipment, tools, accessories, project and investigation works and other costs and expenditures.
MOST FAVOURABLE TREATMENT: the aggregate measures of state support and protection of investor’s rights directed at improvement of the investment activity on the territory of the Leningrad Region.
OBJECTS OF FEDERAL AND INTERREGIONAL IMPORTANCE: enterprises, sells over 50% of theirs production outside the Leningrad Region.
OBJECTS OF TERRITORIAL IMPORTANCE: enterprises, sells over 50% of theirs production (works, services) inside the Leningrad Region.
OBJECTS OF MUNICIPAL IMPORTANCE: enterprises, sells over 50% of theirs production (works, services) in a limits of the district, town, settlement on the territory of the municipal units.
Subjects of investment activity
SUBJECTS OF INVESTMENT ACTIVITY: investors, customers, contractors, users of the capital investment projects who carry on their investment activities in form of capital investments.
INVESTORS: physical and legal entities, associations of corporate entities set together as a result of their involvement into agreements for collaboration and cooperation and who do not have a status of a legal entity, government agencies, local executive bodies, foreign entrepreneurs.
CUSTOMERS: Authorized by the investors physical and legal entities who carry on the investment projects and who have a license to act as customers. Investor can act as customers.
CONTRACTORS: physical and legal entities who perform work under the services contract and (or) the state contract entered into with the customers in compliance with the Russian Federation Civil Code. The Contractors shall have all required licenses subject to the provisions of the federal law.
GENERAL CONTRACTOR: an organization or a firm which under a capital construction contract carry out their incurred obligations and put up buildings projects, including assembly and adjustment of technological and other equipment, and other works and services connected with them. General Contractor shall have all the required licenses subject to the provisions of the federal law. At consent from the Customer General Contractor can engage Russian and foreign firms with accreditation in the Russian federation and who have the required licenses (subcontractors) and commission them with realization of all or any part of the construction and assemble work. However, General Contractor shall be in all cases responsible for the work done by his subcontractors. It is common practice for General Contractors to participate alongside with General Supplier in handling over the complex of equipment and the whole project to the Customer.
GENERAL DESIGNER: project and design agency contracting with the Customer for the overall project to be designed. General Designer shall have all the required licenses subject to the provisions of the federal law. General Designer can subcontract other specialized project and investigation agencies for part or certain types of work to be in the course of construction General Designer shall exercise designer supervision and has the right to introduce current amendments into the project design in connection with the changing terms and conditions of the construction and (or) errors revealed in the course of construction work. General Designer alongside with General Contractor shall participate in handing over the ready project to the Customer.
AUTHORISED COMPANIES: legal entities properly registered as is provided by the Russian Federation legiclation who have successfully passed the contest in pursuance with the ruling normative and legal acts of the Leningrad Region.
Construction
PLOT OF LAND: part of the land surface with fixed area, boarders, location (address), with its legal status and other characteristics, reflected in the right assigning instruments for the land, in the state land in city planning cadaster and in the city planning passport.
NEW CONSTRUCTION: construction of newly set up enterprises, of buildings, premises, also of affiliations and new production sites which will operate with their own independent balance after they are made operational. In case the construction of an enterprise, building, premises is carried stage by stage the first and the subsequent stages of the construction until the planned capacities are made operational shall refer to the new construction.
EXPANSION of an existing enterprise: a complex of construction works and technical and organization arrangements connected with construction of additional production sites at the operating enterprises and also with construction of new and enlargement of some existing workshops and the main, subsidiary and servicing grounds on the territory of the operating enterprises of their adjoining grounds for the purpose of creating additional and new capacities. Construction of affiliations and production sites belonging to them which will not have any independent balance of their own after they are made operational, shall also refer to the expansion of the existing enterprises.
RECONSTRUCTION of an enterprise: a complex of construction works and technical and organizational agreements connected with modification of the existing workshops and the main, subsidiary and servicing grounds without expanding the existing main buildings and premises and aimed at the increase of the production capacities, quality improvement and change of the assortment of products, all this exercised normally without the increase in the number of workers.
TECHNICAL REEQUIPMENT: a complex of construction works and technical and organizational arrangements connected with updating and replacement of outdated equipment, this usually exercised without the expansion of production capacities, without the change of the products assortment and the volume of output.
COMPLETED CONSTRUCTION PROJECT: a complex of buildings and premises or a separate part of the project which can be operated and maintained independently where all the construction and assembly works stipulated by the construction contract have been done and accepted in accordance with the requirements of the regulatory instruments.
ACCEPTANCE OF A COMPLETED CONSTRUCTION PROJECT: a legal action as a result of which the compliance of the project being accepted with the requirements for it fixed in the technical documentation is confirmed. Following that the Customer comes into possession of the construction project.
COMMISSIONING: a legal action as a result of which the readiness of the construction project completed and accepted by the acceptance commission for its purposeful utilization and inclusion into the local territory is confirmed. |
