New tax remissions have been introduced in Nizhny Novgorod to stimulate investors open new businesses in the region. Participation in MIPIM-2010 also is expected to bring some good results. After Magna-Sberbank did not purchase Opel, GAZ Group invested efforts in the production of a local car, Volga Siber. Learn more in the weekly report by FederalPress.
New tax remissions have been introduced in Nizhny Novgorod to stimulate investors open new businesses in the region. Participation in MIPIM-2010 also is expected to bring some good results. After Magna-Sberbank did not purchase Opel, GAZ Group invested efforts in the production of a local car, Volga Siber. Learn more in the weekly report by FederalPress.
Election results
City Dumas of Nizhny Novgorod Region started to elect Town Heads. The procedures will be over by April 10, 2010. This is the first year when mayors are election by the Duma deputies, and not by general elections. In most locations of the region members of the United Russia are being elected Town Heads.
After mayors are appointed, City Dumas will announce competitions to select and hire city-managers.
Legislation to assist investors
Regional authorities of Nizhny Novgorod demonstrate serious intentions in finding investors. Last week governor Valery Shantsev delivered presentation of social, economic and investment potential of the region in the German Embassy in Moscow.
At the same time, Regional Legislative Assembly adopted two amendments to the Act on governmental support of investment activities in Nizhny Novgorod Region.
The first amendment introduces the new maximum of a tax relief for investors, which now makes 4.5 percent. Investors are entitled to get this tax relief irrespective of other tax remissions they have for other projects.
The second amendment cancels the obligatory requirement for extension of the tax base for those investment projects applying for governmental support.
Both amendments improve economic climate for investors in the region.
Joint enterprises
Governor Valery Shantsev reports that currently there are 80 joint Russian-German enterprises and 20 new production venues with 100% foreign capital in Nizhny Novgorod Region. The region presents every opportunity to extend such business cooperation.
Regional authorities demonstrated current investment projects of the international airport and football stadium in the USA, France and Spain. Although there are no concrete agreements from MIPIM-2010 (Cannes, France), the regional minister of investment policy expects the outcome to be successful.
Last year’s participation in MIPIM-2009 brought several big European companies to Nizhny Novgorod Region. Castorama, for one, opened the first construction materials hypermarket in the region.
Josef Rettenmaier Rus Production (JRS, J. Rettenmaier & Soehne GmbH+Co) builds a factory to produce cellulose fibers near the city of Balakhna, Nizhny Novgorod Region. Freudenberg Politex opens the second production line for nonwoven fabric.
GAZ Volga Siber
Dwellers of Nizhny Novgorod Region will get additional discounts if they decide to buy locally produced GAZ Volga Siber. The governor of the region signed an order, which doubles the discount amount.
Now the regional discount makes 100 thousand rubles, plus 50 thousand rubles of reimbursement from the federal budget. Discounts are available for those car owners who bring their old cars into junk following the official procedures.
Regional minister of industry and innovations Nikolai Sataev reports there are 500 requests for GAZ Volga Siber submitted since the reimbursement program started. Experts comment, obviously this is not the amount of orders GAZ Group counted for.
Purchase deal between the Consortium Magna-Sberbank and Opel did not occur as expected, and GAZ facilities in Nizhny Novgorod will not be used to produce German automobiles. Volga Siber also did not prove to be an equal replacement. It has not become a popular car with private owners, but the federal agencies stroke a number of wholesale deals.