INVESTMENT MEMORANDUM OF THE LIPETSK REGION 2017 CONTENTS 1. General provisions................................................ 3 2. The main areas of the investment policy...........................3 3. Priorities of the investment policy...............................4 4. Investment activity stakeholders..................................5 5. Relations between investment activity stakeholders................5 6. Principles of the investment policy in the Lipetsk Region.........5 6.1. Investment activity support.....................................5 6.2. Level terms for domestic and foreign investors..................5 6.3. Protection of the right of free business partner choice.........5 6.4. Reduction of administrative hurdles.............................6 6.5. Protection of investor rights...................................6 6.6. Development of the residential environment......................6 6.7. Involvement of stakeholders in legislative activities...........6 6.8. Transparent formation and implementation of the investment policy ..................................................................... 7 6.9. The obligation of the Governor of the Lipetsk Region to optimize the procedures of issuing permits for investors......................7 6.10. The obligation of the Lipetsk Regional Administration to negotiate with stakeholders of entrepreneurial and investment activity ..................................................................... 7 7. Investor relations: working procedure.............................8 7.1. Pre-investment phase of a project...............................8 7.2. Investment phase of a project...................................8 7.2.1. The mode of cooperation between the Lipetsk Regional Administration and investors in the investment phase of a project....8 7.2.2. The procedure for obtaining government support for investment projects............................................................. 9
Transcript
INVESTMENT MEMORANDUM OF THE LIPETSK REGION
2017
CONTENTS
1. General provisions.....................................................................................................................................3
2. The main areas of the investment policy...................................................................................................3
3. Priorities of the investment policy.............................................................................................................4
6.2. Level terms for domestic and foreign investors......................................................................................5
6.3. Protection of the right of free business partner choice...........................................................................5
6.4. Reduction of administrative hurdles.......................................................................................................6
6.5. Protection of investor rights....................................................................................................................6
6.6. Development of the residential environment..........................................................................................6
6.7. Involvement of stakeholders in legislative activities..............................................................................6
6.8. Transparent formation and implementation of the investment policy....................................................7
6.9. The obligation of the Governor of the Lipetsk Region to optimize the procedures of issuing permits for investors...................................................................................................................................................7
6.10. The obligation of the Lipetsk Regional Administration to negotiate with stakeholders of entrepreneurial and investment activity.........................................................................................................7
7. Investor relations: working procedure.......................................................................................................8
7.1. Pre-investment phase of a project...........................................................................................................8
7.2. Investment phase of a project.................................................................................................................8
7.2.1. The mode of cooperation between the Lipetsk Regional Administration and investors in the investment phase of a project.........................................................................................................................8
7.2.2. The procedure for obtaining government support for investment projects.........................................9
8. Government support for investors...........................................................................................................11
9. Development of private public partnership and investment project support...........................................21
10. Formation of special economic zones, industrial parks and clusters.....................................................22
10.1. How to become a resident of the Lipetsk Special Economic Zone....................................................23
10.2. How to become a participant of a regional special economic zone....................................................25
10.3. Requirements for industrial parks and their management companies................................................27
10.4 Conditions for creation and operation of clusters................................................................................29
11. Professional training and re-training programs targeting skills required by investors..........................31
12. Procedure and forms of controlling the implementation of the provisions set forth in the sections of the Memorandum.........................................................................................................................................32
13. The list of public programs targeting the support of investment activity..............................................33
14. The list of regulatory acts governing investment activity in the Lipetsk Region in 2017.....................34
1.1. This Investment Memorandum of the Lipetsk Region (hereinafter the Memorandum) sets priorities for development of investments and investor support in the Lipetsk Region.
1.2. The sole responsibility for the implementation of the provisions of this Memorandum shall be assumed by the Lipetsk Regional Department of Investments and International Relations (hereinafter the “Coordinator”).
1.3. The implementation of the provisions of the Memorandum shall be monitored by the Coordinator.
1.4. The text of the Department of Investments and International Relations of the Lipetsk Region shall be included in the list of public information resources of the Lipetsk Region.
2. The main areas of the investment policy
The main areas of the investment policy of the Lipetsk Region are:
• creation of a favorable investment environment in the region; • improvement of the legal framework for investment activity;• transition to innovative development;• improvement of investment attraction practices;• improvement of the efficiency of the government's efforts to support investment ac-tivity; • active support of efficient investment projects aimed at producing competitive prod-ucts; • introduction of environmentally friendly (waste-free) technologies, the use of modern high-performance systems for air and water purification, waste disposal, i.e. the transition to eco-friendly practices in industry;• intensification of the investment attraction in science-driven industries producing competitive products that meet international standards (with a high added value); • introduction of energy-saving technologies, IT and telecommunication, and electronics, the use of new materials and chemical technologies;
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• creation of the conditions for intensifying the inflow of investments and new tech-nologies in the regional economy from domestic and foreign sources;• expansion of investment sources;• media coverage of the region’s potential and opportunities for developing commod-ity-based and recreational sectors;• measures to provide equal starting conditions for investment projects based in mu-nicipalities with a different level of development;• media coverage of investment opportunities provided in selected areas of the Lipetsk Region;• measures to improve the system of information and analytical support of innovative activity, create and update the database of innovations emerging in the region, across the Russian Federation, and outside Russia, which are of interest to the companies operating in the region;• improvement of comprehensive and cluster-based approaches based on:
- development of special economic zones of federal and regional importance;- creation and development of industrial parks;- development of private public partnership;- cooperation with development institutions at the federal level, venture capital
funds, the relevant ministries and agencies responsible for promotion of innovations in economy and development of efficient infrastructure and business environment;• promotion of investment projects using the opportunities provided by the Chamber of Commerce and Industry of the Russian Federation;• implementation of the Cooperation Agreement concluded between the Strategic Ini-tiatives Agency and the Lipetsk Regional Administration;• development of social and professional mobility, as well as workforce in medium business and social sphere;• information and HR support of investment activities.
3. Priorities of the investment policy
The priority areas of the region’s investment policy are development of the infra-structure for investment activity, more intense efforts to redirect the investments flow to-wards hi-tech industries, information and HR support of investment activities.
The priority areas for investment attraction in the Lipetsk Region are defined by the region’s existing competitive advantages and the objective of modernizing the traditional industries and developing new types of economic activity, which include:
• mechanical engineering, including machine tool production, complex electric and electronic appliances, radio devices, power engineering, medical, electronic, and optical equipment, as well as robotic machinery;• metalworking, namely, the projects targeted at integration into international produc-tion chains; • construction materials (i.e. the manufacture of other non-metallic mineral products), i.e production of modern and competitive construction materials in quantities that meet the demand both in the Lipetsk Region and the neighboring regions;• agriculture: production of eco-friendly products by reference to the climate and re-gional peculiarities;
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• food and processing industry; • alternative energy; • logistics; • tourism and recreation, namely, the projects aimed at setting up the tourism clusters in the Lipetsk Region;• investment projects aimed at developing the mineral resources of the region;• production of agricultural machinery, vehicles and components for them;• pharmaceuticals and biotechnologies.
4. Investment activity stakeholders
The stakeholders of investment activity are investors, customers, contractors, users of investment objects as well as suppliers, legal entities (banks, insurance companies and intermediaries, investment exchanges) and other participants of investment process.
Investment activity stakeholders may be individuals and legal entities, including for-eign ones.
5. Relations between investment activity stakeholders
The relations between investment activity stakeholders shall conform to the existing legislation and be implemented in line with the international treaties signed by the Russian Federation, federal laws and regulations of the Russian Federation, laws and regulations of the Lipetsk Region, as well as regulations of municipal authorities.
6. Principles of the investment policy in the Lipetsk Region
6.1. Investment activity support
The Lipetsk Regional Administration is ready to offer investors a favorable environment for delivering investment projects in the region in accordance with the applicable law and provide government support for investment projects.
6.2. Level terms for domestic and foreign investors
The Administration of Lipetsk Region provides equal opportunities for both Russian and foreign investors, with a focus on the social, economic and environmental efficiency of an investment project, the possibility of establishing and developing industry and cross-industry cooperation.
The Lipetsk Region is interested to attract the companies that are focused on further expansion of their businesses, regardless of what country they represent.
6.3. Protection of the right of free business partner choice
The Lipetsk Regional Administration acknowledges the right of an investor to freely choose contractors, suppliers and any other business partners, and guarantees non-interference in the operating activities of investors engaged in the projects based in the Lipetsk Region.
All investors have equal rights to:4
- the information necessary for decision-making, performance of investment activities and investment protection;
- the government support of their investment activities in compliance with the regional laws and regulations.
All investors, regardless of their ownership type, are guaranteed to the right to freely discuss investment projects.
6.4. Reduction of administrative hurdles
Investors in the Lipetsk Region are offered sites that have the necessary infrastructure. In terms of investor relations, the policy of the Lipetsk Region is aimed at reducing adminis-trative hurdles, minimizing corruption risks, as well as expanding the “one-stop shop” ap-proach and transition to an online system of rendering public and municipal services.
Lipetsk Region Development Corporation operates the Investment Support Center work-ing as a “one-stop shop” institution. The center provides consulting, legal advice and project support, which allow investors to reduce their costs and save their time during the project preparation phase. In this center, investors are eligible for public services free of charge.
6.5. Protection of investor rights
The Governor of the Lipetsk Region acts as a guarantor of investor rights in the region.
The regional public authorities are not allowed to limit the rights of investors en-gaged in investment projects based in the region to freely choose investment objects, ex-cept as otherwise provided by the federal law.
Should regional regulations be adopted that worsen the investment conditions in re-spect of ongoing investment projects, the authorities shall apply the provisions of regional regulations that were in force as at the moment of making a decision to grant government support to each investment project.
6.6. Development of the residential environment
The Lipetsk Regional Administration prioritizes creation of a comfortable residential environment for both the residents and guests of the region. One of the main areas of economic development of the Lipetsk Region is the formation of an infrastructure for training, recruitment and retention of highly qualified workforce. This area includes the housing program for qualified professionals, as well as formation of a comfortable residential environment (comfortable housing with amenities to accommodate company personnel, social and cultural facilities, including schools and leisure facilities), including affordable and high-quality transport and logistics system that allows to move freely both within the region and across Russia.
6.7. Involvement of stakeholders in legislative activities
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The Lipetsk Regional Administration ensures participation of entrepreneurs and in-vestors in the process of public decision-making and assessment of their implementation in the Lipetsk Region. Besides, the Administration updates the regulatory and legal frame-work by choosing the most beneficial model of relationships between the subjects of the Russian Federation and the stakeholders of investment activity.
Regulation No. 633 of the regional administration dated 27.12.2013 approves the procedure for the assessment of the regulatory impact of the regional regulations affecting entrepreneurship and investment activities.
The assessment of the regulatory impact is intended for checking the regulations for provisions imposing redundant duties and prohibitions and restrictions on entrepreneurship and investment activities or those prompting their introduction, as well as provisions conducive to unreasonable costs in business, investment and the budget of the Lipetsk Region.
Regulation No. 634 of the regional administration dated 27.12.2013 approves the procedure for the expert examination of regional regulations affecting entrepreneurship and investment activities.
The aim of the examination is to identify the provisions that pose unreasonable ob-stacles to business and investment activities in the regulatory acts dealing with en-trepreneurship and investment activities.
The official website of the region features the “Regulatory Impact Assessment” sec-tion http://admlip.ru/activities/otsenka-reguliruyushchego-vozdeystviya.
6.8. Transparent formation and implementation of the investment policy
The Lipetsk Region is committed to providing all investors with a transparent access to the information necessary for performing investment activities, except as otherwise pro-vided by the federal law in respect of the information that constitutes a public, operating or commercial secret, and other type of secret.
6.9. The obligation of the Governor of the Lipetsk Region to optimize the procedures of issuing permits for investors
The Government of the Lipetsk Region acts as a guarantor of the implementation of measures to reduce the duration and the number of the procedures comprising the issuance of permits for investors.
6.10. The obligation of the Lipetsk Regional Administration to negotiate with stake-holders of entrepreneurial and investment activity
All disputes arising in connection to the implementation of the provisions of this Memorandum shall be settled by the stakeholders of investment activity through negotia-tions.
In case of a dispute, the Lipetsk Regional Administration shall enter negotiations with the stakeholders of entrepreneurial and investment activity.
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Disputes related to nonperformance or improper performance of the assumed obli-gations shall be settled by the Arbitration of the Lipetsk Region in accordance with the ap-plicable law.
7. Investor relations: working procedure
At all stages of implementation of an investment project based in the Lipetsk Re-gion, the investor shall be supported by the authorized officers of the industry-specific ex-ecutive bodies of the regional administration and municipal authorities. These officers shall provide the investor with information necessary for decision-making, arrange busi-ness meetings, ensure implementation of necessary legal procedures, and bring the invest-ment project in line with the region’s development strategy.
The implementation of an investment project shall include pre-investment and investment phases.
7.1. Pre-investment phase of a project
In the pre-investment phase of project implementation, the Lipetsk Regional Admin-istration provides the following basic services:• providing a potential investor with information about available options of position-ing the intended investment project (investment sites, existing enterprises ready to con-sider offers of cooperation, etc.), information about the social and economic situation in the region and in the municipal district, local transport network, human resources in the region (or in the districts), natural resources, etc.;• reception and support of the investor in the region, and assistance in visiting the in-vestment sites and arranging negotiations (with the local authorities, energy companies, potential partners, etc.);• consulting the investor on issues related to the implementation of the investment project, on the opportunities that the investor can use when implementing the investment project (co-operation with the existing businesses operating in the region, formation of joint ventures, etc.);• The regional administration and the investor can sign a Memorandum of under-standing, which specifies: 1) general parameters of the project (before the land plot is se-lected), 2) obligations of the parties regarding information exchange, assistance of the re-gional administration in refining the parameters of an investment project, as well as a number of other issues;• presentation of an investment project to the Governor, Deputy Heads of the Admin-istration, industry-specific executive bodies on the regional and municipal level.
7.2. Investment phase of a project
7.2.1. The mode of cooperation between the Lipetsk Regional Administration and in-vestors in the investment phase of a project
The Lipetsk Regional Administration, administrations of municipal and urban dis-tricts and the investor have the authority to define the location of an investment project. The decision shall be made based on the investor’s requirements towards the investment site, i.e. availability of engineering infrastructure that can meet the investor’s demand for electric power, natural gas, water supply, sewage, as well as proximity to roads and rail-
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ways. The investor shall be provided with a rentable land plot that can be later bought out.
The municipal authorities shall confirm the possibility of renting the land plot in ac-cordance with the applicable law. Obtaining a construction permit. The procedure for obtaining a building permit is de-fined by the applicable legislation.
The land rental agreement shall be valid during the designing and construction pe-riod.
Construction of buildings and structures and commissioning of facilities shall be performed in accordance with the applicable law.
After the ownership of the real property is registered, the investor is entitled to buy out the land plot or rent it for the long haul.
7.2.2. The procedure for obtaining government support for investment projects
The organization that implements an investment project may apply for government support in accordance with the applicable law.
The Lipetsk Regional Department of Investments and International Relations organizes the process of selecting investment projects to be supported by the government in the form of property tax exemption, reduction in corporate profit tax rate, provision of public guarantees of the Lipetsk Region, as well as provision of real property from the regional mortgage fund to secure obligations under the loans provided by financial and credit organizations for the investment activity stakeholders engaged in investment projects based in the region in respect .
The list of documents required for being granted government support in the forms men-tioned above is determined by the following laws of the Lipetsk Region: Law No. 59-OZ “On Investments in the Lipetsk Region” dd. 25.02.1997 and Law No. 127-OZ “On the Mortgage Fund of the Lipetsk Region” dd. 29.09.2004.
The documents required for being granted government support in other forms shall be submitted to the relevant industry-specific executive bodies of the Lipetsk Regional Adminis-tration.
The industry-specific executive bodies of the Lipetsk Regional Administration shall accept the application, prepare a letter of compliance of the application with the applicable law, and submit the set of documents to the commission responsible for selection of invest-ment projects to be provided with government support.
The commission shall consider the investor’s application for government support and make a decision on provision of such support within the time set forth by the applicable legis-lation.
The terms of providing subsidies from the regional budget for 2017 to legal entities (except for subsidies provided for state municipal institutions), sole proprietors and indi-viduals producing goods, works and services are set by Lipetsk Regional Law No. 20-OZ “On Regional Budget for 2017 and the Scheduling Period of 2018 and 2019” (Annex 35) enacted on 8 December 2016.
In line with Lipetsk Regional Law No. 2-OZ “On the Body Authorized to Make De-cisions on Granting Investment Tax Credit by Shifting Due Date for Tax Payment” dated 16 November 2016, the Department of Investments and International Relations is autho-rized to give investment tax credits by shifting due dates for corporate profit tax payments
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at a tax rate payable as revenue to the regional budget and the payments made under re-gional taxes.
The decisions on giving give investment tax credits shall be taken pursuant to the procedure provided for in Order No. 150-OD “On Approval of the Order of Making Deci-sions on Giving Investment Tax Credits by Shifting Due Dates for Corporate Profit Tax Payments at a Tax Rate Payable As Revenue to the Regional Budget and the Payments Made Under Regional Taxes” issued by the Lipetsk Regional Department of Investments and International Relations and enacted on 29.12.2016.
The right to government support in accordance with the applicable law after being granted the relevant status shall be granted to:
- residents of the Lipetsk Special Economic Zone; - participants of regional special economic zones; - organizations acting as management companies of special economic zones and ad-
ministrative bodies of special economic zones in the Lipetsk Region; - organizations investing in the construction of infrastructure for special economic
zones (water supply, wastewater disposal, sewage treatment plants); - residents of industrial parks; - managing companies of industrial parks;- organizations implementing innovative projects included into the regional innovative
project register.
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8. Government support for investors.
8.1. Tax incentives.
No.
Item
Taxpayer category Corporate property tax rate
Tax rate for corporate profit tax payable as rev-enue to the regional bud-
get
Vehicle tax rate
-
Tax rateLand
Tax rate– VAT
Land plot rental rate
1. Residents of the Lipetsk Special Economic Zone
0% for ten years;
Article 381 of the Russian Tax Code
0% for a period of 5 years, and for 7 years in case of manufacturing export-oriented or im-port-substituting prod-ucts;
5% for five years;
13.5% from the expiry of 10 years after receipt of the first profit till expiry of the SEZ period.
Article 2 of Lipetsk Re-gional Law No. 151-OZ dd. 29 May 2008“On Reduced Corporate Income Tax Rate”
0% for ten years;
Article 7 of Lipetsk Re-gional Law No. 20-OZ “On Vehicle Tax in the Lipetsk Region” dd. 25 November 2002
0% for five years
Article 395of the Russian Tax Code
0% for the entire SEZ period:- when foreign goods and goods from the Customs Union are imported into the free customs zone;- when foreign goods and goods from the Customs Union imported into the free customs zone are exported from the Cus-toms Union unchanged, except for changes result-ing from natural wear and tear under normal conditions of carriage (transportation) and/or use (operation) (re-export procedure)
Not more than 2% of the cadastral value of the land plot per year
Regulation of the Gov-ernment of the Russian Federation No. 782 “On Establishing an Industrial-Type Special Economic Zone on the Territory of the Gryazi District of the Lipetsk Region” of 21 Decem-ber 2005
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2. Organization officially recognized as a man-agement company of the Lipetsk Special Economic Zone
0% for ten years;
Article 381 of the Russian Tax Code
3. Participants of regional special economic zones
0% for seven yearsArticle 4 of Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
13.5% for 5 years and – in case of manufacture of ex-port-oriented and/or im-port-substituting products – for 7 years
Article 2 of Lipetsk Re-gional Law No. 151-OZ “On Reduced Corporate Income Tax Rate” dd. 29 May 2008
0% for ten years;
Article 7 of Lipetsk Re-gional Law No. 20-OZ “On Vehicle Tax in the Lipetsk Region” dd. 25 November 2002
0% for 3 to 5 years
Resolutions of local/mu-nicipal deputy boards of the Lipetsk Region
from 0.01% to 1% of the cadastral value of the land plot per yearDecisions of the of local/municipal deputy boards of the Lipetsk Re-gion
4. Organizations acting as management companies of special economic zones and administra-tive bodies of special economic zones in the Lipetsk Region
0% for the entire SEZ period
Article 4 of Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
5. Organizations investing in the construction of infrastructure for re-
0% for seven years
13.5% for five years
Article 2 of Lipetsk Re-
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gional special economic zones (water supply, wastewater disposal, sewage treatment plants)
Article 4 of Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
gional Law No. 151-OZ dd. 29 May 2008(“On Reduced Corporate Income Tax Rate”)
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6. Residents of industrial parks
0% for seven years
Article 4 of Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
13.5% for five years
Article 2 of Lipetsk Re-gional Law No. 151-OZ dd. 29 May 2008(“On Reduced Corporate Income Tax Rate”)
0% for five years
Article 7 of Lipetsk Re-gional Law No. 20-OZ “On Vehicle Tax in the Lipetsk Region” dd. 25 November 2002
7. Management compa-nies of industrial parks
1.1% for five years
Article 2 of Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
13.5% for five years
Article 2 of Lipetsk Re-gional Law No. 151-OZ dd. 29 May 2008(“On Reduced Corporate Income Tax Rate”)
8. Organizations winning of the local investment projects contest – as specified in Lipetsk Re-gional Law No. 59-OZ “On Investments in the Lipetsk Region” dd. 25 February 25 1997
0% for the actual payback period of the investment project, but not more than 8 years in agriculture and 5 years in other industries
Article 4 of Lipetsk Regional Law No. 80-OZ “On Corporate
13.5% for the actual pay-back period of the invest-ment project, but not more than 5 years
Article 2 of Lipetsk Re-gional Law No. 151-OZ dd. 29 May 2008(“On Reduced Corporate Income Tax Rate”)
13
Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
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9. Organizations imple-menting innovative projects included into the regional innovative project register
0% for five years
Article 4 of Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-gion” dd. 27 No-vember 2003
13.5% for the actual pay-back period of the invest-ment project, but not more than 5 years
Article 2 of Lipetsk Re-gional Law No. 151-OZ dd. 29 May 2008(“On Reduced Corporate Income Tax Rate”)
10. Organizations that are agricultural producers recognized as such in accordance with Arti-cle 346.2 of the Russian Tax Code and special-ize in beef cattle breed-ing, whose breeding stock population amounts to at least 300 head
1.1%
Article 2 of Lipetsk Regional Law No. 80-OZ dd. 27 Novem-ber 2003(“On Corporate Property Tax in the Lipetsk Re-gion”)
0%
Article 284 of the Rus-sian Tax Code
11. Organizations that are agricultural producers recognized as such in accordance with Arti-cle 346.2 of the Russian Tax Code and special-ize in dairy cattle breed-ing, whose milk herd amounts to at least 300 head
1.1%
Article 2 of Lipetsk Regional Law No. 80-OZ dd. 27 Novem-ber 2003(“On Corporate Property Tax in the Lipetsk Re-gion”)
0%
Article 284 of the Rus-sian Tax Code
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8.2. Benefits.
Ben
efit
nam
e
Ben
efit
amou
nt
Ben
efit
reci
pien
t cat
egor
y
Ben
efit
area
Ben
efit
perio
d
Terms of providing a benefit Order of providing a benefit
Nam
e of
regi
onal
regu
lato
ry d
ocum
ent
Req
uire
men
ts to
war
ds
com
pany
Req
uire
men
ts to
war
ds
activ
ity/p
roje
ct
Rea
sons
for r
ecei
ving
a
bene
fit
Req
uire
d do
cum
ents
Aut
horiz
ed b
ody
Public guar-antee of the Lipetsk Re-
gion
Specified in the Lipetsk re-gional law on the regional budget for the respective finan-cial year.
RUB 250 million for 2017
Stakeholder of investment activity
Government support in the form of regional public guarantees for investment projects for the purpose of mak-ing capital invest-ments
Not more than 15 years
- no arrears on payments to budgets of all administrative levels and to extra-budgetary funds;- the applicant makes profit from its financial and business opera-tions;- availability of sources for repaying the credit on time and in full, with the interest ac-crued for the credit use;- the share of the applicant's own funds in the capital invest-ments shall be no less than 20% of the annual capital expenditure on the implemen-tation of the project;- a positive review of the com-pany’s financial standing is-
- economic and social importance of the project for the region;- budget efficiency;- implementation of innovative practices and production of innovative products;- production of export-oriented and/or import-substituting products.
Competitive selection.
The list of documentsis determined by Lipetsk Regional Law No. 59-OZ “On Invest-ments in the Lipetsk Re-gion” dd. 25.02.1997.
Department of Investments and Interna-tional Rela-tions of the Lipetsk Re-gional Ad-ministration
Lipetsk Regional Laws No. 94-OZ “On the Budgeting Process in the Lipetsk Region” dd. 9 October 2007 and No. 59-OZ “On Investments in the Lipetsk Region” dd. 25 February 1997.
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sued by the regional tax office.
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Mortgage fund of the Lipetsk Re-
gion
Total: RUB 1,510.3 million
RUB 561.9 million not as-signed as at 1 January 2017
Stakeholder of investment activity
Provision of real property from the regional mortgage fund to secure obligations under the credits granted by finan-cial and credit organizations to the investment activity stake-holders engaged in investment projects based in the region
For the credit period
- security for the perfor-mance of obligations in the amount of at least 50% of the amount of the required col-lateral;- debtor’s liability insurance against non-fulfillment or improper fulfillment of obli-gations under the credit agreement.
- the applicant shall have its own funds in the amount of at least 20% of the capital ex-penditure on the invest-ment project- economic and social importance of the project for the region- budget efficiency;
Competitive selection.Order of the Lipetsk Re-gional Ad-ministration
The list of documentsis determined by Lipetsk Regional Law No. 127-OZ of 29.09.2004 “On the Mort-gage Fund of the Lipetsk Region”
Department of Investments and Interna-tional Rela-tions of the Lipetsk Re-gional Ad-ministration
Lipetsk Regional Laws No. 127-OZ of 29.09.2004 “On the Mortgage Fund of the Lipetsk Region”
Subsidies RUB 1,423.7 million assigned for subsidies in 2017 The subsidies are envisaged by Lipetsk Regional Law No. 20-OZ “On the Regional Budget for 2017 and for the Schedul-ing Period of 2018 and 2019” dd. 08.12.2016.
Legal entities (except for public munici-pal institu-tions), sole proprietors and individuals producing goods, works and services
Compensation of costs related to implementation of investment projects in the region and those related to pay-ment of interest under credit agreements aimed at implementing investment projects in the region
Conditions for subsidies are set out in the Lipetsk re-gional law on the regional budget for the respective fi-nancial year.Conditions for 2017 are provided for in Annex 35 to Lipetsk Regional Law No. 20-OZ 'On Regional Budget for 2017' enacted on 8 December 2016
The order of providing sub-sidies is set by the regula-tions of the Lipetsk Regional Administration for each type of subsidies within the framework of the regional target programs listed in the column “Name of the re-gional regulatory document”
Lipetsk Re-gional De-partment of Innovation and Industrial Policy
Lipetsk SME Development DepartmentLipetsk Re-gional De-partment of Environment and Nature Resources
Lipetsk Re-gional Agri-cultural Department
1. “Assurance of Investment Appeal of the Lipetsk Region” (Reso-lution No. 458 of the Lipetsk Regional Administration of 11.10.2013).
2. “Modernization and Innovative De-velopment of the Lipetsk Region” (Resolution No. 500 of the Lipetsk Regional Administration of 07.11.2013).
the “Modernization and Development of Industries of the Lipetsk Region for 2014–2020” subprogram;- “Innovative Development of Lipetsk Region 2014–2020” subprogram;- “Small and Medium Business Devel-opment in Lipetsk Region 2014–2020” subprogram.
3. “Environmental Protection, Repro-duction and Rational Use of Natural Resources of the Lipetsk Region” (Resolution No. 524 of the Lipetsk Regional Administration of 19.12.2012).
4. “Development of Cooperation and Collective Ownership in the Lipetsk Region” (Resolution No. 490 of the Lipetsk Regional Administration of 30.10.2013).
5. “Agricultural Development and Agricultural Market Regulation in Lipetsk Region” (Resolution No. 485 of the Lipetsk Regional Administration
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Lipetsk Re-gional Art and Culture Department
of 28.10.2013).
- “Development of Crop Production, Processing and Marketing of Crop Production in the Lipetsk Region in 2014–2020“ subprogram;- “Development of Animal Husbandry Sector, Processing and Marketing of Animal Production in the Lipetsk Re-gion in 2014–2020” subprogram.6. “Development of Culture and Tourism in the Lipetsk Region” (Resolution No. 535 of the Lipetsk Regional Administration of 29.11.2013).- “Lipetsk Cultural Heritage Develop-ment and Preservation 2014–2020” subprogram of the “Development of Culture and Tourism in the Lipetsk Region” state program;- "Development of Tourism in the Lipetsk Region 2014 - 2020" subpro-gram.
Exemption from customs
duties
0% Lipetsk Industrial SEZ residents
Exemption from customs duties granted by the government-
For the entire SEZ period
For Lipetsk Industrial SEZ residents:- when foreign goods and goods from the Customs Union are imported into the free customs zone;- when foreign goods and goods from the Customs Union imported into the free customs zone are exported from the Customs Union unchanged, except for changes result-ing from natural wear and tear under normal conditions of carriage (transportation) and/or use (operation) (re-ex-port procedure)
Resolution of the Lipetsk customs office
Customs documents
Lipetsk customs office
Agreement on free trade (special eco-nomic) zones in the Customs Union and related customs clearance procedures signed by and between the Russian and Belarusian Governments in Saint Pe-tersburg on 18 June 2010
•Lipetsk Regional Law No. 59-OZ “On Investments in the Lipetsk Region” dd. 25 February 1997 (as amended in Regional Law No. 387-OZ on 31.03.2015)
•Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Region” dd. 27 February 2003 (as amended in Regional Law No. 509-OZ on
01.04.2016)
•Lipetsk Regional Law No. 127-OZ “On the Mortgage Fund of the Lipetsk Region” dd. 29 September 2004 (edited on 01.04.2016)
•Lipetsk Regional Law No. 151-OZ “On Reduced Corporate Income Tax Rate” dd. 29.05.2016 (as amended in Regional Law No. 509-OZ on 01.04.2016)
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•Lipetsk Regional Law No. 80-OZ “On Vehicle Tax in the Lipetsk Region” dd. 25 November 2002 (as amended in Regional Law No. 509-OZ on 01.04.2016)
The procedure for obtaining government support for investment projectsThe organization implementing an investment project may apply for government support in accordance with the applicable law.
The Lipetsk Regional Department of Investments and International Relations organizes the process of selecting investment projects to be supported by the govern-ment in the form of property tax exemption, reduction in corporate profit tax rate, provision of public guarantees of the Lipetsk Region, as well as provision of real property from the regional mortgage fund to secure obligations under the loans provided by financial and credit organizations for the investment activity stakehold-ers engaged in investment projects based in the region in respect .
The list of documents required for being granted government support in the forms mentioned above is determined by the following laws of the Lipetsk Region: Law No. 59-OZ “On Investments in the Lipetsk Region” dd. 25.02.1997 and Law No. 127-OZ “On the Mortgage Fund of the Lipetsk Region” dd. 29.09.2004.
The documents required for being granted government support in other forms shall be submitted to the relevant industry-specific executive bodies of the Lipetsk Regional Administration. The industry-specific executive authorities the Lipetsk Regional Administration shall accept the application, prepare a letter of compli-ance of the application with the applicable law, and submit the set of documents to the commission responsible for selection of investment projects to be provided with government support.
The commission shall consider the investor’s application for government support and make a decision on provision of such support within the time set forth by the applicable legislation.
The terms of providing subsidies from the regional budget for 2015 to legal entities (except for subsidies provided to state municipal institutions), sole proprietors and individuals producing goods, works and services are set by Lipetsk Regional Law No. 348-OZ “On Regional Budget for 2015 and the Scheduling Period of 2016 and 2017” (Annex 37) enacted on 18 December 2014.
The right to government support in accordance with the applicable law after being granted the relevant status shall be granted to:
residents of the Lipetsk Special Economic Zone; participants of regional special economic zones; organizations acting as management companies of special economic zones and administrative bodies of special economic zones in the Lipetsk Region; organizations investing in the construction of infrastructure for special economic zones (water supply, wastewater disposal, sewage treatment plants); residents of industrial parks; management companies of industrial parks.
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9. Development of private public partnership and investment project support.
As part of the efforts to create the conditions for delivering private public partnership (PPP) projects, the Lipetsk Region is implementing a project for development of institutions and regulatory framework for PPP.
The Lipetsk Regional Department of Investments and International Relations is re-sponsible for implementation of PPP projects in the Lipetsk Region;
The Council for Improvement of Investment Environment and Development of Com-petitive Economy in the Lipetsk Region acts as an interdepartmental body to shape the PPP policy and consider PPP projects offered for implementation;
The order of interdepartmental cooperation and coordination of actions between exec-utive bodies of the Lipetsk Regional Administration in implementation of projects based on private public partnership and concessionary agreements is approved by Order No. 499-r of the Lipetsk Regional Administration dated 10.10.2016.
The order of controlling the performance of PPP and concessionary agreements and keeping the record of PPP agreements is defined by Order No. 624 of the Lipetsk Regional Administration dated 23.12.2016.
The procedure for taking decisions on concluding PPP and concessionary agreements for a period exceeding the period of approved credit limits is defined by Order No. 467 dated 29.10.2014 (edited on 28.12.2016)
To organize the measures for drawing investments in municipalities using PPP prac-tices, the relevant authorities have developed a register of facilities that could become sub-jects of concessionary agreements to be concluded by the Lipetsk Region. The register can be viewed in the Investment Portal of the Lipetsk Region and atwww.torgi.gov.ru.
The Lipetsk Regional Administration approved the plan for delivery of pilot PPP (or concessionary) projects in 2016-2017.
The Lipetsk Region Development Corporation provides investor support, including ad-visory and administrative support, ensures a “one-stop shop model” of contacting the local authorities and manages the process of selecting sites for investment projects.
All necessary information can be viewed in the Investment Portal of the Lipetsk Region (www.in-vest-lipetsk.ru), which includes the Private Public Partnership section. The section features regulatory docu-ments that govern the PPP sector, information for prospective investors, news from the PPP sector, bidding procedures announced and links to the Unified Private Public Partnership Information System of the Russian Federation (www.pppi.ru).
10. Formation of special economic zones, industrial parks and clusters
The Lipetsk Region is forming special economic zones, industrial parks and clusters. This is aimed at improving the potential investment appeal of the region's municipalities, de-veloping new high-tech manufacturing facilities and ensuring the growth of employment and life standards.
The special economic zones and industrial parks are established in the Lipetsk Region in order to optimize the initial stages of investment project implementation, eliminate admin-istrative hurdles and create new jobs.
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10.1. How to become a resident of the Lipetsk Special Economic Zone
According to Federal Law No. 116-FZ “On Special Economic Zones” dated 22 July 2005, a special economic zone is a part of the territory of the Russian Federation deter-mined by the Government of the Russian Federation, where a special mode of business ac-tivity is applied.
A sole proprietor or business company shall be deemed a resident of a special eco-nomic zone starting from the date of the entry in the register of residents of such special economic zone.
A company (except for unitary enterprises) is regarded as a resident of an industrial special eco-nomic zone if it is incorporated under the laws of the Russian Federation on the territory of the municipal-ity, within which such special economic zone is located, and has concluded an agreement with the author-ities of special economic zones on performance of industrial production, logistics or technology develop-ment activities in the industrial special economic zone in the manner and on the terms specified by the Federal Law “On Special Economic Zones”.
Any person intending to obtain the status of a SEZ resident shall submit to Department of Regional Development of the Russian Ministry of Economic Development or executive authorities of the relevant region of the Russian Federation (when such authorities are duly empowered) an application for an agreement to carry out relevant activities.
This application should contain the following information:the applicant's intended activities in the special economic zone; public and/or municipal property that the applicant needs for performing such activi-
ties; land area required for intended operations of the applicant; expected volume of investments and capital expenditure for the period of the appli-
cant’s activities in the special economic zone, including the data on expected volume of capital expenditure within three years from the date of concluding the agreement on per-formance of activities;
capacity of the required power supply for the applicant’s power receivers, as well as the planned types and amounts of connected load required for the necessary utilities (in-cluding cold and hot water, pipeline gas and thermal power) used for supply of heat, gas, and water and other resources needed for performance of industrial production.
The application for conclusion of the agreement on performance of such activities shall have the following documents attached:
copies of the constituent documents (for legal entities);a business plan filed in line with the guidelines of the Government of the Russian
Federation;a copy of the certificate of state registration of a legal entity or sole proprietor;a copy of the tax registration certificate;Within fifteen working days after receipt of the specified documents, the Department
of Regional Development of the Russian Ministry of Economic Development or executive authorities of the relevant region of the Russian Federation (when such authorities are duly empowered) shall make one of the following decisions:
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1) submit the application and business plan to the expert council on industrial-type special economic zones;
2) refuse the application.OAO Lipetsk Industrial-Type Special Economic Zone is a management company
that is a subsidiary of OAO Special Economic Zones. The main objectives of the management company are:
to ensure the performance of the Agreement “On Establishing an Industrial-Type Special Economic Zone on the Territory of the Gryazi District of the Lipetsk Re-gion” dated 18 January 2006;
to create the infrastructure and other facilities intended to ensure the proper func-tioning of the industrial-type special economic zone located in the Gryazi District of the Lipetsk Region;
management and operation of the facilities related to the special economic zone.
Work is ongoing to transfer certain SEZ management powers to the Department of Investments and International Relations of the Lipetsk Regional Administration (Federal Law No. 213-FZ dated 13 July 2015).
10.2. How to become a participant of a regional special economic zone
Lipetsk Regional Law No. 316-OZ "On Regional Special Economic Zones" dated 18 August 2006 defines the regional special economic zone as a territory with fixed bor-ders (except for tourist, innovative and agricultural zones) offering a favorable environ-ment for businesses.
An entity intending to become a resident of any regional SEZ files an application with the authorized governing body which includes:
1) description of intended business operations in compliance with the SEZ type;
2) land area required for the operations intended by the applicant;
3) estimated capital investments, including investments to be made within a year af-ter the date of agreement.
Together with the application, the applicant submits the following documents:
- a copy of the incorporation certificate;
- a copy of the tax registration certificate;
- a copy of constituent documents;
- an investment project (business plan) approved by the applicant; this document should comply with the requirements set out in Appendix 1 to Order No. 75 " On Ap-proval of Business Plan Forms Submitted to Conclude Production (R&D) Agreements, Se-lection Criteria for Banks and Other Credit Institutions for Reviewing Business Plans, Business Plan Assessment Criteria to Be Applied by Expert Panel on Innovative Special Economic Zones " issued by the Russian Ministry of Economic Development on March 23, 2006, and include a time-limit for filing project documents and engineering surveys to be audited by the federal authorities;
- a positive review of the business plan provided by the credit institution planning to finance the project;
- an extract from the unified state register of legal entities issued by the tax authori-ties;
- documents confirming availability of proprietary funds in the amount of at least 20% of the investment project costs per project year.
Within sixty calendar days after receipt of the above mentioned documents, the re-spective SEZ governing body makes a decision on whether to conclude an agreement with the applicant.
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Regional Industry-Specific Executive Bodies in Charge of Regional SEZ Manage-ment:
Lipetsk Regional Department of Innovation and Industrial Policy
Lipetsk Regional Agricultural Department
Lipetsk Regional Art and Culture Department
Contacts
Executive bodies in charge of regional SEZ management:
Lipetsk Regional Department of Innovation and Industrial Policy
10.3. Requirements for industrial parks and their management companies
An industrial park is a combination of industrial facilities designed to organize the production or modernize the existing production and managed by a management company, which is a for-profit or not-for-profit organization established in compliance with Federal Law No. 488-FZ 'On Industrial Policy of the Russian Federation' dd. 31 December 2014.
Resolution No. 794 'On Industrial Parks and Management Companies of Industrial Parks' adopted by the Russian Federal Government on 4 August 2015 specifies the re-quirements for industrial parks and management companies of industrial parks as recipi-ents of government support.
For an industrial company operating in the industrial park or a management company of the industrial park to become a recipient of government supported provided for by the federal laws, presidential decrees and regulations adopted by the Russian Government, the industrial park shall meet the following requirements:
a) labor productivity in the existing industrial park have to be higher than the average labor productivity in the processing industry of the relevant region of the Russian Federation;
b) the existing industrial park or the industrial park under construction features and/or will have:
infrastructural facilities for vehicles of active and potential residents of the industrial park and other companies maintaining the utilities and infrastructure of the industrial park;
engineering networks and utilities (water , sewerage, heat, power and gas supply facilities) supporting operations of active and potential residents of the industrial park;
other buildings and structures designed for production purposes or modernization of existing facilities operated by active and potential residents of the industrial park;
c) the territory of the industrial park meets the following criteria:the territory covers an area of at least 8 ha;the industrial park is located on the land categorized as industrial land and/or urban
lands where it is allowed to locate industrial facilities;at least 50% of the industrial park is designed to locate production facilities of active
and potential residents of the industrial park;the industrial park is connected with neighboring settlements by public transport or
transport operated by the park; there is a road linking the park with a federal, regional or local motor road and and an entrance to the park from such road;
d) utilities of the industrial park meet the following criteria:the industrial park has a point of connection to the electricity grid with a capacity of
at least 2 MW but no less than 0.15 MW per each hectare of the industrial park's free area or there are available technical conditions for the connection to the power grid or a project to construct on-site power generation facilities;
there is an existing connection, or technical conditions for the connection, to the gas supply network and/or heat supply network;
there is an existing connection, or technical conditions for the connection, to the water supply network and sewerage network;
e) the industrial park is developed in accordance with the Regional Development Strategy of the Russian Federation and local development plans of Russian regions.
For an industrial company operating in the industrial park or a management company of the industrial park to become a recipient of government supported provided for by the federal laws, presidential decrees and regulations adopted by the Russian Government, the management company of the industrial park shall meet the following requirements:
a) the management company of the industrial park is registered as a for-profit or not-for-profit partnership or company or a self-regulatory organization;
b) the management company of the industrial park is registered with tax authorities in the relevant region of the Russian Federation where such company is located;
c) the management company of the industrial park keeps a register of industrial park residents, including but not limited to:
constituent documents of active or potential residents of the industrial park;numbers, subject matters, validity periods and dates of contracts or agreements
between the management company of the industrial park and active and potential residents of the industrial park for the purpose of constructing, developing and operating infrustructural and production facilities in the industrial park;
main state registration numbers and taxpayer numbers of active and potential residents of the industrial park, as well as other related information from the unified state register of legal entities;
d) core operations of the management company of the industrial park are the management of establishment, development and operation of the industrial park and provision of the following services to industrial park residents:
engineering, legal, consulting, marketing, information, logistics and telecommunication services;
acquisition of investors for investment projects of industrial park residents, including business planning, negotiations with credit institutions and investors;
e) the management company of the industrial park has a legal right (including rights granted by a rental contract) to own or operate infrastructural facilities of the industrial park, including its territory, to sell or rent out such facilities to industrial park residents;
f) core operations of the management company of the industrial park (as specified in Paragraph (d) of this Clause) account for at least 80% of all operations and services of such management company;
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g) all operations of the management company of the industrial park are open and transparent.
10.4 Conditions for creation and operation of clusters
Creation of clusters in the Lipetsk Region is a measure that can ensure high rates of economic growth, diversify the regional economy, improve the competitiveness of busi-ness entities, expand their cooperative ties, help access the innovative technologies and create high-performance jobs.
During the establishment and operation of clusters, the following conditions shall be simultaneously met:
the cluster shall include a company with annual revenue of at least 3 billion rubles net of value added tax;
total volume of sales of cluster members in the year prior to the date of the applica-tion shall be no less than 6 billion rubles net of value added tax;
the share of SME in the total number of cluster members is at least 75%;cooperative ties between the business entities of the cluster;the share of SME engaged in innovation activities is at least 50% of the total number
of cluster members;the share of business entities having contracts with research and/or educational orga-
nizations is at least 30% of the total number of cluster members.The cluster shall not include the business entities performing the following activi-
ties:- development of mineral deposits, mining operations, except for the development
and production of mineral water, therapeutic mud and other natural medicinal resources, and metal production, except for the manufacture of other products from ferrous metals not classified elsewhere, manufacture of semi-finished aluminum or aluminum alloys, pro-duction of castings, according to the Russian Classification of Economic Activities;
- processing of minerals, except for the production of bottled mineral water and other ways of using natural medicinal resources, as well as processing of ferrous and non-ferrous scrap metal;
- production and processing of excisable goods (except for cars and motorcycles).Application for inclusion in the Regional Register of Clusters shall be submitted to
the Cluster Development Center by business entities intending to be included in the Re-gional Register of Clusters not later than on 1 November of this year, together with the documents to be approved by a regulatory act of the Lipetsk Regional Administration.
No later than December 1 of this year, the Cluster Development Center shall con-sider the applications, filed by the business entities for the compliance with the conditions set forth in Sections 2 and 3 of this article, and forms them into clusters to be approved by order of an authorized body.
Once the applications are considered, the Cluster Development Center shall prepare a report on the feasibility of creating a cluster and, within 5 business days, provide the au-thorized body with the conclusion, the copies of the documents submitted by such business entities, a feasibility study of creating such cluster, and the respective cluster development program for a period of no less than 3 years approved by the head of the Cluster Develop-
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ment Center.Within 10 business days after obtaining the conclusion and the documents, the au-
thorized body shall review them and make a decision regarding the inclusion in the Re-gional Register of Clusters.
The inclusion in the Regional Register of Clusters may be rejected due to the non-conformity of a cluster with conditions set forth in this section.
The authorized body shall within 10 business days announce its decision on the offi-cial website of the authorized body.
The cluster is deemed created starting from the date of the inclusion in the Regional Register of Clusters.
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Contacts
Authorized body: Lipetsk Regional Department of Innovation and Industrial Policy
11. Professional training and re-training programs targeting skills required by in-vestors
The Lipetsk Region has 18 higher education institutions and 30 vocational schools.Investors have an opportunity to sign contracts with universities and colleges to train
students for required professions. The Lipetsk State Technical University made a trilateral agreement with the manage-
ment of Lipetsk Industrial Special Economic Zone and its resident companies. The agree-ment guarantees employment for the graduates and allows for the implementation of tech-nologies and solutions of university researchers.
The agreement between the Lipetsk State Technical University and Novolipetsk Steel (NLMK) provides for cooperation in professional training, re-training and advanced train-ing of engineers, as well as joint research.
Some foreign companies made agreements with I.A. Bunin Yelets State University.The Agricultural Department of Lipetsk Region made an agreement with Yelets Uni-
versity to establish an education and production cluster and implement professional training programs.
Employment agencies promote professional training and re-training programs to im-prove professional mobility of the local population.
Professional training and re-training programs targeting professions required by the re-gional investment strategy are implemented within partnerships between construction, agri-cultural and engineering companies.
Professional educational institutions located in the Lipetsk Region implement training, re-training and advanced training programs for different employee categories.
Training activities are centered around 4 human resource training centers and 4 multi-functional applied training centers focusing on the steel making, mechanical engineering, construction and agricultural industries.
Independent assessment of students' and employees' skills is performed at 7 professional certification centers.
A priority for the local economy and professional education is compliance of profes-sional training programs with the best global practices and standards.
The Lipetsk Region has confirmed its intention to join the World Skills Russia ini-tiative. The Lipetsk Metallurgical College was selected as a regional coordination center for the WSR initiative. Sergei Nikolaevich Kosarev, Head of the Lipetsk Regional Science and Education Department, was appointed an official delegate of the Lipetsk Region. Sergei Vasilievich Malko from the Lipetsk Regional Science and Education Department was appointed a technical delegate. The associate membership agreement is now in the process of approval.
The Lipetsk Region implements a set of measures focusing on the development of vocational training through the combination of theory with hands-on approach. This set of measures is aimed at:
- Performing the cooperation agreement between educational institutions and manu-facturing companies;
- developing the system of professional certifications at local educational institu-tions;
- improving and developing human resource training centers and multi-functional applied training centers;
- improving the methods of theoretical and hands-on teaching; - organizing local and international internships for employees and students.To improve the quality of education and satisfy requirements of employees for the
training quality, NLMK has developed a training plan that combines theory and practice. To join the efforts of of higher education institutions and vocational schools in
identifying the need for professional skills, education institutions and schools post all in-formation on Vkontakte, Facebook, Twitter and Instagram.
As part of their effort, higher education institutions organize different events, such as the Welcome Day, Open Information Day or Academic Vacancy Fair for Lipetsk students. For example, the Lipetsk State Technical University organizes career guidance classes as part of the University Complex program.
The Federal Employment Service signed an agreement with the Lipetsk Regional Ad-ministration to co-finance the regional program aimed at improving the mobility of human resources as part of the Active Population Employment and Social Support for the Unem-ployed sub-program of the Employment Assistance Program.
12. Procedure and forms of controlling the implementation of the provisions set forth in the sections of the Memorandum
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The measures to control the implementation of this investment Memorandum shall include identification and elimination of violations of the applicable law and rights of in-vestment activity stakeholders, dealing with the applications from applicants, preparation of measures of response to the actions (failures) of the officials of the regional executive bodies.
The routine control of implementation of this Memorandum and the routine control of decisions made by the officials of the bodies involved in the performance of state func-tions (hereinafter the authorized bodies) shall be exercised by the heads of such bodies, who are responsible for organizing the work at each stage of investment projects, as well as by the officials of such authorized bodies.
Depending on the findings of the control, the guilty persons shall be held account-able in accordance with the law of the Russian Federation.
The officials responsible for implementation of the Memorandum shall be appointed by the regulations of the authorized bodies, regulatory provisions on structural subdivi-sions of the authorized bodies, duty regulations and job descriptions for the employees of the authorized bodies.
13. The list of public programs targeting the support of investment activity
- “Assurance of Investment Appeal of the Lipetsk Region” (Resolution No. 458 of the Lipetsk Regional Administration of 11.10.2013)
- “Modernization and Innovative Development of the Lipetsk Region Economy” (Regulation No. 500 of the Lipetsk Regional Administration of 07.10.2013), including:
the “Modernization and Development of the Industries of the Lipetsk Region for 2014–2020” subprogram;
the “Innovative Development of Lipetsk Region 2014–2020” subprogram;
the “Small and Medium Business Development in Lipetsk Region 2014–2020” sub-program.
- “Development of Cooperation and Collective Ownership in the Lipetsk Region” (Resolution No. 490 of the Lipetsk Regional Administration of 30.10.2013)
- “Environmental Protection, Reproduction and Rational Use of Natural Resources of the Lipetsk Region” (Resolution No. 524 of the Lipetsk Regional Administration of 19.12.2012)
- “Agricultural Development and Agricultural Market Regulation in the Lipetsk Re-gion” (Resolution No. 485 of the Lipetsk Regional Administration of 28.10.2013), including:
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the “Development of Crop Production, Processing and Marketing of Crop Production in the Lipetsk Region in 2014–2020“ subprogram; the “Development of Animal Husbandry Sector, Processing and Marketing of Animal Production in the Lipetsk Region in 2014–2020“ subprogram; - Development of Culture and Tourism in the Lipetsk Region
(Resolution No. 535 of the Lipetsk Regional Administration of 29.11.2013), including:
the “Lipetsk Cultural Heritage Development and Preservation 2014-2020” subpro-gram;the “Development of Culture and Tourism in the Lipetsk Region 2014–2020” subpro-gram.
14. The list of regulatory acts governing investment activity in the Lipetsk Region in 2017
Lipetsk Regional Law No. 59-OZ “On Investments in the Lipetsk Region” dd. 25 February 1997 Lipetsk Region Law No. 151-OZ “On Reduced Corporate Income Tax Rate” dd.
29 May 2008 Lipetsk Regional Law No. 80-OZ “On Corporate Property Tax in the Lipetsk Re-
gion” dd. 27 November 2003 (as amended on 27 November 2011) Lipetsk Regional Law No. 20-OZ “On Vehicle Tax in the Lipetsk Region” dd.
25 November 2002 Lipetsk Regional Law No. 316-OZ “On Regional Special Economic Zones” dd.
18 August 2006 Lipetsk Regional Law No. 127-OZ“On the Mortgage Fund of the Lipetsk Region”
dd. 29 September 2004 Lipetsk Regional Law No. 425-OZ “On Research and Development in the Lipetsk
Region” dd. 27 October 2010 Lipetsk Regional Law No. 144-OZ “On Industry in the Lipetsk Region” dd. 14 June
2001 Lipetsk Regional Law No. 20-OZ “On the Regional Budget for 2017 and for the Scheduling Period of 2018 and 2019” dd. 08 December 2016
Deputy Governor of the Lipetsk Region Andrey V. KozoderovAddress: 1 Sobornaya Ploschad, 398014 LipetskTel. +7 4742 27 15 63Fax +7 4742 22 87 75 Е-mail: [email protected]: www. admlip.ru
Lipetsk Regional Department of Investments and International RelationsDirector: Igor G. MalenkoAddress: 1 Sobornaya Ploschad, 398014 LipetskTel.: +7 4742 27 55 83, Fax +7 4742 27 17 09Е-mail: [email protected]: www.invest-lipetsk.com
Annex
FLOW CHART
How the Lipetsk Regional Administration works with investors
Providing a potential investor with information about available options of positioning the intended investment project, information about the social and economic situation in the region and in the municipal district, local transport network, human resources in the region (or in the districts), natural resources, etc.;
Reception and support of the investor in the region, and assistance in visiting the investment sites and arranging negotiations
Consulting the investor on issues related to the implementation of the investment project, and on the opportunities that the investor can use when implementing the investment project
The regional administration and the investor can sign a Memorandum of understanding, which specifies:
Presentation of the investment project to the Governor, Deputy Heads of the Administration, industry-specific regional and municipal executive bodies.
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FLOW CHART
Investment phase of a project
Based on the investor’s requirements towards the investment site, the Lipetsk Regional Ad-ministration, the municipal authorities and the investor agree on the location of the invest-ment project
The municipal authorities confirm the possibility of renting the land plot in line with the applicable law
The investor receives a land plot for rental
Obtaining a building permit specified by the applicable law
Conclusion of the land rental agreement operational for the construction period
Construction of buildings and structures and commissioning of facilities is performed in accordance with the applicable law
Registration of titles to the real property items
The right to purchase the rented land The right to rent the land plot for the long haul
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FLOW CHART
Procedure of providing public support to investment projects in the forms of property tax exemption, corporate profit tax rate reduction, providing public guarantees of the Lipetsk Region, as well as providing real property items from the regional mortgage
fund to secure the obligations to be fulfilled by investment activity stakeholders in line with the Lipetsk Regional Laws “On Investments in the Lipetsk Region” and “On the
Mortgage Fund of the Lipetsk Region”
The Lipetsk Regional Administration announces the investment project competition for gov-ernment support
An investment activity stakeholder submits an application(in the form of a package of documents necessary for making a decision on providing govern-ment support) to the establisher of the competition – the Lipetsk Regional Department of In-vestments and International Relations – within 30 days from the date of publishing the an-
nouncement of the competition.
The establisher of the competition issues a notice confirming the compliance of the ap-plication with the applicable law
The set of documents is submitted to the commission responsible for selecting the in-vestment projects to be granted government support
The investor’s application for government support is considered by the commission
The commission takes a decision within 30 days from the final date of acceptance of the ap-plications
Provision of government support Refusal to grant government support
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FLOW CHART
Provision of subsidies from Regional Budget 2016 to legal entities (except for subsidies to state (municipal) institutions), individual entrepreneurs and individuals
producing goods, works and services
An applicant for the subsidies should meet the criteria specified in Lipetsk Regional Law No. 20-OZ On the Regional Budget for 2017 and for the Scheduling Period of 2018 and
2019” dd. 08 December 2016(Annex 35)
An investment activity stakeholder submits an application(in the form of a package of documents necessary for making a decision on providing govern-
ment support) to the chief administrator of the budget funds in the relevant industry
The application is checked for compliance with the applicable order by the industry-specific executive bodies of the Lipetsk Regional Administration
The chief administrator of the budget funds in the relevant industry prepares an order to pro-vide subsidies from the regional budget, with subsidy recipients specified, and transfers the
subsidies to the bank account of each subsidy recipient.
