The Rostov region has a number of competitive advantages that create prerequisites for attracting investments and successful progressive development.
The main ones are:
- favorable geographical position, which provides the region with the name of the "gateway" of Russia to the countries of the Black Sea, Mediterranean and Caspian Basins;
- the most important geopolitical significance of the region for Russia;
- developed transport infrastructure, represented by federal railways and highways, sea and river ports, an international airport in Rostov-on-Don;
- high natural resource potential (temperate continental climate, 65% of land resources are chernozems);
- highly developed industry, and, above all, the machine-building complex;
- rich raw material base for the processing industry;
- a wide range of mineral resources;
- availability of a highly skilled and active workforce;
- dynamically developing infrastructure of market institutions (banks, insurance, investment companies, leasing companies, etc.);
- the existence of a regulatory framework that ensures the investment attractiveness of the region;
- high consumer demand;
- stable socio-political situation.
The investment policy of the region is being built in accordance with the Investment Development Strategy of the Rostov Region until 2030, as well as the State Program of the Rostov Region "Economic Development and Innovative Economy".
The Rostov region was among the first subjects of the Russian Federation to adopt the regional law "On support of investment activities in the territory of the Rostov region" in early 1998. The adoption of this law marked the beginning of the formation of the legislative framework of the region, aimed, first of all, at creating a favorable environment for the development of a competitive business focused on the stringent requirements of the world market, strengthening the financial position of the real sector of the economy, while providing the budget system with stable income sources.
Investment legislation is in force in the region, which provides a whole range of preferences for potential investors. The basis of the investment legislation of the region is formed by the following documents:
- Regional Law dated 01.10.2004 No. 151-ЗС "On Investments in the Rostov Region" (as amended on 23 September 2020 No. 363-ЗС);
- Regional Law No. 35-ЗС dated 02.07.2008 "On the provision of state guarantees of the Rostov Region" (changes dated December 16, 2019 No. 262-ЗС, changes dated August 4, 2020 No. 348-ЗС);
- Regional law "On regional taxes and some issues of taxation in the Rostov region" dated 05/10/2012 No. 843-ЗС (as amended on August 4, 2020 No. 345-ЗС);
- Decree of the Government of the Rostov Region of September 23, 2015 No. 603 "On support of investment projects in the Rostov Region" (amendments of June 16, 2020 No. 551);
- Decree of the Government of the Rostov region of 22.03.2012 No. 218 "On the procedure for providing state support for investment activities of organizations from the regional budget" (as amended on October 6, 2020, No. 37);
- Decree of the Government of the Rostov Region of 15.03.2012 No. 187 "On some issues of providing state guarantees of the Rostov Region" (changes of 13.10.2016 No. 696, changes of 25.05.2020 No. 464);
- Resolution of the Government of the Rostov Region No. 95 of 18.02.2016 "On the Procedure for Making Decisions on the Conclusion of Concession Agreements, the Grantor of which is the Rostov Region, for a period exceeding the validity period of the approved limits of budgetary obligations";
- Decree of the Government of the Rostov Region of November 14, 2011 No. 128 "On the Investment Council under the Governor of the Rostov Region" (amendments of March 17, 2020 No. 178);
- Resolution of the Government of the Rostov Region No. 227 of March 30, 2016 "On the Authorized Organization";
- Decree of the Government of the Rostov Region No. 697 of 13.10.2016 "On the procedure for providing subsidies to organizations, regardless of their organizational and legal form, to reimburse part of the costs of creating capital construction of engineering infrastructure, which are an integral part of the investment project, and (or) their connection (technological connection ) to the engineering systems of electricity, gas, water supply and sewerage "(amendments dated April 13, 2020 No. 331).
The most relevant for investors are such areas of support for investment activities as:
1. Granting benefits for taxes on profits and property of organizations. Provided to investors carrying out investment activities in the Rostov region, for the payback period of the investment project, but not more than five years, including:
- on the property tax of organizations in the amount of 1.1% (organizations implementing investment projects with a capital investment of 300 million rubles or more are exempt from paying corporate property tax);
- on corporate income tax (the tax rate is set at 13.5% (12.5% for 2017-2020biennium) regarding the amounts of tax credited to the regional budget.
2. Granting subsidies to reimburse part of the cost of paying interest on loans received for the implementation of investment projects.
3. Granting subsidies to reimburse part of the costs for the creation of capital construction of engineering infrastructure, which are an integral part of the investment project, and (or) their connection (technological connection) to engineering systems of electricity, gas, water supply and wastewater disposal.
The formation of the legal framework in the investment sphere is based on the principles of unconditional compliance of regional legislation with Russian. This makes it possible to consolidate funds from budgets of all levels for solving the most important, priority tasks of both regional and federal significance.
Foreign investments on the territory of the region enjoy full and unconditional legal protection. Foreign investors have the right to invest capital in all sectors of the economy, to engage in all types of activities, with the exception of industries and industries, types of activities and territories of the region, on investment in which restrictions are imposed by the legislation of the Russian Federation.