REGIONAL GOVERNMENT POLICIES FOSTER INVESTMENT IN NOVGOROD

The Novgorod Region has developed into one of the most attractive locations for foreign investment in the Russian Federation. The region's strategic location along the highway between St. Petersburg and Moscow, its natural and human capital resources, as well as the political stability of Novgorod Governor Mikhail Prusak's administration compliment the regional authorities' aggressive policy initiatives to attract foreign investment. The cornerstone of the regional government's policies is the "Law on Tax Exemption for Enterprises and Organizations Located in the Territory of the Novgorod Region," which frees companies engaged in production and registered in the Novgorod region from regional and local taxes. In addition, production facilities operating within four special economic zones - zones of most favored nation treatment, are exempt from the federal value added tax (VAT). The Novgorod administration's Economic Committee promotes prospective projects and assists investors in their relations with the federal authorities.

Further details on Novgorod's investment climate as well as regional contact information can be obtained through the American-Russian Chamber of Commerce & Industry.