A socially oriented non-financial development institution and a major organizer of international conventions, congress, exhibitions, business, social and sporting, public, and cultural events.

The Roscongress Foundation – a socially oriented non-financial development institution and a major organizer of international conventions, congress, exhibitions, business, social and sporting, public, and cultural events.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 130 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 70 countries worldwide.

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Targeted Infrastructure Support for Business: What’s Next?
11 September 2018
12:30—14:00
KEY CONCLUSIONS
Infrastructure government support is a tool for attracting investment

The unique thing is that the government gives free money for building infrastructure wherever a new enterprise appears, not demanding property, let alone equity, in return; in fact, it is <…> an incentive to come to the Far East — Alexander Krutikov, Deputy Minister for the Development of the Russian Far East .

When we sign an agreement with an investor, we undertake mutual obligations <…> We are tied together with an investor — Denis Tikhonov, General Director, Corporation for Far East Development..

Mechanisms of state support are expanding

There is a new form of funding: subsidizing the costs of the resident <...> This does not mean that there is more money, it’s just that now there is a mechanism to finance the construction, when it is necessary to build faster than the government regulations allow it — Denis Tikhonov, General Director, Corporation for Far East Development..

When the investor builds the infrastructure for their enterprise, they can’t pay taxes to comply with the infrastructure’s worth <...> We managed to prepare this mechanism together with the Finance Ministry, they supported it <...> And <...> the idea is so that not only the engineering infrastructure could be compensated, but the social one, too — Alexander Krutikov, Deputy Minister for the Development of the Russian Far East .

ISSUES
Infrastructure development in the Far East lags behind average Russian indicators

Infrastructure density is 10 times lower than in the European part of the country; this factor deters investment in the Far East tremendously — Alexander Krutikov, Deputy Minister for the Development of the Russian Far East .

Infrastructure support mechanisms need to be improved

There are many claims against this instrument of support, both from the Accounts Chamber and the Ministry of Finance <...> Because it is perceived by everyone as if budgetary money is ‘handed out’ this way — Alexander Krutikov, Deputy Minister for the Development of the Russian Far East .

In the draft (proposed by the Ministry for the Development of the Far East – Ed.), there is a restriction of 30% on the investment that can be subsidized in the form of tax preferences. And that, I think, is a limitation for the Far East, because here it often happens so that investments in infrastructure exceed investments in the project itself — Dmitry Kudinov, General Director, Mazda Sollers Manufacturing Rus.

We are considering the possibility of transferring the infrastructure facility into government ownership <...>, provided that we are compensated for tax liabilities. Without these liabilities, we can’t simply transfer the facility into government ownership — Sergey Zhuravlev, Vice President of Government Relations, Polyus.

It is difficult for small and medium-sized companies to invest money in production facilities at the initial stage — Denis Tikhonov, General Director, Corporation for Far East Development..

Underdevelopment of construction services market in the Far East

When we hold a competition, we can’t even form a competitive environment, because there are very few companies — Denis Tikhonov, General Director, Corporation for Far East Development..

The contract market in the Far East, in Khabarovsk particularly, was very scarce — Andrey Zhzhenyh, General Director, SKIF Group of Companies.

SOLUTIONS
Expansion of government support measures with interest of businesses considered

Implementation of new projects is impossible without further government support — Valery Tsivilev, General Director, Kolmar Group.

The focus is on increasing investment, the implementation of the May Decree on the volume of direct investment, bringing it up to 25% of GDP, and there is a discussion about what needs to be done for private companies to make their capital investments higher. One of the ways is government support. There are several opportunities in that area — Sergey Barsukov, Vice President, PJSC ALROSA.

Developing <…> industrial infrastructure is not enough. This is where it is necessary to develop social infrastructure — Valery Tsivilev, General Director, Kolmar Group.

We are constructing industrial buildings in three ASEZs today to have them transferred to residents for rent, because demand has been revealed — Denis Tikhonov, General Director, Corporation for Far East Development..

Opinion of regional authorities should be considered

As for creating infrastructure facilities, particularly with compensation from tax benefits <...>, such decisions must factor in opinions of regional authorities and local self-government bodies — Aysen Nikolaev, Acting Head of the Republic of Sakha (Yakutia).

Elimination of excessive control over allocated funds

On one hand, that is how it should be <...> the control of the Federation over its money and the accuracy of the investment. On the other hand, it is necessary to see where it is redundant, because people get very distracted — Yury Tyamushkin, General Director, VaninoTransUgol JSC.

The material was prepared by the Russian news agency TASS