Nizhny Novgorod
Information source: the official website of Nizhny Novgorod city Administration, НижнийНовгород.рф/
Nizhny Novgorod is located 400 km eastward from Moscow where two rivers merge: Volga and Oka. The city is situated in the latitude of 560N. and in the longitude of 440E. Nizhny Novgorod covers an area of 41,1 thousand hectares. Due to its favourable geographical location and highly developed transport infrastructure, the city has convenient connections with all Russian regions, CIS and foreign countries.
Population
The population of Nizhny Novgorod amounts to 1.3 mln. citizens.
Transport
The city is located on the junction of the major railway, air, river, pipeline and automobile lines. The international airport "Strigino" provides services of Russian and international flights, the Lufthansa airline provide convenient connection with European countries, North and South America.
Russian railway connects central, northern and northwestern regions of Russia with Ural and Siberia. Gorky-Moscow railway station is one of the biggest centers of transportation in Russia. There are also regional and federal automobile roads. Road density in the region is two times higher then the average level in the country.
In Nizhny Novgorod the Volga United River Steamship Company is located, which is the oldest in Russia.
An immediate vicinity to the Russian capital (439 km to the east of Moscow) is an additional logistic advantage of setting up a business in Nizhny Novgorod.
According to federal and regional laws on investment activity promotion, investors who carry out a priority investment project within Nizhny Novgorod get financial and nonfinancial government support.
A priority investment project should be economically, budgetary and socially efficient.
There are three main groups of sectoral priorities in the investment policy of Nizhny Novgorod region:
1. machine building, scientific complex and new economy, IT, food industry, radio-electronic industry, pharmaceutical industry;
2. iron industry, fuel industry, glass industry, aircraft building, chemical and petrochemical industry, tourism;
3. production of building materials, medical industry, timber industry, pulp and paper industry, light industry, shipbuilding, agriculture.
Main forms of government support of priority investment projects
- Remission of profit and property taxes
Tax exemptions’ validity is limited by the project’s payback period and can’t exceed five years.
- Rental payment
Investors concluded an investment agreement with Nizhny Novgorod region and carrying out a priority project are exempt from rental payment for the utilized ground area during the period of validity of the agreement.
- State guarantees
On a competitive basis, investors can get state guarantees of Nizhny Novgorod region in the form of partial or total liabilities for debt repayment. The period of validity cannot exceed 5 years while the amount of payment for their assignment is equal to 2% of the total amount of the received guarantee.
- Partial compensation of the interest rate on credits, employed for the implementation of investment projects
This financial support is considered to be the most popular and demanded among investors. State reimbursement of the part of interests on bank credits is determined by an investment agreement and credit contract between the bank and investor and accounts for the half of the amount of interest.
