On Investment Declaration on the Republic of Buryatia

THE DECREE

OF THE HEAD OF THE REPUBLIC OF BURYATIA

On Investment Declaration on the Republic of Buryatia

In order to create conditions for mutually beneficial cooperation with the subjects of business and investment activities, assisting in the implementation and promotion of their investment projects and initiatives in the Republic of Buryatia

I hereby:

1.  Approve the Investment declaration of the Republic of Buryatia

(appendix № 1).

2.  Approve the main provisions of the Investment Declaration of

the Republic of Bury atia in 2013 (appendix № 2).

3. This Decree shall enter into force on the date of its signing.

Head of the Republic of Buryatia Ulan-Ude, the House of Government May 6, 2013 № 91

B. Nagovitcin

APPENDIX №1

APPROVED

by the decree of the Head

of the Republic of Buryatia

from 06.05.2013 № 91

INVESTMENT DECLARATION

of the Republic of Buryatia

1. General Provisions

1.1. The present investment declaration of the Republic of Buryatia (hereinafter - the Declaration) establishes the basic principles and conditions for mutually beneficial cooperation with the subjects of business and investment activities in order to assist in the effective implementation and promotion of investment projects and initiatives on the territory of the Republic of Buryatia.

1.2. Legal regulation of relations connected with investment activity on the territory of the Republic of Buryatia is realized in accordance with the Constitution of the Russian Federation, federal laws, legal acts of the President of the Russian Federation and the Government of the Russian Federation, the Constitution of the Republic of Buryatia, the laws of the Republic of Buryatia, legal acts of the Head of the Republic and the Government of the Republic of Buryatia, and the international treaties of the Russian Federation.

2. Basic Principles of Cooperation

2.1. To establish mutually beneficial cooperation with investors the activity of public authorities of the Republic of Buryatia is aimed at providing a favorable investment climate in the Republic of Buryatia and based on the following principles:

- equality and mutually beneficial partnership in the implementation and promotion of investment projects and initiatives;

- the participation of business entities and investment activities in the process of preparing draft regulatory legal enactments of the Head of the Republic of Buryatia and the Government of the Republic of Buryatia affecting their interests, and evaluation of their implementation;

- transparency and accessibility of regulatory legal enactments of the Head of the Republic of Buryatia and the Government of the Republic of Buryatia (with the exception of information constituting a state or other secret information protected by federal law);

- advising information, legal assistance and state support for investment activity on the territory of the Republic of Buryatia.

3. Observance and Protection of Rights Guarantees

of investors on the territory of the Republic of Buryatia

3.1. The investment protection in the Republic of Buryatia, as well as the observance of the rights and interests of investment and business activities subjects are guaranteed in accordance with the legislation of the Russian Federation and the Republic of Buryatia.

3.2. In order to obtain assistance in the realization of private investment projects in the field of cooperation between investors with federal executive bodies, executive bodies of the Republic of Buryatia and local governments investor shall be referred to:

- the authorized representative on the investment in the Republic of Buryatia;

- the investment authorized in the Siberian Federal District.

3.3. The Government of the Republic of Buryatia guarantees:

1) non-worsening situation of investors under terms of the of the investment agreements concluded for the duration of the project;

2) non-interference of state bodies and officials in the conclusion of agreements (contracts), the choice of partners, defining obligations.

3.4. In considering the issues relating to the activities of the investor, the investor has the right to participate in the meetings of the Council at the Head of the Republic of Buryatia on investing activities and discuss questions raised by the investor.

3.5. The investor has the right to participate in a panel discussion of key issues and decisions of investors with the Head of the Republic of Buryatia - the Prime Minister of the Republic of Buryatia

3.6. In accordance with the Law of the Republic of Buryatia of 08.05.2009 «On state support of investment activity on the territory of the Republic of Buryatia" subjects of investment activity are provided the following guarantees:

1) equal treatment of investors in obtaining state support of investment activity;

2) information availability for all investors, necessary to realize investment activities in accordance with current law;

3) publicity and openness of the decision-making procedure on state support granting;

4) non-disclosure of information constituting trade secret and other confidential information on investment projects provided by the investors for their consideration;

5) Non-use to investors additional burdens by financial commitments that are not connected with the implementation of the investment project and not defined by the current law.

4. Provision of services to support the activities of the investor

4.1. To obtain services for promotion of the project investor may apply to the Fund of Regional Development of the Republic of Buryatia operating on the principle of "one window" in accordance with the approved procedures.

4.2. For providing the access to the land for investment projects investors can take advantage of the registry investment platforms available for organizing business in the Republic of Buryatia, hosted on a dedicated Internet portal on investment activity in the Republic of Buryatia "Investment passport of the Republic of Buryatia." Preperation, surveying of investment sites for realization of investment projects are now being prepared in the Republic of Buryatia.

4.3. Authorities of the Republic of Buryatia and local authorities in the Republic of Buryatia interacting with the subjects of investment activity consider their proposals for the removal of administrative barriers for the realization of investment projects in the Republic of Buryatia in accordance with the established procedure.

4.4. Investors are provided with information and counseling assistance within the powers granted by the state authorities of the Republic of Buryatia and laws of the Republic of Buryatia.

4.5. Effective mechanisms for investors with highly qualified personnel were created in the Republic of Buryatia.

plex tools to support small and medium enterprises founded in the Republican target program of state support and development of small and medium-sized enterprises in the Republic of Buryatia in the 2years, are in effect in the Republic of Buryatia. Available infrastructure is created for allocation of industrial and other objects, in particular the industrial parks.

4.7. To create a comfortable business environment and livelihoods social, engineering, transport and energy infrastructure objects are built and reconstructed in the Republic of Buryatia every year.

4.8. The Government of the Republic of Buryatia provides operation of a specialized Internet portal on investment activity in the Republic of Buryatia "Investment passport of the Republic of Buryatia," where investors can review the measures of government support, investment offers, available investment sites.

4.9. Laws regulating various mechanisms and measures of state support for investment activities, including the laws of the Republic of Buryatia "On state support of investment activity in the Republic of Buryatia," "On some issues of tax regulations in the Republic of Buryatia, referred by the legislation of the Russian Federation on taxes and duties to the competence of the Russian Federation "," On the favorable economic zones in the Republic of Buryatia " are in effect in the Republic of Buryatia.

Investors signed an agreement with the Government of the Republic of Buryatia, are provided:

- tax incentives: exemption from the property tax for 5 years and the reduction in the next 6 years (differentiated from 4.5% to 2%) in the rate of corporate income tax payable to the state budget;

- state guarantees of the Republic of Buryatia;

- subsidies for compensation of a part of interest rate on credit taken for investment projects;

- budget investments from the state budget to legal entities that do not refer to governmental and municipal agencies and state and municipal unitary enterprises, for the implementation of investment projects;

- investment tax credits, including the regional tax;

- property related to the State Property of the Republic of Buryatia on lease on favorable terms;

- property related to the republican ownership in pledge.

4.10. Support is provided for the residents of tourist-recreational special economic zone "Baikal harbor" and the residents of favorable economic zones in the Republic of Buryatia, including:

- decreased rate of income tax by 4.5% payable to the state budget for the organizations - residents of tourist-recreational special economic zone, economically favorable zone in the Republic of Buryatia of the activities realized in the zone for a period of 5 years beginning from the first day of the tax period in which the entry is made in the register of residents of zones about the registration of the resident;

- organizations - residents of tourist-recreational special economic zone are exempt from property tax for 10 years from the month following the month in which a statement was made on the registration of the said property;

- organizations – residents of favorable economic zone in the Republic of Buryatia are exempt from paying property tax of organizations up to the amounts payable to the state budget, within 5 calendar years beginning from the first day of the tax period in which statement was made on the registration of the said property;

- organizations - residents of tourist-recreational special economic zones are exempt from land tax for a period of 5 years from the month of obtaining ownership of each plot;

- for organizations - residents of favorable economic zone in the Republic of Buryatia incentives are established in terms of land tax (the tax rate is reduced to 50% for up to 5 years) by decisions of other municipal facilities;

- the objects of infrastructure facilities in the areas of tourist-recreational special economic zones, favorable economic zone in the Republic of Buryatia are constructed.

In order to develop the manufacturing of high-tech productions, transportation, infrastructure, tourism and resort areas, creating an enabling environment for investment in the economy of the Republic of Buryatia favorable economic zones were created: 8 zones of tourism and recreation type, 4 zones of industrial production type, auto-touristic and tourist-recreational clusters.

________________________

APPENDIX № 2

APPROVED

by the decree of the Head

of the Republic of Buryatia

from 06.05.2013 № 91

FUNDAMENTAL PROVISIONS

of Realization of the Investment Declaration

of the Republic of Buryatia in 2013

№ of sub items	Name of fundamental provisions	Legal act regulating the implementation of activities	Notes
1	2	3	4
1.	The implementation of the republican target program for creating favorable conditions for attracting investments into the Republic of Buryatia in 2years "Buryatia - the territory of investments"	Resolution of the Government of the Republic of Buryatia of 15.06.2011 № 000	24.9 million rubles from the republican budget are provided for the realization of the republican target program in 2013
2.	The activities of the authorized representative on the investment in the Republic of Buryatia;	Decree of the President of the Republic of Buryatia of 21.06.2011 № 000	Authorized representative of investment in the Republic of Buryatia is the Deputy Prime Minister of the Republic of Buryatia for economic develop-ment Chepik A. E. Contacts: telephone number: 8 (30, , e-mail: *****@***ru
3.	Design and construction of infrastructure objects of the tourist-recreational special economic zone "Baikal harbor"	Agreement on the establishment of tourist-recreational special economic zone on the territory of the municipality "Pribaikalskii region"	Provided financing: 3,301.75 million rubles of the federal budget ; 699.725 million rubles of the republican budget.
4.	State support for small and medium entrepreneurship	Resolution of the Government of the Republic of Buryatia of 25.12.2007 № 000 "On the Republican target program of state support and the development of small and medium entrepreneurship in the Republic of Buryatia in the 2years"	250.8 million rubles will be allocated for these purposes in 2013
5.	State support to investors in the form of subsidies for the compensation of the part of the payment of fees for the use of loans from commercial banks	Law of the Republic of Buryatia of 22.12.2012 «On the republican budget for 2013 and the planning period of 2014 and 2015 years"	82.8 million rubles of the national budget are provided for the purposes in 2013year
6.	Operation of Internet portal on investment activity in the Republic of Buryatia "Investment passport of the Republic of Buryatia"		www. *****
7.	Construction and re-construction of social facilities, engineering, transport and energy infrastructure objects to create a comfortable business environment and livelihoods	The Law of the Republic of Buryatia of 22.12.2012 «On the republican budget for 2013 and the planning period of 2014 and 2015years"; Federal address investment program	Construction and reconstruction of infrastructure facilities in the amount of 14.2 billion rubles from the budget including the construction of 24.05 km of public roads of local importance, the construction of a bridge across the river Barguzin, the reconstruction of more than 82 km of public roads of regional importance, 14 objects of energy, communal and engineering infrastructure, 35 objects of social facilities and public infrastructure will be financed in the Republic of Buryatia in 2013. About 40 objects will be put into operation including: - the 2nd launch complex of the 2nd stage of the Buryat State Academic Theater of opera and ballet; - the 2nd launch complex of the State Russian Drama Theatre named after N. A.Bestuzhev; - 1 phase of the National Cancer Clinic in Ulan-Ude city; - Republican Centre for Disease Prevention and Control of AIDS and Infectious Diseases (stage 2); - the 4th launch complex of Public Health Agency "Children's Republican Clinical Hospital"; - 2 objects of tourist-recreational special economic zone (berthing facilities, lighthouse on the site Turka); - 1 stage of industrial park in Ulan-Ude; - about 10 gyms and playgrounds; - 2 schools in Ust-Egita village and Horinsk village; - 8 medical and obstetrical stations in Bichursky, Barguzinsky, Dzhidinsky, Kabansky, Ivolginsky, Muhorshibirsky, Tunkinsky districts and the city of Ulan-Ude; - 24.05 km of reconstructed roads Ulan-Ude - Turuntaevo - Kurumkan - New Uoyan; - the bridge over the river. Barguzin at km 268 a /d Ulan-Ude - Turuntaevo - Kurumkan - New Uoyan; - 82.15 km of reconstructed regional roads; - engineering infra-structure in Arshan village, Kyren village in Tunkinsky district and Maksimikha village in Barguzinsky district.
8.	Formation of the register of investment sites in the Republic of Buryatia	Resolution of the Government of the Republic of Buryatia of 30.06.2010 № 000 "On the formation of the register of investment sites on the territory of the Republic of Buryatia"	More than 10 new investment sites are planned to be included in the said register in 2013 year.