Investment portal of Smolensk Region

The annual letter of the Governor of the Smolensk Region «Investment climate and investment policy in the Smolensk Region»

The annual address of the Governor of the Smolensk Region “Investment climate and investment policy of the Smolensk region” presented on 26 May 2014

at the ninth regular meeting of the 4th Duma of the Smolensk region

(information as of 1 April 2014)

In order to increase the quality and living standards of the population, the Administration of the Smolensk region sets a current goal to ensure an economic growth of the region based on knowledge, investment, innovation and high cutting-edge technologies.

The Administration is making considerable efforts on establishing an efficient competitive economy which, in turn, will provide an adequate standard of living for the population of our region.

The volume of investments to the capital stock in the economy of the Smolensk region for the last 5 years has amounted to more than 250 bln rubles. Thus, in 2013 55,9 bln rubles were spent on the development of the economy and social sphere. The index of actual volume was 94,9% compared with the index of 2012 which exceeds the value of 2013 by 8,1% and, on the whole, complies with the overall dynamics of this index throughout Russia - 99,8%.

Investment contribution to the capital stock in the overall volume of the Gross Regional Product of the Smolensk region in 2013 will amount, according to experts, to 26% (whereas in Russia it makes up 20,5%) which, in turn, in case of preserving the same development dynamics, will enable us to claim the accomplishment of the President of the Russian Federation V.V. Putin’s order on achieving the 25% rate of the investment contribution to the Gross Regional Product by 2015 and, consequently, the rate of 27% by 2018.

The Administration of the Smolensk region pays special attention to all the initiatives and measures aimed at the increase of labour performance and productivity. According to the estimated data of the Smolensk Branch of the Federal Agency on Public Statistics the increase of workplaces with high performance in the region in 2013 makes up 25,3% compared with the 2012 rate. In terms of this rate the Smolensk region ranks first in the Central Federal District and has the eighth place in the Russian Federation. The share of highly-skilled workers in the overall amount of skilled workers amounted to 28,% in 2013. The Smolensk region has significantly improved its rating among other territorial entities of the Russian Federation in terms of this index by moving from the fifth place in 2012 to the fourth place in 2013 in the Central Federal District and from the 30th place in 2012 to the 26th place in 2013 in the Russian Federation.

In 2013 there were launched some significant investment projects of the following organizations:

- CJSC “Glass Factory Vorga” the 1st stage of the “Industrial and Technological Park “VORGA” project implementation: “Setting up mass production of industrial glass fittings” managed by LLC “VOSTEK” (the Ershichi District). The Industrial and Technological Park “VORGA” is a unique project which will constitute a complex of intertwined innovative projects with a manufacturing profile which are connected through similar areas of implementation, technologies and needs of their infrastructures;

- having restored the basic industry after a destructive fire of 2011, OJSC “Igorevsky Woodworking Plant” continued the implementation of the regional investment project “Reconstruction and Expansion of the OJSC “Igorevsky Woodworking Plant”. Construction of a plant manufacturing medium density fiberboard (MDF). Development of the infrastructure in the municipal entity “Kholm-Zhirkovsky District” of the Smolensk region (the Kholm-Zhirkovsky District);

- OJSC “Gagarin-Ostankino” project “Construction of a meat processing factory in the town of Gagarin” (the Gagarin District);

- Individual Entrepreneur (IE) Rozdukhov Maksim Evnejevich “Construction of a shopping and leisure centre “Maxi” (Smolensk);

- LLC “Smolenskoye Pole” project “Construction of a pig-breeding complex with the capacity of 9 000 of breeding pigs in the Pochinok District” (the Pochinok District);

- a group of companies “AGRO GZHAT INVEST” implements the 1st stage of the project “Construction of a dairy-production complex with the capacity of 1200 cows for production of milk for sale with a further deep processing and for production of goods in the field of crop farming”: project “Establishing a crop growing complex aimed at the potential marketing of the produced plant goods. Construction of an updated complex for processing and storage of corn”, a project implemented by CJSC “Nasha Zhitnitza” (the Gagarin District);

- LLC “EGGER DREVPRODUCT GAGARIN” project “Setting up the production of faced particleboard” (the Gagarin District);

- CJSC “Zolotaya Niva” project “Construction of a dairy farm with the capacity of 1 200 cows of the Golshtino-frizskaya breed with an on-site food reserve and the second-stage construction of the farm with the subsequent increase of the milk cows up to 1 800 (the Safonovo District);

- LLC “YurAl” project “Construction and putting into operation the meat-processing factory “Safonovsky” (the Safonovo District);

- separate business unit CJSC “Troparyovo” project “Production, storage and processing of grain into compound animal feedstuff both for sale and to meet the needs of their own pig-breeding farms” (the Pochinok District);

- LLC “Varnitza” project “Construction of a brewery and soft drinks plant. Construction of a malting plant.” (the Kardymovo District);

- LLC “Fresenius Medical Care Holdings” project "Construction of a cutting-edge medical centre for dialysis in Smolensk” (Smolensk);

- CJSC “Tander” project “Construction of a distribution centre” (the Smolensk District);

- LLC “Grainlux” project “Setting up production facilities for oilseeds processing” (the Roslavl District);

- LLC “Ariada” project “Construction of a sandwich panel plant” (the Safonovo District);

- LLC “KROL and C” project “Building a rabbit-breeding farm with the capacity of 3 249 doe rabbits” (the Gagarin District).

In 2014 all the long-established projects will be further implemented. Apart from that some new significant projects will be launched, namely:

- OJSC “Roslavl car-repair works” project “Setting up car-building facilities for manufacturing freight wagons” (the Roslavl District);

- LLC “WirmontFood” project “Establishing a poultry production unit specialized in breeding meat broiler chickens in the Smolensk region” (the Tyomkino District);

- LLC “Alyuminievy vek” project “Construction of an aluminium foundry and milling plant” (the Yartzevo District);

- construction of a perinatal centre in the town of Smolensk;

- LLC “EGGER DREVPRODUCT GAGARIN” is planning to launch the second project “Setting up facilities for impregnation of decorative paper” (the Gagarin District);

- LLC “Arsenal CT” in cooperation with a Belgian construction company “Frisomat” will continue implementing the project on construction of rapidly erected industrial buildings (the Kardymovo District).

The overall volume of foreign investment amounted to 381,9 bln US dollars in 2013 which makes up 114,2% comparing with the 2012 rate. The main contributions of the foreign capital in the Smolensk region were made by such well-established enterprises as OJSC “Dorogobuzh”, OJSC “OSRAM” and by some other companies.

Considerable attention is being currently paid to the position of the Smolensk region in various ratings. In December 2012 the rating agency “Ekspert RA” for the fifth time since 2009 has confirmed the investment rating of the Smolensk region defining it as 3B1 which implies a reduced potential and a moderate risk.

In compliance with the Decree issued by President of the Russian Federation No. 1276 of 10.09.2012 and with the orders of the President of 31.01.2013 No. Пр 144ГС, following the results of the meeting of the National Council of the Russian Federation of 27.12.2012, the Ministry for Regional Development of the Russian Federation together with the executive authorities of all the territorial entities of the Russian Federation and with an autonomous non-commercial organization “Agency of strategic initiatives on the launch of new projects” (hereinafter referred to as ANO “ASI”) are assigned to ensure the proper introduction of the standard for all activities of the executive authorities on providing a congenial investment climate in the corresponding region (hereinafter referred to as the standard).

Hence, one of the main priorities in 2013 was due continuation of the work aimed at the introduction of the standard, since putting it into effect will attract more investment and will enable establishment of an efficient continuously working system of interaction between business and the authorities.

The standard includes 15 requirements. Introduction of the standard in the Smolensk region is effected in accordance with the Guidelines on the standard implementation worked out by the Ministry for Regional Development of the Russian Federation in cooperation with ANO “ASI”. In the frames of this work the following activities have already been carried out:

- a project office in the form of a temporary working group on the introduction of the standard was set up in the Smolensk region under the guidance of the First Deputy of the Governor of the Smolensk region M.Yu. Pitkevich which embraces the heads of the executive bodies of the Smolensk region;

- an Expert group on monitoring the standard implementation in the Smolensk region (hereinafter referred to as the Expert group) under the guidance of D.B. Yugodkin (CEO of LLC “DIMETRA-NOVA”) was formed which includes representatives of the business community of the Smolensk region;

- a road map on the standard introduction in the Smolensk region approved by ANO “ASI” and the Export group was confirmed.

The Export group regarded the following 12 activities as fully complying with the standard requirements:

- the existence of the Council for the improvement of the investment climate. In order to analyze the economic situation in the Smolensk region and to work out recommendations on the economic development of the Smolensk region as well as on attraction of investment, a Council for Economy and Investment under the supervision of the Governor of the Smolensk region was established at the Administration of the Smolensk region.

The Council comprises the heads of the territorial entities of the federal executive authorities, heads of the municipal bodies of the Smolensk region, territorial heads of commercial banks and representatives of the business community of the Smolensk region including members of the Expert group.

The first meeting of the Council for Economy and Investment was held on 19 December 2013. Preliminary outcomes of the 1st stage of the scientific and research work “Investigation of the investment climate in the Smolensk region, design of measures to ensure favourable conditions for entrepreneurs and to improve the investment climate in the region”:

- issue of a regulatory legal act of the territorial entity of the Russian Federation on the protection of the investors’ rights and on mechanisms of the investment support. A regional law of 20.11.2013 No. 134-z “On making amendments in the regional law “On governmental support of the investment activities on the territory of the Smolensk region” was issued which allows to make additions to the law on the protection of investors’ rights;

- availability of a direct communication line between investors and the regional authorities to ensure finding immediate solutions to any problems arising in implementation of investment projects. In order to provide efficient cooperation between investors and the authorities of the Smolensk region the following communication channels are established:

1) a website “People’s control” is made to enable users to ask the Governor of the Smolensk region any question directly;

2) official pages of the Governor and the Administration of the Smolensk region are created in popular social networks, namely, in Twitter, Facebook, VKontakte.

3) an Internet receiving office of the Administration of the Smolensk region operates on the official website of the authorities;

4) a direct communication line functions on the Investment portal of the Smolensk region.

ANO “National institute for system research of entrepreneurial problems” pointed out that putting into effect this activity of the standard in the Smolensk region was one of the best regional practices:

- Twitter-channel of the Governor’s assistant https://twitter.com/e_anohina responds to any questions very rapidly (within 2 days on average);

- answers to the questions are usually published in the form of a result, i.e. solution of the problem with all the corresponding details;

- feedback of the channel users enables us to draw a conclusion about a tangible practical help in solving particular problems;

- confirmation of the Investment policy of the Smolensk region by the highest authority in the region. The Administration of the Smolensk region confirmed the Investment policy of the Smolensk region with an order of 20.12.2013 No. 1338-р;

- issue of a regulatory legal act prescribing the procedure of the efficiency assessment of all the issued regulatory legal acts connected with entrepreneurial activities. The Administration of the Smolensk region issued a bylaw of 20.12.2013 No. 1041 “On confirmation of the Procedure on efficiency assessment of projects of regional regulatory legal acts concerned with the entrepreneurial and investment issues”;

- creation of a specialized bilingual Internet portal on the investment activities in the region. The investment portal of the Smolensk region (http://www.smolinvest.com) clearly and efficiently presents information about the investment potential of the region, its infrastructure, investment land plots, planned and already implemented investment projects in the region, description of all available opportunities for public and municipal support of investment activities and detailed application procedure for this support; it also collects investors’ questions and comments and provides immediate response to them;

- availability of the system of education, additional training and assessment of the competence and qualification of those employees who work in specialized bodies of the public authorities in the territorial entities of the Russian Federation as well as in entities which are specialized in attraction of investors and subsequent work with them. The Department for Economic Development of the Smolensk Region worked out and confirmed the qualification requirements (competence models) for the state civil servants, who work in the executive bodies of the Smolensk region and are empowered in the field of investment, with an order “On key efficiency criteria for the performance of all members of the directorate for the investment policy at the Department for Economic Development of the Smolensk region”;

- design and annual update of the plan on the launch of new investment projects and infrastructure objects in the region. A plan on creation of investment objects as well as on construction of transport, energy and social infrastructure objects is made up. It will be annually updated in accordance with the needs arising from the implementation of various investment projects. Infrastructure objects together with their brief description are laid down on the map of the Smolensk region posted on the official website of the Administration of the Smolensk region and on the Investment portal of the Smolensk region;

- annual address of the highest authority of the territorial entity of the Russian Federation “Investment Climate and Investment Policy of the Smolensk Region”. A special section “Investment Climate and Investment Policy of the Smolensk Region” was designed in the annual report made by the Governor of the Smolensk region on the outcomes of all the activities performed by the Administration of the Smolensk region. This report was presented on 30 May 2013 at the 69 regular meeting of the 4th Duma of the Smolensk region;

- availability of an accessible infrastructure for location of industrial and other investment objects. In order to create congenial conditions for attracting investors, industrial areas provided with proper infrastructure are being currently formed. Industrial areas in the Yartzevo and Gagarin districts can be regarded as typical examples;

- including a representative of consumers of energy resources into the executive body of the territorial bodies of the Russian Federation in the field of the state tariff regulation – the Regional Committee on Energy and creating a collective consultative body at the Regional Committee on Energy which embraces representatives of the business community. A Public Council was set up at the Department of the Smolensk Region for Energy, Energy Efficiency and Tariff Policy in order to carry out preliminary analysis of draft decisions on setting tariffs and on confirmation of investment programmes of subjects of natural monopolies. Information about the Public Council, including details about the plans of the Public Council meetings and the outcomes of the previous meetings, is posted on the official website of the Department of the Smolensk Region for Energy, Energy Efficiency and Tariff Policy (tab “Public Council”).

- availability of mechanisms for professional training and retraining on majors complying with the investment strategy of the region and meeting the needs of investors. The Administration of the Smolensk region issued a bylaw of 25.12.2013 No. 1113 “On Confirmation of the Regulation on the Procedure of Making up a Regional Forecast of the Regional Economy Need for Specialists for the midterm (7 years)”.

A regional forecast of the need for specialists for the midterm (from 2014 to 2018) was made in compliance with the current economy needs in the Smolensk region.

The following entities were established in the Smolensk region:

- Cross-sectoral methodological council on the issues of workers’ training for the priority branches of the economy of the Smolensk region;

- Coordinating and analytical centre for fostering the employment of graduates from institutions of higher professional education;

- 7 industry expertise centres on training and retraining of specialists from various fields.

There are centres for scaffolding the employment of school-leavers in vocational educational institutions.

A long-term regional special-purpose programme “Increase of the investment climate of the Smolensk region” for 2012-2015 (hereinafter referred to as the Programme), confirmed with a bylaw of 30.09.2011 No. 603 issued by the Administration of the Smolensk Region, was carried out in the region in 2013 in order to improve its investment climate. The overall volume of financing of the Programme amounts to 167,1 mln rubles. In 2013 the amount of financing at the expense of the regional budget made up 5,5 mln rubles.

In accordance with the amendments made in Clause 179 of the Fiscal Code of the Russian Federation in 2013 in order to achieve priorities of the regional public policy in the field of increasing the economic development and ensuring sustainability of the economy in the Smolensk region as well as to provide a favourable entrepreneurial and investment climate, a regional public programme “Economic development of the Smolensk Region, including creation of a congenial entrepreneurial and investment climate” for 2014-2020 is designed. This programme is confirmed with a bylaw of the Administration of the Smolensk Region of 08.11.2013 No. 894. The regional public programme will be implemented in two stages. The overall amount of financing of the regional public programme will be 712,7 mln rubles without taking into account any money raised apart from the budget. Launch of the regional public program will produce a significant multiplying effect in case of utilizing money from various financial resources. It will have a considerable impact on the overall economic development of the region as well as on the increase of tax contribution to the budgets on all levels.

The system of state support created in the Smolensk Region is aimed at the encouragement of the investment activity in the region, provision of financial and administrative support for investors who implement their investment projects in the region. The state support implies such forms as tax exemptions, subsidies, investment tax credits, project monitoring, professional, information and administrative support for the agents of the investment activity, etc.

The real economy sector has been the main target of the state support of investment activity since 2013. Large enterprises have been granted tax exemptions. Investment projects aimed at the creation of high-performance workplaces or introduction of technological innovations have been of special priority.

In 2013 a number of amendments were made to the regional law issued on 23.12.2002 № 95 “About the state support of investment activity in the Smolensk Region”. The regional law was amended by the regulations on state guarantees of investors’ rights and policies for encouragement of the investment activity in the region. As a result, those investors who have been implementing the projects approved by the Smolensk Region can be granted state support in the form of tax credit on income tax for businesses (applicable for the part of the tax paid into the regional budget).

In accordance with the above mentioned law 12 enterprises received support for the implementation of 12 projects approved by the Smolensk Region in 2013, among them there is FSUE “SPA “Analitpribor”, OJSC “Vyazma-Brusit”, ZAO “Eurodesign”, OJSC Poultry farm “Smetanino”, OJSC “Intex”, etc.

The amount of the state support for investment projects reached 11,1 mln. rubles including:

- subsidies to reimburse payments of credit interests and leasing payments – 4,6 mln. rubles;

- tax exemptions (estimated) – 6,5 mln. rubles.

The effect for the budget system of the Russian Federation caused by the implementation of the investment projects in the Smolensk Region in 2013 was over 180 mln. rubles, including 100 mln. rubles paid into the consolidated budget of the Smolensk Region.

The region has been actively using the mechanism of public and private partnership, a form of interaction between business and state. The implementation of the investment project “Reconstruction and expansion of OJSC “Igorevsky Wood Processing Plant” serves as a successful illustration of the above mentioned policy. Other projects also include the construction of fiberboard production (MDF), the development of infrastructure in the municipal entity “Kholm-Zhirkovsky”. The expenses are co-shared with the budget allocations provided by the Investment Fund of the Russian Federation.

In 2013 there was an official opening ceremony of the sanded particle board facilities restored after the fire of 2011. After the reconstruction the production facilities are supplied with the cutting-edge equipment produced by the German company “Siempelkamp”.

OJSC “Igorevsky Wood Processing Plant” continued the implementation of the investment project at its own expense. At the same time the funding of the construction of the sanded particle board facilities at the expense of OJSC “Sberbank of Russia” has been suspended. OJSC “IDK” is conducting negotiations with the Sberbank of Russia on renewal of the investment project funding at the credit expense. The implementation of the investment phase is planned for 2016.

During the reconstruction of the sanded particle board facilities (2011-2013) OJSC “Igorevsky Wood Processing Plant” faced a number of financial difficulties. Several measures were taken in order to provide assistance for the investor. The OJSC “IDK” had tax exemptions on property and transport taxes in accordance with the regional law issued on 30.11.2011 № 114-з “About tax exemptions”. The volume of the above mentioned tax exemptions amounted to 11,3 mln. rubles, including the estimated 5,65 mln. rubles in 2013.

Moreover, the investment project “Reconstruction and expansion of OJSC “Igorevsky Wood Processing Plant. Construction of sanded particle board facilities” was included into the list of priority projects in forestry by the Ministry of Industry and Trade of the Russian Federation against the documents provided by the Administration of the Smolensk Region. This measure will allow the company to apply the 0,5 index to the payment rates per cubic unit of forest resources and payment rates per square unit of the forest plot during the payoff period of 6,55 years.

In 2013 the Smolensk Region successfully implemented the program of the support of small and medium sized enterprises including the funds from the federal budget. The total amount of money allocated for the support of small and medium-sized enterprises reached 250,8 mln, rubles. 113 small and medium-sized enterprises of the Smolensk Region received support within the implementation of this program.

It should be noted that during the past years the program of support for small and medium sized enterprises was targeted at a wide range of recipients, there was no special focus on industrial production. In 2013 the program of support for small and medium sized enterprises was focused on support of real sector of the economy to stimulate the investment activity in this sphere.

- subsidies granted to small and medium sized enterprises partially to reimburse their investment expenses:

- upto 50% reimbursement of the expenses on the purchase of the equipment necessary for the production process. 46 small and medium sized enterprises received this support which amounted to 89,3 mln, rubles. OJSC “Desnogorsky Polymer Plant”, OJSC “Intensive technologies”, OJSC “Smolensk Collection”, OJSC “Trading company “World of textile”, OJSC “Atlantic” received this support;

- the partial reimbursement of expenses on leasing of equipment, devices, mechanisms, vehicles. This support was mainly provided for transportation companies delivering passenger services and cargo traffic. 29 small and medium sized enterprises received the budget finances which amounted to 37,5 mln, rubles. These companies include OJSC “Fintechservice”, OJSC “Smoltransavto”, OJSC “Erudit”, OJSC “Vyazma-Brusit”;

- It was the first time when innovative companies received partial reimbursement of expenses on the purchase of machines and equipment necessary for technological innovations or purchase of new technologies and other expenses on innovations. The total volume of subsidies amounted to 30 mln. rubles, 6 innovative companies received the support due to this subsidy: Llc “NPO Yavir”, Llc “NPP Basistroy”, Llc “Vorga Steklokomposit”.

- There was further support of the companies who had already received some form of subsidies:

- to reimburse the interest payments on credits for investment purposes in the real sector of economy. 4 small and medium sized enterprises received support which amounted to 2,75 mln. rubles. These companies include OJSC «Rosigrushka», Individul entrepreneur Nozikov Dmitriy Mikhailovich, Llc “Smolensk Niva”, Individual entrepreneur Romanishin Dmitry Aleksandrovich.

- the reimbursement of the technological connection to power lines. 7 small and medium sized enterprises specializing in the agricultural production, meat and meat products manufacturing, steam and hot water production received 5 mln rubles, among them there is the peasant farm enterprise Vasilyeva Irina Kazemirovna, Llc “Akruks”, the peasant farm enterprise “Dronovo”.

A number of measures were taken in 2013 to create the favourable image of the Smolensk Region. These measures include the presentation of the economic and investment potential of the Smolensk Region in Germany (Berlin). The delegation of the Smolensk Region headed by the Governor of the Smolensk Region participated in a number of meetings with the representatives of the German business, the participants discussed the issues of cooperation and promotion of the German business in the region.

The Day of the Smolensk Region economy was arranged during the visit, it included 5 round table discussions on transport and logistics, development of small and medium sized enterprises, agriculture and the agricultural complex, electric power and utilities, medicine, public health and medical equipment.

One of the measures included the creation of the Investment portal of the Smolensk Region (www.smolinvest.com), which helps to encourage potential investors to implement investment projects in the Smolensk Region. The web portal is being improved and actively promoted on the Internet. This Internet resource creates the visual image of the investment potential of the Smolensk Region, its infrastructure, potential investment spheres, collection and efficient processing of investors applications.

Besides, there is also the Investment map of the Smolensk Region (invest.admin smolensk.ru), an open data base which contains the visual information on the investment potential of the region, its geographical, socio-economic location, available investment sites of the Smolensk Region (state and private) located on the geographical map with their main characteristics and investment passports of the municipal entities of the Smolensk Region. This resource helps potential investors to select the land plots for the implementation of their investment projects.

Presentation materials of the Smolensk Region are being actively posted on Internet sites of trade missions of the Russian Federation. At present the presentations of the investment potential of the Smolensk Region are available on sites of the RF trade missions in Austria, Germany, Italy, France, Switzerland and on the site of Russia-Germany Chamber of Commerce.

The European Information and Consulting Centre created in 2013 on the basis of Smolensk Chamber of Commerce provides information and consultations for small and medium sized enterprises trying to enter the international markets. The help implies establishment of business contacts, market development, participation of exporters in international exhibitions and seminars. All services provided by the Centre are free of charge.

The annual Governor’s message of 2013 touched upon the main aspects of the favourable investment climate in the Smolensk Region. The present report also analyses the results of the implementation of all the measures mentioned above. It has become a part of a consecutive report on how executive bodies of Subjects of the Russian Federation meet the standard requirements in the sphere of favorable investment climate. The following measures taken in 2013 can be treated as the most significant ones: the beginning of work on the Investment strategy of the Smolensk Region; the approved plan of creation of investment and transportation facilities, power and social infrastructure of the Smolensk Region; waivers to the regional law “About state support of investment activity in the Smolensk Region”; new approaches to support of companies in the region; enactment of the new regional law “About the investment fund of the Smolensk Region”; the acceptance of the new state program “Economic development of the Smolensk Region including the creation of the favourable business and investment climate for 2014-2016”, the evaluation procedure of the stimulating effect of the regional regulations concerning the implementation of business and investment activity.

In 2014 the coordination of work between the Regional Administration, federal and sectoral executive bodies of the Smolensk Region and municipalities will become one of the main priorities with the favourable investment climate in the Smolensk Region being the main goal of this cooperation:

- the work and authorization of the Investment strategy of the Smolensk Region, which will state the main investment tendencies in the region, including the growth zones for the creation of the necessary transportation, power and social infrastructure required for production and other facilities (technical and economic zones, industrial zones, industrial parks, technological parks, etc.) The strategy will become a new mechanism which is fully adapted to the present economic situation in the region and in the country and it will be aimed at the implementation of the most significant tasks, being an actual supplement to the previously accepted Strategy of socio-economic development of the Smolensk Region upto 2020.

- creation of a special organization in the Smolensk Region working with investors;

- media coverage of the investment potential of the region and its attractiveness for investors. In this respect, the region will continue participation in various presentations, forums and conferences. All these events should be supported by regional and central media. The promotion of the Investment portal of the Smolensk Region should become one of the key elements of this policy;

- the improvement of the project management based on the “one stop” principle;

- the plan update of transportation, power and social infrastructure in the Smolensk Region based on the investors' needs;

- introduction of new financial mechanisms for attracting investments and providing support for investors. The main priority is the stimulation of investment processes in the region aimed at the development of innovations and new technologies, increase in productivity;

- further measures for creation of favourable investment climate in the municipal entities of the Smolensk Region;

- analysis of investors' needs while training specialists;

- evaluation of the stimulating effect of the regulations of the Smolensk Region in the sphere of business and investment activity;

- creation of the industrial zone “Roslavlskaya” in the Roslavl District of the Smolensk Region, which will allow to reduce the period of land plots granting and their connection to engineering infrastructure;

- creation of the industrial park “Safonovo” on the basis of the composite cluster OJSC “Avangard” in Safonovo.

In conclusion it is necessary to mention that there are no unimportant details while working with investors. Real success in investment, increase of investment attractiveness and competitiveness of the region depend to a greater extent on the consistent and initiative work of federal, regional and municipal bodies. Only the complex analysis of the situation can serve as a solid ground for the development of the investment policy in the region in 2014 and in the nearest future. As a result of such work we should create a new system of interaction with investors and provide the most favourable conditions for business development in the Smolensk Region.