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Dialogue between the Iran delegation and the representatives of Smolensk business and authorities

16.10.2014 Dialogue between the Iran delegation and the representatives of Smolensk business and authorities

The working meeting between the Governor Aleksey Ostrovsky and the Governor of Luristan, the Islamic Republic of Iran, Basovand Hushung  held in the conference hall of the Administration of the Smolensk Region, was followed by the business talk of the Governor of the Smolensk Region, other Russian officials with the delegation of Iran.
Vitaly Zolochevsky, the deputy of the State Russian Duma, Nikolay Kuznetsov and Igor Skobelev, vice-governors of the Smolensk Region represented the Russian party. The Iranian delegation included the Governor of Luristan, Hadi Chakoni Ali, vice-governor for development, business representatives.
The meeting was the result of close cooperation between the Regional Administration and the Liberal Democratic parliamentary party, the plans of their cooperation were adopted by the parties during Vladimir Zhirinovksy, the party leader’s visit to Smolensk in May.
In his opening speech the Governor informed the participants of the intention of the Administration to continue close cooperation with the Iranian businessmen and companies and to create the most favourable conditions for their work in the Smolensk Region. Aleksey Ostrovsky pointed out the favourable geographical location among the competitive characteristics of the region for investors, which makes it one of the most convenient territories for development of logistics and terminals.
The Governor also mentioned another geographical advantage, the highway «Moscow-Minsk» running through its territory. This factor plays a key role in business development. The Administration of the Region considers a number of variants for lightening of taxation for foreign investors during the start up period and other benefits depending on the volume of investment, including land granting and their electrification. These practices have already helped the Administration to raise 58 billion rubles for the regional economy.
The Governor paid special attention to the structure of the processing complex and considerable land resources for agricultural production. These are only some of the factors which make the Smolensk Region attractive for Iranian investors.
During the meeting the Governor touched upon the issue of import substitution. “Under unfair conditions of economic sanctions against the Russian Federation we would like to discuss the possibility of delivering agricultural products from Luristan as we know that this province is famous for its highly developed agricultural production. You produce a wide range of agricultural products, for instance, fruit. We are interested in all these opportunities.”
In his turn, Basovand Hushung mentioned that our regions can successfully cooperate in agricultural and industrial spheres. «We express our readiness for cooperation with Your region»
Later the Iranian delegation had another meeting with manufacturers and entrepreneurs of the Smolensk Region, among those there were farmers, representatives of retail chains, chemical and clothing industries.
Igor Skobelev, vice governor, informed the Iranian colleagues about the significant economic potential of the region, he mentioned that the Administration of the Smolensk Region had already selected 350 investment sites.
The meeting results provide conditions for further development of business cooperation with the Iranian party in the Smolensk Region based on mutual understanding, trust, equality and open dialogue.
As practice shows, attraction of investment depends to a great extent not only on the targeted policy of the federal centre but also on the regional activity.
The meeting resulted in signing of the agreement on cooperation between the two regional Chambers of Commerce.