Foreign Investments

Since 1988 foreign investments have begun to enter the Khabarovsk Territory in the form of joint ventures and then in the form of foreign enterprises and branch offices of foreign companies as well. Foreign investments continue to increase their importance in the economy of the Khabarovsk Territory. The volume of direct investments is constantly growing, the large projects are put into effect, portfolio investments begin to come into the privatized enterprises, and the projects with the attraction of foreign credit are being implemented. The first international tenders for the right to develop the mineral resources have been established. More than 500 enterprises with foreign investments were established in the Territory, 105 of which are fully owned by foreign investors.

The total volume of registered foreign investments in the economy of the Territory exceeded $120 million. The main spheres of activity for the joint ventures are mining and processing of natural resources, internal and foreign trade, services in the field of transport, communication, hotel and restaurant operation. Some of the joint ventures (Russian-Japan "Vostokmetall", "Vanino-Tairiku" and the Russian-Australian "Amurstal-Ani") are among the leading exporters of the Territory. 'The share of joint ventures is 12% of the total volume of export, in the volume of import - 18%. Enterprises with foreign investments affect the export deliveries of lumber, fish and fish products, scrap and wastes of ferrous and non-ferrous metals, aluminium alloys and different related services. The considerable amount of import goods is delivered into the Territory through the joint ventures, formed with the companies of different countries. Joint ventures import consumer goods, foodstuffs, electronic equipment, transportation facilities, technological equipment and materials for the development of their own production. A considerable portion of the machines and equipment delivered to the Territory is a contribution by foreign investors to joint ventures.

Understanding the importance of the attraction of foreign investments, the Administration of the Khabarovsk Territory and the Territorial Duma attempt to create the most favourable conditions for foreign investors. With this purpose, the following tax privileges concerning the allocation to the Territory's budget are granted in the Territory:

Newly founded joint ventures with a share of foreign investors more than 30%, branches of-foreign companies and companies which wholly belong to foreign investors are exempt from a profit tax for two years in the spheres of production activity and services in the hotel business;

Newly founded enterprises, with a volume of foreign investments more than $5 million directed toward the development of mineral deposits and construction of projects for the transportation system are exempt for three years.

At present, the work is in progress on setting up a concession fund of natural resources to attract foreign investments to the Territory.