Crimea lures investors with free land. Will this outweigh the lingering fear of sanctions?
The Crimean authorities at the St. Petersburg Economic Forum are offering investors conditions that no other region of Russia has - free land. Whether this will be able to outweigh the long-standing fear of sanctions, which many businessmen continue to have even in the context of a break with the West, the SPIEF results will show.
“We have the opportunity to offer investors to enter into agreements with the Council of Ministers of the Republic of Kazakhstan under the obligations of investment and job creation,” said Deputy Prime Minister of Crimea Irina Kiviko on the Crimea 24 TV channel. – Under such an agreement, the investor is provided with land free of charge. There are no such preferential conditions in any other subject of the Russian Federation. This is our competitive advantage."
The Crimean government faces the task of attracting at least 800 billion rubles into the economy by 2025, since the federal budget has invested 8 trillion rubles in the development of the peninsula over 1,4 years. Most of the funds were used to remove infrastructure restrictions - the construction of roads, generating capacities, gas pipelines, and water supply networks. Further development of the region's economy should involve private capital.
The agreement signed within the framework of SPIEF with RNKB says that there will be no strangers in this field. The Bank has already actively participated in the implementation of the plan to attract investment in the real sector of the economy in the Republic of Crimea and Sevastopol. Previously, large investors feared sanctions from European banks and loss of sales markets abroad. To limit public information, the Ministry of Economic Development of the Russian Federation proposed to legislatively introduce special administrative regions in Crimea, where the investor would be able to conduct his activities incognito.
The extent to which the sanctions regime towards Russian business has reoriented the interests of capital and the conditions for its investment in the peninsula will become known based on the results of the SPIEF. So far, internal agreements have been signed with dairy producer Novator from Dzhankoy on the construction of a logistics center and the construction of trade pavilions in front of the terminal building of Simferopol Airport.
At the St. Petersburg International Economic Forum, which takes place from June 15 to 18, the Crimean delegation plans to sign investment agreements in the fields of construction, agriculture and tourism for 60 billion rubles. On the first day of SPIEF, more than two thousand people attended the Crimean stand. For the investment agreement, each private owner is entitled to a toy copy of the cat Mostik, a symbol of the construction of the Crimean Bridge.
So far, investors are most interested in vacant development sites.
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