Project concern: authorities will put investments in the regions under control
The authorities want to introduce monitoring of the investment climate in the regions, Izvestia found out. At the same time, municipalities will have the right to appoint special agents who will work with companies and support projects. The government approved such an initiative, taking into account the necessary improvements. All this will make it possible to attract new funds for the development of territories, as well as partially reduce the dependence of the subjects of the Russian Federation on the budget. Why it is important to maintain the investment climate and what the effect of the measures taken may be — in the Izvestia article.
Investment climate in Russian regions
The Russian Federation wants to expand the regulation of investment activities in the regions. In particular, it is proposed to establish monitoring of how local authorities are working on the investment climate. This was reported to Izvestia by sources familiar with the discussion of the bill. The initiative was approved by the government, but taking into account the necessary improvements, a source in the cabinet told Izvestia. The editorial office also has materials for the meeting of the government commission on legislative activity.
Vladimir Gruzdev, Chairman of the Board of the Russian Bar Association, noted that the draft law introduces a new article that establishes the working procedure of regional structures that attract investors and the approach to creating an investment climate.
"The new article provides for the introduction of monitoring of the implementation of measures aimed at creating favorable conditions for the development of investment activities, and the granting of appropriate powers to government authorities and public associations of entrepreneurs," the expert explained.
According to the document, municipalities will be able to appoint special representatives who will also interact with businesses and support major projects. According to Vladimir Gruzdev, the initiative is comprehensive and is aimed at systemic reform and strengthening investment policy at the regional and municipal levels.
— The initiative is aimed at forming a unified approach to working with investors in the regions and improving the effectiveness of investment policy. The bill establishes modern support tools — investment declarations, investment committees under the governors, specialized agencies for project support, as well as a system for monitoring the region's work with the investment climate and business feedback. These measures will simplify administrative procedures, increase transparency and strengthen the quality of investment management processes," the press service of the Ministry of Energy told Izvestia.
Investments in the first quarter of 2025 increased by 8.7%, but not everywhere the same: some industries show growth of over 29%, others are sagging, said Fyodor Sidorov, a private investor and founder of the School of Practical Investment. System monitoring will allow you to see why capital goes to some regions and bypasses others not because of objective reasons, but because of administrative obstacles or lack of clear work with investors. It is important that local authorities understand that they are being assessed based on a specific inflow of funds into the economy.
The new measures should accelerate the process of attracting investments by three to six months, said Vladimir Chernov, analyst at Freedom Finance Global. According to him, in the coming years after the launch of the initiative, investments in the regions may grow, and the economy will be able to attract financing for local projects more cheaply.
Izvestia sent inquiries to the regions. The press service of the Department of Economic Development and Investment Activities of the Orel region stated that the introduction of system monitoring will provide an objective picture of the state of investment attractiveness, as well as identify strengths and growth areas for each territory. This, in turn, will enable the authorities to make more informed and targeted management decisions focused on the real needs of investors.
Will investment control reduce dependence on the budget
The development of the regions is now heavily dependent on government funding, Vladimir Chernov recalled. Although the subjects are becoming less dependent on subsidies, the problem persists, and attracting private capital can help solve it.
Over the past 15 years, there has been a trend in Russia where some regions have learned how to develop their potential and attract private funds, while others continue to rely on support from the federal government, said Yulia Khandoshko, CEO of the European broker Mind Money. However, in the current conditions, simply "waiting for help" becomes strategically and economically unprofitable, and those regions that are accustomed to relying on support from the center will have to create their own investment infrastructure.
For private investment to grow, comprehensive support from the authorities is needed, but not only through benefits. Predictable rules, access to infrastructure and land, and stable tariffs are important, Vladimir Chernov believes. With effective support and monitoring, private investments can increase significantly in a year or two.
However, it will not be possible to completely reduce dependence on the budget — there are territories that objectively need support, said private investor Fyodor Sidorov. Nevertheless, even such entities will benefit from an increase in private investment. In any case, local authorities should learn how to work with private capital and attract financing not only from the federal government.
— Right now, it's not so much direct subsidies that are especially important, but rather assistance in preparing sites, connecting communications, and training personnel. Monitoring the investment climate will help the authorities understand what really works and what remains on paper. If the initiative is implemented without unnecessary formalism, it will seriously increase the competition of regions for investors, which means it will improve the quality of business conditions throughout the country," the specialist explained.
It is the regional level that ensures the practical implementation of investment projects, creates jobs and a tax base, the press service of the Ministry of Economy noted. The creation of clear and predictable business rules helps to attract capital, develop infrastructure and increase the competitiveness of territories. Therefore, creating favorable conditions for investments is not only an economic issue, but also a strategic direction for the development of territories, the ministry added.
Investments create new capacities, jobs and bring taxes, Vladimir Chernov noted. According to him, for the regions it is also a competition for people and income. A good investment climate reduces the time and cost of launching projects, reduces uncertainty, and facilitates the attraction of bank and partner financing.
Such measures to support the regions are necessary now, but the first priority should be to build sustainable mechanisms of trust and exchange of experience between the regions, Yulia Khandoshko believes. This is the only way to reduce the investment gap and make the country's economy less dependent on the center and more stable from within.
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