Investment climate

Karelia is open for investments
Governmental support of investments in the Republic of Karelia increases
International investment projects in the Republic are implemented in forestry, mining and construction materials industries, and other fields. A specific system of support and maintenance of investment projects has been created in Karelia. Investors may gain unique privileges and preferences. Such companies as Rosatom, StoraEnso, Lafarge, Ikea, PKC Group, RUSAL corporation, Severstal have chosen Karelia as a place for doing business.
In 2012 a new law on support of investment activity has been adopted in the Republic. It stipulates a wide range of privileges for investors. 
Forms of governmental support include the following:

  1. Granting to investors tax exemptions on regional taxes in accordance with the tax legislation of the Russian Federation and the Republic of Karelia;
  2. Granting preferences to investors in form of a lowered corporate profit tax in its part which goes to the budget of the Republic of Karelia;
  3. Granting on a competitive basis state guarantees of the Republic of Karelia for investment projects in accordance with the budget legislation of the Russian federation and the Republic of Karelia;
  4. Granting subsidies from the budget of the Republic of Karelia for partial reimbursement of expenses on paying interest on credits obtained for financing investment projects in accordance with the budget legislation of the Russian federation and the Republic of Karelia;
  5. Granting investment tax credit on corporate profit tax by tax rate fixed for directing this tax to the budget of the Republic of Karelia and regional taxes in accordance with the budget legislation of the Russian federation and the Republic of Karelia;
  6. Granting to investors favorable terms of land use and use of other reality laid down by the legislation;
  7. Granting subsidies from the budget of the Republic of Karelia for partial reimbursement of expenses on conducting cadastral work.

At the same time, the stated conditions of the investment agreement will stay in force till their full implementation regardless of possible changes of regulatory acts towards limitation of investors’ rights and deterioration of investment terms. 
Authority – Ministry of economic development of the Republic of Karelia economy@karelia.ru, 8(8142) 79 23 00. 
Website http://kareliainvest.ru