Translartion. Region: Russians Fedetion –
Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.
Deputy Prime Minister Alexander Novak held a meeting at the Government Coordination Center on improving the investment climate in the constituent entities of the Russian Federation that are part of the North Caucasus Federal District. The meeting was attended by Minister of Economic Development Maxim Reshetnikov, Minister of Construction and Housing and Utilities Irek Fayzullin, Minister of Energy Sergey Tsivilev, representatives of federal executive bodies, heads and representatives of constituent entities that are part of the North Caucasus Federal District, representatives of development institutions, investment banks, as well as PJSC Gazprom, OOO Gazprom Mezhregiongaz, PJSC Rosseti, JSC Kavkaz.RF, JSC Rosagroleasing, etc.
“One of the tasks set by the President is to achieve the national goal of a sustainable, dynamic economy. A national project has been formed, the goals of which also include ensuring investment growth by 60% by 2030. Of course, the regions will play a decisive role in solving this problem: the quality of work with businesses, the effectiveness of investments and the speed of project implementation depend on them. Let me remind you that, based on the results of last year, very good results were achieved in terms of investment growth rates – plus 7.4%, in 2023 the growth was 9.8%. In total, this is almost 20% of accumulated growth,” said Alexander Novak, opening the meeting.
The Deputy Prime Minister emphasized the significant role of investment activity in the North Caucasus in achieving the national goal of investment growth. “The Federal District demonstrates historical leadership in core non-resource industries, including light industry and the agricultural sector. The infrastructure and transport and logistics potential of the district serve as the basis for reorienting the country’s foreign economic activity from the West to the South. In the North Caucasus Federal District, as in other regions of Russia, private investment plays a key role – it should become the main driver of growth. The priority task is to create favorable conditions through various formats of investor support, including risk sharing, access to long-term money and improvement of the administrative and legal environment,” said the Deputy Prime Minister.
He named three main areas of work in the North Caucasus Federal District.
The first is the creation of institutional conditions at the local level by introducing a regional investment standard. This work needs to be expanded from the federal and regional to municipal levels. The next stage should be a systemic restart of work to improve the investment climate. To this end, on the instructions of the President, the Ministry of Economic Development, together with the Agency for Strategic Initiatives, is forming a national business model.
The second direction is related to the replication and fine-tuning of federal support instruments. The project financing factory, mechanisms of agreements on the protection and encouragement of capital investments are in demand. An important instrument for attracting investment to the regions are special economic zones and PPP mechanisms, infrastructure instruments and targeted support measures.
The third block of work should be aimed at increasing the investment attractiveness of the subjects of the North Caucasus Federal District – solving issues related to the specifics of the regions. In this direction, it is necessary to solve the problems of increasing the activity of credit institutions, as well as trust in investors implementing projects in the Caucasus. Regions need to work more actively to bring business out of the shadows.
Minister of Economic Development Maxim Reshetnikov and Minister of Energy Sergey Tsivilev reported on the achievements in the field of breakthrough investment projects in the Caucasus and on the progress of the implementation of programs for the modernization of the energy infrastructure of the North Caucasus Federal District. In order to ensure sufficient power supply capacity for the population and industry, the task was set to combat illegal cryptocurrency mining in the region.
According to the Minister of Construction and Housing and Utilities Irek Faizullin, the collection of payments for housing and utilities services in the North Caucasus Federal District remains low: in a number of regions it does not exceed 43%. He also paid special attention to the problems of accidents in heating networks, the need to update the water disposal infrastructure and compliance with the deadlines and quality of construction of infrastructure facilities in the housing and utilities sector, etc.
Following the meeting, Alexander Novak instructed the authorities of the North Caucasus Federal District regions to actively engage in targeted work with businesses, inform entrepreneurs and SMEs about available opportunities, including new government support measures. The Agency for Strategic Initiatives, together with the Ministry of Economic Development, was instructed to introduce indicators for assessing the use of government support measures in the North Caucasus Federal District, as well as to work out the launch of new programs together with development institutions and investment banks, taking into account the existing experience of applying support measures for breakthrough investment projects.
The Deputy Prime Minister paid special attention to the need to bring the collection rates for energy supply, gas and housing and communal services to the level of the Russian average. To this end, he instructed to implement the best available practices and tools for improving payment discipline used in the leading regions of Russia, including those subjects of the North Caucasus Federal District where the collection rate exceeds 98%. The regions should exchange information with each other on the use of such practices. Gazprom, together with regional authorities, was instructed to consolidate abandoned networks in order to minimize gas losses in them, and to monitor work to prevent emergency situations. Rosseti will have to analyze the implementation of the Rosseti North Caucasus program of measures to reduce losses in power grids, as well as analyze their investment program to determine measures to develop regional energy systems.
At the end of the meeting, Alexander Novak invited representatives of federal and regional executive authorities, as well as representatives of development institutions, banks and businesses to take part in the Caucasus Investment Forum, which will be held in the city of Mineralnye Vody in Stavropol Krai on May 25–27. The Deputy Prime Minister called the forum an important discussion platform that helps increase the investment attractiveness of the region. “Last year, 100 agreements worth more than 106 billion rubles were signed at the forum, including 7 agreements with foreign companies. Therefore, I count on your active participation in the forum, as well as companies and partners from your regions,” said Alexander Novak.
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