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KALUGA REGION LOOKS FORWARD TO CAPITAL INFLOW FROM RUSSIA AND ABROAD - GOVERNOR

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AMSTERDAM, May 18 (RIA Novosti, Andrei Poskakukhin) - The Kaluga Region, in Central Russia, is vitally interested in capital investments, whether from Russia or other countries, regional governor Anatoly Artamonov told RIA Novosti. Artamonov was taking part in a public introduction of his region in the Netherlands.

"The more well-paid job opportunities we can offer, the greater the chance the region's population will have for self-fulfillment, the higher our living standards will rise, and the greater will be regional revenues from companies," said the governor.

The Kaluga Region has major benefits -- proximity to Moscow and a great number of qualified personnel. Numerous local research institutions offer great opportunities for high-technological industrial progress.

"As I see it, the Dutch business community is flexible and thoroughly pragmatic in its partnership policies toward Russia. Dutch-based companies are coping with the Russian market situation better than any other. That's my conclusion from regional experience," the governor went on.

"Apart from high-tech capital investment, the Kaluga Region offers Dutch and other overseas companies such lucrative fields as farming, timber industry, and construction material manufacture."

Rating agencies regard the region among Russia's smallest-hazard areas, with investment attraction steadily increasing, Artamonov said.

He said he did not think overseas companies would come against whatever obstacles to establish themselves in the Kaluga Region. Whatever problems may arise will be easily settled at the regional level, he reassured.

"We often hold conferences with representatives of foreign companies. We wonder what problems they encounter in stepping up their activities, and what we can do for them to settle those problems. Some apply for soft taxation at the initial stage of their work -- and we exempt newly established companies from property taxation. We also partly reduce their profit tax rates."

The Kaluga Region has an area slightly below 30,000 square kilometers, with a population of 1,040,000. "We have ample vacant land plots. We know how fine Dutch farmers are doing, so we invite them to buy land or rent it on a long-term arrangement, and work the plots. Land rents and prices in my region are below Moscow's several ten-fold, and it is far easier to reach an understanding with fiscal and other offices."

The Kaluga Region has another attraction, too -- emergent industrial zones. "We have established one for now, and are setting up another, in the region's north, with an area of 450 hectares. We are investing government money in infrastructure construction in the localities due to implement big investment projects," added the governor.

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