Tag Archives: Leningradskaya Oblast

Industrial parks

Koshcheyev, Sergey. “Ravil Muratov: Why dirty Moscow? Why don’t you build here?” (“Ravil Muratov: Zachem zagryaznyat’ Moskvu, luchshe davayte stroit’ u nas”), BiznesOnline, 3 June 2010. 22 July 2010 http://www.business-gazeta.ru/article/25010/16/.

Article discusses different regions’ systems of industrial parks: Moscow Oblast doesn’t invest a kopek in them, but leaves their construction up to investors; Leningradskaya and Kaluzhskaya Oblasts rent land with infrastructures; and Tatarstan offers ready-to-operate facilities.  This can serve to lessen concerns of entrepreneurs that new niches in markets will disappear before necessary capital is gathered to begin production: this way, the government takes on the obstacles of land registration and re-zoning, often a two-year process.  In Moscow, however, the returns on industrial parks in 2009 reached 5 trillion rubles.  Both the Republic of Tatarstan and Moscow Oblasts have programs for bargain mortgages on residential spaces in these parks.

Land taxes increase 50 times over

“Land taxes increase 50 times over” (“Zemel’niy nalog podorozhaet v 50 raz”), Agentstvo “Kadastrovie Novosti”, 11 September 2009. Federal Cadastre Agency for Real Estate, Media Materials: 14 July 2010 http://r41.kadastr.ru/news/media/1059085/.

Reporting on land tax raises as a result of new Cadastral evaluations.  Land values in Samarskaya Oblast are up 40-60%, in Rostovskaya Oblast they have increased 5 times over, and in Smolensk Oblast they are up 47.7 times.  Rosnedvizhimost’ officers say that tax rates have not yet been adjusted to new market conditions coming after a peak in the land market in late 2007/early 2008.  A managing partner of Miller Samuell Real-Group says these taxes “will simply kill any proprietor and will place a cross on the back of any business.”  In Smolenskaya Oblast, values of land plots under industrial enterprises have increased 47 times, which specialists say will harm production costs, productivity of local industry, profits, and competitiveness.

Problems for other enterprises and administrative bodies have arisen: in Moscow, City Hall is threatening terminating developers’ contracts for residential construction on some 5 million square meters of land that Rosreyester is refusing to register.  The Moscow Oblast Forestry Management has gone against federal recommendations in completing some of its recent land transactions; similar forestry land-use scandals have taken place in Petersburg and Leningradskaya Oblast, as well.

Note: Recent (in action since January 2010) changes to the land tax code are outlined at http://taxpravo.ru/analitika/statya-71574-popravki_po_regionalnyim_i_mestnyim_nalogam_v_2010_godu.