19 April 2003, 13:24
Joint business in Ingush Republic
The government of Ingushetia is constantly trying to attract foreign investors, including by creation of joint ventures. Per 1994 there was one joint venture with Yugoslavian corporation - company "Keramos". It constructed brickworks in the village Nesterovskaya that produces high quality brick since 1998 (18 million pieces per year).
In the course of negotiations of R. Aushev with the representatives of the Turkish civil engineering company "Summa" a contract on construction of objects in Magas was concluded (May, 1998). The contract is concluded for 4 years, construction will be performed by 300 Turkish and 300 Ingush builders. The Turkish party grants Ingushetia a credit of 80 million USD at the rate of 10% p.a.
In May 1998 the president of Ingushetia and CEO of American oil company "Pacific Petroleum LLC" K. Kottman concluded an agreement for joint development of oil fields in Ingush Republic. Pursuant to the agreement 15% of the shares of new joint venture belong to Ingushetia.
Measures are taken to create privileged conditions encouraging the growth of financial investments in the economy of Ingush Republic. The first and the only offshore centre on the territory of Russia is operating - International Business Centre "Ingushetia". It has established a moderate level of the minimal capital for international companies. The registration and annual fees are fixed - 700 and 400 USD respectively, irrespective of the size of business operations of the companies. Exemption from Russian taxes, except for the registration and annual fees, as well as application of principles of currency autonomy, anonymity of the owners and confidentiality of operations create actual advantage in business activity in the territory Ingushetia for foreign companies.
Privileged position for investors was established by the Law on investment activity in Ingush Republic. The constitution and laws of Ingush Republic provide space for activity of domestic and foreign companies, development of business and entrepreneurship.
Source: I.G. Kosikov, L.S. Kosikova. North Caucasia: Social and Economic Reference Book
