Penza Region is situated in the European part of Russia, 650 kilometers to the south-east of Moscow.
Total area: 43.3 thousand square kilometers.

Territory: west to east - 330 kilometers, north to south - 204 kilometers. 
Region’s center: Penza. Population – 506.3 thousand people (on January 1, 2010)
Climate: the temperate continental climate, monthly average temperature fluctuates from - 13.3 °C in January to + 20.5 °C in July with min. -47 and max. +42.
Time zone: Greenwich Time +3.00 (Moscow Time).
Penza Region is situated mainly in the forest-steppe zone. Forest and steppe zones appear partly in the north-west and in the south correspondingly. Black earth is spread in the meadow-steppe areas. The cultivated area comes to about 2.5 million hectares.
The region’s population is 1.373.2 thousand people (on January 1, 2010) represented by almost 100 nations and nationalities.

Culture

Penza Region numbers approximately 1.500 items possessing historical, artistic and cultural value. Some of them (over 400) are registered on the state books as historical and cultural monuments and about 46 are of federal importance.
There are 180 monuments in Penza, two are archeological, 79 are historical, 83 - architectural and town-planning monuments and 16 are arts based. In the districts monuments number 208 including 21 archeological, 61 historical, 113 architectural and town-planning monuments and 13 are art. Moreover according to the archaeologists’ surveys there are 802 monuments characterized as archaeological heritage objects in Penza Region.
Religious objects take an important place in the list of cultural heritage items. Six of 65 cathedrals are of state importance including the functioning Troitse-Skanov Cloister.
15 cities and villages preserved historic city planning, valuable ensembles and complexes, historical and cultural monuments. They are regarded as historic populated places of Russia.
The most valuable memorial objects are connected with historic events and the lives of outstanding workers in the field of culture, science, art and literature. They are the great writers and poets - M.Y. Lermontov, A.N. Radishchev, V.G. Belinsky, M.N Zagoskin, E.E. Lazhechnikov, M.E. Saltykov-Shchedrin, D.V. Davydov, N.P. Ogaryov, A.I. Kuprin, A.G. Malyshkin. The artists: V.E. Meyerhold, I.I. Mozzhukhin, K.A. Savitsky, A.V. Lentulov. The scientists - V.O. Klyuchevsky, F.I. Buslayev, P.N. Yablochkov. The physicians – N.N. Burdenko, N.F. Filatov, G.A. Zakharyin and statesmen – M.M. Speransky, A.B. Kurakin, S.F. Golitsyn and some other well-known historic persons.
 Penza Region is inseparably linked with biographies of the Russian Generalissimos A.S. Shein (village Sheino, Pachelma District), A.V. Suvorov (village Suvorovo, Lunino District), the Admiral and General-Field Marshal F.A. Golovin, the General-Field Marshal B.P. Sheremetyev, the Admiral and Hero of the Sevastopol defense V.I. Istomin and a number of other famous persons.
The Penza Regional Library named after M.Y. Lermontov is the oldest cultural institution in Penza Region. A.G. Malyshkin, a writer, the stage director V.E. Meyerkhold, the member of the Academy of Painting K.A. Savitsky, the composer A.V. Kastorsky and others visited the library.
Dramatic art has existed for more than two centuries in Penza Province. The Vice-Governor, the poet I.M. Dolgoruky created it. The People’s Theater was established in 1896, and the Drama Theater became its successor and played an important role in Russia’s culture. Penza Region’s Drama Theater named after A.V. Lunacharsky is one of the oldest Russia’s theaters. During the two centuries the theater has been following the famous traditions of Russian Repertoire Theater and at the same time cautiously keeps the rich heritage left by many generations of the best masters of the Penza local dramatic art.
The Penza Region’s Puppet Theater was established in 1942. The theater has acquired great experience of working with children and teenagers for a 60-year period. The Puppet Theater is the place where a child gets acquainted with dramatic art for the first time. Taking into consideration the originality of the spectators’ audience the theater forms its repertoire considering all ages of children from the youngest till schoolchildren. It aims at becoming a faithful companion, an interesting interlocutor, an instructor in the beautiful world of tales and magic.
There are 25 performances in the theater’s repertoire. Penza Region’s Puppet Show Theater’s work is not limited to performances in Penza. It plays in the remotest kindergartens and schools of Penza and the region.
The Penza Circus is the home of the Russian circus. It was founded by the Nikitin brothers on December 25, 1873. Our circus has a glorious 130-year history.

Science

The regional science is represented by six higher educational establishments and seven scientific-research institutes with about 60 doctors of sciences, and over 1100 candidates of sciences.

Education
The system of education in Penza Province began to form on the boundary of the 18th-19th centuries. A project of compulsory teaching of male village population to read and to write was developed in 1770. School regulations were adopted in 1786 and 1803. Religious educational institutions: the theological seminary in Kazan Cloister nearby the town Nizhniy Lomov (1780) and the Penza Theological Seminary (1800) were opened at first.
The Penza Industrial Institute (PII) was opened in 1943 on the basis of the industrial institute evacuated from Odessa. In 1958 the PII was reorganized to the Polytechnic Institute (now the Penza State University). One of its faculties was transformed into an independent higher educational institution – the Penza Construction Engineering Institute (today the Penza State Architectural & Construction University). The Penza Agricultural Institute was opened on the basis of the Forest Technical School in 1951. It received the status of the State Academy in 1995.
The main guidelines of modernization system of pre-school education in the Penza Region are aimed at realizing the following strategic social purposes:

- maintenance of the pre-school educational institutions net and its diversification;
- extension of а variety of pre-school educational services;
- securing equal starting opportunities for the children entering the school.
An important step has been made recently to switch from uniformity to multifarious construction of pre-school educational institutions. There are 377 pre-school educational institutions in the region. 8% of kindergartens are engaged in problems of making the children healthy and physically developed as their foreground task. 10% of them are focused at intellectual-personal and artistic-aesthetic development of children.
The number of children development centers providing the excess of demands of the short term educational standard of pre-school education increased in all lines of children development.
Compensative groups of various types operate on a permanent basis:
speech pathology - 89 groups;
ophthalmic pathology -11 groups;
tuberculosis intoxication - 20 groups;
for children with impairment of musculoskeletal system - 10 groups;
for children with hearing impairment - six groups;
for children with allergic diseases - 10 groups;
for children who are in poor health – 15 groups.
One of the important tasks of pre-school education is to protect and strengthen the health of the children.
The work aims at providing the possibilities helping to strengthen the physical and mental health of the children by physical culture means. Medical rooms, physiotherapy rooms, massage rooms are equipped in many of the kindergartens. Special rooms for physical culture occupation are created in 152 pre-school institutions (42%), 34 kindergartens have swimming pools.
Physical culture corners are equipped in each age group in pre-school educational institutions according to psycho-physiological capabilities of the children. Original equipment, introduction of a flexible routine, vitamin therapy, using a tempering system assist in making the children healthy.
The analysis of the information submitted by education departments allows drawing a conclusion that the number of pupils leaving schools without getting the general secondary education is diminishing.
Out of 100 pupils who left the secondary school 75% continue the study in evening schools, 5.0% - in the basic vocational training institutions, 11% work, 64% of them combine the work and study in evening schools. The main reasons of leaving are – irregular attendance of classes, poor progress. The number of drop-out children under 16 years of age makes up to 60 annually (towns: Penza, Kamenka; districts: Bessonovka, Lopatino, Nikolsk and Sosnovoborsk).
Within the framework of realization of the regional education development program and the program of the Ministry of Education on realization of the Russian education modernization Conception until 2010 the net of institutions of additional education existing and open to general use is developed.
Over 67 thousand (more than 50%) schoolchildren are busy with art and technical creative work, tourist activity, study of local lore, ecology and biology, sport and research work according to their wishes, interests, possibilities in 84 additional education institutions (39 houses and centers of children’s and youthful creative work, 28 sport schools, eight young technicians stations, five young tourists stations, three young naturalists stations, etc.) and in ab. 5000 associations.
There are over six thousand school associations of additional education and up to 105 thousand pupils are engaged there.
Today the primary professional education (PPE) in the Penza region is available in 32 PPE institutions. There are over 12.000 pupils studying there.

Ten PPE institutions have the status of a lyceum.

32 PPE institutions include:
-three institutions (two lyceums and one specialized school) financed from the federal budget;
-two institutions (one lyceums and one specialized school) belonging to the Penza state technological academy (federal budget);
-27 institutions (7 lyceums and specialized schools) financed from the Penza regional budget.
Besides there are two professional specialized schools belonging to the Federal service of RF punishment execution on the territory of Penza Region.
The training of workers and specialists in primary professional education institutions is carried out in 78 integrated professions. Each of them includes two-four specialties for all branches of economy.
The higher professional education is available in six state higher professional education institutions, in 13 branches and in 48 representative offices of state and non-state universities & colleges.
There are four branches and 46 representative offices of state and non-state colleges in the towns and districts of the region.
Training specialists getting higher professional education can be carried out in all directions and specialties needed for economy and the social sphere of the region (more than 180 specialties). 10 new specialties of higher professional education have been opened during the last three years.
The index of quantity of students of higher professional education institutions per 10 thousand people makes up 460 people.

NATURAL RESOURCES

The total area of forests in Penza Region is over 1 mln. hectares (22% of the region’s territory). The area of forest fund’s lands is about 884 thousand hectares and over 55% belong to protective woods and 45% - to the exploitation ones. Only 0.2% belongs to other forest categories. Some broad-leaved and coniferous breeds prevail which are typical for Middle Russia.
The total store of wood is over 138 mln. cub. m.
The water resources of Penza Region are made of water currents, waters stored in lakes, ponds and reservoirs, and ground waters.
Non-salted underground waters are used for supplying Penza (partially) and such towns as Kuznetsk, Serdobsk, Kamenka and Nizhny Lomov, all district centers.
On January 1, 2010 nine deposits of non-salted waters at 18 plots were discovered and confirmed.

By the degree of provision with drinking water Penza Region belongs to the reliably provided regions.
Mineral waters of the region created the basis for organizing sanatorium-resort treatment. As per January 1, 2010 up to nine deposit plots of mineral and salted waters were discovered and confirmed on the territory of Penza Region.
All those plots, except for “SURSKOYE” deposit, are in the distributed fund. The exploitation stores of mineral waters and salted waters on the region’s territory were taken into account as 1373 cub. m per day.
Mineral balneology underground waters are represented with salted waters from the found exploitation holes with the depths of 345-860 m (72-78 m in Penza) at seven discovered plots out of nine ones.
A deposit of hydro-carbon calcium waters like “NAFTUSYA” was revealed in Kuznetsk District in 1995 at the depth of 86-115 m. Such mineral waters are used for curing a great number of inner corporal diseases and the skeleton-moving system.
Penza Region does not belong to the Russian regions with a highly-developed raw materials industry. There are few mineral resources on its territory. Nonetheless, some deposits of fuel-energy raw materials were found on its territory. Some hard mineral resources are used, or can be used in construction, as mineral fertilizers in agriculture, as technological raw materials in industry.
On the territory of Penza Region there are:
1. Non-ore mineral resources, such as construction sands, brick-tile, ceramics & hard-melting clays, materials for producing construction stone, for producing cement and carbons, mineral pigments for producing mineral paints, diatomite, forming & glass sands, phosphoresces;
2. Fuel-energy resources, such as oil and peat;
3. Non-traditional mineral resources: ore metallic mineral resources – titan & zirconium rabble, glauconitic sands and ceolite minerals.
The mineral basis of Penza Region consists, mainly, from raw materials for the building industry.
The land resources make the major richness of the region. Black-earth soils cover 63.3% of the region’s area. Most of the territory is occupied with hydro-oxide black-earth soils, which were formed under cover of meadow-steppe greenery. They are placed on even relief elements (plains and even slopes). There are some sturdy black-earth soils with a fertile level of 80-100 cm. natural greenery has been preserved on 1/3 of the region’s area. The meadow-steppe lands in the north & north-east of the region change to the steppe lands in the south of it.
Animals and fish resources of Penza Region are rather multifarious. On the territory of the region there are 316 types of vertebrates, including 10 of amphibians, 8 of reptiles, 250 of birds (most of them are migratory ones), and 73 of mammals. Up to 106 wild animals are in the Red Book of the region, including 2 of amphibians, 2 of reptiles, 78 of birds, and 13 of mammals. Up to 48 types of fish inhabit the region’s lakes, ponds & rivers. In the biggest Sura Reservoir there are up to 33 various fishes.
The hunting fund of the region has over 4 mln hectares of hunting plots, up to 1.3 mln hectares are for general use. On the whole there are 77 types of animals (mammals & birds) for hunting on the territory of the region. The game animals are represented with over 30 mammals. On the territory of the region five state zoological reserves of regional importance were established. They cover the total area of 30.5 thousand hectares and perform the function of preserving rare wild animals and birds recorded in the Red Book of the Russian Federation.

Ratio of the Population
Urban population – about 67% of the whole population
Rural population – over 33% of the whole population

Labor Potential
Over 722 thousand people (52.7% of the whole population in January, 2010)

Market Infrastructure
In Penza Region there are two regional and 32 affiliates of commercial banks, 18 insurance companies, nine leasing companies, 18 auditing organizations, the Penza Regional Chamber of Commerce & Industry.

Structure of the GRP
The leading branches giving the main volume of the gross regional product (GRP) are industry, agriculture, transport and trade. They create nearly 70% of the gross regional product.
The growth of GRP (149.2 billion rubles in 2009 according to the latest estimation, 102.8% to that of 2008) was achieved due to the increase of volume of commercial production and agriculture, the increase of retail trade turnover and volume of services delivered to the population.

Transport Infrastructure 

A developed transport infrastructure provides quick and reliable delivery of raw stock and fuel to Penza Region (interactive map of Penza Region)
Railroads are one of the most important means of transport which enables to deliver cargos to remote parts. Railroad routes connect Penza Region with all other Russian regions. The total length of railroads in Penza Region makes 828 km. Penza-1, Penza-2, Penza-3, Penza-4, Kuznetsk, Chaadaevka, Serdobsk, Pachelma, Kolyshley, Belinskaya are the train stations of federal significance. The most important federal railroads: Kuibyshevskaya and Yugovostochnaya cross the region.
Penza Region holds the first place in the country as far as the proportion of hard-surface roads is concerned.
Penza Region is situated on the crossroads of important automobiles routes running to the North-South and East-West. The main federal highways Moscow – Chelyabinsk, Volgograd – Nizhniy Novgorod, Penza – Tambov cross Penza. Federal route M-5 crosses the northern part of Penza. There is a direct exit to Route M-5 from Penza. One can reach any part of the region by car. The total length of highways in Penza Region is over 9200 km.
The further development of the transport system is the main task of the local Government. During the last five years about 1000 km of highways have been built. It makes over 10% of all highways’ construction volume in Russia.
The oil pipeline “Druzhba” crosses the territory of the region. Through the pipeline Russian oil is transported to the countries of the CIS and Europe. The pipeline Samara – Nizhniy Novgorod also crosses the territory of the region. The total length of the natural gas pipelines crossing the territory of Penza Region is 1.269 km.
The M-5 federal route connects Penza Region with Syzran cargo port on the Volga (247 km from Penza) and Kuibyshevskaya railroad – with Samara port (251 km). The main river ports are in Samara (450 km from Penza), Kazan (570 km from Penza), Nizhny Novgorod (420 km from Penza)
Penza Airport is fifteen minutes by car from the downtown. It takes one hour 25 min to fly to Moscow, three hours five min – to St. Petersburg, three hours 10 min - to Sochi.

Communication

Telephone and TV communication
All modern telephone and telecommunication services of x DSL, SDN, DECT standards are available in Penza Region. The length of optical fiber cables is over 800 km.
Post service
International post services such as EMS and DHL are available in Penza Region. The Russian international post service is the national post express operator which is responsible for express post delivery in Russia.
Cellular communication GSM-900/1800 is available in the region. GPRS and EDGE enable the mobile internet access.
The following communication services are available in the region: local and intra zone telephone connection, long distance and international phone calls, telegraph, data transfer, the Internet access, ADSL services, digital channels leasing, ISDN (video telephone, video conferences) and IP-telephone connection.

Industry

During ten months of 2010 the Industrial Index in the region was 110.2%. 
Industry is the leading branch in the economic structure of Penza Region. It influences its social and economic status. Industry gives about a quarter of the volume of its gross product.

Many local enterprises are the leaders in modern branches of the Russian economy. They have international quality standard certificates.
The most important kinds of mechanical engineering production are: equipment for chemical, oil and gas industries, diesels, compressors, special automobiles, gas filling stations, agricultural machines.
Instrument making enterprises design and produce items for radio electronics, communication devices, computers, automated control systems and other high tech devices.
The biggest Russian manufacturers of medicaments, high quality technical fabrics, and wood processing products are located in Penza Region.

Agro-Industrial Complex

The agro-industrial complex of Penza Region comprises some industrial branches which successfully cope with processing and producing agricultural products as well as selling them to consumers. There are about 500 agricultural enterprises and over 2.770 private farms in Penza Region. More than 23600 people work on their private-owned farms. The geographical location of Penza Region (forest-steppe) determines its natural–industrial zones, there are six of them: 
I: cereals–beetroot growing and swine breeding zone;
II: cereals–beetroot growing and poultry farming zone;
III: hemp growing and meat and milk animal husbandry;
IV: vegetables growing and dairy farming zone;
V: meat and milk animal husbandry, potatoes and sunflowers growing zone;
VI: meat and milk animal husbandry and potatoes growing zone.
The no-frost period lasts from 127 to 139 days.
Over 2.500.000 hectares of land are cultivated in Penza Region. Natural and climatic conditions allow the regional agriculture to specialize in growing cereals, sunflowers, sugar beet, in cattle and swine breeding, poultry farming, dairy farming and eggs production.
Agricultural manufacturers grow winter crops and spring wheat (bread-grain and fodder grain); brewing and forage barley, oats, cereals, sugar beet, sunflowers, vegetables, hemp, flax and other crops.
Vegetable growing is concentrated in the suburban zone of large cities of the region: in Penza, Bessonovka, Kuznetsk, Shemysheika Districts. The average crop capacity of vegetables is 153 c/hectare. The total vegetables yield has been 139.400 tons. More than 36.144 hectares of agricultural lands are occupied with potatoes. 426.500 tons of potatoes were gathered in the region last year.

Cattle-breeding is one of the leading branches of the regional agriculture. The main activities are dairy and meat cattle-breeding, as well as pig-breeding and poultry-farming.
More than a half of the volume of the agricultural production is produced by private farms. They enjoy great privileges in obtaining big credits and subsidies.
The main breed of dairy cattle in Penza Region is a black and parti-colored breed of cows. Some farmers have a Simmental breed of cows. In dairy farming a program of creating high productive dairy herd is being carried out. A net of pedigree cattle reproductive centers is becoming wider (during the last three years seven new centers have been opened), pedigree cattle are being brought into the region, and forage reserves are being improved.
A certain role in the agricultural production is played by private small farms. Farmers together with private owners possess 8% of land in the region. They produce about 15% of grain crops, about 16% of sugar beet, over 20% of sunflower seeds, 65% of milk, over 80% of vegetables and potatoes, about 40% of meat and 45% of eggs of the total production amount. 30 grain-elevators and processing plants deal with buying, storing and processing grain. They have the capacity for maximum one million 500 thousand tons of grain storage. 75 grain dryers have the capacity more than 2.2 thousand grain tons per hour.
The food processing branch includes 12 food processing plants, a confectionary and a macaroni producing plant, a yeast producing factory, a vegetable oil production plant, four breweries, bread-baking plants in the cities and towns of the region. Food processing plants produce annually more than 86 thousand tons of flour, three thousand tons of cereals, about 10 thousand tons of pasta products, 30 thousand tons of confectionery, 63 tons of vegetable oil.
In the dairy branch there are more than 30 milk processing plants, including 26 creameries.
Three meat–processing plants operate in the region. The largest and the most modern is the “Meat & Poultry-Processing Plant Penzensky” J.-S. Co.
Agrochemical service is provided by enterprises included into the amalgamation “Penzaagrokhimiya”, they deal with organic and mineral fertilizer application, liming of soils and plants protection.
 Training of specialists for the agricultural complex is performed by the Penza State Agricultural Academy, the Penza Agrarian College, the Penza Institute for Advanced Training, the Spassk Agrarian College, the Kuznetsk Zoo & Veterinary Technical School, the Serdobsk Agrarian College, the Mokshan Agrarian College and 18 secondary professional schools.

Economy in General

At present Penza Region is an industrial and agrarian area of the country. Its convenient geographical location, proximity to the large industrial centers, political stability, favorable legislative, taxation and investment climate, significant industrial potential, powerful base of the construction industry, large resources of agriculture, developed transport infrastructure and traditionally high-skilled specialists provide wide opportunities for the regional economy development.
On January 1, 2010 about 24 thousand enterprises and organizations operated in the region. Most of them belong to the small business sector. According to patterns of ownership there are 68.0% of private enterprises among them, 19.0% state (including municipal) enterprises.
Industry is the leading branch of the regional economy, influencing the social and economic status of Penza Region. Industry produces about the fourth part of the gross regional product volume. Many local enterprises are the leading enterprises in their branches in Russia, they obtain international quality certificates.
The main products of the machine-building industry are equipment for chemical, oil and gas branches, diesels, compressors, special vehicles, gas filling stations and agricultural machinery. Enterprises of an instrument–making industry specialize in development and manufacturing goods for radio electronics, communication facilities and equipment, computing machinery and automatic control systems.

The largest manufacturers of medicines have their plants in Penza Region. In the region they also manufacture quality technical cloth, process timber and etc. The following branches are considered efficient from the point of view of the investments: agriculture, food processing, woodworking and pharmaceutics.
Agriculture is the second leading branch in the commodity production of the region. Favorable soil and climatic conditions promote high yields of crops, vegetables, berries and efficient cattle breeding and poultry farming.
The development of small business is considered to be very promising. At present the sector of small business influences the development of the economy greatly. Small businesses constitute up to 45% of the total number of enterprises and organizations operating in the region. There are over 11 thousand small enterprises in Penza Region.
 According to the results of the analysis we can state that the economy of Penza Region is continuing to develop in spite of the continuing crisis. A great attention is paid to the innovation sphere. Over 100 patents were registered in the region during 10 months of 2010 only. Up to 30 business-incubators operate successfully in Penza and about 10 districts of the region already.

Foreign Economic Activities

According to the state statistics of foreign trade the external trade turnover of Penza Region decreased in 2009 to 238.7 million USD (32.1% fall to 2008). 
The cost volume of export in 2009 was 137.1 million USD, and that of import – 101.6 million USD, due to which the foreign trade balance’s Saldo of the region became positive and made 35.5 million USD.
Up to 69 countries were the trade partners of the region in 2009, export shipments were executed to 57 states, and import purchases were performed in 49 states.
According to the customs statistics in January-September, 2010 the external trade turnover of Penza Region exceeded 147.5 mln. USD; it makes 92.6% to the corresponding period of 2009. The export volume has reached 61.0 mln. USD (38.8% fall), the import volume surpassed 86.5 mln. USD (45.2% growth).
The regional export is represented mainly with machinery, wood & its products, metals, chemical industry products and foodstuff. The major counteragents of the region in export are: Kazakhstan, Germany, Ukraine, Azerbaijan, Kirgizia, Uzbekistan and some other countries.
In the structure of the regional import complex machinery, foodstuff, chemical industry products and wood (with its products) prevail. The biggest exporters of their goods to Penza Region are: Brazil, Italy, China, Ukraine, France, Czech Republic and some other countries.
The trade-economic relations of the region with Byelorussia also develop quite successfully in spite of the crisis.

International Investment Projects
Such projects are carried out in the following branches:
forestry-industrial complex;
cellulose-paper industry;
radio-electronic industry;
tool machine-building;
chemical & pharmaceutical industries;
some branches of agriculture (cattle- & pig-farming, growing grain-crops, etc.)

Biggest Investors in the Region
 “Euro-Service” International Trust Co., “Sucden” Group(France), “PRODIMPEX” State Co., “Invest-MV” (the Netherlands), “Trei GmbH” (Germany), “Techno-Cell Décor” Co. (Germany) and some others.

Investment Legislation

On the territory of Penza Region the following forms of investment activity’s state support are presupposed:
1) granting tax priorities and budget credits for investors in order set by the legislation of the Russian Federation and Penza Region;
2) granting investment tax credits for investors in order set by Tax Code of the Russian Federation and other legal acts;
3) freeing investors from rent payments while renting plots on the territory of the Penza Region for carrying out investment activity on rented plots in the part of payments debited into the budget of Penza Region;
4) granting state guarantees of Penza Region for investors in providing loans’ refunding, if they are drawn for fulfillment of investment projects on the territory of Penza Region;
5) non-financial measures of investment activity’s state support;
6) granting priorities for investors while renting real estate objects being in ownership of Penza Region;
7) development and (or) expertise of investment projects initiated by the Government of Penza Region is fulfilled at the expense of state financing sources in order set by the laws of Penza Region, under condition that in Law on the Budget of the region for a fiscal year the assets for such aims were granted;
8) partial compensation for investors of the percent rate on credits drawn for investment projects’ execution in order set by the legal acts of Penza Region, under condition that in Law on the Budget of the region for a fiscal year the assets for such aims were granted;
9) providing organization support for investors in conformity with the acting laws;
10) participation of Penza Region’s state authorities in granting investment projects and goal programs to possible investors, including foreign ones;
11) direct participation of Penza Region’s state authorities in investment activity executed in form of capital installments by means of:
Tax preferences in conformity with the present Law are granted under condition of necessary separate accounting on the operations conducted for implementing investment projects and executing other requirements, presupposed in the present Law and an investment agreement.
The date of the project’s pay-back period ending is considered to be the last day of the month in which the difference between a stored net profit with amortization deductions and a volume of investment expenditure in form of capital investments, not getting beyond the sum mentioned in an investment project becomes positive. In case of executing investment expenditures in foreign currency, the date of the project’s pay-back period’s ending is considered to be the last day of the month in which the difference between a stored net profit with amortization deductions and a volume of investment expenditure calculated in rubles by means of converting foreign currency into rubles by the RF Central Bank’s rate on the date of executing an operation in conformity with the set order of accounting, becomes positive.
Tax privileges are set for a factual term of the project’s pay-back, but not exceeding three years since the moment of putting objects presupposed in an investment project into exploitation.
For obtaining tax stimulation in conformity with the present Law it is necessary to inform local tax bodies (on the place of registration) in a written form of starting the investment project’s implementation with following papers applied:
1) one copy of the investment agreement and the decision of Penza Region’s Legislative Assembly on approving the agreement concerned;
2) an obligation of conducting separate accounting on the operations connected with the project’s execution.
Upon finishing the pay-back period for subjects of investment activity while investing into new enterprises which possess main assets created (bought) for invested money make up not less than 50% from the whole amount of main assets (without reinvested profit), tax priorities may be granted for the period up to three years in a share debited into the budget of Penza Region in accordance with acting legislation.
Tax privileges can be set for the subjects of investment activity mentioned in part 1 of the present article depending on the number of newly created job-places, or on investment volumes in the limit of:
- 50% of the tax privileges maximally stipulated in the present Law, if the quantity of newly created job-places is from 20 to 50, or the amount of investments is equivalent to the sum of 10 to 30 million rubles inclusive (not less than an equal sum in foreign currency by course of the RF Central Bank on the day of signing an investment agreement);
- 75% of the tax privileges maximally stipulated in the present Law, if the quantity of newly created job-places is from 50 to 100, or the amount of investments is equivalent to the sum of 30 to 75 million rubles inclusive (not less than an equal sum in foreign currency by course of the RF Central Bank on the day of signing an investment agreement);
- 100% of the tax privileges maximally stipulated in the present Law, if the quantity of newly created job-places is from 100 and more, or the amount of investments is equivalent to the sum of more than 75 million rubles (not less than an equal sum in foreign currency by course of the RF Central Bank on the day of signing an investment agreement).
The Government of Penza Region in order and under conditions set by Budget Code of the Russian Federation…enjoys the right of granting investors the state guarantees of Penza Region in providing refund of loans drawn for implementing investment projects on the territory of Penza Region.
The period of guarantees’ action cannot exceed three years. A mentioned term is fixed in a final contract on granting a state guarantee signed by the Government of Penza Region and a creditor.
Pawn provision of refunding loans drawn by investors for implementation of investment projects on the territory of Penza Region can be expressed by property, including real estate complexes being in ownership of Penza Region and incorporated in the Pawn Fund of Penza Region.
Submitting objects of real-estate, technical means and other state property of Penza Region to a subject of investment activity is executed by his application on the basis of an investment agreement and in conformity with the Federal legislation and the laws of Penza Region.
Objects of the state property in the region are submitted on paid, refundable and goal basis.
Investors renting the rooms being in ownership of Penza Region with the aim of executing new construction of re-construction of real-estate objects for a period of project-research works, capital construction or re-construction are granted with differentiated rates – up to 80% of a fixed rate (in the part debited into the budget of Penza Region) on rent payments for marked plots, buildings, constructions and other rooms.
The plot on which an object of investment is placed by wish of an investor may become his one based on the rent right with signing a corresponding contract for the period of an investment project’s fulfillment and further – up to 50 years.
While signing objects’ rent contracts being the monuments of history and culture of federal, regional or local importance, border-lines of plots are set by the lines of corresponding protection zones of those monuments according to the acting legislation.
In case of violating the conditions of the investment contract by an investor (namely, of the order and conditions of investing), his rights for a plot are abrogated on the basis and in order stipulated by the land ownership legislation.

Investment Rating of Penza Region
In 2008, 2009 and 2010 (according to Fitch Agency) this rating was “BB” rank (average level of most risks) – higher than in most of 83 regions of the sttate.

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All necessary information on the biggest industrial enterprises, establishments of culture & rest, and the higher educational establishments, etc. can be found at: www.obl.penza.net & www.penza.ru – the official sites of the Government of Penza Region. 
E-mail: forof@obl.penza.net
Inquiries by phones: (+7 8412) 59 57 89, 52 10 23 (Russian, English).