July 1998

by Rachel Freeman

A new agency has been created by Russia's Academy of National Economy and the Foreign Investment Center of the Russian Ministry of Finance to help foreign companies and Russian regional governments work together more effectively. The new agency, the Strategic Initiatives Interregional Fund, was created based on recommendations from the U.S. Government Regional Investment Initiative program in Novgorod, the World Bank, and the European Union's TACIS program. It will provide services to foreign and domestic companies investing in Russia, as well as assist regional governments in attracting foreign investment. Valerii Trofimov, former vice governor of the Novgorod oblast, will be the fund's president.

Goals

The fund's goals are to:
attract investments to the Russian economy;
develop private-enterprise support infrastructure, programs, projects, and events that promote a favorable investment climate in Russia;
support the establishment and development of business links between Russian regions and foreign enterprises;
provide assistance and consulting to governmental bodies and local authorities.

For foreign companies, the fund will provide information on investment opportunities in Russian regions, represent foreign clients' interests with the government and local authorities, and facilitate relations between the foreign company and local authorities, regulatory and legal bodies; and prepare industrial areas for use by foreign firms.
The fund will help governmental clients draft regional economic and investment programs and consult on the development of regional investment policies and economic reforms. It will also consult on attracting foreign investment, including preparation and implementation of local investment legislation.
The fund will assist Russian enterprises with preparing for investments, including the drafting of business plans for investment according to international standards. Russian enterprise can turn to the fund for advice on restructuring its finances and introducing international accounting standards. For more information, contact the Strategic Initiatives Interregional Fund, at: 7 (8162) 131-996 , or 7 (8162) 132-039 (fax), or by e-mail at arpin@telecom.nov.ru.
Rachel Freeman works for the State Department in Novgorod.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)