The head of the Ministry of Economic Development reminded that one of the strategic tasks of the republic was economic self-sufficiency. For this, it is necessary, among other things, to build up investment potential. At the beginning of 2017, the share of investments in the economy was 8.3%, stagnation of industrial processes and a sharp drop in household incomes were noted. “Then it was not clear whether there was an opportunity for development, yet we started working on generating investment potential,” Sergey Obolonik said.
We started by creating a new, more effective investment law. At the level of the law, risks were minimized and tax preferences were fixed for potential investors. Taking into account objective inertial processes, three investors came to Pridnestrovie during the year. Ten more projects are under development that can give the republic two thousand new jobs, Sergey Obolonik said.
Investment spending by the state increased significantly. A large-scale investment project was a capital investment program. Last year, funds allocated for improving and restoring infrastructure amounted to 1.2% of GDP. In 2019, this is already 1.4%. The implementation of the capital investment program contributed to the revitalization of the construction industry. 300 jobs were created. 20% of investments are returned in the form of taxes to the budget. “This is an example of the effective work of the state investment institution,” Sergey Obolonik said.
According to him, the system of preferential loans through the State Reserve Fund works effectively too. 19 agricultural and 14 industrial enterprises received loans worth $ 13 million. Thanks to the state subsidy program, loans cost economic agents 3-4%.
In the first six months of 2019, investment growth was 29%. The Minister of Economic Development noted that it was important that about 30% of investments accounted for the agricultural sector.
Sergey Obolonik is also confident that Pridnestrovie could become an effective channel for trade-technological interaction between the Russian Federation, the CIS and the countries of the European Union.
“Our enterprises have accumulated enough experience to compete in these markets. We urge our potential investors to join. Come to Pridnestrovie. It all really works,” the Deputy Prime Minister said.
Sergey Obolonik noted that in the near future, the priority areas of investment policy would be diversification of the economy, focus on innovative technologies, and the formation of a favorable investment climate.
