Kaliningrad calling

Nearly a hundred Russian SMEs accompanied by the acting Deputy Governor of the Kaliningrad Oblast, Mikhail Plyukhin, have come to Poland to attract Polish companies to invest in the region and start cooperation with Russian companies. Representatives of the administration presented regional investment projects, including some formed through public-private partnerships.

"We are interested in investors from the transport and logistics sector, agricultural and food processing industry as well as tourism," says Plyukhin.

He adds that the whole Kaliningrad region is included in a Special Economic Zone, which provides foreign investors with tax breaks and additional support.

"Companies which invest more than $5 [zł.14.2] million do not pay corporate income tax for the first three years and then just 50 percent of the actual tax rate for the next three years. Investing in the Kaliningrad region is actually a trampoline into Russia propper," says Plyukhin.

Plyukhin believes meetings between Polish and Russian entrepreneurs enhance bilateral trade. Polish exports to Russia have been increasing since Poland entered the European Union but growth is lower than in previous years. In the first 11 months of 2006, trade turnover reached $15 (zł.42.7) billion, including exports worth $4.3 (zł.12.3) billion - some 18 percent more than in 2005 - and import of goods worth $11.1 (zł.31.6) billion - 37-percent higher than in the previous year.

"Traditional trade will not save our cooperation," says Nikolai Zakhmatov, Economic Counselor at the Russian Embassy in Poland. "I appeal to Polish businesses - the Russian market is open and is waiting for the bold and courageous," adds Zakhmatov.

Over the last six years, a number of Polish companies have invested almost $300 (zł.855) million in Russia.