The international ASurgut-Polotsk@ oil pipeline and two major gas pipelines cross Tver Oblast. The oblast is covered by Moscow telecommunications service providers of GSM 800 standard. There are five locally-based banks in Tver Oblast as well as offices of Moscow banks. Tveruniversalbank was rated 57th in the list of 200 Russian banks with largest capital.

INVESTMENT CLIMATE. The Tver Oblast Government is active in searching for opportunities to attract foreign investors. The governor has formed a Governor=s Office for External Economy and Investments that is headed by Edward O. Chovushyan. Mr. Chovushyan launched a glossy periodic publication AInvest-100 International Investment Magazine@ that discusses investment opportunities in the oblast, publishes interviews with Tver business people, and highlights local legislation. The Office for External Economy and Investments is in the process of organizing an International Forum of Technology Brokers AInvestment and Technologies/ Tver-99@ that aims to bring together representatives of local and foreign companies, potential investors, and Russian and foreign government officials. FES International, Inc., a Californian-based company, is assisting the Tver Oblast Administration in the organization of the event. FES International is an official representative of Tver Oblast in matters related to humanitarian aid and economic assistance.

The Tver Oblast Law on ATax Privileges to Investors in Tver Oblast@ is also supportive of foreign investors in region. The profits tax is reduced by 50% for those companies investing in renovation, modernization or creation of new production facilities in Tver Oblast. The profits tax reduction is applicable starting from the date when the first expenditure is made and until the investment is paid back. Although the initial tax reduction period is written to be maximum three years, investment in projects included in the Economic Development Program of Tver Oblast can prolong it up to 10 years. Leasing companies are exempt from paying 90% of profits tax to the regional budget during the first three years and 50% during the two consequent years.

By 1998, 37 companies with foreign investment had been registered in Tver Oblast. Mostly European companies are present in the oblast through established joint ventures, such as two Russian-Bulgarian ventures and a Russian-Italian enterprise. German companies are very active in selling technologies for manufacturing construction materials and equipment to Tver companies (mainly assembling poly-vinil-chlorid windows, reinforced doors, etc.). The German construction company Tver-Osnabryuk, which united 20 enterpreneurs who collectively invested over 1 million DM, built the three star hotel Osnabryuk (accommodates 42 people). Canadian companies are also investing into construction of private houses and assembly of construction parts in the oblast.

FOREIGN TRADE. In 1998, the foreign trade turnover for Tver Oblast was $186.8 million, a 23.6% decrease compared to 1997. Exports from Tver totaled $80 million of which 21% came from machine-building industry, 14% from forestry and wood-processing, and 6% from light industry. Of total exports, 30% went to the other NIS countries.

INDUSTRY SECTORS. Industry in Tver Oblast is represented by the following sectors: electric energy (44% of the total regional production), machine building (22%), food processing (11%), light industry (6%), and wood processing (5%). The other 12% includes printing and publishing, chemical, glassware and earthenware, and construction.