The formation of the investment climate, characterized by the positive dynamics of its main parameters, is one of the fundamental tasks of the regional economy of our country. Creating conditions for attracting domestic and foreign investment provides an increase in socio-economic indicators of the economic system of the region, stimulates the development of various sectors of the economy, has a positive impact on the level of employment and unemployment in the region, forms the resource potential. Currently, most regions have a serious need for investment resources, which are necessary for the growth of economic potential and the creation of a comfortable social environment. Conducting financial and economic activities in the border regions is characterized by the presence of additional opportunities for the development of investment activity and the creation of a stable system of foreign economic relations. The border areas of the Leningrad Region have considerable experience in practical implementation of joint economic cooperation programs. Active attraction of investment resources of neighboring countries in conjunction with the regional policy of strategic development determine the positive parameters of the socio-economic state of the Leningrad Region. One of the successful tools for improving economic efficiency is the creation of a positive investment climate in the region. To generate favorable conditions for forming the investment climate in the border regions, it is necessary to develop an effective management mechanism aimed at increasing the investment attractiveness and improving the ways of organizing economic activities. The article deals with the conditions of formation of the investment climate as a source of sustainable growth of socio-economic development of the border area. The study discusses the specifics of forming a mechanism for managing the investment climate of the border region as a basis for increasing the investment attractiveness, the specific conditions and the possibility of adapting them under the influence of a certain set of factors, offering a mechanism for managing the investment climate in the border regions. Effective organization of economic activity is currently impossible without attracting foreign investment. Due to peculiarities of the geopolitical position, geographical, economic and political characteristics, the border regions have a significant impact on the modern system of international investment relations. The field of foreign economic interests of the states is actively formed in the border areas. The investment climate that has developed in the border region is mainly formed by the state authorities in order to create comfortable conditions, primarily for foreign investors through a set of measures for using the mechanisms of state guarantees to protect foreign investments. It should be noted that today, despite all the prerequisites for development of local self-government in the Russian Federation, the regional and municipal governments of the border areas do not have sufficient authority to address the whole range of issues arising in formation of the regional investment climate.