Favourable investment environment has been formed in Ryazan Region, and precise procedures for project implementation in various sectors of economy have been developed. The region is one of the leaders in the Central Federal District in terms of rates of Russian and foreign investment growth.
Ryazan Region’s investment climate highlights:
Convenient geographical location: the region lies in the centre of the European part of Russia
Well-developed transport infrastructure includes 4 railroads and 2 federal motorways, main oil and gas product pipelines, terminal, airport, river port
High scientific potential and considerable human capacity. 15 research and design organizations, 20 universities, 41 vocational schools, 28 specialized secondary schools, over 800 comprehensive schools function in the region
Sufficient energy supplies: 4 major heat power stations, including Ryazanskaya GRES, one of the largest power plants in Europe, satisfy the regional demand in energy to the full extent
Reserves of basic constructional materials: limestones, malms, fire-clay and infusible clay, quartz sands, phosphorites, gypsum-bearing rocks, mineral paints, peat, timber
Spare facilities
Low labour cost
The Government of Ryazan Region is working on creation of the regulatory framework, aimed at attraction of investors in the region. In 2009 the Law “On State Support of Investment Activities in Ryazan Region” was passed. The law stipulates the following forms of state support of investment activities in the region:
corporate property tax allowance and reduction of corporate income tax rate in respect to the amount payable to the regional budget
subsidies from the regional budget
granting rent tax allowance in respect to land lots owned by Ryazan Region
information and consultative support of investment activity
Regional authorities grant state guarantees for implementation of investment projects by tender.
A regular collegial body - Investment Board - was established in Ryazan Region to coordinate implementation of the regional investment projects. The Board examines the submitted investment projects and makes final decision on expediency of granting state support using regional budget funds. The Board is also in charge of assigning top-priority status to the projects, which are important for the region’s further development.
The following industries, traditional for Ryazan Region, are considered to be the most promising in terms of investment:
petroleum refining
defence industry
electronics
power engineering
construction materials industry
Two industrial zones are being currently formed and developed in the region:
Industrial production zone is designed for allocation of power-consuming industries is situated in close proximity to Ryazanskaya GRES in the town of Novomichurinsk (Pronsk district). The regional enterprises will be able to consume low-cost electric power directly from Ryazanskaya GRES, bypassing federal and regional grid companies
Innovative industrial zone (around Varskiye settlement) is designed for accommodation of «eco-friendly» hi-tech enterprises. The territory is located in ecologically clean area, on the border with national park Meshchera.
At the moment, both projects are in their development and investment attraction phases.
Industrial Special Economic Zone will be established in Pronsk district of Ryazan Region on 289.3 ha of land. The following guarantees will be granted to SEZ residents:
accelerated depreciation coefficient
single window principle in SEZ administration
construction of engineering infrastructure objects financed from the budget
reduction of income tax rates (to 15,5%), property tax rates (to 0%), land tax rates (to 0%), transport tax rate
free customs zone regime
Over 20 major investment projects are being currently implemented in the region, some of them are carried out in partnership with foreign companies. In 2009 Ryazan Region’s economy received over RUR 54 bln of capital investment, including RUR 9 bln of foreign investment, mainly due to activity of major investors in the industrial sphere.
The launch of float glass manufacturing plant “Guardian Steklo Ryazan” owned by the American corporation “Guardian Industries Corporation”, one of the leading manufacturers of plate glass and special-purpose glass products, is one of examples of successful project implementation in the region. The project’s total investment made EUR 180 mln, over 300 jobs were created. The plant is the largest in Europe, its production capacity is 25 mln sq.m. of glass per year. Government of Ryazan Region lent considerable support to the strategic investor, which included property tax exemption, income tax rate reduction, subsidies from the regional budget for the pay-off period.
Ryazan Region is ready to implement a number of investment projects on a public-private partnership basisin key sectors of economy. A Concept for investment attraction has been developed and is currently being introduced in the region’s housing and utilities sector.
Ratings
In August 2010, Fitch Ratings Agency assigned the following ratings to Ryazan Region: long-term ratings in foreign and national currency at “B+” level; short-term rating in foreign currency at “B” and national long-term rating at “A(rus)” level. Long-term rating outlook is stable.
Russian rating agency “Expert-RA” confirmed the region’s investment rating at “3B1” (Low potential - moderate risk). In 2007-2008, Ryazan Region ranked 6th in “Expert-RA” investment rating of Russian regions and entered top 10 regions with the lowest investment risks.
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