The Government of Sverdlovsk Region is constantly working on promotion of the regions image of a territory with favourable investment climate, the most important part of which is foundation of market infrastructure institutions.
Due to the Government’s efforts, Sverdlovsk Region has seen opening of trade complexes of major international retail networks, such as Ikea, Ashan, Metro, Obi, Ramstor. Modern hotels have been built by major hotel companies Rezidor SAS, Hayat, Akkor.
73 crediting companies are currently functioning in Sverdlovsk Region, including those with outside capital – Raiffeisenbank Austria, KMB-bank, Bank Societe Generale Vostok, Citybank, Home Credit and Finance Bank, Unicredit Bank, International Bank of Azerbaijan, SKB Bank, Uraltransbank, Severnaya Kazna. MICEX-Ural, the network of auditing companies, affiliate of Moscow insurance company CJSC “Insurance company AIG Life”, consulting companies KPMG and Ernst & Young, representative office of the European Bank for Reconstruction and Development are presented in the region as well.
At present over 20 representative offices of foreign states are presented in the region: consulate general of the USA, Great Britain, Germany, Czech Republic, China, France, Hungary, Vietnam and honorary consuls of Austria, Italy, Republic Korea.
Non-diplomatic representative offices have been opened recently: Czech business support agency “Czech Trade”, correspondent office of Italian Institute for Foreign trade (ICE), Netherlands business support organization (NBSO) and others. These organizations assist foreign companies in entering the local market.
Aspects of investment climate:
Stable financial position of the region. Considerable industrial facilities and the level of population welfare higher than the average in Russia have positive impact on credit capacity of the region.
Favourable business climate. The Law “On provision of state support to the subjects of investment activity in Sverdlovsk Region” is in force in the region, aimed at creation of favourable environment for investment in general, and at development and support of outside investments. The chief investor support measures are: granting state guarantees and subsidies from the regional budget, tax exemptions, other measures of state support. According to Forbes Magazine rating “Best cities for doing business in Russia” compiled in 2010, Yekaterinburg – the administrative center of Sverdlovsk Region - is the 3rd best Russian city that offers favourable conditions for doing business.
Vigorous foreign economic activity. Sverdlovsk Region has trade relationships with 125 countries, mainly industrially developed countries. Their share in total turnover makes over 50%.
Developed transport and logistics infrastructure. Yekaterinburg is one of the largest traffic centers of Russia.
Positive dynamics of labour market. Sverdlovsk Region has a vast labour market, with about 2.5 mln people (49.4% of population of the region) being occupied.
Steady industries. Major companies including Nizhny Tagil Iron and Steel Works, Urals Railway Engineering Plant, Ural optical-mechanical plant, UralChimPlast, MedSynthez factory and others, are implementing renovation programs and introduction of innovative technologies. Lately a number of new branches have appeared and the existing industries have been developed in the region. Hi-tech enterprises, technoparks and plants are being built.
Unique research potential. Sverdlovsk Region is one of major scientific and educational centres of Russian Federation. A vast range of research activities is carried out in the region. The leading Russian specialists in Mathematics, Physics, Chemistry, Microbiology, Nanotechnologies work in 138 academic institutes, research institutes, design bureaus.
Rich resource base. Sverdlovsk Region has unique mineral resources: 25 ore-bearing deposits with total capacity of 13.1 bln tons of ore ferrous metal ores, 8 copper mines. 100% of vanadium and 70% of bauxites mined in Russia are extracted in Sverdlovsk Region.
Conformance of the regional capital to global standards of business infrastructure.
A number of business centres, grounds for business negotiations and exhibitions, modern hotels are situated in the city. In 2009, a new Hyatt Regency Yekaterinburg hotel was opened.
Prospects for development of recreation zones. Sverdlovsk Region is rich in mineral springs and natural therapeutic muds, deposits of thermal chloride sodium iodide-bromine waters. There are also several ski resorts in the region, which are especially popular and challenging since they enable active rest.
SEZ “Titanium Valley”
The Government of Sverdlovsk Region is currently forming a Special Economic Zone “Titanium Valley”, which potential residents include United Aircraft Corporation (UAC), Airbus, Boeing, Rolls-Royce, Goodrich, Alstom, Spirit AeroSystems and other companies. During the first five years SEZ residents will be able to obtain tax exemptions for both federal and regional taxes.
According to preliminary plans, SEZ activities will include production of parts made of titanium alloys, machined and subjected to special-purpose processes, parts made of dissimilar metals using non-metallic components. Moreover, it is planned to supply UAC enterprises with mold-casted articles made of titanium, aluminium and manganese alloys, fasteners out of high-strength titanium alloys.
Ratings
In December 2011, Standard & Poor′s promoted long-term credit rating of Sverdlovsk Region from “ВВ” to "BB+", with Stable rating outlook. The agency reported, that rating was promoted due to the region’s financial performance indicators, which proved above their expectations and were caused by the increased budget revenues and some well-balanced control of the expenditure.
Russian Rating Agency “Expert-RA” assigned Sverdlovsk Region investment rating at “1B” (high potential – moderate risk). In 2011 Sverdlovsk Region ranked 5th in investment potential and 27th in investment risk among 83 regions of Russia.
Contact details:
Ministry of Investments and Development of Sverdlovsk Region
First Vice Chairman of the Government of Sverdlovsk Region -
Minister of Investments and Development of Sverdlovsk Region
Mikhail MAKSIMOV
1 Oktyabrskaya Square, Yekaterinburg 620031, Russia
Tel.: +7 (343) 362-1702
Direct mobile phone for investors: +7 (912) 291-4444
Fax: +7 (343) 362-1663
e-mail: maksimov@gov66.ru
Website: http://mir.midural.ru/
Investment Attraction Department, Ministry of Investments and Development of Sverdlovsk Region
Head of Department - Konstantin CHIRKOV
1 Oktyabrskaya Square,Yekaterinburg 620031, Russia
Tel.: +7 (343) 362-1681
Fax: +7 (343) 362-1663
e-mail: chirkov@gov66.ru
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