The Investment Guide of the Sverdlovsk Region

1SVERDLOVSK REGION

32

Губернатор Свердловской ОбластиА.С. Мишарин

Дорогие читатели и партнеры!

Позвольте представить вам Свердловскую область – один из наиболее процветающих промышленных регионов современной России. Это мощный научный, интеллектуальный, культурный центр, занимающий лидирующие позиции во многих отраслях экономики и социальной сферы. Металлургия, машиностроение, химическая промышленность, развитый оборонно� промышленный комплекс, энергетика, инновационные производства опре�деляют современный облик региона.Положение на границе континентов Европы и Азии оказывает положитель�ное влияние, прежде всего, на торговлю и туризм. Еще совсем недавно многие жители дальнего зарубежья в большинстве своем знали о нашем крае очень мало: суровый климат, далекий промышленный город. Сегодня Свердловская область открыта всему миру, и заслуженно снискала себе славу одного из наиболее инвестиционно привлекательных регионов России.Город Екатеринбург и его процветающий регион будут развиваться в тече�ние следующих лет как один из важнейших экономических центров в сердце России. В последние несколько лет в области проведена серьёзная работа по качественному преобразованию экономики региона. Так, увеличивается удельный вес высокотехнологичной продукции, повышается уровень подго�товки кадров, происходит техническая и технологическая модернизация производства, широко применяются инновационные технологии, снижается материалоемкость и повышается конкурентоспособность выпускаемой продукции.Значительную часть перспективных направлений развития региона мы планируем реализовать вместе с нашими иностранными партнерами.В Свердловской области создана и совершенствуется инфраструктура сотрудничества с зарубежными странами: налажены торговые отношения с 120 странами мира, установлено прямое авиасообщение со многими круп�нейшими аэропортами по всему миру, установлены тесные партнерские контакты, накоплен значительный опыт реализации совместных проектов.Свердловская область и город Екатеринбург открыты для дальнейшего сотрудничества. Мы всегда рады новым друзьям и надежным, проверенным временем деловым партнерам!

Путеводитель инвестора 1

A WORD OF WELCOME FROM THE GOVERNOR OF SVERDLOVSK REGION

DEAR FRIENDS AND COLLEAGUES!

I am glad to introduce to you Sverdlovsk Region, one of the most rapidly growing and investment attractive regions of the Russian Federation. Currently the main development vector of Sverdlovsk Region is reoriented from the image and priorities of the traditional industrial region towards creation of a new innovative economy based on incoming invest-ments, implementation of breakthrough innovative technologies and improving reputation of intellectual professions.

In the near future, Sverdlovsk Region will grow into a region where the quality of people’s living will be based upon intellectual capital and powerful human potential rather than on resources of raw materials.

We lay special emphasis upon improving of the investment climate. Today in Sverdlovsk Region there are a number of established and successfully functioning dedicated mecha-nisms for business support, i.e.: Development Corporation of the Middle Urals, a special structure for investor relations; Ministry of Investments and Development; the industrial park and the technoparks. Exhibition activities are on the rise. The special economic area Titanium Valley has been put into operation, and a feedback system with the executive authorities has been established in the web - U2020.ru.

In order to improve investment attractiveness of our region, the law on state and private partnership, the law on innovations and a number of other acts of legislation were adopted. A lot of both Russian and foreign companies have already appreciated competitive advan-tages of this territory, and they work actively in Sverdlovsk Region. During the last 2 years alone, such giants as Siemens, Enel, Buzzi and others have either established or seriously modernized their facilities in our region.

In order to build a new competitive economy in Sverdlovsk Region, we have set up certain critical check parameters that must be reached by 2015. Most of them are related to invest-ment growth, high added value products and increasing productivity.

For example, we have decided that by 2015, the output of products with added value over 40 per cent must be doubled, the amount of investments coming into the region must increase 3.5 times as compared to the year of 2010 (up to 560 billion Rubles), and output must be doubled.

These targets are hard to meet, but I am confident they are feasible, the more so because successful economic diversification of the region depends on their fulfillment.

A lot has been accomplished already. For example, the share of value added products in Sverdlovsk Region has increased from 15% in 2009 up to 20% in 2011. Creation of clusters is under way, which results in establishment of whole new branches of industry. A vivid example would be creation of the new railway engineering industry and production of new generation locomotives. This is a joint venture of Sinara Group and Siemens.

I am inviting you to our region for open cooperation.

We always welcome new meetings, and we appreciate reliable, time-proof partners!

A.S. Misharin,Governor,Sverdlovsk Region

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SVERDLOVSK REGIONSVERDLOVSK REGION

HIGH LEVEL OF BUSINESS ACTIVITIES

WELL-DEVELOPED TRANSPORTATION AND LOGISTIC INFRASTRUCTURE

READY INDUSTRIAL INFRASTRUCTURE

INNOVATIVE INFRASTRUCTURE OPENNESS TO THE WORLD COMMUNITY

HIGH LEVEL OF INVESTMENT ACTIVITIES IN THE REGION

EFFICIENT INVESTMENT INFRASTRUCTURE TRANSPARENT AND CLEAR MECHANISMS OF INVESTOR RELATIONS

WIDE RANGE OF BUSINESS SUPPORT TOOLS

6

8

10

12

14

16

20

22

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CONTENTS

98

MODERN BUSINESS CENTERS

INTERNATIONAL STANDARD HOTELS

INFRASTRUCTURE FOR CONGRESSES AND FAIRS


COMFORTABLE CONDITIONS ENSURE HIGH LEVEL OF BUSINESS ACTIVITIES

Ratings:

2 rank of Sverdlovsk Region in the Forbes Rating ‘Russia’s best business regions’

3 rank of Yekaterinburg in the Forbes Rating ‘Russia’s best business cities’

2015 Establishment of one of Russia’s largest congress and exhibition center of 200,000 sq.m (50,000 sq.m commissioned in 2011)

2018 Hosting football games during the World Championship

2020 Hosting football games during the World Championship

Non-residential real estate facilities commissioned

in 2011 – 800,000 sq.m

Office facilities (class А and В+) – 100,000 sq.m

Office facilities (class В) – 450,000 sq.m

Room stock – 16,000 rooms

4-5 star room stock – 1,650 rooms

11

10

LARGEST REGIONAL AIRPORT

SVERDLOVSK RAILWAY

WELL-DEVELOPED HIGHWAY NETWORK


WELL-DEVELOPED TRANSPORTATION AND LOGISTICS INFRASTRUCTURE HELPS MINIMIZE TRANSPORTATION EXPENSES

Passenger flow – 3.4 million people (2011)Cargo flow – over 25,000 t (2011)Flights to 80 destinations

Transsiberian RailwayCargo flow in 2011 – 125 million tContainer transportation terminals

International transportation corridor ‘West-East’Yekaterinburg Ring RoadFederal transportation corridors

Modernization of the railway terminal 2018 High-speed railway line VSM2 (Moscow - Yekaterinburg)

2011-2022 Modernization of the cargo terminal of Koltsovo Airport 2011-2012 17,000 sq.m. 2018-2022 22,000 sq.m

1312

SVERDLOVSK REGION

READY INDUSTRIAL INFRASTRUCTURE HELPS REDUCE CONSIDERABLY PROJECT TIMELINES

2012 Industrial park Koltsovo (major business projects, 250 ha, budget investments – 2.7 billion Rubles)

2012 Industrial park Kamesnk-Uralski (smaller business projects, 70 ha, budget investments – 1.2 billion Rubles)

SVERDLOVSK REGION

SPECIAL ECONOMIC ZONE ‘TITANIUM VALLEY’WWW.TITANIUM-VALLEY.COM

CHEMICAL PARK ‘TAGIL’WWW.UCP.RU

URALS PHARMACEUTICAL CLUSTER

Tax and customs benefitsRich resource base and high scientific and technical potentialUtility networks and infrastructureProven mechanisms of investor relations

140 ha of prepared areasAvailability of utility networksQuick start of projects (within 2-3 months)

Working infrastructureOver 20 participants, including foreign partnersJoint development of innovative productsThe project is supported by the Skolkovo Fund

1514

R&D COSTS OF THE REGIONS WITHIN THE URALS FEDERAL DISTRICT, % OF GROSS REGIONAL PRODUCT

PLANS FOR THE NEAR FUTURE

SVERDLOVSK REGION

Technopark ‘Universitetski’

Establishment of the country’s largest applied research center on the basis of the Urals Federal University

Establishment of competence centers on the basis of the Urals Federal University

Establishment of the Technology Transfer Center in the field of machine tool building

Sverdlovsk Region

2,05

Chelyabinsk Region

1,61

Tyumen Region

0,7

Kurgan Region

0,29

SVERDLOVSK REGION

INNOVATIVE INFRASTRUCTURE

Industrial research institutes – 92Staff involved in R&D activities – 30,000Number of state institutions of higher education – 19Number of students – 210,000Efficient interaction mechanisms between the institutes and businessesVenture Fund

1716


WITHIN 20 YEARS, SVERDLOVSK REGION TURNED INTO ONE OF RUSSIA’S MOST INTERNATIONALLY OPEN REGIONS

OVER 400 FOREIGN COMPANIES

REPRESENTED IN THE REGION

FOREIN INVESTMENTS IN 2011

– OVER 1,2 BILLION USD.

TRADE PARTNERS IN 130 COUNTRIES

OF THE WORLD

FLISGHTS FROM KOLTSOVO AIRPORT TO 80 DESTINATIONS

IN EUROPE, ASIA AND AFRICA

NUMBER OF FOREIGN

STUDENTS AND PROFESSORS IS CONTINUOUSLY

ON THE RISE

MAJOR INTERNATIONAL

EVENTS

FOREIGN TRADE TURNOVER IN 2011 –

10 BILLION USD.

25 DIPLOMATIC AND TRADE

REPRESENTATIVE OFFICES

1918

CAPITAL INVESTMENT DYNAMICS IN SVERDLOVSK REGION2005-2015, BLN. RUBLES.

COMPETITIVE ADVANTAGES OF SVERDLOVSK REGION


OBVIOUS COMPETITIVE ADVANTAGES OF SVERDLOVSK REGION ENSURE HIGH LEVEL OF INVESTMENT ACTIVITIES

Economic and financial stability of the region – B+ according to S&P (stable)

Well-developed transportation and logistics infrastructure

Unique human, scientific and innovative potential

Efficient investment policy of the regional authorities

High capacity internal market

2006 2007 2008 2009 2010 2011 2012 2014 2015

133 187 243 200 217 371 400 450 500 560

2013Actual Target

2120

CAPITAL INVESTMENTS WITH FUNDING SOURCE BREAKDOWN % OF TOTAL VOLUME, 2010

RUSSIAN FEDERATIONSVERDLOVSK REGION

CAPITAL INVESTMENTS PER KEY ACTIVIEIS COMPARED TO ALL-RUSSIA DATA% OF TOTAL VOLUME, 2010


Provision of utility and other services

Health protection

Education

State administration and national security

Real estate operations

Financial activities

Transportation and communications

Hotels and restaurants

Wholesales and retailing

Construction

Generation and distribution of power, gas and water

Processing industries

Production of natural resources

Fishery

Agriculture

Own funds

Loans

Federal budget

Regional budgets

External sources

Sverdlovsk Region

Russian Federation

2,22,7

2,0

2,2

1,5

15,7

2,5

16,4

0,2

2,5

1,0

21,5

27,2914,2

2,2

0,0

1,9

2,3

1,9

1,5

1,5

1,5

1,5

1,5

3,3

3,9

9,9

22,531,849,3 41

10,2 9

13,7

10

4,3

8,2

15,1

3,3

0,1

22 23

SVERDLOVSK REGION

Consistence and non-duplication of actions and functions of various authorities

Coherence and coordination of collaboration between various levels of authority

Personal responsibility

Implementation of complex investment projects

Concession agreementInvolvement of project shareholders in the charter capital

Electronic portal dedicated to project support

Minimization of administrative procedures and periods of assessment of investors’ applications during all stages of investment process

Openness of investment processes

Mechanisms of state

and private partnership

Special body responsible for

investor relations

Investment strategy

Direct feedback between investors

and the regional administration

Investment Council of the

Governor

Protection of investor

rights

SVERDLOVSK REGION

Determination of competitive advantages of the region

Formulation of principal investment priorities of regional development, including priority industries and clusters

Regional commitments as to development of transportation, energy and social infrastructure are included

INVESTMENT INFRASTRUCTURE TO BE ESTABLISHED HELPS CARRY OUT INVESTMENT PROJECTS EFFICIENTLY

Your contacts in the region:

Governor of Sverdlovsk Region – Alexander Sergeyevich Misharin

Minister of Investments and Development of Sverdlovsk Region – Mikhail Maksimov

Ministry of Investments and Development of Sverdlovsk Region

Study of priority projects

Regularity of sessions (once a month)

Open and public meetings of the Council

Involvement of representatives of the region, federal authorities, local administration bodies, investors, public associations of entrepreneurs and experts

Charter of Sverdlovsk Region

Regional law on state support of investors

2524

PROJECT PLACEMENT BY INVESTOR (SELECTION OF SUPPORTIVE MEASURES)

CONTACT WITH THE MINISTRY PIC

PROJECT STATUS CHECKINGBY THE INVESTMENT COUCIL OF THE GOVERNOR

PROJECT IMPLEMENTATION

TASK SETTING WITH REGARD TO PROJECT SUPPORT

EXECUTION OF ASSIGNMENTS

IF REQUIRED, DELEGATION OF ASSIGNMENTS TO EXECUTIVE BODIES AND MUNICIPALITIES


CLEAR AND TRANSPARENT INTERACTION MECHANISMS BETWEEN AUTHORITIES AND INVESTORS MAKE THE INVESTMENT PROCESS UNDERSTANDABLE AND PREDICTABLE PORTAL WWW.U2020.RU

Uniform data base of all investment projects

Bottle neck analysis and day-to-day decision making for their elimination

Continuous contact between the state authorities and investors

Involvement of businesses in determination of investment policy vector in the region

1

6

2

5

3

4

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WIDE RANGE OF BUSINESS SUPPORT TOOLS HELPS MINIMIZE RISKS

DATA AND CONSULTING SUPPORT

PROPERTY SUPPORT

FINANCIAL SUPPORT

ADMINISTRATIVE SUPPORT

Methodical and consulting assistance during project development

Granting access to data base of vacant production areas and land plots in the territory of Sverdlovsk Region

Investment portal invest.midural.ru

Leasing of land plots or real estate owned by the region at special terms

Allocation of a project site with infrastructure already in place to locate a production facility (within a special economic zone or an industrial park)

Granting tax benefits

Provision of state guaranties

Partial subsidizing of costs related to payment of interest rates

Appointment of a state PIC of investment projects

Assistance during allocation of land plots

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POWER INDUSTRY

MACHINERY BUILDING

CONSTRUCTION AIR & SPACE INDUSTRY

HOSPITALITY BUSINESS


MAJOR RUSSIAN COMPANIES AS WELL AS INTERNATIONAL COPRORATIONS OPERATE SUCCESSFULLY IN SVERDLOVSK REGION

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CONTACTS

GOVERNOR tel.: +7 343 370 54 73OF SVERDLOVSK REGION fax.: +7 343 217 87 77ALEXANDER SERGEYEVICH MISHARIN е-mail: [email protected]

FIRST VICE CHAIRMAN OF THE GOVERNMENT OF SVERDLOVSK REGION – tel.: +7 343 362 17 02 MINISTER OF INVESTMENTS AND cell.: +7 (912) 291 44 44 DEVELOPMENT SVERDLOVSK REGION fax.: +7 343 362 16 63 MIKHAIL MAKSIMOV e-mail: [email protected] VICE MINISTER OF INVESTMENTS AND tel.: +7 343 362 18 35DEVELOPMENT OF SVERDLOVSK REGION fax.: +7 343 362 16 63VICTOR DOLZHENKO e-mail: [email protected]

HEAD OF INVESTMENT ATTRACTION DEPARTMENT, MINISTRY OF INVESTMENTS tel.: +7 343 362 16 87AND DEVELOPMENT OF SVERDLOVSK REGION fax.: +7 343 362 16 63 KONSTATIN CHIRKOV e-mail: [email protected]

MINISTRY OF INVESTMENTS AND DEVELOPMENT OF SVERDLOVSK REGION http://mir.midural.ru/

INVESTMENT PORTAL OF SVERDLOVSK REGION http://invest.midural.ru/

ELECTRONIC INTERACTION SYSTEM FOR INVESTORS AND STATE AUTHORITIES OF SVERDLOVSK REGION http://www.u2020.ru/

Documents

The Investment Guide of the Sverdlovsk Region