2018

CONTENTS

HERALD RESULTS-2017. FORECASTS-2018.

RATINGS 32. MONOTOWNS KONDROVO AND SOSENSKIY: NEW OPPORTUNITIES FOR 6. REGION – A TERRITORY WITH DEVELOPMENT MAXIMUM SOCIO-POLITICAL STABILITY KALUGA PHARMACEUTICAL CLUSTER – THE FIRST RECIPIENT OF THE SILVER INFRASTRUCTURE CLUSTER EXCELLENCE CERTIFICATE 34. LOGISTICS (ESCA) IN 36. ROAD ENGINEERING 7. KALUGA REGION AMONG THE MOST INNOVATIVE REGIONS OF RUSSIA 38. CONSTRUCTION SECTOR

INTERVIEW TOP EVENTS 8. DMITRY RAZUMOVSKY, MINISTER OF 42. COMPETITION POLICY ECONOMIC DEVELOPMENT OF KALUGA 44. AGROINDUSTRIAL SECTOR REGION: The region’s economy. Results of 2017. 48. LABOR MARKET AND SOCIAL POLICY Forecasts for 2018. 52. HEALTHCARE

54. HUMAN RESOURCES AND EDUCATION

FACTS AND FIGURES 56. ACHIEVEMENTS IN SPORTS 10. INDUSTRY 2017 58. 2017 – YEAR OF THE ECOLOGY AND 11. TOP-20 COMPANIES NATURE CONSERVATION TERRITORIES

64. TOURISM INDUSTRY INDUSTRY 68. ARTS AND CULTURE 12. KZTA. TIME FOR MAJOR CHANGES

INVESTMENTS 16. LAUNCHED IN 2017 20. AGREEMENTS SIGNED IN 2017 28. AGREEMENTS FOR 2018 30. NEW RESIDENTS OF KALUGA SEZ PROJECTS

PUBLISHED BY KALUGA NEWS AGENCY SINCE 2010 Director – Larisa CHUVIKOVA +7 (910) 860-35-43, [email protected] Editor – Tatiana ANTIPOVA +7 (910) 609-74-21, [email protected] Advertising – Elena BOCHENKOVA +7 (910) 915-00-58, [email protected] PUBLICATION OF THE MINISTRY All rights to information and photo materials and the logo of Kaluga Region FOR ECONOMIC DEVELOPMENT belong to the Agency for Regional Development of Kaluga Region: 41 bldg.2 Dzerzhinskogo St., Kaluga, 248001 Russia OF KALUGA REGION Tel.: +7 (4842) 27-99-90, 27-99-91, arrko.ru

3 RATINGS

KALUGA REGION – A TERRITORY WITH MAXIMUM SOCIO-POLITICAL STABILITY

EXPORTER OF THE YEAR

Kaluga Region has maintained its leadership status in the Kaluga Region came in third among with Russian Export Center JSC. monthly rating of socio-political stability in Russian regions Russian constituent subjects as Participation was open for exporting compiled by the St. Petersburg Policy Foundation throughout “Leader in Exports” – the most companies and constituent subjects 2017. The region’s average annual grade of 8.5 secures its important of the six categories of the of the Russian Federation focused place in the group of regions with “maximum socio-political nationwide competition “Exporter of on development of non-commodity stability”. the Year” organized by the Ministry of exports. Industry and Trade of Russia together

KALUGA REGION RECEIVES THE BIGGEST COMPENSATIONS FOR DEVELOPMENT OF VORSINO AND ROSVA INDUSTRIAL PARKS

ВIn 2017, Russian Prime Minister Dmitry rubles, and in 2019 – five subjects will KALUGA PHARMACEUTICAL Medvedev signed a directive on allocation receive 1.1 billion rubles. According to the CLUSTER – THE FIRST of 6.8 billion rubles of federal budget funds document, the biggest compensations will for compensation of costs associated with be paid to Kaluga Region for creation and RECIPIENT OF THE SILVER the creation of industrial and techno parks development of industrial parks Vorsino in 2017-2019. Funding is to be granted over (1.4 billion rubles in 2017) and Rosva (636 CLUSTER EXCELLENCE three years: in 2017, nine RF constituent million rubles in 2018). subjects received 3.1 billion rubles, in 2018 CERTIFICATE (ESCA) IN – seven subjects will receive 2.6 billion RUSSIA

In October 2017, experts from the European Secretariat for Cluster Analysis (ESCA) performed a field audit of the Kaluga Pharmaceutical Cluster association. Key operations of Kaluga’s pharmaceutical association were evaluated on the basis of 30 parameters. The audit revealed that required results were considerably exceeded for more than 70% of these parameters thus confirming the high level of the cluster management system and its compliance with the best global practices. Kaluga’s pharmaceutical cluster (the ninth in Europe among pharmaceutical/medical clusters) became the first Russian holder of a silver Cluster Excellent Certificate of the European Secretariat for Cluster Analysis.

4 RATINGS

KALUGA REGION IS AMONG THE MOST KALUGA REGION’S ACHIEVEMENTS INNOVATIVE REGIONS OF RUSSIA IN PROJECT MANAGEMENT COMMENDED BY RF GOVERNMENT

At the end of 2017, the analytical center of the Russian Government announced the winners of its fourth annual “Project Olympus” competition in the field of public sector project management. Kaluga Region reached the finals in the category “Project offices for investment climate improvement”, while its “MMC Development” project received a finalist diploma in the category “Project of the year”.

Project Olympus competition

Kaluga Region is in the group of “strong socio-economic conditions for innovations, innovators”, holding the sixth place in regional innovation activity. The leaders the rating of innovative regions for 2017 are St. Petersburg and , with Professional prepared by the Association of Innovative Tatarstan Republic securely holding the Regions of Russia (AIRR). The rating third place. They are followed by Tomsk, project management evaluates regions by 29 parameters Novosibirsk, Kaluga, Moscow, Ulyanovsk, divided into four categories: research Samara and Tula Regions. in the public sector and development, innovation efforts,

UNIVERSAL BLOOD TECHUP NATIONAL SUBSTITUTE RATING OF RUSSIAN FAST GROWING HIGH-TECH PAM-3 NAMED COMPANIES THE BEST INNOVATION OF MERCATOR KALUGA AND THE ARMY-2017 CHEMICAL AND FORUM PHARMACEUTICAL COMPANY – LEADERS OF THE TECHUP 2017 RATING

Mercator Kaluga LLC, manufacturer of road maintenance PAM-3 was named the best Innovation (freeze-dehydrated powder packaged in and utility equipment, won the first place in the sixth Club invention at the awards ceremony of compact flasks) is suitable for long-term annual TechUp-2017 national rating of Russian fast-growing the International Military-Technical Forum storage under normal conditions and is high-tech companies organized by the Russian Venture Army-2017 held in August 2017. Activities compatible with a variety of solvents. Company (RVC). The winners were announced in December of the Innovation Club are supervised The blood substitute for use in extreme 2017. Obninsk Chemical and Pharmaceutical Company JSC, a by the Main Directorate of Scientific and emergency situations received high participant of the Kaluga pharmaceutical cluster, became a Research and Engineering Support of appraisals from the Russian Minister of laureate of the TechUp-2017 rating as a TOP-10 innovative Advanced Technologies of the Russian Defense Army general Sergey Shoygu and company in the Medium Business category. The company Ministry of Defense. “PAM-3 – universal military experts of the Russian Ministry manufactures advanced pharmaceutical substances and blood substitute with oxygen transfer of Defense. finished medical products, continuously develops and capacity” is a project developed by a group introduces new high-efficiency drugs to the Russian market. of Obninsk-based scientists. “Dry blood”

5 INTERVIEW

THE REGION’S ECONOMY RESULTS OF 2017. FORECASTS FOR 2018.

Dmitry RAZUMOVSKY, Minister of Economic Development of Kaluga Region ?

manufacturing for the year was over 110% KALUGA REGION HAS BEEN Dmitry Olegovich, what were Kaluga against 2016, which is significantly above DEMONSTRATING CONFIDENT Region’s macroeconomic results for average results for Russia. The value of GROWTH FOR TWO YEARS IN 2017? shipped industrial products was about 600 A ROW. billion rubles. We are still holding the third position in the Central Federal District by IN THIS INTERVIEW WITH Quite positive. Most of Kaluga level of salaries: in 2017, the average salary THE MINISTER OF ECONOMIC Region’s economic sectors have been was 33,000 rubles – almost 5% higher than DEVELOPMENT, WE DISCUSS demonstrating confident growth for the in 2016. Gross regional product for 2017 is estimated at 380 billion rubles, which is GROWTH DRIVERS, THE EVENTS second year in a row. Among the drivers for positive also 5% higher than in 2016. THAT MADE THE BIGGEST economic dynamics, I’d note the 6.5% It is very important that in 2017 there IMPACT ON THE REGION’S increase in agricultural output and the was considerable growth in the export SOCIAL AND ECONOMIC LIFE 20% increase of construction volumes, component of the region’s international AND PRIORITIES OF REGIONAL with 800,000 m2 of residential space trade. Growth of exports to non- DEVELOPMENT FOR 2018. built in the region in 2017. There was an neighboring countries was three times almost 80% increase in manufacturing of higher than in 2016. medical products. There were also positive trends in automotive manufacturing, manufacturing of electronic equipment, What would be your TOP-5 events a considerable revival of investment in the economy of Kaluga Region in activity. 2017? The overall index of industrial

6 INTERVIEW

Actually, there were a lot more of such activity complementing each other. events. They include commissioning One of the most promising directions of new investment and infrastructural is creation of territories of specialized facilities, launches of major logistics development to gradually level out 112.3% projects, signing of milestone investment geographic disbalances that still exist agreements, revival of small and medium within the region. Certain steps have — growth of industrial business activity, expansion of our already been taken in this direction. Thus, manufacturing partner base, growth of competitiveness we established Kaluga SEZ, which is now in 2017 of our traditional manufacturers… actively acquiring residents, with new Thus, in May 2017, the locomotive plant plants being built and new jobs created. in held an official ceremony in We are currently creating territories of honor of production of its first locomotive accelerated socio-economic development under a contract with the Railway Union in Sosenskiy and Kondrovo. This will of Cuba. provide incentives for local businesses and Volkswagen Group Rus had its own outside investors and ultimately improve landmark events, including the 10-year the quality of life in the two towns. 700 anniversary of its Kaluga plant, the As a region that does not have any manufacturing of the 200,000th 1.6 MPI hydrocarbon resources, we see further BILLION RUBLES engine, and 100,000th SKODA RAPID. growth opportunities in the transition In October of last year PCMA Rus also to an innovative economy. The key — value of goods manufactured its 100,000th Mitsubishi resources for this are the human capital shipped in 2017 off-roader. By the end of 2017, the level and quality of the environment. The most of production localization for the model important stage in the regional strategy reached 36%. for innovative development is 2020-2030. Another major company – Kaluga plant However, we are already implementing Typhoon – became an accredited Russian projects that are significantly changing exporter. In November, the company the identity of our region. Extensive received a certificate of international modernization of the regional system of 390 registration of the TYPHOON trademark education is in progress, with upgrading covering territories of Algeria, of infrastructures of our higher education BILLION RUBLES Azerbaijan, , China, Cuba, institutions and introduction of new France, Kazakhstan, Vietnam and India. specializations. We are providing targeted — gross regional training of high-qualification resources product in 2017 for the region’s scientific production and (4% more than in 2016) What are the priorities for the innovations complex. Moreover, having a region’s economic development in rich research and academic infrastructure, 2018? we need to develop our own scientific research projects and create a favorable environment for implementation of Kaluga Region was one of the first Russian research results into manufacturing. regions that adopted a cluster approach in management of regional development. > 44% We have introduced segments that were — increase new for the region and we now need to maintain and strengthen this integrated of Kaluga Region’s development, with different spheres of international trade turnover in 2017 against 2016 FOR KALUGA REGION, GROWTH OPPORTUNITIES ARE ASSOCIATED WITH THE TRANSITION TO AN INNOVATIVE ECONOMY. THE KEY RESOURCES FOR THIS ARE THE HUMAN CAPITAL AND QUALITY OF THE х 2.3 ENVIRONMENT. WE ARE ALREADY IMPLEMENTING growth of exports from the region to PROJECTS THAT ARE SIGNIFICANTLY CHANGING THE non-neighboring IDENTITY OF OUR REGION. countries in 2017

7 FACTS AND FIGURES INDUSTRY-2017 1st PLACE 1st PLACE 2nd PLACE in the Central Federal in the Central Federal in the Central Federal District District and Russia District and 8th in Russia and 10th in Russia held by Kaluga Region by manufacturing by industrial output per capita by the industrial production index output per capita Rosstat (January-August 2017)

INDUSTRIAL COMPLEX ACCOUNTS 26.4% 2900 growth of industrial INDUSTRIAL COMPANIES output in 5 recent years operating within the region 43,073 10 SMALL BUSINESSES INDUSTRY CLUSTERS incl.: actively developing in Kaluga Region

OF GROSS REGIONAL 15% PRODUCT in the industrial segment

INDUSTRIAL PRODUCTION INDEX DYNAMICS

133.5

125.3 Kaluga Region Russia

112.3 110.2 108.6 105.9 103.9 107.3 105.0 103.4 96.6 101.0 100.4 101.7 101.1

94.6

2010 2011 2012 2013 2014 2015 2016 2017

8 FACTS AND FIGURES

GROWTH AREAS OF THE REGIONAL INDUSTRIAL COMPLEX (January-September 2017)

167.2% 135.7% 130.2% 125.0% 121.5% 118.7% 118.6%

growth electronic other vehicles, nonmetal cars, food beverages of manufacturing of equipment incl. railway mineral products, trailers products medical products equipment incl. building and semitrailers materials

TOP-20 COMPANIES

# COMPANY NAME MANUFACTURED PRODUCT SHARE IN REGIONAL INDUSTRIAL OUTPUT, %

1 Volkswagen Group Rus LLC passenger cars 26.4 2 Samsung Electronics Rus Kaluga LLC tv sets, washing machines 6.3 3 NLMK-Kaluga LLC rolled steel 4.5 4 Volvo Vostok JSC trucks, excavators 2.4 5 Volvo Components LLC automotive components 2.3 6 ITERA JSC semi-finished meat products 1.9 7 Invest Alliance JSC semi-finished meat products 1.8 8 PCMS Rus LLC passenger cars 1.7 9 Moscow-EFES Brewery JSC in Kaluga beer 1.6 10 Faurecia Automotive Development LLC automotive components 1.4 11 Astra Zeneca Industries LLC pharmaceutical products 1.3 12 Metallist Production Complex LLC metal products and structures 1.2 13 Volkswagen KS LLC automotive combustion engines 1.1 14 CONTINENTAL Kaluga LLC car tires 1.0 15 Gestamp Severstal Kaluga LLC automotive components 0.9 16 Benteler Automotive LLC automotive components 0.9 17 Lafarge Cement JSC cement 0.8 18 LIR LLC in Kaluga automotive components 0.7 19 Typhoon JSC instrument engineering 0.6 20 Kaluga Plant Remputmash JSC railway equipment 0.6

TOTAL: 59.4

9 INDUSTRY

KZTA. TIME FOR MAJOR CHANGES

Sergey TOKAR, First Deputy General Director, Aeronavigation and Information Systems JSC ?

computer technologies. The second is the Kaluga Telegraph Equipment Plant 2017 was a year of major changes for search for new sources of financing and JSC (KZTA JSC) is a manufacturing KZTA. What preconditioned them? implementation of conversion programs company with considerable techni- with consideration of state defense contract cal and technological capabilities. First of all, if was the need and desire to cuts. The third is establishment of science- The plant was founded in 1965 take KZTA to a new level of development, intensive products capable of competing for development of equipment to transform it into a high-tech enterprise on a global level. These requirements manufacturing for communications. capable of developing and manufacturing essentially defined the strategic decisions Its current principal directions globally competitive products and quickly that were made with regard to KZTA in 2017. include manufacturing and technical responding to new challenges, and – most maintenance of military, civil and importantly –into a production facility dual-use complexes, systems and that guarantees a high quality of life and technical facilities for communi- maximum opportunities for self-fulfillment The company not only changed its cations and notification, as well as to its employees. These are the high goals we ownership form, but the owner as manufacturing of civilian products are aiming for. well. What other changes did KZTA – cash registers and tachographs As far as industrial trends are concerned, go through, what challenges are from the Kasbi series. KZTA’s part- one of last year’s distinctive features – not just yet to be resolved and will the plant ners include the Russian Ministry of KZTA but for a whole range of companies maintain its principal product line? of Defense, the Russian Ministry – was the search for new mechanisms that of Emergency Situations, Sukhoi would allow established production plants Company JSC, Russian Railways JSC, to implement transformations necessary As for the ownership form, the company enterprises from Roscosmos, Rosa- for effective operation in the context of is now private. The new owner is the tom and other state corporations. today’s realities. These realities have Aeronavigation and Information Systems firm foundations. The first of them is the (AIS) holding company. One of its principal qualitative change in production chains activities is manufacturing of radio that is based on application of digital and navigation equipment and remote-control

10 INDUSTRY

radio equipment. From August 2017, the holding company owns 100% of voting shares in Azimut JSC – a major developer and manufacturer of equipment for telecommunications, navigation and air traffic control automation. One of its branches – specifically, its production center - is located at KZTA facilities. The center is a key element in the comprehensive digital system based on Siemens PLM Software and SAP technologies. It is now one of the first complete integrated projects in Russian instrument engineering. Thus, remaining within the sphere of competence of Rostec state corporation while taking advantage of all opportunities provided by public-private partnership and the scientific and engineering potential of Azimut, KZTA has acquired viable potential to occupy a niche in development and production of high-tech products. There is no discussion of an essentially new product line. The accumulated production experience needs to be exploited to the share of civilian products reaching at least on route and within key dispatch areas; maximum, so the plant’s most demanded 55%. Primarily, this will be achieved by high-accuracy control over aircrafts on and profitable types of products will expanding production of telematic and parallel flight strips; monitoring of aircraft definitely be maintained. aeronavigation equipment, as well as geometric altitude; global monitoring, etc. civil aviation products. There is potential to enter international markets – here, we What new products will KZTA offer are planning to rely on the experience of Do you plan to cooperate with to consumers and when? What other AIS companies, which are currently companies operating in Kaluga markets will they be intended for? exporting to countries of the Eurasian Region? Economic Union, to Egypt, Indonesia, The plant’s development strategy Cuba and the Middle East. Absolutely. In 2016, automotive suggests commencement of preparations Expanding on the subject of new components accounted for 6% within the for introduction of a new generation of products, we are assigning special structure of KZTA-manufactured products. products already on its first stage. For this, significance to the Azimut product range. Considering the market potential and we need to resolve challenges associated It was developed on the basis of the most existence of a strong automotive cluster with modernization of the plant’s advanced digital technologies, data in Kaluga Region, cooperation in this production base, improvement of its exchange protocol standards, modular direction is definitely interesting. As is R&D efficiency, introduction of advanced system architecture and complies with mutually beneficial cooperation with production systems and management ICAO and EUROCONTROL requirements. any other companies interested in our technologies. In combination, this will provide optimized developments, products and production Naturally, the structure of manufactured solutions for comprehensive objectives: capabilities. products will change with time, with the monitoring of targets on the airfield,

Aeronavigation and Information Systems JSC (AIS) was established by private investors together with state corporation Rostec with the purpose of modernization of Russia’s aeronavigation system and expansion of the presence of Russian solutions in this sphere on international markets. Establishment of the holding company resulted in consolidation of scientific, technical and administrative management of several companies involved in development of aeronavigation systems, including Azimut JSC, KZTA JSC, Sapfir JSC, NIIIT-RTS JSC, among others, providing support for implementation of a uniform technical policy from the stage of development by integrating newly-created solutions into a single complex. The holding company guarantees exceptional quality of aeronavigation equipment through high production efficiency supported by its advanced laboratories and complete-cycle high-tech production facilities.

11 FACTS AND FIGURES INVESTMENTS 99 845.2 new economy enterprises opened billion rubles in the region since 2006, invested in fixed incl.: capital since 2006

5 new production plants commissioned in 2017 440.7 189 180 billion rubles investment investment agreements and projects projects recruited in fixed capital listed in the register of in negotiation investments (from 2013 regional investment portfolio, incl.: 3 to 2017) projects, incl.: companies – L’Oreal, AstraZeneca, Nestle – considerably expanded production 4 facilities in 2017 15 investment agreements agreements signed in 2017 in the beginning 27,876 of 2018 jobs created at new economy 491.8 enterprises billion rubles expected investments under these agreements

100 investment projects implemented in industrial park format

12industrial parks 7539.8 ha offer ready-to-use sites for total industrial park area establishment of production

12 FACTS AND FIGURES

Moscow

BOROVSK Smolensk Moscow Region Region 14 OBNINSK residents registered at the SEZ SEZ area KALUGA 1042 ha Kaluga airport 5 companies 432 ha received LYUDINOVO resident status Tula from January Region to September 2017 2 sites > 30 Region of Kaluga industrial SEZ companies reduce up to 30% of costs in negotiation for residents portfolio 610 ha Region

th HIGHEST RANKING IN CATEGORIES:

place • regulatory in the National Investment environment Climate Ranking held by Kaluga Region • business support 5 institutions

“Kaluga Region remains among leaders of modern Russia largely due to successful attraction of investments. We are among the country’s top five regions by the quality of our investment climate. We intend to considerably expand formats for collaboration with businesses. This implies our new infrastructural offers for those who do not have funds for independent construction and establishment of production in the SEZ or acquisition of land in industrial parks. We have an impressive package of tax and customs preferences to support industrial investment projects, as well as a system of special investment contracts. We also have the country’s biggest international logistics corridors to support development of export potential. Businesses recognize advantages for their project development in Kaluga Region and continue to invest in our region. There were three major industrial plants commissioned last year – L’Oreal, AstraZeneca, Nestle - while others significantly expanded their production capacities. We are currently negotiating with 180 potential investors. Four agreements were signed less than a month ago at the Sochi investment forum. We have doubled our contact base, considerably expanded the geography of investment projects, established territories of specialized development and are actively “populating” the SEZ. These efforts form a wonderful foundation for future investments”.

Nikolai ANDREEV, General Director, Agency for Regional Development of Kaluga Region

13 INVESTMENTS LAUNCHED IN 2017

LAMINAM BUILDS ITS FIRST RUSSIAN PLANT IN KALUGA REGION

On March 27, Laminam Rus LLC officially the company’s main plant – a unique system of The area of the new plant is 14,000 m2. Thus, opened its new production facility at Vorsino pressing of thoroughly selected high-quality Laminam Rus LLC has become the first and only industrial park. The Italian company specializes clay and feldspar, an intricate artistic design manufacturer of large-format ceramic tiles in manufacturing of ultra-thin large-format system, use of hybrid gas and electric ovens in Russia. This step indicates the company’s ceramic tiles used in architecture and decorating. with low energy consumption and dry cutting intention to develop its international activities The Kaluga plant will produce 1000x3000 mm to reduce water consumption and water and expand production. Guests present at the ceramic plates with thickness of 3 and 5 mm. treatment costs. Laminam invested EUR 25 opening ceremony noted that unique plates Production is based on the same innovative million in the technological process with annual manufactured by Laminam Rus are certain to be Made in technologies that are applied at output potential of 1 million m2 of ceramic tiles. of demand beyond Russia.

PALLADIO GROUP LAUNCHES A PLANT FOR PACKAGING MANUFACTURING IN OBNINSK

On June 8, Palladio Zannini (Serbia-Italy) held an official ceremony for commissioning of a plant for manufacturing of packaging for pharmaceutical and cosmetic products at Obninsk industrial park. The company invested over 10 million euro in the construction of its 12,500 m2 production facility. In the summer of 2017, the plant launched its first production line, with two more expected to begin operation by the end of the year – the plant is designed to accommodate capacity expansion. The company will manufacture high-quality cardboard packaging and insert leaflets for pharmaceutical drugs. Plans for the nearest future include development of printing on aluminum foil. Palladio BNM will offer a complete range of primary and secondary packaging for the pharmaceutical industry in accordance with GMP standards.

In the context of rapid development of Kaluga Region’s pharmaceutical cluster, arrival of such companies has special significance. Kaluga’s pharmaceutical cluster is one of the most promising in Russia and is currently represented by 63 participants. Locally produced packaging will be of high demand among them. For Palladio Group, the Obninsk facility is the first plant in Russia and the sixth globally. The new plant will exercise the same strict level of quality control as applied at the company’s European plants.

14 INVESTMENTS

THE FIRST RUSSIAN CENTER FOR BIOSAFETY OPENED IN KALUGA REGION

The unique Tecleor center for development The center’s processes are based on accelerated year will support processing of over 100 types of and implementation of technologies for food electrons that penetrate through packaging products with consideration of packaging type, processing with accelerated electrons began protecting products from further bacterial temperature and gaseous medium. The project is operation at K-Agro agroindustrial park in Kaluga contamination. According to experts, the expected to create 60 new jobs. Region on September 15. Already at start-up stage, technology is harmless, safe for consumers and Experts note the economic benefits for small and the center for reduction of microbial contamination does not produce any chemical or biological waste. medium companies and farms that submit their generated interest among major retail chains, This is the best technology for conservation and produce for accelerated electron treatment; this wholesale distribution facilities, social catering decontamination among all available competitive allows them to improve competitive ability and factories, the Ministry of Defense and the Federal methods. export potential without any capital costs. State Reserve Agency. The design capacity of 30 thousand tons per

NOVAMEDICA: CONSTRUCTION LAUNCH

On May 30, Vorsino industrial park hosted a The company’s key partner in the project is Pfizer bacterial and fungoid infections, cardiovascular, ceremony for commencement of construction of a – one of the world’s biggest pharmaceutical inflammatory and oncological diseases. Most of them modern biopharmaceutical production complex by companies that signed an agreement on partnership are included in the list of vital and essential drugs. NovaMedica LLC (ROSNANO investment project). The with NovaMedica in December of 2016. Under the Manufacturing will be organized in strict compliance new GMP plant will manufacture sterile injection agreement, Pfizer will invest in construction of with international and Russian quality standards drugs within the long-term strategy for localization the plant and provide NovaMedica with rights for allowing the company to export the plant’s products of innovation medical products and technologies in manufacturing and commercialization of a portfolio to international markets. Construction is scheduled to Russia. The total area of production and auxiliary of over 30 products (injection drugs), a third of be completed in 2020. facilities of the complex to be built at Vorsino which are currently not manufactured in Russia. The industrial park will be 23 thousand m2. portfolio includes drugs for treatment of severe

15 INVESTMENTS LAUNCHED IN 2017

L’OREAL COMMISSIONS NEW INDUSTRIAL FACILITIES AND PRODUCTION LINES

On September 8, L’Oreal commissioned new new products and introduce highly efficient production facilities at its Vorsino industrial park advanced technologies for preservation of the plant. The company invested over 2.5 billion rubles environment. The plant expansion began in March in expansion of the plant and installation of two 2016; in July 2017 the company conducted the first lines for manufacturing of skincare products with tests of equipment for manufacturing of Garnier brands L’Oreal Paris and Garnier to satisfy the skincare products. The expansion also allowed the growing demand for L’Oreal products in Russia. company to introduce efficient water treatment L’Oreal’s plant in Kaluga Region began operation technologies that support modernization of local in 2010. It specializes in manufacturing of L’Oreal treatment facilities and recirculation of 70% of Paris and Garnier haircare products (shampoo, waste water, as well as to install solar panels with conditioners) and hair dye. In 2015, L’Oreal made capacity to cover 10% of the plant’s average annual a decision to implement the second stage of energy consumption. In August 2017, the company its investment project, allowing the company was named Eco-Corporation of the Year of Ecology to build 13,700 m2 of new facilities, double its in Russia in recognition of its environmentally production capacity, launch manufacturing of responsible approach to plant expansion.

ASTRAZENECA LAUNCHES MANUFACTURING OF THE FIRST TARGET DRUG FOR CANCER TREATMENT IN RUSSIA On September 12, international than 3.5 million packs of innovation AstraZeneca cancer treatment, the company announced its biopharmaceutical company AstraZeneca pharmaceutical products per year. According to decision to invest an additional amount of over launched a new high-tech production line. the current localization schedule, the plant is 700 million rubles into acquisition, construction, The first product to be manufactured at the expected to reach full-cycle production by 2020. production, delivery, installation and validation new facility is the innovation target drug for of equipment for the new production line. treatment of lung cancer (osimertinib). The new AstraZeneca began operation in Kaluga Region For AstraZeneca, Russia is one of the key markets drug will only be manufactured by three of the in 2015. Its plant is located at Vorsino industrial with priority status. Its plant in Kaluga currently 30 AstraZeneca plants worldwide, including the park and was built with an investment of manufactures more than 30 innovation drugs one in Kaluga. The new line will also produce $224 million. AstraZeneca is consistent in for treatment in various fields of therapy, drugs for treatment of cardiovascular diseases, development of its local manufacturing. At the including oncology, cardiology, gastroenterology, diabetes mellitus type II, and another oncological official ceremony dedicated to the launch of psychiatry and pulmonology. This represents drug for lung cancer treatment. Overall, more production of the innovation target drug for lung almost 80% of the company’s portfolio in Russia.

16 INVESTMENTS

NESTLE PURINA PETCARE INVESTS 4 BILLION RUBLES IN NEW PRODUCTION FACILITIES

On November 9, Nestle Purina With the launch of the new PetCare held a ceremony for opening production segments, the factory of two new production lines at now has more than 20 lines for Vorsino industrial park. Nestle manufacturing of dry and wet cat and Purina PetCare is a Nestle dog food. The factory uses the most specializing in manufacturing of advanced equipment; production dry and wet pet food under brands lines incorporate robotized sections FRISKIES, DARLING, CAT CHOW, DOG that insure high accuracy of their CHOW, FELIX, GOURMET, PURINA ONE, operation. PRO PLAN. Nestle Purina PetCare in Vorsino is currently the biggest European pet The company invested 4 billion rubles food factory and one of the biggest in expansion of manufacturing. Nestle investment projects in Russia. The launch of the two new lines The factory’s products are exported increased the plant’s capacity by to 14 countries. The total amount 30,000 tons of products per year. invested in development of the The project was implemented within production facility and distribution the scope of the 10-billion-ruble center in Kaluga Region since their investment program for development opening is 16 billion rubles (including of the factory in 2017-2019. the 4 billion rubles invested in the Manufacturing is based on use of two new lines in November 2017). 80% of locally sourced material The company intends to invest and packaging that meets the strict an additional 6 billion rubles in quality standards of Nestle. 95% of production development in 2018- Purina products sold on the Russian 2019. market are manufactured in Kaluga Region.

MODERN DIALYSIS CENTER OPENED IN KALUGA

On February 21, Frezenius children’s hospital. (Germany) opened a new dialysis There are currently 152 patients center in Kaluga. The center requiring hemodialysis. Of them, was built on an allocated plot 136 are getting treatment in within the medical in Kaluga Region, and the rest – at Annenki and is equipped with dialysis centers in Podolsk and 40 new-generation “artificial Bryansk. Commissioning of the kidney” units for treatment of new center will provide access to up to 240 patients. The center’s renal therapy of a more advanced services will be financed by the level, fully satisfy the demand Compulsory Medical Insurance of local residents for this type Fund. Plans include introduction of treatment and improve its of another treatment method – accessibility. The Governor of peritoneal dialysis. The center Kaluga Region expressed hopes will be staffed by highly qualified for a similar Frezenius dialysis nephrologists, dialysis nurses and center to be established in support staff. as well. In 10 recent In Kaluga Region, substitutive years, the number of hemodialysis renal therapy is provided at the branches increased in Russia by nephrology and hemodialysis approximately 45%, with their branch of the Kaluga Region current coverage at two per clinical hospital, clinical hospital million residents. No. 8 of the Russian Federal Medical-Biological Agency in Obninsk and the Kaluga regional

17 INVESTMENTS AGREEMENTS SIGNED IN 2017 THE AGENCY FOR TECHNOLOGY DEVELOPMENT OFFERS NEW BUSINESS DEVELOPMENT OPPORTUNITIES TO THE REGION’S MANUFACTURERS

On January 26, Kaluga Region’s Governor regions, yielding only to Moscow, St. Anatoly Artamonov and the General Petersburg, Tatarstan, Tomsk and Director of the Agency for Technology Novosibirsk Regions. Development Maksim Shereikin signed The principal objective of the Agency for an agreement on cooperation in Technology Development is collaboration implementation of investment projects with Russian enterprises in introduction of involving technological modernization technological solutions of an international of the region’s enterprises. The regional level. The agency assists partners in administration will support the agency sourcing of advanced technologies in identification and selection of in Russia and abroad, in formation of enterprises interested in modernization investment portfolios, selection of and in promotion of new technology governmental support measures and implementation investment projects. The project maintenance throughout their agency will collaborate with industrial implementation. companies on an individual basis by developing targeted programs and solutions. Kaluga Region holds the 6th place in the ranking of Russia’s innovative

PCMA RUS On January 31, PCMA Rus LLC signed an PCMA Rus will have the capability to varieties: Invite 6MT, Intense 8AT, Instyle TO LOCALIZE agreement on strategic cooperation localize up to 80% of its raw materials 8AT and Ultimate 8AT. Pajero Sport with with Research and Production Company required for manufacturing of key plastic a diesel engine will maintain all options PLASTIC POLYPLASTIC represented by Trading car components. Products supplied and technical characteristics, while Invite House Polyplastic. The signing took place by POLYPLASTIC are already used in 6MT will also be equipped with TMPS tire at the PCMA Rus automotive plant at manufacturing of components for the pressure control sensors, a system for Rosva industrial park. The agreement engine section in commercial production remote access to the vehicle and the KOS covers replacement of imported composite of Peugeot 408 and Citroen C4 Sedan. keyless engine start button. To support polymers used in manufacturing of Expansion of the volume and variety of expansion of local production, the plant parts for Peugeot and Citroen cars with composite materials is adjusted to both created 440 new jobs and introduced two locally-manufactured materials, as well as the plant’s current model range and its additional shifts. cooperation in development of new types future models. of plastic for industrial use. On December 15, Mitsubishi Motors Considering the 15 types of materials Corporation resumed local production already covered by the scope of the of Pajero Sport. The diesel version of parties’ cooperation as well as the Mitsubishi Pajero Sport manufactured at prospects unlocked by the agreement, the Kaluga plant will be available in four

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РTHE REGION IS STRENGTHENING BUSINESS TIES WITH MONTPELLIER MÉDITERRANÉE MÉTROPOLE

On January 31, Obninsk, Montpellier and the current global political trends, the Kaluga Region Agency for Innovation interpersonal cooperation still maintains Development executed an agreement on high significance. He believes that states cooperation. The document was signed should deal with major strategic issues, by the heads of the two cities - Vladislav while cities and regions should join forces Shapsha and Philippe Sorel, and the in pursuit of economic and intellectual agency’s CEO Anatoly Sotnikov. The parties development. plan to develop collaboration in scientific On October 5, during the visit of a Russian research, information technologies, delegation to France, the government innovations, business, medicine, education of Kaluga Region and the administration and culture. They were unanimous in their of Montpellier signed an agreement on desire to establish a partnership, which, strengthening of ties and cooperation in in their opinion, would serve as a solid economic, scientific, educational, social NEW CHILD MEDICAL CENTER foundation for international cooperation and cultural spheres. TO BE CREATED IN OBNINSK and improvement of mutual understanding between France and Russia. On February 17, the region’s government and Philippe Sorel noted that despite ValKon signed an agreement on implementation of an investment project for construction of a multipurpose children’s medical center in Obninsk. The center with advanced high-tech equipment will provide affordable high-quality services to residents of Obninsk, Kaluga Region and the Central Federal District.

The complex will accommodate an out-patient clinic and inpatient ward for children, an operating unit with three surgery rooms, a maternity welfare clinic, a radiology center with CT and MRT scanners; a pharmacy and auxiliary medical trade and service organizations. The estimated amount of project investments is 800 million rubles.

19 INVESTMENTS AGREEMENTS SIGNED IN 2017 IMPLEMENTATION OF THE STATE POLICY IN THE SPHERE OF INNOVATIONS, NANOTECHNOLOGIES AND NANOINDUSTRY

On April 4, the government of Kaluga Region signed a cooperation agreement with the Foundation for In- frastructure and Educational Programs, Development of Innovations and Support of Demand for Innovation and Nanotechnological Products. The partnership is targeted at implementation of the state policy in the sphere of nanotechnologies and nanoindustry, devel- opment of the innovation infrastructure in the seg- ment of nanotechnologies, stimulation of consumption and production of innovative products, including nanotechnological products. Within the scope of the joint action plan, the partners have already completed a pilot project for capital repair of a residential building in Meschovsk District. Repairs were performed with the use of innovative nanotechnological materials, including the Termoland façade insulation system, ICM Glass manufactured foam glass gravel and external reinforcement system provided by the Nanotechno- logical Center of Composites. The building was also equipped with LED lamps with motion sensors.

RUSSIAN EXPORT CENTER TO SUPPORT EXPORTING REGIONAL MANUFACTURERS

On June 1, the government of Kaluga Region signed an agreement on long-term cooperation with Russian Export Center JSC. The document is targeted at expansion and enhancement of partner relations between the region and the Russian Export Center in implementation of the policy for development and support of non-commodity exports approved by the Russian President. The parties are working on the creation of a comprehensive mechanism that will facilitate promotion of Kaluga Region’s products, including products manufactured by small and medium enterprises, on foreign markets.

Russian Export Center JSC is a state institute for support of non-commodity exports that offers a comprehensive range of financial and non-financial support measures to Russian exporters.

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KALUGA REGION TO CREATE A LOGISTICS HUB FOR POLYMER PRODUCTS

On June 2, Kaluga Region’s Governor Tobolsk. The products will then be Anatoly Artamonov, SIBUR Managing packaged, stored and shipped to Director Alexey Kozlov, Karl Schmidt Russian and international consumers. Spedition GmbH & Co CEO Horst The turnover capacity of the center Schmidt and Freight Village Kaluga will be 670,000 tons per year. The General Manager Nikolay Kruchinin container lot and modernized signed an agreement on development warehouse complex will be able to of a regional cluster for polymer simultaneously accommodate more processing. The parties agreed to than 40,000 tons of polymers. KSS create a major distribution center will invest over 2 billion rubles in the at Freight Village Vorsino to receive project. container trains with polymer products supplied from the ZapSibNeftekhim complex currently being built in OMYA URAL TO EXPAND PRODUCTION CAPACITY

On June 1, the region’s government of products per year. In the nearest and OMYA URAL LLC (Swiss concern future, the investor intends to OMYA) signed a memorandum expand capacity by building an on construction of the second additional production module that stage of the plant for marble chip will use more advanced innovative manufacturing. methods and technologies to produce fine and ultra-fine The concern’s first plant has been fractions. The amount to be invested operating at Vorsino industrial park in the project is 15 million euro. The since 2014. The plant manufactures company plans to commission the fine-ground (>5 mcm) marble new facility in 2018. Products will be powder used as a filler and pigment sold in regions of the Central Federal in paint and lacquer and paper District and region. manufacturing, manufacturing of plastic and construction materials. Its capacity exceeds 100,000 tons

21 INVESTMENTS AGREEMENTS SIGNED IN 2017 GABRIEL-CHEMIE — NEW RESIDENT OF VORSINO INDUSTRIAL PARK

On August 3 the region’s government and Gabriel-Chemie-Rus-2 LLC signed an agreement on implementation of an Austrian investment project for the construction of the first stage of a plant for manufacturing of colorant concentrates and additives for plastic at Vorsino industrial park. The total amount to be invested in the project scheduled for completion in the IV quarter of 2018 will exceed 260 million rubles. The company is also considering the possibility of commissioning two more production complexes in the future.

Gabriel-Chemie is an innovation holding company that specializes in development and industrial manufacturing of super-concentrates (masterbatches) of colorants and additives. The company has headquarters and principal production facility in Gumpoldskirchen (Austria), and subsidiaries in Germany, UK, Italy, Hungary, Czech Republic, Poland, Russia and Spain. Gabriel- Chemie products are used for coloring and assigning of special attributes to plastic used for manufacturing of packaging for food products and beverages, cosmetics, household products, medical goods, automotive and other products. In Kaluga Region, Gabriel-Chemie is already collaborating with L’Oreal that is also based at Vorsino industrial park.

VEROPHARM AND BION PARTNERSHIP: FROM SUBSTANCE DEVELOPMENT TO DRUG MANUFACTURING

On September 18-20, 2017, Veropharm (Abbott group) and BION (participant of the Kaluga Pharmaceutical Cluster) signed a strategic partnership agreement. The signing took place during the second GMP conference attended by Deputy Minister of Industry and Trade of Russia Sergey Tsyb and Director of the Department of Drug Supply and Regulation of Medical Products Elena Maksimkina.

Within the scope of their long-term partnership, the companies will develop high-tech substances for manufacturing of medical drugs for treatment of oncological diseases, diseases of the cardiovascular system and central nervous system. Drugs will be manufactured at Veropharm’s modern production facilities in and Volginsky settlement in Vladimir Region

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INDUSTRIAL COMPANIES FROM KALUGA REGION AND GERMANY TO PURSUE COOPERATION

On October 5, heads of Giesserei Heunisch GmbH (Germany) and Agregatnyi Zavod (Lyudinovo) Dr. Christiane Honisch- Grotz and Evgeniy Veinmayer signed an agreement on cooperation. The signing took place within the scope of the meeting of the Russia-Bavaria taskforce for promotion of economic cooperation. The signatories expressed the intention to join forces in implementation of a project for development of manufacturing and sales of casting products. During the taskforce meeting, representatives of authorities and specialized agencies, development institutions and business associations from Germany and Russia discussed the status and prospects for bilateral collaboration. Specifically, development of digital technologies and their application in manufacturing, the energy sector, transportation and healthcare. They also discussed conditions and governmental support measures offered to foreign investors in Russia and opportunities available for Russian high-tech start-ups in Bavaria.

ASTRAZENECA – THE FIRST PHARMACEUTICAL COMPANY IN RUSSIA TO SIGN A SPECIAL INVESTMENT CONTRACT

Biopharmaceutical company AstraZeneca, the Ministry of Industry and Trade of Russia and the government of Kaluga Region signed a special investment contract at an official ceremony held in Moscow on October 16 chaired by Russian Prime Minister Dmitry Medvedev. In September 2017, AstraZeneca became the first pharmaceutical company in Russia to receive interagency commission approval for signing of a special investment contract. Within its scope, the company will invest an additional amount of over 1 billion rubles in modernization of its Russian plant and transfer of technologies for manufacturing of pharmaceutical drugs for treatment of socially significant diseases. The plant based at Vorsino industrial park will considerably increase production volumes, tax deductions and the number of jobs. The special investment contract covers ten pharmaceutical drugs, six of which will be manufactured to finished product stage by 2020. Under the contract, AstraZeneca will receive local status for its products, tax burden stability and fixed conditions for project implementation.

23 INVESTMENTS AGREEMENTS SIGNED IN 2017 CONFECTIONERY On September 11, the administration of District and Mikaello signed FACTORY an agreement on construction of a new TO BE BUILT confectionery factory for manufacturing IN BOROVSK of chocolate glazed fruit and nut candy. The new production facility scheduled for DISTRICT completion at the end of 2018 – beginning of 2019 will be built with an investment of 250 million rubles. Mikaello has been operating since 2001 and is a leader in its market segment traditionally recognized by top awards at international exhibitions, including Prodexpo, Prodsib, WorlFood, Intersweets, and Buy Russian.

MAGICAL WORLD OF RUSSIA TO BE BUILT IN KALUGA REGION

On November 2, the government of Kaluga Region and Paramount, Lotte World, Ferrari World, Galaxy, Studio million of visitors per year is scheduled for completion Moschanko Investment Group – 2000 (MIG) singed an City, Atlantis, etc.), the MIG consortium supported by before 2024. agreement for implementation of an investment project Russian specialists developed a concept for the Russian involving construction of the Magical World of Russia national family theme park resort. The Magical World of Governor Anatoly Artamonov noted that Kaluga Region family theme park in Borovsk district of Kaluga Region. Russia park will consist of 12 dedicated zones. Thus, the would create all necessary preconditions to support Moschanko Investment Group – 2000 (headquartered World without Borders will be designated for children implementation of the project within the shortest in Los Angeles) heads a consortium specializing in with limited physical capabilities. This will be a unique period. “We plan to request the Russian Government development, design, construction, management and facility in the global theme park industry where children to create a special economic zone for tourism and financing of theme parks worldwide. MIG initiated will be offered specially engineered medical equipment recreation at the site”, he said. the new project and will act as its key developer. allowing them to overcome physical ability barriers that Kaluga Region’s Governor Anatoly Artamonov presented The Magical World of Russia project implementation previously restrained them. the Magical World of Russia project to Russian President efforts will be joined with internationally renowned Vladimir Putin during a work visit to Moscow in 2016, companies with expertise in design, construction and The amount to be invested in the project expected resulting in the President supporting the idea of its management of amusement and theme parks and to create nearly 5,000 new jobs will exceed 116 implementation. resorts. Drawing on its vast experience of cooperation billion rubles. The main stage of construction of the with the world’s leading theme parks (Disney, Universal, 200-hectare park which is estimated to draw 10-12

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VOLKSWAGEN GROUP RUS — THE FIRST COMPANY IN RUSSIA TO WORK UNDER AN UPDATED CUSTOMS REGIME

On January 23, the head of the worldwide, including in Europe. Federal Customs Service Vladimir Engine exports are expected to Bulavin, Volkswagen Group Rus reach 40,000 units per year. General Director Markus Ozegovic and the group’s Financial Director In 2017, Volkswagen Group Rus Patrick Mayer signed an agreement was one of the biggest automotive for support of exports. Under the exporters in Russia, exporting document, Volkswagen Group Rus nearly 25,100 vehicles, which is 70% will make full use of opportunities more than in the previous year. provided by the updated regime Volkswagen Group Rus was the of “processing within the customs first company in Russia to opt for territory”, which provides relief the updated customs regime in from payment of customs duty for the beginning of the year. Other components used in manufacturing automotive market players will also of vehicles intended for export. be able to exploit the advantages Introduction of the latest of “processing within the customs adjustments implying waiver of territory” that will ultimately VAT and excise duty will allow the facilitate the integration of the company to significantly increase Russian automotive industry into its export volumes in 2018. The first global supply chains. export project to be implemented in the regime of “processing within the customs territory” in 2018 covers exports of Kaluga-manufactured 1.6 MPI engines to production facilities

MERCATOR KALUGA INCLUDED IN THE NATIONAL CHAMPIONS PROJECT

In January 2018, the Russian Ministry of Economic Development approved a list of 32 companies to be included in the priority project “Support of leading high-tech companies (national champions)”. The project is intended to provide focused support to companies in various segments that have considerable potential to capture the national and international markets. Among them is Mercator Kaluga LLC, a leader of the Russian market of municipal utility equipment for road and street maintenance. The new champions, including Mercator, were selected from participants of the TechUp-2017 rating and will receive support in the form of organizational assistance in access to available governmental instruments, including through development institutions, as well as information and consulting support in development of operations within the country and their expansion to global markets.

25 INVESTMENTS AGREEMENTS SIGNED IN 2018

Kaluga Region signed four investment agreements for an amount of over 1 billion and 340 million rubles. Documents were signed on February 15 within the scope of the Russian investment forum in Sochi.

AGROIMPEX-TRADE TO MPT-PLASTIC TO GC PTM-KALUGA STANKOFLOT BUILD A CHOCOLATE BUILD A PLANT IN BECOMES NEW CHOOSES THE FACTORY AT K-AGRO KALUGA SEZ RESIDENT OF ROSVA BOROVSK SITE OF INDUSTRIAL PARK KALUGA SEZ

The agreement on construction of The agreement between Kaluga Kaluga Region and GC PTM- The relevant agreement was signed a plant for manufacturing of bean- Region and MPT-Plastic LLC Kaluga LLC signed an agreement by Kaluga Region’s Governor Anatoly to-bar chocolate, chocolate paste covers construction of a plant for on construction of a plant for Artamonov and Stankoflot CEO and coffee roasting was signed by manufacturing of PVC hoses within manufacturing of elevator Alexander Andreev. Stankoflot Kaluga Region’s Governor Anatoly Kaluga SEZ. The company selected equipment. For its new facility LLC intends to build a new Artamonov and Agroimpex-Trade the SEZ site in Borovsk District and to be built with an investment of production facility on the Borovsk CEO Marina Golovanova. The intends to invest around 120 million 120 million rubles, the company site of Kaluga SEZ. The plant will chocolate factory will be built at rubles. The plant will manufacture selected a 1-hectare lot within manufacture cutting and auxiliary K-Agro agroindustrial park with hoses for use in a wide variety Rosva industrial park. tools, equipment, high-precision an investment in excess of 100 of industrial segments, allowing metalware. Estimated investments million rubles. The company will some of them to replace imported GC PTM-Kaluga LLC was established in the project are 1 billion rubles. manufacture products equal in hoses with locally-manufactured in Kaluga in 2017. The new plant quality to imported analogues, ones. One of such segments is the with grant the Russian construction Stankoflot is a non-state allowing consumers to enjoy agroindustrial complex (sowing and market access to elevator products engineering company that supports high-quality locally-manufactured harvesting machinery, chemical with competitive prices – a very hi-tech and innovative sectors of products at a competitive price. For and mineral fertilizer dispensers, timely offer with consideration the national economy. over 10 years, Agroimpex-Trade has milking complexes). PVC hoses will of the federal program for been specializing in supply of cocoa also be of high demand in the food replacement of elevators that beans, cocoa products, green coffee, industry, were they are used for exhausted their design service life nuts and dried fruit for use in the pumping of mineral water, juices, of 25 years. Products manufactured food industry to Russia, Kazakhstan, oil and alcoholic beverages. Other by GC PTM-Kaluga (Elevation and Georgia and Belarus. Every year the benefactors include the wood Transportation Machines) will company supplies over 5,000 tons processing industry, hydraulic be supplied to Kaluga, Moscow, of products sourced from more structures, transporters of bulk Leningrad, Novgorod, Bryansk, than 50 countries. Agroimpex- materials, air, gas and corrosive Ivanovo, Tula and Samara Regions, Trade is one of the major importers fluids. St. Petersburg, Moscow, Baikonur of green coffee, holding the 15th and Krasnodar Territory. The plant’s position in the relevant ranking partners include Mogilev Liftmash, for 2016 (GLOBUS VED). In 2017, KZTA, KEMZ, OTIS, TechnoPride, Agroimpex-Trade joined the Russian KONE, Karacharovsky Mechanical RUSTEACOFFEE association tasked Plant, Euroliftmash, Thyssenkrupp with development of the coffee and Koenig Elevator culture in Russia.

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27 INVESTMENTS

NEW RESIDENTS OF KALUGA SEZ 13 investment projects are currently being implemented at the two SEZ sites. In 2017, resident status was received by:

JANUARY: Kronospan Kaluga LLC. The company intends to organize a facility for manufacturing of medium-density wood fiberboard with output capacity of at least 313 thousand m3 and has further plans for manufacturing high-density fiberboard. The new plant will be established at the Lyudinovo site of Kaluga SEZ. Total investments – 17.54 billion rubles.

DECEMBER: Approval of SEZ resident status application submitted by TH MILK INDUSTRY. The company will shortly begin construction of a milk processing complex for manufacturing of up to 1,000 tons of dairy products per day. The facility will be built at the Borovsk site of the SEZ. Over 50% of products will be manufactured from unpasteurized milk produced by the group’s own facilities. Investments in the project initiated by TH Group (Vietnam) – a group specializing in implementation APRIL: The expert council granted to Refcool LLC. The of high-tech agricultural projects, are expected to reviewed and approved to company will build a complex exceed 6.7 billion rubles. applications from Russian for manufacturing of climate TH Group has already established a presence in companies: control and refrigeration Kaluga Region: it is currently building a livestock • resident status was equipment at the Borovsk site complex in Ulyanovsk District and plans to create granted to Innovative of Kaluga SEZ. The range of its farms in Khvastovichi District. In view of this, Composite Technologies LLC – manufactured products will construction of a major plant in the region is a a manufacturer of composite support substitution of current strategic necessity. materials for construction and imports. The company’s products industry. The company chose the have a proven export potential Lyudinovo site of Kaluga SEZ for a and high level of incorporation production facility with capacity of locally-produced raw materials over 3,000 tons per year and and components. Estimated intends to invest over 195 million investments – over 431 million rubles; rubles. • resident status was

SEPTEMBER: The expert council reviewed and approved an application from Russian pharmaceutical company Mir-Pharm Kaluga. Its new plant will be built at the Borovsk site of Kaluga SEZ with a total investment of around 975 million rubles. Construction is expected to be completed in 2019. The plant will manufacture new pharmaceutical drugs for treatment of diseases of the central nervous system and cerebral circulation, as well as products used in cardiology and gynecology.

28 INVESTMENTS

ON JULY 14, the government of invest 250 million rubles in the project. equipping of narrow-specialization Kaluga Region and Italian company Vernipoll S.r.l. is a leader in federal centers. Vernipoll S.r.l. signed an agreement for manufacturing of hospital furniture. The The company offers a wide range implementation of an investment project company has an established presence of technological equipment. In 2008, involving the construction of a plant for in on markets of Eastern Europe, the Vernipoll S.r.l. introduced a new product manufacturing of medical appliances Balkan Region, the Middle East, Africa line, i.e. equipment for perinatal and and equipment within the territory and South America. It is among leaders obstetric centers and surgical blocks. of Kaluga special economic zone with on the Russian market, where apart from industrial production specialization. outfitting of new healthcare facilities The company has selected a 4.8-hectare and restructuring existing ones, the site in Lyudinovo district and intends to company is a supplier in a project for 1042 HA 30% 0% SEZ COST REDUCTION • customs duty • VAT AREA FOR INVESTORS • land tax for 10 years • profit tax for specific types of economic activity for 3 years • property tax for 10 years

“We are consistently improving our proposal for businesses. Last year we were the first among Russian regions with SEZs to establish an expert council to simplify the procedure for acquiring resident status and thus accelerate project growth dynamics. In 10 months of 2017, the expert council held two meetings granting resident status to 4 companies. Another meeting is scheduled for December 2017 to review one more project. The total amount of investments generated from this year’s new SEZ residents exceeds 25 billion rubles. Many residents have completed paperwork stages and proceeded to actual implementation of their projects, while we are continuing to design and build the infrastructure for the Borovsk site of the SEZ. We intend to keep up the pace in 2018, as we are expecting openings of two plants – San Marco Russia LLC and Alkhimet LLC. The Lyudinovo site is almost fully booked by now, with not more than 40 hectares remaining vacant. Thus, our offers will focus on the Borovsk site. Its specifics provide clear advantages for development of high-tech production facilities, including manufacturing of medical equipment and pharmaceutical products. We are currently negotiating with over 30 companies, including about 10 pharmaceutical companies that plan to establish production at the Borovsk site of the SEZ”.

Evgeniy VESELKOV, General Director, Kaluga Special Economic Zone of Industrial Production Type JSC

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MONOTOWNS KONDROVO AND SOSENSKIY: NEW OPPORTUNITIES FOR DEVELOPMENT

Sosenskiy and Kondrovo will receive support from the Monotown Development Fund and the Russian Union of Industrialists and Entrepreneurs.

On October 11, 2017, nonprofit organization Monotown Development Fund and the all-Russian non-governmental organization Russian Union of Industrialists and Entrepreneurs (RSPP) signed an agreement on cooperation.

PROJECTS DEVELOPED FOR MONOTOWNS KONDROVO AND SOSENSKIY APPROVED BY SKOLKOVO EXPERTS

The project for Sosenskiy defended in Skolkovo in Octo- monotown was presented for ber. Its developers – top man- defense at the Skolkovo school agers of the region’s Ministry of management in June of last for Economic Development, year and received high expert Regional Development Agen- appraisals: the monotown cy, municipal entity Town of development program is sup- Kondrovo and Kondrovo-based ported by intentions of actual production plants – made an investors that plan to estab- emphasis on recruitment of lish production facilities at the high-tech enterprises that of- town’s industrial sites. Imple- fer high salaries. They also territory of accelerated social and eco- mentation of the project will be presented proposals for im- nomic development. Skolkovo experts monitored by experts who will provement of tourism, trade recognized the excellent work of their also participate in development and consumer services. Project colleagues from Kaluga Region empha- of mechanisms for financial developers believe that identi- sizing the importance of project integra- and non-financial support. fied objectives can be achieved tion into all regional programs. The project for Kondrovo was by designating the town as a

THE REGIONAL PROGRAM FOR SUPPORT OF MONOTOWNS WAS INITIATED BY THE GOVERNOR OF KALUGA REGION. IN 2017, THE REGION FORMED A PROJECT COMMITTEE THAT COORDINATES THE MONOTOWN DEVELOPMENT PROGRAM

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CREATING A COMFORTABLE URBAN ENVIRONMENT IN MONOTOWNS

17 million rubles of federal budget subsidies for implementation of the program for modernizing of urban environments in monotowns. Co- financing from the regional budget exceeded 18 million rubles. In November 2017, Kondrovo hosted an extended networking meeting with participation of representatives from the regional Ministry for Economic Development, Regional Development Agency, administration and business community of Kondrovo. The meeting was moderated by Skolkovo management school professor Boris Ostrovskiy. The main subject discussed by participants was the development of Kondrovo monotown. Participants formed five groups for practical work on development of project blocks: business development, urban spaces for the community, urban spaces for events, art spaces, In October 2017, heads of regional center for sports and entertainment. ministries for economic development For each of the directions, they came and construction, administrations of up with development strategies, monotowns Sosenskiy and Kondrovo identified potential growth areas took part in an all-Russian video- and offered specific solutions conference organized by the Monotown with consideration of the town’s Development Fond and the Russian industrial, human resource, Ministry of Construction. investment, cultural, historical and Its main subject – summarizing of activity specifics. As noted by Boris interim results of implementation Within its scope, Kaluga Region’s Ostrovskiy, no concept would be viable of the federal program “Creation of a monotowns are currently undertaking without involvement of Kondrovo comfortable urban environment” in repairs of courtyard passes, installing residents in its implementation. 2017 and coordination of plans for 2018. small architectural forms and building The program covers a period of five playgrounds. years and is mandatory for monotowns. In 2017, Kaluga Region received nearly

CREATION OF THE SOSENSKIY TERRITORY WITH ACCELERATED SOCIAL AND ECONOMIC DEVELOPMENT

Regulation No.1370 of November residents and the minimum number of will support diversification of the town’s 13, 2017 establishes a territory with permanent new jobs. economy, reduce its dependence on the accelerated social and economic The regulation was issued by the Russian town-forming enterprise, improve its development in Sosenskiy (Sosenskiy Ministry of Economic Development in investment attractiveness, create over TAD). The regulation defines TAD accordance with the Federal Law “On 1000 of permanent new jobs and attract borders, types of economic activities territories with accelerated social and investments of over 3 billion rubles. qualifying for the special regime, economic development in the Russian minimum volume of investments for Federation”. Creation of Sosenskiy TAD

At the meeting of the council for strategic and project development held in January 2018, 6,7 BILLION RUBLES Kaluga Region’s Minister of Economic Development announced that by 2020 Kondrovo and Sosenskiy would create at least 590 new jobs not associated with their town-forming TO BE GRANTED FOR enterprises. Creation of these jobs will be supported by investments of over 6.7 billion DEVELOPMENT OF KONDROVO rubles, with financing provided within the scope of current Kaluga Region state programs, AND SOSENSKIY from the federal budget and non-budget sources.

31 INFRASTRUCTURE LOGISTICS

FREIGHT VILLAGE VORSINO AND RUSSIAN EXPORT CENTER: FOCUS ON SUPPORT OF NON-COMMODITY EXPORT-ORIENTED COMPANIES

In 2017, Kaluga customs registered goods declarations from 915 participants of foreign economic activities. In 2016, the number was 675. Growth in the number of players involved in international trade is associated with the increase in the number of container trains arriving to the Freight Village Vorsino terminal within the scope of the New Silk Way project. In comparison with 2016, the volume of import declarations increased by 18%, export declarations – by 35%. Cargo turnover increased by 22%. Foreign trade turnover exceeded $4 billion, gaining 28% against 2016. The federal budget received 48 billion rubles from these transactions.

In March 2017, Freight Village and logistics center. week. According to an analysis Kaluga North and Russian Export Thus, Freight Village Vorsino has performed by the Russian Export Center signed an agreement on become a center for consolidation Center, the project has already cooperation in implementation of goods from various consignors. generated interest among of the pilot project for support of The route’s high demand among approximately 150 companies. non-commodity export-oriented export-oriented companies The first container train departed companies in shipment of their resulted in an increase of the for China on April 5, 2017. cargo from the Vorsino transport frequency of train runs to two per

FREIGHT VILLAGE FREIGHT VILLAGE KALUGA IS CURRENTLY RU HAS TWICE WON THE BIGGEST MODERN THE EUROPEAN DISTRIBUTION HUB IN PROPERTY AWARDS CENTRAL RUSSIA. – A CONFIRMATION OF HIGH IT INCLUDES TWO PROFESSIONALISM TERMINALS IN AND CONSIDERABLE VORSINO AND ROSVA COMPETITIVE WITH A COMBINED ADVANTAGES OF CAPACITY TO PROCESS FREIGHT VILLAGE OVER 500,000 RU ON THE RUSSIAN CONTAINERS PER YEAR. MARKET.

“The agreement with Freight Village Vorsino – one of the most advanced transport and logistics centers in Russia – was a step towards creation of optimized conditions for fast delivery of products to foreign customers, which is currently the most important objective in the field of export support”.

Petr FRADKOV, General Director, Russian Export Center JSC

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Kaluga-Dalian international logistics A new stage in development of Vorsino-Dalian corridor, part of the New Silk Way container export services began with the opening project, began operation in Kaluga of the Vorsino- Chengdu-Vorsino looped railway Region in 2016, with trains travelling route. The service was launched by RR Logistics JSC between Vorsino railway station and and Russian Export Center JSC within the scope of Chinese port Dalian. On October 13, the project for support of non-commodity exports On January 23, 2018, the Vietnamese capital 2016, the station received the first to China. The first train to Chengdu, with 41 40’ received the first Russian container train that container train from Mumbai (India). containers, left Freight Village Vorsino terminal on departed from Freight Village Vorsino terminal September 13 and arrived at its destination in 14 on January 3. The voyage took 20 days (half the days, passing through the Russian border post in time of the sea route). Delivery was performed The journey took 23 days, which is Naushki and Mongolian border post in Zamyn-Uud. within the scope of the bilateral cooperation twice as fast in comparison with the On November 10, 2017, RR Logistics announced the agreement between Russian Railways JSC traditional sea route through the Suez beginning of scheduled operations of the Vorsino- and Vietnamese Railways SC and signified the channel to St. Petersburg port. Chengdu export train. Russian-manufactured goods actual launch of the international transport depart to China each Friday at 21:00. corridor Vietnam-Russia-Vietnam.

SUBSIDIES FOR TRANSPORTATION OF EXPORTED GOODS

At the end of 2017, the Russian Export Center made an announcement regarding the possibility of partial compensation of exporters’ costs associated with transportation of goods via export routes Vorsino (Kaluga Region) – Dalian (China), Vorsino (Kaluga Region) – Shilong (China) and Vorsino (Kaluga Region) – Chengdu (China). The compensation will cover up to 50% of actual costs and cannot exceed 50% of the value of exported products.

“As we expected, the project progressed to a regular schedule just one month after the launch. The container train departing from Vorsino terminal delivered Range Rovers to China. Diversification of cargo flow composition is one of the key directions for the project’s development. Kaluga Region has clearly introduced a service that is of high market demand”.

Vyacheslav VALENTIK, General Director, RR Logistics LLC

33 INFRASTRUCTURE ROAD ENGINEERING

“Road builders are facing major new goals. This includes doubling of construction rates and expanding application of innovation materials and technologies. Our plans for the next few years are to, firstly, ensure the preservation and improvement of the existing road network and, secondly, to complete the major project for construction of a ring road around the region’s center. These are serious tasks. However, I have full confidence that our plans will be fulfilled”.

Olga IVANOVA, Minister of Road Facilities of Kaluga Region

The project has strategic SOUTH BYPASS

significance for the rapidly In 2017, within the scope of construction of the south Kaluga bypass - a major object of developing region. special significance for social and economic development of the country and region - builders completed works on two segments of the highway, development of transport junctions near Puchkovo, Koliupanovo and Annenki, and six fly-over crossings. One of the most important stages in project implementation was completion of the bridge across the .

The highway will connect existing motorways into a single ring around the regional center. The South Bypass will redistribute up to 80% of traffic and redirect more than 7 million tons of transit cargo transportation to bypass the city. The highway will also bypass all settlements. The general contractor in the project is Moscow Engineering-Construction Company JSC. The price of works in accordance with the state contract is 10,255.506 million rubles.

ROAD REPAIRS

A total of 168.2 km of regional , Khvastovichi and Meschovsk • 23.6 km of the Lyudinovo-Zhizdra – motorways, including 84.4 km of districts within the scope of Miratorg’s M-3 Ukraine motorway in Zhizdra and roadbeds, was repaired in 2017 within the investment project; Lyudinovo districts; scope of the transport strategy of Kaluga • repair of 5 segments - a total of 27.3 • 16.3 km of the M-3 Ukraine – Region and the federal special-purpose km - of the Kaluga- motorway in Sudimir-Khvastovichi-Tereben and program “Consistent development of Dzerzhinsky and Medyn districts; Tereben-Yelenskiy-Klyon motorways in rural territories up to 2020”, including: • 23.7 km of the Bryansk-Lyudinovo- Khvastovichi district. • reconstruction of 11.4 km of Kirov – A-130 Moscow-- access roads leading to agricultural Roslavl motorway in Lyudinovo and Kirov production and processing facilities in districts;

34 INFRASTRUCTURE

INNOVATIONS AND QUALITY DAYS TECHNOLOGIES

In the summer of 2017, the Ministry Within the scope of the of Road Facilities of Kaluga Region, international forum “Road complex in Meschovsk district Kalugadorzakazchik, representatives construction in Russia: of Kaluga Region. Construction of municipalities, mass media and innovations, technologies, quality” of the complex is supervised by the People’s Front implemented the that took place in Kaluga in May the Federal Road Agency. The Quality Days initiative involving a 2017, representatives of specialized project will be implemented joint inspection targeted at prompt agencies and major organizations in public – private partnership elimination of identified defects in operating in the field of road format. The facility is intended repairs and maintenance of motorways. construction reviewed application for testing of the most of innovation technologies in road advanced materials developed The taskforce audit covered motorways design, construction, repair and for building and reconstruction in Kaluga, Medyn, Dzerzhinsky, maintenance. of motorways and artificial road Sukhinichi, Lyudinovo, Borovsk, Zhizdra The forum program included structures. and other districts. the ceremony for laying of the first stone of the future road-test

Kaluga Region is currently among the five regions that introduce intelligent transport system technologies. Application of BIM-technologies in construction of motor highways already ROAD MAINTENANCE ELECTRICAL ROAD LIGHTING resulted in reduction of

In February, Kaluga hosted a seminar Since 2012, the regional Ministry of the accident rate “Innovative approaches to road Road Facilities has been implementing maintenance: technologies, machines, a program for equipping segments of equipment, reagents, environment”. motorways passing through settlements by 15%. The event supported by the Russian with artificial lighting. While in 2012 Association of Regional Road only 500 m of motorways were provided These technologies Maintenance Agencies was attended with required lighting, by 2017 the figure also help reduce road by representatives of federal and increased to 8 km. The total length of new regional road maintenance authorities, lighting lines with sidewalks built over the maintenance costs and municipalities, contractors, design five years, including 2017, is 35 km. the frequency of their bureaus, research and educational organizations dealing with road repairs. facilities, as well as manufacturers of specialized equipment and materials. According to the Federal Road Agency, 87% of federal motorways in Kaluga Region have been conditioned Participants discussed issues of road to required standards. In 2017, the number of traffic accidents on federal highways declined by 17.5% network management and efficient against 2016. In 2018, a further 5 billion 706 million rubles will be allocated for development of the use of financial resources allocated regional motorway industry from the federal budget (same as in 2017). Of the amount, 4 billion 477.65 for maintenance of road facilities in million rubles will be spent on construction, repair and maintenance of federal roads, and 1 billion 229.8 Russian regions. million rubles will be used for subsidies and inter-budget transfers.

35 INFRASTRUCTURE CONSTRUCTION SECTOR

“In 2016, Kaluga Region commissioned 737 thousand m2 of housing. For a region with a population of just over a million, this adds up to 0.7 m2 per person, which is equivalent to the global average for developed countries. In 2017, we commissioned 864 thousand m2. By volume of housing construction per capita, our region is the third in the Central Federal District and the fourth in Russia. However, the construction sector is about more than building housing. It covers construction of social and cultural facilities, educational institutions, sports complexes and roads. The realities of current times essentially force us to focus on social objects. Kaluga Region’s residents have higher demands: they don’t want to buy housing in concrete jungles dominated by high-rise buildings, with no schools, clinics, sports facilities or parks nearby. There is a demand for quarters for convenient and comfortable living. Therefore, new micro-districts are designed with these demands in mind”.

Egor VIRKOV, Minister of Construction, Housing and Utilities of Kaluga Region

1st PLACE ACCESSIBLE AND COMFORTABLE HOUSING in CFD and 18th in RF by volume of completed 864 > 421 construction works per capita thousand m2 thousand m2 of housing commissioned built by private in 2017 developers in 2017 rd 3 PLACE 114% 121% th in CFD and 4 in RF growth growth by volume of housing against 2016 against 2016 construction per capita

3rd PLACE in CFD and 15th in RF by growth rates of completed construction works

3th PLACE in CFD and 14th in RF by growth rates of housing construction

36 INFRASTRUCTURE

GROWTH OF CONSUMER DEMAND HOUSING FEDERAL SPECIAL-PURPOSE PROGRAM

Construction is in progress of another kindergarten in Chizhovka village (Vesnushki) and a municipal through-street of city significance in Zaovrazhye district of Obninsk.

30% 30.5% revival of consumer growth of mortgage demand for housing in 2017 lending in 2017 (against 2016) (against 2016)

10.5% 1.8 points average interest reduction of the rate for ruble- interest rate in 2017 denominated (against 2016) mortgage loans in 2017

1 KINDERGARTEN, SHOPINO ROAD 145 km commissioned in 2017 of gas pipelines built in 2017

40 in 11 objects districts of gasification installation works in commissioned in 2017 progress on 20 gasification sites

37 CONSTRUCTION OPENED IN 2017 CULTURAL DEVELOPMENT CENTER IN

A Cultural Development Center opened in Tarusa in March 2017. The modern complex with an area of almost 1,500 m2 includes a multimedia library, a children’s play area, a multifunctional 144-seat hall with a convertible podium and studios for arts and crafts, and is currently used as a venue for exhibitions, plays, film screenings and creative workshops. The center was built in accordance with the Russian President’s Decree “On measures for implementation of the state social policy”, within the scope of which the Russian Government approved a program for creation of cultural development centers in minor towns and rural areas. The design of the Tarusa center was based on project documentation for the cultural development center in Belgorod Region that was included in the register of standardized documentation of the Russian Ministry of Construction. Construction works were financed from the federal budget and the consolidated budget of Kaluga Region.

HEALTH AND FITNESS CENTER IN BOROVSK

In August, a new health and fitness center was commissioned in Borovsk. The complex consists of a universal gym, two adjacent two-level administrative and utility blocks and a two-level entrance block. The 1,242.7 m2 gym is equipped with stand seating for 210 viewers. Administrative and utility blocks incorporate locker rooms and showers with access for people with limited mobility, medical quarters, fitness halls, cafes, bathrooms, a foyer, a commentators’ box, VIP-stands, administrative offices and technical facilities. The health and fitness center is intended for practice, exercise and regional competitions. Construction was started in 2013 within the scope of a United Russia party project. Similar complexes are already operating in Tarusa, Medyn and .

38 CONSTRUCTION

URBAN DEVELOPMENT

In 2017, Kaluga Region took part public spaces. Thus, Kaluga replaced a in implementation of the priority market site with a new city park with national project “Creation of a an inclusive children’s playground. comfortable urban environment”. Information about the three best The program extends up to 2022 improvement projects (art garden and is targeted at improvement of and courtyard on Lunacharskogo St. Russian cities. Its main objective is in Tarusa and new city park in Kaluga) to develop a new attitude towards was submitted to the Russian Ministry urban infrastructure, to create urban of Construction for its competition of brands emphasizing the uniqueness of the best urban development practices. each town and city. A significant role The region’s urban improvement plans in implementation of the program is were supported by 262 million rubles assigned to residents of participating from the federal budget. Overall, cities, whose wishes are of key with consideration of regional budget importance in development of urban subsidies, the amount invested in improvement plans. urban development in 2017 was There are currently 57 settlements around 545 million rubles. Co- with populations over 1,000 in Kaluga financing provided from the regional Region; 22 of them participated in budget was over 280 million rubles. the program in 2017. This resulted in improvement of 357 yards and 41

PREPARATIONS FOR THE FIFA WORLD CUP 2018

Within the scope of preparations for the 21nd FIFA world cup, Kaluga built two new training facilities (6 hectare and 3.5 hectare) within city limits. Both were designed with a view of maximum preservation of the existing landscape.

Sports fields with dimensions meeting FIFA requirements are covered with natural grass and equipped with advanced underground drainage and sprinkling systems. The auxiliary area along the perimeter is also grass- covered. Administrative and utility blocks include locker rooms, a conference hall for 100 people, first aid station, personnel quarters and other necessary facilities. To ensure that Kaluga residents get to fully experience the atmosphere of one of the main global sporting events, the fields were equipped with stalls for up to 500 viewers and parking lots that include special areas for people with disabilities offering direct unhindered access to the stadium that is separated from general access ways to the field.

39 TOP EVENTS COMPETITION POLICY

REFORM OF CONTROL AND SUPERVISION ACTIVITIES

In 2017, within the scope of implementation of the priority Participants of the program “Reform of control and supervision activities” and to first public discussion achieve targets defined by the relevant model, the Ministry of of compliance Competition undertook considerable efforts to improve control enforcement and supervision, incl.: practices of the regional Ministry of Competition and public hearings intended • creation of a designated section on the • development of criteria for assignment regional department of to raise the awareness official website with relevant information of various risk categories (hazard grades) the Federal Service for of the entrepreneurial for controlled subjects, incl. mandatory to controlled subjects (objects); Supervision of Consumer community with regard requirements applicable to each type of • approval of requirements to registration Protection and Welfare to available information control and checklist forms; of controlled subjects (objects). held in October 2017 resources of federal and • development of efficiency and summarized results for regional supervisory productivity targets for state supervision 2017 and identified key bodies will be held on a agencies; objectives for 2018. Such regular basis.

PRODUCT OF KALUGA STATE SUPPORT OF MOBILE TRADE

In 2017, rights to use (four types of soft cheese); the “Product of Kaluga” • Milk Assets LLC trademark for two years (Kaluzhskaya Zorka was granted to 27 products yoghurts); manufactured by six • PF Kondrovo Bakery organizations, incl.: LLC (Darnitsky bread and • SAPK-MOLOKO LLC Kondrovskaya Astra butter (Traditional butter 82.5%, six cookies); types of semi-hard cheese, • Bakery JSC (Nareznoy four types of flavored cream In 2016-2017, supported pavilions and five mobile bread and Kaluzhskoye Testo cheese); by state subsidies, Kaluga shops to organize trading in pastry). • GRAND LAITIER LLC Region’s entrepreneurs the region’s remote areas. acquired four ice-cream

40 TOP EVENTS

BUY FROM KALUGA

In 2017, the region held the traditional Buy from Kaluga review competition. The list of participants included 25 economic subjects: • 8 retail organizations selling Kaluga- manufactured products in the category “Leader of Kaluga product sales”; • 3 organizers of markets and fairs in the category “Leader of Kaluga product sales through retail markets and fairs in Kaluga Region”; • 14 manufacturers in categories “Product of the year” (47 products) and “Novelty of the year” (28 products).

Awards were presented to 24 economic subjects: • 14 manufacturers in categories “Product of the year” (29 of 47 products) and “Novelty of the year” (22 of 28 products); • 10 retailers (6 stores, 2 shopping centers and 2 fairs) in the category “Leader of Kaluga product sales”.

During the year there were 19 events The main result of the competition Current shares of locally-manufactured organized within the scope of the was the signing of supply agreements products in turnovers of retail chains are: competition, including 13 local product that will lead to increases of shares of tasting exhibitions at stores in Kaluga locally-manufactured products in the 80% – bread; and throughout the region, including region’s retail chains. Thus, Magnit chain 50% – milk; Pyaterochka, Magnit, Ferma, Metro and now sells Remputmash-agro LLC dairy 60% – sausage products. Eco Bazar outlets, and a regional Meat products and has extended its assortment Festival. of Optina agroindustrial firm’s products.

CENTRALIZATION OF PROCUREMENT

FOR PURPOSES OF PROCUREMENT in progress with municipal buyers as well. PROCESS STANDARDIZATION, It is expected that most of them will also EFFORTS WERE UNDERTAKEN IN 2017 adopt the document in 2018. TO COMPLETE CENTRALIZATION OF PROCUREMENT ACTIVITIES OF LEGAL Introduction of Indicative Regulations ENTITIES COVERED BY FEDERAL already resulted in: LAW NO. 223-FZ “ON PROCUREMENT OF GOODS, WORKS, SERVICES BY • standardization of procurement in CERTAIN TYPES OF LEGAL ENTITIES” accordance with federal law No. 223-FZ DATED 18.07.2011. (introduction of uniform methods and procedures of procurement, electronic This work was started in 2016 on procurement procedures, development instructions of Kaluga Region’s Governor. of a restricted list of grounds justifying The Ministry of Competition joined forces procurement from a single supplier); with the Federal Antimonopoly Service Department for Kaluga Region to develop • consolidation of procurement efforts to Indicative Regulations on procurement reduce buyer costs; activities of legal entities covered by federal Law No. 223-FZ. • improvement of transparency and competition in procurement. In 2017, Indicative Regulations were adopted by 100% of regional buyers. Work is

41 FACTS AND FIGURES AGROINDUSTRIAL COMPLEX

“Comprehensive support of the agroindustrial complex has contributed to improvement of the investment climate in this sector. Investments and loans received with active state support allowed Kaluga Region’s farmers to enter the innovative and technological breakthrough stage leading to increases in production and competitiveness of Kaluga-manufactured products”.

Leonid GROMOV, Minister of Agriculture of Kaluga Region

219 45 750 101 000 agricultural food manufacturing farms private plots enterprises and processing enterprises

AREA 3.7% 3.5% growth in agricultural average annual organizations 1,145.2 856.8 growth of gross thousand hectares thousand hectares agricultural output in 18.2% of agricultural land in of ploughlands 5 recent years farms total

x 3.8 41 344.3 215 130% growth of labor billion rubles thousand thousand increase of vegetable productivity in the value of gross hectares tons production in 2017 agroindustrial complex (against 2016) agricultural output regional ploughlands of grain produced in in 5 recent years in 2017 in 2017 region in 2017

x 4,6 107% 100.6% 132% growth growth increase against growth against of salaries against 2016 previous year previous year

42 FACTS AND FIGURES 1st PLACE in CFD and 3rd in RF by growth rates of milk production

296 thousand 110% tons of milk growth against same produced in 2017 period of 2016

110.6 133.5 thousand tons million of meat, including poultry, eggs produced produced in 2017 in 2017 108.6% 103.6% increase against increase against 2016 2016

WITHIN THE SCOPE OF IMPLEMENTATION OF MEASURES FOR CONSISTENT DEVELOPMENT OF RURAL TERRITORIES IN KALUGA REGION IN 2017:

90 1 6.9 km 1 8 rural families, sports facility of gas supply road social objects Including 64 young with an area of with length of built with funding from 2 pipelined families and young 0.8 thousand m built in 3 rural 2.4 km various grants specialists built and/ commissioned settlements or acquired 5,000 m2 of housing

43 EVENTS OPENED IN 2017

RUSSKAYA KREVETKA LLC – THE ONLY KING PRAWN MANUFACTURER IN RUSSIA

ROBOTIZED COMPLEX AT PARSHIKOVA FARM

On July 1, Vasily Parshikov and 9 heads of young kettle opened a robotized livestock purchased two Lely Astronaut complex at his farm in robotized systems to support Babynino District. The farm daily milk production of up to In June 2017, Russkaya Krevetka LLC to accommodate up to 30,000 shrimps. head joined the program for 15 liters per cow. The farm’s sold its first batch of nearly 1 ton of Shrimp larvae spend 40 days in the development of family- produce is sold directly to refrigerated shrimp to restaurant incubator’s protected environment and owned livestock farms in consumers and supplied for chains. The shrimp-growing project are then released into common pools. 2016 and further received a further processing. Upon was launched in Maloyaroslavets The company is currently undergoing grant of 15 million rubles for achievement of design District in 2016. Russkaya Krevetka is the stage of rapid development: from construction of a livestock capacity, the milking herd currently the only company in Russia the beginning of the year, it has grown complex. The total amount will consist of 140 cows and that produces Pacific white shrimp. 2 tons of shrimp. In 2018, the company invested in the project was annual milk production per Shrimp larvae for further breeding plans to significantly expand its 50 million rubles, including cow will reach 5000-6000 are imported from Brazil, Indonesia production facilities achieving annual 35 million rubles of the liters. and USA. production levels of 30-35 tons and is family’s own funds. The farm considering possibilities for opening that currently owns 60 cows The company has built hangars with 39 branches in other regions of the salt-water pools and has an incubator Russian Federation.

AGROPROM LAUNCHES ORCHARD-REVIVAL THE BIGGEST PROJECT RABBIT FARM OPENS On November 14, AgroProm LLC presented its orchard development IN KALUGA project in Sukhinichi District. The REGION investor intends to revive the trade by creating intensive gardens that will start bearing fruit from the third On April 18, Anna Vysotskaya opened system of genetic control and artificial year. This will support rapid growth of to support orchard planting. the biggest rabbit farm in Kaluga insemination. The project also industrial harvests and improvement Region. As a participant of the special- included construction of a slaughter of the project’s economic efficiency. In Meschovsk District, AgroProm purpose program for development unit with capacity to process 500 The company owns 600 hectares of LLC implements its project through of family livestock farms, the farm heads per shift. The farm plans to land, 95 of which were used to plant Sadovod LLC, which owns 360 hectares head received a grant of 8.5 million grow and sell over 55 thousand of intensive gardens in spring of 2017, and of land. Plans for spring of 2018 include rubles that was used to build and merchantable rabbits and has already a further 70 – in fall of 2017. The project planting of an intensive orchard on equip the rabbit farm complex. The acquired 500 doe rabbits of the hiplus in Sukhinichi District is implemented a 200-hectare area. In the next few total amount invested in the project high-productivity meat breed. within the scope of the governmental years, the company intends to expand was over 40 million rubles, including program “Development of agriculture its operations beyond fruit growth by over 30 million of the farm’s own and regulation of agricultural produce building a fruit storage facility and funds. The high-tech rabbit farm is and materials markets in Kaluga processing plant. equipped with automated systems Region". Within the scope of the for feeding, watering and manure program, the regional Ministry of removal. The farm has established a Agriculture allocated 16 million rubles

44 EVENTS

MIRATORG AGROINDUSTRIAL HOLDING ACTIVE IN ELEVEN DISTRICTS OF KALUGA REGION

Bryansk Meat Company LLC, part of the Miratorg had a cattle stock of 3,903 heads. In Babynino agroindustrial holding, is currently implementing District, the company owns a lot of 6 thousand projects in 11 of the region’s districts. In 2015- hectares, where it plans to begin construction 2016, the company commissioned five livestock of 3,000-head livestock complexes in 2018. In complexes in Kirov, Khvastovichi, Spas-Deminsk, the same year it will start building a livestock Zhizdra and Kuybyshevsky districts of Kaluga facility in Kozelsk District. 1,900 hectares owned Region. In 2017, the five facilities accommodated by Miratorg in Meschovsk District will be used as 22,233 heads of cattle (+9,921 against the same farmland. The holding has already acquired 1,280 period of 2016). Miratorg also acquired 23.4 hectares of agricultural land in District thousand hectares in Sukhinichi District and began and intends to buy a further 6,000 hectares in the construction of livestock complexes in three of its nearest future. settlements. As of 01.11.2017, the three new sites

KALUZHSKAYA NIVA LLC OPENS LIVESTOCK COMPLEX

On November 7, Kaluzhskaya Niva LLC held including 2 billion received as a loan from an opening ceremony for its major livestock Rosselkhozbank. complex to accommodate 2,800 heads of Immediately after the opening of the Holstein breed cattle in Aristovo village complex, the company held a first stone of Ferzikovo District. Construction of the laying ceremony for another 2,800-head complex began in February 2017, and the complex in Sugonovo village (Ferzikovo first batch of cattle was delivered in August. District) that will be built with a further The company has so far purchased 3,360 investment of 2.9 billion rubles. of Holstein heifers. The complex structure includes three cattle barns for 850, 900 Kaluzhskaya Niva LLC is an EcoNiva group and 1050 heads, a maternity barn, a silo agricultural company operating from 2006. area and five manure lagoons. The livestock The company owns 22 thousand hectares NEW CAPABILITIES OF PRODO KALUZHSKAYA complex is equipped with robotized units of land (8,300 hears of cattle). Its principal POULTRY FARM and refrigeration blocks with 96-ton activity is dairy cattle farming. The company capacity and has an annual output of 26,000 produces 210 tons of milk per day and is a PRODO Kaluzhskaya Poultry Farm LLC (Dzerzhinsky District) has been tons of milk. The total amount invested breeding farm for Brown Swiss and Holstein operating since 1985. It was initially designed to produce 10 thousand in the facility is over 2.5 billion rubles, cattle breeds. tons of poultry per year. In 2017, the factory produced 62 thousand tons of poultry – 44.5% more than in 2012. PRODO Kaluzhskaya Poultry Farm’s current share in the region’s poultry output is 47%. In 2018, the company plans to complete the project “Modernization, restructuring and expansion of existing production facilities” for introduction of the most advanced technologies for feeding, incubation and raising of chickens. In the same year, it also plans to introduce the FSSC 22000 food safety management system. The system is coordinated with the Global Food Safety Initiative’s (GFSI) program for international markets and will allow the farm to achieve a higher level of competitiveness. Within the scope of its modernization efforts, the company assigned great significance to environmental issues: it introduced a technology for processing of poultry litter into bio-fertilizer, developed a project for construction of a biogas boiler house and modernized its sewage treatment facilities. The total amount invested by PRODO Kaluzhskaya Poultry Farm in development is 5.3 billion rubles (including 4.9 billion rubles within the scope of the modernization program launched in 2012), including 2.75 billion rubles in loans. Apart from its main product (whole chickens and semi-finished poultry products), the company currently produces 20 varieties of sausage products, rolls and smoked products that generate high consumer demand.

45 FACTS AND FIGURES LABOR MARKET AND SOCIAL POLICY

“The labor market of Kaluga Region has maintained stability for many years, primarily due to the active regional policy for attracting investments. Professional skills and high qualification of employees are extremely important for modern business. Our region is one of the first in the country to introduce the national system of qualifications. In 2017, Kaluga Region established an agency for qualification development. Their work in this priority direction is conducted in close collaboration with the regional employer’s union – the Union of Industrialists and Entrepreneurs of Kaluga Region. Prompt fulfillment of all social obligations to residents of Kaluga Region definitely remains a key objective in the field of social security." Pavel KONOVALOV, Minister of Labor and Social Protection

SALARIES INFORMATION SUPPORT

A lot of work has been done last year supplied by authorities, non-governmental to prepare for the 2018 introduction of a funds and organizations offering social aid. large-scale federal project “Single state The system will raise citizen awareness, rd social security information system”. improve the efficiency of governmental 3 PLACE Kaluga Region was designated as a pilot management in the social sphere and in CFD and 28th in RF region for priority launch of the new global secure the application of the targeting in federal resource that will consolidate providing social support. by average monthly salary information about support measures, (1st place – Moscow Region) social guarantees and payments from budgets of all levels. Information will be

10,390 rubles minimal monthly wage in Kaluga Region (since 01.09.17) SOCIAL PARTNERSHIP

1.3 times In 2017, Kaluga Region’s organizations In March, the regional council of registered no collective labor disputes. trade unions, the regional union of higher than the federal minimal 01 This is the result of efforts undertaken 03 employers and the government of wage by all parties in the social partnership, Kaluga Region signed a trilateral including the Ministry of Labor and agreement for 2017-2019. The Social Security of Kaluga Region, whose document defines specific measures specialists maintain a continuous for improvement of life quality and dialogue with heads of social labor labor conditions, and creation of new divisions of Kaluga-based enterprises. jobs through production development. 32,684 rubles average monthly gross salary in the region (January-August 2017) 15 resolutions targeted at The region has ongoing sectoral improvement of the levels of agreements: employees in 02 employee social security were 04 sectors like education, healthcare, adopted in 2017 by the regional forestry, culture and tourism trilateral commission for regulation receive additional protection, 4.5% of social labor relations. benefits and guarantees to those growth against same established by labor legislation period of 2016

46 FACTS AND FIGURES

EMPLOYMENT ASSISTANCE

3rd PLACE AMONG CFD 0.59% 4.9 thousand REGIONS BY LEVEL average monthly registered residents granted unemployment in Kaluga Region status of unemployed OF REGISTERED UNEMPLOYMENT for 9 months of 2017 in III Q of 2017 (III Q 2017) 0.72% 6.4 thousand for 9 months of 2016 for 9 months of 2016

> 4,000 VACANCIES offered to candidates, including from quotas for persons with limited capabilities

> 2,000 VISITORS, INCL.: 49% 30% 46% The program of the annual Professions Festival held young people specialists with with higher in October of last year included a vacancy fair organized aged under 29 secondary vocational education by the Ministry of Labor and Social Security of Kaluga education Region, the Kaluga Employment Center and Jobs for You – Rabota.ru.

The interregional infor- Article 27 of the UN Con- mation and methodology vention”. The conference seminar for exchange of ide- was organized within the as, principals and methods scope of the German – Rus- for development of an ac- sian project “Involvement of cessible environment held persons with health-related in Kaluga last September work limitations”. In three reviewed relevant issues of recent years, Kaluga Region the state policy in the field has been a leader among of employment of persons CFD regions by employment with health-related limita- of persons with health-re- tions in capabilities. lated limitations: In October, Tsiolkovsky Kaluga State University or- ganized an international conference “Provision of em- ployment to persons with 62% health-related work limi- of those who applied to the tations in Russia and Ger- employment agency got jobs in many in accordance with 10 months of 2017

47 EVENTS

CAREER GUIDANCE

Graduate of the Year is an annual Regional education fair. Kaluga Region is one of the few regional professional orientation Participants of the 2017 event Russian regions to develop and launch event. Each pupil in Kaluga Region included 15 higher educational its own professional orientation gets a unique opportunity to visit the institutions and 18 vocational portal in 2017 (http://profi40.ru/). The region’s companies that are of interest, training organizations. resource not only provides assistance while employers get the opportunity is identifying potential directions of to demonstrate their competitive professional activity, but also offers advantages to future specialists. regional labor market information.

SOCIAL SERVICES

WITH THE FAMILY OVERCOMING TOGETHER VOLUNTEERING FOR CHILDREN

In 2017, with assistance from the In 2017, the region continued the In 2017, Kaluga Region held the VI Foundation to Support Children, implementation of its subprogram All-Russian Volunteering for Children the region began implementation “With the family” within the scope Initiative. Its goal is to promote work of measures under the “Overcoming of the “Family and children” state targeted at recruitment of volunteer together” project targeted at program. The subprogram is targeted at resources to provide assistance to prevention of criminal actions systemic transformation of efforts for children and families with children and resocialization of minor rehabilitation of handicapped children that are in difficult circumstances. The delinquents. The amount expected and children with health-related same goal is pursued by the regional to be recruited for program limitations. The project is financed by hotline for psychological assistance to implementation in 2017-2018 is 17.78 the Foundation to Support Children in children and their parents (nationwide million rubles. Difficult Life Situations. The amount children’s crisis service 8-800-2000-122). of financing received in 2016 was 26.1 In September, Kaluga hosted a social million rubles, in 2017 – 5 million rubles. initiative entitled Distance of Trust.

48 EVENTS

START INTO THE FUTURE

Kaluga Region’s register of suppliers of social services currently includes seven non-governmental organizations, including the Start into the Future Center for Social and Legal Assistance to Children. The non-profit organization coordinates the project “Mentors: not nearby, but together!” launched in Kaluga Region in October 2017. The project was approved by the supervisory board of the Agency for Strategic Initiatives to Promote New Projects. The purpose of the project is to establish a system of social mentorship that would allow orphans and children deprived of parental care to obtain support in resolution of everyday issues. Mentors recruited by the program are heads of governmental agencies, TOGETHER FOR CHILDREN, businesses, professionals of culture, science, education and sports, including Kaluga Region’s Minister of Finance WITH CHILDREN! Valentina Avdeeva, Minister of Education and Science Alexander Anikeev, Minister of Labor and Social Security Pavel Konovalov and Minister of Agriculture Leonid Gromov. In September, the VIII All-Russian Expo and Among those receiving mentorship are former residents of Forum Together for Children, With Children orphanages in Azarovo and Kondrovo. organized by the Foundation to Support Children held a regional exhibition entitled Care for the Family is Care for the Future. Based on results of open voting of the event’s guests and members of the foundation’s expert club, Kaluga Region was awarded a diploma of professional recognition as a leader in the category “Comprehensive regional model for prevention of social orphancy and family integration of orphans and children deprived of parental care”.

YOUNG MOTHER PROJECT

The project was initiated by the Start into the Future Center for Social and Legal Assistance to Children and is targeted at providing assistance to pregnant women and young mothers that are orphans or children deprived of parental care. The main objective of the project is to prevent secondary social orphancy. On November 9, the project opened a sewing workshop in Kaluga were young mothers – former residents of orphanages and orphan boarding schools can master sewing and acquire a needed profession by learning several hours a day three times per week. FAMILY OF THE YEAR 2017 The sewing workshop project was presented to the Russian President at the Community active citizens’ forum. Vladimir Putin approved the initiative: “It is important for The Grabenko family from Borovsk District received a woman, a young mother to be able to promptly resume the highest award in the “Young family” category at labor activities, not to lose her qualification or to acquire a the second All-Russian competition Family of the Year new one. It is extremely important for the family and the 2017 organized by the Foundation to Support Children demographic situation in general”. The sewing workshop In Difficult Life Situations. project also received support in the form of a presidential grant.

49 EVENTS HEALTHCARE

“Our objective is to contribute to reduction of morbidity and mortality rates and to the longevity and quality of people’s lives. To achieve this, we need to improve the accessibility and quality of healthcare, to teach citizens to properly care about their health, and to promote a healthy lifestyle. Our priorities are provision of the healthcare industry with highly qualified specialists, advanced IT technologies, new methods for disease prevention, examination and treatment of patients. Out plans include development of rehabilitation centers, promotion of mortality rate reduction projects, introduction of reproductive technologies and improvement of healthcare service provided to elderly and disabled people. Special significance will be assigned to motherhood and childhood, first aid and emergency medical assistance, assurance of access to pharmaceutical drugs”.

Konstantin BARANOV, Minister of Healthcare of Kaluga Region

KALUGA REGION REGISTERS A 50% REDUCTION IN INFANT MORTALITY

In 2017, infant mortality in assistance to pregnant women Kaluga Region was half the rate and newborns, including infants of 2016. As for dynamics, in 2015, with extremely low weight. Before infant mortality was 8.7 per 1000 establishment of the center, newborns, in 2016 – 6.8, and in Kaluga Region did not have a the 9 months of 2017 – 3.9, which third-group obstetric hospital is 20.4% lower than the average (with an anesthesiology and rate of 4.9 for the Central Federal intensive care unit for women, District and 26.4% lower than the intensive care and therapy facility nationwide average of 5.3 infants for newborns, neonatal pathology per 1000 newborns. Specialists unit for newborn and premature link the positive infant mortality babies (II stage developmental dynamics to the 2016 opening of care), remote obstetric center a perinatal center at the Kaluga with field anesthesiology and Regional Clinical Hospital. The intensive care brigades). center was built within the scope of a federal program, and its commissioning facilitated the regional launch of a three-tier system for provision of medical

NEW CLINIC BEGINS OPERATION IN KOSHELEV MICRO-DISTRICT

In 2017, Kaluga City Hospital No.5 opened an outpatient department in Koshelev-Project micro- district at the request of its residents and to improve accessibility of medical aid for adult right-bank residents. The outpatient department has district physician and obstetrician-gynecologist reception facilities, procedural, vaccination and examination rooms, sample collection unit and a day hospital.

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REHABILITATION CENTER OPENS AT SOSNOVAYA ROSCHA HOSPITAL

City hospital No.2 Sosnovaya Roscha opened a children’s rehabilitation center and a department of rehabilitation of patients recovering from acute cerebral circulation disorders. Rehabilitation units are equipped with all necessary technologies and intended for patients that suffered various injuries and underwent neuro- and other surgical procedures. The center will provide services to patients with orthopedic, neurological and other diseases requiring application of comprehensive rehabilitation treatments. The medical facility will also organize health-enhancement procedures targeted at prevention of diseases among high-risk patient groups.

MEDICAL AND OBSTETRICAL STATIONS OPENED IN FERZIKOVO AND PEREMYSHL DISTRICTS

In 2017, two modern medical medical services provided to and obstetrical stations were rural residents. According to the opened in Avchurino settlement minister, further development of Ferzikovo District and of the network will be driven by Polyana village of Peremyshl recruitment of qualified young District in Kaluga Region. The medical specialists within the region’s Minister of Healthcare scope of the “Local feldsher” Konstantin Baranov noted program and equipment of the importance of medical medical and obstetrical stations and obstetrical stations for with advanced technologies. improvement of the quality of

MEDICAL BUS SERVICE

The government of Kaluga Region adopted a resolution on organization of patient delivery to interregional medical centers by designated buses. For this purpose, the region acquired three GAZ-A65R32 A-class busses, while regional medical facilities developed patient transportation routes. These measures contributed to improvement of access to specialized medical assistance for residents of sparsely-populated settlements of Kaluga Region.

51 EVENTS HUMAN RESOURCES AND EDUCATION

“Our ministry’s principal directions for 2018 include improvement of accessibility of preschool education and construction of general education organizations throughout the region. There are plans to commission kindergartens in new Kaluga micro-districts Koshelev and Vesnushki and to build modern kindergartens in Obninsk and Kondrovo. In 2018, construction will be completed of a 1,000-student school in Kaluga that will house an IT-lyceum. The building of the former vocational college in Babynino will be fully reconstructed to accommodate secondary school No.2. An important direction is modernization of the system of supplementary education for children, introduction of advanced models of technical and engineering education. Work is in progress to create a children’s technopark. We will continue our efforts to transfer all schoolchildren from educational facilities with 50% and greater wear to new and repaired schools, as well as the renovation of the school bus fleet. We will also focus on creation of an efficient system of professional training, i.e. development of human resources for the region’s economy. This implies professional training or retraining for adults in 50 specializations that are of greatest demand on the labor market, as well as providing them will new high-potential professions. Traditionally, great significance will be assigned to organization of the summer health-enhancement campaign”.

Alexander ANIKEEV, Minister of Education and Science of Kaluga Region

01 NEW SCHOOL IN KOSHELEV MICRO-DISTRICT

The biggest school in Kaluga Region opened in Koshelev micro-district in February 2018. It is currently attended by 1,623 students, including 360 first-graders. The school was built within the scope of the regional program “Creation of new positions in general education organizations of Kaluga Region”. The program runs up to 2025 and is targeted at development of an advanced educational infrastructure and elimination of two-shift education. The school complex consists of three buildings: two separate 4-floor blocks for the primary school and high school that are connected by the central block. The primary school building accommodates classrooms, playrooms for extended daycare groups and two sleeping quarters. The central block – two gyms, two swimming pools and two creativity halls, an event hall, a canteen with two dining areas and other facilities. Each building has a separate 02 entrance, allowing the micro-district’s residents to access the school’s sporting facilities. The RENOVATION The renovation of Kaluga Region’s significant improvement of school’s territory also has an open-air sports school bus fleet that started in accessibility of high-quality zone with 10 areas, including a soccer field and OF THE 2016 was continued in 2017, with education for children in rural tennis court. SCHOOL BUS a total of 118 new buses joining areas. In the nearest future the the routes. The modernization fleet will receive 5 more new FLEET supported the opening of 10 buses. new routes and, consequently,

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YOUNG PROFESSIONALS 03 (WORLDSKILLS RUSSIA) In October 2017, Kaluga hosted the services, hotel administration, web 2nd Regional Young Professionals design and development, graphic Championship (WorldSkills Russia). The design, electronics, surveying, pre- event was organized by the regional school development, elementary government, the regional Union of school teaching, floristics. Apart from Industrialists and Entrepreneurs and the competition, the event program the Kaluga Chamber of Commerce and included excursions and master Industry. classes in 50 of the labor market’s most demanded professions and The event drew 124 competitors specializations. from 19 professional education organizations. Their applications Sixty-three participants were selected were examined by 135 masters of as winners of the regional stage of vocational training and teachers, and the championship: gold medals were 17 WorldSkills Russia certified experts. presented to 22 candidates, silver medals – to 19, bronze – to 22. Regional The competition covered 17 NEW FORMAT winners will participate in selections professional categories: mechatronics, for the finals of the VI National In September, Galaktika health • Color Fair youth visual arts studio; welding technologies, passenger Young Professionals Championship improvement camp hosted the New car repair and maintenance, auto- • 1st Tarusa semi-marathon; (WorldSkills Russia-2018). Format 2017 educational youth painting, agricultural equipment forum. The event was attended by • Joy-box – all will be fine like management, entrepreneurship, 100 representatives of the region’s chocolate: socially-oriented business veterinary, hairdressing, restaurant creative youth. The program included for provision of career guidance to lectures, master classes and training teenagers in difficult circumstances; sessions, meetings with experts – heads of governmental agencies and • Yukhnovo eye; businesses. 04 • Heirs of Victory. Within the scope of the forum’s Winners were granted certificates for competition, participants presented 40,000 rubles to be applied towards 57 projects in five directions: youth implementation of their projects media, professional orientation and career ambitions, creativity and art, healthy lifestyle, volunteering and promotion of patriotism. Six of them were selected as winners: 05 KALUGA AT THE XIX WORLD FESTIVAL OF YOUTH AND STUDENTS IN SOCHI

In 2017, Sochi hosted the XIX World Frédéric Beigbeder, motivational speaker Festival of Youth and Students attended Nick Vujicic and many others. by over 30 thousand participants from The Sochi media center organized a global all over the world. Kaluga Region was nation fair and exhibition of Russian represented by 100 participants and regions. Kaluga Region’s exhibit space 40 volunteers. The delegation included was visited by Igor Mikheev, Director of young scientists, teachers, workers and the Department of State Policy in the specialists, students demonstrating high Sphere of Education of Children and Youth achievements in academic and social of the Ministry of Education and Science life, athletes and young journalists. of Russia; Lilia Gumerova, First Deputy Participants were offered a vast program Chairman of the Council of the Federation including discussion forums, educational Committee on Science, Education and lectures and master classes, cultural and Culture; Ryazan Region Governor Nikolai sports events. The festival was attended Lyubimov, N.E. Bauman MSTU Rector by Russian President Vladimir Putin, First Anatoly Aleksandrov and many others. Deputy Prime Minister Igor Shuvalov, Minister of Foreign Affairs Sergei Lavrov, Sberbank CEO Herman Gref, French writer 53 EVENTS ACHIEVEMENTS IN SPORTS

“The fact that sports are gaining more and more popularity in Kaluga Region is something that its residents know first-hand. The region holds more than 300 regional sporting events each year. We have considerably improved our material and technical base. Our athletes demonstrate impressive results at Russian and international competitions. Every year, 50 of Kaluga Region’s residents receive Russian and international certificates of mastery in sports. This proves that physical culture and sports are becoming accessible in Kaluga Region not just in theory, but in practice. Our further objective is to promote the trends for maintenance of a healthy lifestyle and involvement in sports activities. I am certain that with state support the talents of our athletes will lead our country to record achievements despite all obstacles created by analysts and journalists who are not always honest. The unjust deprivation of the Russian team of the right to participate in the upcoming Winter Olympics in Pyeongchang brought the Russian society even closer together. Difficulties reinforce character, so, despite everything, we will carry on the traditions of national sports and maintain faith in our country’s great future”.

Alexey LOGINOV, Minister for Sports of Kaluga Region

KALUGA REGION ATHLETES AT DEAFLYMPIC GAMES

In November of last year, the House of Government of Kaluga Region hosted a ceremony for honoring of regional athletes that participated in the XXIII Deaflympic Games in Turkey. In the summer of 2017, more than 4,000 athletes 2018 OLYMPIC GAMES from 109 countries competed for medals in 21 Kaluga Region was represented at the 2018 disciplines. The Russian team won first place in the Olympics by skier Alexander Andrienko, a 27-year old team rating. international master of sports trained at the Orlyonok Russia was represented by five volleyballers Olympic reserve school. Last year, he won the Russian from Kaluga Region: Alexander Kudriashov, Anna giant slalom and in this season’s World Cup twice made Ilyukhina, Irina Praporschikova, Anna Usova and Arina it to the top twenty. Romanova. Speed-skater Anna Yurakova met all requirements The national male volleyball team won the bronze to qualify for the Olympics but was not admitted to medal. For its captain, Alexander Kudriashov, the Games by the International Olympic Committee, these were the fourth games in his athletic career. even though no accusations of doping abuse were filed Alexander’s significant contribution to promotion of against her. sports was rewarded by a high regional honor – a medal “For services to Kaluga Region” III class.

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AMONG THE WINNERS

In 2017, several of Kaluga Region’s • 2nd place – Olympus center for sports schools involved of training of sports and education (swimming); reserves for Russia’s national teams • 2nd place – Orlyonok Olympic in Olympic disciplines won prizes reserve sports school (cross-country in the nationwide competition for skiing); grants organized by the non-profit • 3rd place – Equestrian Olympic charitable organization Russian reserve sports school. Olympians Foundation:

INTERNATIONAL TOURNAMENT IN KALUGA

In the Summer of 2017, as Russia was hosting the FIFA Confederations Cup, the regional center’s Annenki Arena held the Kaluga Junior Cup-2017 international youth soccer tournament with 8 participating teams from Russia and neighboring countries.

The tournament ended with the following results: 1st place 2nd place 3rd place FC PAKHTAKOR FC DINAMO FC KALUGA (Tashkent, Uzbekistan) (Minsk, Belarus) (Kaluga, Russia)

BEST SPORTING FAMILY

Last September, the Russian Ministry of Education and Science and the National Parent Association of Russia drew results of their competition - Family GTO (Ready for Labor and Defense).

The prize in the category “Best family participating in regional GTO trials” went to the Korotchenko family from Kaluga.

55 EVENTS 2017 – YEAR OF THE ECOLOGY AND NATURE CONSERVATION TERRITORIES

“Preservation of a healthy environmental setting is an essential condition for sustainable social development. Each year, issues of environmental protection and rational resource use gain more and more significance. The governor and government of Kaluga Region, the region’s legislative assembly assign importance to protection of the environment and preservation of natural resources for future generations. Nature is our common home. Care for one’s home is, essentially, a demonstration of love for one’s motherland. The unique nature of Kaluga Region can only be protected if we combine our efforts. What we want to leave behind us is clean air, flourishing land, clear water and healthy children”.

Varvara ANTOKHINA, Minister of Natural Resources and Environment of Kaluga Region

ON JANUARY 1, 2018, THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT OF KALUGA REGION BECAME THE EFFECTIVE PREEMPTOR OF THE REGIONAL MINISTRY OF FORESTRY, ASSUMING ITS AUTHORITIES IN ACCORDANCE WITH THE DIRECTIVE ADOPTED BY THE GOVERNMENT OF KALUGA REGION IN DECEMBER 2017.

ECOEVENTS-2017

575 ecological events were organized by YEAR OF ECOLOGY the regional Ministry of Natural Resourc- es and Environment in collaboration with IN RUSSIA governmental executive agencies, the re- gional department of the Federal Service for Supervision of Nature Resources, ad- ECOLOGICAL ministrations of and Kaluzhskiye Zaseki reserve, the Public ENVIRONMENTAL CONTROL RATING Chamber of Kaluga Region, various depart- ments and non-governmental organiza- Employees from 884 companies According to the official Year of Ecology tions. Priority directions included develop- of Kaluga Region completed neces- in Russia website that accumulates ment of a “green economy”, promotion of sary training for implementation of news published by Russian constituent implementation of environmental protec- in-process environmental control. subjects, Kaluga Region holds the fifth tion measures by regional businesses, wa- position in the rating among 85 regions ter preservation, development of a culture Results of the regional competition of the Russian Federation. of environmental awareness, resolution of of professional mastery held among issues associated with nature conservation young specialists in the field of ecol- territories and planting of greenery. ogy and preservation of the environ- ment revealed their high proficiency level. The first regional competition was held among 11 specialists from 7 of the region’s municipalities. The first prize was awarded to Yevgenia Popova (Borovsk District), the second – to Dmitry Kurbakov, biologist-ecol- ogist from the All-Russian Scientific Research Institute of Radiology and Agroecology (Obninsk), and the third – to Ekaterina Mantsurova, an em- ployee of the District admin- istration.

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GREEN ECONOMY, OR CLEAN MANUFACTURING

Development of a “green skorgsintez JSC, Duminichi economy” is one of the most Meat Factory JSC, Kaluga promising directions. In 2017, Regional Water Treatment the region’s Ministry of Envi- Company, PC LUCH LLC, Kro- ronment and local businesses ntif-Center JSC, Agregatnyi signed a range of agreements Zavod JSC, and Yargorcompl- for implementation of envi- eks LLC. ronmental protection meas- “Green technologies” are ures. Over 1 billion rubles was being actively introduced by invested in reconstruction of Lafarge Cement JSC, GE Rus treatment facilities, instal- LLC, NLMK Kaluga LLC, ORPE lation of air filters and solar Technologiya, L’Oreal JSC, panels, planting of greenery, Plitsphichprom JSC, Kadvi etc. The biggest projects were JSC, and Kaluga Regional Wa- implemented by Poultry Fac- ter Treatment Company LLC. tory JSC, Rayt-K LLC, Onbib-

ECO ORGANIZATION

The Eco-Organization 2017 Winners in the category competition held within “Environmental the scope of the Year of responsibility in Ecology in Russia identified organization of production leaders in introduction processes”: of the most efficient environment and resource • Hemofarm LLC preservation technologies: • KADVI JSC • NLMK Kaluga LLC • RPE Typhoon Kaluga • PCMA RUS LLC Instrument Engineering Plant JSC • PRODO Kaluzhskaya Poultry Farm JSC • Grand-Master LLC

Winners in the category Diplomas for “Promotion of “Assurance of ecological environmental awareness” safety and preservation of a granted to: healthy environment”: • Ecological and Patriotic • Moscow-Efes Brewery JSC Initiative ANO in Kaluga • Remmontazh LLC • KEMZ JSC • Kirov Ceramics JSC

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NATURE CONSERVATION TERRITORIES OF SPECIAL SIGNIFICANCE

• Opening of the Ugra national park visitor center; • Publication of the second volume of the Red Book of Kaluga Re- gion. 31 rare plants were excluded from the list due to increase of their populations; • All-Russian confer- ence “Role of specially WATER PROTECTION protected natural terri- tories in socio-economic In 2016-2017, the region completed capital development of re- repairs of hydrotechnical utilities on the gions” and competition Luzhenka (Kuybyshevsky District). The of creative works for project implemented within the scope of the schoolchildren “Natural program “Development of the water industry reserves and nation- of Kaluga Region up to 2020” cost 16,438.47 al parks: the pride of thousand rubles. Another project involved Russia”; the clearing of 4,196 m2 of the Mozhayka • Conservation site near Mosalsk to increase the riverbed’s status assigned to Mi- pass-through capacity and to reduce the lyatino Reservoir; area of flooding at high-water periods thus • “Find and preserve” improving the landscape and ecological campaign for identifi- condition of the river itself and adjacent cation of rare species of territories. flora and fauna.

PLANTING

• Nearly 270 thousand trees and • Nearly 100 hectares of forest shrubs planted in Kaluga Region cleaned up within the scope of the in 2017. “Live, forest!” campaign. • Planting of 214 hectares of • Major tree-planting events thicket, reinforcement planting at Gubernsky Park in Kaluga and on 61 hectares and clearing of Central Park in Kirov. 85 hectares of forest from trash • 180 lectures and 320 open within the scope of the “All- seminars organized by Kaluga Russian forest planting day” Region’s forestry specialists at the initiative. region’s educational institutions.

“We need to get to the point when it becomes unprofitable to maintain manufacturing facilities that contribute to contamination of the environment or excessive utilization of energy, water and other resources; when companies that invest considerable funds in “green technologies” begin receiving actual dividends from their competitive advantages reflected in prices of finished products”.

Anatoly ARTAMONOV, Governor of Kaluga Region

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III INTERNATIONAL ECOLOGICAL FORUM

In 2017, Etnomir cultural and assembly, “The trail of the Red Book” educational tourist center in Borovsk art project and award presentations of District hosted the III International regional environmental competitions. Ecological Forum Preservation of Roman Minukhin, Deputy Director Natural Water Resources and Safety of the Department of State Policy and of Life. The forum is organized on the Regulation of Water Resource Use and initiative of the Ministry of Natural Hydrometeorology of the Ministry of Resources and Environment of Kaluga Natural Resources and Environment of Region. the Russian Federation, emphasized Over 300 delegates from 13 Russian that protection of water resources regions, representing governmental was one of the vital objectives authorities, businessmen from under special control of the Russian several European countries, corporate President. One of the projects to be top managers, representatives of launched in this field is “Preservation environmental and non-governmental and prevention of contamination ENVIRONMENTAL EDUCATION: EVENTS, FESTIVALS, PROJECTS

• “Bring a battery – save a hedgehog” initiative for free collection of used batteries. • Vstrecha XII International Orthodox Film Festival - Ethics and Aesthetics of Environmental Spaces on Screen. In 2017, the festival organizing committee received applications from more than 200 films from 16 countries. • Launch of the “Tarusa – first ecotown in Russia” project involving comprehensive development of the town’s ecosystem: balancing of the economy, society and nature. The project is designed for 50 years and annual investments of 5.7 billion rubles. • Open boxing tournament Ecology and Sport: Strength in Unity dedicated to the Year of Ecology. • Regional creative competition for organizations discussed the of the Volga”. Implementation of design of a composition dedicated to need for optimization of reforms the project will begin in 2019 in 17 nature. targeted at restoration and efficient pilot regions. Kaluga Region is not • Regional festival and competition use of ecosystems, submitted to among them, but its system of river for amateur photographers Nature. anthropogenic exposure. This year, rehabilitation can serve as a good Land. Ecology. the discussion was joined by nearly example. Kaluga Region’s Ministry of • Second international ecological 100 young ecologists. Environment was awarded a letter of assembly Gift of Life for the Planet in The two-day program included commendation and certificate of merit Kuybyshevsky District,etc. five sessions, an exhibition of for the region’s active participation theme-related postal and philatelic in the nationwide initiative “Russian materials, the Eco-Image film Water”.

“Results of the Year of Ecology indicate to the efficiency of the state policy that focused attention on principal environmental problems and identified methods for their resolution. The success of many projects was made possible due to synchronized operation of the Russian Government, regional and municipal authorities, and the support from federal structures”. Gennady NOVOSELTSEV, Deputy Governor of Kaluga Region

59 60 61 EVENTS TOURISM INDUSTRY

“2017 was extremely productive in the context of development of the region’s tourism sector. There was a variety of events organized in the region with support from our ministry, including festivals, forums, celebrations and reenactments. Some of them received high assessments at the federal level. This year, Kaluga Region became the coordinator for the project “Russia – motherland of cosmonautics” and has signed agreements to promote a dedicated interregional tourist route with several Russian regions. Our tourism potential was also presented at the international level, including in Italy, England, Bulgaria, Serbia and Slovenia. This year, we established tourist navigation, provided financial support from the regional budget to agricultural tourism projects and hotels, subsidized flights for groups of schoolchildren to St. Petersburg and Simferopol. In 2017, federal and regional legislation in the field of tourism was adjusted to allow municipal structures in regions to independently promote their tourism potential. I am certain that this will make the whole process more creative and thus more efficient. We will certainly support the most convincing projects and, of course, will continue comprehensive development of tourism in Kaluga Region in 2018”.

Pavel SUSLOV, Minister of Culture and Tourism of Kaluga Region

CHILDREN’S ARCHSTOYANIE AWARDED THE GRAND PRIX AT RUSSIAN EVENT AWARDS 2017

OPENING OF THE UGRA NATIONAL PARK VISITOR CENTER

The Ugra national park visitor center education and cultural recreation In October, Russian Event opened in Kaluga in April within center. It is not just another site for Awards 2017 held the finals. The the scope of the Year of Ecology. The ecological tourism, but also a center industry award was established in ceremony was attended by Russian for educational and regional natural 2012 to recognize achievements in Minister of Natural Resources and history practice. Ecological education development of event tourism. Environment Sergei Donskoi and is provided with the use of advanced The Grand Prix in the category Kaluga Region’s Governor Anatoly methods and the latest technical “Best children’s tourism event” Artamonov. facilities. For this purpose, the center was granted to the 4th family The visitor center is located in one organized exhibition, conference and festival of modern art Children’s of the buildings of the Gostiniye multimedia halls and a children’s Archstoyanie 2017. How to Live? Ryady (Market Row) complex, a XVIII- eco-auditorium. The visitor center has This is the most prestigious award century architectural landmark, already gained popularity not only in the category and the first time and operates as a museum and among Kaluga’s schoolchildren, but that Kaluga Region has received information desk, environmental also tourists visiting Kaluga Region. such high recognition.

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Children’s Archstoyanie is an annual modern art festival for the entire family held at the Nikola-Lenivets art park in Dzerzhinsky District. The festival’s objective is, in collaboration with artists and architects, to design and present new children’s community play areas, relevant methodologies for artistic development of children and new formats for creative family recreation. More than 15 renowned artists and architects and more than 30 artistic institutions have taken part in the festival over three years of its existence.

Each year’s festival is dedicated to a different subject. In 2017, organizers invited children to answer the question: “How to Live?” There were 16 unique interactive stations where children could learn to live like scientists, writers, designers, architects, film critics, animals and birds. In line with Archstoyanie traditions, famous artists created interactive installations in the public art genre. The 2017 event was visited by over 4,000 people.

RUSSIA – THE MOTHERLAND OF COSMONAUTICS

In October, a unique cultural The closing event of the pro- and educational project for chil- ject, interregional conference dren was launched in Kaluga. Space as the Region’s Cultural “Russia – the motherland of cos- Code, was held on November 10. monautics” was developed by Participants summarized the ex- Kaluzhsky Krai tourist informa- perience of project implementa- tion center. In February 2017, the tion. Among other guests, the project received a grant under conference was attended by heads the Russian President’s directive of governmental agencies, own- on allocation of state funds “for ers of tourism-related business- support of creative projects of na- es, employees of aerospace mu- tional significance in the field of seums, teachers, students and culture and arts”. Organizational schoolchildren. Cosmonaut and support was also provided by the Hero of Russia Sergei Avdeyev was Ministry of Culture and Tourism the event’s guest of honor. of Kaluga Region and the Tsiolk- The conference program includ- ovsky State Museum of the Histo- ed the opening of a photo exhibi- ry of Cosmonautics. tion dedicated to Russia’s achieve- Within a period of two months ments in space exploration. (October-November), more than Among its exhibits – photographs 20 events were organized within by test cosmonaut, member of the the scope of the project intended Roscosmos active cosmonaut unit to introduce schoolchildren to the and Hero of Russia Sergei Ryazan- region’s “cosmic” heritage. The sky. The exhibition is curated by program included tours, master member of the organizing com- classes, lectures by space indus- mittee of one of Russia’s biggest try specialists, a photo exhibition international photo festivals – the and even a quest based on Kalu- Photoparade in Uglich. ga’s space-related landmarks.

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CHILDREN’S FISHING FESTIVAL VISITING CARP RECOGNIZED BY DIVO EURASIA

Kaluga Region’s chil- yaroslavets District. dren’s fishing festival Vis- Kaluga Region is one iting Carp won first place of the regions recognized in the category “People and for its success in devel- events. Event tourism” in opment of rural tourism. the finals of the I Interna- Each year, the respective tional tourism festival and ministry supports various competition of video, pho- events organized at rural to and animation Divo Eur- tourism sites. Presenting asia that took place in No- the region’s successful ex- vember. Over 250 projects perience in the field at the were submitted for the All-Russian Conference for competition, represent- Development of Culture ing countries in Europe and Tourism in Rural Are- and Asia (Russia, Belarus, as, Kaluga Region’s Minis- Kazakhstan, Kyrgyzstan, ter of Culture and Tourism Spain, Serbia, Ukraine and suggested holding an an- Estonia). nual Day of Rural Tourism Visiting Carp festival is in Russia. held annually since 2013 at Lake Mandrino in Malo-

KALUGA REGION INCLUDED IN THE NATIONAL PROGRAM “MY RUSSIA”

In 2017, Kaluga Region was included in “My Russia” national program for development of children’s cultural and educational tourism, the significance of which has been repeatedly emphasized by Kaluga Region’s Governor, including in his address to the Russian President. The goal of the program is to introduce Russian schoolchildren to the country’s true history.

300 of Kaluga Region’s schools have already participated in trips along the following routes:

• Golden Ring, with visits to Moscow, Sergiyev Posad, Pereslavl-Zalessky, , Rostov; • Great Volga Route (Samara, Togliatti, Syzran and Penza); In turn, Kaluga Region Pustyn and landmarks of Kaluga. • My Russia; City of Peter (St. welcomed 2,310 schoolchildren The project was organized with Petersburg); from 22 Russian regions. In the support from the Russian Ministry •Roots of the Russian State (Veliky format of the Great Fortification of Culture and is coordinated Novgorod); route (Kaluga, Tula and Moscow from Kaluga Region’s side by the regions), children visited the regional Ministry of Culture and • Journey Through the Ages (Moscow, Great Stand on the Ugra River Tourism. Arkhangelskoye estate, New Jerusalem) diorama museum, Kozelsk, Optina

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REVIVAL OF THE KALUGA DOUGH BRAND

Kaluga Dough is a unique IN 2017, IN CLOSE COOPERATION WITH KALUGA’S MUSEUMS, THE product that was extremely BRAND BEGAN REGAINING ITS FORMER POPULARITY. IN NOVEMBER popular throughout Russia in XVIII-XIX centuries. 2017, KALUGA DOUGH WAS PRESENTED AT THE GASTRONOMIC FESTIVAL DEDICATED TO ETHNIC RUSSIAN CUISINES IN ST. The original recipe was developed PETERSBURG. by Kaluga’s bourgeois Beliayev- Postnikovs. Their bakeries were named Kaluga Dough and were located on Voskresenskaya and Oblupskaya (Teatralnaya) streets. According to the legend, after the 1917 revolution, industrialist Kobelev, who was at that time the owner of Kaluga Dough bakeries and resented soviet authority, destroyed the recipe of the popular treat. All that was known is that it was made from Borodinsky bread croutons by adding honey, sugar caramel and spices. The revival of the Kaluga Dough brand began in 2016, when Kaluga’s bakery complex attempted to reconstruct the recipe with maximum accuracy.

65 EVENTS ARTS AND CULTURE

Ivan III Vasilyevich (Ivan the Great) was the Grand Prince of all Russia (22.01.1440 – 27.10.1505) and Moscow (1462-1505) and one of the most remarkable Russian rulers. The period of his government was signified by consolidation of Russian lands around Moscow, which became the center of a unified Russian state, and the final liberation of the country from the khans of the Horde (finalized by the Great Stand on the Ugra River).

OPENING OF THE MONUMENT TO GRAND PRINCE IVAN III

The official ceremony for the opening of the monument to Grand Prince Ivan III in front of the regional administration building on Stary Torg square took place in November 2017.

The monument to Ivan the Great intended to immortalize the era of his rule was commissioned by the Russian Military History Society. Its conceptual designer – Andrei Konchalovsky, President of the Nika Russian Academy of Cinema Arts, Chairman of the Russian Military History Society; architect – Konstantin Fomin; sculptor – Andrei Korobtsov.

“Justice was paid to one of the greatest, brightest, most powerful and efficient but for some reason highly underestimated rulers of our country. To say that Ivan III was a Russian ruler and prince – is to say nothing at all. He was essentially the creator of the Russia, the Russian state that we have inherited”.

Vladimir MEDINSKY, Minister of Culture of Russia, Chairman of the Russian Military History Society

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KALUGA REGION HAS WITNESSED MANY HISTORICAL EVENTS THAT DEFINED THE DESTINY OF RUSSIA. THE MOST SIGNIFICANT AMONG THEM WAS THE GREAT STAND ON THE UGRA RIVER. THIS FEAT DESERVES SPECIAL RECOGNITION FROM THE POSTERITY, AS DOES THE PERSONALITY OF GRAND PRINCE OF MOSCOW IVAN III. HIS DIPLOMATIC AND STRATEGIC TALENT PUT AN END TO THE DOMINATION OF THE KHANS OF THE HORDE WITHOUT MAJOR CASUALTIES. THE RUSSIAN STATE WITH ITS CENTER IN MOSCOW GAINED INDEPENDENCE, AND THIS SOVEREIGNTY WAS BORN ON THE BANKS OF THE UGRA IN KALUGA REGION.

THE GREAT STAND ON THE UGRA RIVER

In July, Kaluga Region hosted military history festival The Great Stand on the Ugra River dedicated to events of 1480. The festival organized with support from the Russian Military History Society was held near Dvortsy settlement in Dzerzhinsky District. The reenactment of the historical feat and series of interactive events were organized by military history clubs Russian Fortress and Battalion.

Over 300 people participated in the festival that drew over 10,000 viewers. The ceremony dedicated to the 537th anniversary of the Great Stand n the Ugra River was attended by Kaluga Region’s Governor Anatoly Artamonov, Metropolitan Kliment of Kaluga and Borovsk, Ambassador Extraordinary and Plenipotentiary of Serbia in Russia Slavenko Terzic and other esteemed guests.

In the fall of 1480, the banks of the the stand’s 500th anniversary. Ugra (Kaluga Region) became the In 2014, Kaluga Region opened place for the most important event the Great Stand on the Ugra River in national history – the birth of the diorama museum. The regional Russian state. The stand on the Ugra law on holidays and memorable river signified the end of the Tatar dates (reviewed in February 2017) Mongol Yoke and the beginning of establishes November 11 – the day the formation of the Russian state. of the victorious end of the Great In 1980, a monument dedicated to Stand on the Ugra River in 1480 – as the historical feat was erected on a holiday of Kaluga Region. the bank of the Ugra in honor of

67 EVENTS ARTS AND CULTURE

INNOVATIVE CULTURAL CENTER

The Innovative Cultural Center (ICC) opened in Kaluga in 2017. The core of the building is a 504 m2 multipurpose transformable hall outfit with digital and audiovisual equipment. There is also an exhibition hall and two dance halls, a café, workshops, dressing rooms and auxiliary facilities. Throughout the year, ICC hosted major international forums and exhibitions. Several creative workshops and studios operate in the The idea to create innovative cultural center on an ongoing basis. centers was conceived five years In August, the ICC organized a roundtable for Russian Minister of Culture Vladimir Medinsky, ago by the Chairman of the Russian Its key subject – modern art, its relevance to the society and state support. Participants included Government. heads of the State Institute of Art, State Museum Since then, innovative cultural centers and Exhibition Center ROSIZO, Academy of Watercolor and Fine Arts, Russian Ballet Theater, were opened in Kaluga, Pervouralsk Likhachev Russian Scientific Research Institute and on Russky island. All centers were for Cultural and Natural Heritage, Glazunov Russian Academy of Painting, Sculpture and built with federal funds and transferred Architecture, Russian Academy of Arts, Russian Institute of Art History and Kaluga Region’s for further outfitting to regional cultural figures. authorities.

68 СОБЫТИЯ

GUITAR WORLD

In May, Kaluga hosted the XX International Music Festival Guitar World that became the central musical event for the region and a major guitar event for the country. The anniversary Guitar World event opened with an opera by Larry Coryell, an American musician and founder of the fusion style. The master wrote this work based on Leo Tolstoy’s Anna Karenina specifically for the performance in Kaluga. Five days spent with stars from Russia, Belarus, Poland, Argentina, Spain, Armenia, USA became an unforgettable celebration for Kaluga’s residents and guests. This year, the festival partnered with the Kaluga Youth Symphony Orchestra. Each festival day had a distinctive program presenting various styles and genres of guitar music. The program of the jubilee Guitar World also included numerous meet-the-artist events, master classes and, most importantly, the Children’s Guitar Festival with nearly two hundred young participants from all over Russia.

ВЕСТНИК 69 THEATRE BREAK IN KALUGA

Kaluga Theatre Break, the All- based on works of Russian and Russian festival of child and youth international writers. The festival amateur theatres, is held once every program included creative workshops two years. In 2017, Kaluga welcomed for directors and theatre group creative groups from all over the managers, discussions of issues country for the 18th time. of development of child and youth 300 participants aged 6 to 17 amateur creative projects. However, representing 15 amateur theatres the most important aspect of the arrived to Kaluga from Kaliningrad, festival was the opportunity for its Vologda, Chelyabinsk, Sverdlovsk, participants and guests to get to Novosibirsk, Rostov, Vladimir and know each other, to discover new Yaroslavl regions, from republics of formats of theatrical art, exchange Bashkortostan, Udmurtia, Komi and experience and receive a portion of Karelia. creative inspiration to last until the Young actors presented plays next Kaluga Theatre Break.

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