Guide to Investment the Novosibirsk Region Pwc Russia ( Provides Industry-Focused Assurance, Advisory, Tax and Legal Services
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Guide to Investment The Novosibirsk Region PwC Russia (www.pwc.ru) provides industry-focused assurance, advisory, tax and legal services. Over 2,300 professionals working in PwC offices in Moscow, St Petersburg, Ekaterinburg, Kazan, Novosibirsk, Krasnodar, Yuzhno-Sakhalinsk and Vladikavkaz share their thinking, experience and solutions to develop fresh perspectives and practical advice for our clients. Global PwC network includes over 169,000 employees in 158 countries. PwC first appeared in Russia in 1913 and re-established its presence here in 1989. Since then, PwC has been a leader in providing professional services in Russia. According to the annual rating published in Expert magazine, PwC is the largest audit and consulting firm in Russia (see Expert, 2000-2011). This overview has been prepared in conjunction with the Ministry of Economic Development of the Novosibirsk region. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, the PwC network, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Contents 4 Welcome message from the Governor 22 Innovation-driven development of the Novosibirsk Region 24 Transport infrastructure 5 Foreward 26 Tourism Overview of the Novosibirsk Region 6 28 Foreign trade The Novosibirsk Region’s investment Economic potential 32 10 climate Gross regional product (GRP) Competitive advantages Personal income levsls of the Novosibirsk Region Consolidated budget Capital investments Unemployment rate Investment legislation Financial and lending system Government support for investments Special purpose programmes made in the Novosibirsk Region Promising areas for investment 14 Key industries Competing for investment project tenders Heavy engineering and metalworking Investor information support Mining Energy sector 34 Industrial and technology park projects Housing Industrial and Logistics Park Small business Novosibirsk Science Campus Technopark Agricultural sector Biotechnopark in the Koltsovo science city Food production 38 Investment projects Consumer market 46 Contacts Telecommunications High-technology sector PwC | The Novosibirsk Region | 3 Welcome message from the Governor of the Novosibirsk Region investors are partially reimbursed for the immediately demonstrated strong interest costs of developing business plans, upgrading in the facility: the biotech park’s first technical equipment, performing R&D, resident has put up two manufacturing conducting congresses, and patenting. buildings on the site. Current plans calls These efforts have resulted in increased for launching pharmaceuticals production investment. Last year, RUB 142 billion at the biotech park already by late 2012. in new investment was raised for the regional A milestone event for enhancing the region’s economy (as a comparison: RUB 106.8 billion investment attractiveness was the opening in 2010). This year, our goal is to attract in January 2012 of the Novosibirsk Expocentre at least RUB 168 billion. international exhibition complex. Today, In the Novosibirsk Region’s investment policy, this facility is the largest exhibition space particular focus is placed on establishing in the eastern part of Russia, hosting more and developing industrial and technology than 100 exhibitions and forums annually. parks. The Technopark at Novosibirsk’s But, of course, the region’s attractiveness world-famous Science Campus (in Russian: is not dependant only on its level of economic Akademgorodok) acts as an integrator development. A favourable social environment of innovation-driven activities. Today, also plays a major role in this regard. already 180 resident companies are actively Dear friends, We are now actively carrying out programmes operating at the Technopark. It also home to upgrade our educational and healthcare The Novosibirsk Region is an attractive to the Centre for Engineering Support, systems, and promote physical fitness location for investment and doing business. the Centre for Nano-Structured Materials, and sports, and cultural development. Our region’s competitive advantages include and the Centre for Information Technologies. One of the main achievements of these a favourable geographical location, a robust Construction of a group of laboratory efforts is the fact that, for the first time scientific and educational community, and manufacturing buildings for resident in many years, the region has demonstrated and a diversified local economy. companies is nearing completion. an upward trend in natural population The regional administration’s top-priority The Industrial and Logistics Park (ILP), growth. task is expanding the economy and attracting which is now being developed adjacent More detailed information about the investment. According to expert estimates, to Tolmachevo International Airport, region’s social and economic development, the Novosibirsk Region currently has one represents the region’s most ambitious and investment process support measures, of Russia’s most effective mechanisms project. Thanks to our vigorous efforts is available in this investment guide. for investment projects, and has to attract potential investors to the ILP, demonstrated a positive trend in economic by early 2012 the first enterprises For my part, I can assure you that and social development. In May 2012, had already begun operating the Novosibirsk Region is open the Fitch Ratings agency upgraded the and about 10 major investment for cooperation and eager to implement Novosibirsk Region’s rating to BB+, with agreements had been signed. new projects. Your ideas can become a “Stable” outlook. a reality within a comfortable environment In 2011 we launched a programme of mutually beneficial cooperation, while Investment projects in the region enjoy for creating a biotechnology park all your business initiatives will enjoy government support in the form of subsidies in the Koltsovo science city. To date, the full-fledged support of the Novosibirsk on loan interest and leasing payments, as well the engineering infrastructure has been Region Administration. as tax benefits, government loan guarantees put in place and preparation of the initial and non-financial measures. In addition, site has been completed. Targeted residents Welcome to the Novosibirsk Region! Vasily A. Yurchenko Governor of the Novosibirsk Region 4 | Guide to Investment | PwC Foreword The Novosibirsk Region today presents Another industry with great investment a vivid example of a dynamic, rapidly potential is the resort, recreation growing economy. The region’s investment and tourism sector. The Novosibirsk appeal continues to grow, opening Region is home to about 10 alpine up fresh opportunities for productive ski resorts that have become popular capital investment and fostering a favourable with both Russian and foreign tourists. environment for doing business. In deciding to do business in a specific An advantageous geographical location region, investors look for two key things and the rapid development of logistics – stability and a dynamic growth trend, facilities have allowed the Novosibirsk both of which the Novosibirsk Region Region to position itself as eastern Russia’s can offer in abundance. The Novosibirsk leading transportation hub. Region Administration has been working actively to boost the region’s investment The Novosibirsk Region is also one attractiveness by introducing more of Russia’s major centres of science and more new initiatives designed and education. We work actively with to smooth the way for both Russian the region’s public universities and know and international investors. that the Novosibirsk Region enjoys These comprehensive efforts have a wealth of human resources talent. already led to marked growth The Novosibirsk Science Campus in investment activity. Technopark offers researchers This publication, which we have and entrepreneurs unique opportunities prepared jointly with the Novosibirsk for developing and commercialising Region Ministry of Economic high-end technologies. Such facilities Development, is intended to serve help create an environment that is highly as a handy guide for potential investors. conducive to establishing new production It will help them properly assess and select capacity and promoting innovation-driven the most promising investment projects, entrepreneurship. while giving them the opportunity to contribute to the Novosibirsk Region’s economic growth under terms that are beneficial for their business. David Gray Managing Partner PwC Russia PwC | The Novosibirsk Region | 5 Overview of the Novosibirsk Region Geography development lies in the growth of high-tech, of the region’s landscape is its lakes – The Novosibirsk Region is one of Russia’s innovative manufacturing facilities. the region has over 3,000 of them. largest. It is situated in the central part The Novosibirsk Region shares a border The Novosibirsk Region’s time zone is UTC +6. of the country, in the southeastern with the Altai Territory to the south, part of the West Siberian