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Industrial policy instruments р. 32
FACTS AND FIGURES 24. K-AGRO INDUSTRIAL PARK TRANSPORTATION 6. KALUGA REGION. GENERAL 26. KALUGA SPECIAL ECONOMIC AND LOGISTICS COMPLEX INFORMATION ZONE (SEZ) 38. HIGH-QUALITY TRANSPORTATION AND 8. ECONOMY. CORE INDICATORS 30. TPSED (TERRITORY OF PRIORITY SOCIO-ECONOMIC LOGISTICS INFRASTRUCTURE DEVELOPMENT) SOLUTIONS FOR BUSINESS HUMAN RESOURCES 10. ADVANTAGES OF DOING 40. HUMAN RESOURCES FOR BUSINESS IN THE REGION SUPPORT MEASURES INDUSTRIAL GROWTH 12. PROMISING INVESTMENT 25. PREFERENCES SECTORS AND BENEFITS FOR INDUSTRIAL DIGEST 16. SINGLE WINDOW PARKS' RESIDENTS 42. INVESTMENT ACTIVITY 28. PREFERENCES AND EXPERT OPINION BENEFITS FOR SEZ RESIDENTS OPENING 18. PROJECT LEGAL SUPPORT 31. PREFERENCES AND 48. TOTAL STARTS HI-TECH BENEFITS FOR TPSED PRODUCTION OF LUBRICATING RESIDENTS OILS IN RUSSIA INVESTMENT SITES 32. INDUSTRIAL POLICY TOOLS 36. TAX BENEFITS 19. PROJECT LEGAL SUPPORT 20. VORSINO INDUSTRIAL PARK BUSINESS 21. VORSINO-WEST INDUSTRIAL 37. BCS IN KALUGA. NEW PARK INVESTMENT OPPORTUNITIES 22. ROSVA INDUSTRIAL PARK FOR INDIVIDUALS 23. GRABTSEVO INDUSTRIAL 50. SBERBANK DEVELOPING PARK ECOSYSTEM
PUBLISHED BY THE AGENCY FOR REGIONAL DEVELOPMENT OF KALUGA REGION SINCE 2010 PUBLICATION OF THE MINISTRY Editor Design ADVERTISING FOR ECONOMIC DEVELOPMENT Tatiana Antipova Rodion Nedorezov Elena Bochenkova +7 (910) 609-74-21, +7 (910) 606-00-50, +7 (910) 915-00-58, OF KALUGA REGION [email protected] rodion-nedorezov@ [email protected] All rights to information, photo materials and the logo of Kaluga yandex.ru Region belong to the Agency for Regional Development of Texts Kaluga Region: Andrew Bolshakov Alina Abramova 41 bldg.2 Dzerzhinskogo St., Kaluga, 248001 Russia +7 (915) 890-03-14, +7 (910) 606-91-93, Tel.: +7 (4842) 27-99-90, 27-99-91, arrko.ru [email protected] [email protected] 4 INVESTMENT PORTAL OF KALUGA REGION
Investkaluga.com 8X Eight languages
SINGLE WINDOW — algorithm for investment project support
Online requests for production facilities' placement
Support measures
map.investkaluga.com
INTERACTIVE Mobile INVESTMENT version MAP
Industrial parks, Kaluga SEZ, brownfields and greenfields 5 More than More than support
100 500 applications per year visitors through the feedback in social per day form – requests, networks questions and suggestions
List of useful online resources of the region’s Kaluga Region Vestnik in convenient formats Regional economic news, photo economic block for reading and downloading and video gallery
2014 2015 2016
RUNET HORIZON HORIZON RATING INTERACTIVE INTERACTIVE AWARDS AWARDS among the Top10 golden prize winner golden prize winner in Non-Commercial in Government in Government and Government Agency category Agency category Organizations category
The portal has been holding the leading position since achieving ASI standard in 2012.
The region’s expertize in working out the investment portal was taken into account by the State Council workgroup during the development of new models for working with businesses in the regions of the Russian Federation (2016). 6 Facts and Figures
Kaluga Region. General Information
Total Area:
Obninsk Обнинск 29800 sq. km Kaluga Region is located in the center of the European part of Russia, south- westward from Moscow. It’s a part of the Central Federal District.
The region borders with the city of Moscow, Moscow, Tula, Bryansk, Smolensk and Oryol regions. The distance from the border of Kaluga Region to Moscow (Moscow Ring Road) is 68 km.
THE LARGEST MUNICIPAL CITIES ORGANIZATION:
Kaluga 304 municipal 342,000 structures 24 districts
Obninsk 258 rural 113,600 settlements 28 urban localities Facts and Figures 7
POPULATION NATURAL RESOURCES
1,012,200 th people place in terms of timber ECONOMICALLY ACTIVE resources in CFD POPULATION: 6 528,500 577 418 people deposits of solid — deposits of minerals construction URBAN POPULATION: materials 76.05% 76 45.1% — deposits of of the total area agrochemical of the region raw materials is occupied by forests
Kaluga Region is one of the environmen- tally cleanest regions in the Russia Fed- eration. It holds the 17th place among 85 regions (Green Patrol).
HOSPITALITY
170 140 2.6 times According to the hotels tourist agencies — the growth of tourist flow since 2012 results of the year 2017, Kaluga Region is one of the 10 best 1.2 times More than Russian regions in — the growth of tourist services’ terms of tourism volume RUR 3 billion development. — tourist services’ volume in 2017 8 Facts and Figures
Economy. Core Indicators
6 months of 2017 st place I in the CFD and in the Russian Federation in terms of milk production 5% 200 growth rate — GDP growth (for investment the last 5 years) projects
st place I in the CFD and the 2nd in the Russian Federation in terms of manufacturing 8.7 times 10 industries’ output per capita — the growth of export industrial shipments clusters nd place 2 in the CFD and 7th in the Russian Federation in terms of housing construction per 1,000 US$14 billion 26% people — attracted — industrial output investments growth nd place 2 in the CFD in terms of birth rate 2 times 6 th — foreign investment production place growth (for the last facilities commis- 6 in the CFD 5 years) sioned in 2018 in terms of innovative activities Facts and Figures 9
INDUSTRY STRUCTURE
63% Machinery and metal-working 16.4% Food industry 4% Timber industry 4% Power industry
TOP-10 ENTERPRISES as of the end of 6 months of 2018 Share of companies in the industrial production volume, %
VOLKSWAGEN GROUP RUS LLC PSMA RUS LLC Passenger cars Passenger cars
15.5 2.4
VOLVO VOSTOK AO(N) Invest Alliance AO Trucks Convenience meat products
7.7 2
SAMSUNG ELECTRONICS RUS KALUGA LLC AstraZeneca Industries LLC Household electric appliances Pharmaceuticals
6.7 1.8
NLMK Kaluga LLC BREWERY MOSCOW-EFES F-L JSC in Kaluga Rolled metal products Beer
4.6 1.6
Volvo Components LLC PO Metallist LLC Automotive components Metal products and structures
2.4 1.6 10 Solutions for Business
Advantages of Doing Business in Kaluga Region
DIRECT ACCESS TO THE LARGEST QUALITY TRANSPORT AND LOGISTICS CONSUMER MARKET AND GOOD INFRASTRUCTURE 01 EXPORT OPPORTUNITIES 02
Advantageous geographical location of the region Kaluga Region is the key CFD logistics hub. Five federal – in the outer part of Moscow agglomeration – highways cross the territory of the region. The length provides for access to the largest consumer market of railways in the region is 900 km. Moreover, there are in the country. two multimodal transport and logistics centers and Kaluga international airport.
COMPLEX SYSTEM OF INVESTMENT CLUSTER APPROACH AND MULTI- AND INNOVATION GOVERNMENT SPEED INDUSTRY 03 SUPPORT 04
There is a complex system of development More that 200 investment projects have been institutions in the region in charge of various areas implemented in the format of 10 multi-industrial of focus that provides for individual approach to clusters. A pool of companies ready to cooperate has every project. been developed in the region.
A WIDE SELECTION OF TECHNOLOGI- HIGH QUALITY AND ACCESSIBILITY CALLY-ADVANCED SITES FOR MANU- OF WORKFORCE 05 FACTURING FACILITIES’ LOCATION 06
12 industrial parks, 2 sites of Kaluga SEZ, TPSED, Kaluga Region uses domestic and external 2 sites in the technology park. All sites are complete migration sources for labor market saturation. with engineering and transport infrastructure. Investors Twenty million people reside within a 180-km from may choose from various formats of residence. Kaluga. There are educational institutions and training centers for specialists of automotive and pharmaceutical industries, etc.
TAX BENEFITS 07 AND PREFERENCES The residents get tax benefits, customs preferences and free project support. Administrative burdens are eliminated in the region, the procedures of business registration and licensing, obtaining permits and agreements have been simplified. Solutions for Business 11
Industrial Parks
Kaluga Special Economic Zone
TPSED 12 Solutions for business
Promising Investment Sectors
Kaluga Region is developing a wide range of investment areas in the most promising sectors of national economy. The investors get individual approach and maximum preferences independent of the investment area.
MANUFACTURING OF AUTOMOBILES, PHARMACEUTICALS AND BIOMEDICINE AUTOMOTIVE COMPONENTS AND AGRICULTURAL EQUIPMENT Kaluga pharmaceutical cluster is among the world- level leaders of innovative development. The growth of Kaluga pharmaceutical enterprises production The automotive industry is the region’s key volume is far beyond the growth of Russian market economic sector. Its share in overall industrial of pharmaceutical products on the whole. The output is 36%. Kaluga automotive cluster includes cluster includes 60 companies manufacturing 31 plants and produces over 11% of all vehicles over 150 types of medical products. The cluster’s manufactured in Russia. OEMs (Volkswagen, Volvo, goal is to become one of the Top Three Russian PSMA) are interested in maximum localization of pharmaceutical manufacturers. Its main objectives car manufacturing through expansion of the range include the development of manufacturing facilities, of locally-produced automotive components, implementation of common initiatives of major development of regional engineering, technological, manufacturers and small companies, development consulting organizations and research centers of service infrastructure and supporting enterprises. operating in the automotive segment. Kaluga pharmaceutical cluster is the first and so far the only one in Russia to receive the Silver Certificate of the European Secretariat for Cluster Analysis. Solutions for business 13
TRANSPORT & LOGISTICS CONSTRUCTION AND MANUFACTUR- INFRASTRUCTURE DEVELOPMENT ING OF CONSTRUCTION MATERIALS
To provide investors and other compamies The region holds the 2nd place in the Central engaged in foreign trade with the necessary Federal District and the 7th in Russia by volume logistics infrastructure, the region is interested of residential housing construction per capita in creating a network of modern transport and by growth rate of housing commissioning. and logistics centers, in the development of Construction volumes are growing further. The the road infrastructure, establishment of a potential of the region in mineral resource and system of motor transportation and in arrival raw materials allows to satisfy the companies’ of new logistics operators. The region has very demand for the key types of nonmetallic minerals. favorable environment for further development of transport and logistics cluster: beneficial geographic location, vast experience of project implementation in this segment, etc. 14 Solutions for business
INFORMATION TECHNOLOGIES CONSUMER GOODS INDUSTRY
The priority in the sphere of information Kaluga Region has all necessary preconditions technologies is placed on software sector for the industry development. Experts believe development. The regional IT cluster currently that consumer goods industry has huge includes 128 companies, education institutions, potential on the domestic and foreign markets. telecom operators, software and security Competitive national consumer goods industry system developers and the representatives may become the driver of growth for the non- of other IT segments. The list of the sector's resource base sector. A range of companies key objectives includes the following: further planning to increase production volumes development of private business incubators and develop export capabilities operate and technical parks infrastructure, Internet in the region, including a factory of Bosco marketing services, establishment of Manufacturing at Kaluga-South industrial park. outsourcing organizations development centers. Bosco is planning to export its products to the countries of the European Union and CIS.
AGROINDUSTRIAL COMPLEX
Agriculture is one of the most promising spheres of business development. Agricultural output in the region has been growing for the last three years, and the agro-industrial complex has been diversified. Several next-generation enterprises have been set up, including robotized farms and livestock complexes, a center for high-level wheat processing and the largest center for vegetable protected growth and processing in the CFD. The key objectives of the agro-industrial cluster are the introduction of innovative technologies for food products manufacturing, and expansion and improvement of agricultural products’ distribution channels. 15
INFORMATION TECHNOLOGIES
Kaluga Region's high IT potential is demonstrated by the fact that the region is actively investing in knowledge-driven economy growth infrastructure. The core elements of the regional innovative system are the following: Technical Park Obninsk, 5 business incubators, 2 innovation technology centers (laser and nanotechnologies), engineering center, educational and study center, where specialists for innovation companies are trained. Upon the initiative of ORPE Technologiya a cluster for aerospace technologies of polymer composits and structures was created. Among the main objectives of the cluster is cooperation in the field of joint research and development works for aerospace industry.
SERVICES AND TOURISM
The tourist flow in the region is steadily growing. Since 2012, it has increased by more than 2.6 times. In 2016, several Kaluga Region towns were included in the routes of the Golden Ring of Russia. The region supports major national culture and education projects: Etnomir, Vorobyi, ArchStoyaniye, Guitar World, etc. The region is interested in the expansion of tourist routes, development of the festival movement, restoration of architectural landmarks and estates with the use of private-public partnership mechanisms and, especially, in the development of hospitality infrastructure (hotels, restaurants, recreation areas, etc.) 16 Solutions for Business Single Window
Development Institutions
THE AGENCY CORPORATION FOR AGENCY FOR AGENCY FOR KALUGA REGION INNOVATIVE BUSINESS FOR REGIONAL DEVELOPMENT DEVELOPMENT DEVELOPMENT (ABD) DEVELOPMENT OF Government operator Development of Government support for small KALUGA REGION for the development of innovative clusters and medium businesses industrial parks (airko.org) (arbko.ru) (ARRKO) (invest.kaluga.ru) The designated institution for the support of investment projects in "single
window" format AGENCY FOR PPP DEVELOPMENT KALUGA SEZ DEVELOPMENT OF CENTER MANAGEMENT WWW.ARRKO.RU TOURISM Development of socially COMPANY Development of tourism important projects on the Development of Kaluga sector and hotel principles of public-private special economic zone infrastructure partnership Infrastructure (ppp-kaluga.ru) (oez.kaluga.ru) Projects Support 17
Single Window Principle
INVESTOR’S APPLICATION
The application is revised ARRKO Commercial offer development together with ABD, Chamber of Commerce Consulting and reference materials working out
Information about the THE project is placed on the APPLICATION investment portal ANALYSIS FUND- PLATFORM SEZ INDUSTRIAL TPSED MUNICIPAL PARKS GROUNDS / RAISING SEARCH BROWNFIELDS
CONCLUSION OF A COOPERATION AGREEMENT 18 Expert Opinion
Project Legal Support
Galina KARNAFEL, Managing Partner, Atri group KLG, Kaluga office
Foreign investors have actively a permission executed to engage localized their investment proj- foreign labor, and then individu- ects in Kaluga Region since 2006. al work permits based on which HR issues play an important role invitations for employment visas in their success. Kaluga Region are executed. is fully integrated into the glob- To carry out labor activities, cit- al economy, so the international izens of CIS states have to ob- nature of the projects can be tain a patent. While citizens of seen in active engagement of EAEU member states, as well foreign employees. However fac- as foreign citizens having both ing specifics of the Russian laws temporary, and permanent res- some foreign companies lacking idence, do not have to obtain FOR REFERENCE knowledge in the migration and any permissive documents for labor law commit mistakes when work – they may work on the completing documents of foreign same conditions as Russian cit- employees. izens. Foreign citizens arriving to Our experience shows that such the RF have to effect migration Atri group KLG mistakes might result in the registration at the place of their Atri group KLG OOO was set up in August state authorities refusing to residence within seven business 2009 to provide legal support to foreign issue permissive documents, days (and HQS have to do this partners in the Kaluga region during which might produce critical im- within 90 calendar days). Since execution of documents for foreign pact on the enterprise’s opera- July 2018 the migration regis- employees to stay in the Russian Federation and to carry out labor activity in the region. tions. tration may be performed only Today the company renders a wide range of at the actual residence address services for protection of business interests For foreign employees the cat- of foreign citizens, they may not in Russia in the following areas: migration egory of highly qualified spe- be registered at the enterprise’s and labor law (including migration audit) cialists (HQS) was introduced legal address. and corporate law. One of the company’s advantages is the ability to prepare in 2010; it allows them to use a Russian-English documents. Practicing simplified procedure of work per- According to legal requirements lawyers provide services to more than 50 mit execution. To hire an employ- all categories of foreign employ- enterprises of the region, including such ee as a HQS, an employer has to ees have to file a notification of investor companies as Gestamp-Severstal- comply with the following legal making/termination of employ- Kaluga, Faurecia Automotive Development, HP Peltser Rus, Continental Kaluga, requirements: ment agreements with them. Continental Automotive Systems Rus, CBMI • the HQS’s salary must amount These are the most common is- Construction Com. Ltd, Reydel Automotive to at least RUR 167,000 per sues companies’ management Rus, etc. Atri group KLG OOO has numerous month; has to resolve to ensure continu- diplomas and letters of award issued by the • the HQS and members of his ous operation and to engage the Ministry of Labor of the Kaluga Region and Economy Administration of Kaluga. In 2014 (her) family must have medical personnel required for achieve- the company received a diploma of the 100 insurance. ment of the best result. The le- Best Products of Russia competition. In the gal support of this aspect of for- current year it has become the winner of the At the same time the previous eign enterprises’ activity should regional stage of the ZOLOTOY MERCURY procedure for documents exe- be assigned to professionals (GOLDEN MERCURY) national business award in the Best Small Service Enterprise cution requiring an enterprise to having solid experience in this nomination. receive a quota for engagement area. When choosing a legal ad- of foreign employees whose po- visor on HR issues and corporate Office in Kaluga: 248001, Russia, Kaluga, sitions are not specified in the law one should prefer firms with Suvorov St., 121, office 422, Moskovsky list of non-quota specialists, solid reputation confirmed both business center. Tel. +7 (484) 277 7747 professions and positions, may by cooperation with large foreign mail: [email protected] be used. After a quota is- ob investment projects, and recog- tained, an employer shall have nition of profile agencies. Investment Sites 19
Ready-Made Infrastructure
INDUSTRIAL PARKS 12 7539.8 ha 107 parks total area investment projects
KALUGA IP SEZ 2 1042 ha 16 sites total area residents
TECHNOLOGY Biotechnologies, medicine, nuclear PARK OBNINSK 2 51.5 ha technologies, IT, advanced materials. sites total area
TPSED Investment sites with a priority legal framework for business, a variety of tax benefits and administrative preferences for investors. 2 Sosensky and Kondrovo mono-industry towns. mono-industry towns
greenfields* of various total areas in the brownfields** in the territories of 140 municipalities of Kaluga Region. 150 operating enterprises/.
Electricity, gas, water and sewerage are brought to the boundaries of the infrastructure facilities.
*Greenfields – sites, made ready for the construction of manufacturing plants. **Brownfields – ready-made manufacturing facilities. 20 Investment Sites
Vorsino Industrial Park
6 km 20 km 95 km 322.1 ha from Obninsk from New Moscow from Kaluga available
FREIGHT VILLAGE VORSINO – THE LARGEST LOGISTICS HUB IN THE CENTRAL FEDERAL DISTRICT IS LOCATED ON THE TERRITORY OF THE PARK.
Located along the M-3 Moscow-Kiev Highway
45 Kaluga
Guy TAILLIEU, INVESTMENT М-3 The founder PROJECTS of ORAC NV
— For us the Russian IN THE IMMEDIATE PROXIMITY TO: market is strategically Vorsino railway station – the starting point for two important and promising. New Silk Road routes. We are expanding the pool of Russian business partners. Our company 24 functioning production facilities is open-minded, looks forward to new ideas to
be implemented in Russia. Freight Village What we have been able to do here, in Vorsino Industrial Park, is impressive. In particular very impressive D.A. RUS Freight Village are the terms of putting our factory into operation.
D.A. RUS Investment Sites 21
Vorsino-West Industrial Park
5 km 5 km 65 km 332 ha to Moscow to Central to Moscow Ring available Region Ring Road Road
Kaluga INFRASTRUCTURE М-3
• Multimodal transport and logistics terminal Freight Village Vorsino is the key Andrew KOZLOV, logistics hub in the Central SIBUR Chief Federal District. It’s the pilot Operation Officer project for the development INVESTMENT of logistics infrastructure PROJECTS — Kaluga Region due in freight village format; in to its geographical function form 2012. Manufacturing, storage location is the most and shipment of automotive oils, attractive one for • A railway cargo park, motor lubricant oils and other materials. and container terminals, a the development of ® Coating materials warehouse complex, and SIBUR new logistics manufacturing plant hub. Manufacturing motorways have been already construction. built within the logistics park. enterprises within Printing ink the automotive and manufacturing plant biotechnologies and • The current capacity of the construction. container terminal is 350,000 medical services Distribution center TEUs per year. In the future, it is clusters, being for Pyaterochka store chain. planned to increase the capacity ® the consumers to 500,000 TEUs per year. Total Marble chip of our polymeric manufacturing plant. length of internal railways products, have is more than 10,000 running Distribution center for SIBUR- already successfully manufactured polymer products. meters. A customs post has developed here. operated in the territory of the facility since 2013. 22 Investment Sites
Rosva Industrial Park
Located within 2 km Kaluga limits 195 ha to M3 Ukraine Kaluga available Highway М-3
12 10
INVESTMENT COOPERATION PROJECTS AGREEMENTS
Vladimir GROMOVIK, Biotechnological Complex – Rosva Director General MULTIMODAL TRANSPORT AND LOGISTICS CENTER FREIGHT VILLAGE ROSVA IS LOCATED IN — They stick to a thought-over development THE PARK TERRITORY: policy, create favorable conditions for busi- There are 2 temporary storage warehouses, a six-line railway ness in the region. I’d like to mention two key terminal, a container terminal with annual capacity of 150 TEUs a factors – the region is close to the primary year. There is also a customs station of the Kaluga Customs and market channels, and it’s the greatest source an excise station of the Excise Customs. of raw materials in the southern part of the CFD. There is also enough reasonably priced grain. We’ve been provided with a good 10 functioning companies: platform equipped with all the necessary utility systems. The region delivers on its obligations. Anatoly Artamonov, the Gover- nor, personally supervises the project and is
interested in its success. We are grateful to BaziS JSC him for such a concern for our business. Investment Sites 23
Grabtsevo Industrial Park
28 ha available
Kaluga
М-3 Located within Kaluga limits
25 km 15 km 3 km 3 km 30 km to M3 Ukraine to P-13 to Kaluga to Kaluga-1 to transport- Federal Road Kaluga- International railway logistics center Ryazan Road Airport station Freight Village Rosva
In immediate proximity –a residential complex 15 13 for the employees of the industrial park’s residents (Residences INVESTMENT COOPERATION for Professionals PROJECTS AGREEMENTS project)
Mike DUSTDAR, Executive Director, Unique Novo-Nordisk: A-PARK – 26 ha features: A SPECIAL total area — The consistent • Built-to-Suit investment policy PROJECT IN facilities of our company in GRABTSEVO Lessees: • Option localization of hi- to lease tech manufacturing INDUSTRIAL PARK production in Russia conforms facilities fully not only to the national policy of the Russian Government, but 12 functioning companies: also to the strategic plans of Kaluga Region in the field of pharmaceutical industry Industrial Steel development. Recycling LLC 24 Investment Sites
K-Agro Industrial Park
The concept of the project is to create the largest in the Central ha Federal District agro-industrial park on the boundary of Kaluga 2,587 Region and Moscow with industrial and logistics infrastructures available supporting accumulation of basic food products, their processing, packaging, storage and distribution.
ADVANTAGES:
Located close Convenient Direct connection Well-developed to Moscow transport access to Moscow - Kiev agricultural boundaries, in – is located along railroad (stations industry. 67 kilometers to the M-3 Moscow- Vorsino and Moscow Ring Road. Kiev highway and Bekasovo-1). Arthur PAKHOMOV, Moscow outer ring. Techleor LLC Investor and Chairman of the Board of Directors at the Laboratory of Institutional Engineering High-quality land Mineral raw Well-developed Development — With the opening of the resources. material base social of innovation center in K-Agro Industrial necessary for infrastructure. projects aimed Park one can speak about construction at knowledge introduction of non-chemical industry intensive way of products processing development. technology in Russia. It’s a technological highly-competitive and entrepreneurial startup. products The project has been carried manufacturing. out thanks to the teamwork of developers, investors and the representatives of the authorities Residents: Staromihailovskiy of the region. RPK, LLC Support Measures 25
Preferences and Benefits for Industrial Parks' Residents
MINIMAL INVESTMENT LAND GRANT COST OF LAND TITLE ENGINEERING VOLUME FORM ACQUISITION INFRASTRUCTURE • No limits • Ownership rights acquisition/ • The cost of land • Is provided in the assignment of lease rights acquisition is calculated immediate proximity • For receiving tax benefits with the possibility of individually and depends to the plot of land. The – no less than RUR100 subsequent redemption on the volume of the expenses for infrastructure million necessary power connection are included resources in the cost of land title acquisition.
GENERAL CUSTOMS TREATMENT
Income tax Providing: — the investment project is listed in the regional register of investment projects — average monthly salaries are at least five times/three times (for Russian Standard Industrial Classification of Economic Activities 13,14) the minimum wage for the labor active population in Kaluga Region — the amount invested in the first three years since the beginning of project implementation meets the levels indicated in the chart below: From RUR100 to RUR500 million, inclusive 1 year – 13.5% tax rate Over RUR 500 to RUR1,000 million, inclusive 2 years – 13.5% Over RUR1000 to RUR2,000 million, inclusive 3 years – 13.5% Over RUR2,000 million 4 years – 13.5% Over RUR3,000 million** years 1 to 4 – 13.5% For companies manufacturing: year 5 – 14.6% - starch and starch containing products; fodder microbiologic protein, premixes, fodder year 6 – 15.7% vitamins, antibiotics, amino acids and ferments; rubber tire, casing and tire tube production and year 7 – 16.8% restoration; cast iron, steel and ferrous alloy; hot-rolled profiled steel and rods.
Property tax Providing: — the investment project is included in the register of Kaluga Region’s investment projects; — average monthly salaries are at least five times/three times (for Russian Standard Industrial Classification of Economic Activities 13,14) the minimum wage for the labor active population in Kaluga Region; — the amount invested in the first three years since the beginning of project implementation meets the levels indicated in the chart below: From RUR100 to RUR300 million, inclusive* 1 year – 100% tax exemption Over RUR300 to RUR500 million, inclusive* 2 years – 100%
Over RUR500 million * 3 years – 100%
Over RUR500 million ** 5 years – 100% for pharmaceutical manufacturers if revenues from sales of manufactured pharmaceutical products account for at least 70% of total revenues from sales of manufactured products within the taxation (reporting) period RUR 3,000 million 0% For companies manufacturing: within 1-3 years - starch and starch containing products; fodder microbiologic protein, premixes, fodder 0.5% for 4 years vitamins, antibiotics, amino acids and ferments; rubber tire, casing and tire tube production and 0.99% for 5 year restoration; cast iron, steel and ferrous alloy; hot-rolled profiled steel and rods. 1.4% for 6 year 1.8% for 7 years
Land Tax Common treatment. 0.3-1.5% depending on the land category (Article 394 of the Tax Code of the Russian Federation) Transport Tax Depending on the engine capacity and the type of automotive transport the tax rate shift from RUR5 to RUR150 per HP (Article 361 of the Tax Code of the Russian Federation) Personal Income Common treatment. As far as the income of foreign citizens is concerned, the Personal income tax fee is established in the Tax/Social Funds amount of 30% (Article 224 of the Tax Code of the Russian Federation) 26 Investment Sites
Kaluga Special Moscow Economic Zone (SEZ) BOROVSK Moscow Region Smolensk Region OBNINSK
Kaluga SEZ Total Area KALUGA
1,042 ha Kaluga Airport
LYUDINOVO Tula 432 ha Region
Bryansk Oryol Region Region 610 ha
Lyudinovo Site Borovsk Site
LOCATION LOCATION In a close proximity to Freight Village 170 km 350 km 80 km 95 km 68 km VorsinoTransport — to Kaluga to Moscow to Bryansk to Kaluga to Moscow Logistics Center Federal Roads Federal Roads 60 km to A-101 Moscow- 23 km to M-3 15 km to A-101 Moscow- The site is located Maloyaroslavets-Roslavl Moscow-Kiev Maloyaroslavets-Roslavl on M-3 Moscow-Kiev
The location – in the south of the region, the The location – in the north of the region, close to Moscow and proximity to the regional industrial centers and science-intensive manufacturing, laboratories, engineering centers access to natural resources offers the advantages and a major logistics terminal – offers the advantage for developing for the development of large and medium-sized hi-tech companies in the sphere of pharmaceuticals, manufacturing manufacturing enterprises, construction materials of medical equipment, tool engineering manufacturing and and timber processing production facilities, etc. innovation machine engineering.
ADVANTAGES ADVANTAGES High readiness Age-old traditions Unique logistics A specialized platform of engineering of industry location for food industry infrastructure manufacturing A specialized platform Access to highly- Provision of sites Ample quantity for pharmaceutical qualified personnel adjacent to railroad of labor force industry
Investment Sites 27
SPECIAL ECONOMIC ZONE These territories are granted with a (SEZ) special legal status, and economic (tax, customs, infrastructure) preferences for Russian and foreign A part of the territory investors. of the Russian Federation with a special regime of An investor granted a status of preferences and benefits. the resident of Kaluga SEZ is exempt of connection charge to the engineering infrastructure.
The points of connection to the engineering infrastructure are located in close proximity to the site boundaries.
Electricity Water supply Storm Wastewater Gas supply Telecommunications drainage disposal
SEZ RESIDENTS:
Калуга
LLC Ecological House-Building MPT-Plastic, LLC National Collagen LLC Innovative Factory Lyudinovo Company Limited Composite Technologies
TO BECOME A SEZ RESIDENT:
To register To create To be granted To sign an a legal a business a status of agreement entity plan resident
The amount of capital investment to the project — no less than RUR120 million 28 Support Measures
Preferences and Benefits for SEZ Residents
Special Economic Zone Benefits 30% — cost saving for investors % — Import customs duties; — VAT; — Land tax for 10 years; — Corporate property tax for 10 years.
0 – 13.5% — regional share of profit tax (depending on the 0 company profile). Support Measures 29
Minimal investment No less than 120 mn rubles volume Manufacturing type Industrial manufacturing and logistics, excluding mining and production of excisable products (excluding motor-cars and motocycles) The form of land property Land lease allowing for a purchase option provision The cost of purchasing The investor receives the right to land lease for manufacturing location after land title receiving the status of resident. The maximum amount of rent amounts to 2% of the site’s cadastral value. The final amount is derived under the appliance of decreasing coefficients:
- 0.9 – the volume of capital investment is not less than EUR10 million. - 0.7 - the volume of capital investment is not less than EUR20 million. - 0.5 - the volume of capital investment is not less than EUR30 million.
After the land title for the real estate objects built by the residents on the land site in the boundaries of SEZ is registered, it’s possible to purchase it corresponding to the Article 39.4 of the Land Code of the Russian Federation. The cost of purchase of the land plot amounts to 25% of the cadastral value of the site.*
Engineering Is provided free of charge on the boundaries of the land site. infrastructure Customs treatment Derated (in regard to VAT and customs duties)
TAX BENEFITS AND PREFERENCES FOR THE RESIDENTS OF KALUGA SEZ
Corporate Income tax Applicable to the following economic activities: 1. Manufacture of machines and equipment; 2. Timber production and wood processing; 3. Manufacture of car (engine) parts and accessories. • 0% - for 5 years starting from the tax period in which company gets a status of resident of SEZ • 3% - for 4 years from the sixth to the ninth tax period including the year in which the company gets a status of resident of SEZ • 5% - for 2 years from the tenth to the eleventh tax period including the year including the year in which the company gets a status of resident of SEZ • 8% - for 2 years from the twelfth to the thirteenth tax period including the year in which the company gets a status of resident of SEZ • 10% - for 2 years from the fourteenth to the fifteenth tax period including the year in which the company gets a status of resident of SEZ • 13.5% - from the sixteenth tax period including the year in which the company gets a status of resident of SEZ up to the expiration date of the special economic zone. For other types of economic activities: • 5% - for 10 years starting from the tax period in which company gets a status of resident SEZ, • 9% - for 5 years starting from the eleventh to the fifteenth tax period in which company gets a status of resident of SEZ; • 13,5% - from the sixteenth tax period including the year of resident status of SEZ up to the expiration date of the special economic zone. Corporate Income Tax 0% - for 10 years starting from the registration of the property Land tax 0% - 5 years starting from the moment when the title in each land plot arises Transport tax 0% - 10 years starting from the registration of the vehicle VAT/Social Funds Personal income of foreign nationals defined as highly qualified specialists and employed by SEZ residents is subject to the individual income tax at the rate of 13 percent (Article 224, Section 3 of the Tax Code of the Russian Federation).
* Decree of the Government of Kaluga Region from of June 10, 2015 “On the procedure for determining the price of a land plot when concluding a contract for the sale of a land plot that is in state ownership of the Kaluga Region, and land plots the state ownership of which is not demarcated, without bidding”. 30 Investment Sites
TPSED Moscow Territory of Priority Socio- Economic Development Moscow Region
Smolensk KONDROVO Region
KALUGA
Kaluga Airport SOSENSKY
Tula Region
Bryansk Region
Oryol Region
Mono-industry town Mono-industry town SOSENSKY KONDROVO
412 ha 11,008 2,059 ha 15,146 Total area Population Total area Population
246 km 6,367 165 km 9,020 to Moscow Employable to MRHW Employable Ring Road population population
• Administrative center of • Located on P-93 regional road The status of TPSED was received Dzerzhinsky District of Kaluga on November 13, 2017 Region
TOWN-FORMING TOWN-FORMING ENTERPRISE: ENTERPRISE: Sosensky Tool-Engineering Plant (a Troitskaya Paper Kondrovskaya Paper Kondrovo branch of branch of the FSUE “Scientific and Mill PLC Company OJSC LLC GeopAK Production Center for Automation and Instrument Engineering named after GIGIENA- Firm Academician N.A. Pilyugin”). SERVICE LLC Vesta LLC Support Measures 31
TERRITORY OF PRIORITY SOCIO-ECONOMIC DEVELOPMENT Territory with a special legal regime for business, offering investors a number of tax allowances and administrative preferences.
Preferences and Benefits for TPSED Residents
TAX REGULAR RATES RATES FOR TPSED RESIDENTS
Corporate Income 2% 0% — for 5 years after first profit tax (3% - in 2017-2024 (Federal Budget)
18% 0% — for 5 years after first profit, and 10% 17% - in 2017 – 2024 (budget of the within the following 5 years subject of the Russian Federation)
Corporate Property 2.2% 0% — for 5 years, 1.1% on the 6th-7th years, Tax 1.5% — on the 8th-10 years
Land Tax 1.5% 0% — from the moment of including a resident into TPSED register
Insurance payment 30% 7.6% — for 10 years (Pension Fund - 6%, Social (Pension Fund - 22%, Social Insurance Fund – 1.5%, Mandatory Medical Insurance Fund - 2.9%, Mandatory Insurance Fund - 0.1%)* Medical Insurance Fund - 5.1%)
* Reduced rates of insurance payments apply to TPSED residents, those received the status during the first three years from the date of TPSED establishment (sub-clause 12, item 1 and paragraph 3 of item 10, Article 427 of the Tax Code of the Russian Federation).
RUR 2.5 million – Minimum investment volume The minimum number of new jobs - 10/not less Employment of foreign nationals than the average number of employees of a legal – no more than 25% of the total entity over the past 3 years. number of employees.
Engineering infrastructure
Is provided in a close proximity to the boundaries of the The expenses of networks connection to the site are site. paid by the investor. 32 Support Measures
Industrial Policy Tools
RIP (Regional investment SIC (Regional special investment projects) contracts)
Tax Code Chapter 3.3 GD RF of 07/16/2015 # 708 31-OZ of December 16, 1998, as GD KR of 09/28/2016 #526 amended. 211-OZ of 06/23/2017 31-OZ of December 16, 1998, as amended. 211-OZ of 06/23/2017
Register Type/contract The project is included in the register The contract is awarded without the of RIP, which is maintained by the participation of the RF, a party may be either Federal Tax Service of Russia. a subject of the RF or of Moscow Region. The decision on the inclusion in the register of RIP is made by the authorized body of the Subject.
Demands on the volume Non less than RUR50 million within Non less than RUR 300 million of capital investment 3 years from the date of inclusion in RIP register Terms of investment are negotiated in the Or non less than RUR 500 million SIC. The investment includes the purchase within 5 years from the date of of a land plot, facility design, construction, inclusion in RIP register equipment, delivery + customs duties and fees, startup and commissioning + depreservation / upgrading of the core assets (the purchase of the new equipment should amount at least 25% of the upgraded / depreserved).
Type of manufacturing All except: 1. Manufacturing facilities development or modernization (manufacturing a new or an - excisable goods existing product, but in substantially larger (not including cars and motorcycles); volumes). - oil mining and / or refining; - production of natural gas and / or gas 2. The best available technologies condensate; implementation (in accordance with the - provision of transportation services environment protection plan and the for oil and / or oil products, gas and / program of improving environmental or gas condensate; efficiency according to the Federal Law). - pursuit of activities for which corporate income tax rate is applied 3. Mastering the manufacturing of products in the amount of 0%. classified as industrial products that have no analogues produced in the Russian Federation. Support Measures 33
NovaMedica – The Largest Special Investment Contract in the Russian Pharmaceutical Industry
In March 2018, the Ministry of Industry and Trade of the Russian Federation, the Government of Kaluga Region and NovaMedica signed a special investment contract for production of innovative pharmaceuticals, which has become the largest in the Russian pharmaceutical industry.
The document was signed Region will account for more In the long run, this will allow by Denis Manturov, Minister than three billion rubles. opening up an export product of Industry and Trade of the After putting the manufacturing line – one of the terms of the Russian Federation, Anatoly complex into operation, there special investment contract. Artamonov, Governor of the is intent not only to localize Region, and Alexander Kuzin, a long list of vital medication Denis Manturov pointed out NovaMedica General Director. produced by Pfizer, a strategic that eight of the upcoming It was noted that this contract, partner of NovaMedica, but twenty four medical products being the fifth in the Russian also to release products of were unique and so far had no pharmaceutical industry, had proprietary development. The analogues in Russia. At the become the largest. The volume manufacturing facilities are same time, they were in demand of NovaMedica’s investment in developed in a strict accordance in domestic health clinics. biopharmaceutical industrial with Russian and international complex development in Kaluga standards. Меры поддержки
34 SAI KR Business Development Agency +7 (910) 860-11-11 BUSINESS, [email protected] www.arbko.ru NEED HELP?
FOR 8 MONTHS OF WORK WITH THE ASSISTANCE OF "BUSINESS DEVELOPMENT AGENCY"
6 23 72 32 13
Business Cases entrepreneurs loans / grants Export projects on infrastructure received state / guarantees contracts placed admission support in the received for signed received an amount of RUR 5.6 approval RUR178.5 billion million
In the activities of each entrepreneur there comes a point when the preparation of support documentation and letters to multiple bodies takes up too much time. How to focus on project indicators instead of getting stuck up in paper routine? The new organization - "Business Development Agency" will offer you help. The supporting organization has been operating in the region since February 2018 and has already established itself as a reliable partner for the business community.
FROM AGROINDUSTRIAL COMPLEX TO BUSINESS IN GENERAL
The new agency is less than a year old, but in funds and taking part in tenders for receiving for Strategic Initiatives in “Agriculture matters of assistance to small and medium- grants. development and comfortable conditions sized businesses it is far from a stranger. By 2017, Agribusiness Development Agency’s creation for business development in rural The organization has transformed from best practices have started to replicate in other areas” nomination. This achievement the “Agribusiness Development Agency”, regions. In the meantime, the organization motivated the executive management of the which used to be an agent of state support became a finalist of the “All-Russian Awards Agribusiness Development Agency to spread programs running in the region. The agency for Best Practices and Initiatives for Social their best practices to other business areas in assisted Kaluga agrarians in receiving loan and Economic Development” of the Agency Kaluga Region. Меры поддержки 03535 “Every project needs a site, engineering and transport infrastructure, facilities to achieve the project capacity, and state support, Stefan Perevalov, Head of the Business Development Agency, says. Sometimes achievement of these goals is hindered by lack of knowledge and time, businessmen have to overcome some administrative barriers. The Business Development Agency is ready to undertake the primary paperwork in these areas and to assign a personal manager, a kind of a business guide, to supervise a project”.
OUR AGENCY IS YOUR BUSINESS GUIDE IN THE REGION
The operation of the Business Development Most requests received by the Business Agency is based on consulting businessmen Development Agency are for the state support. on project management issues. More than This is not surprising, as it is difficult to six hundred businessmen have applied to achieve planned business ratios. Sometimes the agency to receive consultations over they have to buy high-tech equipment or eight months. During the work the Business to implement scientific developments. The Development Agency has systemized lines state is ready to support businessmen in of its business focusing on the issues that such cases. There are support programs being are most pressing for the business society implemented by a dozen of ministries and of the region. The agency has accumulated agencies in the region. For the state support solid experience in funds raising since the to be provided, a project undergoes a special time of its work in the agricultural complex. Its state commission. The Business Development specialists are ready to elaborate and prepare Agency will bring all projects documents into a business plan, to represent businessmen in order, so that commission members have not negotiations with banks and funds. It happens doubts about its feasibility. that all documents are in good order, but the The information about lines of business project is denied funding. In such cases the deemed strategic and receiving state support Business Development Agency cooperates in the region is available in brochures annually with several commercial banks and state published by the Business Development funds. And there is always an alternative Agency. They can be found on stands in MFC in case of a failure. The funds attracted by (Multifunctional Centers), can be received in businessmen with the help of the Business office or ordered in the electronic form. Development Agency since the year beginning amount to over RUR5.5 billion.
INFORMATION IS THE KEY TO SUCCESS
To advise the latest information to a Export development is a new line of the businessman, the Business Development agency’s business. For this purpose seminars Agency has set up training and business in the international law, interaction with advanced training centers. customs services are held, participation The business support center holds of Kaluga businessmen in international educational seminars and trainings both exhibitions and forums is organized. Products for new, and experienced businessmen. of the best Kaluga brands are always widely Such issues as product release technology, represented at such events. business psychology are considered. More Further building-up of the Business than a thousand of businessmen have already Development Agency will depend on the received training during events held by the feedback from the business society. center. The Business Development Agency keeps on supporting agrarians. They are trained in modern farm management methods.
ANYTHING INTERESTING FOR YOU? CONTACT US!
Maybe while reading this article you realize in which areas you need support. Don’t hesitate to contact us! If you have any problems with implementation of your project, the Business Development Agency will analyze all opportunities and find a proper solution. It can help everyone. 36 Support Measures
Tax Benefits
As a part of the program for renewal and modernization of fixed assets of an enterprise, there is a program for tax benefits.
CORPORATE Providing: PROPERTY - carrying out activities specified in section C "Manufacturing" OKVED OK 029-2014 TAX - Putting up the program of fixed assets of an enterprise updating and modernization in the Register of programs of updating and modernization of fixed assets of enterprises. Standard tax - The total volume of capital investments under the program – not less than RUR5 million, within three rate – 2.2% years from the date of inclusion of the program in the register of programs. - The amount of revenue – not less than 70% from the implementation of the activities specified in The ground for section C “Manufacturing Industries” OKVED OK 029-2014. tax benefits - The average monthly salary – not less than threefold minimum cost of living for employable population is the Law of in Kaluga region. Kaluga Region - Annual growth rate in labor productivity at the enterprise – by 5% during the program in-force period of November (Law of Kaluga Region of December 16, 1998 #31-OZ) 10, 2003 #263-OZ The tax rate for newly created (acquired) 0% movables included in the grouping “Machinery and equipment, among them other tools and objects”.*
The tax rate for fixed assets included in the Share of the cost of Tax Rate grouping “Machinery and equipment, among modernization (per them other tools and objects” and in the group cent) “Buildings (except residential)”.* More than 76 0% From 51 to 75 0.5% inclusive From 25 to 50 1.1% inclusive Tax rates are applied during the number of tax periods listwd below and upon reaching the following amounts of capital investments: RUR5-10 million For 1 year RUR100-300 million For 2 years more than RUR300 million For 3 years
* According to the All-Russian Classifier of Fixed Assets 013-2014 (SNA 2008). CORPORATE PROPERTY TAX: the right to apply benefits arises in respect of each fixed asset object from day 1st of the month following the month in which works were completed in accordance with the program for this object and as a result of which the total amount of capital investments actually made was RUR5 million and more.
January 1st 2018 – November 30st PACKAGE OF DOCUMENTS: rate of annual labor productivity increase 2020 — the period for the investor • investor’s application form for inclusion at the enterprise by 5% during the period to decide on the implementation of in the register; of the program action; the program. • a program of renewal and • documents confirming the power of the person who signed the official application November 30th 2020 — the modernization of fixed assets of the deadline for submitting documents enterprise; form and the modernization program; to the Ministry of Economic • a program to increase labor productivity; • copies of incorporation documents with Development of Kaluga Region • information on the expected results all changes and additions; to be included in the register of of the implementation of the program • copy of the Certificate of State programs for the renewal and on the territory of Kaluga Region in Registration of a Legal Entity; modernization of fixed assets an quantitative and monetary terms, • copy of the certificate of registration enterprise. including the growth achievement in the with tax authorities. Business 37
BCS in Kaluga. New investment opportunities for individuals
A press conference, dedicated to the official launch of a branch of the BCS Financial Group retail division, was held in Kaluga on October 25th.
Sergey Danilov, head of the BCS accommodate his/her needs for ongoing basis. Leading experts and Premier regional network, Denis Eltsov, investment and banking products with experienced analysts take part in these director of the Kaluga branch and BCS Premier. events, where one can get advice on Alexander Taraskin, head of the product financial transactions and investment development department, spoke about Among the sought-after solutions forecasts in a friendly atmosphere. the products of the company and its investment insurance, structured target audience, and shared the closest financial products and traditional investment estimates. bank deposits are popular today; the bank also provides an opportunity for BCS Financial Group has been present clients to trade on the stock market in Russia for almost a quarter of a autonomously, meanwhile behind each century. During this time, the company offered position there is a large variety has earned a reputation as one of the of investment solutions that meet leaders in the market of investment personal preferences of each client. services; today it has more than 50 These days, personal financial advisers branches throughout Russia, and offices have been already working in Kaluga in various countries of the world. “We branch. Well-developed training are not a traditional bank, although solutions allow the specialists of we provide high-quality conventional BCS Premier to weekly participate in banking services - current accounts, analytical activities of various formats. Sergey DANILOV, cards, loans, consumer lending, head of the BCS Premier deposits. But our core business is BCS Premier offers local residents a regional network: investment focused primarily on creative format of interaction in the individuals”, pointed out Sergey financial services market. The Bank — Before “entering” a certain Danilov. seeks to form customer relationships city, we carefully analyze the in a new way, offering its clients market situation. Kaluga is one The target product of BCS Premier comfortable services and satisfaction of the most attractive areas is personal financial planning. This is from the banking process. “We for us. Taking into account the a fundamentally important feature look forward to occupy the leading investment accomplishments distinguishing the company from position in the market of investment in Kaluga, we understand that traditional banks. A personal financial banking consulting. Moreover, we the need for the solutions we adviser or a personal manager keeps understand the need to go digital. We provide is high. a client's financial history and helps to are profoundly developing various form a personal investment portfolio, applications with the help of which manages it. Working with a client, a our clients can easily interact with us financial adviser uses survey techniques at any time, he/she does not need to to determine the purpose, motivation, come to the office, can do it from any opportunities of investment and his/ country”, added Sergey Danilov. her attitude to risk; on the basis of this data, he offers a possible package BCS Premier organizes business events of services. A client can completely and meetings for its clients on an 38 Transport and Logistics Complex
SWEDEN
Ust-Luga Saint Petersburg RUSSIA
Riga Moscow GREAT BRITAIN FV RU Brest Chita Kaluga Novosibirsk GERMANY Irkutsk KAZAKHSTAN Dobra Naushky Zabaikalsk FRANCE MONGOLIA Port Vostochny Yingkou Dostyk Vladivistok Baku TURKEY Dalian JAPAN Chengdu Tianjin IRAN Suchzhow Kobe Bender-Abbas CHINA INDIA Guangzhou Shilong Hanoi Mumbai Viet Nam High Quality Transport and Logistics Infrastructure
FREIGHT VILLAGE KALUGA
2 > 570 ha 500 000 Multimodal transport — Total area TEUs per year and logistics centers — Container terminal capacity
Modern multimodal Part of New Silk Road Center for the Customs terminal transport and logistics international logistics consolidation of goods complex corridor from various Russian shippers
Railway terminal for Supporting terminal for Terminal for heavy Class A warehouse and handling any type of cargo flows distribution trucks class B + business park cargo from Moscow Transport and Logistics Complex 39
SWEDEN KALUGA INTERNATIONAL Ust-Luga Saint Petersburg RUSSIA AIRPORT Riga Moscow GREAT BRITAIN FV RU Brest Chita Kaluga Novosibirsk GERMANY Irkutsk 250 KAZAKHSTAN passengers/hour Dobra Naushky Zabaikalsk FRANCE — acceptance rate MONGOLIA Port Vostochny Yingkou Dostyk Vladivistok INFRASTRUCTURE Baku TURKEY Dalian FOR BUSINESS AVIATION Tianjin JAPAN parking, storage, Chengdu maintenance IRAN Suchzhow Kobe Bender-Abbas CHINA Guangzhou Shilong INDIA Member of ACI Europe (European division of the International Hanoi Council of Airports), Association “Airports GA”. Mumbai Viet Nam The best regional airport with passenger throughput up to 0.5 million passengers (“Air Gate of Russia 2016”).
FREIGHT VILLAGE VORSINO
Kaluga Region is a participant of the New Silk Road logistics project, which 2018 unites the economic interests of Russia, China, South Korea, India, Vietnam, • The first container train Japan and Eastern Europe. It is being implemented as part of the Government from Kaluga Region’s Vorsino of the Russian Federation order on assistance in increasing the export of industrial park arrived in consumer goods in the PRC - Sinotrans (PRC), Russian Railways JSC, Russian January in Hanoi, the capital Export Center, Kaluga Region Government. of Vietnam. It took 20 days to deliver the cargo. Standard shipping takes 2 times longer. DESTINATIONS • The first cargo from Japan (Kobe port) to Russia arrived 2016 2017 at the Freight Village Vorsino • Dalian (Liaoning Province, PRC). • Export route to Shilong container terminal via Trans- • Soochow (Guangdong Province, PRC) has Siberian railway. The cargo been opened. (Fujian Province, PRC) - container service of Russian left Japan on August 17 and Railways Logistics JSC for expedited shipping. • The route to Chengdu arrived at the terminal on • Guangzhou (Guangdong Province, PRC) - delivery along the (Sichuan Province, PRC) was September 1, consequently new railway route via Yingkou is 30 days faster than delivery launched in September. It has the transit time was reduced by sea. It is five times cheaper than air delivery. become a new destination of successfully functioning 2.5 times compared to • FREIGHT VILLAGE VORSINO terminal received the first traditional sea delivery. container train from Mumbai (India) in autumn 2016. Vorsino-Dalian container export train. 40 Human Resources
Human Resources for Industrial Growth
12 > 80 31 Higher Various Secondary DUAL education areas vocational EDUCATION institutions train education SYSTEM specialists for institutions provide the regional personnel training (SINCE 2010) economy
SPECIALIZED EDUCATION CENTERS:
AUTOMOTIVE AGRICULTURE TEXTILE INDUSTRY INDUSTRY
PHARMACEUTICALS CONSTRUCTION IT-CAMPUS SECTOR Human Resources 41
MACHINE ENGINEERING, HEALTHCARE TRANSPORT AUTOMOTIVE INDUSTRY AND PHARMACEUTICS AND LOGISTICS Kaluga Branch of the N.E. Bauman Moscow K.E. Tsiolkovsky Kaluga State University K.E. Tsiolkovsky Kaluga State University State Technical University (MSTU) Obninsk Institute for Nuclear Power Branch of the Bryansk Technical University Branch of the Bryansk Technical University Engineering – branch of MEPhI in Lyudinovo in Lyudinovo Virtual and Simulation Technologies in Kaluga Branch of the Moscow State Kirov Industrial and Teachers Training Medical Education Engineering Research University of Railway Transport College named after A.P. Churilin and Education Center Kaluga Branch of the Russian Presidential A.T. Karpov Kaluga Transport and Practical Training Center at the Medical Academy of National Economy and Public Technological College Faculty of the Institute of Nuclear Power Administration Kaluga Technical College Engineering of the National Research Kaluga Transport and Technology Nuclear University MEPhI Sosenki Polytechnic College College named after A.T. Karpov “Active Molecules Park” Research and Kaluga Technical College Mechanization and Service Education Center College in Zhukov Transport and Service College in Sukhinichi, Kaluga Basic Medical College etc. Center for Training and Retraining of Medical Technical School Automotive Industry Specialists, etc. Center for Training and Retraining of Pharmaceutical Industry Specialists, etc.
AGRICULTURE AND FOOD INFORMATION AND CONSTRUCTION SECTOR PROCESSING COMMUNICATION Bryansk State Engineering and Kaluga Branch of the Russian State TECHNOLOGIES Technological Academy (special-purpose training) Agrarian University – Moscow Timiryazev Kaluga Branch of the N.E. Bauman Agricultural Academy Moscow State Technical University Moscow State University of Civil Engineering (special-purpose training) Kaluga Transport and Technology K.E. Tsiolkovsky Kaluga State University College named by A.T. Karpov Tula State University (special-purpose Kaluga Branch of the The Russian State training) Transport and Service College in Sukhinichi University for the Humanities Kaluga Utility and Civil Engineering Governor’s Agrarian College Balabanovo Branch of the Moscow Technical School named after I.K. Tsipulin Kaluga College of National Economy and Pedagogical State University Kaluga Organization and Technological Environmental Engineering Kaluga Technical College College Mechanization and Service College in Obninsk College of Technologies and Kaluga Multifunctional Center of Zhukov Services Applied Qualifications in the Field of Civil Center for Training, Retraining Kaluga College of Advanced Technologies Engineering and Qualification Enhancement of Agroindustrial Complex Specialists, etc. Kaluga Technical School of Electronic Obninsk College of Technologies and Devices, etc. Services Lyudinovo Industrial Technical School, etc.
CONSUMER GOODS TOURISM AND HOSPITALITY MANUFACTURING Kaluga Branch of the Russian Kaluga College of Service and Design International Academy of Tourism Kirov Industrial and Pedagogical College Obninsk College of Technologies and named after A.P. Churilin Services Kaluga Organization and Technology Kaluga College of Catering and Services College Contemporary Humanitarian College Kaluga Regional College of Culture and Obninsk Humanitarian College Arts Obninsk College of Technologies and Services Kaluga Branch of the Moscow Humanitarian Economic Institute Kaluga State University Tarusa Multidisciplinary Technical School 42 Digest
Investment Activity
From the beginning of 2018
12 3 4 3 investment groundbreaking plants plants agreements commissioned expanded
A new resident settles in ROSVA Industrial Park
Production modernization of JSC PRODO Poultry Farm Kaluzhskaya completed
Anatoly Artamonov, Governor of Kaluga Region, and A new resident was registered in Rosva Pyotr Ilyukhin, Director General of PRODO Group took Industrial Park of Kaluga Region on January part in a ceremony to celebrate the completion of a large 9th, 2018. It was a complex for organizing investment project on manufacturing improvements at a full cycle of technological washing from PRODO Kaluga Poultry Farm. The ceremony took place liquid food products for tank trucks of on January 29th in Dzerzhinsky district. The investment JSC “Biotechnological Complex – Rosva” program was carried out since 2014. During that time, and other companies. Modern washing a new hatchery and poultry houses, a slaughterhouse, complex will meet all the requirements of processing complex and a warehouse of finished products international, state and industry standards. were built, wastewater treatment facilities were The technological cycle of washing tank modernized. Kaluzhskaya poultry farm is one of the largest trucks involves steaming, washing with and most advanced in the system of PRODO companies hot water with the use of a cleaning agent, in mastering advanced technologies. RUR5 billion, RUR1 rinsing, disinfecting and drying by hot air. billion of which was provided by the government was spent The total investment in the project is more on the modernization. than RUR200 million. Дайджест 43
PSMA Rus Launches Full Production Cycle of Commercial Vans
PSMA Rus Kaluga plant launched the production of CITROËN Jumpy and PEUGEOT Expert commercial vans on March 2. The decision to expand the production line of cars produced in Russia complies with the strategic plan “Push to pass” and is aimed at strengthening the position of PSA Group on the Russian market. The launch of the new generation of PEUGEOT Expert and CITROЁN Jumpy in Kaluga has become another step in the modernization of PSMA Rus manufacturing capacities, which confirms the commitment of PSA Group to the development of localized manufacturing in Russia.
Mercator Kaluga Expands Production
Anatoly Artamonov, Kaluga Region Governor, and Alexander Belogortsev, Mercator Holding LLC President, on May 24th at St. Petersburg International Economic Forum held a meeting during which decided to further develop a plant producing road and utility machinery. The main result of the talks is that Mercator Kaluga plant will build new workshops. New workshops launch will not only increase the production, but also expand the range of the available machinery, especially large-size vehicles. By expanding production from forty to fifty new jobs will be created. About RUR500 million will be invested in the project. 44 Digest
SANATMETAL Commissions Manufacturing Facilities in Kaluga Region
Production facilities of Satanmetal CIS LLC – manufacturer of implants for traumatology, spinal surgery, stomatology, veterinary medicine, and joint endoprostheses were commissioned in Obninsk on July 4. Sanatmetal manufactures more than 25 thousand types of products made of special types of stainless steel and titanium alloys. The company works in 35 countries in America, Asia and Europe. The amount of investment in Kaluga Sanatmetal enterprise has amounted about RUR250 million. It is planned to produce 150-180 thousand units per year. The number of employees is 60 people.
Gabriel-Chemie-Rus-2 LLC Lays the Plant Foundation
A groundbreaking ceremony took place on June 28 in Vorsino industrial park, Kaluga Region. Gabriel- Chemie-Rus-2 plant to be built will manufacture colored superconcentrates and additives for plastics. During Phase 1 of the project about RUR400 million will be invested in the new environmentally clean manufacturing technologies with a production potential of 2,000 tons per year.
The planned number of new jobs is 49. The project is to be completed by the end of 2018. Дайджест 45
Greif Production Facilities Commissioning in Kaluga Region
Official opening of the first stage of IBC LLC Greif Vologda factory, a steel drums and containers manufacturer, was held on July 26 in Vorsino industrial park. This is the seventh enterprise of Greif company in Russia manufacturing barrels. Greif Inc. is the world leader in the field of industrial packaging. Currently Greif has over 140 factories in 50 countries, the company employs more than 13 thousand people. According to the agreement the investment volume in the project amounts to RUR800 million. The number of created jobs - 50. Production volume - 2 million barrels a year. 46 Digest
Manufaktury Bosco Factory under Construction
Manufaktury Bosco factory’s groundbreaking ceremony was held in Kaluga-South industrial park on September 14. Anatoly Artamonov, Governor of Kaluga Region, and Mikhail Kusnirovich, head of Bosco di Ciliegi Group, signed an agreement on construction of Bosco factory in Kaluga Region in December 2017. The facility is to reach its project capacity in 2019. About RUR1 billion will be invested in the project. The company plans to create 900 new jobs.
Novo Nordisk Launches Full Cycle Insulin Production
Full cycle production of Novo Nordisk insulins (production of ready injectable forms of the medicine with the use of Novo Nordisk original substances) was officially launched on September 19 in Grabtsevo industrial park. Novo Nordisk plant produces modern, unique for Russia insulins on the basis of a full cycle principle. Novo Nordisk plant in Kaluga Region is the only facility in Russia producing a complete portfolio of modern insulins. More than RUR8 billion was invested in the production facility, about 300 new jobs were created, the total area of the plant is 13,000 square meters. Дайджест 47
First Orak Plant Commissioned In Russia
The first stage of an ORAK plant manufacturing decorative synthetic moldings and ornaments, was officially commissioned on September 20 in Kaluga Region’s Vorsino industrial park. The investments amounted to RUR500 million. The number of new jobs on achievement of full production – 50. The area where the facilities will be located – 3.3 hectares. The commissioning of the new Belgian production facility is an illustration of fruitful international cooperation inspired by open and trust-based relationships. 48 Opening
Total starts hi-tech production of lubricating oils in Russia
— total amount of US$ million investment
Total has commissioned50 a new high-tech plant for ones for our Marketing and Services Division, as well engine and lubricant oils production and blending. The as for oil refining, in particular lubricant oils”, said facility is located in a strategically attractive area Patrick Pouyanné, President and Chairman of the of the Russian Federation - Kaluga Region. Anatoly Board, Total Group. “The aim of commissioning the Artamonov, Kaluga Region Governor, and Patrick plant in Kaluga is to become closer to the Russian Pouyanné, President and Chairman of the Board, Total customers. The new enterprise will strengthen our Group, took part in the ceremony which was held on position in the Russian and Central Asia markets. October 15. It is totally in line with our strategy for increasing The new Total plant will allow localizing the profitability on growing markets and will contribute to production of a range of high-quality lubricant oils for the financial performance of Total”. the Russian market. The total amount of investments “The opening of Total plant once again confirms has been $50 million. The production capacity of the that Kaluga Region is economically attractive for facility is 40,000 tons per year with the possibility of international partners and has a large investment increase up to 70,000 tons per year. potential. The plant is equipped with a fully automated blending We aspire to provide better conditions for companies system and the most modern filling lines. It took less that understand how important is to localize than two years of construction to open the plant. manufacturing in Russia, develop import phase- It occupies 7 hectares in Vorsino industrial park in out policy, protect the environment, and develop Kaluga Region. The plant will provide 50 new jobs. innovative, environmentally friendly businesses. The “Our active participation in LNG projects in the Arctic government of the region is willing to support them in illustrates that the Russia has become a strategically the important long-term projects like this one”, said important partner for Total Concern. In addition to Anatoly Artamonov, Kaluga Region Governor. hydrocarbons extraction, we consider the Russian market as one of the most important and growing Opening 49
COMPLETE LINE OF HOME-PRODUCED LUBRICANT OILS MANUFACTURED ESPECIALLY FOR RUSSIAN MARKET AND MORE
TOTAL VOSTOK celebrates the 10th The new plant will autonomously produce process-specialized off-road vehicles. anniversary of its operations in Russia in the whole line of Total and ELF brand In addition to the Russian market, the 2018. products, namely: company also plans to supply products • Total Quartz - for passenger transport; With the commissioning of its TOTAL to a number of countries of Central Asia VOSTOK manufacturing facilities, Total • Total Rubia - for commercial transport; and in Belarus. With the launch of local Marketing and Services division in production, corporate consumers in the • a full line of industrial oils; Russia plans to become not only one of region will be less dependent on imports, the leaders of the segment of premium • Fuel Economy line of lubricant oils, benefit from a significant reduction in automobile and industrial lubricant oils in which allows to significantly reduce production and lead times, optimization the Russian market, but also an important the fuel consumption of both freight of logistics and storage costs of finished player among local competitors. and passenger transport, as well as for products. 50 Business
Sberbank Developing Ecosystem
Sergey LUKIYAN Head of the Kaluga Office of Sberbank
Today Sberbank banks on the client- oriented approach. This is a business model where the client is in the center of all « activities. The most important thing is that when releasing a new product and service, Sberbank gives priority to client’s needs, rather than to its own profit. Essentially we create an ecosystem setting up our own start-ups and cooperating with large companies in business services, online medicine, organization of leisure and tourism, information technologies. One of the elements of our ecosystem is our own mobile portal “Sbermobile” that has been recently presented in the region, and the Beru project implemented jointly with Yandex. New areas of the bank’s interests correspond to its primary activity and supplement it opening new opportunities
Amidst tight price competition in the office the manager checks if Sberbank has chosen another way documents are completed correctly Tatyana FRISHKO – we strive to meet client’s needs and grants the client access to the Real estate transactions: through quality and a number of fully functional account. various services. We actively develop our digital capabilities. Today about 90% of our banking transactions Already today in the central office are available on-line, and Sberbank (Kaluga, Kirov St., 21a) and in the — I use all the services employees often do more for their region’s districts there are branches offered by Legky Start (Easy clients than just representing the of My Documents multifunctional start) I need in my business. financial organization. center providing state services to Though I have always thought individuals and legal entities based that services of Sberbank are We do our best to ensure that all on the “single window” principle. expensive, I was pleasantly our products, services and event Sberbank cooperates with developers surprised both by the user- processes are created and operate and real estate services. Clients can friendliness and the price. based on the client’s needs. This find an interesting offer and make a For the business, including approach allows us to place the client deal in the central office and receive a new one, this is micro money. in the center of our activity. mortgage decision at a time. A service Availability of a branch where office of the Federal Tax Service I can come and personally ask In particular, Sberbank offers the will be opened here in October, so questions is important for me. Field Client Manager (FCM) service. At businessmen will be able to resolve Another advantage is remote first a client reserves an account on a lot of their business issues at one service via an application. the Sberbank web-site directly from place, in particular to register legal home. Then a client manager contacts entities and individual entrepreneurs. him (her) and appoints a meeting. During the meeting with the client Business 51
Sberbank Business Online
Sberbank Business Online is a remote ADVANTAGES: banking system enabling clients using a standard Internet browser to prepare – Internet banking and send payment documents, receive information about cash flows on accounts, – SMS notifications interact with Sberbank employees through exchange of message in a free form, and – E-invoicing send requests for consideration by the bank for provision of particular services or bank products to a client. – Integration with 1C
Bonuses for new clients on account opening
Twofold increase of the first RUR15,000 Twofold increase of the first Receive 30 days of job payment (from RUR3,000 for the Yandex first payment of RUR10,000 publication and 7 days of to RUR75,000) advertising campaign on for replenishment of the access to the CV base as for advertising in myTarget payment of RUR15,000 Vkontakte advertising a gift account
Legky Start (Easy Start)
Sberbank offers new businessmen its Legky Start product with free of charge service. The package of services does not provide for any fee for opening a settlement account and additional payment for its maintenance. The bank does not charge any additional payment for internal transactions either. A client can receive a business card linked to the legal entity’s account and use it free of charge during the first year. The tariff schedule is prepared with view to individual needs of every client.
Account Up to RUR100,000 Settlements We can open All business number as a gift for with Sberbank an account services in one in 5 minutes promotion of your clients 7 days a from your office bank business week 52
TH Group starts to build the largest dairy plant in Russia
The foundation stone laying ceremony for a milk processing plant, the investor of which is Vietnamese TH Group, took place on September 7th on the territory of Kaluga Special Economic Zone in Borovsk district. An enterprise with a production capacity of 1,500 tons of milk per day will become the largest dairy plant of the Company in Russia. After starting to operate at full capacity, the enterprise will produce more than 10 production items. It is planned to complete the construction of the enterprise 2021. The investment volume in the project will amount to US$155 million. Событийный туризм 53 ALEAN HIGH QUALITY TRANSLATIONS Office 409, 48/8, Plekhanova St. Kaluga Center FROM FOREIGN LANGUAGES Tel.: +7(4842) 79-05-05 for Professional www.proftranslate.ru Translation PERSONAL MANAGER