Investment opportunities of
Sverdlovsk region
October, 2010
Sverdlovsk region
Structure of the presentation
1. Regional economy performance
2. Ten reasons to invest into Sverdlovsk Region
3. Investment infrastructure
2
Sverdlovsk region
Regional economy performance
3
Sverdlovsk region
Sverdlovsk region
Rating of Sverdlovsk Region
(2009):
Industrial Production
6
Retail turnover
4
Wholesale turnover
4
Capital Investments
9
Foreign Investments
8
194.8 thousand sq. km
4.4 million people
5
GRP of Sverdlovsk region (bln.USD)
40
35
30
25
20
15
10
5
0
37,926
32,195
26,41
24,06
GRP 2008
---------------------------------------------
Economic data
GRP structure in 2008, %
7
Trade
4,9
20,5
Other
2,9
Mining
5,3
0,4
Metal production
8,4
Equipment production
Woodworking
22
18,3
Agriculture
3,4
Construction
Transport
339
Moscow
126
Tyumen Region
57
Saint-Petersburg
Sverdlovsk Region
38
Republic of Tatarstan
37
Republic of Bashkortostan
30
bln.USD
Other manufacturing
---------------
The fifth place in Russia in 2008
6
Investments in 2009
SVERDLOVSK REGION FIXED CAPITAL
INVESTMENT
12000
mln. USD
10000
8000
6000
4000
2000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Foreign investments (million USD)
Investments, overall
1336,9
which includes:
Direct investments
of which:
contribution to capital
credits from foreign owners
Portfolio investments
Other investments
88,0
58,1
28,3
11,2
1267,7
7
Foreign trade
Trade partners of the Sverdlovsk region
Algeria
1.5%
China
3.3%
Other
21.4%
United States of
America
22.4%
Iran
1.8%
Hong Kong
3.7%
Great Britain
2.7%
India
8.2%
Germany
3.9%
Netherlands
6.3%
Italy
7.0%
Turkey
10.6%
Kazakhstan
7.2%
Basic categories of goods exported from Sverdlovsk region
Other goods
7.8%
Machinery,
equipment
production
13.7%
Food
0.7%
Metals and
metalware
48.4%
Minerals
products
1.7%
Chemical
production
24.6%
Wool and paper
3.1%
8
Sverdlovsk region
10 reasons to invest into Sverdlovsk Region
9
10 reasons to invest into Sverdlovsk Region
1. Stable Financial Position of the Region
Credit rating from Standart&Poor’s agency :
BB, stable outlook, 2009
2. Business-friendly climate
№ 3 among «Best Russian cities for business» according to Forbes’ survey of 2010
3. Active foreign economic activities
125 countries – trade partners of Sverdlovsk region
The foreign trade turnover of the
Sverdlovsk Region constituted more
than $9 bln in 2009
We have trade partners from 125
countries
Foreign investments in Sverdlovsk
Region constituted more than $1 bln
10
10 reasons to invest into Sverdlovsk Region
4. Developed transport-logistic infrastructure
The main city of the region –
Ekaterinburg ranks third among the
transport centers of Russia:
6 federal autoroads,
7 main railway roads,
airport “Koltsovo”
Developed motorways network
International transport corridor «West – East»
Ekaterinburg ring-road
Federal motorway corridors
Koltsovo international airport hub
Delivers services for international and domestic
long-distance air traffic
Sverdlovsk railway
The main transit and handling center for freight and
passenger flows going in «Europe-Asia direction»
11
10 reasons to invest into Sverdlovsk Region
5. Positive dynamics at the Labor Market
6. Stable position of industry
Industrial production index (from the beginning of 2010 corresponding to the
same period of 2009)
114,8
115,5
A number of companies continue
their technical re-equipment and
implementation of innovative
technologies to enhance their
competitiveness.
114
111,1
110,9
109,7
January
February
March
April
109,7
May
June
July
12
10 reasons to invest into Sverdlovsk Region
7. Unique scientific-research potential
Sverdlovsk region is one of the biggest scientific-research centers of Russian Federation
More than 130 scientific and research organizations working in various fields:
• Microbiology
•Chemistry
•Nanotechnologies
•Physics
•More than 20 others trends
--------------------------------
8. Reach resource base
25 ore-bearing deposits
8 copper mines
In Sverdlovsk region are mined and produced
(of Russian volume):
100% of vanadium
and 70% bauxites,
72% of asbestos,
56,4% of talc and soapstone,
11,3% of limestone,
12% of kaolin,
11% of refractory clay
13
10 reasons to invest into Sverdlovsk Region
9. Main city of the region is in compliance with international
standards of business infrastructure
The developed financial infrastructure is presented by leading foreign banks, the international advisers
There are a lot of business centers and modern hotels.
10. Prospects for development of recreation zones
Sverdlovsk region is reach with natural resources, hot springs,
several ski mounting resorts are being developed.
14
Sverdlovsk region
Investment infrastructure
15
Sverdlovsk region
Development instruments
1. The
Middle
Ural
development
corporation
2. Venture capital fund of Sverdlovsk
region
Development
institutes
SEZ “Titanium valley”
(Verhnya Salda)
High
technologies
region
1. Technological parks
2. Industrially parks
3. The exhibition center
Territorial
development
Special
economic
zones
17
WWW.U2020.RU
The Internet support of investment projects in
Sverdlovsk Region
18
Sverdlovsk region
State Support of Investment Activities
Financial Support
Regional government guarantees
Subsidy of interest rates
Administrative Support
Changes in the legislation
Bills prepare:
-Reduction of income tax for newly created enterprises
during 5 years (18% -> 13,5%)
-Reduction of property tax from addition of mid-annual
property value of the enterprise (2,2% -> 0%)
Assistance in investors attraction
Creation and promotion of regional brand
Investment activity
of Region
19
Sverdlovsk region
Small And Medium Enterprise
Support of Small And Medium Enterprise:
The guarantee under the credit from the Regional
supporting fund of small enterprises
- reimbursement of costs enterprises up to $ 165 000
Financial Support
Microfinancing and grants (municipal supporting funds of
small enterprises)
- Business start up grants up to $ 16 500
Cheap credit at the level of the refinancing rate
Administrative Assistance
Reduction of overhead costs of the start up level (business
incubator)
- 5 business incubators of the total area more than 7000 м2
Information Support
Investors attraction assistance for the innovative projects
(Sverdlovsk venture fund)
Educational and Consulting Assistance
Training for the first time entrepreneurs «Start your
business»
-more than 6 000 people a year are trained
-more than 20 thousand people a year are consulted
-more than 2 000 people a year open new companies
20
Welcome to Sverdlovsk region!