Russia`s industrial and innovation infrastructure

Transcription

Russia`s industrial and innovation infrastructure
Russia’s
industrial and
innovation
infrastructure
Demo version
Russian Federation
Foreword
In a country such as Russia, with its vast territory and regional differences, the issue
of where to locate a business isn’t easy: one region, for example, may have unique
infrastructure, another the right people, and a third inexpensive premises. For over
25 years, EY has helped Russian and international firms find the most comfortable
environment for their enterprises, and investors always impress on us the need for a
single information source that they can use to get their bearings when surveying the
range of Russian investment opportunities.
Central Federal District
Northwestern Federal District
Southern Federal District
With this in mind, we have summarized our experience with clients and regional
administrations and prepared a report based on our study of production and innovation
infrastructure in the Russian regions, including systematic information on various
essential elements of business infrastructure as well as regional profiles. In preparing
the report, we also drew on other EY studies on specific infrastructure (e.g., maps of
industrial parks, studies of technoparks and business incubators and regional surveys of
the investment climate).
North Caucasian Federal District
Volga Federal District
Ural Federal District
Siberian Federal District
Far Eastern Federal District
Crimean Federal District
Consumer market (2014)
Indicator
Russian Federation
Median for Russian
constituent entities
Population
146.3m people
1.2m people
Economically active population
75.3m people
615,000 people
Monthly average income per capita
RUB27,700
RUB34,200
Retail turnover
RUB26,119b
RUB164.7b
Sources: Rosstat, EY estimates.
Russian Federation
Median for Russian
constituent entities
Equity investment, 2014
RUB13,528b
RUB86.8b
Foreign direct investment, 2013
US$26,118m
US$66.6m
Indicator
Russian Federation
Median for Russian
constituent entities
Universities (including branches) /
graduates in the 2013–14 academic year
2,451 / 1.3m people
21 / 9,000 people
3,605 /
727,000 people
21 / 2,000 people
Sources: Rosstat, EY estimates.
Education and science
Number of R&D organizations /
employees, 2013
Sources: Rosstat, EY estimates.
• Major companies interested in large territories – for greenfield projects, for example,
or business development in special economic zones (SEZ) and advanced development
zones (ADZ)
• M
► edium-sized companies that can study the range of industrial park locations
• S
► mall companies that can consider the options for renting/purchasing premises
in technoparks or business parks
Investments
Indicator
We believe that our report will be useful for a wide range of businesses, including:
In addition, this report will enable regional administrations to analyze consolidated
information on constituent entities of the Russian Federation and compare the figures
with those for their own region. They can use the data to improve the business climate in
their region by updating the list of promising industries, developing investment strategies
and using more effective means of interacting with investors.
Keeping clients up to date on key market trends is our central concern.
EY regularly publishes a variety of analytical materials, surveys and reports
covering the latest economic developments of importance for business.
In May 2015, EY completed a major new study – a survey of Russia’s industrial and
innovation infrastructure – and presented it at the St. Petersburg International Economic
Forum. This material draws on our long history of cooperation with clients and regional
administrations. Our study is a unique information product that should prove useful
to a wide range of private companies as well as regional leaders.
Facts and figures about the survey
• The most complete survey of Russia’s
industrial and innovation infrastructure
• Messages from regional leaders to
potential investors
• 300 pages of text, graphics and analytical
material
• Up-to-date information for decisions
on doing business in Russia’s regions
• Highly reliable information:
• The survey has been prepared
in two languages, Russian and
English
— 83 constituent entities of the Russian
Federation provided first-hand
information
— Exclusive material from Special
Economic Zones OJSC and the Ministry
for the Development of the Russian
Far East
• Around 800 industrial and innovation
infrastructure sites with their key
features: specialization, number of
residents, area
• Comprehensive profiles of all Russian
regions, featuring:
— Promising sectors for investment
and industrial specialization
— Examples of major private investors
in the region
— Statistical data in such categories as
the "consumer market," "investments,"
and "education and science"
• Detailed maps identifying infrastructure
sites
Our services in attracting and making investments in Russia’s regions
EY’s dedicated, multidisciplinary team
offers a wide range of services in attracting
and making investments for private and
state companies. We help clients
successfully develop their business in
Russia’s regions, selecting a range of
potential locations appropriate for a
specific business in view of the availability
of qualified people, the specifics of the local
real estate market, proximity to suppliers
and consumers, tax benefits and other
factors.
We also advise regional administrations on
the creation and financing of all types of
industrial and innovation infrastructure to
make regions attractive for new companies,
and we formulate development strategies
for regions and other large territories.
Our understanding of how government
agencies operate and our experience in
supporting international companies’
production localization and cooperating
with major development institutions allow
us to offer efficient solutions for investment
projects in all of Russia’s regions.
Report distribution
Format:
Print version
Language: Russian, English
Price:
RUB 8,000 for the Russian version and
RUB 12,000 for the English version.
The price is negotiable if several copies are ordered.
All prices are inclusive of VAT.
Contact details
If you have any questions on obtaining the report or are interested in advice
on attracting and making investments, please contact the Real Estate,
Infrastructure and Government & Public Sector Group:
Ilya
Sukharnikov
Senior Manager
Tel.: +7 (495) 662 9398
[email protected]
[email protected]
Contents
Contents
Full version
Demo version
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Industrial parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Industrial parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Special economic zones and advanced development zones . . . . . . . . . . . . . . 10
Special economic zones and advanced development zones . . . . . . . . . . . . . . 10
Regional innovation clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Regional innovation clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Technoparks and business incubators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Technoparks and business incubators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Consolidated data on investment projects in federal districts . . . . . . . . . . . . 29
Consolidated data on investment projects in federal districts . . . . . . . . . . . . 29
Regional profiles by federal district . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Regional profiles by federal district . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
(Survey excerpt)
Central Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Northwestern Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Southern Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
North Caucasian Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Volga Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Ural Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Siberian Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Far Eastern Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Crimean Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
Russian infrastructure sites by federal district . . . . . . . . . . . . . . . . . . . . . . . 247
Central Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
Northwestern Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
Southern Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
North Caucasian Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
Volga Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
Ural Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Siberian Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Far Eastern Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
Crimean Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
Russian infrastructure sites by federal district . . . . . . . . . . . . . . . . . . . . . . . . 45
(Survey excerpt)
Introduction
Typical company preferences and terms of use of production and
innovation infrastructure sites
Major
companies
Medium-sized
companies
Small
companies
Greenfield projects
SEZs / ADZs
Lease/acquisition of an
undeveloped land site for
building a plant in accordance
with the company’s needs
Lease of land sites taking
into account the ability
to reduce costs through
tax, customs and social
exemptions
Brownfield projects
Industrial parks
Lease/acquisition of
a land site with realties, e.g.,
industrial/office buildings
Long-term lease/acquisition
of industrial premises/
building or long-term lease/
acquisition of a land site
Technoparks
Business incubators
Long-term lease/acquisition
of premises/buildings
for similar companies
at one site
Lease of premises
at a reduced rate and the
support of newly established
companies during the
incubation period
In recent years,
many Russian
regions have made
substantial headway
in creating industrial
and innovation
infrastructure to
stimulate investments
in the real sector of
the economy.
A developed infrastructure makes a region much more
attractive to investors prepared to open new enterprises
in the region, promotes the establishment and expansion
of local manufacturers, and encourages the formation of
clusters and related production facilities.
In our study, we looked at various types of infrastructure:
industrial parks, special economic zones, technoparks
and business incubators, advanced development zones,
and regional innovation clusters. The report based on
this study gives a concise survey of the current situation
and development trends for each of these types; provides
regional profiles, including key figures and business
infrastructure maps; and lists infrastructure facilities along
with their salient features.
Sources and disclaimer
In addition to official data published by state and regional administrations, EY’s own
research findings and information specially requested from regional administrations
were used in preparing this report. For the purposes of our analysis, EY professionals
regarded this data, obtained orally and in electronic form, as reliable. We did not
independently verify their accuracy or completeness. EY assumes no responsibility for
the accuracy or reliability of the initial information provided.
8
Russia’s industrial and innovation infrastructure. Demo version |
9
Industrial parks
Classification
of industrial parks
Depending on the stage of project
completion, Russian industrial parks for
our purposes may be grouped as follows:
The industrial park
concept came to
Russia from abroad,
where it is a common
format for mid-sized
industrial enterprises.
In Russia, the initial
stage of industrial
park development
is over, and the
market is now going
through intensive
development.
In this period, growth in supply has more to do with project
realization and the expansion of successful sites than it
does with an increasing number of projects. Regional and
federal law continues to develop in this area, including
new terminology and mechanisms for benefits and
subsidies, and sites are becoming better prepared and
better equipped with the infrastructure needed to launch
production.
For the purposes of this study, the concept of an industrial
park will include manufacturing and industrial zones,
production development zones, production and warehouse
technoparks and industrial and logistics zones that
conform to the common definition:
Industrial park: A territory prepared by a local
administration or private entrepreneur in a nonresidential
zone and equipped with transport and utility infrastructure
for manufacturing, warehouse facilities and enterprises.
Industrial park resident: An enterprise that rents or
buys manufacturing/warehouse premises/land in an
industrial park and has gone through the full round of
approvals required for locating, building and operating
manufacturing facilities in the given territory.
10
• Finished (operating) industrial park:
A large area of land classified as
“settlement land” or “land for industry,
transport and communications” with
defined boundaries and approved as a
site “for manufacturing and warehouse
facilities,” in some cases with industrial
and warehouse buildings already in
place, that has been made available by a
private company or local administration.
The land has been surveyed, and
approvals have been obtained for
enterprises to be located in finished
buildings and new manufacturing,
warehouse and office facilities to be
constructed. The area is accessible to
all forms of road transport, has been
graded and divided into lots, and has
on-site roads and in some cases a rail
line. The park has been connected to
utility networks (electricity, gas, heat,
water and wastewater drainage).
The territory has residents and is
guarded.
• Industrial park in the formative stage:
A large tract of land categorized as
“settlement land” or “land for industry,
transport ...” with defined boundaries
that has been made available by an
administration or private company
as a site for manufacturing facilities,
warehouses and offices. The land is in
the initial stage of being surveyed and
prepared. The park has no new residents
as of yet. One or more potential
investors have stated their intention
to locate manufacturing facilities on
the site. Issues with respect to further
surveying, the construction of an access
road and on-site roads, hookups to
main utility networks and the required
utility capacity may be decided jointly by
the landowner and the future investor.
The park’s organizer is prepared to do
part of the preliminary work involved
in surveying, utility hookups and road
construction at its own expense.
• Planned industrial park: An area
allocated for an industrial park —
a large tract of land, possibly categorized
as agricultural land, that has been
made available for manufacturing and
storage facilities by decision of the
local administration or a private owner.
Surveying and site preparation are
just getting under way or haven’t yet
begun (clear boundaries haven’t been
defined, and there may be surface
or underground structures owned by
outside or unknown entities). Land
reclassification, further surveying, the
construction of an access road, topsoil
removal, landscape grading, drainage
and utility hookups are in their initial or
planning stages. The owner is prepared
to do this work either against guarantees
provided by the future resident or jointly
with the resident. There are not as yet
any residents or potential investors.
Russia’s industrial and innovation infrastructure. Demo version |
11
Key trends and indicators
37%
Regions of the Russian Federation
Industrial parks are largely concentrated
in the European part of Russia — 37% are
located in the Central Federal District, and
17% in the Northwestern and Volga Federal
Districts. Overall, the sector is expanding
geographically, but new industrial parks in
Russia are unevenly distributed.
industrial parks
Also, the regional administration should
have a specialized organization to actively
recruit investments, and a one-stop
shopping principle should apply at all
stages of the project.
Certification
Percentage of Russian
industrial parks in
the Central Federal
District
CFD
Experience shows that the first
residents are critical for a park’s further
development, so preferential terms are
frequently offered to attract them. Investor
interest depends on the professional level
of a park’s organizers.
In 2012, the Association of Industrial
Parks approved a professional Industrial
Park Standard, which sets both mandatory
and optional requirements for industrial
parks. In certifying a site, the Association
checks such mandatory features as access
to main roads, a management company,
the industrial park development concept,
available utility capacity, and a parcel of
land officially documented and prepared
for construction. As of April 2015, the
association had certified thirty-two
operating industrial parks and ten planned
parks.
State support and the regulatory
framework
Number of industrial parks in federal districts of the Russian Federation
7
sites
64
sites
135
sites
64
sites
14
sites
12
27
sites
11
sites
23
sites
21
sites
Central Federal District
North Caucasian Federal District
Siberian Federal District
Northwestern Federal District
Volga Federal District
Far Eastern Federal District
Southern Federal District
Ural Federal District
Crimean Federal District
The Law “On Industrial Policy in the
Russian Federation” of 31 December 2014
defines an industrial park as “a complex of
industrial infrastructure facilities intended
for the establishment or modernization
of industrial production and managed
by a management company that is a
commercial or nonprofit organization
created under Russian law.”
In 2014, the Russian Ministry of Industry
and Trade, together with the Association
of Industrial Parks, initiated support
for industrial parks as part of the state
program “Industry Development and
Enhanced Industry Competitiveness.”
Based on a selection process, twelve
organizations received interest rate
subsidies applicable to loans for the
formation of industrial parks.
Up to RUB1.6t have been allocated for this
program’s implementation in the period
until 2020. Under the program’s terms,
ten industrial parks in Russia received
subsidies from the Ministry for Economic
Development in 2014 as part of support
provided by constitutent entities of the
Russian Federation for small and mediumsized business. Part of the program’s
budget is to be used to subsidize interest
rates on loans and create the required
infrastructure for industrial park residents.
Support in terms of information,
organization and the state
information system
The Association of Industrial Parks is a
nonprofit organization uniting the majority
of Russian industrial parks as well as
service providers involved in industrial
construction to promote their common
interests. Over 90 legal entities are
members of the association, representing
65 industrial parks in 43 constituent
entities of the Russian Federation.
Russia’s industrial and innovation infrastructure. Demo version |
13
Results
At the start of 2015, the Russian
Federation had almost 366 industrial parks
that are in various stages of formation and
preparedness.
As shown in the diagram below, in the
five years since EY did the first largescale study of the industrial park market,
the supply of this type of infrastructure
by state of preparedness has changed
dramatically. The proportion of finished
sites has grown substantially — from 29%
in 2010 to 44% in 2015 (51 and 160 sites,
respectively) — while the proportion of sites
at the planning and formative stages has
steadily declined. This is because many
of the industrial parks previously at these
stages are now finished sites that are ready
to accept residents’ production facilities.
Industrial parks by state
of preparedness, 2010-15
Number of industrial parks
180
160
• Reduced rate of profits tax (by no more
than 4.5%)
• Reduced rate of assets tax or exemption
(for fixed assets used in production)
• Reduced rate of transport tax or
exemption
• Land tax exemption or a reduced rate for
sites on which industrial enterprises are
situated
• Subsidies partially covering costs for
the creation of utility and transport
infrastructure for industrial parks
140
120
100
80
Most of these benefits apply for a fixed
period not to exceed an investment
project’s payback period
60
40
20
2010
Completed
Source: EY research.
14
In many regions, industrial park residents
are granted tax subsidies and exemptions
in an amount depending on factors
stipulated by local law, such as the
amount of investments in fixed assets, an
investment project’s status as strategic for
the region’s economy, etc. The following
are common exemptions and preferences
for investors:
• Interest rate subsidy for loans to
management companies
200
0
Support for industrial park
residents
2012
Under construction
2015
Planned
Management companies that invest
in the development of industrial park
infrastructure may receive the following
preferences:
• Regional guarantees
• Partial subsidies from the regional budget
for costs involved in constructing and
reconstructing utility and transport
infrastructure
Practice, however, has shown that regional
preferences and local exemptions for
residents are not enough to guarantee an
influx of investors and capital. A region
becomes attractive to investors when
regional authorities take a proactive
position and follow a consistent policy of
lowering administrative barriers. Such
a policy is based on an understanding
that tax benefits are not lost revenues
that could have helped the budget, but
incentives for industrial development
in the region. The expectation is that
investments will subsequently yield tax
returns far higher than the initial “losses”
to the budget. In recent years, the number
of regions committed to such a policy has
grown. It is becoming increasingly clear
that an ill-defined system of benefits,
red tape and a lack of transparent
administrative procedures greatly reduce
the effectiveness of formal legislative
initiatives designed to attract investments
in manufacturing.
Reports of the Industrial Park Association
single out two problems standing in the
way of new industrial parks in Russia.
The first is the low quality of project
preparation. Business plans and project
documentation for new industrial parks
do not, as a rule, meet the standards
and requirements of the ultimate users
(investors) or of financial institutions that
are potential creditors.
A lack of debt financing, in turn, forces
park owners to wait for investors, hoping to
use their funds for business development.
Whereas it costs RUB 5 million to RUB 25
million per hectare to set up a full-fledged
industrial park, actual investments in the
infrastructure of new industrial parks in
Russia have averaged RUB 5.1 million per
hectare over the last 10 years.
Special economic zones
and advanced development
zones
Resident of a special economic zone:
A commercial organization (not a unitary
enterprise) that is registered in an SEZ’s
municipality and has contracted with the
SEZ’s management company and the
Russian Ministry for Economic Development
to carry out activities appropriate to
the type of SEZ in accordance with the
procedure and on the terms stipulated by
Federal Law No. FZ-116. Under this law,
residents of technology implementation
and tourist and recreation SEZs may also
be individual enterpreneurs.
Classification of SEZs:
In international
practice, special
areas that have
the infrastructure
needed for launching
production and
offer preferential
tax, customs and
administrative
systems are a
common means
of attracting large
enterprises.
16
Such areas are generally formed on the state’s initiative
to make the economy more competitive on international
and inter-regional levels and promote the development
of Russia’s regions, priority branches of industry and the
service sector as well as to expand exports. In Russia,
these purposes are served by special economic zones and
advanced development zones.
Special economic zones
A special economic zone (SEZ) is an area in Russia with
a special legal status and economic benefits designed to
bring Russian and foreign companies into priority sectors
of the Russian economy. SEZs are formed under a federal
program overseen by the Russian Ministry for Economic
Development (Federal Law No. FZ-116 of 22 July 2005).
The state management company Special Economic
Zones OJSC (SEZ OJSC) manages the majority of SEZs
and is responsible for recruiting and assisting resident
companies. In regions, SEZ OJSC is represented either by
branches or by subsidiary joint-stock companies. Current
law envisages four types of special economic zone.
• Industrial SEZs: Extensive territories in
industrially developed regions. Proximity
to industrial resources, available utility
capacity, accessibilty to all forms of
ground transport — these are only the
most important of an industrial zone’s
advantages. Reduced expenses make
the output of facilities in industrial zones
more competitive on the Russian market.
• Technology implementation SEZs:
Located in major centers of science and
education that have rich scientific
traditions and recognized research
institutions. Customs and tax benefits,
the availability of professional staff, and
a growing demand for new technologies
and modernization in various sectors of
the Russian economy make technology
implementation SEZs attractive for
venture capital funds as well as for
developers and producers of high-tech
products.
• Port SEZs: Located in proximity to key
transport routes and waterways.
A port SEZ may become a site for
shipbuilding, ship repairs and logistics
services and also serve as a base for new
land and sea delivery routes.
• Tourist and recreation SEZs:
Located in scenic areas and regions
popular as tourist destinations. Tourist
and recreation SEZs offer favorable
conditions for tourism, sports and
recreation activities, and other forms of
business.
Advanced development
zones
In the Russian Far East and Eastern Siberia,
there are plans to establish a network
of advanced development zones with
preferential conditions for non-resource
production that is oriented, among other
things, on exports. The formation of ADZs
is regulated by Federal Law No. 473-FZ
of 29 December 2014 “On Advanced
Development Zones in the Russian
Federation.” Under the law:
An advanced development zone is an
area in a constituent entity of the Russian
Federation where, by decision of the
Russian Government, a special legal regime
has been established for entrepreneurial
and other types of activity in order to
create favorable conditions for investments
and accelerated socioeconomic
development, as well as comfortable living
conditions for the public.
Russia’s industrial and innovation infrastructure. Demo version |
17
Key trends and indicators
Special economic zones
As of the start of 2015, Russia had thirty
special economic zones, including the
Northern Caucasus Resorts cluster, which
includes nine SEZs.
As with industrial parks, we can identify
three stages of SEZ development with their
characteristic features:
1.
Zones in operation, where
infrastructure is complete and there are
resident companies in operation
2.
Zones in the formative stage, where
infrastructure is under construction
and there are resident companies in
operation
3.
Planned zones, where pre-project and
project work is under way
SEZs by state of preparedness and type
Type of SEZ
In operation
In the formative stage
Planned
Industrial
Alabuga, Lipetsk,
Togliatti
Lyudinovo, Moglino,
Titanium Valley
Lotus,
Vladivostok
Technology
implementation
Dubna, Zelenograd, Innopolis
St. Petersburg,
Tomsk
Port
Tourist and
recreation
Biryuzovaya Katun
Total
8
5
Ulyanovsk-Vostochny
Murmansk,
Sovetskaya Harbor
3
Baikal Harbor,
Gates of Baikal,
Altai Valley,
Northern Caucasus
Resorts (two SEZs)
Northern Caucasus
Resorts (seven SEZs),
Russky Island
(Vladivostok)
14
One feature of SEZ development is the
large number of sites in the second and
third stages. Only 8 of 30 sites have a
completed infrastructure and residents,
and almost half of the non-operating sites
are tourist and recreation zones.
According to SEZ OJSC, at the start of
2015, SEZs of all types had 375 registered
residents, employing over 13,000 people.
Since the launching of the SEZ program,
investors have shown the greatest
interest in industrial and technology
implementation zones, and some 87% of
all SEZ residents were residents of such
zones at the start of 2015. Dubna and
Tomsk technology implementation zones
have the greatest number of residents:
89 and 58 companies, respectively. As for
port and tourist and recreation SEZs, many
are currently in the stage of infrastructure
formation or are looking for their first
residents.
Number of SEZ residents
400
375
350
306
300
Number of residents
An ADZ resident is an individual
entrepreneur or a commercial organization
(legal entity) that has entered into an
agreement to operate in an ADZ and is
included in the register of ADZ residents.
323
342
249
250
207
200
143
150
100
50
0
53
12
2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Special Economic Zones OJSC
Number of residents by type of SEZ
6
44
105
220
Technology implementation SEZs
Industrial SEZs
Tourist and recreation SEZs
Port SEZs
Source: Special Economic Zones OJSC
Total
8
Source: Special Economic Zones OJSC
18
10
12
30
According to SEZ OJSC, proposed
investments by residents total some
RUB 500 billion. As of today, more
than RUB 145 billion in investments
have been realized, and residents have
paid over RUB 14 billion in taxes.
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19
Geographical location of special economic zones
8
14
3
Tourist
and recreation
SEZs
Industrial
SEZs
Port
SEZs
5
Technology
implementation
SEZs
Murmansk
Murmansk Region
Moglino
Pskov Region
St. Petersburg
St. Petersburg
Zelenograd
Moscow
Dubna
Lyudinovo
Moscow Region
Kaluga Region
Lipetsk
Innopolis
Lipetsk Region
Ulyanovsk-Vostochny
Ulyanovsk Region
Togliatti
Samara Region
Northern
Caucasus
Resorts
Lotus
Astrakhan Region
Republic of Tatarstan
Alabuga
Republic of Tatarstan
Titanium Valley
Sverdlovsk Region
Sovetskaya Harbor
Tomsk
Khabarovsk Territory
Tomsk Region
Biryuzovaya Katun
Altai Territory
Gates of Baikal
Irkutsk Region
Altai Valley
Altai Republic
Baikal Harbor
Vladivostok
Republic of Buryatia
Primorsky Territory
Russky Island
Source: Special Economic Zones OJSC
20
Primorsky Territory
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21
Advanced development zones
In his address to the Federal Assembly
on 12 December 2013, the Russian
President proposed that a network of
advanced development zones be created
in the Russian Far East and Eastern
Siberia, providing special conditions for
non-resource production that is oriented,
among other things, on exports.
New enterprises in such zones would
receive
• Five-year tax holidays for profits tax,
mineral extraction tax (excluding oil and
gas), land and assets tax
• Preferential insurance rates
These zones would provide “business
conditions competitive with key business
centers in the Asia-Pacific Region”1,
including procedures for obtaining
construction permits, power grid hookups,
customs clearance, etc. This type of
investment opportunity has developed in
the following stages:
• On 29 December 2014, Federal Law
No. 473-FZ “On Advanced Development
Zones in the Russian Federation”
was adopted, establishing the legal
framework for ADZs and the procedure
for operating in such zones as well as
state support measures.
• On 12 February 2015, a shortlist of
three ADZ candidates was approved.
(On the map of infrastructure in the
Far Eastern Federal District, presented
further in this report, these sites are
indicated as finished.)
— Nadezhdinskaya industrial park site
in Primorsky Territory
— Three sites in Khabarovsk Territory,
where it is planned to manufacture
thermal insulation materials and
tubular piling as well as develop
metallurgy, logistics centers,
greenhouse complexes, etc.
— A site in Komsomolsk-on-Amur, where
components are to be manufactured
for the aviation industry
Brief description of approved sites:
Nadezhdinskaya
The Nadezhdinskaya ADZ project involves
the creation of an investment site with a
total area of 807 ha, complete with road
and utility infrastructure. Target residents
are investors with projects in the areas of
machine building, food, pharmaceuticals
and light industry as well as building
materials and production logistics.
According to the Far East Development
Industry, private investments as of January
2015 stood at RUB 100 million, and state
investments in infrastructure are planned
at a level of RUB 3 billion.
Support for investors
Khabarovsk
State investments needed for the creation
of infrastructure for Khabarovsk ADZs are
estimated at RUB 1.8 billion. The site near
Rakitnoye (in the environs of Khabarovsk)
is to have five proposed investment
projects that are largely industrial in
nature (metallurgy, construction, and food
products). There are also plans to build a
logistics complex. The Avangard Industrial
Park unites two projects worth around
RUB 4 billion. Khabarovsk Airport may
become a third site.
Komsomolsk
The ADZ in Komsomolsk, according
to preliminary data, is to get around
RUB 15.23 billion in private investments
and RUB 1.2 billion in state investments for
infrastructure.
One of the chief advantages offered by
SEZs is that residents’ initial outlays are
held to 30% of their capital investments by
granting tax, customs and other benefits
and also that the construction of common
utility and transport infrastructure is
funded by federal and regional budgets.
One of the main features that distinguish
SEZs from industrial parks and other
investment sites with completed
infrastructure is that the former are
free customs zones. This means that
import duties and VAT are not charged
on equipment, parts and materials
imported into SEZs, and export duties
are not charged on goods produced in an
SEZ and exported to countries outside
the Customs Union (other than Russia,
Kazakhstan and Belarus). Investors are also
Information on approved ADZ projects
ADZ
Specialization
Area, ha
Planned private
investments,
RUB million
Number of
residents
announced
Nadezhdinskaya
Light industry, food
industry, transport
services
807
6,733
3
Khabarovsk
Industrial, transport and
logistics
716
28,517
8
Komsomolsk
Industry
327
15,230
5
Source: Ministry for the Development of the Russian Far East
1
http://www.kremlin.ru/news/19825
22
Russia’s industrial and innovation infrastructure. Demo version |
23
interested in state guarantees of mutual
obligations and infrastructure, and they
sign such agreements with the Ministry for
Economic Development — in effect, with the
Government of the Russian Federation.
Since tax exemptions and preferences are
among the key conditions that SEZs and
ADZs offer to manufacturing companies,
we decided, for the purposes of our
study, to do a comparative analysis of the
tax regimes applicable to these types of
infrastructure.
In order to compare the investment appeal
of SEZs and ADZs, we analyzed federal
laws, regulatory acts of Russian constituent
entities, and local regulatory acts. For the
purposes of analysis, we selected corporate
profits tax, corporate assets tax, land and
transport taxes, mineral extraction tax and
social contributions. The table gives the
ranges of tax rates for a specific period
of time. A more detailed analysis of the
applicable benefits is required in order to
select a specific zone.
SEZs and ADZs generally provide
comparable tax benefits, although SEZs
offer more attractive and flexible profits
tax rates ranging from 0% to 15.5%.
In terms of assets tax, SEZ and ADZ
residents are in roughly the same position
and can count on a reduced rate of 0%
for a specific period, or an exemption. It
should be noted that assets tax and land
tax benefits for ADZs are established by
government decree. ADZs have a major
tax advantage over SEZs in that they offer
substantial benefits applying to mineral
extraction tax and social contributions.
Thus, ADZ residents will be eligible for a
preferential MET rate of 0% for four years
and a reduced social-contribution rate of
7.6%.
Tax exemptions for ADZ residents
Mineral extraction tax Profits tax
Assets
and land tax
Transport
tax
Social
contributions
0% for 4 years,
subsequently raised
incrementally to 100%
Possible
exemption
—
7.6% for
10 years
No more than 5% for
the first 5 years, no
less than 10% for the
next 5 years
Tax benefits for residents by type of SEZ
Type of SEZ
Profits tax
Corporate
assets tax
Transport tax
Industrial zones
0% to 13.5%
for 10 years
Exemption/
benefit
Possible
exemption
Technology
13.5% to 15.5%
implementation zones for 10 years
Exemption
Exemption for
5 to 10 years
Tourism and
recreation zones
13.5%
Reduction to 0%
Possible
exemption
Port zones
2% to 15.5%
for 10 years
Reduction to 0%
for 5 years
Exemption for
10 years
Social
contributions*
14%
to 28%
—
* In industrial zones, benefits with respect to social contributions are provided only to residents engaged in technology implementation
24
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Regional innovation
clusters
Key trends and results
In Russia, legislators have made active
use of cluster initiatives over the past few
years to make the national economy more
competitive, and these efforts are still in
the early stage of development. In August
2012 the Russian Government approved
a list of 25 pilot regional innovation
clusters. In finalizing the list of RICs, the
specially formed expert group considered
94 proposals from various regions of
Russia. The approved list includes clusters
in the following broad areas of technology:
• Nuclear and radiation technologies
• Production of aircraft and spacecraft
and ship building
Regional clusters
are a means of
bringing together
participants in the
innovation system
for the realization of
joint projects. As a
rule, such participants
represent business,
education and
science.
Synergy between cluster participants enhances the
competitiveness of a cluster’s output as well as of
individual cluster participants. Synergy is a product of
the geographical proximity of cluster participants and
expanded access to innovations, technologies, know-how,
specialized services and highly qualified personnel.
A regional innovation cluster (RIC) is a complex of
enterprises and organizations (cluster participants)
located in a defined territory and characterized by:
• A unifying science and production chain in one
or more areas (key types of economic activity)
• A mechanism for coordinating operations and
for cooperation between cluster participants
• A synergy effect: the high degree of concentration
and cooperation makes each enterprise/organization
more cost-efficient and productive2.
• Pharmaceuticals, biotechnologies
and the medical industry
• New materials
• Chemical industry
• Information and communication
technologies and electronics
Based on the proposals’ level of
development and potential, 25 approved
clusters were divided into two groups:
• Group 1: 14 clusters with well-developed
proposals and high potential
• Group 2: 11 clusters with development
programs that need further work
The 25 selected clusters are largely
located in areas with a high concentration
of scientific/technical and manufacturing
activity: the Central, Siberian and Volga
Federal Districts.
By 2016, according to the Strategy
for Specialized Cluster Development,
constituent entities of the Russian
Federation should have some 30 centers
of cluster development that have been
in operation for at least two years.
Projects included in development programs
for the period from 2012 through 2017
are to receive a total of almost RUB 1.5
trillion in financing for the development of
the network of regional innovation clusters.
RUB 480 billion (33%) are to come from
the federal budget and some RUB 213
billion (14%) from regional and local
budgets. Off-budget sources are expected
to contribute RUB 780 billion (53% of total
financing).
The two groups will be financed in differing
degrees. The 14 clusters in the first group
will get around 80% (RUB 1.2 trillion) of
funds raised for further development.
The remaining 20% (RUB 282 billion)
will go to support the 11 clusters in the
second group. In view of the high potential
of clusters in the first group, the funds
they get from off-budget sources and the
federal budget will total 55% and 30%,
respectively. The second group requires
greater state involvement, and the
proportion of federal investments (41%)
is thus higher than for the first group.
2
http://innovation.gov.ru/taxonomy/term/545
26
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27
Geographical location of regional innovation clusters
in the first and second groups
Legend
St. Petersburg
Moscow
Zelenograd cluster
Moscow
New materials, laser and
radiation technologies (Troitsk)
Moscow Region
Nuclear physics and
nanotechnology cluster in Dubna
Oil and gas refining
and petrochemicals
Electronics
Biotechnologies
Medical,
pharmaceutical and
radiation technology cluster
Energy
Radiation technologies
Tomsk Region
Pharmaceuticals,
medical equipment
and information
technologies
Puschino regional
biotechnology innovation cluster
Phystech XXI cluster
(Dolgoprudny, Khimki)
Laser technologies
St. Petersburg,
Leningrad Region
Moscow Region
Moscow Region
Health care and pharmaceuticals
Development of information
technologies, radio electronics,
instrumentation, communications
and infotelecommunications
Arkhangelsk Region
Regional shipbuilding
innovation cluster
Aircraft and spacecraft industry
Automotive industry
Krasnoyarsk Territory
Innovative Technologies
ZATO cluster
(Zheleznogorsk)
Kaluga Region
New materials
Shipbuilding
Information and
communication technologies
Engine building
Pharmaceutical, biotechnology
and biomedicine cluster
Instrumentation
Nizhny Novgorod Region
Nuclear technologies
Nizhny Novgorod industrial innovation
cluster in the areas of automobile
manufacturing and petrochemicals
Chemical industry
Moscow — first group of regional
innovation clusters
Nizhny Novgorod Region
Sarov innovation cluster
Moscow — second group of regional
innovation clusters
Republic of Mordovia
Energy-efficient lighting
technology and smart lighting
control systems
Ulyanovsk Region
Ulyanovsk-Avia Science
Education and Production
Cluster consortium
Ulyanovsk Region
Nuclear innovation cluster
(Dimitrovgrad)
Samara Region
Regional aerospace
innovation cluster
Republic of Tatarstan
Kama regional production
innovation cluster
Sverdlovsk
Region
Khabarovsk Territory
Titanium cluster
Perm Territory
Novy Zvezdny Technopolis
regional rocket engine
innovation cluster
Republic
of Bashkortostan
Regional
petrochemical cluster
Kemerovo Region
Regional aircraft-engineering
and shipbuilding
innovation cluster
Integrated processing of coal
and technogenic waste
Novosibirsk Region
IT and biopharmaceutical technology
innovation cluster
Altai Territory
Altai biopharmaceutical cluster
Source: Ministry of Economic Development of the Russian Federation, Russian Cluster Observatory
28
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29
Participants in regional innovation clusters
include such leading Russian scientific and
educational institutions and enterprises as:
• Institutes of the Russian Academy of
Sciences and the Russian Academy of
Medical Sciences, research centers and
universities, federal universities and
major institutions of higher education
• Major companies in the Russian
machine- and ship-building sectors,
the fuel and energy complex
and metallurgy
• Major Russian companies in IT and
telecommunications, as well as the
biotechnology sector
• Branches and subsidiaries of
transnational corporations
The number of a cluster’s participants
generally reflects the cluster’s geography.
The greatest number of participants
are concentrated in the Central and
Volga Federal Districts (38% and 25%,
respectively).
Technoparks
and business incubators
Number of RICs by district
7
49
92
307
161
202
Central Federal District
Volga Federal District
Siberian Federal District
Far Eastern Federal District
Northwestern Federal District
Ural Federal District
Source: Integrated Information Portal on State Support for
Innovative Business Development (www.innovation.gov.ru),
RIC sites
An important role in
regional innovation
ecosystems can
be played by
technoparks and
business incubators.
Business incubators
are designed to
provide support
for new business
projects in their
earliest stages, while
technoparks focus on
supporting companies
that are developing
and scaling up their
high-tech business.
It should be noted that, although technoparks and
business incubators have a long history in Russia, only
some of those in operation actually operate as their names
would imply. The core activity of many sites designated
as technoparks or business incubators remains property
rental, rather than quality support for residents’ business
objectives.
At the same time, a survey of Russian business
incubators and technoparks done by EY in cooperation
with the Russian Venture Company (RVC)3 shows that
some Russian innovation sites achieve results comparable
to their European and American counterparts. Most
regions thus face the task of bringing their business
incubators and technoparks up to the level of the
Russian leaders.
3
”Challenges and Solutions: Business Incubators and Technoparks in
Russia,” 2014, http://www.ey.com/Publication/vwLUAssets/
EY-business-incubators-and-technoparks-in-russia/$File/
EY-business-incubators-and-technoparks-in-russia.pdf
30
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31
As a result of the survey, the following
key success factors were identified for
innovation sites:
• Thorough screening of residents, taking
into account their development potential
• The experience of resident companies’
employees
• An expert board with broad powers
• A wide range of technological and
consulting services
Problems most frequently encountered
by residents are:
• Lack of qualified experts, especially with
business experience
A number of solutions suggested by survey
respondents formed the basis of strategic
recommendations made to RVC and the
relevant state agencies on support for
incubators and technoparks.
Key trends and indicators
As in the case of industrial parks, the
distribution of Russian technoparks and
business incubators is uneven, with over
half concentrated in the Volga and Central
federal districts. The Central Federal
District leads in terms of the number of
technoparks (41 sites), while the Volga
Federal District has the most business
incubators (75 sites).
• Lack of quality business projects
• Lack of seed investments and business
angels
• Insufficient demand for innovations
Number of business incubators and technoparks
in Federal Districts of the Russian Federation
2
sites
47
sites
79
sites
103
sites
24
sites
19
sites
28
sites
37
sites
11
sites
Central Federal District
North Caucasian Federal District
Siberian Federal District
Northwestern Federal District
Volga Federal District
Far Eastern Federal District
Southern Federal District
Ural Federal District
Crimean Federal District
32
Technoparks
Specialization of technoparks
The history of Russian technoparks began
in the 1990s. The first Russian technopark
was the Tomsk Science and Technology
Park, formed in 1990. In 2007, the
state program “Formation of Russian
Technoparks with a High-Tech Profile” was
launched under the auspices of the Russian
Ministry of Communication. As a result of
this program, over RUB 12 billion in federal
funds have been allocated for capital
construction, and 13 technoparks with
a high-tech profile, covering a combined
area of over 400,000 sq.m., are being
developed in 11 constituent entities of
the Russian Federation. These parks have
created over 18,500 jobs.
According to information obtained from
regional authorities for the purposes
of this report, the Russian Federation
currently has 117 technoparks. Most
Russian technoparks specialize in high
technologies, with 26% specializing
in information technologies and
telecommunications (including data
processing, storage and analysis, computer
technologies and telecommunication
systems), around a quarter in
electronics and instrument making,
13% in biomedicine (including genetic
engineering, pharmaceuticals and
microbiology) and 12% in chemistry and
petrochemistry. In other cases, “Other/
various sectors” is indicated.
26%
27%
12%
23%
13%
Information and communication
technologies
Electronics and instrument making
Medicine and biotechnologies
Chemistry and petrochemistry
Different industries
State support
On 16 February 2015, the Ministry of
Communication began the selection
procedure to determine which Russian
constituent entities would qualify for state
infrastructure subsidies for technoparks
with a high-tech profile. The selection rules
and the list of documents provided by
constituent entities were approved
by Government Decree No. 1119
of 30 October 2014.
According to the ministry, a new
support mechanism for the formation of
technoparks will become effective in 2015.
Costs incurred by constituent entities
setting up industrial parks and technoparks
will be reimbursed out of residents’ federal
taxes and customs payments. Although the
state program of support for technopark
construction officially ended in 2014, it is
expected to be extended until 2018. Over
the next four years, regions must meet
a number of commitments involving the
development of technopark ecosystems
and improved technopark efficiency.
Russia’s industrial and innovation infrastructure. Demo version |
33
Business incubators
According to information obtained from
regional authorities for the purposes of
this report, Russia currently has 231
business incubators, although considerably
fewer are actually in operation. Fiftythree incubators responded to the survey
“Challenges and Solutions: Business
Incubators and Technoparks in Russia,“
and most of these operate under the
auspices of regional or municipal
authorities. Over a quarter of our
respondents operate under the auspices of
institutions of higher education.
The reasons for the relative scarcity of
private business incubators in Russia are
substantial risks, a poorly developed legal
framework, business-model complexity,
modest expected returns and inadequate
state support for private sites.
Business incubators by form
of ownership
5%
28%
46%
Consolidated data
on investment projects
in federal districts
21%
Regional staff
Municipal staff
University staff
Private individual or company
Source: EY’s survey “Challenges and Solutions: Business
Incubators and Technoparks in Russia“
In preparing this
survey with the
assistance of regional
administrations, we
collected data on
the amounts that
private companies
have invested in their
enterprises’ fixed
assets in the last ten
years. Although not
all regions provided
data, the overall picture
of investments on a
national scale is quite
informative.
The greatest concentration of investments is in the
chemical industry. The largest projects are in various
regions, which is evidence of growing regional
specialization in the leading branches of modern industry.
The largest investment projects by region are shown in the
table on the following page.
An analysis of projects by specialization shows that the
industries with the greatest investment appeal in the last
ten years have been:
• Agriculture
• Oil and gas production, mining
• Timber and wood processing
• Food processing
• Construction materials industry
• Metallurgy
• Chemical industry
34
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35
Largest projects, in terms of investments, realized by private companies
in the last 10 years, RUB billion
Company
Line of business
Investments,
RUB billion
Khanty-Mansiysk
Autonomous District –
Yugra
Surgutneftegaz OJSC
Oil and gas production
Khanty-Mansiysk
Autonomous District –
Yugra
LUKOIL OJSC
Oil and gas production
721.4
Primorsky
Territory
National Chemical Group
CJSC
Construction of a mineral
fertilizer plant
435.4
Khanty-Mansiysk
Autonomous District –
Yugra
TNK-BP Holding OJSC
Oil and gas production
371.3
Tyumen Region
Sibur Holding JSC
Chemical production: plastics
and synthetic resins in
primary forms
358.8
822.3
Source: Regional administrations, economic ministries, development corporations
The largest number of projects are in
oil and gas production and mining, with
agriculture coming in second. These areas
are being developed in virtually every
federal district. Murmansk Region and
Kamchatka Territory specialize in fishing,
and the Kursk, Voronezh and Belgorod
Regions in animal husbandry. The Central
Federal District specializes largely in food
production: the largest projects are in the
Tula, Orlov and Vladimir Regions.
Since Russia is a world leader in oil, gas
and mineral production, regions with
the chief deposits — the Ural, Siberian
and Far Eastern Federal Districts — have
received greater investments in this sector
than other federal districts. The largest
investment projects are being realized by
Surgutneftegaz and LUKOIL in the KhantyMansiysk Autonomous District–Yugra and
by Irkutsk Oil Company in Irkutsk Region.
36
number in the Central and Ural Federal
Districts. The largest capital investments
in the last ten years have been made in the
Republic of Mordovia and Rostov Region.
The chemical industry has attracted major
investments in the last ten years. The
industry is developing thanks to growing
state support and substantial investments
by private companies. The main investment
targets are:
• Production of plastic and rubber goods
Total investments made by private companies in the last 10 years
by main branches of production in Russian federal districts,
RUB billion
50
15
• Wood pulp and paper production
The main investments in enterprises
producing paper pulp, paper and paper
goods are concentrated in the Central and
Northwestern Federal Districts. The largest
projects under way are in the Moscow and
Tula Regions.
The wood-processing and woodworking
industry has investment appeal in the
Republic of Khakassia, Tomsk Region and
Krasnodar Territory.
Construction materials tend to be
manufactured in proximity to the sources
of required natural materials. Investment
projects in this area are under way in many
regions of the country, with the greatest
The following map indicates Russian
federal districts that have seen the largest
investment projects in the last ten years.
• Fertilizer production
The timber and wood-processing industry
has two segments:
• Wood processing and woodwork
The chemical industry is well developed
in the Volga, Far Eastern and Ural Federal
Districts. Major projects have been realized
in Tyumen Region as well as Primorsky
Territory.
103
10.5
25.9
24.9
6.2
3.3
435.4
358.5
117.4
23.1
10
7.2
822.3
25.2
9.8
154
305.5
70
34.8
Agriculture
Food processing
Central Federal District
Oil and gas production, mining
Northwestern Federal District
Chemical industry
Timber and wood processing
Southern Federal District
North Caucasian Federal District
Volga Federal District
Construction material industry
Ural Federal District
Metallurgy
Siberian Federal District
Far Eastern Federal District
Crimean Federal District
Sources: Regional administrations, economic ministries, development corporations
Russia’s industrial and innovation infrastructure. Demo version |
37
Regional profiles
by federal district
Survey excerpt
38
Volga
Federal District
ARKHANGELSK
REGION
VOLOGDA
REGION
IVANOVO
REGION
KOSTROMA
REGION
VLADIMIR
REGION
RYAZAN
REGION
V17
V12
V13
V6
V16
V5
V7
V10
CL01
V18
Consumer market (2014)
Indicator
Population
Economically active population
Monthly average income per capita
Retail turnover
Volga
Federal District
29.7m people
VORONEZH
REGION
V31-32
V60-61
District median
V27
V44
V28-29
PENZA
V59
V67
V46
1,759,300 people
928,100 people
RUB24,000
RUB21,000
V101
V105
V41
V49
CHUVASH
REPUBLIC
CL05 V106
V55-56
V36
V63
V35
V43
V45
V53
V62
ULYANOVSK
REGION V153
П152 CL08
ULYANOVSK
VOLGOGRAD
REGION
V145
V146
RUB233b
Foreign direct investment, 2013
V68
V81
V84
V142
V86
V92
V85
Volga
Federal District
ORENBURG
REGION
District median
RUB2,356b
RUB111.3b
US$2,307.9m
US$74.2m
V88
V83
V87
KAZAKHSTAN
V93
REPUBLIC
OF BASHKORTOSTAN
ORENBURG
V20
V21
V24
V23
V80
Total
Volga
Federal District
District median
27 / 14,000 people
Number of R&D organizations / employees, 2013 633 / 114,000 people
29.5 / 5,300 people
40
V91
CL04
463 / 257,800 people
Sources: Rosstat, EY estimates.
V82
V89
UFA
V90
Education and science
Universities (including branches) /
graduates in the 2013–14 academic year
V76
V123
V141
Completed In progress
Planned
64
V2
V1
V69
4
V120
V121
V121
28
V8
75
V10
9
CL01
Industrial parks
Technoparks
V14
V25
SEZ
Business incubators
Regional innovation clusters
Sources: Regional administrations, economic ministries,
development corporations, the Ministry for Economic Development
of the Russian Federation, Special Economic Zones OJSC.
V22
V74
V77
V78
V71
V113 V129
Sources: Rosstat, EY estimates.
Indicator
V72 CL03 V73
PERM
Investment
Equity investment, 2014
V150
V115 V120
V79
Indicator
V69
SAMARA
CL07 V134
SARATOV
REGION
Sources: Rosstat, EY estimates.
IZHEVSK
REPUBLIC CL06
OF TATARSTAN V132
SAMARA
REGION
V137 V143
V140
PERM
TERRITORY
V149
V118 V114 V131
V135
V147
V1
V133 V112
V139
V148
V126 V127 V116
V119 V111 V107
V151
CL09
V138 V136
UDMURT
REPUBLIC
V117 V108
V122 V124 V125 П130
V155
V144
SARATOV
V75
V110 V109 V128
V121
KAZAN
V157
V70
MARI EL
REPUBLIC
V158 V156
V154
V100
YOSHKAR-OLA
V164
V167,171
V38,57,66
V26
KIROV
REGION
V96
V99
V159 CHEBOKSARY
V39-40 V50-51 V47
V48
15.4m people
RUB4,843b
V42
V65
V94
V160-163
V166
V165
V103 V102 V104
V54
V95
NIZHNY NOVGOROD
V97
REGION
V168-170
SARANSK
V58
V30
V33
KIROV
V2
V98
REPUBLIC
OF MORDOVIA
PENZA
REGION
V14
V4
V15
CL02
V37
V34,64 V52
V3
V11
V9
TAMBOV
REGION
KOMI
REPUBLIC
V19
NIZHNY NOVGOROD
V8
CHELYABINSK
REGION
SVERDLOVSK
REGION
Kirov Region
Message from the regional
authorities to potential
investors
“Kirov Region has strong
industrial, scientific
and human potential.
We support projects
to develop mineral and
forest resources as well
as create resourcesaving high technologies
and scientific and
production systems
guaranteeing product
competitiveness and
environmental safety.
We have all the
conditions that are
needed for successful
business and
investments.”
Consumer market (2014)
Population of the region / capital city
(Kirov)
1.3m people /
487,000 people
Economically active population
680,000 people
Monthly average income per capita
RUB20,400
Retail turnover
RUB166.1b
KOSTROMA
REGION
Equity investment, 2014
RUB56.3b
Foreign direct investment, 2013
US$11.8m
www.razvitie43.ru
NIZHNY
NOVGOROD
REGION
V3
24 / 9,600 people
Number of R&D organizations /
employees, 2013
23 / 1,600 people
Industrial / innovation infrastructure
Industrial parks
KIROV
REGION
MARI EL
REPUBLIC
REPUBLIC
OF TATARSTAN
Potentially attractive
industries for investment
KIROV
V2
Universities (including branches) /
graduates in the 2013–14
academic year
Current industrial
specialization of the region
KOMI
REPUBLIC
Education and science
Type of infrastructure
ARKHANGELSK
REGION
VOLOGDA
REGION
Investment
PERM
TERRITORY
UDMURT
REPUBLIC
V1
Completed In progress
Completed
Planned and
in progress
Total
1
2
3
Electricity balance
(regional generation as a share
of regional consumption)
Investment
web portal:
Kirov Region on the map
of the Russian Federation
V2
Selected major investors
55%
Sources of information on the Kirov Region: Rosstat, Corporation for Development
of the Kirov Region.
V1
Industrial parks
Industry
Equity investment
within the past 10 years
KES-Holding
RUB7b–15b
IKEA Trading und Design
RUB3b–7b
Pirelli
RUB3b–7b
Tele2
RUB1b–3b
Candy Group
RUB1b–3b
Regional tax incentives
Population data on the regional center is for the beginning of 2014,
while population data on the region is for the end of 2014.
Russia’s industrial and innovation infrastructure. Demo version |
43
Nizhny Novgorod Region
Message from the regional
authorities to potential
investors
“In Nizhny Novgorod
Region, investors and
the authorities are on
the same wavelength.
We guarantee
transparency and short
approval periods, tax
benefits and personneltraining support.
In 2014, 1,403 projects
worth RUB138b were
approved, and 1,042 of
these have already been
launched.”
Consumer market (2014)
Population of the region / capital city
(Nizhny Novgorod)
3.3m people /
1.3m people
Economically active population
1.8m people
Monthly average income per capita
RUB27,900
Retail turnover
RUB623.1b
Investment
Equity investment, 2014
RUB286.6b
Foreign direct investment, 2013
US$514.8m
Education and science
55 / 31,400 people
Number of R&D organizations /
employees, 2013
96 / 41,500 people
44
VLADIMIR
REGION
RYAZAN
REGION
V13
V6
V16
V5
V7
V10
V17
V12
NIZHNY NOVGOROD
V8
CL01
V18
V15
CL02
NIZHNY NOVGOROD
REGION
Specialization of regional
innovation clusters
Planned
Industrial parks
Potentially attractive
industries for investment
Technoparks
V8
CL01
MARI EL
REPUBLIC
KIROV
REGION
CHUVASH
REPUBLIC
V4
V10
V19
V14
V4
V11
V9
Completed
Current industrial
specialization of the region
KOSTROMA
REGION
V14
Business incubators
Regional innovation clusters
Industrial / innovation infrastructure
Completed
Planned and
in progress
Total
Industrial parks
4
—
4
Technoparks
2
—
2
Business incubators
8
2
10
Electricity balance
(regional generation as a share
of regional consumption)
www.mininvest.ru
IVANOVO
REGION
REPUBLIC
OF MORDOVIA
Universities (including branches) /
graduates in the 2013–14
academic year
Type of infrastructure
Investment
web portal:
Nizhny Novgorod Region on the map
of the Russian Federation
Selected major investors
37%
Sources of information on the Nizhny Novgorod Region: Rosstat, Ministry of
Investment Affairs of the Nizhny Novgorod Region .
Industry
Equity investment
within the past 10 years
LUKOIL-Nizhegorodnefteorgsintez LLC
RUB100b–300b
United Metallurgical Company (Viksunsky
Metallurgy Company OJSC and OMK-Steel)
RUB50b–100b
RusVinyl LLC
RUB50b–100b
GAZ Automobile Plant LLC
RUB15b–50b
Regional tax incentives
Population data on the regional center is for the beginning of 2014,
while population data on the region is for the end of 2014.
Russia’s industrial and innovation infrastructure. Demo version |
45
The full version of the report is distributed on a commercial
basis and includes profiles for all 85 regions of the Russian
Federation.
For reference
Private investor companies
For the purposes of our study, a private company is a legal entity
whose share capital is no more than 50% owned by the state as
ultimate beneficiary. Data from regional administrations, economic
ministries, development corporations and the SPARK system were
used in selecting investor companies.
Russian
infrastructure sites
by federal district
Survey excerpt
Volga Federal District
Industrial / innovation infrastructure
No.
Type
Name
Area
Specialization
Number of
residents
The full version of the report includes descriptions of approximately 800 infrastructure
facilities located in the Russian Federation.
Kirov Region
V1
IP
Vyatskie Polyany
V2
IP
Igrograd
V3
IP
Slobodino
Metalworking, construction
materials
8
Children's goods
7
Metalworking, construction
materials, instrumentation
7
277 ha
Various industries
2
24
11
60 ha
2 ha
16 ha
Nizhny Novgorod Region
V4
Abbreviations
IP — industrial parks (including manufacturing and industrial zones, production development zones,
industrial manufacturing parks, manufacturing parks, production and warehouse technoparks,
industrial and logistics zones and agroparks)
SEZ — special economic zones, managed by Special Economic Zones OJSC
RSEZ — regional special economic zones, managed by regional authorities
IP
Bor-Tsentralny
V5
IP
DzerzhinskVostochny
680 ha
Automotive industry, motor vehicle
parts
V6
IP
No data (based on
facilities of OJSC
Zavolzhsky Motor
Plant
120 ha
Motor vehicle parts
Chemical industry, metalworking,
motor vehicle parts
21
Information and communication
technology
24
ADZ — advanced development zones
TP — technoparks (including technology implementation parks, science and technology parks,
IT parks, innovation and technology centers and science parks)
BI — business incubators (including centers for first-time entrepreneurs and young entrepreneurs)
ICT — information and communication technologies
IT — information technologies
V7
IP
Oka-Polymer
300 ha
V8
TP
Ankudinovka
5,401 sq.m.
V9
TP
Sarov
Various industries
57
V10
BI
CLEVER
23,000 sq.m.
3,688 sq.m.
High technology
29
V11
BI
Borsky
1,368 sq.m.
TBD
12
V12
BI
Vyksa
2,988 sq.m.
TBD
4
V13
BI
Dzerzhinsk
799 sq.m.
TBD
19
V14
BI
Krasnie Baky
No data
TBD
No data
V15
BI
Lyskovo
No data
Various industries
No data
V16
BI
Zavolzhsky
1,099 sq.m.
TBD
12
V17
BI
Pavlovsky
1,141 sq.m.
TBD
20
V18
BI
Sarov
8,525 sq.m.
Information and communication
technology, new materials
22
V19
BI
Tonshaevsky
1,859 sq.m.
Industrial production
C1 Completed
C6 In progress
Membership in specialized associations
M
ember of the International Association of Science Parks (IASP). The IASP’s mission is to make
international science parks and other innovation infrastructure sites as well as related national
associations more effective by linking them in a single network. In early 2015 the IASP had
398 members, representing 72 countries.
C
ertified by the Association of Industrial Parks. The association is a nonprofit organization
uniting the majority of Russian industrial parks and service providers involved in industrial
construction to promote their common interests. Over 90 legal entities are members of
the association, representing 65 industrial parks in 43 constituent entities of the Russian
Federation.
8
C10 Planned
Member of the International Association of Science Parks (IASP).
Certified by the Association of Industrial Parks.
Sources: regional administrations, economic ministries, development corporations, Association of Industrial Parks,
International Association of Science Parks (IASP)
48
Russia’s industrial and innovation infrastructure. Demo version |
49
Legend
Industries
Agriculture
Livestock
Crops
Fishing industry
Agroindustry
Biotechnologies
Construction
Education
Exploration for underground resources
Extractive industries
Extraction of fuel and energy resources
Mining (excluding fuel and energy
resources)
Types of business and industry specializations
Transport and telecommunications
Various services
Wholesale and retail trade
Processing industries, including:
Building materials and other non-metal
mineral products
Chemical industry
Electronic and optical equipment
Food processing, including beverages
and tobacco
Chemical industry
New materials
Light industry
Machines and equipment
Energy
Oil and gas processing and the
petrochemical industry
Manufacturing of vehicles and
equipment
Engine building
Radiation technologies
Aircraft and aerospace industry
Electronics
Health care and pharmaceuticals
Nuclear technologies
Shipbuilding
Rolling stock
Manufacturing of autos and
other vehicles, production of
automotive components
Laser technologies
Tourism
ICT
Forestry and woodworking, pulp and
paper
IT
Robotic engineering
Laser technologies
Shipbuilding
Aircraft and spacecraft construction
Biotechnologies
Health care and social services
Real estate, rent and services
Instrumentation
Generation and distribution of power,
gas and water
ublic administration and military security;
P
mandatory social security
Regional innovation clusters
Automotive industry
Finance
Nuclear industry
As far as possible, types of business and industry specializations are aligned with the Russian
Classifier of Types of Economic Activity ОК 029-2001 (OKVED). In some cases, industry specializations/
types of business and the corresponding icons are of a general nature, reflecting the essence of
business activity without matching any specific OKVED code. This is because many regions provided
information in a format that didn’t make use of codes.
Regional tax incentives
High rating in terms of regional tax benefits
Medical equipment
Metallurgy and production of finished
metal goods
Pharmaceuticals
Production and refining of oil products
Production and repair of household
appliances
Rubber goods
Medium rating in terms of regional tax benefits
Low rating in terms of regional tax benefits
The rating is based on EY experts’ analysis of regional tax benefits. For purposes of analysis,
we considered corporate profits tax, assets tax, transport tax and land tax. Our analysis takes into account
benefits provided under regional law in the form of a reduced tax rate and/or tax exemption.
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