Benefits from investing in the region
Dynamically developing economy
- For almost 10 years attracting investments has been a top priority issue for the region. During this period Kaluga Region managed to become one of the most attractive regions for business development. GRP per capita increased by a factor of 10, industrial production volume – by a factor of 17, foreign investment volume – by a factor of 15. 46 new businesses started in Kaluga Region.
- The region ranks first in Russia in terms of production growth rate and processing industries growth rate. It ranks third in the Russian Federation and first in the Central Federal District in terms of foreign direct investment per capita. The total volume of foreign investments from 2006 to the first half-year of 2012 amounts to 257, 5 billion rubles. Real GRP growth rate since 2006 – 161%. GRP average annual growth rate – 111,1%.
Availability of the largest consumer market
- The region is located in the very center of Russia, i.e. in the center of the largest consumer market. The distance between Moscow and the administrative center of Kaluga is 180 km. The distance Moscow and Kaluga Region borders is 0 km. Close proximity to the capital – the largest market for almost any product – is a clear advantage. Over 20 million people live within a 150-kilometer radius of Kaluga.
One of the most favorable investment climates in Russia
- Number 1 in investor attractiveness rating of the World Organization of Creditors (WOC). Kaluga Region ranks among top 3 leaders in direct foreign investment volume, successfully competing with the regions rich in natural resources.
- Other Russian regions take Kaluga investment climate for a model. Federal institutions use it as a basis for the development of conceptual guidelines – Standards to be applied by the RF regional executive authorities for ensuring favorable investment climate (Agency for Strategic Initiatives).
- In 2011 Kaluga Region received the largest grant from the Government of the Russian Federation (2 billion rubles) and entered into the top twenty Russian regions that reached the best results in attracting investments, developing the tax base, creating modern manufacturing businesses and new jobs.
Sustainable investment philosophy
- The fact that all projects implemented in the region are highly successful contributes to the reputation of the region. Investment culture that serves as a basis for building relationships with investors includes equal treatment for all investors, a project team committed to a common purpose, success and freedom of choice for suppliers.
- Our common goal is to implement investment projects within the shortest time possible. Administrative support and complete absence of bureaucracy accelerate approval processes.
Products well-understood by investors
- Our time-tested core business products are industrial parks. They allow to localize manufacturing facilities within the shortest time on transparent legal terms. Industrial parks located in different parts of the region are land plots with adjoining engineering infrastructure fully prepared to accommodate manufacturing facilities. Their total area exceeds 5 thousand hectares.
- Kaluga Region offers a range of products to suit almost all investors’ needs. A-Park and B-Park projects are Build-to-Suite (BTS) solutions for manufacturing companies, i.e. built to suit investor specific needs. The solution would also be an ideal fit for light-asset companies.
- A well-developed transport and logistics infrastructure. Kaluga Region has the necessary infrastructure to ensure the production process continuity – from supply of raw materials to end products delivery to consumers.
Integrated system of development institutions
- A system of development institutions contributes to beneficial administrative environment. The Ministry for Economic Development supervises the activities of development institutions. Each institution addresses specific issues of investors and is personally responsible for its area of competence.
- Kaluga Region Development Corporation is engaged in the development of industrial parks. The Agency for Regional Development is the state consultant. Industrial Logistics is the company, which addresses the issues of transport and logistics infrastructure. The Agency for Innovative Development acts as a state operator engaged in the development of hi-tech sectors of economy. Representative office of Kaluga Region under the Russian Government acts as an ambassador of Kaluga Region and deals with the issues of regional social and economic development at the federal level.
Attractive tax system
- The legislation of Kaluga Region provides tax incentives for investors. These are applied to profit and property tax and extended for a period of one to four years. The amount of tax benefits depends on the amount of investments (starting from 100 million rubles).
- Property tax benefits are provided to pharmaceutical companies for a period of up to five years.
Clear strategy for further development
The regional economic development policy is focused on innovations. Top priorities are – support for research and development and creation of infrastructure for implementation of R&D results. Conditions necessary to create high-technology automotive, bio pharmaceutical, transport and logistics clusters already exist. Infrastructure to support innovative companies has already been formed.
