Kaluga Region of the Russian Federation
The Kaluga region is situated in the Central Federal District of the Russian Federation, 60 km from Moscow (Moscow city and the Kaluga region has a common border, according to Russian Government decision), borders with 5 regions of the Russian Federation. Area – 29,8 thousand km2.
Population – 1002,9 thousand people.
Regional centre – Kaluga city (343 thousand people) is situated 150 km to the south-west from Moscow.
Foreign economic activity
Foreign trade partners – companies from over than 90 countries of the world (look for details the last section of this document “Investment activity”).
Foreign trade turnover in 2010 comprised 6,4 bln. US $. The main commercial partners of the region are Germany, Finland, Austria, Japan, China, Netherlands.
Foreign countries share in total trade turnover of the region equals 94%. Fourteen factories were built in the Kaluga region in 2010. According to the investment prospects rating by World Organization of Creditors in 2011, the Kaluga region is on the first place in the Central Federal District and on the third one in Russia. Foreign investments’ volume to the Kaluga region is 4.6 bln. dollars from 2006 to 05.2011.
4 regional banks and 27 branches of foreign credit organizations function in the Kaluga region; two regional insurance organizations; 23 branches of insurance companies of other regions; 4 organizations rendering leasing services; organizations rendering consultative services in the sphere of economics, audit and management; Kaluga Chamber of Commerce.
According to the density index of railroads and motor roads the Kaluga region belongs to the top 20 regions of Russia. The territory of the region is crossed by two federal highways (Moscow-Brest, Moscow-Kiev).
Means of communications network of the region includes 872 km of railroads. Total length of road-transport network of general use in the region comprises over 5 thousand km, including 0,8 thousand km of federal and 4,2 thousand km of regional use. Share of hard-surface roads in the network of general use comprises 98,6% from the total length. Part of the Oka river (total length of 101 km) is used for navigation.
Over 39 organizations are engaged in science research and development sphere. Over 10 thousand researchers make great contribution to achievements of abstract and applied sciences. On the basis of Obninsk, the First Science City of Russia, an industrial park “Obninsk” and a new municipal industrial zone were created like a biotechnology, pharmaceutical and new material R&D complex. It forms a key element of innovation university and high-tech business infrastructure. The main purpose of this project is to create the effective system of support and promotion of science intensive, innovation projects. It implied a complete cycle organization: starting from scientific idea and till the mass production system. The purpose is a successful development and realization of innovative projects in sphere of bio-technologies, pharmaceutics and new materials.
Economically active population – over 530 thousand people (over 50% from the total population of the region).
Source of raw materials
About 500 deposits of 19 kinds of mineral resources were explored in the Kaluga region. For example, lignite comprises 36% of the exploited reserves in the Near Moscow basin; fire-resistant and refractory clays comprise 61%, glass making sands – 20%, phosphorites – 17%, tripoli – 10% of the exploited reserves in Central region of Russia. 43% of the Kaluga region territories is occupied by forests.
Nowadays 30% of the gross regional product are produced by industrial sector of the Kaluga region economics. 1/3 part of the population is employed in that sector. Because of the absence of own raw materials sources, machine building and metal working industries are successfully developing in the region.
At the same time the main industrial potential of the region is based on pulp and paper, construction materials, food industry enterprises. The total number of the Kaluga region industrial enterprises is over 2500.
Competitive production: vehicles, cars and trucks, auto electric equipment and auto components, turbines, turbine engines, radar equipment, track machines and equipment, TV-sets and domestic radio electronic equipment, food production, pulp and paper production, cardboard, woodwork, metal and metal-plastic constructions and products, sanitary ceramics, building materials, check-out equipment and others.
56 big and medium size enterprises are counted in the sphere of agriculture, 2200 farms. Well- developed food industry is based on powerful source of raw materials – agriculture. Basic specialization of the regional agriculture is a dairy and meat cattle-breeding. Together with it region cultivates grain- crops, potatoes, vegetables, flax. Aviculture is also well-developed.
The Kaluga region belongs to the top 10 regions of Russia with the most developed system of telecommunications. The region ranks 2nd (to Moscow) in the Central Federal District by the telecommunication network.
27 institutions of higher education (16 state and 11 private establishments) 31 institutions of professional and 405 of general education
There are over 4000 monuments of history and culture in Kaluga. Town architectural complexes, numerous monasteries, ancient country and estates and mansions decorate Kaluga land. There is a modern musical center by the name of the great pianist Svyatoslav Richter in the town of Tarusa. 28 museums and 480 libraries are functioning in the Kaluga region.
One of the key decisions in the investment policy of the region was creation of the special sites (industrial parks) for investor placement, so that they have no any infrastructure limitations during investment activity.
We succeed in providing our investors with all necessary communications. So the region became the pioneer in sphere of creation the most comfortable facilities for investors and their business in Russia. Also it was possible to form the team of qualified specialists, which works on creation of the necessary facilities for investor’s attraction. Moreover we created a strong team of professionals specially working on investment activity maintenance and support (two government departments).
During these years lots of big foreign investors were attracted on the territory of the Kaluga region. They had located their plants in industrial parks with well-prepared infrastructure, provided with water supply, gas supply, power supply, spur tracks and other services for placing several manufactures. Creation of industrial parks on the Kaluga region territory is based on the following principles:
- Tax concessions for the investor
- Providing land plots with all necessary infrastructure
- Providing support in tenant/property rights for the land plot
- General all-out support during realization of the investment project
There are 6 currently running projects of industrial park development (5 state and 1 private). First agro-industrial park is creating now for placing production of modern agricultural equipment (5 European and 3 Russian companies).
The region’s active investment policy allowed to attract 20 partners with total investments over 1,5 billions euro during only 2 last years. It plans to increase that sum up to 2,5 billion euro in the nearest future. Almost half of those projects are conducted by the foreign companies. It shows a real investment activity of the region and its successful collaborating with foreign investors. Thereby a new high-tech non-raw-material economics is regularly forming now in the Kaluga region. The region became a center of forming the biggest new auto-cluster in Russia.
Industrial park «Rosva» is putting into operations (April 2010) a new project by «Peugeot», «Citroen» and «Mitsubishi» (PSA Peugeot Citroen and Mitsubishi Motors Corporation signed a cooperation agreement concerning electric vehicles manufacture and selling, at the same time the production of Mitsubishi Outlander is planning in the Kaluga region). Total cost of this project is over 300 mln. Euro.
The «Volkswagen» Concern project is realizing in the industrial park «Grabtsevo». It produces «Volkswagen», «Skoda» and «Audi». Total cost of the project is over 700 mln. Euro.
«Volvo», the second world largest (own-branded + under “Nissan” and “Renault” brands) truck manufacturer, has built and put into operation a plant in «Kaluga – Yug» industrial park in record time. It plans to produce more than 15 thousand cars per year. Total cost of this project is over 92 mln. Euro. The company is planning to start excavator production in 2011. The amount of investments will be more than 50 mln. dollars.
International investment projects are also realizing in the innovation sphere, industry of building materials, timber and agroindustrial complex, food and processing industry. A number of world-known companies participate in those projects: «General Electric» (USA), «Samsung» (Korea), «L’Oreal» (France), «KT&G» (Korea), «SAB-Miller» (SA), «Hemofarm» (Serbia and Montenegro), «Nestle Purina PetCare» (Switzerland). Fitch Ratings Agency confirmed in 2009 the national long-terms rating of the Kaluga region as “A+ (rus)”. All the long-terms ratings are forecasted as “Stable”.
Additional information about Kaluga region and its investment projects can be found on the web-sites of our governmental organizations:
- Regional development agency of the Kaluga region
- Kaluga region Development Corporation
- Kaluga region Government web-site
- Interactive portal of the Kaluga region investment plots