Lipetsk region is one of the leaders of Russian regions in the volumes of attracted investments.
Increase of the efficiency of investment process is key factor for the future of the country and its regions. The goal is to create the system of conditions which determine the favorable investment climate, to assist the investment and general culture of business, and also to assist reaching the best information security and safety of investment activities.
The reasons for investing in the Lipetsk region?
Lipetsk region – one of the most successful and fast growing areas of modern Russia, which occupies a leading position in the Russian Federation for many socio-economic indicators.
Small size and population, the region has high scientific, technical, industrial and investment potential, development infrastructure.
For ten years area is included in the group of leaders among the subjects of the Russian Federation by the indicator of investment attractiveness.
Credit ratings assigned by international rating agency the Fitch Ratings, supported by high liquidity indicators of the Lipetsk region and rational finance and debt management.
Improvement of the legal framework, reducing of the investment risks, availability of investment platforms became the basis of constant inflow of investments in the region. The share of investment in gross regional product is more than 30%.
Priority areas for investments are the car production, engineering, food processing, pharmacy, biotechnology. The region has all advantages – legal and economic – for business success. State guarantees for the investors implementing investment projects in the Lipetsk region.
1. Dynamic developing economy
Attracting of the investments – a priority area of the development. Lipetsk region – one of the most favorable areas for business development. During the period 2003-2013 investment volume by constant prices was increased by 4 times.
By the investment volume per capita (2013 – 87 thousand rubles) Lipetsk region ranks 5th in the CFA and the 23th place among the subjects of the Russian Federation.
2. The largest consumer market
Good geographical location of the region in the center of the European part of the Russia, 370 km south from Moscow (the distance from the capital to the regional center is 450 km). The region borders with the Kursk, Orel, Voronezh, Tambov, Ryazan and Tula regions. International airport “Lipetsk”, main railway junctions in Elec and Gryazy city, federal highways. Proximity to the capital – the largest market for sell almost any product is great advantage.
3. Investment climate – one of the best in Russia
Stability and predictability of the situation in the region. Leading position of the Lipetsk region among the RF subjects in various rankings: investment attractiveness, the minimum level of investment risk in credit ratings. Stability of the economic and social development indicators.
4. Stable investment philosophy
Transparency of the conditions of the investor entry into the region.
Support of investors by the head of the region, guarantee of the participation of the administration in business issues.
Politics of the Lipetsk region aimed on reducing of administrative barriers, is guaranteed non-interference in the administrative and business activities of the investor, protection from laws, aimed on the worsening the investor’s position within the competence of the Lipetsk region; minimize of the corruption risks; transformation of public and municipal services into the electronic form.
5. Appropriate products for the investor.
The area has three-tier system of creation and development of the points of economic growth, which allows investors to find the best opportunities for the business. Special economic zones of federal and regional levels, industrial parks – it is prepared for the production lands or premises with an engineering infrastructure.
1 level. SEZ “Lipetsk” – a platform for big business.
Level 2. Regional SEZ – best business environment for medium-sized enterprises.
Level 3. Private industrial parks in the municipal centers meet the needs of small businesses and individual entrepreneurs.
6. Complex system of developing institutions
Favorable administrative environment is provided by the development institutions.
One of them – the Lipetsk Region Development Corporation, which operates as a single control center, optimizing the process of entry of the investor in the region, prepares and offers to investors a platform with a ready infrastructure for business, allowing to reduce the costs of the investor up to 30% and accelerate the implementation of the project.
7. Modern system of state support
Administration of Lipetsk Region offers an equal opportunity for Russian and foreign investors. Investors are provided with significant government support.
8. A clear strategy for further development
Priority areas for investment attraction in the Lipetsk region are based on existing competitive advantages of the region, as well as the target program for the modernization of traditional industries and development of new economic activities:
- electrical engineering;
- production of construction materials;
- food and processing industry;
- alternative energy;
- logistics infrastructure;
- tourism and recreation;
- aviation industry (general aviation);
- production of agricultural, car equipment and components;
- pharmacy and biotechnology.
The investment strategy of the Lipetsk region for the period till 2020 is being implemented with providing a systematic method for choosing the areas of dynamic development of the region.
Investment memorandum of the Lipetsk region publicly declares a general principles and procedures for interaction between regional authorities and investors.
Are created special areas with special conditions for economic activities: a special economic zones of federal and regional levels, industrial parks. Projects are actively supported by use of public-private partnerships.
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The Lipetsk Region is situated in the center of European Russia at the crossing of the major traffic arteries connecting the capital of the Russian Federation with South Russia and North Caucasus, and western areas of Russia with the territories along the Volga. Lipetsk has a moderate continental climate.
The Region’s territory is about 24 thousand sq.km, that is, 0.14% of the Russian Federation (a little larger than the area of Israel but less than that of Albania).
The Region stretches 200 km from north to south and 150 km from west to east. The population is 1.2 million people. The Region is divided into 20 administrative territories: two urban districts and 18 municipalities.
The administrative center of the Region is the city of Lipetsk situated on the banks of the Voronezh River with population over 500 thousand people.
The Region is a high plain with heights up to 262 m in the West and flat lowland plain in the East. It has mineral deposits of limestones, dolomites, sand, clay and raw cement materials and leads in raw carbonate materials stock in the Russian Federation. There are substantial peat deposits in the Region.
Thick black earth occupies approximately 40% of the total territory of the Region while forests occupy about 9% of the same.
The Region’s flora counts around 1,200 species including 40 tree and bush species.
The territory of the Lipetsk Region includes areas with the preglacial relic vegetation such as Galichia Gora, Morozova Gora, Vorgolskie Skaly, Voronov Kamen, Plyushchan and Bykova Sheya. These areas comprise Galichia Gora natural reserve of the Lipetsk Region.
The Region has a diverse wildlife represented by over 60 mammal species, 250 bird species, 30 fish species, 8 reptile species and 8 amphibian species.
Thanks to its famous mineral springs and therapeutic muds discovered in 1871, Lipetsk has been known as a resort city for a long time. Lipetsk resorts have been operating since 1805. Lipetsk mineral springs were discovered as early as in the time of Peter I. Presently 13 mineral wells are exploited, with total water capacity of over 1,500 cub.m per day.
The Lipetsk Region was formed on January 6, 1954 by joining the outlying areas of the Ryazan, Voronezh, Kursk and Oryol Regions. They are native Russian areas populated hundreds of years ago. After the beginning of the Golden Horde’s invasion in 13th century, they became deserted as the survived population left ruined towns and moved to the northern and western areas of Russia.
Our Region revived rapidly in the 16th and 17th centuries due to reforms of Peter I who encouraged iron production as the ship guns for the Azov Fleet were cast here.
New plants – Stankostroy (a tractor plant) in 1932 and NLMZ (Novolipetsk Metallurgical Plant, currently OAO NLMK) in 1934 – were established in Lipetsk. Then, machine building plants started operating in Yelets.
The government decision to establish extensive iron and steel production in Central Russia and form the Lipetsk Region resulted in a fast development of Lipetsk and other cities. The Novolipetsk Metallurgical Plant was built by efforts of the entire country and the Lipetsk Region in particular. The foundation was laid for a strong construction sector and fast-growing transport infrastructure. Along with the dominating iron and steel industry, the Region strives to develop engineering, chemical, consumer goods, food manufacturing and other industries. The economic potential of the Region was used to boost the agricultural sector, upgrade production facilities and solve social issues.
As the years passed, Lipetsk turned from a small country town into a half-a-million population modern city with a well-developed infrastructure. Other cities of the Region have changed as well.
Small Business Development
For the last ten years, small and medium-size businesses have increased their contribution to the regional economy. Their GRP share grew 4.2 times; employment with SME increased 3.6 times, and their contribution to the regional budget (taxes paid by SME) went up by 3.2 times.
Today there are over 11.8 small businesses, 136 medium-sized companies and over 33.4 thousand sole proprietors operating in the region. In 2011 alone, SMEs created over 10 thousand working places. As for now, this sector employs over 167 thousand people.
Rapid SME development is facilitated by the regional business support programs which have been implemented since 2001. The range of supporting measures is expanded and adapted to the current needs.
In the last year, total SME financing under the Small and Medium Business Development 2009–2012 regional program exceeded RUB 175 million.
Financial support was provided to 52 investment projects. A total of 441 sole proprietors received financial aid of up to RUB 200,000 to establish their own business. Thirteen municipal initiatives related to SME development were financed which resulted in establishment of 42 companies.
A specific importance is given to measures aimed at increasing competitiveness of small businesses. In 2011, sixteen companies which introduced energy saving measures received government subsidies. The regional government also introduces new measures aimed at innovation development and SME support. Nine companies received subsidies to reimburse advance lease payments. Five small companies also received subsidies to implement innovations.
The Regional SME Support Fund pays much attention to social aspects of its operations. Loan interest rates remain the lowest in Russia – from 1% for agricultural farms and up to 4% for SMEs. These rates are 2.5 times lower than rates offered by micro loan funds from other regions.
In 2011, SMEs received 260 micro loans and 21 companies received guaranties of the Fund.
In 2012, its priority will be a deeper involvement into SME development, economic modernization, focus on the real sector, and a growing share in the non-trade sector.
The regional consumer market is stable and well satisfied with goods and services. It has a developed network of retail stores, catering facilities and service companies.
As of January 1, 2012, the regional consumer market includes 10.9 thousand companies, including 7 thousand retail stores and shops (64.2%), 1.4 thousand catering facilities (12.8%), 2.5 thousand service companies (22.9%) and 28 retail markets.
The consumer sector of the Lipetsk Region employs 25% of the economically active population. The consumer market forms 10% of the GRP which is the highest indicator among other industries (except for the processing sector).
An indirect indicator of the socio-economic situation in the region is a retail turnover per capita which was RUB 118.3 thousand per capita in 2011.
Lipetsk remains the 1st region in the Central Chernozem District and the 3rd in the Central Federal District by the retail turnover.
Major trends in the retail sector are the same as in other Russian regions. A growing share in the consumer market belongs to federal and regional retail chain stores. They account for 23.5% of the total sales.
Entertainment centers were also developing in the region. Taking into account demand for ready-made food, large retail stores open their own gastronomy departments.
Catering is an important economic sector.
Consumer services are provided by 2.5 thousand companies and 2 thousand sole proprietors, which employ 9,000 people. The service volume per capita was RUB 4,693.
An important role in the consumer services sector is played by small businesses which account for 88.9% of the total services provided (58% out of them provided by sole proprietors).
Lipetsk Chamber of Commerce and Industry
LipetskChamber of Commerce and Industry (Lipetsk CCI) is a non-state non-profit organization promoting the economy of the Lipetsk Region which represents and protects interests of the regional businesses under the Lipetsk CCI Charter and Russian Federation Law “On Chambers of Commerce and Industry in the Russian Federation”.
Lipetsk CCI is a member of the Russian Federation Chambers Network including about 180 territorial chambers and 15 representative offices abroad and of the World Chambers Network established over 400 years ago.
Lipetsk CCI was established in 1992 and consists of 380 enterprises and organizations with different forms of ownership. Today Lipetsk CCI is an effective and multi-functional entity able to support the entire business in the Lipetsk Region.
In 1997 Lipetsk CCI was accredited by the Chamber of Commerce and Industry of the Russian Federation among the first ten regional chambers. The accreditation confirms its high status and level of the services rendered and permits more extensive activities on the Russian and foreign markets to the benefit of the regional business development. Statements and certificates issued by Lipetsk CCI are recognized by the state and other authorities all over the world.
Lipetsk CCI is a member of the Central Federal District Chambers of Commerce and Industry Association and Black Sea and Caspian CCI Business Councils. Lipetsk CCI concluded over 36 Cooperation Agreements with the regional and federal entities and 24 foreign chambers and organizations.
Due to their membership in Lipetsk CCI the enterprises and organizations of the Lipetsk Region may use a wide variety of services rendered by high-skilled specialists on a first-priority basis, free of charge or at discounts.
In addition, members of Lipetsk CCI may:
- together with other businessmen significantly influence the social and economic life of the Region; and
- use opportunities and experience of the Russian and international CCI networks to succeed in business.
Lipetsk CCI maintains a number of public committees, among them Small Business Support and Development Committee, Information and Telecommunications Committee, Regional Quality Council, Advertising and Mass Media Relations Committee, Quality Control Managers Association, Regional Subcontract Center, Lipetsk Exporters’ Club, and Arbitration Tribunal.
A complete package of the Internet services is available to the individuals and organizations in all Lipetsk Region areas. The last stage of providing the broadband Internet access to the regional schools is in progress. The project on Internet access provision to each regional library is implemented.
Lipetsk Region Administration
Lipetsk Region Deputies Council
Lipetsk Region Administrative Authorities Office
Lipetsk Region Veterinary Department
Lipetsk Region Road Department
Lipetsk Region Healthcare Department
Lipetsk Region Property and Land Relations Department
Lipetsk Region Investments and International Relations Department
Lipetsk Region Investment and International Relations Department
Lipetsk Region Culture and Arts Department
Lipetsk Region Forestry Department
Lipetsk Region Education and Science Department
Lipetsk Region SME Development Department
Lipetsk Region Consumer Market and Pricing Policy Department
Lipetsk Region Agriculture Department
Lipetsk Region Population Social Protection Department
Lipetsk Region Labor and Employment Department
Lipetsk Region Environment Department
Website of Lipetsk Region Energy Sector and Tariffs Department
Regional Special Economic Zones
Lipetsk Special Economic Zone of Federal Level