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RUR 86 billion was invested in Kaluga Region economy in 2018

A joint extended meeting of collegiums of three Kaluga Region ministries (the Ministry for Economic Development, the Ministry of Finance and the Ministry for Competitive Policy) was held on February 27, 2019.  

A summary report on results of Kaluga Region social and economic development in 2018 and objectives for 2019 was delivered by Ilya Veselov, the Minister for Economic Development of Kaluga Region.

The gross regional product grew by 3% in 2018 and reached RUR 435 billion. The region’s real sector industries demonstrated growth exceeding the average figures for the Russian Federation.  Industrial production grew by 4.5%, the amount of shipped goods exceeded RUR 800 billion. Export grew by 11%.  

In his summary report Ilya Veselov mentioned top priority areas for the Ministry for Economic Development, namely attraction of investments and improvement of industrial infrastructure, provision of support to Kaluga Region industry, development of SMEs, and support to innovative activities.

In 2018 investments in fixed assets reached RUR 86 billion. Ilya Veselov said: “We addressed issues associated with the development of necessary infrastructure for industrial parks and SEZ. The list of major infrastructure projects commissioned in 2018 includes the first in the region (and the fourth in Russia) Sozvezdie digital power substation in Vorsino industrial park, and new Voilovo substation  at Lyudinovo site of Kaluga special economic zone. Successful implementation of those infrastructure projects helped debottleneck major projects. Transportation model for Vorsino industrial park was developed with due consideration of potential increase in traffic volume for the industrial park’s residents and for M-3 Ukraine highway reconstruction project”.

The development of Freight Village Vorsino multimodal transport and logistic center, being a part of New Silk Road international project, continued successfully. The number of routes increased significantly. In 2018 trains transported cargoes from nine ports of China, as well as from Vietnam, Japan, Mongolia, India, Latvia and Belarus.

Kaluga Region offers to potential investors sites located in 12 industrial parks, two Kaluga SEZ sites and in the town of  Sosensky priority social and economic development area. An application was submitted in 2018 to establish a new  priority social and economic development area in Kondrovo. Ilya Veselov said: “The development of industrial sites proved its efficiency. In 2018 14 new investment projects were launched at such sites, nine new production facilities were commissioned”.

In the last three years Kaluga Region gets a compensation from the federal budget for expenses associated with the development of industrial parks’ infrastructure. RUR 1,1 billion was compensated in 2018 (RUR 3.9 billion in three years).

Provision of support to the industry is another top priority for the Ministry for Economic Development of Kaluga Region. In 2018 the majority of processing industries demonstrated growth. The highest growth was registered in the automotive industry (134%), in manufacturing of railway equipment and transportation means  (131%), in manufacturing of electrical equipment  (123%), construction materials and automotive glass (121%).

Labor Productivity Increase and Employment Support national project’s implementation began in 2018. Lean production competence center was established in Kaluga Region, and participating companies were selected. Ilya Veselov noted: “Kaluga Turbine Plant OAO and Kalugaputmash AO were among the first companies to join the project. In 2019 experts from the regional competence center will render assistance to 20 regional companies.  We are to introduce lean manufacturing practices in 108 companies by 2014 to meet regional project’s requirements. Labor productivity in Kaluga Region is to grow by 5%”.   

In 2018 measures were taken to introduce improvements in the tax benefits’ system, regulatory acts were elaborated  to offer tax deductions to companies implementing projects  in the field of fixed assets modernization and revamping. Two special investment contracts were concluded in 2018 with AstraZeneca and NovaMedika. The first regional  special investment contract was concluded with Nestle, and a memorandum on establishment of food production and processing cluster was signed.  

Small and medium businesses strengthen their positions in Kaluga Region. SMEs’ share in Kaluga Region GRP equals  25%. SMEs sales in 2018 reached RUR 420 billion. They employ almost 150,000 people, i.e. about one third of economically active population. All key SME support mechanisms were in place, namely provision of subsidies to cover costs, municipal development programs, development institutions’ support, provision of properties.