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Official Vladimir website

INVESTMENT CLIMATE


Summary

The Vladimir region is located in the "heart" of Russia. This area is widely known for its historical and cultural heritage. For centuries guests of the city have admired the "white stone" architectural monuments of Vladimir (Assumption Cathedral, St. Dimitrius Cathedral, and the Golden Gates) that have recently been added to the UNESCO World Heritage List.

A part of the Central Economic Region, the Vladimir Region borders on the Moscow, Ryazan, Nizhny Novgorod, Ivanovo and Yaroslavl Regions. Its territory is intersected by three major railroad lines: Moscow - Nizhny Novgorod, Moscow - Yaroslavl, and Moscow - Kazan. There is a developed network of motor-roads and railroads.

The area of the Vladimir Region is 29,000 km2 (11,200 sq. miles), and its population is 1,623,000 people (80% urban and 20% rural) The administrative center of the region is the city of Vladimir - one of the most ancient cities in Russia. It was founded in 990 by the Kievian Prince Vladimir Svyatoslavovich



Introduction

Vladimir is the administrative center of the Vladimir region and one of the oldest cities in Russia.


The population of the city (2004) is 333,800 citizens.


Vladimir is located in the Central Economic Region 180 km north-east of Moscow and is situated on the left bank of the Klyazma River.

Vladimir lies in a zone of moderate continental climate: the average summer temperature is +18?C, while the average winter temperature is -11?C. The average annual precipitation is 560 ml, approximately 2/3 of which falls as rain during the warm part of the year.

The combination of diversified industrial potential and historical heritage makes our region very attractive for tourists and businesspeople alike.



Economic Geography

Vladimir is integrated into Russia's economic scene through the road network. The transportation of most major goods is directed towards Moscow and Nizhny Novgorod. The M7 state highway (Moscow - Nizhny Novgorod) is currently being widened. 90% of the work has already been completed. All motor-roads connecting Vladimir with provincial and regional centers are well-paved. The roadbed can support loads of up to 20 tons. The total length of paved motor-roads in the city of Vladimir comes to 251 km.

The transport passage towards Moscow gives the city's enterprises access to the markets of Eastern and Western Europe. A container terminal is currently being constructed near Moscow (6 million containers a year). Near Nizhny Novgorod the construction of another container terminal is planned.

The closest large airport able to receive heavy cargo and passenger airplanes is located 100 km from Vladimir in the city of Ivanovo. The local airport can receive airplanes of interregional passenger conveyance.

Nearly all types of energy are imported from other regions of Russia. Coal is brought in by means of railroads from Vorkuta and Kuzbass. Electric power is supplied by power stations located in the Leningrad and Kostroma Regions. Petroleum products are supplied by the companies "Lukoil," "TNK," and "Tatneft" from neighboring regions.

Vladimir has a favorable location in terms of its proximity to capacious markets of consumer goods.

The constant population of Vladimir (as of 2003) - 349,300 people. The city's labor force is comprised 143,600 people, including 45,400 industrial workers.

The city's industrial potential includes 11 branches of the economic complex. In the structure of the city's industrial complex in 2002, mechanical engineering and metal-working comprised 42,9%, food-processing industry - 10,2%, electric power engineering - 32,5%, chemical and petrochemical industry - 9,3%, light industry - 1,5%, timber industry and woodworking - 1,4%, other - 2,2%.

The annual volume of industrial production in 2002 was 15,1 billion rubles, the index of physical volume comprised 98,6% of the level measured in 2001.

Recent growth in various branches of industry was achieved primarily by more intensive loading of existing production capacities, orientation of enterprises on the production of goods of high liquidity and high demand, and enhancement of the efficiency of management and marketing. Technological, infrastructure and trade ties between producers were renewed and strengthened.

Scientific and technological research in Vladimir is carried out by 20 organizations and enterprises, including 10 scientific research institutes and Construction Bureaus, 6 different industries concerned with scientific research, and two higher education establishments. In the city there are 44 secondary schools, 3 evening schools, 5 boarding schools, a pre-school child-care center, 13 establishments of supplementary education, 2 inter-school training centers, and 77 municipal pre-school educational establishments.

Professional training of young people is supported by 3 state and 2 private higher education establishments, 5 subsidiaries of Moscow universities, 11 technical secondary schools, and 14 specialized schools.

The city boasts a great number of cultural and historical monuments; and its parks, alleys and fountains make it very attractive. You may visit city's cafes and restaurants, designed in old Russian style, at any time of the day or night. There are 4 cinemas, a drama theatre, a puppet theatre, and a concert hall in the city. There are also approximately 32 libraries and 15 different interest-clubs. The visitors' pass for the city includes its world-famous historical monuments of the XII century - the Assumption Cathedral and the Cathedral of St. Demetrius of Salonica--and the Church of the Intercession on the Nerl and Bogolyubov Convent in Bogolyubovo, a suburb of Vladimir. The city-museum of Suzdal is located 30 km north of the city



Agriculture

Vladimir is more concerned with industrial than agricultural production; however, five enterprises do carry out agricultural work.

OAO Poultry Farm "Tsentralnaya", ZAO "Yurievetskaya" Poultry Farm, ZAO Pig Farm "Vladimirskoe", GUP Group of enterprises "Teplichnyi" and POVO "Vladzernoproduct".

The volume of gross agricultural products for the year 2002 was 1179.3 mln. rub or 163.6% compared to the level of 2001.


City's Land Fund: Total - 12387 hectares



Communication

The city possesses a developed communication network. The main provider is OAO "Elektrosvyaz", to which 80% of city's telephone communication and 100% of telegraph communication belongs. Each subscriber has access to the international telephone network.

The cellular communication network is developing very rapidly. There are 4 companies working in this sphere currently (functioning standards are NMT-4501, GSM-900, AMPS-800). There are also 4 paging companies and 5 radio stations.



Banking System

There is a two-level banking system in the city, including the main office of Central Bank of Russian Federation in Vladimir Region and several commercial banks, such as:
  • ZAO "VladBusinessBank",
  • OOO "VladPromBank"

    Branches:
  • Vladimir Bank of Sberegatelny Bank of Russian Federation
  • Moscow bank branches(including Moscow Industrial Bank, Autobank, Most-bank, SBS-Agro, Vneshtorgbank, etc)
  • Vladimir branch of Menatep-SPb

    Insurance System

    There are 12 functioning insurance companies, including: GOSSTRAH (state insurance company) "ROSNO", "Reso - garantiya", "Investstrah", etc.



    Culture and recreation

    Theaters, museums, art exhibitions, libraries, parks, cinemas, palaces of culture and clubs are always open for the citizens and tourists.

    There are 4 cinemas, a Drama Theatre, a Concert Hall, a Puppet Theatre, 32 libraries, 15 clubs, and a Planetarium.

    The Concert Hall ( Philharmonic Society), named after S. Taneev, can seat seven hundred. Performances of local artists and artists from the other Russian cities are held here.

    In the spring of 2004 The Center of Choral Music of Vladimir - Suzdal Rus was opened. Concerts of choral, symphonic and sacred music are held there.

    The Regional Academic Drama Theatre named after A. Lunacharskiy is one of the oldest theatres in the country. It was founded in 1848. The talented troupe's repertoire includes both classic and modern plays. The premiers always sell out.

    The Vladimir Regional Puppet Theatre welcomes children.

    The "Vladimir City Days" gathers citizens and tourists for food, family, and fun. Foreign delegations from Vladimir's sister-cities participate in this event.

    The "Vladimir Carnival" is held annually in June. The restaurants and the cafes of the city, designed in Russian style, attract tourists with their tasty cuisine and cozy atmosphere.



    Social issues

    Secondary and professional education

    There are 44 secondary schools, 3 evening schools, 5 boarding schools, a pre-school child-care center, 13 establishments of complimentary education, 2 interschool training centers, 75 municipal pre-school educational establishments, and a pre-school drawing school.

    Professional training of young people is supported by 3 state and 2 private higher education establishments, 5 subsidiaries of Moscow universities, 11 technical secondary schools, and 14 specialized schools.


    Medical institutions

    There are 21 hospitals, 44 clinics and one medical college here. The private sector of the health care system is being actively developed.


    Consumers' market and services sector

    There are several shopping centers: including: " Valentina", "Vostok", "Grand", "Opolie", "Slavyanskiy Bazar", "Oktyabrskiy" and the trading network "Dobryak".


    There are 3015 trading and public-catering businesses, among them:

  • approximately 1000 shops,
  • 400 public-catering businesses,
  • more than 800 wholesalers
  • 18 markets, trading centers and complexes.

    180 businesses and more than 2000 businessmen provide consumer services.



    Priority Directions in Investment Policy of Vladimir Administration

    Its geographical location, great industrial potential, high qualification of specialists, developed network of motor-and railroads, presence of reliable Russian banks, favorable legal sphere and strong position of the city administration make Vladimir attractive for both foreign and Russian investors.

    The total amount of investments in the year 2002 comprised 3164 million rubles.

    On the territory of Vladimir privileged conditions are offered for foreign investors. Different forms of municipal support for participants in investment activities exist, including tax and other privileges, investment tax loans, budget investments and city guarantees. The city is keen to support investment projects, which will enhance industrial potential, help solve social problems, and increase revenues flowing into the city budget.

    In the statute laying out these privileges, it is mentioned that municipal support of investment activities in the form of budget investments gives a right to the city of Vladimir to claim an equal part of the basic capital of the judicial person who received the budget investments.

    Forms of support are determined by the amount of money allotted by the budget and are legalized by agreements and contracts.

    The city administration has formed a database of investment projects, where social projects, municipal economy development projects, and projects of different enterprises and organizations are to be found.


    A special feature of city's investment policy, on par with a traditional search for foreign investors, is mobilization of inner investment resources, including:

  • Personal savings of citizens;
  • Insurance business reserves;
  • Income received by the use of municipal property;
  • Launch of investment activity of local banks through the support of credit policy, development of mortgage and leasing.



    The following priorities can be marked as the most important for the city of Vladimir:

  • Tourism;
  • Construction;
  • Machine-engineering and metal-working;
  • Utility services;
  • Utilities.








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