Invest Foresight: Lipetsk Region Is One of Russian Leaders by Investment Appeal

Invest Foresight magazine has published its May 2019 National Investment Climate Ranking, with regions ranked by their score.
No.
Region
Score
1
Tatarstan Republic
101
2
Lipetsk Region
97
3
Perm Region
86
4
Altai Territory
75
5
Rostov Region
73
6
Ulyanovsk Region
68
7
Volgograd Region
67
8
Sverdlovsk Region (incl. Yekaterinburg)
62
9
Tomsk Region
58
10
Tver Region
54

The Lipetsk Region is investing in the development of the infrastructure for its tenants. Municipal budgets for 2019, 2020 and 2021 were amended during the 49th session of the Lipetsk Deputy Council of the fifth convocation. The Lipetsk tech park will receive RUB 128 million to prepare the sites for tenant companies and infrastructure. This work already has some results as three more companies have been selected to become tenants of Lipetsk Tech Park in May. The number of tenants in the tech park already totals 30.
Zevs Tekhnologii is going to start production of drain cleaning nozzles. The use of these nozzles in heat supply system can reduce heat losses and allows spending 86% less money on diesel for cleaning utility pipelines.
The tech park tenants are also planning digital economy projects. The IT Service company is going to deliver a project aimed at testing and improving the pre-processing system for automation of payments between recipients (suppliers) and bank paying agents.
The unique feature of the project is that the front-end of the system is based on web technologies and can be monitored from any device connected to the Internet, including a mobile one. Elmeis is developing customizable algorithmic trade systems for managing funds under trust on stock, derivative and currency markets.
The Lipetsk SEZ hosts international investors. For instance, Austria’s DOKA GmbH is about to put its formwork factory into operation. Total investments in the company’s Lipetsk-based factory have already reached nearly EUR 9 million. Production of ReForma Standard plus, DOKA’s brand new formwork, will be fully based on the Austrian technologies and quality standards.
Germany’s KWS, a global leader in crop seed breeding, is building a plant in the Lipetsk SEZ to produce sugar beet hybrid seeds with the use of cutting-edge European technologies, Its investments in the plant will total RUB 1.2 billion.
In the Yeletsprom regional special economic zone, Cherkizovo Masla (a Cherkizovo Group company) will construct a plant for added-value processing of high-protein oilseed crops with a capacity of 2,000 tons of oil per day. The France-based Sucden Group, a soft commodity trader, has signed legally binding documents with TRIO Group to reorganize Yelets Sugar Plant into a joint venture. Sucden is a French private company with the annual revenue of around USD 6 billion.
The regional administration supports agricultural projects. The Farmer Support and Agricultural Cooperation Development regional project provides for RUB 143.25 million to be allocated for these purposes in 2019, including RUB 136.09 million from the federal budget. This year, the Mokroye agricultural enterprise is finishing construction of a cattle farm for 800 head on the premises of the existing milk factory. The company will be reimbursed for 20% of its expenses.
Many housing projects are underway in the region. 1,046 houses having 1,994 apartments in total were commissioned in January–April 2019, with their total floor area reaching 245.800 sq m. 188.300 sq m of residential housing (i.e. 77% of the housing commissioned over four months) were built by the local citizens for their own or loaned money.
GLOBUS Group is delivering a large project for construction of the Graff House residential estate in the center of Lipetsk. The company has signed a credit facility agreement with Sberbank of Russia to finance the project, with the deal value reaching almost RUB 0.5 billion. As part of the Road Safety and Quality national project, road construction contracts were awarded to vendors following the bidding process organized by the local authorities. The construction work has started in Lipetsk, Borinskoye and Kuzminskiye Otverzhki.