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 Human resourcesThe Sverdlovsk Region has a population of 4,5 million, of which 83% live in towns and 17% reside in rural areas. People who are 30 to 49 years old comprise the largest portion of the workforce in the region (56,3%). Almost one fourth of the total workforce (24,9%) is made up of young people from 15 to 29 years of age, and the average age of the region’s workforce is 39. The Sverdlovsk Region’s workforce is highly educated, which is an important condition for increasing production efficiency as a whole and creates opportunities for attracting high-tech investment projects to the region. The region places great importance on training specialists for important investment projects; it sets up training centers, re-trains teachers and develops educational programmes to meet the demand for any skill or profession. PERSPECTIVE INVESTMENT PROJECTS OF THE REGION Industrial special economic zone “Titanium Valley” Russia has 24 special economic zones (SEZs) of four types: industrial (4), innovative (4), tourist (13) and port and logistics (3). In the Urals and Siberia, there is just one industrial SEZ, located in the Sverdlovsk Region – “Titanium Valley”, established by RF Government Decree No. 1032 of December 16, 2010. The realization of this project proposes high-technology production development in the Russian Federation by virtue of conditions of unique tax and customs duty exemption to the residents of the SEZ. The scope of “Titanium Valley” industrial priorities covers aircraft engineering, production of components for the aerospace and auto industries, metalworking, tool engineering, the machine tool industry, mechanical engineering, the robotics industry, microelectronics, and chemical production, including pharmaceuticals, composite materials, medical products, etc. Federal Law No. 116 of 22 July 2005 “On special economic zones in the Russian Federation” establishes a special regime of operating within an SEZ that provides a special system of benefits and preferences for its residents. The key advantage of an SEZ is the predictability of expenses (administrative, tax, resource, etc.) for investors doing business there. Among an SEZ’s other advantages are: a special tax regime; a special customs regime; special rates for lease and purchase of land and connection to infrastructure networks. Under Article 6, Part 4 of the Federal Law “On Special Economic Zones”, the Sverdlovsk Region Administration and the Administration of the Verkhnaya Salda City District of the Sverdlovsk Region ensure the due adoption within their powers of legal acts and regulations establishing the following tax benefits for SEZ residents by 30 July 2011:
The SEZ offers a free customs zone regime, under which foreign-made equipment and components can be imported for free, i.e., value added tax on imported foreign goods will be 0% and import customs duty will not be charged. An important advantage of the SEZ is that products manufactured there using goods produced abroad and goods from the Customs Union (Russia, Kazakhstan and Belarus) can be exported by SEZ residents to Russia and the Customs Union without VAT and duties until 1 January 2017 (if a company is registered in the SEZ before 1 January 2012), or outside the Customs Union without VAT and customs duty, provided the goods were sufficiently processed in the SEZ. An important advantage of a special economic zone is that the products produced in the zone using the foreign goods and goods of the Customs Union (Russia, Kazakhstan, Belarus), residents can take out either on the territory of Russia and the Customs Union free of duties and VAT until January 1, 2017 year (if the company is registered in the SEZ territory before 1 January 2012), or outside the Customs Union without VAT and customs duties, if goods have undergone sufficient processing in the SEZ. “Titanium Valley” is located between Verkhnaya Salda and Nizhny Tagil, two of the Sverdlovsk Region’s largest cities. It is also in close proximity to “Ural Boeing Manufacturing”, a US-Russia venture, and JSC “VSMPO-Avisma Corporation”, the world's main producer of titanium and titanium products and a supplier of titanium components for Airbus, Boeing, General Electric, Goodrich, Embraer, Rolls Royce, Safran, etc. “Titanium Valley” provides SEZ residents with easy access to rail and motorway transportation to destinations throughout Russia and around the world. The R-353 motorway near Nizhny Tagil connects the SEZ to the city and the entire Russian transportation network. A separate railway line links the SEZ with the Nizhny Tagil-Alapaevsk highway and Smychka railway station, which provides access to all of Russia's main railroads. Salka Airport, which is ready for use by the SEZ’s future residents, is just 20 kilometres from the SEZ. Yekaterinburg-based Koltsovo International Airport offers flights to destinations around the world. Stages of the SEZ creation: First stage:  Second stage:  Third stage:  Interested in attracting companies to participate in the project as SEZ residents.
Taking into account the industrial specialization of the area, the Sverdlovsk region is one of the largest importers of foreign machine tools in Russia. The Sverdlovsk region annually imports engineering products in the amount more than 2 billion euro and represents one of the most significant Russian outlet market for industrial products. Several years ago has began the purposeful activity of the Sverdlovsk region authorities including the selection of foreign partners to create a modern machine tool manufacturing in the Sverdlovsk region to the needs of local and all-Russian market. For this purpose, was elaborated the “Program of technical retooling, modernization of machine-building complex and machine tool building development in the Sverdlovsk region for the period till 2015”, assuming the creation of enterprises to produce modern numerical control machine tools. The Sverdlovsk region is a vast market for industrial products: a regional machine-building complex is represented 240 large and medium-sized enterprises with more than 180 thousand people employed in it. Cooperation in the machine tool field looks prospective with a glance on several key factors: the existence of high-capacious market of production capacities of the Sverdlovsk unloaded enterprises that are ready to submit their grounds for the manufacture of machine tools, the formation of the industrial special economic zone “Titanium Valley” with the aerospace specialization, the uniqueness of the local workforce , the availability of the Ural region as an important transport distributive node of the Russian Federation. Interested in developing cooperation with foreign machine-tool companies for creation of metal-cutting equipment productions (with computer-controlled centers) in the Sverdlovsk region.
In the past few years the Government of the Russian Federation has been consistently implementing a set of measures to promote the localization of production of motor vehicles. Currently, more than 15 assembly plants of foreign automakers are already working the Russian Federation. In this case, according to the Association of European Businesses in Russia during the first quarter of 2011, sales of new cars and light commercial vehicles in Russia continue to show significant growth (77% in this period). In the top ten models of passenger cars sold since the beginning of the year, nine produced in Russia. In the Sverdlovsk region there are more than 30 companies including “VSMPO-Avisma Corporation”, “PSM-Hydraulics”, “Ural Electrochemical Plant” FSUE, which have been already involved in the production of automotive assembling or are potentially capable of developing the manufacture of automotive components in the short term. Also in the Sverdlovsk region there are a number of automotive enterprises, including automobile complete cycle factory “Automobiles and Motors of the Urals” (“AMUR” CJSC), which produces trucks with capacity from 4 to 20 tons, municipal and special vehicles. “AMUR” has already a successful experience of cooperation with foreign partners in the production of passenger cars (Geely, Landmark), light commercial vehicles (Tata), as well as large-tonnage trucks (FAW). The company has considerable experience in supplying components for major Russian producers, such as “AvtoVAZ”, “TagAZ” LLC. The plant produces a wide range of components and spare parts for passenger and cargo models. For the manufacture of automotive components “AMUR” company has a universal and special equipment for metal processing. The Sverdlovsk region is recommended by the Ministry of Economic Development of the Russian Federation as one of the priority regions for auto assembly production. | ||||||||||||||||||