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In the first half of 2024, the Development Corporation of the Nizhny Novgorod Region accepted 76 new investment projects for support, including in the spheres of industrial production, agriculture, food and processing industries, and tourism.
“The total volume of investment in the projects attracted with help of the Development Corporation since the beginning of the year is about 73 billion rubles. It is expected that more than 5 thousand jobs will be created after they are implemented, with over 1 thousand located in special economic zone “Kulibin”. These are good figures indicating investors’ growing interest in our region, which is also part of our work to improve the investment climate,” – noted Deputy Governor of the Nizhny Novgorod Region Andrey Sanosyan.
In total, 237 projects are currently supported by the Development Corporation with a total investment volume of 234.5 billion rubles, 27,406 are expected to be created.
Among the largest projects are the construction of a full-cycle dairy farm in Bogorodsky district (PM Group LLC, 5 billion rubles, 140 jobs), the second phase of the warehouse complex construction in Kstovo (Kstovo Development LLC, 2.5 billion rubles, 800 jobs), launch of construction materials production in Vyksa (Rubezh LLC, 1 billion rubles, 400 jobs), the production of thin food paper in “Kulibin” SEZ (Atlas LLC, 1.5 billion rubles, 112 jobs), the production of household chemicals and hygiene products (Vertex Ecoresheniya LLC, 7.5 billion rubles, 560 jobs).
“The Development Corporation is actively working to attract investors to the Nizhny Novgorod Region, and we can the growing interest in the region from both specialized industrial companies and companies producing consumer goods. We are supporting investors on all stages of the project implementation process,” – said Director General of the Development Corporation Igor Ishchenko.
Let us recall that any investor may contact the Development Corporation for advice and support. For this purpose, there is a specialized hotline functioning in the region: 8 (800) 350-12-52, as well as a chat bot on the investment portal of the Nizhny Novgorod Region: www.nn-invest.ru.
Nizhny Novgorod Region Development Corporation was created on the initiative of Governor Gleb Nikitin in the interests of the investor. It facilitates the implementation of projects at all stages, taking on obligations to interact with regional and local authorities, natural monopolies and other organizations.
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Governor of the Nizhny Novgorod Region Gleb Nikitin introduced to the Legislative Assembly draft amendments to the regional budget for 2024.
“The largest amount of funds provided by the July amendments for the development of the infrastructure of special economic zone “Kulibin” in Dzerzhinsk. We have received a long-term federal loan of 1.4 billion rubles. We are planning to use these funds to create water supply and sewerage networks,” – said Gleb Nikitin.
Additional 97.9 million rubles is also planned to be reflected in the budget aimed at the introduction of a unified model for orphanage organizations in the region.
“Our primary goal is to reduce the number of children in social institutions by four times in 5 years. It is important to increase the number of prosperous families through comprehensive support to families in crisis situations. Apart from that, we are planning to allocate 226.4 million rubles to help large families pay for housing and utilities. These measures meet the objectives outlined by “Demography” national project and presidential instruction for the Year of Family. It is planned that more than 23 thousand large families will receive this support in the Nizhny Novgorod Region,” noted Gleb Nikitin.
Additionally, 41.3 million rubles will be allocated from the budget for the implementation of the project “Pushkin’s Boldino – place of creative power” that won in the national competition among projects aimed at the creation of comfortable urban environment in small towns and historical settlements.
After the adoption of the amendments the budget revenues will be increased by 358.2 million rubles, the expenditures — by 4.3 billion rubles, reaching 324.1 billion and 374.9 billion respectively.
The budget deficit is purely technical and caused by the direction of balances at January 1, 2024 to the budget expenditures. At the end of 2023, after the budget was adopted, additional funds were received that could not be added to the budget revenues for 2024. The allocation of revenues from previous years to expenses of the current period does not lead to an increase in the public debt. An increase in the deficit in this case does not lead to an increase in the public debt.
Let us recall that special economic zone “Kulibin” was created in May 2020 in Dzerzhinsk. In 2023, the area of the SEZ was increased to 724 hectares. In April 2024, the construction of the engineering infrastructure was launched. More than eight kilometers of roads, gas supply, water supply and sanitation networks, telecommunications, local treatment facilities will be built there.
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In the first half of 2024, the Development Corporation of the Nizhny Novgorod Region advised more than 200 investors.
Over this period, the experts of the Development Corporation prepared proposals on state support measures for 79 projects, which is 13% more than in the second half of 2023. Most often, investors were interested in preferential loans from the Industrial Development Fund, preferential industrial mortgages, as well as compensation for the costs of creating infrastructure facilities.
There has also been an increase in the number of requests for selection of government support measures from investors planning to create glampings from modular non-capital buildings. In the second half of 2023, three such requests were registered, and in the first 6 months of 2024 – 8.
Additionally, 40 investors were advised on technological connection to electrical and gas networks, as well as issues of their reconstruction.
Apart from that, the Development Corporation received more than 100 requests for selection of sites for the implementation of investment projects in the first half of 2024. The companies were advised on the adoption of land plots, including the preparation of all required documents.
In April 2024, the production of unique waterproofing material – geomembrane – was launched in the region with the support of the Development Corporation. The production facility is located in Ilyinogorsk pf the Volodarsky municipal district, it belongs to GeoSM LLC.
Over the 6 months of 2024, the Expert Council of SEZ approved 7 new projects.
“Our primary goal is to create comfortable investment climate in the Nizhny Novgorod Region. The experts of the Development Corporation will assist any investor on each stage of the project,” — said Director General of the Development Corporation Igor Ishchenko.
Let us recall that any investor may contact the Development Corporation for advice and support. For this purpose, there is a specialized hotline functioning in the region: 8 (800) 350-12-52, as well as a chat bot on the investment portal of the Nizhny Novgorod Region: www.nn-invest.ru.
Nizhny Novgorod Region Development Corporation was created on the initiative of Governor Gleb Nikitin in the interests of the investor. It facilitates the implementation of projects at all stages, taking on obligations to interact with regional and local authorities, natural monopolies and other organizations.
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The Expert Council of special economic zone “Kulibin” located in Dzerzhinsk approved the applications of Vertex Ecoresheniya LLC, Invent Tyazholoye Mashinostroeniye LLC and Zegro LLC for resident status.
“By now, 27 companies have obtained the resident status, whose projects number more than 71.8 billion rubles of investments and more than 3,500 new jobs. The investors have occupied more than half of SEZ territory, and we can still see the growing interest from industrial companies,” — said Deputy Governor of the Nizhny Novgorod Region Andrey Sanosyan.
Vertex Ecoresheniya LLC aims to construct a full-cycle plant for the production of household chemicals and hygiene products. Specifically, the production of laundry and cleaning products, cosmetics and body care products, diapers, nappies and other hygiene products is planned to be launched. The investment volume exceeds 7.5 billion rubles, 560 jobs will be created. According to the company management, the project is targeted at import substitution.
Invent Tyazholoye Mashinostroeniye LLC aims to create a machine-building complex for the production of heat exchangers and metalworking equipment, which are widely used at industrial plants. The investment volume is 388 million rubles, 27 jobs will be created.
Zegro LLC aims to launch the production of receivers for compressed air and inert gases, nitrogen generators, modular compressor stations. These products are widely used in industrial production regulate the pressure in the supply system of compressed air, nitrogen and gas. The investment volume is 202 million rubles, 39 jobs will be created.
The management company of SEZ “Kulibin” is the Nizhny Novgorod Region Development Corporation.
“Today, the Expert Council has approved a number of investment projects that are important for the economy of the Nizhny Novgorod Region, specifically in terms of import substitution. SEZ “Kulibin” keeps attracting large investors, allowing to create new jobs and gradually increase budget revenues. Let me note that the products manufactured by SEZ residents is intended for both large business and ordinary consumers,” — said Director General of the Nizhny Novgorod Region Igor Ishchenko.
Let us remind you that the special economic zone (SEZ) of industrial production type “Kulibin” was created in May 2020 on the territory of Dzerzhinsk. In 2023, the area of SEZ was increased by 10 times, reaching 724 hectares. Thus, SEZ currently includes the state site (more than 400 hectares), as well as private sites of DPO “Plastic”, “Oka-Polymer” and “Sintez-Oka”. The preferential conditions of the SEZ reduce income tax rates for its residents from 20% to 2% in the first 5 years, to 5% in the next 5 years and 14.5% thereafter, and also establish zero rates for taxes on property and land and transport tax.
The procedure for obtaining resident status includes identifying a site for the implementation of the project together with a management company, registering a legal entity on the territory of the city. Dzerzhinsk, submission of documents to the management company, including applications for concluding an agreement, passport of the investment project, copies of constituent documents, certificate of registration of a legal entity and certificate of registration with the tax authority, certificate of absence of debt. Next, the investor defends the project at an expert council. Then a tripartite agreement is concluded with the Development Corporation of the Nizhny Novgorod Region and the Ministry of Economic Development and Investment of the region. Based on the agreement, the Ministry of Economic Development of Russia issues a certificate certifying the registration of the enterprise as a resident of the Kulibin SEZ.
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A tourist and recreation complex in the form of a glamping park is planned to be constructed in Venets village of the Bogorodsky municipal district
The project is supported by the Development Corporation of the Nizhny Novgorod Region. It implies the construction of two-storey cottages, a SPA center with a year-round outdoor pool and a panotamic restaurant. The investor of the project is Prostranstvo LLC.
“Our experts have helped the investor to choose to select a land plot and advised them on the existing support measures. The project will help to increase the tourist attractiveness of the Bogorodsky municipal and create new jobs, which is important for any district,” — noted Director General of the Nizhny Novgorod Region Igor Ishchenko.
The investment volume exceeds 105 million rubles, 31 jobs will be created.
“When selecting a site, we paid a lot of attention to its location. The Bogorodsky municipal district is pretty close to Nizhny Novgorod. The Development Corporation helped us a lot with the preparation of the project,” — said director of Prostranstvo LLC Tatyana Tumakova.
Let us recall that any investor may contact the Development Corporation for advice and support. For this purpose, there is a specialized hotline functioning in the region: 8 (800) 350-12-52, as well as a chat bot on the investment portal of the Nizhny Novgorod Region: www.nn-invest.ru.
Nizhny Novgorod Region Development Corporation was created on the initiative of Governor Gleb Nikitin in the interests of the investor. It facilitates the implementation of projects at all stages, taking on obligations to interact with regional and local authorities, natural monopolies and other organizations.
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When working on the new website, much attention was paid to the personal account, its functionality and convenience. It stores the history of interaction with the business ombudsman – both requests and solutions to them. For the convenience of users, the "Submit a request" button was placed on each page of the site.
"The new business ombudsman website is an important digital tool for entrepreneurs. Together with a professional team of developers, we tried to make our new website accessible, convenient for users in terms of navigation and searching for information required, submitting requests," commented Pavel Solodkiy, Commissioner for the Protection of Entrepreneurs' Rights in the Nizhny Novgorod Region.
The work on the new website started at the end of last year. The developers were tasked to design a website that would be understandable and convenient for entrepreneurs.
The design of the new website is made in a modern light style using smooth lines of elements with infographics. Color solutions and elements of the corporate style of the Commissioner are used.
In the development process, the structure of the main page was reorganized, the composition of the sections and subsections of the site was revised for the purpose of simplifying the search for information. Modal windows, standard navigation and interactive elements were implemented.
The "Public Support" section was also updated. Visually, it has become more attractive and functional. Now the information and contacts of the Pro Bono Institute specialists are presented in one place.
Reference: Pro Bono is an institute of professionals and experts in various industries who provide assistance free of charge. There are 18 experts in various legal fields working under the Commissioner for the Protection of Entrepreneurs' Rights of the Nizhny Novgorod Region. They help with legal expertise and assessment of questions and requests from entrepreneurs, with the development and promotion of important legislative and systemic initiatives for the business community, and the dissemination of positive practices for the protection of business rights.
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The Nizhny Novgorod Region moved up to the 2nd place on the National Rating of Investment Climate compiled by the Agency for Strategic Initiatives (ASI). The results were announced by Director General of ASI Svetlana Chupsheva on the 7th of July 2024, on the margins of Saint Petersburg International Economic Forum (SPIEF).
“74 regions improved their scores compared to the previous year, while the average integral indez of investment climate in Russia also increased by 6.5%. In the rating, we evaluate four criteria: regulatory environment, infrastructure and resources, business institutions, and most importantly – support and development of small business,” – said Svetlana Chupsheva.
Governor of the Nizhny Novgorod Region Gleb Nikitin noted that the region managed to make a significant breakthrough from 2017 to 2023, rising by 68 positions, and achieving the 2nd place on the Rating is a phenomenal but fair result of all the work carried out.
“Each year we attempted to move up even further on the Rating, and each year the task was more and more challenging. For us, this is a huge achievement, which I am personally proud of! The Rating stimulated positive competition among regions and development agencies, thus providing an impetus to always enhance one’s performance results and the national indicators in general,” – said Gleb Nikitin.
The Governor added that against the backdrop of sanctions pressure all regions are working to improve the business environment, so the competition is high.
“The only way to win this competition is to create truly favorable conditions for entrepreneurs in the region. This is a wide range of tools targeted at both systematizing the work with investors and finding the best approach to each project, including support measures and alleviating administrative barriers,” – said Gleb Nikitin.
In the previous year, particular emphasis was placed on two elements of the investment climate – development of digital services and work with municipal authorities. The investor’s “client path” was further improved – the investment portal, including investor’s personal account, was updated, certain services were fully digitalized.
Deputy Governor of the Nizhny Novgorod Region Andrey Sanosyan emphasized that the work with investors in the region had been significantly facilitated due to the establishment of the Development Corporation in 2018.
“The Development Corporation acts as a “one-stop shop” allowing investors to receive all possible support. Specialists of the Corporation may assist in selecting a site for the project, collecting the required documentation, and obtaining the necessary government support measures. The Corporation significantly simplifies interaction with various departments and resource-supplying organizations. The effectiveness of the organization’s performance has been confirmed at the federal level – yesterday, the National Association of Investment and Development Agencies presented the Development Corporation with an independent assessment, which confirmed the best result among all Russian regions,” – said Andrey Sanosyan.
He noted that in 2023 multiple preferential territories in the Nizhny Novgorod were significantly enlarged.
“Special economic zone “Kulibin” increased by 10 times – from 72 to 724 ha, territory of advanced development “Sarov” increased by 2 times – up to 74 ha. Furthermore, the expansion of territory of advanced development “Volodarsk” by 2,000 was also approved,” – added Andrey Sanosyan.
Let us recall Saint Petersburg International Economic Forum took place on June 5-8, 2024. SPIEF is held annually with the participation of Russian President Vladimir Putin, heads of federal departments and Russian regions, and heads of diplomatic missions.
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On the margins of Saint Petersburg International Economic Forum (SPIEF-2024), Executive Director and Deputy Chairman of the National Association of Investment and Development Agencies Rafael Khusyainshin presented an independent assessment certificate to Director General of the Nizhny Novgorod Region Development Association Igor Ishchenko. The document confirms the high level of work with investors organized by the Development Corporation in the region.
The Nizhny Novgorod Region Development Corporation scored high on all criteria. The overall score reached 95%, which is 5% more than the previous year. This is the best result among development agencies participating in the independent assessment.
“The Nizhny Novgorod Region keeps working to improve the conditions for investment activities, the Development Corporation being the key actor in this process. The organization helps to attract additional financial resources to the region, create new jobs, thus enhancing both the investment climate and living standard,” – noted Deputy Governor of the Nizhny Novgorod Region Andrey Sanosyan.
The independent assessment implies thorough diagnostics of the regional development agency, targeted at evaluating the effectiveness and quality of services provided to investors. It includes more than 80 criteria: general indicators and strategic planning, investor relations, HR policy, GR management and interregional cooperation. The assessment helps to analyze the organization’s performance: conduct an audit of all current activities, identify strengths and weaknesses from an independent perspective.
Additionally, the National Association conducted test purchases addressing the effectiveness of the Development Corporation’s responses to potential investors.
“We are constantly working to enhance the work with investors, government agencies and resource-supplying organizations, and the results of the independent assessment prove our efforts effective. However, we are not going to stop there and we will keep working to create the most favorable environment for investors in the region,” – emphasized Igor Ishchenko.
Let us recall that the Nizhny Novgorod Region Development Corporation was created on the initiative of Governor Gleb Nikitin in the interests of the investor. It facilitates the implementation of projects at all stages, taking on obligations to interact with regional and local authorities, natural monopolies and other organizations.
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The Nizhny Novgorod Region Development Corporation developed a versatile out-of-the-box investment proposal for the creation of tourist complex, including a glamping hotel. Such proposals are ready-made projects requiring minimum preparatory work from the investor. This allows for a fast launch of the project and significantly reduces its payback period.
“Out-of-the-box proposals are an interesting and potentially effective tool, which helps to attract new investors to the Nizhny Novgorod Region and solve social problems. On the federal level, the issue of including such proposals in the Investment Standard is being debated, but we have already started the work. For the region, it is important to make the best use of the resources at hand for the implementation of the best innovative solutions, allowing to further enhance the investment climate,” – said Deputy Governor of the Nizhny Novgorod Region Andrey Sanosyan.
For the creation of tourist complex, including a glamping hotel, requires nearly 45 million rubles of investment. The period of implementation is three months. The main advantages of the project are fast installation of structures, mobility and short payback period, as well as environmental friendliness and the possibility of year-round use.
The minimum requirements for the investment site (greenfield) include the following: total area of at least 0.6 ha, electric power of at least 7kW per house, well and septic.
Government support for the project may include a variety of measures such as tax breaks for organizations operating in the tourist industry, preferential loans, grants and subsidies for the development of the hotel business. Thus, VAT and property tax can be reduced down to 0% for a period of five years. Preferential lending implies for participation in the “1764” and “PSK” programs, a reduced rate of 9% (loan amount – from 50 to 500 million rubles) and preferential leasing of equipment. The provided grants and subsidies can be used for the acquisition, construction, modernization and reconstruction of accommodation facilities.
“Maintaining favorable conditions for the investors is one of the Development Corporation’s top priorities. Out-of-the-box proposals help to start the implementation of the project within a short period of time, saving both time and money. The Development Corporation will keep the work to develop and introduce new solutions of the kind,” – said Director General of the Development Corporation Igor Ishchenko.
To get more information about the out-of-the-box investment proposals, investors may contact the Development Corporation using the hotline number: 8 (800) 350-12-52.
Let us recall that the Nizhny Novgorod Region is one of the top three in the National Investment Climate Rating, and in terms of the efficiency index of the implementation of the regional Investment Standard, it ranks second after Moscow. In the Nizhny Novgorod Region, all elements of the Investment Standard have been introduced: the investment declaration has been upd ated and a se t of investment rules has been formed. Since 2018, the Development Corporation and the Development Strategy and Investment Council (investment committee) have been operating. A convenient investment card is available for business, which is a unified online database of investment sites in the region.
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