Vladimir Artyakov: “We will become a successful region”

In August 2010, President Dmitry Medvedev signed a decree “On the transfer of the federally owned shares of the open joint stock company “International airport Kurumoch” to the ownership of the Samara region. The signing of the decree has given an opportunity to attract investment for the construction, complex restoration and modernization of the air transport infrastructure facilities of the Kurumoch airport. This is an example of the federal government support of the regional authorities’ initiatives. Vladimir Artyakov, the Governor of the Samara region, lists the ways of the region’s development.

– Mr. Artyakov, how do you assess the investment attractiveness of the Samara region? What business segments, in your opinion, are the most interesting for the foreign capital today?

– I am quite sure that we managed to create a favourable investment climate in the region. Notably, it emerged from several factors: the trust and responsibility on the part of investors, private capital and business loyal legislation as well as from the availability of a goof number of start-up sites, infrastructure and qualified specialists.

The fact is we originally set a couse for a maximal investors’ orientation. It means, first of all, clear and precise rules of the game. Secondly, we always try to accommodate the needs of our foreign partners. Both in terms of privileges, state guarantees, subsidies and in the various “paperwork” issues.

We have a well-established practice, when a special government advisor supervises a major investor to help the businessman to establish the dialogue with tax authorities and to pass all approvals and conciliation procedures.

Our Council on Foreign Investment and the Corporation for the Development of the Samara region under the Government also work rather actively. Their main task is once again to help the investors in their projects. The fact is that currently investors from more than 100 countries successfully conduct their business in the Samara region supports our point of view on the political-wise decisions. Furthermore, among our partners there are such multinational corporations as Alcoa, General Motors, Renault-Nissan, Danone, Nestle, Siemens, Tarkett.

With regard to investors' interest in specific types of industries today, the most dynamic and fruitful cooperation has been established in automobile manufacturing, metallurgy, food industry, energetic, retail. There are some interesting projects on transport and communications. And these are only the major industries, which get the main inflow of foreign capital. At the same time there is a number of small productions, which development is also being sponsored by foreign partners. In general, there are 449 enterprises with foreign capital participation in the Samara region.

– What are the main competitive advantages of the Samara region in the context of attracting investment?

– First and foremost, it is necessary to emphasize the geographic attractiveness of our region. The region is located at the intersection of the strategically important international transport corridors “North – South” and “East – West”. It means we have a unique transit potential. That is why the development of the transport and logistics complex attracts careful attention of the regional Government.

Today the area facilitates the transit cargo flows from Europe to Southeast Asia, Siberia, China and Kazakhstan. The existing transportation hub allows the best use of highways and railways. The inland waterways of the Volga-Baltic system also enjoy sufficient loading: here the flow of goods is concentrated in Northern Europe, the Caspian and the Black sea regions’ directions.

In the near future the air transport system is planned to be developed: works on the reconstruction and modernization of the international Kurumoch airport are actively performed.

As a result, business has all the possible traffic arteries at its disposal, which is certainly one of the crucial factors in choosing our region as a platform for launching new products.

Another significant advantage in the rating of the Samara region is the availa­bility of labour resources. Lack of personnel is a major concern of investors in the Russian regions. Sometimes even the most highly profitable projects with high-wage rates simply can’t find proper human resources.

We don’t have such a problem. A pool of educated, economically active people live in the area. The Samara region was rated the eighth among Russian regions according to the level of development of human resour­ces potential in 2009. Moreover, analysts say that today we compete with the metropolitan areas in the availability of qualified personnel.

Finally, our foreign partners point out the diversified economic structure of the Samara region as an unconditional advantage. This is proved by the fact that the major Russian and foreign investors are present in every industry – from breeding to linoleum production.

– Please rate the dynamics of foreign investments into the region's economy. What key projects involving third-party investors would you single out?

– Even according to the most modest predictions the Samara region is going to experience a significant inflow of foreign capital. The dynamics is best seen through the figures, so let's get to specific data.

The total volume of accumulated foreign investment amounted $2134.2 million on January 1, 2011. Whereby only last year our economy received $1176.8 million, if compared to 2009 the increase makes up about 117%. During the same time, the direct investments also have increased considerably – up to $70 million.

Both the existing productions every one of which has its own full-fledged long term development plans and future planned projects allow us to talk about further increase in foreign investments. Each of the projects, in fact, is of key value to its respective industry. As well as for the economy as a whole.

Some of the large-scale projects which deserve to be mentioned here are: the creation of a special economic zone of an industrial-production type in the Stavropol sub-region. The construction of a high-tech industrial park Zhigulevskaya Valley. The organisation of production of high-tech chemical products. The development of the Tolyatti industrial-technological park and the one in Samara. The foundation of large poultry and pig-breeding complexes. The implementation of a number of programs for housing and road construction.

The agreements for some of these projects have already been signed by investors. There are some projects that provide co-financing from the federal budget. But the main thing is that our foreign partners express their interest. We have the confidence and the means to implement all of the planned projects.

– You have mentioned the creation of the special economic zone. How would you assess the prospects and value of such a large-scale project? What can be said about the current state of the project and its implementation?

– We have no less special hopes for the special economic zone. The project is really ambitious. And its implementation will allow the Samara region not only to confidently face the future but to become an integral part of the project.

Essentially, the SEZ is an area with a high concentration of scientific and industrial and technological capacities. Here there are all possible conditions for the development of innovative business, for turning the innovation into the basic tool for enhancing the competitiveness of industries and services.

Production of high-tech products demanded both by the domestic and foreign markets will be organized within the context of the SEZ. As a result, there will appear new, financially rewarding jobs. The experience of the public-private partnership will get a further development. All this will have a positive impact on improving the business climate in the region and will significantly increase the inflow of foreign investment.

Currently, the regional Government has identified a list of companies – potential SEZ residents. A number of agreements have already been signed and today we have a portfolio of more than 1 billion euros. Other partners are being actively consulted.

The task for this year is to construct modern infrastructure for proper operation of the SEZ. These works are performed on schedule and under strict control.

– How developed is, in your opinion, the region's infrastructure created to support businesses and attract investment?

– We have opened all possible development institutions that provide assistance to businesses in the implementation of promising projects.

The Corporation for the Development of the Samara region, innovative, mortgage and entrepreneurship support funds are worth mentioning when speaking about financial support function institutions. I would like to single out the work of the corporation in particular, as it serves as a pilot site to work out new mechanisms of interaction of the major federal development institutions, regional Government and business. The corporation is engaged into various activities: from the direct financial participation in to the implementation of priority investment projects to foundation of joint structures with investors.

In the innovative infrastructure the Innovation and Investment Fund of the Samara region plays the main role. Over three years the fund reviewed more than 650 projects, 125 of which received financial and more than 70 – organizational support.

There was created a support infrastructure for small and medium-sized business in order to stimulate entrepreneurial development. The whole range of services is offered here: free consultations on company’s start-up, developing business plans and, certainly, the financial support.

– What, do you think, should do the authorities, business and society to maximize the regional economic development and ensure sustainable growth of the key financial and operational indicators today?

– To work. And to work honestly. I believe that responsibility and professionalism are the two main components of any successful project. Whether you're building a greenhouse at a summer cottage, creating a special economic zone on 660 hertares, or developing the entire regional economy.

If each of us performs the assigned tasks neatly and competently, works not only for himselve but also cultivates their abilities, sets new goals and strives for his achievement every day we will become a truly successful region.

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