Rostov region profile

Geographical location, population, administrative division

 

Rostov region is included in the Southern Federal District. It borders five Russian regions – Voronezh, Volgograd regions, Stavropol, Krasnodar territories and Kalmykia. In the South-West it is washed by the Taganrog Bay of the Azov Sea. Rostov region has long land and sea border with the Ukraine.

Rostov region is located in the southern part of the Eastern European plain and partly in the Northern Caucasus, occupying a vast area (101 thousand square kilometers) in the basin of the Lower Don river.

The Don is one of the largest rivers in Europe (1870 kilometers). It is navigable like its main tributaries Seversky Donets and Manych.

The Don region is predominantly located in the Steppe Zone and enjoys fertile soils. The most south-eastern area is a transitional area between the steppes and the semi-deserts. The maximum elevation above sea level is 253 meters. The picturesque reserve «Rostovsky» is listed in the UNESCO World Network of Biosphere Reserves.

Rostov region has an ethnically diverse population of more than 4 mln. people. The majority of residents are the Russians. According to the National Population Census of 2010, the number of the Armenians, the Ukrainians, the Turks, the Azerbaijanis, the Romanians, the Belarusians, the Tatars, the Chechens and the Koreans in the region is also high.

The Governor of the Region is Vasilii Yurievich Golubev.

The administrative center of the region is Rostov-on-Don, with the population over
1.1 mln people. It is the 10th most populated city in Russia and the 1st one in Southern Federal District. The distance to Moscow in a straight line is 1,076 kilometers.
Rostov-on-Don was one of the eleven Russian cities that hosted XXI FIFA World Cup games in 2018. 5 matches took place in Rostov-on-Don during FIFA World Cup with total attendance of Rostov Arena by 214,198 spectators.

Rostov-on-Don was founded in 1749 as a customs-house. Shortly after
St. Demetrius of Rostov’s fortress was built around the customs and the city grew quickly near it.

Other large cities of the region are Taganrog, Azov, Shakhty, Novocherkassk, Volgodonsk, Novoshahtinsk and Bataysk.

 

Economic potential and logistics infrastructure

 

Rostov region enjoys favorable geographic location. The abundance of natural resources, well-developed transportation infrastructure and high availability of human resources contribute to the development of the region as one of the largest centers of diversified industry, progressive agriculture, science and culture.

Since 2019 the region has been implementing Strategy of Rostov region social-economic development up to 2030 (ratified by resolution of the Government of the Rostov region 26.12.2018 № 864).

The conceptual framework of the Strategy is the idea of sustainable development – consistent and well-balanced economic, social and spatial development, respecting the interests of the present and future generations of Rostov region citizens.

Priorities of the Strategy in social sphere are: accumulation and development of human capital, in economics – increasing region competitiveness on the Russian and world markets, in space – development of effective territorial frame while keeping the ecosystem and providing comfortable living environment for people (development of 7 «growth poles»).

 Rostov region holds leading positions in both the Southern Federal District and Russia in regard to economic achievements and output of goods and services.

The range of economic activity puts Rostov Region within top 12 territorial entities of the Russian Federation.

The largest share in the region’s economy is taken by industrial production. The Industrial Production Index in January – November 2021 was 110.5 %. Industrial index in manufacturing industries amounts to 110.2%.

Rostov Region is on top in production of grain harvesters; machines designed to harvest grain, oil, leguminous and cereal crops; equipment for nuclear facilities. Another important sector of economy is production of heavy main-line locomotives, steam boilers, heavy-duty helicopter and steel pipe manufacturing industries.

The power-transmission system of the region has a total capacity of 7.5 thousand megawatts and is the largest in the Southern Federal District. There are main types of power generation: nuclear, thermal, gas, water, alternative power (wind power).

Significant contribution to the development of the production sector has been made by Taganrog Metallurgical Plant, Combine Plant «Rostselmash», Novocherkassk Electric Locomotive Plant, «Rostvertol», Taganrog boiler-making plant «Krasny Kotelshchik», «AEM-Technologies», «Atommash» in Volgodonsk, JSC «Novoshakhtinsk oil plant».

Rostov region is located on the territory of East Donets Basin which disposes of considerable reserves of solid mineral resources; thus, it is considered to be main coal-mining region of European part of Russia.

Rostov region houses about 24.3 bln tons of coal resources, explored reserves amounting to 6,5 bln tons. About 80% of the deposits are high-quality anthracites, other mineral resources are represented by hard coal, coke-coal and brown coal.

The Regional Law «On industrial policy in the Rostov region» (of 20.10.2015
№ 418-ZS) outlines measures for stimulation of industrial activity.

Rostov region is one of the largest agricultural regions in Russia. It takes 4% in the total area of the country’s farmland. Grain industry in crop farming is most prominent.

The main grain crops produced in the region are: spring barley, corn, millet, rice, buckwheat, peas, and soybeans. The leading industrial crop is sunflower. The region harvests at average 12.8 mln tons of grain crops per year, of which sunflower harvests – up to 1.7 mln tons, and vegetables – more than 550 thousand tons. Fruit growing and vinery are also developed. Annual production of grapes exceeds 28 thousand tons.

Livestock farms specialize in dairy, cattle, sheep, horse and poultry breeding. Fishing industry is another well-developed agricultural sector. Meat production comprises on average 300 thousand tons of meat (live weight), over 1 mln tons of milk and
1.6 bln eggs.

Food and processing industries take a leading role in manufacturing activities (in volume of shipped goods). Over 150 large and medium-sized enterprises, and more than 500 small businesses operate in this economic sector, giving jobs to 46 thousand employees. Their overall contribution to industrial output is 21%.

The brands «Zolotaya semechka», «Zateya», «Pudov», «Beliy medved», «Donskoy molochnik», «Tavr», «Azov confectionery factory», «Molodets», «Radost Vkusa», «Matushkin gostinets», «Ayutinsky khleb», «Donskie traditsii», «Vepoz», «Pechenie Morozova» and others are widely known not only in the Rostov region, but also abroad.

In 2020 the region was among top 10 Russian regions in production of main agricultural products. The Rostov region ranks:

1st for production of sunflower (for 10 months);

2nd for cereal and leguminous crops production (for 10 months);

4th for vegetables production (for 10 months);

5th for milk production (for 9 months);

11th for eggs production (for 9 months);

18th for meat production (for 9 months).

Rostov region is the leader in export of food commodities (regional share in the Russian export is 19%) in Russia:

in 2021 export volume of agricultural commodities amounted to 6.8 bln US dollars;

in 2020 export volume of agricultural commodities amounted to 5.9 bln US dollars (67% of the regional export);

in 2019 export volume of agricultural commodities amounted to 4.5 bln
(55% of the regional export).

Most part of the export good structure (in monetary terms) is taken by grain, fats and oils of animal or vegetable origin.

Rostov region has advanced facilities for grain storage. There are 64 functioning grain elevators, grain (port) terminals and cereal receiving stations with a maximum storage capacity 4 mln tons of grain, 2.9 mln tons of which are elevator tanks and 1.1 mln tons are storage facilities. Export shipment is carried out from
32 port terminals.

Development of export of agricultural production of the Rostov region looks attractive for investment in Azov-Don basin and related infrastructure projects. Currently 5 investment projects on construction of terminal complexes for grain and general cargo transshipment in ports of Rostov, Azov and Taganrog are being implemented.

Consumer’s market of the Rostov region is one of the biggest in the South of Russia. Rostov region takes consistent 2nd place in consumer’s market turnover among the regions of the Southern Federal District ranking below only Krasnodar territory. Among territorial entities of the Russian Federation Don region is on the 6th place.

Wholesale and retail trade are making 16% of the GRP providing jobs for around 440 thousand people.

Trade industry provides occupation for more than 68 thousand small and medium enterprises (SME) which makes 40% from all the SMEs of the region.

Small and medium-sized business makes around 44% of retail turnover in the Don region.

Transportation infrastructure of the Rostov Region is represented by railway system local and federal highways, sea and river ports (5 ports), international airport in Rostov on Don «Platov» and forms part of the «North-South» transcontinental transport corridor. Federal highway «Don», the railway line Moscow-Rostov-Caucasus, the shipping route by the Don river from the centre of Russia to the Black and the Mediterranean seas, and the air corridor St. Petersburg-Moscow-Caucasus region.

 

Foreign trade, international cooperation

 

According to JSC Russian Export Center, Rostov Region was number 7 in the top 10 regions in terms of volume of exports (on the basis of 9 months of 2021). The Rostov region ranks the 8th (1.45 bln US dollars) in Russia in the category «non-resource energy export» and the 5th (6.26 bln US dollars) in Russia in the category «non-resource non-energy export».

Rostov region leads trade relations with more than 146 countries.

Following the results of 9 months of 2021 external turnover reached almost 10 bln 289 mln US dollars (export – 8 bln 38 mln US dollars, import – 2 bln 251 mln US dollars).

External trade turnover increased by 31.5% or by 2.466 bln US dollars compared to the same period of the previous year. The physical volume of foreign trade turnover over the same period increased by almost 13%.

In January–September of 2021 export from the Rostov region amounted to 8 bln 38 mln US dollars, which is 34.5% more than in the same period of 2020, including exports to non-CIS countries – 6 bln 4 mln US dollars (9 months of 2020 – 4.7 bln US dollars), to the CIS countries – 1.6 bln US dollars (9 months of 2020 – 1.2 bln US dollars).

Export volume of the Rostov region within 9 months of 2021 increased by 12%
compared to the same period in 2020.

The total Rostov Region export share of the Southern Federal District accounted by 48.9% of the cost in 2021 (9 months) (in 2020 – 50.3%), the region ranks first among the entities of the Southern Federal District.

According to the results of January – September in 2021, the largest trading partners in the export of the Rostov Region are (in decreasing value): Turkey (22.1%), Ukraine (13%), United Arab Emirates (12.9%), Egypt (8.4%), Iran (5.2%), Syria (3.9%), Kazakhstan (2.8%), Switzerland (2.7%), China (2%), Italy (1.9%), Saudi Arabia (1.9%), Libya (1.5%), Belorussia (1.4%), Bangladesh (1.2%), Pakistan (1%).

The main export commodity groups are represented by:

–food commodities and agricultural raw materials – 59.9%;

– mineral products – 21.5%;

– machinery, equipment and vehicles – 5.9%;

– ferrous and non-ferrous metals – 5.6%;

– chemical produce – 4.1%.

61 international events were organized in 2021.

Among them there were 6 delegations from foreign countries led by ambassadors extraordinary and plenipotentiary to the Russian Federation (Greece, Zambia, Italy, Uganda, Romania, Syria). 14 business-missions were organized – 9 of them with participation of Rostov exporters (to Serbia, Bulgaria, Japan, Hungary, Belarus, Uzbekistan (twice), Uganda, Azerbaijan); 3 business-missions from foreign countries visited Rostov region (from Zambia, Great Britain, European companies within the frames of Verona forum (twice), France (twice)). More than 20 tons of humanitarian supplies were delivered to Syrian Arab Republic including New Year presents and sweets for Syrian children.

On the 3d of June, 2021, on the sidelines of St. Petersburg International Economic Forum Ministry of Foreign Affairs and Trade of Hungary and Government of the Rostov region (Russian Federation) signed the Agreement on establishing international and external economic communication in trade, economic, scientific, technical, humanitarian, cultural and other spheres.

In November Governor of the Rostov region and Hokim (Mayor) of Dzhizak region (Uzbekistan) signed the Agreement on cooperation in trade, economic, scientific, technical, cultural and humanitarian spheres.

11th meeting of the working group for cooperation between Rostov region and the Republic of Belarus was organized followed by signing the Protocol on fostering cooperation between the Rostov region (Russian Federation) and the Republic of Belarus for the period of 2021 – 2023.

Rostov region took part in a number of intergovernmental commissions: with China, Uzbekistan, Greece; participated in Russian Federation committee on Black Sea Economic Cooperation, met with Association of Economic Cooperation with African States; the region presented its tourist and scientific-educational potential to Japan students and lecturers in online-mode.

The following diplomatic missions operate in Rostov-on-Don: Consulates General of Armenia, Uzbekistan, the Ukraine, Romania, Honorary Consulates of Abkhazia, Spain, North Macedonia and Seychelles. Since March, 2011, Representation Office of the Embassy of Belarus in the Russian Federation has been functioning in Rostov-on-Don.

Rostov region has signed 21 international cooperation agreements (agreements, protocols, memorandums, declarations of cooperation) with the following countries: Abkhazia, Armenia, Belarus, Hungary, Vietnam, Germany, Italy, Kazakhstan, the Ukraine, Finland, and France.

Tourism

 

Rostov region has a number of competitive advantages for development of tourism industry: favorable geographic location – the north and the south of the country are linked with a transportation corridor; rich cultural and historical traditions, natural and climatic peculiarities, vast water resources of the Don and Taganrog Bay of the Azov Sea.

The tourist market of the Rostov region is represented by 59 tour operators, 46 of them offering regional touristic products, and 671 accommodation facilities with the total room capacity for 35 thousand people. The latest hotel facility is a 4-star Radisson Gorizont, accommodating 169 rooms. Investment volume into this project amounted to more than 1 bln rubles.

2021 brought more than 1.5 mln tourists to the region. According to mobile operator big data analytics number of tourists reached 3 mln people.

The sights of the South of Russia – the city of Rostov-on-Don, the cities of Azov (one of the oldest in South of Russia) and Taganrog, Novocherkassk, the Cossack villages and recreational facilities of the Lower Don and Taganrog Bay of the Azov Sea – make the region very attractive for tourists.

Each year large-scale events dedicated to the Don traditions and historical events are organized at their territory. The focal points of the region are the festivals «Defense of Taganrog 1855», «The Siege of Azov» (national festival of military historical clubs devoted to the Azov siege of Don Cossacks in 1641), «The Great Silk Way on the Don», the gastronomic festival «Don fish soup», the ethnographic festival «Don Vine», regional enogastronomic festival «Don Valley», eco-tourism festival «Glorified Steppe» which is held during wholesale blooming of steppe flora in Manych Valley.

Railway package tours are actively being developed. In 2021 North-Caucasian suburban passenger company together with tour operators organized 14 guided tours around Rostov region, including Taganrog.

2021 highlighted the region with remarkable accomplishments on the federal level. Rostov region made the top-10 RF entities with biggest tourist flow growth (based on the analytics of the first 6 months) and the top-5 best entities of the country in development of industrial tourism. The region also kept its sustainable position in «Golden League» of National tourist rating (18th place).

For the first time Don region hit the leading position in tourism promotion rating after getting a special certificate issued by Eurasian commonwealth of specialists in travel industry. The region won the certificate within the frames of III International marketing competition in tourism business «PRObrand» and also took several first places in Nation-wide tourist video competition «Divo Rossii-2021» («Wonder of Russia-2021»).

 

Culture

 

Rostov region – is the largest center of culture and art in the South of Russia and it is rich in deeply rooted cultural traditions.

Don region is proud of its numerous historical-cultural sights and memorable sites including reserve museums, local and lore museums, historical, architectural monuments, memorial and ethnographic complexes and works of art. There are 44 museums functioning in the region – 1 of them is of federal level, 15 regional and 28 municipal. The biggest number of exhibits is displayed in Rostov regional museum, Azov historical-archaeological and paleontological museum-reserve, Novocherkassk museum of the Don Cossacks’ history, Taganrog literary and historical-architectural museum-reserve, Starocherkassk historical and architectural museum-reserve. All these museums are popular among local citizens and visitors to the Don.

 The following museums are also very popular as the tourist visiting centers: National military history museum complex «Sambek Heights», State museum-reserve of M.A. Sholokhov (Sholokhov and Bokovsky areas); Azov historical and archaeological and paleontological museum-reserve (Azov); Archaeological museum «Tanais» (Myasnikovsky area); Razdorskiy Ethnographic museum (Ust-Donetsk area); Starocherkassk historical and architectural museum-reserve (Aksai area); Taganrog state literary and historical-architectural museum-reserve (Taganrog).  Each year large-scale events dedicated to the Don traditions and historical events are organized at their territory.

Azov historical and archaeological and paleontological museum-reserve is actively working at establishing and development international relations. The museum has already signed Cooperation agreements with the Arab Republic of Egypt, the Islamic Republic of Iran, the Republic of Italy. Besides, the institution is taking active part in development of twin- and partner relations of Azov city with other municipalities: Aglandjia (the Republic of Cyprus), Amalfi (the Republic of Italy), Bijeljina (Bosnia and Herzegovina), Courbevoie (the French Republic), Pylos-Nestoras (the Hellenic Republic), Sečanj (the Republic of Serbia).

Rostov region takes the 2nd place in the Southern federal district in terms of number of professional theatres. 3 regional and 6 municipal theatres are successfully performing on Don. Several touring projects have been realized with Rostov artists participating in all-Russian and international theatre festivals and competitions.

Rostov state musical theatre is one of the largest Russian theatres and it enters the top-ten of the country. By many features it is as good as capital ones and it can offer a widest variety of genres – operas, ballets, operettas, musicals, plays for children and also festivals and symphony concerts. The theatre guide includes world-known and exclusive plays’ titles.

Touring map of the theatre is very extensive. The theatre staff has travelled abroad more than 30 times staging operas, ballet performances and concerts in counties of Europe, Asia, Latin America. Several times the Rostov artists performed in capital Russian theatres.

Rostov state philharmonic hall doesn’t only present professional philharmonic art to the residents and visitors of the region but keeps its international relations with foreign partners within the frames of its festival projects and concert activity. The philharmonic hall has strong longstanding ties with the People’s Republic of China.

In 2021 notwithstanding the restrictions the philharmonic hall successfully hosted 2 large-scale festivals – «MOST» and Yuri Bashmet international musical festival with participation of musicians from CIS and non-CIS countries: Korea, Greece, Bulgaria, China.

Don Cossacks’ ensemble of folk songs and dances named after Anatolii Kvasov oriented at preserving and promoting truly folk Cossack art was met with enthusiasm by many countries of Europe, Asia, America. The ensemble has also had tours around Japan, South Korea, Republic of South Africa, China, Bulgaria, Poland, Czechoslovakia, France, Germany, Denmark, Sweden, Austria, Belgium, Switzerland, Turkey, Scotland, Hungary, Spain, Portugal and others.

Don Cossacks’ ensemble is represented by professional national artists who are constantly participating in international folk festivals (in Spain, France, Slovenia, Japan, Turkey). The rich cultural legacy of the ensemble, their active cultural activity in different spheres, professional skills, authentic character of the Cossacks’ folklore and national art of Don citizens represent the cultural asset of the Rostov region.

 

Sport

 

Rostov region is one of the ten most sports-oriented regions of Russia.

From 1952 to 2021, 257 athletes from Rostov region took part in the Summer Olympic Games. In total, they won 140 medals (51 gold, 44 silver, 45 bronze).

In 2021 about 532 Don sportsmen joined national teams of Russia. At international competitions they won 106 medals, including:

18 medals (4 gold, 10 silver, 4 bronze) in the XXXII Summer Olympic Games in Tokyo (Japan);

9 medals (3 gold, 3 silver, 3 bronze) in the XVI Summer Paralympic Games in Tokyo (Japan).

The achievements made by Don athletes in Tokyo were the best result throughout the whole history of Rostov region sportsmen performance in the Olympics since 1952 and Paralympics since 1988.

According to 2021 statistics 1.9 mln people or 50.3% of the total population of the region do sports and are engaged in athletics.  

Rostov region created the system of mass sports competitions allowing to engage people of all ages and social groups, starting from school-goers to pensioners, into physical training exercises. In 2021 more than 10 thousand physical and sports events with participation of 500 thousand people were organized.

There are 130 sports-training organizations in the Rostov region. The total number of athletes in the sports-training system is more than 109.5 thousand people.

Rostov region is represented by 19 professional teams on the all-Russian and international competitions. These are the best of them:

handball team «Rostov-Don» is the most titled club in Russia (multiple champions of Russia, winners of the Cup and Super Cup of Russia), in 2016, as part of the Russian national team, 6 female athletes of the club won gold medals in the XXXI Summer Olympics in Rio de Janeiro; in 2019, as part of the Russian national team, 9 athletes won bronze medals in the World Handball Championship in Japan; in 2021 7 athletes from the national Russian team won silver medals in the XXXII Summer Olympics in Tokyo;

in 2014 the «Rostov» football club won the Russian Cup, in 2016 won silver medals of the Russian Football Championship among the Premier League teams, and in the 2016-2017 season took part in the Champions League and the UEFA Europa League.

More than 10.8 thousand sports facilities function on the territory of the region, which is 110 more compared to 2020. The level of throughput capability of sports facilities in 2021 reached 58,1%.

Specialized trails for BMX cycling and mountain bike have been completed in Rostov-on-Don. On the territory of rowing canal Don a health and fitness outdoor complex was created. It includes football field, track and field lanes, sectors, devices for physical exercises and hockey rink boards.

Three RLD sports grounds (Ready for Labour and Defence) were prepared.

Several capital repairs were completed in 2021: track and field sectors of «Torpedo» stadium in Taganrog, western grandstand of «Olymp-2» stadium. In Aksay region horse-riding ring was erected, boathouse in Taganrog, 3 prefabricated sports halls in Rostov-on-Don, 1 hall in Shakhty.

Under the Rostov region Governor project 10 multifunctional sports grounds were built in the region.

After implementing 23 participatory budgets projects 16 sports grounds were constructed, 4 football fields and 1 stadium improved, 1 sprinkler system installed, 2 sports halls repaired. At the expense of extra-budgetary sources 25 sports facilities were built or reconstructed in 2021, around 644.1 mln rubles have been raised for the above-mentioned aims.

Investment Climate

 

Favorable investment climate is created in the Rostov region. The investment policy of the Rostov region is developed in accordance with the investment Strategy of the Rostov region until 2030 and the State program of the Rostov region «Economic development and innovative economy» (sub-program «Creating a favorable environment for attraction of investments to the Rostov region»).

Investment Board under the supervision of the Governor of the Rostov region operates in order to implement the policy of the Regional Government for attraction of investments, its main objective is to assist investors in execution of their projects. Similar Boards have been established in each municipality of the region.

The most significant investment projects in social sphere are included in the list of «100 investment projects of the Governor of the Rostov region», which as of 10.01.2022 includes 46 large scale investment projects with a total volume of investments over 316 bln rubles. These projects will create more than 37 thousand extra jobs in the region. The vast majority of projects are carried out in traditional for the Rostov region sectors: industrial production, including fuel and energy industry, agriculture.

The wind power sector is quickly developing in the Rostov region. The region has already become the center of Russian «green» energy. Over 25% of all wind power generating projects are located on Don.

6 wind power stations (WPS) with total cost of more than 60 bln rubles and total power over 610 MW have been put into operation: (Sulinskaia WPS, Kamenskaia WPS, Gukovskaia WPS, Cossack WPS 1 stage, Azov WPS, Marchenkovskaia WPS). Wind parks’ power generation is planned to be increased up to 700 MW. Three special investment contracts are being executed in the region and three plants manufacture modular towers for wind power units: LLC «Bashni VRS» in Taganrog, LLC «VetroStroyDetal» and «NovaVind» in Volgodonsk. Joint investments in the wind sector exceeded 74 bln rubles. Due to elaborated investment plans it will become possible to reach the value 120 bln rubles in the nearest future. It should be noted mostly Russian-made equipment and components are used in the industry: local content of products exceeds 65%. New solar investment projects are also being implemented.

The first competitive selection of construction projects based on renewable energy sources was held in 2021 in Rostov region. The power generated by the contestants is planned to be sold at retail markets. The construction project «Gukovskaia Solar Power Plant (SPP)» with total capacity 24.9 MW which was developed by LLC «Unigreen Region» was announced the winner of the competition. Putting the project into operation is planned for December, 2023. Based on preliminary estimate investment into the project at expense of the company would make 2 bln rubles.

For the whole period of maintaining the list of «100 investment projects of the Governor of the Rostov region» 82 investment projects have been realized since 2011.

In September 2021 the Governor launched the investment project of LLC Combine Plant «Rostselmash». The project is named «Construction of tractor plant «Rostselmash» and aimed at building the first tractor assembly on the post-Soviet territory.

Since 2004 non-commercial partnership «Investment Promotion Agency of the Rostov region» has been functioning in the Rostov region (hereafter IPA).

The main aim of the NP IPA is to attract investors to the Rostov region and support the projects on all stages. NP IPA is engaged in the selection, supervision and support of projects, participation in business visits and negotiations, assisting in the selection of land sites and obtaining information about investment activity in the Rostov region.

Experience of the Agency in attracting investments is considered to be the most successful in Russia and the model of work – one of the most effective. According to National investment climate index among the territorial entities of Russian Federation-2021 IPA was recognized as one of the best organizations in the country in attracting investments and in relations with investors. Investment Promotion Agency of the Rostov region was recognized 100% corresponding to the ideal (targeted) model «Work efficiency of a specialized organization in attracting investments and in relations with investors» (worked out in accordance to the instruction of the President of Russia announced at the Government Council Session). Contribution of the Agency to attracting foreign funds and to development of Russian Economics was acknowledged by the letter of gratitude from Ministry of Economic Development of the Russian Federation (2019).

Services of IPA are free of charge for potential investors. For 17 years of its work the Agency implemented projects with joint investments over 7 bln US dollars, including projects of international and domestic companies such as: MARS, Louis Dreyfus, Guardian, Coca-Cola, PepsiCo, Air Products, Praxair, «Segezhskaia Package», Enel, Fortum, SoWiTeс, FM Logistic, Cargill, PNK Group, Fresenius Medical Care, «I-Plast», «TECHNONICOL», «Inteko», «Yandex.Market», Auchan, Castorama, Leroy Merlin, Decathlon, «Lenta», «O’KEI», METRO Cash & Carry and many others.

As of the end of 2021 Investment Promotion Agency of the Rostov region is actively working with 88 projects with joint volume of claimed private investments over 266 bln rubles. The share of industrial projects in the project portfolio exceeds 65%.

Since 2014 JSC «Regional Development Corporation» has been functioning in the Rostov region (hereinafter RDC). The company got the status of development institution of the Rostov region and is aimed at attracting investors to realization of resource- and capital-intensive infrastructure projects and also at providing development of regional economics industries. The Corporation provides investors with information and consultations services, participates in improving mechanisms of investment projects realization.

JSC RDC is a specialized organization of regional innovative cluster for production and processing of milk produce «Don dairy products» and innovative and technological cluster «Yuzhnoe sozvezdie». As of 31.12.2021 «Don dairy products» cluster integrates 54 enterprisers and «Yuzhnoe sozvezdie» cluster – 75 enterprisers with total turnover above 20 bln rubles and manpower over 1.8 ths. In the future «Yuzhnoe sozvezdie» is planning to actively participate in the National Technological Initiative.

In the task-list of JSC RDC there are several actions which are aimed at organization of information and technological community on the platform of IT-park «Yuzhnyi». IT-park «Yuzhnyi» is in the top-10 accelerators of Russia and it is included in the short-list of best social and economic practices competition of Agency for Strategic Initiatives.

 The team of IT-park «Yuzhnyi» participates in organization of all-Russian competition «Digital Breakthrough» of the presidential platform «Russia – is the country of opportunities». The methodology of the competition became determinative within the framework of cooperation of «School of Trackers».

IT-park «Yuzhnyi» signed the Cooperation Agreement with Russian Association of Electronic Communications. In 2021 on the basis of IT-park 2 acceleration programs for all-Russian competition «Digital breakthrough» were realized.

In its expert-methodical and analytical development JSC RDC have created 2 competence centers.

• Competence Center for development of urban environment, supporting designing projects of public spaces of the Rostov region, in elaborating of methodological guidelines and holding educational workshops.
• Competence center specializing in agricultural cooperation sphere and support of the Rostov region farmers. The main goal of Center’s activity is to implement supporting measures for agricultural cooperation development.

JSC RDC manages diversified asset portfolio, including 13 enterprises engaged in aviation, electrical power, consumers’ gas provision, agriculture, ecology and IT-technologies.

Regional Development Corporation is empowered by the Rostov region Government and given the rights and obligations of a public partner for realization of private-public partnership projects.

According to the Rostov statistics agency, the volume of attracted investments in 9 months of 2021 was 240.4 bln rubles, volume index is 118.9%. Private investments amount to 198.2 bln rubles, volume index – 116.3%.

Large foreign investors have already implemented their projects in the Rostov region: Praxair (USA) built a gas-filling station for the production of industrial gases; Air Products (USA) built a plant for the production of industrial gases; float-glass factory Guardian (USA), emulsifiers production plant Lasenor (Spain), producer of raw material for ceramic tiles Esmalglass-Itaca (Spain), Company Mars Inc. (USA) built a plant for the production of pet food in Aksai district; Louis Dreyfus Company (France, Netherlands) implemented a project for the construction of the terminal for transshipment of agricultural products in the Azov district; Grain terminals: Olam International Limited (Singapore) implemented the construction project and reconstruction of Azov grain terminal of «Outspan International» ltd in Azov district; Cargill (the USA) – grain port terminal in Rostov-on-Don; Bunge (the USA) - grain port terminal in Rostov-on-Don; dialysis centers network Fresenius (Germany), IKEA (Sweden, the Netherlands), hypermarket Castorama (Great Britain); hypermarkets Auchan, Leroy Merlin, Decathlon (France), Metro Cash & Carry, Selgros Cash & Carry (Germany);  logistic centers: Raven Russia (Great Britain), FM Logistic (France), Itella (Finland); windparks: Enel (Italy) and Fortum (Finland). Manufacturing of modular towers for wind power generating units (WPU) with participation of WINDAR (Spain) and Vestas (Denmark), manufacturing of components for WPUs with participation of Lagerwey (the Netherlands), manufacturing of electric locomotives equipment for machinery rooms with participation of Alstom (France), beer brewing at the branch company of Carlsberg Group «Baltika» (Denmark), production of tobacco products at Japan Tobacco (Japan). In addition, facilities of HoReCa industry are operating in the region under brand names: Courtyard by Marriott (USA), Mercure by Accor (France), Radisson (USA), Starbucks, McDonald's, KFC and Burger King (USA); banks: UniCredit, Raiffeisen (Austria), Citibank (the Netherlands) and «Rosbank», within the group Societe Generale (France). The region also houses offices of international engineering company Bilfinger Tebodin (Germany), audit and consulting companies KPMG (the Netherlands), Ernst & Young (Great Britain) and PricewaterhouseCoopers (Great Britain). The reliable partners of the Rostov region are Coca-Cola, PepsiCo and the Guardian (USA).

A set of state support measures for investors have been developed on the territory of the Rostov region:

• income and property tax relief;
• subsidies to compensate expenses for engineering infrastructure objects;
• subsidies to compensate part of loan interest charges which was raised for implementation of investment projects in industrial sphere;
• granting soft loans by non-commerce organization «Regional fund for development of Rostov region industry»;
• investment tax deductions;
• regional investment project;
• supporting measures for residents of territories of priority social and economic development («Gukovo», «Zverevo» and «Donetsk»);
• targeted support of investment projects by the Government of the Rostov region and non-profit organization «Agency of investment development». Full support of investment projects is based on «one window» principle;
• land lease without bidding for large-scale investment projects and objects of social, cultural and communal purposes;
• the list of «100 Governor's investment projects», includes the largest and most socially important for the economy investment projects;
• government guarantees on investment projects on the basis of competitive bidding.
• and others.

The following foreign companies received support: «PepsiCo Holdings», «Coca-Cola HBS Eurasia», «The Guardian», «Auchan», «Ikea», «Merinos», «Mars».

 

Investment Legislation

 

Progressive investment legislation has been adopted in the Rostov region, suggesting a set of preferential advantages for potential investors. The bases of the ​​regional investment legislation are:

• Regional Law of 01.10.2004 № 151- ZS “On investments in the Rostov region”;
• Regional Law of 10.05.2012 № 843- ZS “On the regional taxes and certain tax matters in the Rostov region”;
• Regional Law of 02.07.2008 № 35- ZS “On the granting of state guarantees of the Rostov region”;
•  Regional Law of 20.10.2015 № 418-ZS “On industrial policy in the Rostov region'”;
• Regional Law of 25.02.2015 № 312-ZS “On the criteria, which are to be met by social, cultural and municipal organizations, large-scale investment projects, for the purpose of provision of land for rent without bidding”;
• Resolution of the Government of the Rostov region 15.10.2018 № 637 “On approval of the state program of the Rostov region'' Economic development and innovative economy”;
• Resolution of the Government of the Rostov region 22.03.2012 № 218 “On the order of state support of investment activity of organizations from the regional budget”;
• Resolution of the Government of the Rostov region 23.09.2015 № 603 “On the support of investment projects on the territory of the Rostov region”;
• Resolution of the Government of the Rostov region 14.11.2011 № 128 “On the Investment Board under the Governor of the Rostov region”;
• Resolution of the Government of the Rostov region 06.03.2014 №
  137 “On approval of the list of cases in which is not required to obtain a building permit in the territory of the Rostov region”;
• Resolution of the Government of the Rostov region of 18.02.2016 №
  95 “On the decision making procedure concerning concession agreements, where the Rostov region acts as the grantor, for a period exceeding the validity of the approved limits of budgetary obligation”;
• Resolution of the Government of the Rostov region of 30.03.2016 № 227 “On an authorized organization”;
• Resolution of the Government of the Rostov region of 13.10.2016 № 697 “On granting subsidies to organizations regardless of their organizational and legal status for reimbursement of expenses on creation of engineering infrastructure objects, which are an integral part of the investment project, and (or) their connection (grid connection) to electric power, gas and water supply and sanitation systems”.
• Resolution of the Government of the Rostov region of 01.04.2017 № 246 “On commission on evaluation of public-private partnership projects, concession agreements, in which the Rostov region is a public partner (concedent)”.
• Resolution of the Government of the Rostov region of 05.04.2017 № 249 “On interdepartmental interaction of executive bodies of the Rostov region during preparation and implementation of public-private partnership projects, concession agreements, in which the Rostov region is a public partner (concedent)”.
• Resolution of the Government of the Rostov region of 15.03.2017 № 187 “On some issues of guarantees provision on behalf of Government of the Rostov region”;
•  Resolution of the Government of the Rostov region of 13.08.2020 № 722 “On the authorized body”.

 

Regional innovative system,
development of the National Technological Initiative (NTI) markets

 

The Rostov region is a territory with great scientific, educational and innovative potential.

By the end of 2020 large and medium-sized enterprises had shipped innovative products amounting to 106.7 bln rubles. The share of innovative goods, works, services in the total volume of works and services provided by Rostov region enterprises makes up 8.4%. The volume of shipped innovative goods in 2020 puts the Rostov region to the 18th place among Russian Federation constituent entities and to the 1st place among Southern Federal District entities.

Capital and operating expenses of large and medium enterprises of the Rostov region in innovative activity in 2020 amounted to 52.7 bln rubles.

The Rostov region is in the top-10 in patent statistics among Sothern Federal District entities. In 2020, 654 patent applications were submitted which included patents for inventions, utility models and industrial designs. The inventive activity index amounting to 0.98 puts the Rostov region at the 2nd place in SFD and 27th in Russia.

Analysis of innovative processes development on the Rostov region territory revealed increase of innovation activity among large and medium-sized enterprises.  At the end of 2020 the share of enterprises implementing technological innovations made up 33.7% and level of innovation activity of organizations in the region – 13.8%.

The Rostov region supports NTI projects and actively participates in their implementation. The process of NTI development involves design and creative teams; technology companies, willing to introduce new solutions; leading universities, research centers, business associations of the country; development institutes, expert and professional communities, ministries concerned.

At present the Rostov region possesses all the instruments for consistent development of federal initiatives. Main components of NTI infrastructure have been created: «Foresight-movement» has been organized, «Quantorium» and a network of teamwork spaces «Boiling points» have been functioning, six centers «My business» have been opened.

The key object of innovation infrastructure is Autonomous Non-Commercial Organization «Innovations Agency of the Rostov region» (the Agency). The Agency holds annual competitions, innovation and inventive projects; it also communicates information on all forms of support for innovative activity, operating results of innovative and high-tech enterprises in mass media and social networks.

The Agency-based Innovation Promotion Fund (grant schemes center) provides annual increase of grant support for Don innovators. The amount of raised funds within 2018 – 2020 years reached 932.9 mln rubles. In 2021 Innovation Promotion Fund received more than 416 applications. The Fund provided support to 80 innovative projects based on programs «Umnick» (Smarty), «Start-1», «Commercialization», «Development» with a total sum amounting more than 311.9 mln rubles.

The total innovative structure of Rostov region includes more than 60 objects.

In order to develop innovative imagination among children and young people a network of youth innovative and creative Centers (YICC) is being developed in the region. At the present moment 8 YIC Centers have been functioning which received subsidies from the regional budget. Starting from 2019 large and medium-sized enterprises have been receiving financial support as part of «Acceleration of small and medium-sized enterprises» project.

It is planned to start the Center for innovative creativity of youth (CICY) in 2022 on the basis of Regional Rostov Agency for entrepreneurship support.

At the initiative of the Governor of the Rostov region Golubev V.Y. the Southern world-class scientific-educational center was created in the region in 2019. The Center is named «Digital transformation of agricultural and industrial complex» (hereafter Southern SEC), and since 2021 the Center has acquired the status of interregional SEC of the South of Russia. It has combined the scientific potential of Rostov, Volgograd regions and Krasnodar territory (Interregional scientific-educational world-class center of the South of Russia).

SEC of the South of Russia is comprised by 7 educational institutions: Southern scientific center of Russian Academy of Sciences, Don State Technological University, Southern Federal University, Rostov State University of Economics, Novocherkassk Polytechnic Institute and others), 2 research institutions, 3 regional development institutions and 9 industrial partners (Agrocom, Rostselmash, ROSTVERTOL, Kamenskvolokno, ATLANTIS-PAK, etc.)

In 2021 advanced research laboratories were open on the basis of educational institutions comprising SEC, the laboratories will receive support in 2021 – 2023.

The main goal of the SEC of South of Russia is a consistent, well-balanced, social and special development with regards to interests of the present and future generations of the South of Russia. The SEC is oriented at the Decree of the President № 474 dated 21.07.2020 «On national goals of Russian Federation Development for the period up to 2030».

Internet resources

 

www.donland.ru	an official portal of the Government of the Rostov region
www.mineconomikiro.ru	an official portal of the ministry of economic development of the Rostov region
www.donexport.ru	an informational portal of export possibilities of the Rostov region
www.invest-don.com	-  an investment portal of the Rostov region
www.mbdon.ru	-  a portal for small and medium-sized enterprises of the Rostov region
www.novadon.ru	-   an innovative portal of the Rostov region
www.visitdon.ru	-   portal of Don tourism
www.ipa-don.ru	-    Investment Promotion Agency of the Rostov region
www.rkr61.ru	an informational portal of the «Regional Development Corporation»