29 July 202117:14

Profile: the Samara Region

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Profile: the Samara Region

 

Samara Region is one of the largest industrial centres of Russia located in the Southeast of the European part of the country.

Area: 53.6 thousand square km.

Population: 3179.5 thousand people (as of 01.01.2020)

Regional centre: city of Samara (1156,7 thousand people as of 01.01.2020)

Consulates of foreign countries in the region: Honorary Council of the Swiss Confederation in Samara, Consular Correspondent Office of Italy in Samara, General Consulate of the Republic of Cyprus in Samara.

Geographical Position

 

The Samara Region is located in the Southeast of the Eastern European Plain in the middle flows of the Volga, the largest river in Europe, which divides it into two parts of various sizes, Privolzhye and Zavolzhye.

The region occupies an area of 53.6 thousand square kilometres (0.31% of the territory of Russia) and is a part of the Volga Federal District lying in the South of it.

The Samara Region borders on the Saratov Region in the South-West, with the Ulyanovsk District in the South-East, with the Republic of Tatarstan in the North and has a state border with Kazakhstan in the South. The region stretches from the North to the South for 335 km and for 315 km from the West to the East.

 

Climate

The region has a continental climate with sharply contrasting temperatures, short mid-seasons, cold winters, hot summers, deficient humidity, rich insolation and high probability of frosts in springs and autumns.

The average annual temperature is +3.8°C, the average monthly temperature varying from +20.1°C in July to -13.9°C in January.

The average precipitation is 350-550 mm per year.

 

Aquatic Resources

The largest river of Europe, the Volga, flows across the Samara Region and provides the region with all the required resources of fresh water in the reserves of the Kuybyshev and the Saratov Reservoirs with a total surface area of 191 thousand hectares. The length of the Volga within the boundaries of the Samara Region is 364 km. Besides, there are over 220 rivers and streams with a total length over 6.5 thousand km, and over 1000 reservoirs, lakes and ponds.

 

Forest Resources

The Samara Region is one of the sparsely wooded regions, and the average share of wooded territories is 12.80%.

All the forests in the Samara Region are protective forests, 83% being in the forest-steppe zone of the European part of the Russian Federation and 17% in the steppe areas.

The forests of the Samara Region with the soil-stabilizing function account for 52% of the total forest, water conservation forests for 12%, sanitary forests around towns and settlements for 36%.

The prevailing species are oaks with 25% of the total wooded areas, pine with 14%, linden with 18%, aspen with 16%, birch with 10%, and other species (maple, ash, elm, poplar, and shrubs) cover the remaining 17%.

There are unique natural preserves among the especially valuable forests: “Samarskaya Luka” National Park, I.I. Sprygin Zhiguli State Natural Preserve, “Buzuluk Pinewood” National Park part of which is located on the territory of the Samara Region; besides, there are over 200 specially preserved regional value natural territories.

The Samara Region is also the home of the Middle Volga Complex Biosphere Reservation (total area ca. 400 thousand hectares), the heart of which is the I.I. Sprygin Zhiguli State Natural Preserve. It also includes the protective (“Samarskaya Luka” National Park) and the transition zones that incorporates the Racheisky and the Muransky Pinewoods, the Novodevichyi Hills and some other territories including the landscaped areas of the city of Togliatti.

 

Mineral Resources

The mineral resources of the Samara Region have a marked hydrocarbon character, and the region ranks third in the Volga Federal District in terms of produced oil including gas condensate. The relative share of the Samara Region in the gross national production of hydrocarbons including gas condensate is about 3.0%.

Aside from the hydrocarbons, there are deposits of the following materials in the Samara Region:

- Mineral construction materials (construction rock, brick and tile materials, construction sand, keramzite clays, high-melting clays, cement raw materials, gypsum, carbonate rock for the production of construction lime, gypsum and anhydrite, sand and gravel materials, glass-making sand);

- Mining materials (apart from deposits of foundry sand there are geological indications for the identification of bentonite and zeolite containing rock);

- Mining chemical materials (phosphate rock, native Sulphur, rock salt, asphaltite and bitumens, combustible shale, and native bitumens).

 

Industry

The Samara Region is one of the developed industrial centres of Russia. It ranks third in the Volga Federal District in the volume of shipped goods of processing industries, fourth in manufacturing, mining of mineral resources, providing electric energy, gas and steam, air conditioning, first in water supply and sewage, organization of waste collection and disposal, pollution elimination activities.

 There are above 600 large- and medium-sized industrial enterprises on the territory of the Samara Region. The industry comprises over 40,4%  in the structure of the gross regional product.

The industrial complex of the Samara Region comprises mining, processing and power industries. The basis of development of the regional economy lies in the highly technological processing industries with high added value: automobile construction, construction of aviation and space equipment the share of which takes over 26% of the total volume of the regional industrial production; industries with high degree of processing including chemical and metallurgical industries. Mining of mineral resources accounts for approx. 18,3% of industrial production, whereof about 91%  is the mining of fuel and energy minerals. Generation and distribution of energy resources has a share of about 8,1%.

The manufacturing of certain valuable nomenclature positions gives the Samara Region a considerable share in the Russian production. 26% of new passenger vehicles manufactured in Russia are made in the Samara Region, 23% of ammonia, about 13% synthetic rubbers, 11% of residual fuel oil, 4% of mineral fertilizers, 7-8% of gasoline, polymer film, 6-7% of diesel motor fuel, bearings and products of primary processing of oil, 6% of beer, 4% of primary plastics, 3% of produced oil.

The enterprises of the region are provided the Russian production of polyamide, technical and textile yarns, 80% of the Russian production of tire cord, 70% of floor coverings, 52% of caprolactam.

Historically the Samara Region has become the place where highly technological clusters have emerged and developed including the automotive, aerospace and petrochemical clusters which make an optimal combination of applied and fundamental science, research and development and serial production of highly technological products.

Automobile construction is one of core industries of the Samara Region.  The Samara region is characterized by the highest concentration of companies of the automotive industry and the highest share of the automotive industry in the structure of the gross regional product among all the administrative units of the Volga Federal District. The Samara region provides about 25% of the shipment of the entire Russian and 40% automotive industry Volga Federal District. In January-May 2021 the automotive industry of the Samara region produced about 149.9 thousand passenger vehicles (150.6% per 2020).

The automotive industry of the Samara Region includes assembly companies of PJSC “AVTOVAZ”, JSC “Lada Zapad Togliatti” and others, manufacturers of automotive components, as well as design, research, financial, trade, service, consulting and other companies operating in the Samara Region.

The “AVTOVAZ” Group is a part of the Avtovaz-Renault-Nissan-Mitsubishi Alliance and manufactures automobiles for the full production cycle and auto components for four brands: LADA, Renault, Nissan, Datsun. The development of the automotive complex of the Samara region and JSC “AVTOVAZ” is largely related to the continued development, modernization and launching of the production of new automobiles and power units in cooperation with the Alliance.

The LADA brand is represented in the B, B +, SUV and LCV segments, which make up 5 model ranges: Vesta, XRAY, Largus, Granta and Niva. The share of the LADA brand in the Russian car market amounted 20.6% (vs. -16.8% in 2015). In 2020, the company launched new models and modifications in all 5 ranges of automobiles. Niva was again produced under the LADA brand.

More than 41 thousand vehicles have been sold abroad. The brand is a leader in the CIS countries. LADA Granta in Kazakhstan and LADA Vesta in Belarus occupy the first places in the local car markets. New importers have appeared in Armenia, Tajikistan and Turkmenistan.

The automotive component industry is one of the highly developed sectors of the industrial complex of the Samara Region. It focuses on production of a wide range of components from cabin interior parts, stamped components, cable glands and automobile batteries to large assembly units of vehicles. There is a decrease in the dependence of industry enterprises on JSC “AVTOVAZ” thanks to new consumers of products, both through internal cooperation, mainly localized foreign companies, such as Faurecia, Valeo, Hi-Lex, etc., as well as with enterprises from other regions (UAZ, GAZ, Skoda, and others.).

With the cooperation from the Government of the Samara Region, the automotive cluster was founded to focus on generation of sustainable supply chains of products of automotive component manufacturers to large consumers, PJSC “AVTOVAZ” and JSC “Lada Zapad Togliatti”.

New companies producing automotive components keep opening in the region; the Czech BRISK Tábor has localized manufacture of sparking plugs in Togliatti with JSC “AVTOVAZ” as the expected major customer. On the territory of the Special Economic Zone “Togliatti”, “EDSCHA Togliatti” started manufacturing components for the Renault-Nissan-Mitsubishi Alliance.

The Samara Region is also the home of a strong innovative territorial aerospace cluster bringing together the leading enterprises in the spheres of rocket construction, engine construction, and manufacture of aviation equipment. The aerospace cluster is based on the enterprises of space rocket construction, aircraft construction, engine and component construction, and research and development institutions. The major special feature of the cluster is that the territory of one region concentrates the full cycle of production of the whole range of aviation and space equipment. Today, the companies of the cluster design and manufacture spacecraft, aircraft and rocket engines, assembly units and components for aviation equipment, and perform technical maintenance and repairs of aircraft and engines.

The core enterprises of the cluster are JSC “RKC Progress”, PJSC “ODK-Kuznetsov”, JSC “AVIAKOR Aviation Plant”, JSC “Aviaagregat”, JSC “Agregat”, PJSC “Gidroavtomatika”, JSC “Research Institution Ekran”.

Scientific activities of the cluster are the task of specialized design bureaus, research, development and implementation companies. A very special role among them belongs to the Federal State Autonomous Higher Education Institution “S.P. Korolev Samara National Research University”.

The university is the home of the supercomputer center “Sergey Korolev”, Russia’s only supercomputer specializing in the area of rocket, engine and space equipment construction, and the premises of the Volga Center for Space Geoinformatics and Center for Reception of Space Information.

The University implements projects in cooperation with JSC “RKC Progress” (design of small spacecraft), PJSC “ODK-Kuznetsov” (design of a range of gas turbine engines based on an all-purpose high-performance gas generator).

The space rocket segment of the cluster is the JSC “RKC Progress”, the country’s flagship design, manufacture and operation specialist for medium load launch vehicles and automatic spacecraft for the remote sensing of the Earth and other scientific purposes. JSC “RKC Progress” has designed and launched over 1860 carrier rockets and approx. 1000 spacecraft. Within the international space program, JSC “RKC Progress” is one of the major participants in the creation of the Guiana Space Center.

JSC "RKC" Progress "in January-June 2021 provided 8 launch campaigns: 4 - from the Baikonur cosmodrome, 3 - from the Vostochny cosmodrome, 1 - from the Plessetsk cosmodrome.

The core of the aviation sector of the cluster is the JSC “Aviakor Aviation Plant”, one of the largest national aircraft construction companies. It is one of the few enterprises of Russia experienced in serial manufacturing of civic and military aircraft from parts, components and assembly units made in-house (of own production). The main customer of the company's products is the Ministry of Defense of the Russian Federation. At present, the Samara Aviation Plant is in serial production of the 52-seat An-140-100 passenger airliner and Tu-154M aircraft, as well as after-sales service for TU-154, AN-140, AN-74 aircraft. JSC Aviakor-Service provides a full range of services for maintaining the airworthiness of aircraft.

In 2011, following the reorganization of the engine-construction segment of the aerospace cluster of the Samara Region, a unified company was founded on the basis of several regional enterprises: PJSC “KUZNETSOV”, a member of the United Engine Corporation. The company is the chief manufacturer of engines for manned space flights, for strategic aviation and gas pumping stations and heat and power plants. Today PJSC “KUZNETSOV” is an integrated enterprise with all the phases of the technological chain of product development: design – serial production – marketing and sales – logistic support at the stage of operation by customer. The prospective areas of development for PJSC “KUZNETSOV” are as follows: expansion of the range of rocket engines for light and medium launch vehicles; increase of volumes of supply of aircraft gas turbine engines for the Ministry of Defense of the Russian Federation; expansion of the product lineup of aircraft and ground-based gas turbine engines; reconstruction and revamping of production; improvement of production technologies and engineering, including that within the innovative aerospace cluster of the Samara Region.

Petrochemical Cluster accounts for over a third of the economic potential of the region. The cluster includes oil production, oil processing and chemical production.

The Samara Region is the place of large enterprises whose high production, scientific and technical potential allows manufacturing of highly technological products valued in the Russian and international markets. There are universities and industrial institutions that are the national centers of excellence in the area of chemical technology including the Samara State Technical University, a flagship university of the region.

For 11 months of 2020, compared to last year, the production of mineral fertilizers (102.9%), synthetic rubbers (103%), paints and varnishes (114.4%), petroleum lubricants (185.7%) increased. The primary oil refining (91.8%) decreased, the production of ammonia (98.6%), heating oil (89.9%), gasoline (88.7%), diesel fuel (89.3%), acyclic hydrocarbons decreased (94.3%), plastics in primary forms (99.2%). Oil production in the region amounted to 14.1 million tons (96.2% to the level of 2019).

Development of the petrochemical cluster of the Samara Region is based on the efficient implementation of large-scale projects aimed at expansion of existing capacities and construction of the new production facilities including those where large petrochemical holdings and foreign companies were involved. The largest enterprises are JSC “Samaraneftegaz”, ISC “RITEC”, JSC “Kuybyshevsky Refinery”, JSC “Novokuybyshevsky Refinery”, JSC “Syzran Refinery”, “Novokuybyshevsk Oil and Additive Plant” LLC, PJSC “Togliattiazot”, PJSC “Kuybyshevazot”, JSC “Novokuybyshevsk Petrochemical Company”, “Togliatticauchuk” LLC, and others.

The oil refining industry includes three large oil refineries: “Novokuybyshevsk Oil Refinery” JSC, “Kuibyshev Oil Refinery” JSC and “Syzran Oil Refinery” JSC, the largest producer of lubricants in Russia, “Novokuybyshevsk Oil and Additives Plant” LLC, and two gas refineries: JSC “Otradnensky Gas Processing Plant” and JSC “Neftegorsk Gas Processing Plant”, which are parts of PJSC Oil Company Rosneft.

The products made by the oil refineries are as follows: petrol of various grades, and diesel fuel; “Novokuybyshevsk Oil and Additive Plant” LLC produces technical oils and additives thereto. Two gas processing plants manufacture lean gas, natural gas liquids, ethane fractions and technical sulphur.

As January-May 2021, the total annual volume of oil refining by oil refineries in the Samara region amounted to 7.9 million tons (119.7% of 2019), increased

production of motor gasoline (130.3%), heating oil (126.6%), diesel fuel (124.3%), petroleum lubricating oils (121.1%).

The companies of the petrochemical cluster of the region are traditionally active in making investments. The investment programs of the cluster enterprises are aimed at deep modernization of production, implementation of new technologies in order to increase production, making new products, improvement of energy efficiency, environmental safety, making of products compliant with the high Euro-5 standards.

PJSC “KuybyshevAzot” is one of the country\s leading companies, a leader in manufacturing of caprolactam and products of its processing, and is among the largest producers of nitrogen-based fertilizers. Intensive investment policy of the company ensures its fast and efficient growth and sustainable development. Joint ventures with foreign partners (“Linde Azot Togliatti” LLC and “Praxair Azot Togliatti” LLC) facilitated construction of modern production facilities for ammonia and industrial gases.

The results of 2019 show investment of over 11 Billion Rubles in production development and revamping of equipment.

Despite the difficult economic situation, the implementation of the most important investment projects for the development of the enterprise continues, which will make it possible to count on improving production efficiency and reducing costs in an extremely short time.

In 2020, to meet the needs of the production of mineral fertilizers at the enterprise, the production of non-concentrated nitric acid with a capacity of 130 thousand tons per year was commissioned.

In order to ensure the safety of raw materials and stable operation of PJSC KuibyshevAzot and the entire technological chain for the production of import-substituting products, in December 2020, the production of sulfuric acid of the "K" brand and improved oleum were commissioned.

Today, construction works are underway to build a new urea plant in partnership with Maire Tecnimont, which provides for the use of advanced technologies that ensure environmentally friendly and safe production.

PJSC “Togliattiazot”, one of the largest companies in the country’s chemical industry, is implementing a strategical investment program aimed at modernization and development of production facilities. Modernization will amplify the company’s possibilities in producing its major products. The main project of the company in 2019 was launch of construction of the third carbamide production unit. In 2019, the company made a breakthrough in carbamide production and had a 38% share of the market for this mineral fertilizer in the Russian market. Ammonia supplies produced by “TOAZ” PJSC occupy up to 10% of the world ammonia sales market

The main project of PJSC Togliattiazot in 2019 was the launch of the construction of the third urea production unit with a capacity of 2,200 tons / day. In 2020, a reactor was installed at the unit, which is key for the stable and efficient operation of the new production.

The development program of Togliattiazot PJSC envisages the construction of one more urea unit, units for the production of ammonium nitrate and urea-ammonium mixture.

“Togliattikauchuk” LLC is one of the largest enterprises of the petrochemical complex in Russia. The company produces synthetic rubbers of various brands, which are raw materials for tires and rubber products, and are also used in the construction, medical, food industries. It is included in the top 10 largest exporters of the Samara region.

In 2019, the largest chemical enterprise “Togliattikauchuk”, member of the “Tatneft” Group, completed a large-scale equipment repair project in the butylene rubber production plant.

In 2014, the first private specialized industrial park was founded in the Samara Region, the “Togliattisintez”. Being a brownfield infrastructural solution enabling fast start-up of any production business, this production site opens additional possibilities for the development of the regional chemical production. Following the results of the third quarter of 2018, the “Togliattisintez” has 16 resident companies with projects of varying focus and scale. They include companies manufacturing polypropylene pipes for water supply, heating and firefighting systems, packaging based on composite materials, and companies making complex emulsifiers and drag-reducing additives. The anchor resident is “Togliattikauchuk”, one of Russia’s largest producers of synthetic rubbers.

In January-May 2021, the production of plastics in primary forms (117.8%), acyclic hydrocarbons (106.2%) and synthetic rubbers (101.5%) are increased. Compared to the level of the previous year, there is a decrease in the production of mineral fertilizers (99.7%), ammonia (97.3%), monohydric alcohols (49.4%).

The oil market currently has about 20 companies developing the subsurface including PJSC Oil Company “Rosneft”, PJSC “Lukoil” and PJSC “Tatneft”. For January-May of 2021, the region produced 6.5 million tons of oil, which is 99% in the same period in 2019. The greatest share in the oil production in the Samara Region is taken by JSC “Samaraneftegaz” (about 80%).

The investments in the oil production industry are focused on drilling of new production wells, on implementation on various technologies of artificial lift by using subsurface pumps that ensure increased efficiency and reliability of stimulated operation of wells in complex conditions and increased recovery of oil from formations.

The energy infrastructure of the Samara Region is one of the key factors in the development of the regional economy and in the securing of comfortable conditions of living. The region has a strong production, technological, scientific, technical, personnel and knowledge potential to develop the power sector.

Generation and distribution of energy resources makes approx. 5% of the regional industrial product. The relative share of the Samara Region in the national volume of production of electrical energy is 2%.

Generation of electrical energy is performed mainly by PJSC “T Plus” and the Branch of PJSC “RusHydro”, the “Zhigulevskaya Hydro Power Plant”.

Transfer of energy is performed by the Branch of PJSC “FGC UES” - the “Volga Bulk Electrical System” (“MES Volga”), Branch of PJSC “Volga IDGC” – “Samara RS” and more than 50 local grid companies.

In January – May  2021, the amount of consumed electrical energy was 9836,5 million kWh (84.7% vs. 2020), steam and hot water - 20.2 million Gcal (113.2%). Within the structure of consumption of electrical energy, population for 17.1%, other consumers for 82.9%.

One of the main tasks of development of the energy infrastructure of the region is improvement of its economic and environmental performance by reconstructing and retrofitting of old equipment, by implementing energy saving technologies in production, by optimizing conditions and processes of consumption, and by using the renewable sources of energy.

 

Agricultural Complex

The agricultural complex of the Samara Region is a diversified production and economic system with some 560 large agricultural enterprises, over 2083 farmsteads, 222,9 thousand private farm households and approx. 700 food and processing companies and enterprises.

The number of people engaged in the agricultural sector is 86.2 thousand people (5.2% of the total employed population in the region).

There are over 3,5 million hectares of agricultural lands in the Samara Region; those include 3.4 million hectares of farmland (over 7% of total farmland in the Volga Federal District) with arable lands of 2.6 million hectares.

In 2019 the products of the agricultural sector consist of 64.4% of crop farming and 35.6% of cattle farming. The regional crop farming focuses on grain, oil and feedstock cultures, potatoes, vegetables, and fruit and berry products. Animal rearing includes dairy and meat cattle rearing, pork, sheep and poultry rearing.

The volume of gross agricultural products across all types of farms in the Samara Region in 2019 (in the effective prices) was 100,4 Billion Rubles. The growth rate of agricultural products in all categories of farms in the Samara region in comparable prices amounted to 106%. The share of the Samara Region agriculture in the cumulative national production is 1.8%.

The amount of financing of this sector in 2019 was 4.7 Billion Rubles including 3.4 Billion Rubles from the regional budget and 1.3 Billion Rubles from the federal budget.

Currently, the regional agricultural complex is implementing two state programs of the regional level. The state support is focused on the implementation of the import replacement policy, improvement of investment attraction of the industry, increase of volumes of production of the agricultural industry, improvement of financial and economic standing of the regional agricultural producers as well as of the level and quality of living in rural areas.

In order to improve competitive capacity of the agricultural industry in the Samara Region, activities are undertaken to perform technical and technological retrofitting of the industry. In 2019, the agricultural producers of the Samara Region bought 393 tractors, 181 grain harvesters, 13 forage harvesters and combines and other equipment worth a total of over 4,6 Billion Rubles.

In 2019, agricultural producers of the Samara Region put into operation 3.6 thousand hectares of irrigated land (in 2018 - 2.3 thousand hectares), of which 1.5 thousand hectares within the framework of the federal project "Export of agricultural products".

As of today, crop farming in the Samara Region has the potential to fully satisfy the regional demand in the grain, potatoes, vegetables, as well as to supply considerable amounts of crop products to external markets. Following the results of the year 2019, the region harvested over 1 892,6  thousand tons of cereals and legumes; gross crops of sunflower which is a raw material for the main export position of the region - sunflower oil were 1120.2 thousand tons (in 2018 - 965.7 thousand tons). The Samara region is included in the top 10 regions of the Russian Federation in terms of sunflower production. In all categories of farms in the region, 301.6 thousand tons were harvested (109.9% against the level of 2018), vegetable crops - 317.1 thousand tons (96.0% against the level of 2018).

The situation in animal farming is characterized by the following indicators. As of 01.01.2020, in all categories of farms the number of cattle amounted to 225.2 thousand (99.6% to the level of 2018), including cows - 104.7 thousand (101.7%); the number of pigs - 186.7 thousand (104.3%); sheep and goats – 155.2 thousand (102.2%). In 2019, the production (sale) of meat in all categories of farms amounted to 158.1 thousand tons (104.0% to the level of 2018); milk - 446 thousand tons (101.7%); eggs – 99.2 million pieces (92.1%); milk yield per cow in agricultural organizations amounted to 5920 kg (106.3%).

The Samara Region has created favorable conditions for the development of small farming in the rural areas, and their role in the cattle rearing sector in the region is growing. In the region available grants have made to support young farmers and development of family-owned cattle farms; and as of today those are the major suppliers of organic products in the region.

As part of the implementation of the measures of the federal project "Creation of a support system for farmers and the development of rural cooperation" in 2019, 14 grants were provided for the creation and development of peasant (farm) farms ("Agrostartup"), 28 jobs were created by the winners of the competitive selection, 21 agricultural consumer cooperatives were registered (hereinafter - ACC); 130 new members from among small and medium-sized businesses were accepted to join the ACC, the number of people involved in small and medium-sized businesses operating in the field of agriculture, including at the expense of state support, in 2019 amounted to 193 people.

The region is increasing the volume of exports of agricultural products within the framework of the national project "International cooperation and export". At the end of 2019, the volume of exports of agricultural products amounted to $ 400.1 million (against the planned figure of $ 220 million). In the structure of regional exports of agricultural products, the main share falls on processed products - the fat and oil industry and food products. The products of Samara enterprises are in demand in more than 50 countries of the near and far abroad. The largest deliveries are made to Turkey, Uzbekistan, Finland, Iran and Kazakhstan.

There are considerable reserves for the growth of agricultural production in the Samara Region that are provided for in the implementation of investment projects in the year-round poultry farming, pork rearing and vegetable farming; besides, some large-scale projects are planned for implementation in the area of construction of dairy farms.

 

 

 

Transport Infrastructure

The Samara Region enjoys a favorable economic and geographical location. It lies at the intersection of the most important transport corridors: the North-South and the West-East.

As part of the development of a system of international transport corridors throughout Russia, in particular the development of the international transport route “Europe - Western China,” the regional transport hub is able to become one of the main centers for cargo processing and consolidation of transit and export-import cargo flows in Eurasian relations.

As far as the transport and logistic system of the country is concerned, the Samara transport junction, represented by all major means of transportation except marine, has the capability of serving the national and international cargo flows to and from Kazakhstan, Middle and South-East Asia, Europe, and China.

The territory of the region is traversed with several mainline railroads connecting the Western, Southern, South-Western, and Eastern regions of the country. The branch of OJSC “Russian Railways”, the Kuybyshev Railroad, operates large passenger, cargo handling and repair complexes. The operating length of railroads in the region is approx. 1.4 thousand kilometers. In terms of density of railroads, the Samara Region ranks first in the Volga Federal District and twelfth in Russia (256 km per 10,000 square km of territory).

The “Kurumoch” International Airport is part of the “Airports of the Regions” holding and is one of the largest in the Volga region (ranking 13th in Russia). Flights are operated by over 50 Russian and international airlines in more than 80 domestic and international scheduled destinations. The new passenger terminal is in operation. In 2018, the “Kurumoch” International Airport served more than 3 million passengers and became the laureate of the national award “Air Gate of Russia” in the nomination “The best airport in the category from 2 to 4 million passengers per year”.

The “Kurumoch” International Airport has the status of an airport with 4 Skytrax stars. Last year, as part of the Skytrax World Airport Awards-2018 international award, Samara Airport took third place in the nomination “Best Regional Airport in Russia and the CIS”.

The “Kurumoch” International Airport operates its own cargo terminal and provides the full range of warehouse services. The total area of the cargo terminal is 5,300 square meters. The temporary warehouse had an outdoor parking space for 13 cargo vehicles and a final customs transit area for 25 vehicles. The turnover of cargo is 150 tons per day.

The office space houses the cargo transit sales department, staff rooms for the temporary warehouse, and the “Airport” customs post of the Samara Customs.

The main water artery of the European Russia is flowing across the territory of the Samara Region: the Volga. The total length of internal navigable waters in the Samara Region is 687 km, and there is access to the Unified waterway system of European Russia and exits to the Caspian, Black, and the Baltic Seas. River ports are operating in Samara and Togliatti.

The length of general hard-paved automobile roads on the territory of the Samara Region is approx. 18 thousand km including 781 km of federal highways, 7 thousand km of regional and municipal roads and approx. 10 thousand km of local roads. Several federal highways pass through the region, including the M-5 Ural (Moscow-Ryazan-Penza-Samara-Ufa-Chelyabinsk) and the A-300 (Samara - Bolshaya Chernigovka - border with the Republic of Kazakhstan).

Three largest Russian gas trunk pipelines are laid through the territory of the Samara Region: Chelyabinsk to Petrovsk, Urengoy to Petrovsk, Urengoy to Novopskovsk. There are also oil and oil product pipelines forming parts of the systems operated by OJSC “Transnefteprodukt” and JSC “Transneft”, their total length exceeding 5 thousand km.

The Samara Region is one of the country’s leaders in terms of development of telecommunication infrastructure and implementation of informational technologies. In particular, according to the Federal State Statistics Service, Internet penetration in the Samara Region is higher than in the Volga Federal District.

There are more than 200 telecommunications operators providing services in the territory of the Samara Region. There are backbone operators in the region (“Rostelecom”, “Orange”, “TransTelecom”) making it a communications center of the Volga Region.

The mobile communications market in the region is highly competitive (5 mobile operators) which enable growth of amount of rendered services and improved service quality. The coverage of the region’s territory with mobile communication is above 99%. The share of mobile communications in the total amount of communication services in the region is about 25% in 2020, the share of services for connection and transit of traffic and document electric communication is 57% in 2020.

The directorate of the Federal Post in the Samara Region (branch of the Federal State Unitary Enterprise “Russian Post”) provides over 100 types of socially important postal, financial and information communication services. Postal services are available in 770 post offices (including 519 in the rural areas).

 

International Economic Activities

 

  Several large-scale investment projects have been implemented in the Samara Region including those with foreign participation. To name a few, it would be worthwhile mentioning the Russian-American “JVC Systems” (manufacturing of cars), Russian-American company “PES/SCC” (cable glands for automobiles), Russian-German “Robert Bosch Samara” LLC (automotive components), branch of the Russian-British company “Coca-Cola HBC Eurasia” LLC, branch of the American company “PepsiCo Holdings” LLC (soft drinks and beverages).

There are foreign investments in the regional economy in the segment of trade, and several projects have been completed with foreign partners: a number of shopping centers have been opened including “Метро Cash & Carry”, “Auchan”, “Leroy Merlin”, “IKEA” and others.

One of priority areas of international economic activities is the support of exports of industrial companies, especially development of non-resource exports (highly technological export).

Within this activity support is provided to regional non-resource exporters on the phase of entering external markets. In particular, the Samara Region organizes trade and economic missions of representatives of the regional business community to foreign states and organizes activities with foreign partners and potential investors on the territory of the region.

Development institutions are also engaged in the work: cooperation with JSC “Russian Export Centre” (REC) has resulted in the organization of the REC educational project in the Samara Region.

 

Investment Climate of the Samara Region

 

According to the Russian rating agency RAEX ("RAEKS-Analytica"), the Samara region in terms of the investment climate belongs to the group of constituent entities of the Russian Federation with medium potential and minimal risk (2A) and ranks 12th in terms of investment potential and 17th in terms of investment risk among 85 regions of Russian Federation (rating 2020).

Following the rating of investment attractiveness compiled by the National Rating Agency in 2019, the Samara Region is one of the regions with high investment attractiveness (level 3, group IC3). Only nine regions of the country have higher positions.

In 2020, the Samara Region moved 2 lines up the National rating of investment climate status in the Russian Regions (from 24th to 22nd), the rating compiled annually by the Agency for Strategic Initiatives (ASI).

On October 2, 2020, the international rating agency S&P Global Ratings affirmed the region's credit rating at BB + with a Stable estimate. Earlier on August 9, 2019, the international rating agency S&P Global Ratings raised the long-term credit rating of the Samara Region by one notch from BB to BB + with a Stable estimate.

On December 11, 2020 international rating agency "Moody's Investors Service Ltd." affirmed its credit rating at 'Ba2' with a 'Positive' estimate. In 2019, the international rating agency Moody's Investors Service raised the credit rating of the Samara region by one notch from Ba3 to Ba2, and also improved the estimate of the region's credit rating from Stable to Positive.

In June 2019, the Russian Rating Agency AKRA published a press release to the effect that credit rating of the Samara Region was raised one level from “AА-(RU)” to “AА(RU)” with a “Stable” forecast.

The high ranks given by the rating agencies characterize the Samara Region as a sustainably developing region of the Russian Federation and make a positive impact on the investment promotion of the region.

The region has formed a multi-channel system of state financial and non-financial support of investment activities in every stage of implementation of the investment projects.

One of structures of the Samara Region working in this area is the Samara Region Council for the improvement of investment climate. Its Chairman is the Governor and it is composed of representatives of large and medium-sized companies working on the territory of the region. The Investment Council is a powerful structure for the discussion of questions important for the business and for establishing a direct dialog between the Government of the region and the business community.

Within the framework of the Investment Council, two working groups have been created and are operating: for investment projects and for the development and support of small and medium-sized businesses.

Tasks of the working group for investment projects are the analysis of and assistance in the implementation of investment projects from relevant agencies of executive authorities and, following that, presentation of most important projects on the meetings of the Investment Council in order for decisions to be made on making an investment memorandum and/or listing the project as a strategic project of the Samara Region.

The tasks of the working group for the development and support of small and medium-sized businesses are operational monitoring of the conditions for carrying out entrepreneurial activities, the formation of proposals on the implementation of state support measures, including in the field of financial, credit, tax and property policy, control and licensing practice, as well as elimination of barriers to entry into the market for new and existing business entities.

There also exists a specialized development institution to assist investors and entrepreneurs, the Samara Region Investment Promotion Agency which is a one-stop service ensuring communications with investors, selection of partners according to the company priorities, and providing assistance to investors in the implementation of their investment projects.

OJSC “Samara Region Development Corporation” was founded with the objective of implementing large-scale projects, including infrastructural ones, with special importance for the region: projects capable of becoming ‘points of growth’ for the regional economy.

An investor making an investment project in the Samara Region may rely on various forms of state support provided for by the regional investment legislation. First and foremost, it guarantees equal opportunities for app parties involved in the business process that are required for fair competition, minimal administrative barriers and a favorable taxation regime.

State support of investment activities in the Samara Region is performed in compliance with the Law of the Samara Region No. 19-GD dated 16.03.2006 “On Investments and State Support of Investment Activities in the Samara Region”.

On the pre-investment phase of implementation, the investors are given informational, methodological, legal and consulting assistance; there is also a possibility of entering into Investment Memoranda with the Government of the Samara Region.

In accordance with the Investment Memorandum, a state supervisor, or curator, would be assigned to the investor. The Investment Memorandum is entered into for the period of payback of the investment project, but not more than for seven years.

If necessary, the investors will be assisted in the selection of vacant production sites and land plots.

On the investment and operational stages, the investors will be provided a range of financial and non-financial state support measures.

Preferential taxation may be provided as a measure of support:

1) For investors implementing investment projects in the priority areas of economic activity on the territory of the Samara Region; support is provided as a property tax exemption for the organizations implementing the investment project worth below 100 Million Rubles for a period of 2 years, worth from 100 to 500 Million Rubles for a period of 4 years, worth 500 Million Rubles and more for a period of 5 years. This preference is applied to the property created or procured within the course of implementation of the investment project and designated for its implementation from the month the said property is entered in the books as fixed assets.

2) Lowered tax rate on income generated from the project implementation and deducted to the regional budget to 13.5% provided that the project value is 100 Million Rubles and more as of the day the investor files an application to the tax agencies. Investors implementing in the Samara Region projects worth from 100 to 500 Million Rubles will have the lowered tax rate for a period of 4 years, and for projects worth 500 Million Rubles and more for a period of 5 years. This preference is applicable to the income generated from the sales of goods (jobs or services) resulting from the implementation of the investment project from the start of the reporting period in which the income from the project implementation was generated, the income being identified as per tax reports.

Preferential taxation is applied when a taxpayer's application is submitted to the tax authority in writing with the attachment of a business plan agreed upon before the end of the investment phase of the project in accordance with the Procedure for the approval of business plans for investment projects of organizations claiming state support in the form of preferential taxation in the Samara region, approved by the Resolution of the Government of the Samara Region dated 23.07.2018 No. 417.

Also, for investors carrying out investment projects in the territories of single-industry urban districts of the Samara region with a population of up to 100 thousand people (Chapayevsk, Oktyabrsk, Pohvistnevo), it is envisaged to increase the terms of preferential taxation on corporate property tax by 2 years and on corporate income tax by 2 of the year.

In addition, participants in the registers of regional investment projects are entitled to reduced income tax rates: federal at the rate of 0% and regional at 10%. In accordance with the Tax Code, the purpose of these projects is the production of goods, except for the extraction or refining of oil, the production of gas or gas condensate, the provision of services for their transportation, the production of excisable goods (except for cars and motorcycles).

The regional bill also provides the following additional criteria:

- The project is to comply with the “Processing” type of economic activity;

- The amount of investment for the project participants shall be at least:

50 million Rubles, provided that the investments is implemented within the term not more than three years following listing on the register (for urban districts of Oktyabrsk, Chapaevsk, and Pokhvistnevo);

100 million Rubles, provided that the investments is implemented within the term not more than three years following listing on the register (for other territories of the region);

500 million Rubles, provided that the investments is implemented within the term not more than five years following listing on the register (for all territories of the Samara Region);

The share of investment made prior to application to be listed on the register shall not be more than 15% from the total amount of investment.

Companies listed on the register are entitled to lowered rates of taxes on company income: federal tax rate of 0% and regional tax rate of 10%.

Preferential taxation is provided upon taxpayer’s applying in writing to the tax authority with attached business plan approved by the Samara Region Ministry of Economic Development and Investments.

It should be noted that the coordination of business plans of investment projects of organizations is carried out before the end of the investment phase of the investment project, in accordance with the Procedure for the coordination of business plans of investment projects of organizations applying for state support in the form of preferential taxation in the Samara region, approved by the Government of the Samara region dated July 23, 2018 No. 417.

Also, for investors carrying out investment projects in the territories of single-industry urban districts of the Samara region with a population of up to 100 thousand people (Chapaevsk, Oktyabrsk, Pokhvistnevo), an extension of the terms for preferential taxation on corporate property tax by 2 years and corporate income tax by 2 years.

Regional investment legislation provides for the provision of subsidies from the regional budget in order to reimburse the costs incurred in the course of the investment project:

- to pay interest on loans received from Russian credit organizations in connection with the implementation of investment projects in the Samara region;

- on the creation and development of infrastructure of industrial sites and industrial parks.

Subsidies are provided on a competitive basis and are of compensatory nature.

Subsidies are granted in cases and within the amount of funds stipulated by the law of the Samara region on the regional budget for the corresponding financial year and planning period.

For the investors organizing new production sites in mono-industry towns of the Samara Region (Chapaevsk, Oktyabrsk, Pohvistnevo)  are entitled to subsidies from the regional budget in the amount of 100 thousand Rubles for each actually created job provided that the average monthly salary be not less than the one and a half minimal wages (not more than 25% of the total value of the project). Such subsidies are made available as the jobs are created.

It is also provided for investors to receive state guarantees of the Samara Region on the return of borrowed funds raised for investment activities. State guarantees of the Samara region are provided on a competitive basis, provided that the repayment period of borrowed funds attracted for the implementation of investment projects does not exceed seven years.

There is a special economic zone of industrial production type in the Samara Region, on the territory of Togliatti (SEZ “Togliatti”). 

In compliance with the federal law, the residents of the SEZ “Togliatti” are eligible for substantial benefits and preferences. In addition, for residents of the SEZ “Tolyatti” an additional regional measure of state support is applied: exemption from payment of transport tax for a period of 10 years, the income tax rate is reduced to 2% in the first five years from the moment of profit, to 7% within the following 5 years and up to 15.5% until 2059.

At the moment, the territories of the first and second phases of construction of SEZ “Togliatti” accommodate engineering infrastructure and transport network facilities. On the territory of the SEZ there are ten active production facilities. The residents of the SEZ are 26 companies from 9 countries; the total value of proposed investment is approx. 24,9 Billion Rubles, and a total of 5,1 thousand new jobs are to be created. In the medium term, in the territory of the SEZ it is planned to build a regional industrial park, as well as bringing a railway line to its borders. Annually the SEZ “Togliatti” is included in the “Free Zones of the Year” ranking of the authoritative fDi Magazine. The site's successes in 2020 were noted by the Association for the Development of Clusters and Technoparks of Russia with the assistance of the Ministry of Economic Development of Russia. According to the results of the IV National rating of investment attractiveness of special economic zones, the SEZ "Togliatti" took the third place and entered the TOP of the most attractive sites for investors in Russia, having risen by three points over the year. According to the annual summary report on the effectiveness of the activities of special economic zones compiled by the Ministry of Economic Development of Russia, at the end of 2020, the SEZ "Togliatti" was in the top five in the country. According to the dynamics of the number of residents of the SEZ "Togliatti" - in the top three after the Republic of Tatarstan and the Lipetsk region. At the end of 2020, the Analytical Center "Expert" confirmed the highest status of the SEZ "Togliatti" - the site again entered the first category of the best Russian investment sites, confirming the highest AA status assigned to it last year - parks that are most attractive to investors.

There are the state industrial parks “Preobrazhenka” and “Chapaevsk”, private industrial parks “Togliattisintez”, “Stavropolsky”, and the industrial park of PJSC “AVTOVAZ”. Since 2019, work has been underway on organizing the industrial park “Novosemeikono” in the Krasnoyarsky municipal district, in 2020, a decision was made to create the Preobrazhenka 2 industrial park.

Currently, 24 companies operate in the areas of state industrial parks. The total volume of investments by residents and investors amounted to more than 14.2 billion rubles by the end of 2020. Since the inception of the parks, 5,231 jobs have been created (including 977 jobs in production).

The anchor resident of the Preobrazhenka industrial park is Robert Bosch Samara LLC, which has been producing automotive components in the park since 2015.

In November 2018, the anchor resident of the Chapayevsk industrial park, Knauf Gips Chelyabinsk LLC, put into operation the first stage of the plant for the production of gypsum binder and gypsum mixtures.

Manufacturing enterprises of operating residents of state parks are provided with water, gas and electricity supply networks, sewerage systems and highways, as well as utilities and energy resources in sufficient volumes.

The “Togliattisintez” industrial park is created on the territory of the brownfield production site. The production and storage facilities within the park are connected to major communications (water, electricity), and some have connections to other utilities. 15 companies are residents with 283 jobs; the total investment is 429 million Rubles.

Two companies are residents of the “Stavropolsky” industrial park:  PNK-Gpoup (“Logopark Volga” warehouse complex) and “Gazprom Gazomotornoe Toplivo” LLC (CNG filling complex).

The industrial park of JSC “AVTOVAZ” (internal division located on the territory of the former Volga Mechanical Plant, VMZ) was organized with the aim of creating additional jobs in the urban district of Togliatti ant renting out areas not engaged in major production activities of JSC “AVTOVAZ”. 18 companies are residents with 1,700 jobs and the total investment of 900 million Rubles.

In 2019, the first private agricultural park “Samara” was commissioned. Its 10 hectares’ territory houses storage, pre-processing and processing facilities for agricultural products, and trading facilities.

Organization of industrial parks is an efficient way assisting creation of new jobs, improvement of competition, decrease of dependence on imports, promotion of new investments, creation of a sustainable and comfortable business environment, improvement of intellectual potential and increase of tax revenues for budgets of all levels.

In August 2019, the town of Novokuybushevsk became listed as a single-industry town of the Russian Federation.

In 2 single-industry towns of the Samara region - Togliatti and Chapaevsk, territories of advanced social and economic development (TASEDs) are working.

The procedure for entering into agreements for the performance of activities in the TASED and for obtaining the status of the TASED resident is approved by the Decree of the Government of the Samara Region dated 21.11.2016 No. 658 “Concerning the functioning of the territory of priority social and economic development created on the territory of the single-industry municipality (single-industry town) of the Samara region”.

The TASED residents are given substantial benefits on the tax on company income to be deducted to the federal and regional budgets (2% for the first 5 years and 12% starting from the 6 years), and there is a ‘zero’ tax on company property and on land tax. The companies listed on the resident register in the first three years of the TASED functioning are eligible for lowered tariffs on insurance fees in the state non-budgetary funds (7.6 % from the payroll budget vs. the effective 30%).

The TASED Togliatti is the leader in the number of residents included in the federal register of residents among all the other territories of advanced development created in single-industry towns. As of 01.07.2021, the federal register lists 70 residents of TASED Togliatti and 12 of TASED Chapaevsk ready to invest some 45 Billion Rubles and create a total of 11 thousand jobs. As of 01.04.2021, the residents invested 18.8 Billion Rubles and created 6213 thousand jobs.

The TASED is created for a period of 10 years (with possibility of extension for 5 more years) and focuses on creating the most favorable conditions for doing business for the investors not related with the city’s backbone enterprise—and that will enable Togliatti and Chapaevsk lose their ‘monotown’ status.

 

Investment Climate and Development of Public-Private Partnership

 

In conditions of limited investment opportunities of the authorities, public-private partnership (PPP) is becoming a universal form of attracting extra-budgetary funds to modernize infrastructure in order to improve the quality of public services.

In the Samara region, the entire regulatory legal framework in the field of PPP has been formed, including regulating the interaction of all participants in public-private interaction in the preparation, conclusion and support of concession agreements and PPP agreements.

The PPP operates under the principle of project management. Projects are supported individually ‘from idea to commissioning’. For this, taking into account the form of project implementation, 3 interdepartmental working groups were created from representatives of regional and municipal authorities and other interested departments. Their work is coordinated by the Ministry of Economic Development and Investments of the Samara Region as a single authorized body in the field of PPP.

The accumulated experience in the preparation and implementation of public-private partnership projects, as well as systematic work in this area, allows the Samara region to improve its positions in the Rating of Regions in terms of the development of public-private partnership annually. According to the rating for 2019, formed by the Ministry of Economic Development of Russia (hereinafter referred to as the rating), the Samara region took the sole first place among the regions of the Russian Federation, gaining 98.7 points.

Samara Region is annually marked in the nominations of federal competitions as a "Qualified Customer" in the field of PPP, as well as for achievements in the launch and implementation of certain infrastructure projects.

In September 2020, within the framework of the VII Infrastructure Congress "Russian PPP Week", the Samara region with a concession project for the construction of a bypass for the city of Togliatti with a bridge over the river. Volga was awarded for the victory in the category "Best project in the field of highways".

In November 2020, the Samara Region was awarded for the victory in the nomination "The best constituent entity of the Russian Federation in terms of the development of PPP in healthcare" of the All-Russian competition "The best project of public-private interaction in healthcare", held by the Ministry of Health of Russia.

On the territory of the region, the implementation of the most important infrastructure projects continues on the principles of public-private partnership, primarily in the field of transport support. This is the construction of a bridge over the Volga River with a bypass of Togliatti and access to the M-5 Ural highway. The project is an integral part of the international transport corridor "Europe - Western China", its implementation will ensure the connection of the economies of countries and regions, it will pass through the largest non-capital Samara-Togliatti agglomeration by the number of inhabitants, the special economic zone "Togliatti", the technopark in the field of high technologies "Zhigulevskaya Valley ", the territory of priority development" Togliatti ". The new safe road will create conditions for the formation of additional added value not only in the Samara region, but in our country as a whole.

The construction of the railway transport infrastructure has also begun to ensure the operation of the special economic zone of industrial production type "Togliatti". Its uniqueness lies in the fact that the infrastructure is created for the implementation of specific investment projects of the residents of the SEZ "Togliatti", the largest of which is PJSC "Magnitogorsk Iron and Steel Works". A railway switch is already ready, which will redirect the rolling stock to the new branch.

By the end of 2020, work has been completed at two objects of the city of Samara - for the reconstruction of the premises of the Samara Dental Clinic No. 2 and for the construction of the Raskat football center. The implementation of these projects attracted 156 million rubles of extra-budgetary investments.

In 2020, two concession agreements were concluded in the field of housing and communal services with a total value of 428.6 million rubles - in relation to heat supply systems in the Zhigulevsk city district of the Samara region and in relation to the boiler room of the Start sports and recreation complex of the Kinel-Cherkassky municipal district of the Samara region.

In total, 27 projects of municipal-private partnership are being implemented in the region in the field of modernization of communal infrastructure and social and cultural facilities for the amount of attracted investments of more than 17.8 billion rubles.

Prospective regional concession projects providing for the implementation of activities for the organization of health improvement, recreation and employment of children, in respect of whom it is planned to conclude concession agreements, are the reconstruction projects of “Chernomorets” children's health camp and “Shakhterskaya Slava” treatment and rehabilitation complex in Anapa.

 

Innovative Development

 

The Samara Region is one of the strongest industrial regions of the country with a diversified economy, high density of processing enterprises and a powerful scientific and innovative potential.

Today, 3.4% of Russia's innovative products are created in the Samara region - 9.6% of the innovative products of the Volga Federal District. For the production of innovative products, the region ranks fourth in the Volga Federal District and 9th in Russia.

The share of innovative goods, works, services in the total volume of shipped products is 9.3%. For a number of years this indicator has exceeded the average Russian level.

The region is also among the top ten regions in terms of the share of innovative products in the volume of GRP (7th place as of 2018 - 13.6%).

In the Samara region, a regulatory and organizational framework has been formed, which covers the use of almost all forms of state support for innovative activities provided for by law. The variety of forms of support for innovative projects and developments in the Samara Region includes the provision of subsidies, entry into the authorized capital, co-financing of projects in conjunction with federal institutions, consulting and organizational support.

In the region, systemic actions have been implemented to form an effective innovation infrastructure, create a platform for a completed innovation cycle.

Following the initiative of the Government of the Samara Region and with the financing from the regional budget and federal funds, a system of infrastructural organizations was organized to support and to promote innovative developments: Centre of Innovative Development and Cluster Initiatives, the Regional Centre of Innovations (StartupSamara), the Samara Region Innovation Fund, Samara Region Venture Fund and other organizations.

The major prospective goals of the Government of the Samara Region are the search for new formats and possibilities to support implementation of newest developments in the production, establishment of communications between participants of innovative activities, activation of transfer of research and development in the real sector of economy, preparation of innovative companies of the Samara Region to enter the market of private capital and commodity markets.

To enhance innovation, the emergence of new innovative businesses in the region, the Samara region is working on the implementation of large infrastructure projects - a special economic zone of an industrial and production type, a technopark in the field of high technologies "Zhigulevskaya Dolina" has been launched.

The technopark's areas of specialization are IT technologies, transport and space development, energy efficiency and energy saving, chemistry and the development of new materials. The implementation of such a strategically important project for the region is aimed at providing the region with the latest innovative developments. In 2018, the technopark became a regional operator of the Skolkovo Foundation. Now residents of Zhigulevskaya Dolina can get access to such services of Skolkovo as: assistance in attracting investments, participation in mentoring and acceleration programs, support in commercialization and integration into technological chains of large businesses. In order to attract federal budget funds for the implementation of innovative projects in the Samara region in 2019, a representative office of the Fund for Assistance to the Development of Small Forms of Enterprises in the Scientific and Technical Sphere was organized on the basis of the Technopark. According to the results of the activity of the technopark in the field of high technologies "Zhigulevskaya Dolina" over the past three years in the National rating of technoparks of Russia is included in the group with the highest level of functioning efficiency (over 110%).

Venture investment is an effective tool for supporting and developing startups. In 2017, the Samara Region Venture Fund was created in the form of an investment partnership. The Investment Committee of the Venture Fund consists of representatives of venture funds and business angels who have the opportunity to co-invest in startups and become investors in the next rounds, thereby ensuring sustainable development for companies, and the Venture Fund's subsequent exit from projects. The result of venture financing is a highly profitable exit from projects, as well as the development of innovations and attraction of investors to the region.

In order to facilitate the transition of the economy to the path of innovative development based on the introduction and use of science-intensive technologies, the Samara Region attracts the resources and competencies of large and leading development institutions of Russia - the Fund for Assistance to Small Innovative Enterprises in Science and Technology, the Russian Venture Company, the SKOLKOVO Foundation », The Agency for Strategic Initiatives, the NTI Platform and others. The Samara Region is also a member of the Association of Innovative Regions of Russia and, according to the rating of the Association, is consistently among the top 10 innovative regions of Russia.

It was recommended to replicate the accumulated experience of the Samara region to other regions. So, in particular, the successful practices of the Samara region on the formation of a favorable environment for technological entrepreneurship and the ecosystem of innovations (StartupSamara) and on the use of the created infrastructure to support the technology business in the implementation of projects of the “real sector”, on the creation of a preseeding Venture Fund of the Samara region using “follow- on ”investment at the seed stage, and other projects were included in the Compilations of best practices of subjects - members of AIRR in 2017 and 2018.

Also today, a number of clusters function in the region, of which three are officially registered: an innovative territorial aerospace cluster, an automotive industry cluster, a cluster of medical and pharmaceutical technologies.

 

Small and Medium Businesses

 

In the Samara region 123,523 small and medium-sized businesses (SMEs) operate, including 54,428 (44.1%) micro-enterprises, 4,543 (3.7%) small businesses, 394 (0.3%) medium-sized enterprise, 64,158 (51.9%) individual entrepreneurs.

The SMBs of the Samara Region are distributed by type of economic activity as follows: trade – 37.4%, services - 27.2%, transport – 8.6%, construction – 10.5%, manufacturing - 6.8%, agriculture - 2.2%, other industries – 7.3%.

In the Samara region, the number of people employed in the SMB sector is 557.9 thousand people, the number of self-employed citizens is 62.9 thousand people.

The expansion of the infrastructure for supporting entrepreneurship continues. In 2019-2020, 6 “My Business” centers were opened to provide comprehensive support and services to SMEs - in the urban districts of Samara, Togliatti, Syzran, Otradny, Novokuibyshevsk, Chapaevsk. In 2021, it is planned to open centers in three more urban districts.

In 2021, the regional center "My Business" is started operating. The center will host the regional infrastructure for supporting entrepreneurship (SFSO, ICASO, the Samara Region Entrepreneurship Development Center Foundation, Samara Region Export Support Center). Reception will be carried out by the Commissioner for the Rights of Entrepreneurs in the Samara Region, public organizations of entrepreneurs.

Representatives of SMBs of the Samara region, despite the pandemic, closed borders and restrictive measures, in 2020 exported their products worth 34 million US dollars. To a large extent, these results were achieved thanks to the interaction of business representatives and the Export Support Center of the Samara Region (ESC), where each potential or existing exporter can receive assistance in developing foreign markets. ESC services are provided free of charge or on terms of co-financing.

In 2020, the authorized capital of the joint-stock company of the microcredit company “Guarantee Fund of the Samara Region” (SFSO) was capitalized by 640 million rubles. The SFSO provides microloans at preferential rates of up to 4.25% per annum with a processing time of 1 day, including without providing collateral.

Large accelerators Innovate Samara, PROBusiness passed.

In 2020, a new project "Business Case" was launched for the self-employed and entrepreneurs - this is a whole range of services to support the project at the stage of its launch or development. The package includes marketing, financial and legal services that program participants were able to receive absolutely free.

The implementation of the Profession-Entrepreneur program continues. More than 40 business excursions to private enterprises of the Samara region took place, in which 1.5 thousand people took part.

The results of the regional stage of the All-Russian competition of projects in the field of social entrepreneurship "The best social project of the year" have been summed up. 7 social projects became the winners of the stage. The laureates of the regional stage represent the Samara region in the final of the All-Russian competition "The best social project of the year".

A special competition for self-employed citizens "I am Brand" was held, where the best were chosen by experts and spectators. 70 applications have been submitted to participate in the competition, 2 winners have been determined in this competition.

The final of the regional stage of the "Young Entrepreneur of Russia-2020" competition took place, six finalists (out of 100 applications) represented the region at the federal competition. The winner of the federal stage of the competition was an entrepreneur from Samara with the project of an eco-friendly ZEROWASTER store.

For the third year in the region, the federal educational project "Mom is Entrepreneur" is being held for young mothers who want to develop their own business. This year, 75 mothers from three cities: Samara, Togliatti and Syzran became participants in the program. The main prize of the competition was a grant of 100 thousand rubles for the development of the project. A workshop project for the creation of polymer clay products won.

21.5 thousand people became participants of the national project "SMB" in 2020.

Work is underway on the examination of regulatory legal acts of the Samara region, as well as on the assessment of the regulatory impact of draft regulatory legal acts of the Samara region, affecting the implementation of entrepreneurial and investment activities. Total for the period 2018-2021 919 regional and 2,100 municipal regulations were analyzed for unnecessary burden on business in conjunction with the business community.

Every year, the Samara region in the rating of regions for ODS stably maintains a position in the groups of the highest and good levels, showing a positive dynamics of the development of the ODS institute in the region.

Samara Region is among the 20 regions - leaders in the implementation of the indicator "Implementation of control and supervision activities in the constituent entities of the Russian Federation", defined by the target model "Support for small and medium-sized businesses", in the amount of 100%.

The interaction of the Ministry of Economic Development and Investments of the Samara Region with the territorial federal bodies exercising control and supervisory functions allowed the Samara Region to improve its position by 20 points in the Administrative Pressure 2020 Index, which indicates a decrease in the administrative burden on regional business.

Information on measures of state support for entrepreneurship is posted on the single portal of state support for business in the Samara region mybiz63.ru. Also, the 4 most popular social networks (Instagram, facebook, twitter, vk) have an account @ mybiz63.

 

 

 

Learn more and visit official site of the

Ministry of Economic Development

and Investment of the Samara Region

www.economy.samregion.ru

and Regional Investment Portal

www.investinsamara.ru