Dynamic development and investment attractiveness of the region is ensured by the main factors such as:

1. Attractive Location

Vladimir Region is located in the centre of Eastern-European Valley to the east of the capital of the Russian Federation, Moscow. It has a very convenient location and is very easy to reach. The administrative centre of the region is 198 km away from Moscow. It shares borders with the Moscow, the Nizhniy Novgorod and the Yaroslavl regions.

These commercially developed federal subjects provide intercommunications between the Vladimir Region and neighbouring regions concerning raw materials and finished production, and increase economic development of the Vladimir Region. Being a neighbour of Moscow and the Moscow Region provides the use of scientific potential for economy development and skilled staff training of the Vladimir Region. The region is located close to raw material bases: Ural, the Volga Region, central metallurgic base, where the region gets oil, gas, coal, metal, chemical raw materials and other natural resources.

2. Qualified human resources.

The population of the region is 1,4 million of people, the number of active population of the Vladimir Region is 775 000 people, the average age of occupied population is 40 years old. Labour force participation rate of the Vladimir Region has been gradually increasing since 2010 and has reached 70,3%, which is higher, the national rate (68,7%). The largest representatives of educational system are Vladimir State University named after A.G. and N. G. Stoletovs, Kovrov State Technological Academy, Vladimir Law Institute of Department of Justice.

During 2009–2013 on the basis of regional institutions of primary and secondary professional education there were created 9 resource centres of training, advanced training and professional development of regular labour force and specialists for enterprises and organizations of different types of ownership in promising economic branches of the region: metalwork, mechanic engineering, automobile industry, building, agriculture and forest management, tourism, the sphere of public amenities and catering.

3. Well-developed infrastructure.

The Vladimir Region is located in the center of European part of Russia and has well-developed transport and roads infrastructure. The region is a transit area of traffic flow from the centre of Russia to Ural, Siberia (there is an international corridor N2 «East-West» going through the territory of the region), thus, being adjoined to the main transport corridors and hubs, provides great advantages in development of areas. The main transport corridor (railways and roads) is stretching from west to east, from Moscow to Vladimir and further to Nizhniy Novgorod, Kazan and Ekaterinburg.

Pipeline transport

The following pipelines are going through the territory of the Vladmir Region: gas pipeline «Yamburg — Tula 1,2» (CS Murom) and «Urengoy — Centre 1,2 (CS Kameshkovo) — 150 billion m³ per year (100 million tons per year) in total. OAO (JSC) «Gazprom»; 2 branches of the oil pipeline «N.Novgorod — Ryazan» (20 million tons per year), OAO (JSC) AK «Transneft»; product pipeline (MPP) «Kstovo — Ryazan» (not less than 2 million tons per year) with bends to Sudogda and Vyazniki, a pump station with oil tankage in the village Vtorovo, a pipeline «Vtorovo — Primorsk» (8,4 million tons per year, diesel gas oil — the project «Sever» (of OAO (JSC) «Transneftproduct»).

Railway traffic

Railways density of the Vladimir Region is inferior only to the Moscow (including the city of Moscow) and the Leningrad (including the city of St. Petersburg) regions. Railway lines easily and conveniently connect the Vladimir region with almost any region of Russia, CIS and foreign countries. The territory of the region is crossed by Gorky, Moscow and Northern railway lines. These railways connect the Vladimir region with northern regions of European part of Russia, the Volga region, Ural and eastern part of the country. The most important direction Moscow — Nizhniy Novgorod is going through the region, and has incredible conditions for further infrastructure development; a short-term plan is realization of such a project as construction of a high-speed freeway (VSM-2) Moscow — Kazan — Ekaterinburg.

Airline Service

The airport Domodedovo (Moscow) is 180 km from Vladimir. Air transportation of cargos and passengers are institutional and carried out through state budgetary institution of the Vladimir region «Vladimir Base of aerial forest protection», located on the territory of the joint airport «Semyazino» in Vladimir. The airport can be used for the purposes of civil aviation.

On the territory of the Vladimir region there is an airdrome «Dobrynskoye», on the basis of which passenger and cargo airport system is being constructed at present.

Inland water transport

Boat traffic is carried out along the rivers Klyazma and Oka (a bit further from Vyazniki). Length of water way in use is 331 km. Local freights and construction materials are mainly transported. The largest river harbour is Murom. Passenger carriage by river craft is not possible.

Highways

The most important highway is a federal highway M-7 «Volga» with cargo traffic up to 10 million tons per year. In 2010, when construction of the cable-stayed highway bridge across the river Oka in Murom was finished, the region entered the functioning zone of the transport corridor (which was being recreated) North-South with ways to the harbours of the Azov Sea, the Black Sea, the Caspian Sea and the White Sea-Baltic Sea basins.

4. Essential store of energy supply.

Gas infrastructure development and gas-supply

As of 01.01.2014 level of natural gas infrastructure development is 80,5% (inter alia, city districts — 90,9%). In 2012 a new master plan of gas supply and gas distribution network in the Vladimir region was developed by OAO (JSC) «Gazprom». The Program of gas supply and gas infrastructure development in the Vladimir region for the period of 2012–2015 was signed by both the Regional Administration and OAO (JSC) «Gazprom» and is being implemented at present. The program is given special priority.

Power Sector

Power supply scheme is very reliable and provides an opportunity for switching and allows getting electrical power from almost all nearby regions: Moscow, Ryazan, Nizhniy Novgorod, Ivanovo, Yaroslavl.

At present CCGT with a capacity of 230 MWt is being built at the thermal power station (TPS-2). Power output is provided from the generator unit of a gas-turbine plant for voltage of 220 kW through 220 kW GIS (electric power is 167,1 MWt) through 2 overhangs of 220 kW HV line into a break of existing 220 kW «Rayonnaya Zarya» HV line, and from the generator unit of a 110 kW steam-turbine plant for voltage through the existing 110 kW outdoor switchgear (electric power is 63 mWt) through the existing «Stantsionnaya-1» 110 kW HV line to «Khimzavodskaya» 110 kW substation. The target date of the TPS start-up is April, 2014.

Electric networks development of 220 kW and higher voltage in the Vladimir region is estimated by «Investment program of OAO (JSC) „FGC UES“ for the period of 2013–2017», in accordance with which complex re-equipment and reconstruction of «Rayonnaya» 220 kW substation is being carried out at present. Work at the substation is to be finished in 2017.

The latest positive tendency is development of energy industry using local fuel type (peat). In 2010 a long term special program «Complex development, processing and use of peat on the territory of the Vladimir region for the period of 2011–2016» was confirmed for the purpose of effective use of local fuel types. At present more than 30 biofuel boiler stations are being operated. The governor of the Vladimir region and the corporation «BIOENERGY» (Moscow) have signed an investment agreement, within the frames of which a bioenergetics cluster has been created. The holding includes factories dealing with peat digging, processing and development, peat boilers production, upgrading coal and residual boiler stations by changing them into peat pellets and operation of such boiler stations with overall power of 60 MWt and distribution network. There’s a peat digging and processing plant in the village Mezinovskiy in the Gus-Khrustalniy District.

5. Inexhaustible mineral resources

The main mineral resources of the Vladimir region are limestones, peat, mason’s sand and stones, flint and brick clay. Peat store is about 59 million tons, and the main part of it is deposited in Meshcherskaya lowland area. Total limestone deposit is 30 million tons and is situated in the area of Oka-Tsin rampart, where the formation can reach 130 metres (the Kovrov, Vyazniki, Sudogda and Selivanovo regions).

Quartz sand -pure, fine and almost free of clay particles of glacial origin, is of federal importance. There is a lot of quartz sand on the south of the region (the Gus-Khrustalniy and the Melenki regions). The sand is used for glass and crystal production. There are also phosphorites, ironstone, some deposits of gypsum and metallurgical dolomites of local significance. There are some mineral water springs on the territory of the region.

In the absence of great fuel and power resources, there are considerable raw materials deposited on the territory of the region, which are used in glass and construction materials industries. Peat stocks are the largest in the Central Federal District and found a raw material base for many plants.

6. Innovations.

There are 23 organizations dealing with scientific research work. The amount of scientific research and development in the Vladimir region ran at not less than 10 billion rubles in 2013. There were 214 patents issued in the Vladimir region in 2014.

The leading organizations successfully dealing with scientific research work are:

• OAO (JSC) «Signal» (ACS/Automatic Controlled Systems for weapons and military equipment);
• OAO (JSC) «Scientific research, design-and-engineering and technological institute of electrical machine building»;
• OAO (JSC) «Magneton»;
• FSU «Federal Centre of Animal Health protection»;
• SSI Vladimir Scientific research institute of veterinary virology and microbiology;
• Vladimir State University named after A.G. and N. G. Stoletovs;
• Kovrov State Technological Academy.

Important innovation projects: «Generium» (biotechnologies, pharmaceutics), «RM Nanotech» (membrane technologies), «STES-Vladimir» (foam glass), «VLADPOLYTEKS» (PETP fiber materials), «Juteks Ru» (CV coverings).

Nanotechnologies and Nano industry are paid particular attention to in the Vladimir region. In the period of 2010–2013 large and medium-sized businesses of the region nearly 4 times increased value of shipments and receipts, connected with nanotechnologies. The strategic partner of the Vladimir region in the sphere of nanotechnologies development is OAO (JSC) «ROSNANO».

The region disposes rather big local sci-tech potential. The existing level of costs on technological innovations allows the region to rapidly increase innovation goods dispatch (wok, services) and enhance their part in the whole amount of dispatched goods (work, services).

7. Financial Support.

The Bank system of the Vladimir region actively participates in the social and economic development of the region.

As of 01.12.2013 the structure of the bank sector is represented by 3 regional loan companies (ZAO (CJSC) «Vladbusinessbank», OOO (LLC) «Vladprombank», OAO (JSC) Combank «Okskiy»), 12 out-of-region banks, including OAO (JSC) «Sberbank of Russia», and 2 offices of out-of-region loan companies, 455 inner structural departments.

Full service banking is offered by credit and financial organizations. Branches and offices of federally known banks such as OAO «Sberbank of Russia», OAO «Moscow Industrial Bank», OAO Bank «VTB» and some others are of the most importance.

For the benefit of economic and social development of the Vladimir region, on the 30th of July,2013 the regional Administration and OAO (JSC) «Sberbank of Russia» entered into an agreement, which determined cooperation mechanism concerning support and development of medium-size and small businesses in the region, realization of programs of infrastructure and municipal corporations development, house construction, community redevelopment, restructuring housing and utility sector.

8. Developed agriculture.

Area under crop plants on farms of all categories of the Vladimir region ran at 335,5 thousand ha in 2013. In 2009–2013 there were taken measures concerning conservation and recovery of soil fertility, expanding crop areas, using of underutilized agricultural lands, what provided the use of 27 thousand ha of unused fields.

Over 80% of animal products in the Vladimir region is produced on the farms and complexes, equipped with modern refrigerating and milking equipment.

New technologies in fodder production are used by agricultural companies. Usage of natural gas-based motor fuel in farming machinery is being implemented.

Pig and cattle stock in the Vladimir region has been annually increasing since 2008. Milk production has also increased. The Vladimir region takes the second place in milk production per cow (the first one is taken by the Moscow region).

The biggest regional pig breeding complex «Mortadel» carries out a number of projects in production development on the territory of the Vladimir region. The selected-genetic complex «Mortadel» is a high technological bioengineering company, producing high-yielding young breeder and meeting the world’s requirements of pig breeding, and supplying it the leading stock and commercial enterprises.

Favourable conditions for agricultural development of the region are detrmined by natural and ecological environment and conservation of nature balance. This is a significant difference of the Vladimir region from the neighbouring regions.

9. Rich history and Tourism appeal

The Vladimir region is famous for such ancient cities as Aleksandrov, Gorokhovet, Murom, Yuryev-Polskiy, Gus-Khrustalniy, their architectural, historical, cultural and religious places of interest, a place of orthodox pilgrimage, Suzdal (the monastery of the Saviour and St. Euthimius, the Alexandrov, the Intercession and the Ordination monasteries), unique architectural and landscape landmark, the Church of Intercession on the river Nerl in the village Bogolyubovo. The main part of the Golden Ring route is going through the region.

The Vladimir region takes the 3rd place in the RF in visits to museums, what is 1, 78 times higher than the index of the Central Federal District and 2, 5 times than in the RF. The Vladimir region is sometimes called a pearl of Russian nature and soil reservation. The largest environmentally protected site, the national park Meshchyora is a popular place for tourism (kayaking, skiing, cycling, hiking, hunting, fishing, water recreation activities, mushrooms and berries picking), and has some tourist bases. The rivers on the north-west of the region (Kirzhach, Peksha, Koloksha) are very popular among kayakers. The lakes of the park «Kshchara» are very popular due to their remoteness and accessibility at the same time. Tourist and sport shipping is well developed along the rivers Klyazma and Oka. Due to rich natural resources ecotourism is being actively developed. The main recreational resources are Snowboarding centre in the village Snovitsy of the Suzdal District, ski slope «Puzhalova Gora» in Gorokhovets, parachute sport at Kirzhach, Aleksandrov and Semyazino airdromes. Such activities as paintball and carting are well developed in the region; motorcycling is well developed in Kovrov. Facilities for Auto trials are developed in the regional bogs, diving — in deep lakes of the Balakhnin lowland area. There are some football clubs: «Torpedo — Vladimir» and «Lokomotiv» (Murom). The «Torpedo» stadium with a capacity of 26000 people is located in Vladimir.

The Vladimir region is one of the leading regions of the CFD in terms of volume of tourist potential.

10. Developed small and medium-size entrepreneurship.

Production volume, manufactured by small businesses to the extent of Gross Regional Product is about 20%, which is almost 2 times higher than in the RF on the whole (the region takes the 3rd place). Over 20% deal with manufacturing activity. It is important to point out that number of enterprises in manufacturing sector is almost equal to number of ones, engaged in the distributive services; though the latter ones are twice as many in the country.

The Regional fund of assistance in development of small and medium-size entrepreneurship has worked since 2009 and has implemented the system of guarantee of payment and microloans.

In 2011 there was created the Regional fund of assistance in the development of investment to small and medium-size businesses. There is a state program «Development of small and medium-size entrepreneurship in the Vladimir region for the period of 2014–2020» being implemented at present.

Over the last three years there have been opened five business incubators in the region: Murom, Kovrov, Pokrov, Sudogda, the village Stavrovo. The one, which is located in Kovrov is considered to be an innovative incubator, focused on biotechnologies, IT-technologies, robotics, mechatronics and energy efficiency. One of pilot projects has become PCB production using unique technologies.

11. Administration support.

The Administration of the Vladimir Region provides complex support of projects of entrepreneurial and investment activity; legislative acts have been accepted to regulate granting tax exemptions for investors in part of decreasing income tax rate and exemption from estate tax. Tax privileges concerning payment of regional taxes for a term of a payback period are warranted to be kept within the frames of active legislation.

Comfortable business atmosphere for investors is being created. Investors are assisted during all the stages of projects realization, beginning from getting an application for a site and up to state acceptance for operation of a finished industrial object.

In order to create hospitable business atmosphere for investors and decrease administrative barriers, there has been created the interdepartmental commission dealing with questions concerning realization of investment projects; during meetings the questions of utilities and approaching roads to construction facilities, assistance during sites registration, customs control and many other questions are discussed.

Work of the Commission is an efficient form of business and authorities cooperation, when administrative representatives, heads of local and federal authorities, resources providers and representatives of investing companies get together for a discussion.

Investors, who have already realized their projects on the territory of the Vladimir Region, are expanding their productions, form long-term strategic plans in cooperation with the Regional Administration, what shows good administrative atmosphere for leading business on the territory of the Vladimir Region.