Kaluga region

Kaluga Region is a developed industrial and agrarian part of Central Russia, a modern, promising, and comfortable region for business. Kaluga Region is among the leaders in attraction of investments.

Kaluga Region is located in the central part of Russia to the south-west of Moscow. It borders on Moscow, Tula, Bryansk, Smolensk, and Orel Regions. The region spreads to more than 220 km from north to south and 220 km from west to east; the area of the territory is 29.9 thousand square kilometers.

The following important highways and main railway lines pass through the regionís territory: Moscow ó Kaluga ó Bryansk ó Kiev ó Lvov ó Warsaw. The distance from Kaluga to Moscow (by highway) is 188 km.

The area is 29.9 thousand km.
The population is 1,009.9 thousand people (as of 01/01/2011).
The regional center is Kaluga City (340.0 thousand people) located 188 km to the south-west of Moscow.

 Virtual tour of Kaluga


The number of municipalities in the territory of Kaluga Region
Total: 303
including:
Municipal district 24
Urban district 2
Urban settlement 26
Rural settlement 251

The administrative territorial division of Kaluga Region as of January 1, 2013:

Cities 22
Districts 24
Urban-type settlements 7
Rural-type settlements 3178

Industry is the most important sector of Kaluga Regionís economy. It generates more than a half of the region budgetís revenues and employs every fourth resident of the region.

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The large-scale modernisation of the regionís economy and implementation of investment projects have driven the creation of new jobs, salary growth, provision of decent working conditions and interesting work. In 2013 the industrial output grew by 7.5%.

The main lines of Kaluga Regionís economical development are automobile industry, pharmaceutics, information technologies, production of household appliances and electronic devices, power equipment, construction materials, and agricultural and industrial sector.

The region leads the Central Federal District and ranks 7 throughout Russia in the industrial output per 1 resident.

Kaluga Region holds the first place in the country in the labor productivity growth rates and has become a leader in the Central Federal District in the volume of investments per capita.

This position is a result of 90 billion rubles of capital investment and foreign investments in amount of USD 1 billion 329 million. National Rating Agency has assigned the highest rating score to Kaluga Region in the Rating of Investment Attractiveness of Regions.

The region pursues the formation and development of diversified economy based on creation of high technology production.

Kaluga Region is a unique territory due to the wealth and significance of historical, cultural, and natural monuments.

Kaluga land is glorified by Russia-famous names: E.R.Vorontsova-Dashkova, A.N. Radishchev, P.L.Chebyshev, N.F.Fedorov, K.E.Tsiolkovsky, A.L.Chizhevsky, S.S.Tulikov. The historical past of Kaluga land is eternalised in the works of such Russian classical authors as: N.V.Gogol, I.S.Turgenev, F.M.Dostoevsky, A.P.Chekhov, I.S.Aksakov, L.N.Tolstoy, K.G.Paustovsky, and M.I.Tsvetaeva.

Among the regionís main sights there are Svyato-Vvedensky Monastery Optina Pustyn near Kozelsk City, architectural ensemble of Pafnutyev-Borovsky Monastery, K.E.Tsiolkovsky State Museum of History of Cosmonautics in Kaluga City, Maloyaroslavets War and History Museum of 1812, G.K.Zhukov State Museum, Museum of the Tsvetaevs Family in Tarusa, and Estate Museum of the Goncharovs in Polotnyany Zavod settlement.

Our region offers more new tourist destinations. Among them there are cultural and educational center Ethnomir, the first in Russia private Birds Park Vorobyi, the European-level ski center Kvan, and art-park Nikola Lenivets.

The regionís economy

Kaluga Region is one of the most economically developed regions of Russia. Over a number of years it has been a leader in the rates of industrial output growth.

In the period since 2006 until 2014 in Kaluga Region 78 new enterprises have been opened and more than 23 thousand jobs have been created. In 2015 it is planned to open 12 big industrial enterprises. 150 companies from all over the world implement their projects on Kaluga land.

In 2015 the region took the second place in Russia according to the National Rating of Investment Climate in Constituent Entities of the Russian Federation. Kaluga Region provides all the necessary conditions for development of both big and small enterprises. Investors who located their production facilities in the territory of Kaluga region admit that the investment policy of Kaluga Region conforms to the best international standards. The regionís legislative and regulatory environment guarantees the security of capital investments.

Kaluga Region holds the top place in Russia in rating Doing Business in the simplicity of property registration. In Kaluga Region there are Development Institutes founded for support of investment projects.

The regionís government provides financial support to business. The system of tax exemptions and preferences is available to any investor regardless of its country of origin and business sectorial affiliation.

The main product, which the region offers to investors, is the location of production enterprises in 10 industrial parks and two sites of Special Economic Zone in Lyudinovo and Borovsk. Any of these sites is a completely prepared land plot with all the required infrastructure and utilities: power supply, gas supply, water supply, and treatment facilities. In the industrial parks there are projects implemented by such companies as Lafarge, Nestle, Continental, Fuyao Glass, Samsung, L,Oreal, General Electric, Magna, etc. ó a total of 89 projects.

The regionís industry

Kaluga Region has a diversified industrial complex based on high technology sectors.

The industrial sector of Kaluga Regionís economy generates about 36% of the gross regional product and provides jobs to one third of population employed in the regionís economy. Traditionally the region manufactures turbine generators, gas turbine engines, railway equipment, radio electronic equipment, optical equipment, paper, furniture, and other goods. The enterprises of machine-building complex form a basis of the regionís industrial capacity.

2700 industrial enterprises are registered in the territory of Kaluga Region, 285 of which are big and medium-sized. The regionís new economy is developing in an integrated manner based on a cluster model. All the products, which used to be imported, are now produced in the region, i.e. cars, computers, TV sets, construction materials, drugs and cosmetics, food, animal food, and many other products. Metallurgical production is an important part of the industry.

Following the results of 2014, the rate of growth in the metallurgical sector exceeded 250%.

The structure of processing industry in the total volume of industrial production as of 01/06/2015

Activity type / Ratio to the regionís industrial output in %

Production of vehicles and equipment

Production of food products

Production of electric equipment, electronic and optical equipment

Metallurgical production and production of ready metal goods

Production of other non-metallic mineral goods

Production of machines and equipment

Pulp and paper production and printing industry

Chemical production

Production of rubber and plastic goods

Production of furniture and other goods

Woodworking and production of woodware

Textile and clothing industry

The industrial production index for January-May 2015 amounted to 89% as compared to January-May 2014. The index decrease is due to a reduction in the volume of vehicle and equipment production (74.1%) and machine and equipment production (83.8%). However, as compared to January-May 2014, there is a considerable growth in production of rubber and plastic goods (149.9%) and production of other non-metallic mineral goods (140.3%).

The production index for the type of activity Production of food products, including beverages amounted to 115.2% as compared to the similar period of 2014. There is a notable increase in production of meat products and poultry products (116.3%) and milk products (105.9%). The production index for ready pet food amounted to 125.0%.

The growth of production index for woodworking and production of woodware (109.3%) in January-May 2015 as compared to January-May 2014 is due to a growth in production of fibreboards (109.9%) and plywood (136.2%). The index is positive for production of chipboards (102.7%) and production of wooden building structures including parquet (100.9%).

The chemical production index in January-May 2015 amounted to 107.5%, which is due to a growth in production of pharmaceutical products (151.2%). Just in 2015 four big pharmaceutical enterprises began their operations in the region: NearmedicPlus, Astra Zeneca, Pharm-Synthez, and Sphera-Pharm. This situation is unique for the Russian Federation.

In January-May 2015 the production index of rubber and plastic goods amounted to 149.9% as compared to the similar period of 2014. This increase is mainly due to a notable growth in production of automobile tyres (240.1%) and a growth in production of packaging plastic goods (150.4%).

Traditional Industry

  • Machine building and metal working (75.9%)
  • Food industry (9.1%)
  • Timber processing complex (3.3%)
  • Power industry (3.2%)

New economy

  • Automobile cluster
  • Pharmaceutics, biotechnologies, and biomedicine cluster
  • Transport and logistics cluster
  • Agricultural cluster
  • Touristic and recreational cluster
  • IT cluster

Investment projects of Kaluga Region

Kaluga Region is one of the most economically developed regions of Russia. Over a number of years it has been a leader in the rates of industrial output growth. In the period since 2006 until 2014 in Kaluga Region 78 new enterprises have been opened and more than 23 thousand jobs have been created.

In 2015 it is planned to open 12 big industrial enterprises. 150 companies from all over the world implement their projects on Kaluga land.

The system of tax exemptions and preferences is available to any investor regardless of its country of origin and business sectorial affiliation.

The main product, which the region offers to investors, is the location of production enterprises in 10 industrial parks and two sites of Special Economic Zone in Lyudinovo and Borovsk. Any of these sites is a completely prepared land plot with all the required infrastructure and utilities: power supply, gas supply, water supply, and treatment facilities. In the industrial parks there are projects implemented by such companies as Lafarge, Nestle, Continental, Fuyao Glass, Samsung, L,Oreal, General Electric, Magna, etc. ó a total of 89 projects.

Logistics

In Kaluga Region a special attention is paid to formation of modern transport and logistical infrastructure. The region has a number of advantages for development of the cluster. First, the region is situated near Moscow and important main railway lines pass through the regionís territory: Moscow ó Kiev, Donbass ó Saint-Petersburg, Syzran ó Vyazma, and Michurinsk ó Smolensk. Two biggest federal highways (Moscow ó Brest, Moscow ó Kiev) cross the territory of the region, which are used for transit connection of Moscow to Ukraine, Moldavia, Romania, Bulgaria, and Hungary. The region is in top twenty regions of the country in the density of railways and highways.

Second, the region cooperates with the biggest logistical operators: GEFCO, Green Logistics, Rhenus Logistics, Trans-Container, etc.

Third, the region has a clear strategy for a further development of the cluster. Multimodal transport and logistical terminals and customs warehouse complexes are being built and highway, railway, and airport infrastructure is being developed. Projects unique on a national scale are being implemented in the region.

Freight Village Vorsino is a large-scale federal multimodal logistical center providing integrated transport-forwarding and support services.

Freight Village Rosva is an interregional transport and logistical center, which is created and works in order to optimise the logistical operations of residents of Kaluga Regionís industrial parks Grabtsevo, Rosva, Kaluga-South, and servicing other participants of foreign economic activity.

Yermolino International Airport. The airport is a part of Freight Village Vorsino and is located in direct vicinity to the border of New Moscow 95 km from the center of Moscow and 91 km from Kaluga. Besides the organisation of low-cost transportation, the airport is to become a big cargo handling center.

Kaluga International Airport. The airport is located in direct vicinity to Grabtsevo Industrial Park 8 km from Kaluga.

Freight Village Vorsino video

Advantages for business

Unique location in the center of the largest sales market in the Russian Federation.

Kaluga Region is situated in the heart of Russia, in the center of a huge consumer market, at the intersection of transport routes connecting Russia to all countries of the world. Kaluga Region shares borders with Moscow City, Tula, Bryansk, Smolensk, and Orel Regions. The vicinity to the capital as a main market for the goods and transport corridor is one of the regionís competitive advantages.

High quality transport and logistical infrastructure.

Five federal highways cross the territory of the region. The length of railways is almost 900 km. Unique projects are being implemented in the format of transport and logistical cluster. Two multimodal transport and logistical centers provide their services: Freight Village Vorsino and Freight Village Rosva. The region cooperates with the biggest logistical operators. Kaluga International Airport was opened in 2015. Yermolino Airport is being reconstructed now. Due to its notable transit capacity, the region is becoming a key logistical center of the entire Central Federal District.

A wide choice of sites for location

The main product, which the region offers to investors, is the location of production enterprises in 10 industrial parks and any of the two sites of Special Economic Zone. Any of these sites is a prepared land plot with all utilities, engineering and transport infrastructure. An investor may either buy or lease a site. 89 companies from all over the world implement their projects in the industrial parks and the Special Economic Zone. The region is ready to offer absolutely different sites selected individually for each investor.

Capability to interact with the existing enterprises of the region

The economy of Kaluga Region is based on high technology industries. The region manufactures turbine generators, gas turbine engines, railway equipment, radio electronic equipment, optical equipment, and other goods. Kaluga Region develops its new economy in an integrated manner based on a cluster model. The traditional enterprises integrate with investment companies quite actively. The region has formed a pool of enterprises ready for cooperation with foreign companies. There is already a number of examples of successful cooperation. Local products, including that by small companies, conform to the international quality standards.

Progressive regional administration team

The main rule for interaction of the regionís government with investors is an individual approach to each project. The people of Kaluga strive to work in such a manner that any investor investing at least a dollar, yuan, or euro in the regionís economy will never regret it. In Kaluga Region there are Development Institutes founded for support of investment projects. These are Regional Development Agency providing consulting services to investors free of charge and Regional Development Corporation rendering development services.

The regionís residence attractiveness

Kaluga Region tries to provide such living conditions, which attract people to the region and make them not only work but also live here. The region is rich in historical, cultural, and natural monuments. Modern residential complexes, roads, hotels, sport, trade, and entertainment centers are built in the region. However, commercial real estate, service infrastructure including hotels and restaurants, projects in the field of power and resource saving, tourism, education, and logistics need to be developed actively and the region also invites investors to these areas.

High quality and availability of labor resources

Education is the biggest expense item of the regional budget. The region has spent 1 billion rubles only for creation of a Training Center of Automobile Industry Specialists. Such centers have been created for the needs of pharmaceutical enterprises, construction industry, and machine building. Kaluga Region uses the resources of internal and external migration to saturate the regional labor market. More than 20 million people live within a radius of 180 km from Kaluga. It provides additional opportunities for attraction of labor resources. Cooperation agreements have been concluded with already 33 regions of Russia.

Tax and customs preferences

The regionís legislative and regulatory environment guarantees the security of capital investments. In Kaluga Region all administrative barriers have been removed and procedures for business registration, obtaining of licenses, permits and approvals have been simplified as much as possible. The system of tax exemptions and customs preferences is available to any investor regardless of its country of origin and business sectorial affiliation. It includes a package of preferences for income tax and the more money is invested to the region, the more preferences are granted to the investor. Maximum preferences are provided to the residents of the Special Economic Zone.