The Outcomes of the Fourth Regional Social and Economic Forum “Territory of Development” Have Been Presented in the Smolensk Region

The forum is aimed at facilitating a productive dialogue of the authorities, society and business community in order to join collaborative efforts and develop economic potential of the region. The forum united more than 500 people, including large enterprises, representatives of federal and regional authorities, leaders of major business communities and social organizations, who participated in the event. Svetlana Chupsheva, CEO of the Agency for Strategic Initiatives to Promote New Projects, and Elena Dybova, Vice-President of the Chamber of Commerce and Industry of the Russian Federation, attended the forum as special guests.

The key event of the first day of the forum became a plenary session on Developing Investment and Business Environment of the Smolensk Region: Achievements, Challenges, Prospects.

According to the region’s chief executive, the total amount of investments into the region’s economy will exceed 60 billion rubles by the end of the year, where 85% are made up by private investments (which recorded a 3% growth).

Alexey Ostrovsky laid special emphasis on increasing the purchase amount from small enterprises by nearly 2 billion rubles compared to last year. Today over 55% of purchases in the Smolensk Region are made from small and medium-sized business entities, which exceed applicable statutory requirements in Russia by 40%.

The Governor reported on 30 large investment projects currently implemented in the region, which financing exceeds 40 billion rubles, and which will facilitate creation of more than 8,000 new jobs. “In the first quarter of the next year we expect to complete construction of engineering infrastructure in the Phoenix State Industrial Park to have it fully operational, and then we will continue the same strategy with the industrial park in Safonovo. A number of residents have already started project works,” commented Alexey Ostrovsky.

The head of the region presented a large-scale project called Smolensk Region Is a Place Offering Great Opportunities, which is aimed at fulfilling the region’s potential in social, cultural, scientific and economic development. “The project will pool available administrative, scientific, financial and other resources in order to achieve high-quality results,” pointed out Alexey Ostrovsky.

A number of investment agreements have been signed by Alexey Ostrovsky during the Territory of Development forum.

In particular, it is expected to establish a special economic zone at Alfa Trans customs and logistics center in the near future, which is going to become the first similar zone in the Smolensk Region. The total investments in the project will amount to nearly 3 billion rubles.

Technoavia will build a new garment sewing workshop in the Pochinok District. Construction is expected to be complete in 2020, the total amount of investments will be about 300 million rubles, 100 additional new jobs will be created.

An agreement aimed to modernize the enterprise dealing with powdered milk production has been signed in Gagarin. A new production line will increase the amount of milk powder produced to reach 1.5 tons a day. This project will create 45 additional new jobs, the total amount of investments is expected to be as large as 470 million rubles.

A number of investment projects will be implemented in the region related to creating eco-resorts such as Vazuza Country Club and Ekaterinki. The regional government believe that these projects will contribute to increasing the number of tourist infrastructure facilities within the region, as well as to promoting domestic and inbound tourism.

“I believe the Smolensk Region has a huge investment potential. Over the last few years we have seen dramatic changes in building investor relations, both with the foreign investors, which are supported through an effective infrastructure created therefor, and with the representatives of small and medium-sized businesses, whose enterprises are actively operating in the region. The undoubted achievements of the region include practices aimed to simplify procedures for obtaining a construction permit and to reduce the time of providing this service This practice is included into the Federal Project Bank. Today it is successfully used by other regions of the Russian Federation,” stated Svetlana Chupsheva.