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Contents section I. The city of great opportunities!


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CONTENTS



Section I. The city of great opportunities!




General information about the city

3

Transport

4

Scientific and educational potential

5

Section II. Economic potential




Economy

8

Industry

10

Consumer market

12

Section III. International relations

14

Section IV. Tourist potential

16

Section V. Investment activities




Investments

19

Legal regulation of investment activity

22

Large investment projects realized in Nizhny Novgorod

24

Section VI. Offers to investors




Projects for co-investment

28

Contact information

32


I. The city of great opportunities!
General information about the city
Nizhny Novgorod was founded in 1221. The city has a favourable geographical position. It is located near the geometric centre of the East European Plain on the confluence of two rivers: the Volga and the Oka. The important competitive advantage of the geographical position of Nizhny Novgorod is its maximum proximity among the Russian million-plus cities to Moscow (439 km). Owing to this fact the city traditionally functions as a link between the capital region and the Volga region, and through the Volga region – with the Urals, Siberia, the Far East, the countries of Central Asia. Nizhny Novgorod is one of the largest transport hubs in Russia.

Nizhny Novgorod plays an important role in social and economic development of the Russian Federation. It is the fifth city in the country according to population size, the major scientific and industrial, business, cultural and spiritual centre of the country. The area of the city is 46,652 hectares, which is comparable with the territories of Malta and Andorra.

In 2004 Nizhny Novgorod as a municipality got the status of urban district. It is the centre of the Volga Federal District; the administrative centre of the Nizhny Novgorod Region; the centre of the Volga-Vyatka economic region, and also the centre of the urban agglomeration of the Nizhny Novgorod Region with a population over 2 million people, which is one of the five largest urban agglomerations in the country. Within 500 km from Nizhny Novgorod there live about 43 million people (24 million of which live in the cities with a population more than 100 thousand people), and within 1000 km – there are more than 84 million people. Extensive consumer market and close relationships with major Russian agglomerations create favourable conditions for development of large distribution centres in Nizhny Novgorod.


The territory of Nizhny Novgorod is divided by the river Oka into two parts – the upper part and the lower part. The historical and cultural centre of Nizhny Novgorod is located in the upper part. Business centre of Nizhny Novgorod develops is also situated in its historical centre. However, more than 71% of the population lives in the lower part, where the large industrial and logistics facilities are dominated.


Transport
Nizhny Novgorod is located at the intersection of major railways and highways, included in the two trans-European corridors: «North – South» and «East – West», originating in Scandinavia and Germany, and it is one of the largest transportation hubs in Russia.

The international Airport "Nizhny Novgorod" provides service for domestic and international flights; the Lufthansa airline offers convenient connections with European countries, North and South America without transfer in Moscow.



The head office of the Gorky Railway is located in Nizhny Novgorod and it is the most effective subsidiary of national JSC "Russian Railways". Gorky railway connects Central, North-Western and Northern regions of Russia with the Volga region, the Urals and Siberia. The Gorky-Moscow station is the biggest station of reception and departure of passengers.




Automobile routes of regional and federal significance pass through Nizhny Novgorod. The density of the road network exceeds the average Russian indicator in 2 times.

There is the centre of the Volga River Joint Shipping Company in the city; it is the oldest shipping company of Russia. Today JSC «Shipping Company «Volga Shipping Company» is the fourth largest shipping companies in the country.

The city has an extensive network of domestic passenger traffic. 110.3 million passengers used buses transport and the passengers of electric transport amounted to 102.3 million in 2013.

The subway system of Nizhny Novgorod consists of 14 stations and it is the third in Russia and the largest in the Volga region. 45.5 million passengers used Nizhny Novgorod subway in 2013.

Scientific and educational potential
Nizhny Novgorod is one of the biggest scientific and educational centres in Russia. It has large human and intellectual capacity. The city has a developed system of secondary and higher educational institutions and research institutes.


21 higher and 34 specialized secondary public educational institutions, 15 private higher and secondary specialized educational institutions provide trainings of highly qualified specialists. Two higher educational institutions have the status of National Research University. They are Federal State Budget Educational Institution of Higher Education “Nizhny Novgorod State University named after N. I. Lobachevsky” and Nizhny Novgorod Branch of Federal State Autonomous Educational Institution of Higher Education “The Higher School of Economics”.

Development of economy imposes new requirements to specialists and working staff training structure and quality. 38 professional educational organizations prepare specialists with secondary vocational education in Nizhny Novgorod. In 2013 4698 people received the secondary vocational education within the training programs for qualified workers (employees), and 9061 people got secondary vocational education within the training programs for mid-career professionals.

To prepare highly skilled working staff for various branches of economy the resource centres of professional education are opened in Nizhny Novgorod, their activity consists in providing access to information, material and technical, scientific and methodical, teaching and laboratory resources in order to achieve the highest practical educational outcomes. Today resource centres carry out trainings of the high level qualified experts in machine-building, nuclear industry, electronics and other branches of economy.

Nizhny Novgorod is one of the biggest research centres in Russia. There are 107 scientific research institutes in the city.

Nizhny Novgorod is known worldwide as a centre of radio physics, electronics and radio engineering, combining specialized educational and research institutions and industrial enterprises. There are also High School of General and Applied Physics and Department of Radio Physics in Nizhny Novgorod State University named after N.I.Lobachevsky, the Institute of Radio Engineering and Information Technology and the Institute of Nuclear Energy and Technical Physics in Nizhny Novgorod State Technical University named after R.E.Alekseev, Federal State Scientific Institution “Scientific Research Institute of Radio Physics”, Radio Engineering College. The large research and production enterprises producing modern radio-locating equipment are JSC "Federal Research and Production Centre "Nizhny Novgorod Research Institute of Radio" and JSC "Nizhny Novgorod TV Plant named after V.I Lenin ". The enterprises of State Nuclear Energy Corporation "Rosatom", implementing projects in Russia and other countries, are also situated in the city. Among them we can distinguish the Federal State Unitary Enterprise “Federal Research and Production Centre “Scientific Research Institute of Measuring Systems named after Y.E.Sedakov", incorporated company JSC “Nizhny Novgorod Engineering Company “Atomenergoproekt" and JSC "Experimental Design Bureau of Machine Building named after I.I. Afrikantov ".

There are researches in plasma physics and SHF electronics, laser physics, nonlinear acoustics, hydrodynamics, radio astronomy, organometallic chemistry, preparation and analysis of high-purity chemicals. Studies on terrestrial electricity, solid nanostructures, high-temperature superconductors, microbiology, high-tech medicine and many others are carried out in Nizhny Novgorod.

Nizhny Novgorod is one of the centres of Russian information technology. This area is represented by such companies as Intel (the largest development centre in Europe), the competence and development centre SAP, Mail.ru, Yandex, Huawei, NetCracker, Orange Business Services, MERA Networks, MFI Soft (ALOE Systems), Teleca Russia and other smaller companies (Auriga, Exigen Services, Tecom, Devetel, Capvidia, Five9, Datanaut, NKT, SoftDrom etc.).



The unique scientific and technological base of enterprises and powerful educational system made Nizhny Novgorod one of innovative potential leaders.

In order to support business start-ups who implement innovative projects, Nizhny Novgorod Region Government established an innovation oriented business incubator «Clever» which successfully works in the city.



II. Economic potential
Economy
The economy of Nizhny Novgorod represents a diversified complex where basic and supporting branches are balanced. Such diversification provides stability of Nizhny Novgorod economy and a wide range of opportunities for its development.
First of all basic branches include manufacturing activities. In 2013 the volume of shipped goods and services of all the Nizhny Novgorod companies made up 723.3 billion rubbles. 35,8% of all shipping volume represented manufacturing activities, transport and communication - 23,8%, gas, water and electricity production and distribution - 8,5%, construction - 7,5% and wholesale and retail trade – 6,9%, other sectors – 17,5%.
Structure of the volume of shipped goods in 2013

For quite a long period of time Nizhny Novgorod economy is based on manufacturing activities. 45.2% of shipped goods is represented by vehicles and equipment production.
Structure of the shipped products volume

of Nizhny Novgorod manufacturing companies in 2013



Industry

In the Russian market many Nizhny Novgorod enterprises are the largest and the only producers (suppliers) in the fields of their activity and serious players in the international market. Thus, Ltd. «MK «GAZ Group» is the leading producer of light commercial vehicles (about 50% of the Russian market in 2012) for small and medium business, medium trucks, components for automobile industry and various spheres of economy.

The plant produces light commercial vehicles «GAZel» and «Sobol», medium trucks «Valday» and GAZ, off-road cars «Sadko» and «Vepr», and also auto components (PowerTrain systems, control systems, body elements, equipment, and details of forge production, iron and nonferrous casting).

Ltd. «Managing Company «GAZ Group» conducts continuous work on producing own advanced development. So, in 2013 the enterprise began production of light commercial vehicle of the new generation GAZelle NEXT., which brought the company to Russian and foreign markets.

GAZ Group is cooperating with the leaders of the global automotive industry, like Volkswagen, General Motors and Daimler, in production of passenger cars Škoda Octavia, Škoda Yeti, Volkswagen Jetta, Chevrolet Aveo and commercial vehicles Mercedes-Benz Sprinter on the plant production facilities.

There were opened joint ventures with the European producers of auto components – companies Bosal and Bulten. Joint projects with leading international car producers allowed to renovate over 200 000 square meters of production facilities and logistic areas, and establish a new training center for training the employees in the best practices and standards used in the global automotive sector.

The Nizhny Novgorod aircraft plant «Sokol» is well known in the field of aircraft industry. The plant produces fighters «MiG», multi-purpose combat-capable trainer aircraft of Air Forces and light civil planes.

JSC «Hydromash» keeps leading positions in production of landing gears for planes (80% of all aircraft factories requirements) and helicopters (100% of all requirements) in Russia.




The company is involved in development and production of landing gears and hydraulic units for almost all new Russian aircrafts, including the fifth-generation fighter Т-50, new passenger aircraft МС-21, multipurpose helicopter Ка-62. JSC «Hydromash» is integrated into world aircraft industry and cooperates with leading aviation producers from Germany, Italy and France. It delivers equipment for such planes as «Airbus», «Embraer», «Global Express», helicopter «Agusta». The plant is the only supplier of titanic blocks for a managing system of plane spoilers for «Airbus» А380 in Russia, it continues participation in perspective international projects - «Airbus» А350XWB and "Bombardier C-series".

About 85% of all planes of the Russian Federation and CIS countries are equipped with products of JSC «GZAS of A.S.Popov» (Gorky Plant of Equipment and Communications). The enterprise carries out production, maintenance, repair and modernization of aviation and land radio stations of MF and HF ranges, aviation modules of radio communication complexes, plane intercoms and speech notification equipment.

One of the largest Russian enterprises producing and developing ships is the plant «Krasnoe Sormovo», which specializes on construction of dry-cargo ships and tankers.



Nizhny Novgorod shipbuilding industry is also represented by hydrofoils, speedboats and hovercraft. This technology is developed and implemented in “The Central Constructional Bureau on Hydrofoils Named after Alekseev”.

JSC «Nizhpharm» is the third pharmaceutical enterprise in Russia, one of the leading medicine producers in CIS and Baltic countries. JSC «Nizhpharm» is a part of STADA CIS (Russian holding company forming a part of STADA Arzneimittel AG international group that united leading companies of domestic pharmaceutical market - JSC «Nizhpharm», LLC «MAKIZ-FARMA» and LLC «Hemofarm». JSC «Nizhpharm» is the modern complex situated on 11,5 thousand square metres in Nizhny Novgorod producing ointments, creams, suppositories, liniment, tablets.
Medicines are produced on modern high-technology equipment from high-quality raw materials on the basis of the latest technologies. In addition to development of generic medications specialists of this holding company together with the leading research-and-development centres of Russia and CIS countries are occupied with clinical trials and innovative medicinal products development in the most important therapeutic areas of medicine.

Other largest Nizhny Novgorod enterprises: JSC “Nizhny Novgorod Machine Building Plant”, JSC “Nizhny Novgorod Television Plant”, JSC “Nizhny Novgorod Scientific and Research Institute of Radio Techniques”, federal state unitary enterprise “Nizhny Novgorod Scientific and Research Institute of Measuring Systems named after U.E.Sedakov”, JSC "Afrikantov Experimental Design Bureau for Mechanical Engineering", JSC “RUMO”, JSC “Normal”, JSC «Krasnuy Jakor», JSC “Nizhny Novgorod Mayonnaise and Fats Company”, JSC «Sormovo Sweets Plant» and others. Economic contacts are established between Nizhny Novgorod industrial enterprises and more than 100 foreign countries.


Consumer market
Nizhny Novgorod trade sector is characterized by positive dynamics and high rates of consumer market infrastructure development. In the city in the beginning of 2013 there were 3 187 permanent retail trade enterprises (total area – 1 147.4 thousand square metres), 12 retail markets (providing 9 thousand workplaces), 2 582 objects of a temporary retail trade.

There are changes in the sphere of trade. The share of small wholesale and small retail trade in the markets is decreasing, but the share of permanent distribution networks, specialized shops is growing. New trade companies with progressive selling forms are opened.

Now there are more than 80 large objects of trade facilities in the city, including:


  • 7 shopping and entertainment mall with modern forms and methods of trade and a wide range of additional services (“Fantastika”, “Shokolad”, “Indigo life”, “Zolotaya Milya”,

“Sedmoe Nebo”, “Rio”, “Riviera”. Their total area is more than 440.0 thousand square metres, trade area – 300.0 thousand square metres);



  • more than 15 supermarkets. (“Karusel”, “Metro”, “Lenta”, “Aushan”, “ОК”, “Supermarket NASH”, and also network of construction and finishing materials supermarkets (“OBI”, “Castorama” and “Maxidom”). Their trade area is over 150 thousand square metres;

  • over 30 shopping centres, trade area is more than 127 thousand square metres (the largest of them: “Respublika”, “Etazhi”, “Novaya era”, “Lobachevskiy Plaza”, “Muravey”, “Ganza”, “Bum”, “Otkritui materik”, “Mebelniy bazaar”);

  • over 290 supermarkets and 140 specialized food shops and 1780 other shops.

In the beginning of 2013 the total area of trade facilities was 908 square metres per 1 000 inhabitants (the minimal norm is 704 square metres per 1 000 inhabitants according to the local legislation).

Among 12 million-plus cities Nizhny Novgorod occupies the 5th place according to the amount of trade centres.


Total area of trade facilities in the largest Russian cities

(square metres per 1000 inhabitants)


500

450


400

350


300

250


200

150


100

50

0





Saint Petersburg

Rostov –

on-Don


Samara

Yekaterinburg

Nizhny Novgorod

Kazan

Omsk

Moscow

Ufa

Novosibirsk

Chelyabinsk

Volgograd



IIII. International Relations
Nizhny Novgorod City Administration pays special attention to development of international and foreign economic relations. The most important aspects are foreign investors’ attraction, assistance in establishment direct business contacts between Nizhny Novgorod and foreign enterprises, forming attractive image of Nizhny Novgorod abroad.

The City Administration pursues active policy of establishment sister-cities and partners relations with the cities from different countries. Nizhny Novgorod sister-cities are Essen (Germany), Jinan (China), Philadelphia (USA), Tampere (Finland), Kharkov (Ukraine), Minsk (Belarus), Suwon (South Korea), Linz (Austria), Novi Sad (Serbia), Sant Boi (Spain), Matanzas (Cuba), Gyor (Hungary). Every year together with its sister-cities and partner-cities Nizhny Novgorod holds a number of activities and participates in international forums, exhibitions, business missions, B2B meetings and negotiations with foreign partners. Within sister-cities relations there are realized a variety of interesting projects in all the spheres of life: culture and sports, youth and social policy, school and academic exchanges, innovative and scientific and technology cooperation.


Since 2012 the International Business Summit is annually held in Nizhny Novgorod. Its results show the growing interest of foreign partners in strengthening direct business contacts and implementation of joint, mutually beneficial projects. The Nizhny Novgorod Summit has already turned into a demanded discussion platform for constructive dialogues between the government and business community, become for all its participants a source of new ideas, a place for perspective negotiations and signing large contracts.
Special emphasis in development of Nizhny Novgorod international relations is made on creating attractive city image as a reliable partner with a great economic, scientific, educational and cultural potential. Nizhny Novgorod presentations are regularly held in foreign embassies in the Russian Federation as well as in the sister-cities and partner-cities. There was developed and regularly updated multimedia city presentation, multimedia catalogue “Nizhny Novgorod is your partner” and other informative materials. New versions of official city administration website are made in different languages. Currently Nizhny Novgorod is the only Russian city that has five language versions of official city administration website (Russian, English, German, Spanish and French).

Large industrial, scientific and research, educational Nizhny Novgorod potential, its favourable geographic position and investment climate, developed transport infrastructure and capacious consumer market contribute to increase the number of international companies that successfully work in the city and region.

Different national and cultural centres are opened in Nizhny Novgorod. They are Japanese, French, German, Czech, Spanish, American, Turkish and Serbian centres, Austrian and Italian libraries. Alliance Français and regional centre of the French language actively work in the city as well as the Society of Ingrian Finns and Korean national and cultural autonomy.

In Nizhny Novgorod there are presented the Honorary Consulates of the following countries: the Republic of Austria, Hungary, the Democratic People’s Republic of Korea, the Kingdom of Sweden, the Republic of Abkhazia, the Republic of Slovenia, and the French Republic. Besides there is a Department of the Embassy of the Republic of Belarus to the Russian Federation.

Nizhny Novgorod is an actively developing city, opened for expansion of international contacts in all the spheres. In the city there were created favourable conditions for investors. These results are proved by stable growth rate of investments in all the industrial sectors, finances and trade as well as by high ratings of international auditor agencies. Nizhny Novgorod City Administration is ready to welcome foreign partners that participate in existing projects and city development programs as well as investors willing to implement their own projects.

The policy pursued by Nizhny Novgorod City Administration in the field of foreign economy promotes attraction of foreign investments. During the period 2010-2013 the volume of foreign investments to the city economy has increased by 8,8 times. In 2013 the volume of foreign investments to the city economy made up 468 million USD. The largest share in total investments from abroad provided by the following countries: Germany (64.7%), Belarus (9.7%), Sweden (4.8%), Czech Republic (4.6%), Belgium (3.2%), Luxembourg (3.1%), Cyprus (2.9%), the Netherlands (2.9%) and France (1.1%).

The largest volume of foreign investments in 2013 was in manufacturing activities – 370.8 million USD (79.2%) including the following sectors: “chemistry” -26.9% or 277.2 million USD, “production of vehicles and equipment” – 8.0% or 32.3 million USD, “production of rubber and plastic goods” – 14.5% or 54.1 million USD. Besides there were foreign investments in the sphere of “wholesale and retail sale” – 50.4 million USD (10.8%), “transport and communications” – 25.7 million USD (5.5%), “real estate activities” – 5.9 million USD (1.3%).

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