Governor Yurevitch makes presentation on Chelyabinsk Region

19 November 2010 (09:31)

Chelyabinsk Region keeps increasing its trade turnover with the U.S. in the aftermath of the recession and is interested in expanding the area of their cooperation, region’s Governor Mikhail Yurevitch said during his presentation on the region’s investment potential to America’s major businesses in Moscow. The presentation was organized on the premises of Chelyabinsk Region’s permanent representation under the Russian Federation Government, the Governor’s press service explained.

According to Governor Yurevitch, Chelyabinsk Region is involved in trade with 120 different countries; for one, its turnover with the United States in January-June 2010 amounted to twice as much as the turnover figures for a year earlier. However, the U.S. share in the region’s total foreign trade turnover only comes to 0.8% at the moment. Still, Yurevitch said, the region was interested in both applying the American technologies in its processing industries and exporting the regional goods across the Atlantic.

The Governor observed that Chelyabinsk Region is now Russia’s 5th largest foreign investment target, 6th largest manufacturer in terms of industrial production, and 10th largest developer in terms of capital construction. Moody's Interfax recently affirmed the region’s long-term credit rating at Аа

‘This is a good reputational indicator,’ he said.

Yurevitch also noted that his region produces 27% of Russia’s rolled products and steel and nearly 12% of the country’s steel pipes. These goods have already earned an international reputation. What is more, the region could also boast a sprawling food industry, with food manufacturers topping the list of companies involved in the export/import transactions with the U.S.

The Governor then said the South Urals are the object of investments from thirty different countries thanks to the regional legislation and the local government’s support.

‘We are willing to provide subsidies for infrastructure development on a particular land allotment when something gets built from scratch. Besides, our investors only need to see one clerk to get their applications processed as quickly as possible. Finally, the government has signed special agreements with most of the natural monopolies in the field of transportation and in the energy sector,’ Yurevitch explained.

He added that the region also compensates the investors for the interest they have to pay on their investment loans and leasing payments, while Chelyabinsk Region Ministry for Economic Development’s website provides a list of available land allotments with the infrastructure necessary for project development.

The official suggested setting up joint ventures and industrial enterprises and attracting the U.S. investment in Chelyabinsk Region’s agribusiness. For one, forage for the poultry and cattle-breeding industries could be produced, America’s equipment could be used for processing meat, poultry, and vegetables, and bio-fuel could be made. In this respect, the region would be particularly interested in such companies as Gargill, ADM, Tyson Foods, and Smithfield Foods.

It would also be great if the American technologies could be employed in the water-treatment and water-purification industries with the help of General Electric and Dow.

‘We are quite interested in the technologies involved in the industrial production of automation systems, power machinery, engineering and infrastructure-maintaining equipment, and consumer goods. We are willing to consider setting up Ford’s car parts factory in Russia as well,’ the Governor said.

Mikhail Yurevitch feels Chelyabinsk Region is also always eager to consider increasing the amount of ferrous and non-ferrous metallurgical enterprises and machine-building and flour-making companies’ exported produce. Finally, the South Urals are hoping for some invitations to organize trade fairs with steel gravures and ornamental, custom-made weaponry from Zlatoust and artistic foundry produce and casts from Kasli in the U.S.

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