Vitaly Kushnaryov: “Our Task Is To Create Comfortable Investment Environment”

Vitaly Kushnaryov: “Our Task Is To Create Comfortable Investment Environment”

The meeting of the Investment Council under the Head of the City administration was held in the congress hall of the DSTU. The agenda issues related to the implementation of investment projects in the Sovetsky district of the city. A separate topic of the meeting was the investment in industry and placement of production facilities in the southern capital.

“We continue to formulate a list of investment projects in Rostov. Today, the City Administration accompanies 96 projects for a total of RUB 286.2 billion,” said the Head of the City Administration Vitaly Kushnaryov in opening the meeting.

The mayor recalled that the List is divided into three groups, each of which includes city projects:

- Rostov Avangard – 19 projects included in the list of 100 Governor’s Investment Projects for the amount of RUB 165.7 billion;

- ROSTOV Investment – 62 projects implemented in the city of Rostov-on-Don for the amount of RUB 73.5 billion;

- Territory of GROWTH – 15 projects, as well as business ideas and projects planned for implementation amounting to RUB 47 billion.

- Each project included in the List is of great importance for the city. We are ready to assist in the accompaniment and implementation of investment projects in deed and not in name.

The members of the Council then went on to discuss the agenda issues. The investment climate in the Sovetsky district was presented by the head of the district administration Oleg Svistunov.

According to Rostovstat data for 2016, enterprises of the Sovetsky district of the city of Rostov-on-Don received RUB 7 billion of investment. We are the fourth district in the city,” said Oleg Svistunov.

To date, the list of investment projects in Rostov-on-Don includes 9 investment projects worth RUB 33.9 billion, which are being implemented and planned for implementation in the Sovetsky area.

The largest of them are three projects totaling RUB 23.3 billion, which are included in the 100 Governor’s Investment Projects.

This is the construction of the 5th and 6th microdistricts of the Leventsovsky Residential Area in the amount of RUB 23 billion. Investors are JSC PATRIOT-Development and CJSC Patriot. The head of Rostov Sovetsky district administration noted that the commissioning of microdistricts scheduled for 2022 would create an additional 450 workplaces. At the moment, the second phase of construction of a residential area is being conducted, in particular, the construction of the 5th and 6th microdistricts.

The meeting of the Investment Council under the Head of the City administration

Also, they discussed the implementation of investment projects for the upgrade of existing printing equipment of Grafobal-Don, LLC and reconstruction of CJSC Empils production site. In the first case, the enterprise annually invests in technological equipment and development.

The need for investment and upgrade of production assets is associated with a constant raise in the customers’ requirements for the quality and appearance of the packaging, which is the main domain of Grafobal. According to the investor, more than RUB 250 million is planned for 2017 for the purchase of new equipment, the main one of which is an 8-color offset printing machine and a die cutting machine.

As for the paint and varnish production enterprise Empils, this is about a project to increase the production capacity. Note that during 2016-2019 the company has been building a complex for the production of semi-finished varnishes and resins with a capacity of 30,000 tons of products per year. The launch of the first stage (the actual production complex) is planned for September 2017. The commissioning of the second and third stages (a tank farm and a loading and unloading overpass) is scheduled for 2018-2019. Currently, the company uses the existing equipment for the production of semi-finished varnishes and resins. The planned investment in the project is RUB 496 million.

Both projects are implemented in accordance with the declared schedule.

During the meeting, a project for the construction of a fitness center for mini-football was included in the city List. The initiator of the investment project is Art-Story Project, LLC. The chief engineer of the company Andrei Tskhayev said that the project involves the construction of the hangar-type sports and fitness complex for mini-football on 348 Stachki Avenue. The hangar part of the building will have a covered universal playground, and the built-in two-story building will accommodate the main (sports, versatile and training halls), auxiliary (lobby, wardrobe, showers) and administrative and accommodation rooms. Terms of the project are 2017 – 2nd quarter of 2018. The scope of investments is RUB 20 million. At the moment, all the necessary permits have been obtained to begin construction.

Another important issue of the meeting is investing in industry and placing new production facilities in Rostov-on-Don. The Director of the City Economy Department Svetlana Kambulova told about the analysis of the specific structure of investment in fixed assets for 2016, which showed that the main part of investments is directed to:

- Purchase of machinery and equipment – 35.9%;

- Construction of buildings and structures – 29.4%;

- Acquisition of vehicles – 15.7%;

- Housing construction – 11.2%.

- Two years of our work show that investors that make investments in the construction of new facilities, who need accompaniment and assistance in the allocation of the land plot, obtaining specifications, connection to the engineering infrastructure and obtaining a permit for construction or reconstruction are willing to enter the List. Projects where investments are made to upgrade existing production and purchase new equipment do not require assistance. We include such projects in the List in order to make it easier to form the forecasted indicators of investments in fixed assets. However, today we must focus not only on housing and social infrastructure facilities construction, but also on investing in production,” emphasized Svetlana Kambulova.

Summarizing the meeting, Vitaly Kushnaryov drew attention to the fact that the priority direction of the City Administration’s work is to create a comfortable investment environment. In addition, the mayor set the task to take prompt measures to address each investor appeal.