8 REASONS TO CHOOSE ASTRAKHAN REGION

1. Advantageous geographic location of Astrakhan region

Astrakhan is situated in the lower Volga river region and has direct access to the Caspian Sea. The region accesses the Azov and Black Seas and further the global ocean through the Volga-Don canal. It borders Kazakhstan by land and Azerbaijan, Iran, Kazakhstan and Turkmenistan by sea.

Astrakhan region is located at the intersection of two dynamically evolving International transport routes: International North-South Transport Corridor (INSTC), which bounds for Iran, India and Persian Gulf states and the West-East Transport Route, which bounds for Kazakhstan, Middle Asia and China.

2. Astrakhan - a robust transport and logistics hub

A huge advantage of the region is intermodal cargo shipments allowing for a combination of all available transportation means: sea, river, rail, automobile and air.

Astrakhan’s port facilities including Olya Maritime Commercial Port, account for all-type cargo processing, including container shipments, grain and petrochemicals transportation.

Astrakhan is linked to other Russian regions as well as Kazakhstan, Middle Asia and Caucasus by rail. The E40 International Motor-Road as well as the P-22 and P-215 Federal Motorways run through the region. Astrakhan International Airport has the capacity to admit all-type aircrafts with no limitations.

3.  Astrakhan as the focal point for the hydrocarbons and ship-building clusters of the Caspian Sea Region

Hydrocarbons extraction in the Caspian Sea with proven reserves cumulatively ranking 3rd of all the world’s reserves is in the strategic interest not only for the Caspian states. Abundance of oil and gas deposits buttresses the growing demand for drilling platforms, tankers, service and support vessels.

Ship-building traditions in Astrakhan boast a long history. The region’s indisputable ad-vantage before all other Russian competitors is in delivery deadlines for technical vessels and hydrocarbons fleet for the Caspian deposits.

Presently Russia’s facing a daunting task of renovating its river and fishing fleet. In several years approximately 90% of river and transport units will be discarded due to depreciation. The Caspian fleet in this regard appears to be one of the most depreciated. 

It should be noted that domestic localization for hull equipment manufacturing in Russia is also gaining momentum as presently over 70% of all the hardware for the Russian vessels is purchased overseas. All these factors combined justify the strong long-term demand for shipbuilding products and components as well as related productions.

4. Astrakhan - a pivotal hub for Russia’s business and political activities in the Caspian Sea Region

Close good-neighbourly ties with all the Caspian states (Azerbaijan, Iran, Kazakhstan and Turkmenistan) have indispensably contributed to implementing a series of major infrastructural, social and economic projects in Astrakhan. Astrakhan’s ever-growing prestige in bolstering Russia’s interaction with the Caspian states has been acknowledged by the Fourth Caspian Summit held in Astrakhan in the autumn of 2014 attended by the presidents of the five Caspian States.

Nowadays there are Consulates of Iran, Kazakhstan and Turkmenistan in Astrakhan. Honorary Consul of the Slovak Rebublic and Honorary Consul General of the Republic of India are operating in Astrakhan. Astrakhan region is seen by the Caspian Sea neighbours as a window to Russia. Astrakhan City can be truly referred to as the Russia’s Caspian capital.

5. Astrakhan - an access point to the markets of the Caspian states and Eurasian Economic Union

Launching business activities in Astrakhan an investor is granted access to the vast Russian market as well as perspective markets of other Caspian states with the overall population of over 100 million people, a slap-up advantage already taken by a number of foreign companies.

Kazakhstan, being Astrakhan’s nearest geographic neighbour, is like Russia a member of Eurasian Economic Union. This sets preconditions for the goods manufactured in Astrakhan to access the ever-expanding Kazakhstan market with no customs duties to be paid as well as other markets of Eurasian Economic Union – Armenia, Belarus and Kyrgyzstan. The Union’s overall population exceeds 180 million people and significantly more countries are expected to join the Union in the nearest future.

6. Success stories for foreign businesses in Astrakhan

There are over 500 foreign companies operating in Astrakhan region from nearly 50 countries including world famous Schlumberger, Saipem, Bumi Armada, Dragon Oil, Knauf and lots more. These corporations have chosen Astrakhan as a foundation for long-term projects in extracting hydrocarbons in the region and other hi-tech manufacturing activities.

7. Astrakhan - highly skilled labour force and a well-developed social infrastructure

Astrakhan higher educational institutions are competitive both domestically and globally. Currently they provide training programmes for Russian specialists and those from abroad. Annually around 40,000 specialists graduate from these institutions with diplomas in various areas. The leading regional industrial clusters set the grounds for specific needs within the professional educational system thus ensuring a timely skilled personnel recruitment.

Social infrastructure setting up comfortable business environment is yet another integral component for an auspicious investment climate in the region. Astrakhan hospitals and medical centres boast a range of state-of-the-art medical facilities and are known to be unrivalled in the south of Russia.

Astrakhan can truly be referred to as one of Russia’s major touristic destinations. Russian and foreign tourists arrive en masse to Astrakhan to admire the Volga’s picturesque delta or simply take part in a seasonal hunting or fishing tour. Unique cultural and architectural landmarks attract history enthusiasts from all over the world.

8. Attractive preferences and concessions for the residents of the Lotus Special Eco-nomic Zone

One of the crucial factors for the residents of our Lotus Special Economic Zone, besides the available ready-made infrastructure and all-out support by the regional authorities and man-agement of the zone, is the availability of preferences and special operating provisions. We offer:
- property and transport tax exemptions for a 10-year period since the date of incorporation;
- revenue taxes cut by 10 - from 20% to 2%;
- land tax exemptions for a 5-year period;
- fast-track depreciation (deductible expenses from purchasing hardware and business as-sets);
- protection from (legal immunity) from adverse changes to the Tax legislation;
- land acquisition at preferential rates;
- no import duties for hardware, raw materials and components;
- no VAT for hardware, raw materials and components imported from overseas;
- no export duties for ready-made goods;
- no VAT for ready-made goods for export outside of Russia.


CONTACT US

Should you become interested in partnering with us, please, refer to the website: https://mid.astrobl.ru/eng/node

Alternatively do not hesitate to directly contact Mr. Vladimir GOLOVKOV, Head of Foreign Affairs Agency of Astrakhan Region, Russian Federation by tel.: +7(8512) 516124, fax: +7(8512)511709 or e-mail: mid [at] astrobl.ru