Information
about investment attractiveness of city
Cherepovets

1. General information

The city Cherepovets was founded in 1777.
Administrative value - city of regional subordination

Municipal government bodies:

Main normative document - city Charter.

Cherepovets is arranged on a coast of the river Sheksna flow into Rybinsk water reservoir. The river Sheksna is included in frame of a Volgo-Baltic waterway.

Cherepovets has large industrial port. Through a system of a Volgo-Baltic waterway the city has output to Baltic, Northern, Black, Azov, Mediterranean seas. Thus, Cherepovets by means of a system of a water communication is connected to northern, southern and western regions of Russia.

Allowing a unique geographic position, the city is a potent rail junction, which one allows to execute the transport connection as with central regions of country (Moscow, St.-Petersburg etc.), and with regions of Far North, near Volga area, Ural and Western Siberia.

From Moscow to city - 620 kms, from St.-Petersburg -475. Comparative nearness to the main Russian cities, a solid economical potential and the staff of high proficiency have transformed Cherepovets into one of developed industrial centres of Russia.

2.Resources of development and living condition.

2.1 Territory.

The general area of city, (hectare)	12094
Including:
In federal property	0
In municipal property	12044
In a private property and long-term lease	50
The area under a housing estate and social sphere organizations	7793
Green zones and parks	215
Other	4036

2.2 Population and labour forces.

Population, (thousand person)	323.6
Including:
able-bodied population	200.8
Pensioners and disable persons	58.4
Children and teenagers	64.4

2.3 Condition and standard of living.

Climatic conditions:

Mean air temperature January	-12,0°Ñ
Mean air temperature July	+17,1°Ñ
Precipitations for year, ìì	648

Standard of living:

Monthly average salary (1999ã)., rbl	2619
Official living minimum o for 4 persons family, rbl	4583
Share of the population, incomes which one is lower living level, %	33
Share of the population with the mean and high incomes (more than 5 living minimum, approximate estimate ), %	1,7
Mean lifetime, year	67,2
Health services (accessibility and kinds of the help)	well
School education	well
Cultural service	well
Public transport	well

2.4 Housing fund of city.

Common area, (thousand sq. ì)	6250,4
Number of flats, (thousand pieces)	133,8
Average on one in habitant, (sq. ì.)	11,8

2.5 Engineering systems.

Thermal systems, (km)	266
Water supply, (km)	347
Gas pipelines, (km)	115

2.6 Ecology.

Gush out of unhealthy substances in atmosphere, ò	390000
Same in calculation on hectare of city territory	32,2
Share of catch pollution in atmosphere in total amount Generatrix pollutants, %	81,6
Volume not enough cleared of water flows:
thousand m3 annually	110,3
In % to consumed water	75
In % to throw water	100,0
Quality of drinking water in water-supply	cont
Quality industrial water	cont
Deleting and utilizing garbage	well

2.7 Law order.

Quantity of the registered crimes annually on 1000 inhabitants, unit	15,6
Percent of disclosed crimes, %	71,0
including especially dangerous	90,0
Quantity of road-transport incidents annually, unit	123
Number ruined and injured in road-transport incidents annually, person	25

3. Manufacturing potential of city.

3.1 apacity and structure of production.

Number of workspots in city, unit	142400
Including:
In urban economy	116300
In social sphere	24474
In rule city	517

Volume of worker and quantity of enterprises on branches.

	Volume of worker , thousand, person	Volume production & services (domestic gross product), million	Quantity of enterprises, unit	Including small enterprises, unit
Total:	141,3	43610,5	4782	3815
Industry	72,4	40079,0	475	382
Building	9,0	314,7	200	200
Communication	1,9	105,4	29	27
Transport	7,5	156,0	18	-
Trade	21,9	2547,0	1831	1831
Services	6,3	408,4	960	960
Other	22,3	Í.Ä.	1269	343

Total specific weight of a volume of an industrial production on City from volumes

in Russia,%	1,2
in region, %	73

Quantity of major concerns, pieces.

Metallurgical industry	2
Chemical industry	2
Machine-building and metal-working industry	4
Wood-working industry	7
Construction	5
Light industry	3
Food industry	5

3.2 Scientific and educational potential.

Number of the scientists and faces having scientific degrees and ranks, person	211
Number of the students of high schools or their branches, thousand person	6,8
Annual extension from higher schools, person	1226

3.3 Investments and financial potential, 1999 million. rbl.

Quantity of banks pieces	5
Assets of commercial bank	2315,9
Means, attracted on the deposits from firms and other banks	1261,0
Means attracted on the deposits from the population	478,4
Capital investments of firms in effecting	724,9
Capital investments of city in housing construction and social infrastructure	426,4
Capital investments of city In engineering infrastructure	22,6

City budget for 1999:

Income	1564,9
Consumptions	1534,5
Excess profit	30,4
City debts	0
Profit enterprises	14216,1

4. Development of city and economic connections.

	1994	1995	1996	1997	1998
Volume of worker on city firms, thousand, person	146,0	145,7	148,8	142,1	141,3

Kinds of production removed from city:

Including in other countries:

• Rolled metal (bar, sheet).
• Mineral fertilizers.

Number of cities, which one the city has stable relationships through link

Objects of an infrastructure constructed in city for last 5 years:

• Railway station (after renovation), motorroad (within the precincts of the town), two underground garages, car repair station, 5 automatic filling station.
• Shops and shopping centers - 25, cafe - 2.
• Objects of public health services (dental polyclinic, sleeping building, medical cabinets).
• Office premises, premises putting under financial-credit and insurance entities.
• Sporting structure: physical-health complex, administrative-service building of a stadium, sport hall.

5. Priorities of development and conditions for business.

5.1 Policy and public support.

The city has a socio-economic development program for 1998-2000 and is preparing the strategic development plan for up to 2010. Number of public movements and organizations -146

5.2 Conditions for business

5.2.1 Types and rates of local taxes.

• Tax for maintenance of housing stock, and social and cultural units (% of product sales):
  0.5% - for legal entities - subjects of minor business;
  0.8% - for iron and steel enterprises;
  1.1%- for other legal entities.
• Dedicated tax for maintenance of police force, municipal improvements and education:
  3% of monthly salary fund - for legal entities;
  3% of 12-fold minimal monthly salary for subjects of minor business.
• Tax on advertising - 5% of price of advertising services.

• Tax on users of motor roads;
• Tax on owners of motor vehicles;
• Sale tax;
• Corporate property tax;
• Uniform tax on imputed income for certain types of business;
• Tax on gambling business;
• Tax on use of water resources.

• Personal property tax;
• Land tax;
• Tax on advertising;
• Dedicated tax for maintenance of police force, municipal improvements, education and other needs
• Tax for maintenance of housing stock and social and cultural units.

5.2.2 Availability of tax discounts on regional and local taxes:

Based on the Resolution of the Legislative Assembly of the Vologda region on the regional law "On making changes and additions to the regional law "On investment activity in the territory of the Vologda region" No. 318 of 26.05.1999 the enterprises undertaking investments into the creation and modernization of the fixed production assets are entitled to the following tax discounts:

• on profit tax to the regional budget - by the amount of profit realized by sale of products produced at the fixed production assets created as a result of the investment project;
• on property tax to the regional budget - by the amount of balance value of the newly created fixed production assets and/or the amount of means allocated for modernization or reconstruction of the fixed production assets;
• on tax on users of motor roads to the regional road fund - by the rate established by the regional law "On regional road fund".

The said tax discounts are granted for 5 years from the commissioning date of the units defined in the investment project, but not more than the payback period.

The Cherepovets city duma approved the Regulation "On incentives for investment activity in the territory of the city" No. 42 of 30.03.1999. Based on this Regulation, the following priority lines of investment activity in the territory of the city are defined:

• economic support of the enterprises regardless of the form of property taking part in execution of the city investment programs;
• creation of enterprises for production of public significant products and provision of services in the territory of the city;
• development, commercialization and acquisition of new technologies, equipment and materials, including from abroad;
• creation of new jobs;
• implementation of projects with short payback period for production of competitive products for the internal and world markets;
• support of minor businesses and enterprises attracting investment resources from outside the region.

The Cherepovets city duma approved the Regulation "On formation of city investment program" No. 23 of 29.02.2000. Based on this Regulation, the following tax discounts are granted to the legal entities undertaking its activity as a result of implementation of the investment project incorporated into the regional investment program:

The tax discounts and tax investment credit could be granted for a payback period of the project, but maximum for 2 years, unless otherwise provided for by the investment agreement.