People on vacation enjoy the ski resort outside the city of Miass. Source: Lori / Legion media
Cold weather - which regularly dips below
-30 degrees in winter - is not the only reason foreigners have remained
cautious about investing in the Chelyabinsk
region. The new governor, Mikhail Yurevich, is trying to change that.
The 42-year-old businessman, named “Man
of the Year” at the tender age of 28 for the organization of industrial
production in Chelyabinsk,
was appointed governor by President Dmitry Medvedev last year. Yurevich
recently launched a start-up office for foreign investors in the capital. It
provides assistance to newcomers to Chelyabinsk,
offering anything from the provision of interpreters to help with registering
documents. Local authorities also provide tax credits during the early stages
of investment and help select land and industrial sites with ready
infrastructure.
To date, 55 projects have been supported by the regional Ministry of Economic
Development. Not all of them are focused on manufacturing.
One Italian company decided to invest $118 million in the modernization of a
ski resort near the city of Miass, a two-hour
drive from Chelyabinsk.
It is one of seven ski resorts operating successfully in the Southern
Urals.
A number of powerful food holdings have been created with the help of foreign
investment in the Southern Urals; local pasta
and buckwheat is exported all over the world.
Breaking Down Barriers
Nonetheless, few foreigners have heard of Chelyabinsk. To tackle the
problem, local authorities created a new position: deputy governor for
invesment projects. Yurevich appointed 39-year-old Alexei Ovakimyan, who had
previously run a successful consulting company, to the post.
“It became clear after meetings with
foreign investors that they had never heard of Chelyabinsk before,” Ovakimyan said. “For
many of them, Russia is
still associated primarily with Moscow and St. Petersburg. But this
is a completely misguided point of view.”
Globalization
The capital of the Southern Urals, Chelyabinsk, is a city
with more than one million inhabitants. It is situated more than 1,000 miles east of Moscow on the slope of the Ural Mountains, near the border
between Europe and Asia, and recently
celebrated its 275th anniversary. In Soviet times, Chelyabinsk was a closed city filled with
factories for the production of steel products, weapons and agricultural
machinery.
The area was also home to some of the
most hi-tech laboratories for the production of nuclear weapons.
“It’s hard to imagine now, but in the 1990s there was only one hotel in the
city where foreigners could stay,” said Dwight Bohm, general director of Metran
between 2004 and 2010.
Things have changed since 1992. People have begun to travel abroad regularly
for holidays, business, study and professional exchange.
The town now has an international airport, supermarkets, health spas,
restaurants, internet cafes, shops. Chelyabinsk
has over a dozen internationally competitive hotels, the latest newcomer being
Holiday Inn.
Authorities are currently scrambling to develop the city’s infrastructure in
time for the European Judo Championships, which will be held in Chelyabinsk for the first
time in 2012.
Investing in People
With a shortage of funds in the regional
budget, Yurevich is convinced that foreign investment is the key to further
development. New jobs will create demand for investing in education.
That is why Yurevich is particularly
proud of the agreement reached during his United States visit with the
Washington, D.C.-based American Councils on Education for International
Education. The deal will provide internship opportunities for students of Chelyabinsk State University
at leading American companies.
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