Investment passport of Velikiy Novgorod

Dear friends and colleagues!

I am sincerely glad to welcome the members of both domestic and international business community. Hopefully, this website will provide lots of important and useful information and expand the possibilities of large-scale partnership development.

Veliky Novgorod today is the center of one of the most fast-growing regions, with industrial sector driving the growth. Achieving these results was not easy. We have overcome, together with the country, the hard times of free market birth, economic crisis, recovery growth – this being the background for constant search of new solutions of complex social and economic problems.

The city successfully manages the issues of forming the market structure, sound competition and support for minor businesses, thus creating  welcoming investment opportunities and stable industrial growth. Now, we are in the process of intensifying the economic type, which means that the heart of the further economic, human, and industrial development should be based in hi-tech production.

I am sure, that together with you we have great perspectives of mutually beneficial partnership and improving the partner ties and cooperation between business communities of Russia and other countries.

Yuri Ivanovich Bobryshev,
Mayor of Veliky Novgorod.


Historical reference

The earliest written information about Novgorod is related to 859. This year is considered as uncertain date of its foundation.

Till 12th century Novgorod was included in great Kiev dukedom, and then became a center of vechevoy self-government, a capital of feudal-aristocratic, boyar-merchant republic.

During many years Gospodin Velikiy Novgorod (ancient name of the city) was a political center of wide territories – from Baltic sea on the West to Ural on the East and one of the largest international trade centers on Baltic-Dnepr and Baltic-Volga trade ways connecting Northern Europe with Byzantium and Asia from the middle of 8th century.

In middle ages the city had close trade links with Ganza (merchant union of the cities of Northern Europe). On the territory of the city there were representations of this union – German and Gothic yards. Since 1993 Velikiy Novgorod is a member of recreated Ganza – Ganza Union of Modern Age joining 176 cities from 16 countries. According to Ganza committee decision in 2009 29th Ganza days of Modern Age were held in Velikiy Novgorod, first time in Russia.

Novgorod is widely famous for unique monuments of architectonics, icon painting, prominent wall painting and archeological researches, considerable number of monuments are related to world heritage by UNESCO decision in 1992.

Geographical description

Velikiy Novgorod is the administrative center of Novgorod region, it is located on the North-West of European part of Russia on the way from Saint Petersburg to Moscow.

Distance from Velikiy Novgorod:

  • To Saint Petersburg maritime port: 190 km.
  • To freight airport Sheremetyevo 3: 606 km.
  • To Finland border: 420 km.
  • To Estonia border: 320 km.
  • To Latvia border: 310 km.

The closeness of big cities and convenient connection with them were always favorable for economic and cultural development of the city. The city is located on Volkhov river banks, not far from its source. The city population is 219 thousand people.

Velikiy Novgorod is located in Priilmen plain, 4.5 km to the North from Ilmen lake, from where Volkhov river begins, it divides the city by two parts – Torgovaya and Sophiyskaya.

The climate of the territory is characterized with warm summer and long winter with frequent snowbreaks. Average minimal temperature is minus 12.5 º С.

Snowpack is not characterized with a great capacity. The most height of snow on snow survey amounts to only 20-27 cm, average snowpack duration is 130 days.

The warmest month is July when average air temperature amounts to plus 17,3 º С. In some days air temperature heightens to +30 — +34ºС.

Velikiy Novgorod is related to the zone of surplus moisture. Annual quantity of rainfall is 550 mm. About 70% of annual rainfall quantity is in warm period (April - October), during which 380 – 400 mm fall. Summer rainfall is mostly shower and stormy.

During a year on the territory of the city there are overwhelmingly winds of southern and south-western directions. In summer there is some increase of north-western and northern winds. Wind speed is not high, even in autumn-winter period when they are the highest, they are not more than 4,5 m/sec.

Transportation ways

The main kind of transport is automobile, by which the most part of freight and passengers are transported. The regional territory is crossed with highway Skandinavia – Center. Annual international freight turnover of six largest transportation companies of the region is over 120 thousand tons.

Main directions of freight flow are Germany and Scandinavian countries. The density of hard-top roads in the region is 4 times higher than the average Russian indicator.

Railways crossing the regional territory connect it with other regions of the country, CIS-countries and far abroad ones. Station «Novgorod» renders services on registering customs declarations, provides open and closed stores for temporary saving of customs freights.

Water transportation ways of the region are open for navigation for 316 km (200 miles) and enables ships the way to Baltic and White seas, on Volga – to Caspian and Black seas. At the existence of ships «river-sea» Novgorod spokesmen could implement transportation of various freights to Poland, Germany, Baltic and Scandinavian countries, would have possibilities to transport freights to the South of Russia, to Black and Caspian sea basins.

Nowadays OJSC «Novgorod river port» realizes transportation on Volkhov river and Ilmen lake.

Social description

Velikiy Novgorod was always the city with rich potential of highly qualified personnel.

The main foundry of highly professional personnel is Novgorod state university named after Yaroslav Mudriy (NovSU), which is included in the number of 50 best educational establishments of the country among other analogic higher educational establishments.

NovSU founded 23 faculties at which there are 9,5 thousand full-time students from all the regions of the North-West of Russia, and also from Morocco, Pakistan, Nepal, India, other countries, 4,3 thousand part-time students.

The university structure includes:

  • Humanities institute,
  • Medical education institute,
  • Econimics and management institute,
  • Continuous pedagogical education institute,
  • Polytechnic institute,
  • Agricultural and natural resource institute,
  • Institute of electronic and information systems.

Secondary professional education in NovSU:

  • College of humanities and economics,
  • Medical college,
  • Polytechnic college.

NovSU as a scientific and innovation complex is a recognized center of scientific research in Novgorod region and North-Western region of Russia. Scientific activity in the university is realized on the basic spheres:

  • scientific research activity;
  • innovation activity;
  • training of specialists of highest qualification (post-graduate, doctorate).

Scientific research activity in NovSU is realized by 188 doctors of sciences and 566 candidates of sciences. For effective implementation of scientific research the university has scientific center, scientific research and education research laboratories.

International and Russian scientific conferences are annually held on NovSU base. University scientists annually publish articles in domestic and foreign press.

Within the framework of post-graduate education in NovSU there are post-graduate, doctorate, internship and residency training, advanced training faculty, personnel retraining. The university has 9 dissertation committees.

Innovation activity is developed effectively. Nowadays in NovSU small innovative enterprises work successfully at which teachers, employees, post-graduates and students work.

Except NovSU named after Yaroslav Mudriy 9 higher educational establishments of Moscow and Saint Petersburg opened their brunches in Velikiy Novgorod.

Modern policy of the city Administration in the sphere of education is directed to priority meeting labor market requirements for qualified personnel.

Economic and investment potential

Economic potential

Velikiy Novgorod holds a leading position in economic potential of Novgorod region: the city accumulates about 80 percent of profit, produces 60 percent of industrial products, assimilates 40 percent of investments.
According to the estimation, annual production volume of goods and services by all the spheres of the city economy in 2012 amounted to 100 billion rubles.

Velikiy Novgorod develops chemical, food, wood-processing and pulp and paper, mechanic engineering and metal-processing, electric technical and other industrial productions. In the city there are state and commercial organizations on supporting and developing small business. Velikiy Novgorod, having a favorable geographic location, stable social and economic atmosphere, developed transportation infrastructure, is an investment-attractive city.

For the beginning of 2012 total volume of saved foreign investments on all the spheres of economy of Velikiy Novgorod amounts to over 2 billion US dollars.

Foreign trade activity is characterized with stable growth of foreign trade turnover, the annual volume of which is over 1 billion US dollars. For the latest years export deliveries are constantly increased. Due to activating new enterprises with foreign capital participation import deliveries are also increased.
The basic spheres of export are CIS and far abroad countries: Latin America, USA, China, European countries. In export structure the most share is covered with products of chemical industry, metallurgy, mechanic engineering and wood-processing.

The basic imported kinds of products are carton and etiquette for package products, technological equipment, engineering products, food raw materials. Geography of deliveries is CIS, European countries, USA, China, Japan.

There was a positive tendency in construction complex. New production objects, consumer, social and cultural objects, sports and recreation complexes, large shops, offices and administrative buildings are constructed. City development plans include construction of big residential massive in Derevyanitskiy micro-district (northern part of Torgovaya side). The total area for construction is 206 ha, it can include over 1 million square meters of residence, and also consumer, social and cultural objects.

Important element of developing city economics is small entrepreneurship sector. Nowadays this sector of economy employs about 30 thousand people. Small business enterprises cover nearly all the spheres of economy: industry, trade, construction, rendering consumer, medical, educational services and others. The city has state and commercial organizations on supporting and developing small business.

For the latest five years tourist sphere of Velikiy Novgorod is one of the most perspective spheres of city economy development. Every year our city is visited by about 250 thousand tourists.

Specialized secondary and higher educational establishments have possibilities of making highly qualified specialists nearly on all directions required in the city and region.

The leading role in total production output is realized with such kinds of processing as chemical production, food production, pulp and paper industry, machinery and equipment production, electric power, gas and water production and distribution.

The city production potential is defined with the first ten of the largest industrial enterprises, such as OJSC «Acron», LLC «Amcor Flexibles Novgorod», LLC «Dirol-Cadberry», CJSC «Novgorod metallurgical plant», group of enterprises «Splav» and a number of other enterprises on which 80 % of all the volume of industrial products is produced.

Over 21.5 thousand people are employed at large and medium enterprises of the city, average salary of working people amounted to 28 thousand rubles as of the middle of 2012.

Investment potential

Policy of regional and city executive and representative bodies is based on uniform understanding of the principle: attraction of investments in the city is a leading factor of social and economic development of the city including providing employment and growth of well-being of its citizens.

Efforts of Velikiy Novgorod administration on attracting investments and forming favorable investment climate:

  • Development of legislation stimulating investments,
  • Simplification of bureaucratic procedure assistance in passing them,
  • Supporting an investor from the first step to project realization,
  • Personnel training,
  • Making conditions for life,
  • Making a positive image of the territory.

During the latest years according to different ratings published in magazines «Stock market», «Expert» and other independent publications, Novgorod region is estimated as one of the most favorable territories in Russia for attracting foreign investments.

78 thousand people work In the large and medium-sized enterprises of all economy sectors of the town, 21.5 thousand people working in industry, and more than 25 thousand people working in the small-scale business.

Multidisciplinary educational institutions of the town enable training in almost all industries.

A significant number of major projects is realized and developed. Against the background of the investment climate in other regions of Russia, investors see our city as a very serious alternative for their projects. In many ways, they are attracted by the convenient geographical position of Velikiy Novgorod, located on the highway and railway between St. Petersburg (190 km) and Moscow (606 km) , the high level development of all infrastructure types, a highly skilled and disciplined labor force, the stability of the regional and local power, their constructive cooperation that puts Velikiy Novgorod in an advantageous position compared to other cities of Russia.

Nowadays investors’ interest is shown in such spheres as food industry, mechanic engineering, pharmaceutical production, automobile components production, production of instruments, household appliances, furniture, and also in some other spheres.

Main enterprises with foreign capital:

  • «Amkor Fleksiblz Novgorod» LLC (United Kingdom — Australia),
  • «Amkor Tobakko Pekendzhing Novgorod» LLC (Germany — Australia),
  • «Novgorodsky metallurgichesky zavod» CJSC (British Virgin Islands),
  • «Dirol Kedberi» LLC (United Kingdom — Denmark).

All the companies from the moment of its organization lead their business in Velikiy Novgorod successfully, and nowadays the share of products loaded by enterprises with 100% foreign capital amount to about 18% of the city indicator.

Velikiy Novgorod administration is searching for entrepreneurs (businessmen) which would be ready to start their business in Russia. Administration managers are sure that location of new enterprises on Velikiy Novgorod territory enables both investors’ success and city development.

Investment legislation of Velikiy Novgorod

On city level taxes are rebated in accordance with the following normative documents:

  • Decision of Duma of Velikiy Novgorod from 27.12.2005 № 236 «About stimulating investment activity on Velikiy Novgorod territory» with changes and additions.
  • Decision of Duma of Velikiy Novgorod from 26.05.2005 № 129 «About setting land tax on Velikiy Novgorod territory» with changes and additions.
  • Decision of Duma of Velikiy Novgorod from 26.01.2006 № 246 «About ratification of regulations of organizing and holding public hearings on legal regulation of city-planning activity» with changes and additions.
  • Decision of Duma of Velikiy Novgorod from 01.11.2007 № 692 «About powers of local self-government bodies on representing municipal preference» with changes and additions.
  • Decision of Duma of Velikiy Novgorod from 10.07.2008 № 122 «About ratification of regulations of representing municipal preference» with changes and additions.
  • Decision of Duma of Velikiy Novgorod from 27.11.2009 № 533 «About ratification of coefficients for calculating rent payments for land areas the state ownership for which is not differentiated» with changes and additions.

Rates of represented rebates:

  • Land rent payment (to 90% of calculated payment).
  • Land tax (100% of calculated tax).

Land relationships in Velikiy Novgorod are regulated in correspondence with regional law from 05.12.2011 № 1125-OZ «About representation of land areas on Velikiy Novgorod region territory», resolution of Administration of Novgorod region from 20.12.2007 № 301 «About ratification of regulations of defining rent payment rate for using land areas of regional ownership or the state ownership for which is not differentiated», decision of Duma of Velikiy Novgorod from 22.02.2012 № 1193 «About ratification of regulations of representation of land areas on Velikiy Novgorod region territory» with corresponding changes and additions.

Ecological parameters of the project are regulated by using the following normative and legal base:

  • By decision of Duma of Velikiy Novgorod from 26.01.2006 № 246 «About ratification of Regulations of organizing and holding public hearings of legal regulation of city-planning activity in Velikiy Novgorod» with changes and additions;
  • By decision of Duma of Velikiy Novgorod from 27.12.2005 № 230 «Regulations of using a system of canalization of production and economic and consumer waste water of Velikiy Novgorod» with changes and additions;
  • By decision of Duma of Velikiy Novgorod from 25.03.2004 № 706 «List of polluting substances taken into a system of canalization of production and economic and consumer waste water of Velikiy Novgorod and their acceptable concentrations» with changes and additions;
  • By decision of Duma of Velikiy Novgorod from 26.10.2006 № 377 «Regulations of using a system of communal rain canalization in Velikiy Novgorod» with changes and additions;
  • By decision of Duma of Velikiy Novgorod from 22.03.2007 № 488 «About norms of removal of surface waste and drainage water into the system of communal rain canalization of Velikiy Novgorod» with changes and additions;
  • By decision of Duma of Velikiy Novgorod from 28.06.2007 № 575 «Regulations of maintenance and guard of green plantations in Velikiy Novgorod» with changes and additions;
  • By decision of Duma of Velikiy Novgorod from 21.01.2008 № 32 «Regulations of rate and rules of paying replacement cost of green plantations in Velikiy Novgorod» with changes and additions;

Contacts of the persons, who are responsible for the investment activity

Address: 173007, Veliky Novgorod, Bolshaya Vlasyevskaya st., 4

Mayor of Velikiy Novgorod
Bobryshev Yury Ivanovich
Phone: +7 (8162) 983-401
Fax: +7 (8162) 732-599

Chairman of Duma of Velikiy Novgorod
Zolotarev Sergey Valeryevich
Phone: +7 (8162) 983-408

First deputy Chief of city administration
Zemlyak Anton Vasilyevich
Phone: +7 (8162) 983-422.

Economic committee chairman
Grigoryev Aleksandr Nikolayevich
Phone: +7 (8162) 994-208.
Fax: +7 (8162) 994-212.

Chairman of committee of tourism and foreign connections of Velikiy Novgorod Administration
Vasilyeva Olga Nikolayevna
Phone: +7 (8162) 994-226.

Head of industrial policy and foreign economic connections department
Nazarenko Vladislav Olegovich
Phone: +7 (8162) 994-213,
Fax: +7 (8162) 994-212.

Map of municipal districts

Reception desk: room 438.
Fax: +7 (8162) 773-878.
Phones: +7 (8162) 731-990; 736-354.
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