Background information
The Lipetsk Region was organised January 6, 1954.
It is located in the centre of European Russia and borders on the Voronezh, Kursk, Oryol, Tula, Ryazan and Tambov regions.
Area: 24,100 square kilometres, or 0.14% of total Russian territory. Population: 1.17 million, 747,000 (64%) urban and 422,000 (36%) rural. Population density: 48.5 people per square kilometre.
The region is divided into 20 administrative and territorial units: 2 city areas and 18 municipal districts, which include 6 urban and 302 rural townships, and has 1,598 rural populated centres.
The administrative and cultural centre of the region is Lipetsk, resting on the banks of the Voronezh River, with a population of 502,400.
The prevailing soil is classified as black soil, which covers over 85% of the territory. Available land: 2,404,700 hectares.
There are 300 mineral deposits in the region: limestone, dolomite, sand, clay and cement ingredients. For carbonate resources, the region ranks first in the Russian Federation.
The region has a large forest reserve with an area of 180,000 hectares and a timbre stock of 23 million cubic metres. The region's forests are protected from harvest.
Transport
The region is crossed by three railway lines and has 50 railway stations and two large railway hubs: Yelets and Gryazi. Route miles total 800 kilometres. The region leads Russia in the availability of railway lines.
Two motorways of federal significance pass through the territory of the region: Moscow-Rostov and Moscow-Volgograd. They link the region with Moscow, the industrial centres of the south, the North Caucasus and the Volga area, cities in the west of the Russian Federation, and Ukraine (Donbass). The total route length of paved roads is 7,000 kilometres; and in terms of road availability, the region is among the top 10 in Russia.
Lipetsk has one operating airport with scheduled service to Moscow, St Petersburg and Sochi. The Government has decided to open Lipetsk Airport to international flights. Work is under way to set up a permanent passenger and cargo border-crossing facility.
Social and economic indicators
Over the past few years the region has led the Central Federal District in social and economic performance.
The region has positive dynamics in all basic social and economic indicators (all figures are cited for 2007 using 2000 as a baseline):
- the gross regional product rose 155%, the average for Russia. In per capita GDP for 2006 the region ranked second in the Central Federal District, and, in purchasing power parity, seventh in Russia;
- the industrial production index increased 167%; while the average annual rate of growth rose 108%. In manufacturing volume per person, the region was second in Russia and first in the Central Federal District.
Foreign trade is growing: in 2007, it reached $4.8 million (an average annual growth rate of 125%), including exports, mostly ferrous metals, which exceeded $3.8 million.
Housing units increased by 120% compared with 2000 (100% across Russia). In 2007, 0.6 square metres of floor space per person were commissioned, above the average Russian figure (0.43 square metres).
Industrial sector
The industrial sector produces rolled sheet metal at Novolipetsk Steel (NLMK), cast iron, pipes from high-strength spherulitic-graphite iron, shaped castings at Svobodny Sokol, refrigerators and freezers, and washing machines at Indesit International. New production facilities in the special industrial-production economic zone manufacture light-weight glass containers for the food and medical industries, evaporators and condensers for refrigerating equipment, etc.
Agro-industrial sector
Agriculture makes up 8.6% of the gross regional product (compared to 4.4% across Russia).
As the result of a balanced and prioritised agriculture policy, growth was reported in most categories (2007 as percentage of 2000): farm production was up 80% (30% for Russia), and the food industry was up 300% (50% for Russia). In per capita gross production, the region ranked fourth in Russia and third in the Central Federal District.
The region exports 40% of its grain, 60% of its meat and confectionery, 80% of its sugar and pasta products and 96% of its canned fruits, vegetables and juices.
Labour productivity was up 100%, with 2,400 new jobs created in farming and 2,000 in the food and processing industries.
Agriculture is attractive to investors. Per rouble of state support it receives 7 roubles in investment. In 2007, state support totalled 2.6 billion roubles, or 30% more than in 2006, including 1.5 billion roubles from the regional budget (a rise of 50%).
The Lev Tolstoy district has set up a special regional-level economic zone similar to the Astapovo agro-industrial zone. Three resident companies operate in the zone: Gorky (farm produce), Stimet (building materials) and NPP Bioritm (sublimed products) with a total investment of 800 million roubles and 600 new jobs.
The food industry has attracted 15 billion roubles in investment in 2006-2008 and created 2,000 new jobs.
The following large investment projects have been implemented:
- Liboil: 120,000 tonnes of rape oil a year;
- Liconf: 100,000 tonnes of confectionery a year;
- Lebedyansky: 1.1 billion litres of juice a year;
- Progress: 1,200 tonnes of dry infant food a year;
- Central Vodka Company: 1,100,000 decalitres of wines and spirits a year.
Budget, employment, social welfare
The region is one of the few in Russia that does not draw subsidies from the Federation's financial support fund.
In terms of budget allocation, it invariably ranks third in Russia. In 2007, the per capita budget allocation was 27,600 roubles, and in the current year, 35,700 roubles (a six-fold increase on 2000).
Employment and labour growth are positive: the level of registered joblessness over the past few years has not exceeded 0.8%. The region is among the top five constituent entities in Russia in all employment indicators.
The real disposable income in 2007 rose by 110% compared with 2000, while average per person cash income showed a 440% growth, corresponding to the national average. The average annual rate of growth of monthly wages was 134% (130% across Russia), and 128% this year (13,563.5 roubles), fifth in the Central Federal District.
Socially unprotected segments of the population have been taken better care of, which had a positive effect on lowering the poverty level in the region. The number of people with an income below the subsistence level is steadily decreasing each year. The proportion of the indigent population in 2007 was 10.8% - second in the Central Federal District - and was down 20% from 2000.
Investment climate
In 2006-2007, according to the Expert RA rating agency, the region was second in Russia after St Petersburg and first in the Central Federal District with respect to integral investment risk.
This year, Fitch Ratings has upgraded the long-term ratings of the Lipetsk Region to:
- long-term BB, and short-term B in foreign currency;
- long-term BB in national currency;
- AA-(rus) on the national scale.
The forecast for ratings is "Stable".
The volume of investment in fixed assets increased 280% over 2000 (130% for Russia) and surpassed 56 billion roubles in 2007. The region is fourth in the Central Federal District in per capita investment.
The favourable investment climate established in the region has attracted 90 companies and firms with foreign ownership.
In the first nine months of 2008, foreign investment totalled $1.77 billion, or 14 times the previous year. More than 99% of the accumulated foreign investment is concentrated in manufacturing.
The region is implementing a strategy for the socio-economic development of the Lipetsk Region through 2020, approved in 2006. The strategy contains the basic principles of long-term regional policy:
- establishment of growth points concentrating on financial, labour and managerial resources;
- improvement of demographic situation and development of human resources;
- improvement of the environment;
- better management of regional development policy.
All city areas and municipal districts and 14 rural townships have adopted and are implementing their own strategy for socio-economic development.