July 1998

By Tatyana Kapelush

Vladimir oblast is an industrial and agricultural region located in central Russia 180 kilometers east of Moscow. The oblast has a population of 1.5 million, of whom 360,000 live in the regional capital, which also is called Vladimir. Other important towns in the region include Kovrov, Murom, Aleksandrov, and Gus-Khrustalny.

More than 50 large and medium-sized industrial enterprises currently operate in Vladimir, manufacturing more than 2,000 different types of products. Local companies produce tractors, tractor engines, electric motors, automobile and electrical devices, clocks, machine tools, plastics, furniture, musical instruments, clothing, and shoes. These products are sold on the domestic market and are also exported. Medical equipment and instruments, construction materials, and other synthetic materials are also manufactured in Vladimir.

Vladimir has strong scientific research and development potential as well. There are 11 research and development institutions along with specialized departments in industrial enterprises engaged in research in the fields of chemistry, engineering, optics, and construction. However, the quality of local products is adversely affected by outdated manufacturing equipment. The majority of enterprises in Vladimir require modernization and restructuring.

The oblast's chief mineral resources are peat, carbonate rock, molding sand, and clay. There are also prospects for the production of fluxing agents, binding agents, metallurgical dolomite, and quartz sand. Timber is another major resource, since forests cover 1.5 million hectares of the region's territory.

Agriculture & Food Processing
Agricultural production in Vladimir is diversified. Major farm products include grain, fodder crops, potatoes, and other vegetables. There is strong potential for further development of food processing around locally grown beets, radishes, cabbage, and carrots. Twenty-four Vladimir firms are engaged in animal husbandry, including cattle, pigs, sheep, goats, and poultry.

A total of 13 local food-processing enterprises manufacture beer and soft drinks, alcohol and liqueurs, distilled spirits, starches, canned fruits and vegetables, and candy. Vladimir dairies produce whole milk, butter, cheese, casein, and powdered milk. Casein and powdered milk are exported. There are seven meat packing companies in the region.

Foreign Trade & Investment
Vladimir region has extensive foreign trade relations. The region's major imports include food products (grain, sugar, meat, confectionery goods, coffee, tea, citrus fruits, etc.), chemical products, pharmaceuticals, plastics, clothing, leather shoes, medical equipment, and television sets. Currently, 263 companies with foreign capital are registered in Vladimir region. Germany is the leading source of foreign investment in the region. U.S. investments account for 7 percent of the total.

The local authorities take a favorable view of foreign investors. Oblast legislation guarantees various privileges to foreign investments during the first six years of their operation. The region also has enacted special tax concessions for companies with foreign investment. Eligible companies will be completely exempt from oblast profit taxes for the first two years of operation and partially exempt for an additional two years if certain statutory requirements are met.

All cities in the region are linked by rail. Vladimir City is connected to eight other cities in the region by municipal railways. There is also an electrified municipal railway link to Moscow. Close cooperation with Vladimir rail office and the inland and sea fleet enables freight to be transported to almost any destination. Vladimir's current airport can handle small jet and propeller-driven aircraft. Construction of a new airport capable of handling larger passenger and freight aircraft is planned for Ivanovo, about 100 kilometers northeast of Vladimir. For more information, visit BISNIS Online at www.mac.doc.gov/bisnis/country/9806vlad.htm.

Tatyana Kapelush represents BISNIS in Moscow.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)