The Vologda Oblast is one of the highly-developed regions of Russia. In terms of gross regional produce per capita it takes the 13th place in Russia and 4th in Russia's North-West. Of Russia's total production, in 2009 the Vologda Region produced 16.2 percent of its iron, 16.0 percent of its steel, 24.4 percent of its bearings, 12.9 percent of its mineral fertilizers, 10.5 percent of flax fabrics, 8.5 percent of its glassware, and 5.2 percent of its timber products. The major industries of the region are steel and chemical production (Cherepovets), machine building and metal processing (Vologda), woodworking industry, and pulp and paper industry (the town of Sokol). Light industry is primarily concentrated by flax processing operations: two large flax spinning factories in Vologda and Krasavino, a lace firm Snezhinka, and several other linen producing companies.
The ferrous industry has always been the major source of revenue in the region. Over the last nine years such industries as food processing, machine building, timber and glass industries increased production and became more competitive.
Metallurgy industry of the oblast which has always been economically-efficient and technology intensive. The town of Cherepovets is home to the Region's steel industry. Severstal Steel Mill is the largest producer of rolled products in Russia. It produces a wide range of hot-rolled and cold-rolled sheet steel, zinc and aluminozinc plated sheets, steel wire and steel rope, pig iron, and other iron and steel products.
Although the Vologda Oblast is first of all a metallurgical region, there is a good potential in other spheres too, such as chemical, timber and agricultural ones.
Forests occupy over 70 percent of the Vologda Region. Within the last years timber industry has been rapidly developing owing to an abundant stock of wood - 1,6 bln cu m.
The authorities of the Vologda Oblast seek to expand foreign trade and encourage technological innovation of the timber industry, supplying the sector with state-of-the-art and efficient equipment. The local government attached considerable attention to this industry by establishing an international annual "Russian Wood" Trade Show. The main woodworking companies in the region are Vologodskiye Lesopromyshlenniki, OAO LPK Kipelovo, VologdaLesprom, and CherepovetsLes.
The Vologda Oblast has advanced mechanical engineering. The region's machine building industry includes the Vologda Bearing Plant which produces bearings, the Vologda Machine Tool Plant which manufactures technical equipment for wood processing, the Vologda Optical and Mechanical Plant specializing in optics and household electrical equipment, the Vologda Machine Building Plant producing equipment and spare parts for dairies, mini-bakeries and mini-breweries.
Engineering industry is oriented at manufacturing products that will have a ready market in Russia and abroad. Most enterprises of machine building are certified according to the highest quality standards and in agreement with ISO 9001:2000. Obtaining such a certificate is a sign for clients and customers that the services focus on quality and are run with efficiency.
Maching-building enterprises are involved in exhibition activities. Participation in fairs and exhibitions gives an opportunity to establish new business contacts and promote company's brand among customers. This is the best way to attract more potential customers.
Vologda is also a region of high-intensity chemical industry. The bulk of the Region's chemical products is produced by two large companies located in Cherepovets. OAO Ammophos is the largest producer of sulfuric acid, but its primary products are phosphate fertilizers. Its production meets all the prescribed requirements of ISO standard: ISO 9001:2000 and ISO 14001:2004. OAO Cherepovetsky Azot produces ammonia, non-concentrated nitric acid, ammonium sulphate, dimethyl benzene, carbamide and medical nitrous oxide. The company received the certificates on conformity to ISO 9001:2000, ISO 9001-2001, ISO 14001:2004 and ISO 14001-2007 standards for quality management system.
Glass manufacturing industry of the Vologda Oblast is represented by the following large enterprises: OOO Chagoda glass-works and Co, OAO Ruscam Pokrovsky glass-works and OAO Smerdomsky glass-works.
Over a few years the Vologda Oblast turned into a leading producer of glassware in the North-West of Russia. Every 9th bottle produced in Russia is manufactured at Vologda's glass-works. The companies produce wine, champagne, beer bottles (0,2 - 1 L), glassware for household chemical goods, chemicals and other fluids.
The Vologda Oblast is also characterized by a highly-developed agroindustrial complex. There is a growing demand for the products of the land which are grown by traditional methods and are biologically sound and additive-free. The region is more than self-sufficient in nearly all major products. It produces close to 100% of its needs for cereals, flax fibre, meat, dairy products, poultry meat and vegetables. Farmers of the Vologda area are amongst the most productive in Russia. They supply the essential foodstuffs for the region, they feed other parts of Russia as well. Leading branches of agriculture are plant growing and cattle breeding. The Vologda region is in top ten Russian regions in terms of milk and eggs production per head.
The region is highy integrated into the world economy. In 2009 the external trade turnover of the Vologda Oblast amounted to $2950,4 mln. Total exports in 2009 were $2522,0 mln. The Region's businesses export ferrous and non-ferrous metals, hardware, chemical products, timber and lumber, industrial machinery and other products. OAO Severstal, OAO Severstal-metiz, OAO Ammophos, OAO Cherepovetsky Azot, ZAO Vologda Bearing Factory are leaders in export supplies.
A few years ago the Sheksna Industrial Park was founded in the south of the Vologda Oblast at the intersection of the main Russian transportation lines. It is approved as the only economic-technological development area in the region. It is entitled to preferential policies as both an economic and technological area and as a national-level high-tech industrial park.
Enterprises in the Sheksna Industrial Park may take advantage of the preferential policies. Enterprises are exempt from transport tax and enterprise property tax for the first five years dating from registration and are granted a 4.5 percent reduction in income taxes for five years. Thus, the industrial park encourages the development of industries and businesses which are economically efficient, high in added value and technology intensive.
The Vologda Oblast is a region with the lower investment risks in the Expert rating agency and ranks 20th (as compared to the year 2000 - 35th) among the Russian regions that underwent an examination by experts.
Moody's Investors Service released a survey representing solvency of the Vologda region as very high. It assigned the Vologda region foreign and local currency 'Ba1' ratings. The outlooks for the long-term ratings are stable. This testifies to the fact that the investment climate in our area is business friendly.
The main purpose of the economic policy of the Vologda Oblast Government is to raise the living standards and provide stable economic development of all branches of the Oblast's economy.
