Astrakhan City
Key Competitive Attractions
Caspian Shipping
The city of Astrakhan is the administrative centre of Astrakhan Oblast, situated in south-western Russia at 1,534 km from Moscow. Astrakhan sits in the delta of the Volga River, 100 km from the Caspian Sea, and is one of Russia’s most important shipping and transportation locations, and a hub for Caspian Shipping.
Astrakhan’s population of 521, 800 people contains over 100 nationalities and 14 religious faiths. Astrakhan is considered as one of 115 cities in Russia to be of high historic value.
The sectors currently undergoing the most development in Astrakhan are oil and gas, chemistry, fishing, food and drink production, ship building and vehicle manufacturing, tourism, trade, and transport infrastructure.
Astrakhan is one of the most stable cities in the South of Russia for socio-economic development. In the past few years, the city’s key macroeconomic factors have seen a steady increase. Russia’s leading mass-media and IT company RosBusinessConsulting (RBK) rated Astrakhan as the 13th most attractive city for investment, in a rating of 75 Russian cities with a population of over 250, 000 people.
Fitch Ratings assigned Astrakhan the level “B+” for the long-term foreign and local currency rating, the level “B” for the short-term foreign currency rating, and “A(rus)” for the long-term local currency rating. Fitch Ratings’ prediction for the long-term ratings for Astrakhan stands at “Stable”.
Today, Astrakhan is considered as one of Russia’s most modern and rapidly developing cities. Its strategic location, excellent communication links, well-established manufacturing activities, and a highly qualified workforce make the city one of Russia’s most attractive locations for investors.
Assistance and Support For New Business Investors
One of the main priorities of Astrakhan’s Investment Department is the creation of favourable conditions for investors, in order to facilitate the setting up process.
The Investment Department oversees all investment projects and offers help and guidance to those wishing to set up a business in Astrakhan. The Department’s specialists provide personalised consultations to each investor.
Services include:
- Property searches
- Information on local laws, regulations and taxes
- Administrative assistance
- Preparation of documents for building permission
- Guidance on available financial support
The city of Astrakhan is currently working on investment projects on regional, national and international scales. The Investment Department particularly welcomes large-scale and innovative projects, as well as those that will be able to create a noticeable positive effect on the city’s quality of life.
Existing Business Base
Astrakhan is situated at one of Russia’s oldest trade crossroads that link Europe to Asia. The city’s developed communications infrastructure incorporates a port, railway and motorway networks, and an international airport, giving Astrakhan great economic potential.
Astrakhan has a wealth of water and natural resources. It is renowned for being a producer of high-quality foods, and is often referred to as the city of “watermelons, fish and caviar”. Astrakhan Region has a significant quantity of oil resources, and is one of the world’s most important areas of oil and gas extraction.
Astrakhan’s main business activities:
- Ship-Building
- Oil Refining
- Sulphur Extraction
- Food and Drink Production - mainly red fish, black caviar, fruit and vegetables
- Fuel and Power
Astrakhan’s main business functions are advanced manufacturing and light industrial. The city is currently the most advantageous location for the headquarters of companies who have business activities in the Caspian area.
Astrakhan also has a very strong tertiary sector, which includes approximately 3,500 companies.
Investments into Astrakhan’s fixed capital by economic sector (2009):
45% - Natural resources extraction
13% - Manufacturing
13% - Construction
10% - Property
7% - Government services and armed forces
5% - Communications infrastructure
4% - Electricity, gas and water distribution
1% - Financial sector
1% - Health and Education
1% - Wholesale and retail trade
In 2010, the total sum of investments into fixed capital was €1.4 billion, which was three times more than in 2006. Between the years 2005 and 2009, Astrakhan City concluded over 100 contracts with investors for large-scale projects.
The amount of investments per capita in Astrakhan in 2009 was €2,300, and this figure was 1.7 times higher than Russia’s average for the same year. Since 2006, Astrakhan has been amongst the leading cities (with a population over 250,000 people) in Russia for this rating.
