Sevastopol is a new and exciting opportunity for prospective investors. Investing in tourism, goods and food industries, human services, development of transport infrastructure and other promising sectors will help this modern city to grow and develop.

Tourism is the most prospective investment sector

Sevastopol is located at the seaside, in a popular resort area that attracts thousands of tourists every year.

The coastline of the city stretches 152 kilometers long and most of it is available real estate for building modern resorts, hotels, trade centers, aqua-parks and other potentially profitable projects. There are 47 beaches is the city stretching 10 kilometers long. Most of these places are very popular among tourists and visitors of the city but they require strong financial support in order to develop a proper infrastructure that will meet the European standards.

Sevastopol and free economic zone

Besides a day at the beach, Sevastopol offers tourists a wide variety of activities. The city is a historical, cultural and religious center of the Crimean peninsula. There are many theaters, symphony and opera halls, movie theaters, museums, restaurants, night clubs and shopping centers highly popular among tourists.

Trade and service sector development perspectives

Because of its strategic geographical location, the city is has amazing potential in terms of development of trade relations both within the country and internationally. Sevastopol’s modern seaport opens unlimited possibilities for the development of import and export of various products and raw materials. Large cities located nearby will facilitate the future development and solidification of business relationships with such cities as Simferopol (population of 353,000), Kerch (population of 148,000), Yalta (population of 134,000) and Yevpatoria (population of 120,000) as well as other large cities located on the peninsula.

FUNDAMENTAL FACTORS OF SEVASTOPOL’S INVESTMENT ATTRACTIVENESS

Supply of power resources

Sevastopol’s investment attractiveness is distinguished by the high accumulation of natural resources on its territory.

For instance, Chernorechensk water storage basin contains 45 million cubic meters of fresh water supply. In addition, the city’s 230 underground wells provide an alternative source of water supply for domestic use. Logistics and availability of the power supply continues to be addressed systematically and comprehensively on the government level. In addition, the two new modern thermal power-stations in Sevastopol and Simferopol, with total capacity of 470 megawatts each, are in the final stages of completion. Each object includes two steam-gas units capable of providing 235 megawatts of power.

The launch of the first unit of Sevastopol’s thermal power-station is scheduled for September of 2017 with the second power station to follow in March of 2018.

The proximity to the Black Sea guarantees no problems with providing the region with natural gas. The construction of the gas pipeline on the floor of the Kerch Strait will ensure the provision of the required raw materials to the two thermal power-stations in Sevastopol and Simferopol.

Developed transportation infrastructure, actively supported with billions of rubles in investments will allow for a shorter payback period and accelerating the invested foreign capital turnover rate.

Transport infrastructure

Developed transportation infrastructure, actively supported with billions of rubles in investments will allow for a shorter payback period and accelerating the invested foreign capital turnover rate.

“Sevastopol” airport is currently being reconstructed and upgraded. This herculean task is set to be completed by the end of 2018. Today it already received over 500 million rubles in private investor funds and 1.8 billion rubles from the federal programs.

Sevastopol is both the end and a key point of the Tavrida highway. This modern highway connects Sevastopol with two other large cities – Simferopol and Kerch. The Tavrida Highway is being actively upgraded since the beginning of 2015 in order to have a 4-line highway built in accordance with European standards.

The city also has a large specialized seaport consisting of one multipurpose and two grain terminals. In addition, there is a sea terminal capable of quickly processing all kinds of wheeled vehicles. A ferry system of communication exists between such destination as Sevastopol-Novorossiysk and Sevastopol-Zonguldak (Turkey).

Priority sectors for investment

Military-industrial complex. Sevastopol was initially designed as a city for storing and maintaining war vessels. Thus, to this day its MIC infrastructure is very developed.

Shipbuilding and maintenance. The process of city’s economic development through a steady flow of investments requires the use of transport and commercial ships. For instance, large commercial vessels are necessary for freight and other operations and passenger liners are necessary for the development of tourism. Finally, a modern maintenance complex is required in order to sustain the sea transport.

Sevastopol and free economic zone

Seaports and logistics. Sevastopol has great potential to become a major international port center for transporting all kinds of cargo and importing/exporting various goods. Development of the trade sector requires opening modern, highly efficient logistics centers working in accordance with European standards. Unfortunately today this is impossible to achieve without the support of foreign investments.

Sevastopol and free economic zone

Sevastopol, just as any other growing and developing modern city needs high-tech manufacturing and modern information technologies.

Tourism and recreation is one of the most promising sectors for foreign investment. Sevastopol is a famous resort that is popular among tourists from all CIS countries. The potential for development of this sector is nearly endless.

Agriculture, wine production in particular, is another perspective sector of national economy that attracts local entrepreneurs and foreign investors alike. The major part of the city’s territory is allotted for growing well known types of grape. There is a modern wine-making factory in Sevastopol that is open to financial support from abroad. The final product is in high demand among customers from many CIS countries. What’s more, the main marketing channels are located in immediate proximity to the production line, thus maximizing the sales revenue.

Significant specialized investment programs have already been implemented in the city. These programs will facilitate the development of entrepreneurial activity for small and medium-size businesses. The tax structure of the republic is constantly changing to meet European and International standards.

Favorable tax climate

Starting from the beginning of 2015, Sevastopol became a designated free economic zone with a very favorable tax climate and favorable conditions for investment. Main tax advantages include the tax free rates for the free economic zone participants and nominal rates for all other entrepreneurs. These attractive terms are in place for investors through 2039. Because of the free economic zone status of the city, business registration procedures and registration as a free economic zone participant are streamlined.
Sevastopol and free economic zone

Sevastopol and free economic zon