Saturday, June 23, 2018

Chelyabinsk to collaborate with Sberbank to develop small, medium businesses

On Monday, Chelyabinsk Acting Governor Boris Dubrovsky and Sberbank Chairman German Gref signed an agreement of cooperation for the development of small and medium-sized businesses in the Southern Urals.

"The agreement will be good for the economic and social development, including in small and medium-sized businesses," Anatoly Bazhan, an expert on banking and credit policies at the Russian Academy of Sciences, said, according to Pravda. "Such an agreement gives a moral right to receive more loans from Sberbank. On the part of the bank, there can be consultations conducted on issues of investment or how to ensure crediting of this, or that particular area of activity. This is not typical for the region, although it can be beneficial."

Bazhan encouraged local municipalities to attract investment, particularly foreign investment.

"One can engage partners' interest by providing land on concessional terms, their participation in enterprises and other methods," Bazhan said, Pravda reports. "Any other region must follow this example to ensure the inflow of investment. Southern Urals has chosen a strategically right direction."

The agreement calls for regional government and private enterprises to invest $12.24 billion collaboratively in a multi-tiered investment structure. During a recent meeting of Chelyabinsk region business owners, government officials and investors from South Korea, Dubrovsky laid out an investment plan comprised of several phases.

All parties present, including the South Korean delegation, approved Dubrovsky's plan and will present their own investment plan in a separate meeting in August, according to Pravda.

"Our country needs both internal and external investments more than ever before," Igor Rudensky, the State Duma chairman of economic policy, innovation and entrepreneurship development, said, Pravda reports. "Attracting foreign investment is a plus for the region that creates conditions for their involvement. The future is about investment, and one must, of course, only expand this type of cooperation, as it implies new jobs and new technologies, especially Korean technologies that we need today a lot. And I think that it is the Chelyabinsk region that shows others how to work and in what direction to grow."