The Ivanovo region is located in the centre of the European part of Russia, 300 kilometres north-east of Moscow, on intersection of main transport lines that connects Moscow and western regions of Russian Federation with east and north-east regions of the country. The geographical location of the region is estimated by the experts, as fourth in Russia from the point of economic and transport advantages among 89 Russian regions (business-magazine "Expert" N 41, November 2001). The region has practically all transport facilities: auto- and railway roads, river ports and airport that have status international and capable to accept all main types of modern cargo and passenger aeroplanes. The territory of the region is 21,4 thousand sq. km, population - 1205 thousands people, including population of the regional centre Ivanovo with 452,1 thousands people.

     Ivanovo traditionally is one of several leading industrial centres of Russia and it is well known by it's textile and heavy industry. Till now the two thirds of cotton fabrics of Russian Federation is produced by Ivanovo factories. Chemical, food and furniture production in the region is well developed too.

     Despite of it's large industrial sector the region is one of ecologically favourable areas in Russian Federation (it holds 14th place among 89 regions). The area has excellent salubrious potential (forests, lakes, rivers and mineral springs). Ivanovo region is part of famous tourist's route - "Golden ring of Russia", on its territory is concentrated a number of historical and cultural monuments. Most interesting and historically important places are Plyos on Volga river and small town of Palekh - native land of an internationally known Russian lacquer miniature. After 1998 a number of holidaymakers and tourists from Moscow and other neighbouring regions has significantly increased that creates good possibilities for development of tourist business.

     On the total investment potential the Ivanovo region stays in the middle of the Russian Federation subjects list

     The economists define 11 types of regions of investment attractiveness. The Ivanovo area is defined as 6th type, so-called 3B2 - the moderate possibilities and moderate index of risk (17 regions of Russia have the same type). According to Russian economists this type allows slow but stable long-term business activity that is underestimated by western partners.

     On total investment risk parameters the region holds 50th place in Russia among 89 regions. These parameters include social rating - 38th place, infrastructure rating - 35th and innovation rating - 49th.

     The regional investment legislation is highly evaluated too. It has 19th place in Russia. The laws "About state support of investment activity on territory of Ivanovo region" and "About support of investment activity in the form of capital investments on territory of Ivanovo region" adopted by regional Legislative branch give serious tax privileges to the foreign and Russian investors who work with local firms.

     As for labor potential - 57.6% of total regional population is working people (721.2 thousands people) what is also an important characteristic of the inverstment climate. 24 % is engaged in industrial sector, 6.4% is in construction enterprises and 3.4% - agricultural sector.

     The region has rather high educational and scientific potential. There are 9 high schools,1 academy and about 20 scientific and research institutes. More than 50 thousands of students are trained in universities, colleges and vocational schools. After long economic recession period tendency of stabilisation came that brought significant rise of spending on research and development works. In 1999 they were increased at 50 % comparing with 1998, and in 2000 they almost doubled comparing with previous year and reached 120 millions roubles. The growth of innovation activity is not as fast as RDW: in 1999-2000 about 13% of new technological solutions were introduced. As a rule, the introduced technologies are directed at the extension of production range.

     The total retail trade turnover in 2000 increased at 10,6 % comparing 1999, and turnover in food sector - on 23,7%. In January - June, 2001 the turn-over of retail trade has made 4589 millions roubles that is on 20 % more comparing with the same period of the previous year.

     With some rise of public incomes in 2000-2001 purchasing capacity increased too. In 2000 average volume of goods sellings per person grew up on 10,5 % comparing with 1999, and in first half of 2001 - on 20,2 % comparing with same period of 2000. As corollary consumer goods production increased up to 20 % comparing with the same period of the previous year.

     The region has an advanced telecommunication system. Automatic telephone and fax communication connects all regions of Russia and practically all countries of the world. The official and business structures widely use Internet communication and e-mail. There are 3 companies that provide cellular phone mobile services in the standards of GSM-800, MTS-GSM-1800, AMT-450.

     During the last 10 years the foreign businessmen invested about 35 millions US dollars in local enterprises. The investments were: 78,5 % direct investments (the fixed capital), 17,7 % - trade and other credits, 3,8 % - other forms of investments. Main investors are from Great Britain and Japan. Main sectors of investments are food processing industry, sewing production, mechanical engineering, and telecommunication.

     By the middle of 2001 113 enterprises with the foreign investments were registered in Ivanovo region. They work at food-processing industry, sewing production, manufacturing of spare parts for the machine-building enterprises and trade business. The leading partner-states of the region are: Uzbekistan (11 joint ventures), Great Britain (5), Belarus (5), China (4), Germanium (3).

     As for the drawbacks of the region- there are shortage of own natural resources with exception of wood and raw material for production of building materials. So the need for fuel and energy components, metal and raw cotton brought region at 84th rate in all-Russian raw-material rating.

     In general there are some positive economic tendencies: growth of volumes of production of main industries (in 2000 - 118 % comparing with 1999; in June of 2001 - 113 % comparing with June of 2000), diminution of number of the unprofitable enterprises and activation of investment activity (in 2000 - 118,5 % comparing with the level of 2000, in June of 2001 - 113,9 % comparing with the level of June of 2000).