OREANDA-NEWS. July 01, 2010. State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) and the Kaluga Region Development Corporation (OJSC) signed an Agreement of Purchase and Sale of the Kaluga Region Development Corporations shares.

On behalf of Vnesheconombank the Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev on behalf of the Kaluga Region Development Corporation by its General Director Vladimir Popov.

The Agreement provides for Vnesheconombank to purchase 25% of the Kaluga Region Development Corporations shares. This Agreement is being implemented as part of financing the 2nd stage of the project aimed at developing the Kaluga regions industrial parks infrastructure to form an automobile and auto components manufacturing cluster.

The project was initiated by the Kaluga Region Government and aims to comprehensively promote the regions socio-economic development, raise investments and increase budget revenues of the Kaluga region and increase the population employment rate.

The project aims to do engineering preparation for industrial facilities in industrial parks Rosva and Kaluga-Yug and technopark Grabtsevo for deploying production facilities of such strategic investors as Volkswagen Rus, Volvo Truck, Peugeot-Citroen Mitsubishi Automobiles and auto components investor- manufacturers.

As part of implementing the projects 1st stage, Vnesheconombank and the Kaluga Region Development Corporation entered into a Credit Agreement worth 2,389 billion rubles for a period of 10 years. At present, the projects 1st stage is fully completed. In January of 2009, the Volvo Truck Factory was commissioned.

Vnesheconombank is funding the 2nd stage through opening a credit line worth 3.219 billion rubles for a period of 10 years as well as through the Banks participation in the Kaluga Region Development Corporations charter capital.

At present, the Bank has already funded the work in the amount of 2.5 billion rubles using the credit lines funds. In October of 2009, a small-unit assembly shop was commissioned at Volkswagen Rus Factory. A whole range of works to prepare an industrial facility of 195 hectares in area has been performed for Peugeot-Citroen Mitsubishi Automobiles in the Rosva industrial park. In April of 2009, automobile production was launched at Peugeot-Citroen Mitsubishi Automobiles. The auto components manufacturing facility in technnopartk Grabtsevo is soon to be fully equipped with engineering infrastructure.

The total amount on foreign investors investments in the regions economy was 27 billion rubles.

As a result of this projects implementation over a period from 2008 to 2019 the total amount budgetary tax revenues of all levels would amount to 80 billion rubles, 14 thousand new jobs would be created and 15rubles in private investments would be raised per one ruble in state investments in the project aimed at creating an autocluster.