Ivanovo region is located in the centre of the European part of Russia, three hundred kilometres north-east of Moscow. Its territory is 21,4 thousand sq. km. It borders on Vladimir, Kostroma, Yaroslavl and Nizhniy Novgorod regions.

     The favourable geographic position of the region promotes the development of internal and external economic and cultural links. Through the territory of the region there pass important automobile, railway and water highways, connecting Moscow and western regions with eastern and southeastern regions of the country.

     Despite the high level of manufacture, the region has a rather good ecological situation, which is important in modern conditions. It is one of the regions of Russia with the most favourable ecological conditions and has rich recreational opportunities, with water and wood resources, landscapes and medicinal springs. The region is a part of the Golden ring of Russia, a famous tourist route, numerous monuments of history and culture are concentrated on its territory. The most significant of them are the city of Plyos, the pearl of the Volga River, and the settlement of Palekh, the native land of famous lacquer miniature.

     The climate of Ivanovo region is moderate-continental. It is characterised by a considerably hot summer and frosty winter with a steady snow cover. The coldest month in winter is January with the average temperature of -11.5-120C, the warmest month of summer is July, with the average temperature of + 17.5 - + 18.7 0C.

     More than 200 lakes and about 2000 rivers are situated on the territory of the region. The largest river is the Volga with the Gorky water reservoir on it.

     The region is located on a joint of two zones: European taiga and mixed woods. As a whole, the woods occupy about 30 % of the territory of the region, meadows - about 10 %.

     The stocks of minerals in the region are insignificant. Deposits of clays and loams used in manufacturing building materials are available. In the central part of the region on the depth of 150-200 meters there lay mineral medicinal-table waters, which may be used for the treatment of gastric-intestinal and other diseases.

     The first mention of Ivanovo may be found in the year of 1561 and according to the legend it is connected with the name of Ivan the Terrible. The territory was known from ancient times as one of the centres of weaving and processing of flax in Russia. By the middle of the 18-century rich peasants began opening linen factories. The manufacture was gradually mechanised and equipped with steam machines and weaving looms. By 1860 about two thirds of the finished fabric came from them, and Ivanovo became the main textile region of the country.

     At the end of the XIX and the beginning of the XX century Ivanovo was one of the centres of revolutionary movement in Russia. Here in 1905 the Soviets - elective board, which later became the basis of political power in the former USSR, were born.

     Ivanovo region as an independent administrative unit was created on June 20, 1918 and obtained its modern borders in the after-war period. During all its history Ivanovo was a typical industrial region. In the 30"s and 40"s textile industry developed fast in the region, in the 50"s and 60"s - machine-building and other industries appeared. At the end of the 50"s and beginning of the 60"s Ivanovo was the centre of the Upper-Volga economic unit which encompassed the North-Eastern part of Russia.

     Life and activities of many outstanding public figures of the Russian history and culture are connected with Ivanovo lands. Among them counts Sheremetevs, poetess M. Tsvetayeva, architects Vesnin brothers, Russian dramatist A.N. Ostrovsky, a famous traveller admiral G.I. Nevelskiy, a great artist - I.I. Levitan, famous singer F.I. Shalapin, scientist N.N. Benardos, son and father Tarkovskis and many others.

     The industry of Ivanovo region has 287 enterprises of various branches. The main industry is light industry, which gives about 37 % of the total volume of the industrial output and employs more than half of all industrial workers. 69 textile enterprises of Ivanovo make annually more than 800 millions meters of finished fabrics, which is almost half of all Russian textile.

     The second important branch is machine building (37 enterprises). Each third truck crane produced in the country has Ivanovo mark. Ivanovo machine-builders make metal-cutting machine tools (including numerically controlled ones), excavators, weaving looms, combing machines, measuring devices, spare parts for automobiles and consumer goods.

     The enterprises of power engineering, woodworking, pulp-and-paper, chemical, building materials and food branches of industry are also developed in the region.

     Among the largest textile enterprises of the region are: JSC-s "Melanzh", "Rodniki Textile", "Cotton mills named after Samoilov", "Kohmatextile", "Teikovo-textile", "New Ivanovo Manufacture", "Big Ivanovo Manufacture", "Zinovievskaia Manufacture", "Shuiskiye Sittsy", "Ivanovo Worsted Mills" and "Yakovlevsky Linen Mills". Large machine-building enterprises are: JSC-s "Heavy machine-tool building", "Autoagregate", "Truck Crane", "Kranex", "Ivchesmash".

     Chemical industry is represented by JSC-s "Chemical plant named after Baturin" and "Zavolzhski Chemical plant"; furniture industry by JSC "Ivanovomebel"; food industry by the firm "Kumir", JSC "Krasnaya Zaria" (confectionery factory), JSC "Ivanovo Brewing Company".

     Food enterprises of the region produce meat and sausage, milk and margarine products, mayonnaise, confectionery, pasta, alcoholic beverages and bread products, flour, cereals and preserves (meat and milk).

     153 industrial enterprises of the region produce consumer goods, the amount of their production totals up to 64% of overall industrial output.

     The region supplies its production to all regions of Russia, CIS countries and to many other countries of the world.

     The main branches in agriculture are the production of potatoes, flax fibre, meat and milk cattle breeding. In the region they cultivate grain - winter rye, wheat, spring grain and leguminous plants (oats, peas, vetch), industrial crops (long-fibre flax, spring rape for seeds), vegetables (cabbage, carrots, beets), fodder crops.

     Cattle breeding enterprises and farmers breed cattle, pigs, sheep and goats. There are also poultry farms of meat and egg orientation.

     The amount of permanent population of Ivanovo region by the beginning of 2001 made 1.205 millions people, with urban population of 0.993 millions people and rural of 0.212 millions people. 82.4% of population live in cities and towns. The largest cities are: Ivanovo (452.1 thousand), Kineshma (97.9 thousand), Shuja (65.5 thousand), Vichuga (44.5 thousand), Furmanov (41.7 thousand).

     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 has 16th rate 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 holds 61st place among the subjects of Russian Federation.

     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 parameters of risk investments the region holds 42nd place in Russia among 89 regions. These parameters include economical index of risk - 78th place, financial index of risk - 65th and social index of risk - 40th.

     The regional investment legislation is highly evaluated too. It has 14th 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 labour potential - the area rating is 42 in Russia and it is 57.6% of total regional population or 721.2 thousands people. 24 % is engaged in industrial sector, 6.4% is in building enterprises and 3.4% - agricultural sector. Unemployment practically is not present. At the end of 2000 9.8 thousands people were registered in state social recruiting service and in the same period there were 7.6 thousands of vacancies in local enterprises. It is necessary also to mark that average salary that was acceptable for the businesses in the middle of 2001 was 1610 roubles.

     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 consumer market of Ivanovo region (63rd rate in Russia) has some positive tendencies. Since the end of 1999, there is tendency of growth of retail turnover. So, 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 realisation of goods 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-900, 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. For the last years the Chinese and Arabian businessmen show investment interest in textile machine building industry, agricultural production and wood processing. The investors from CIS countries are actively interested in investments in regional flour-grinding and bakery industry.

     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), Germany (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).