ABOUT KRASNODAR REGION

Geographical Situation



Krasnodar region is one of the most rapidly developing regions of Russia. Geographically the region is located in the south of Russia. 740 kilometers of the total length of the border, constituting 1540 kilometers, stretches along the Black and the Azov Sea. Krasnodar region is located on the latitude of northern Italy and southern France. Kuban is the southern sea gate of Russia, an international transportation corridor, connecting Europe and Asia.

Regional economy



The basis of the economic potential of the region is formed by: the agro-industrial complex, transportation complex, diversified industry and resort and recreational complex. The sphere of consumer market is rather well-developed.

Factors, contributing to the economic growth of Krasnodar region:
- presence of well-developed clear strategy of the regional development;
- developed transportation infrastructure;
- perfect legislation for making business;
- availability of more than sixty minerals - from oil and gas up to construction materials, including 1.5 million hectares of woods, mostly consisting of valuable tree species;
- rich raw materials resource base, markets;
- well-trained labor resources.

It is necessary to add to all this political stability in the region, which is the guarantee for attracting foreign companies.

The main seaside resorts of Russia are concentrated in Krasnodar region, and in order to develop them the regional administration jointly with the world consulting agency McKinsey & Company have elaborated the strategy for development of tourist potential of the Black Sea coast of Krasnodar region till 2015.

Investment attractiveness



Krasnodar region ranks the 3rd in Russia after Moscow and Saint-Petersburg in terms of volume of foreign investments. Over the last 5 years more than EURO 14 B has been invested in the economy of the region. Based on the assessments of experts, in the next several years the economy of Krasnodar region is ready to accept EURO 35 B more in investments.

In order to attract more investors, the regional administration has elaborated a clear strategy of prospective development of Krasnodar region. The main priorities of the strategy are:
- maintenance of favorable investment climate for the development of real sector of economy, small business and attracting of investments;
- preparing of "green sites" for realization of business projects;
- rapid development of priority sectors of economy;
- state support of the priority investment projects, creating the multiplicative effect in adjacent industries;
- improvement of the regional legislative and regulatory base.

The priority regional investment projects determined in the framework of the strategy are as follows:
- creation of the network of motor-roads and toll highways on the territory of Krasnodar region;
- development of Krasnaya Polyana sanatorium-resort complex in the city of Sochi, which has been announced a candidate for holding the Winter Olympic Games in 2014, and in view of this the Government of Russia has accepted a concept of the Federal target development program of the city of Sochi till 2014.
- development of resort and recreational complex of Anapa city - the best children's resort in Russia. The development of beach zones and territories.

In 2004 international agency Standard & Poor's awarded Krasnodar region with international credit rating "B+ stable". In September of 2005 the company revised the forecast of changing the credit rating of Krasnodar region from the "Stable" to the "Positive".

The so-called "single-window service" currently operates in Krasnodar region. One can get the necessary range of services for organization of business in the region without leaving the building of the administration. Over the last year more than two thousand entrepreneurs took advantage of this service. And the period for passing of documents upon handling of licenses, agreements, land-surveying documents does not exceed three months. The project is supported at all stages of its implementation: from signing a protocol of intent up to launching new production.

The regional legislation protects business from political and economic risks.

The administration of the region has created a regional Investment Fund as additional mechanism to support investors, and the main purpose of this Fund is to implement major investment projects through attracting long-term direct investments and investing them in dynamically developing enterprises.

External relations



Annually the administration of Krasnodar region participates in international exhibitions. Expositions of the region are annually exhibited at international exhibition of the agro-industrial complex Green Week (Grune Woche) in Berlin, and at the commercial property exhibition (MIPIM), in Cannes. At the last MIPIM show one of the best stand was organized by Krasnodar region.

The administration of Krasnodar region has concluded a number of international agreements with regions of European Union and CIS countries. For example, in 2004 it concluded an agreement 'On Partnership Relationship' with the Government of the Land of Low Saxony (Federal Republic of Germany), and in 2005 it concluded two agreements with regions of Italy (with the Government of Milan Province Lombardia region and the Government of Calabria region)'On Cooperation in Trade-Economic, Scientific-Technical, Cultural and Humanitarian Spheres'. And just a few days ago in the framework of the Presentation of Krasnodar region in Austria Mr. Tkachev, head of Krasnodar region, signed an agreement of cooperation with Mayor of Baden city.

In order to inform the public about the investment potential of the region the regional administration appears as organizer of some forums and presentations. International economic forums "The Days of Krasnodar Region in Germany" are conducted every year, and in 2006 Munich, the capital of Bavaria, was selected the place to hold this forum. The dates of the forum are 17 - 20 May 2006.

Beginning from 2002 International Economic Forum Kuban has been conducted in Sochi, at the Black Sea coast of Krasnodar region. In 2006 the Forum is scheduled to be held from September 28 to October 1. In February of 2005 the presentation of the region for business circles from Italy was organized. The program of the presentation included opening of Kuban representative offices in the cities of Regio-Emilia and Milan in Italy.

Our partners



The well-thought-out and balanced policy of the regional authorities already gives good economic results. Two projects having world significance - the Goluboy Potok (Blue Stream) and CPC-R have been implemented on the territory of the region. More than eight hundred enterprises with investments coming from seventy countries operate on the territory of our region. The list of these enterprises includes such well-known companies as Knauf, Phillip Morris, Chevron, Nestle, Tetra-Pak, Radisson, Klaas, Bonduelle, and Metro.

Small - scale business



By the level of small business development Kuban is included in the first five among Russian regions.

One-third of the population, employed in the economy of the region, currently work in the sphere of small business. The share of small business in the volume of Gross Regional Product constitutes 35%.

The administration of Krasnodar region considers its main task for the next years to ensure the GRP growth at the expense of competitive ability of goods and services, produced on the territory of the region. In addition to that, the development of the sphere of innovations, transportation capacities, the agro-industrial complex and resort and tourist sphere are among the tasks of the economic policy of Krasnodar region. The regional authorities are to pay special attention to introducing the system of private-government partnership in the sphere of small business and development of investment activity.