"ECONOMIC POTENTIAL OF KRASNODAR REGION Currently Krasnodar Region "
ECONOMIC POTENTIAL OF KRASNODAR REGION Currently Krasnodar Region is a leader in Russia on investment development pace and growth of the main industries: crop- yield and the output of grain crops, housing commissioning, trade turnover, construction operations scopes, transport, resorts and tourism development. At the same time the long-term credit rating is increasing from year to year. The industrial, construction, fuel and energy sectors, information and communication technologies sphere, as well as agro- industrial, transportation, resort and recreational and tourist sectors form the basis of Krasnodar Region productive forces. The last there activity directions (the agro-industrial, transportation, sanatorium-resorts and tourist sectors) conform to the priorities of socio-economic development of Russia and determine the special status of Krasnodar Region in the country economy. Industrial Sector The regional industrial sector is formed by three kinds of economic activity: minerals production, processing industries, production and distribution of electric power, gas and water. More than 9200 organizations including 900 large and medium- sized are registered in these spheres. The region produces oil, natural gas and construction rock products. The production of foodstuffs, oil products, construction materials, machinery and equipment plays the leading role in processing sector of the economy. More than 78.5% of processing operations’ shipments forms their share. Three oil refineries including the largest one Rosneft Tuapse Oil Refinery OJSC operate in the region. The food processing industry is the leader among the processing operations with its more than 2,200 operations providing for about 50% of shipments volumes. Share of the construction materials production industry in products shipments of the processing industries reached virtually 9%. More than 50 large and medium-sized enterprises of the industry manufacture products, which has international quality certificates for many items and is exported to foreign and CIS states (cement, gypsum boards, special reinforced concrete, metalware). The list of the enterprises includes Novoroscement OJSC, Kuban Gypsum-Knauf OJSC, Novokubansky Plant of Ceramic Wall Materials OJSC, Reinforced Concrete Products Plant CJSC. The region produces various machine-building products: metal-cutting and wood-working machine-tools, forge-and-press machine-tools, deep-well pumps, oil-producing equipment, machinery and equipment for agriculture and forestry. The production of equipment for photo-energy is developing intensively (solar batteries and solar modules). Kubanenergo OJSC is the main producer and supplier of electric and heat energy on the territory of the region. The energy system is formed by generating capacities of Krasnodar TETS (heat power plant), Sochi TES and two hydro-power plants. INDUSTRIAL EXPORT-ORIENTED ENTERPRISES OF THE KRASNODAR REGION Denomination Location Offered goods and services (HS Code) 1 2 3 Food-processing industry “Aurora” OJSC 7, 60 let Oktyabrya Str., Dry wine (2204) Sadovyi settlement, Krymsky district, Krasnodar region, 353358, Russia tel./fax:.+7 (86131) 62770; +7 (495) 783 74 63 “Armavirkhleboprodukt” OJSC 110, 30 let Pobedy Str., Flour, cereals, pasta, processed feeds for animals Armavir, Krasnodar region, 352924, Russia tel.: +7 (86137) 5-70-33; www.armhleb.ru “Europrodukt” LLC 90, Pobedy Str., Frozen fish fillet (0304), Promorsko-Akhtarsk, frozen fish (0303) Krasnodar region, Russia tel./fax: +7 (86143) 2-91-79; +7 (86143) 2-98-29 “Kaloria” Firm CJSC 100, Ukrainskaya Str., Cheese, cream cheese (0406), Starodereviankovskaya settlement, Kanevskoy district, fermented milk products (0403), Krasnodar region, Russia milk, cream (0403) tel./fax: +7 (86164) 7-15-31, +7 (86164) 68-3-66 “Sanoil – Bakar” LLC 57, Vorovskogo Str., Vegetable oil (packed) Armavir, Krasnodar region, 352900, Russia tel.: +7 (86137) 5-44-11 fax: +7 (86137) 5-44-66 e-mail: firstname.lastname@example.org “Soya” Firm CJSC 28, Mira Str., Soya processing equipment (8438), Krasnodar city, vegetable oil (1542), Krasnodar region, protein feedstuffs (2106) 350000, Russia tel.: +7 (861) 268-46-14; fax: +7 (861) 268-33-66 “Sochi meat-processing plant” 5, Donskaya Str., Sochi, Boiled sausages, small sausages, boiled-and- OJSC Krasnodar region, smoked sausages, smoked and cooked sausages, 354068, Russia hams, smoked products tel.: +7 (8622) 59-71-04 fax: +7 (8622) 559-725 APF “Fanagoriya” OJSC 49, Mira Str., Wines (2204), Sennoy settlement, balsam, vine planting stock Temruyksky district, Krasnodar region, Russia tel./fax: +7 (861) 483-87-47; “Meat-processing plant 47, Voronezhskaya Str., Sausages and similar products made of meat, M.Kholodtsov” OJSC Krasnodar city, meat by-products or blood, ready-to-serve food Krasnodar region, Russia products, prepared from the above (160100) tel.: +7 (861) 213-42-02 fax: +7 (861) 235-55-44 High technology products NPF “Kvark” LLC 69, Bazovskaya Str., Solar modules, solar power systems Krasnodar city, Krasnodar region, Russia tel.: +7 (861) 267-28-17; +7 (861) 255-22-86 “Saturn” OJSC 6, Solnechnaya Str., Solar and accumulator batteries for spaceships, Krasnodar, Krasnodar region, measuring instruments for such items and sets of 350072, Russia autonomous photoelectric power supply systems. tel.: +7 (861) 252-39-73; +7 (861) 252-39-90 “Solar wind” / “Solnechny veter” 69, Bazovskaya Str., Production of solar modules and photo power LLC Krasnodar city, systems Krasnodar region, 350000, Russia tel.: +7 (861) 267-28-13 Woodworking industry “Bondar” LLC 2а, Fabrichnaya Str., Oak barrels Apsheronsk, Krasnodar region, Russia tel.: +7 (86152) 2-23-54 “Jouns” LLC 131, Komarova Str., Veneer (4408) Apsheronsk, Krasnodar region, 352690, Russia tel./fax: +7 (86152) 25-909 “Les TG” LLC 4, 3rd Beregovoy per., Round wood; edge-surfaced and unsurfaced Yejsk, Krasnodar region, lumber, glued squared beams, lining boards, 353680, Russia floor board, glued boards, windows, tel.: +7 (86132) 200-62, block-house, terrace boards, etc. fax: +7 (86132) 200-63 e-mail: email@example.com “Nonna” Firm LLC 2, Maikopskoye shosse, Sawed veneer (4408), solder pads: oak, Belorechensk, beech – 4, 5 mm, furniture boards Krasnodar region, 352630, Russia tel./fax: +7 (86155) 55341 “Orman” LLC 48. Yudina Str., Sawn fir and beech goods Apsheronsk, Krasnodar region, Russia “Parma” LLC 15, Anapskoye shosse, Sawn goods: larch (9800), fir (9100), pine 5, Svobody Str., Novorossiisk, (9300) Krasnodar region, 353900, Russia tel.: +7 (8617) 67-17-95; fax: +7 (8617) 67-17-96 “Stroitel” LLC Timber products (sawn goods, round timber) Chemical industry “Armavir biofactory” FGUP 11, Mechnikova Str., Veterinary medicinal preparations Progress settlement, Novokubansky district, Krasnodar region, 352212, Russia tel.: +7 (8195) 2-12-11 e-mail: firstname.lastname@example.org “Euro ChemMinFertilizers” LLC Belorechensk city, Mineral fertilizers Krasnodar region, 352636, Russia tel.: +7 (86155) 2-31-31 www.belhim.ru “Kuban Polymer”LLC 2A, Gibridnaya Str., Primary forms of polymers Timashevsk, Krasnodar region, 352700, Russia tel.: +7 (86130) 5-85-77 “Kuban paints” Trading house 64, Khimicheskaya Str., Paints and varnishes: alkyd products LLC Labinsk, Krasnodar region, (diluted with organic thinners in assortment). 352506, Russia Acryl products (water-diluted in assortment) tel.: +7 (86169) 3-07-42; fax: +7 (86169) 3-15-39 “Neftechimservice” LLC 1A, Sakko and Vantsetti Str., Additives for petroleum products Novorossisk, Krasnodar region, 353901, Russia tel.: +7 (8617) 60-70-29 “Troitsk iodine plant” OJSC Neftepromploshchadka Str., Iodine (2801), iodides (2827), iodates (2829), Troitskaya settlement, iodine solutions (3004). Krymsky district, Krasnodar region, 353360, Russia tel./fax: +7 (86131)2-12-81; +7 (86131) 4-01-55 www.iod.ru “Unitpolymer” LLC 145/1, Starokubanskaya Str., Articles for transportation and packing Krasnodar city, of products (bags, ect.) Krasnodar region, 350050, Russia tel.: +7 (861) 210-03-45 Machinery, equipment “Armavir gas equipment plant” 319, Turgeneva Str., Production of gas water heaters LLC Armavir, Krasnodar region, 352902, Russia “BDM-Agro” LLC 1, Zakharova Str., Soil cultivating facilities Krasnodar city, Krasnodar region, Russia tel.: +7 (861) 210-04-86 “Kanevskoy plant of gas Promyshlennaya zona, Manufacturing of home gas equipment – equipment” LLC Kanevskaya settlement, domestic gas and electric stoves. Krasnodar region, 353710, Russia tel.: +7 (86164) 7-15-04 “Compressor plant” OJSC 14/2, Rostovskoy shosse, Compressors, applied for refrigerator equipment Krasnodar city, (841430), air compressors, transported on wheel Krasnodar region, chassis (841440), other volume rotor pumps 350072, Russia (841360), heat exchangers (841950), safety or tel.: +7 (861) 224-06-19; discharge valves (848140), other equipment 224-66-02 (848180) “Mekhpromstroy” OJSC 5, Repina Str., Krasnodar city, (8464) Machine-tools for machining of stone, Krasnodar region, ceramics, concrete, asbestos-cement or similar 350051, Russia minerals or cold glass machining tel.: +7(861) 255-44-27, 8479100000 – equipment for socially useful +7(861) 224-84-18 works, construction or other similar works “SP Sedin-Shiss” LLC 1, Zakharova Str., Multipurpose vertical turning NC machine-tools, Krasnodar city, vertical turning NC machine-tools, other vertical Krasnodar region, machines (8458), other parts and elements for 350007, Russia vertical machine-tools (8466) tel.: +7 (861) 268-71-14 Metallurgy and metal working “Novolit” OJSC 2, Revelskaya Str., Items made of ferrous and nonferrous metals, “Krasny dvigatel” Plant Novorossiisk, components and spare parts for vehicles, Krasnodar region, agricultural and railway machinery 353901, Russia Work pieces of cast aluminum house ware. tel.: +7 (8617) 27-76-86; Parts of railway stock brake systems, 27-76-86, 26-54-98 development and manufacturing of casting fax: +7 (8617) 27-76-86 accessories. e-mail: email@example.com Agriculture The agro-industrial sector is the main industry of the regional economy. Half of the regional able-bodies population is occupied in this sphere. Dynamic development of Krasnodar Region agro-industrial sector provides for the country food safety: the region possesses the richest resources of agricultural land, including black soil, the area of which occupies 4,805,000 hectares; the region ranks the first among the territorial entities of the Russian Federation on the output of grain, sugar beats, fruits and berries, and the second on sunflower seeds and honey production; the region ranks the second among the Russian Federation territorial entities on eggs, grass flesh and chicken meat (live weight basis) and the third on milk production. The largest enterprises in the sphere: Krasnodarsky Fat and Oil Plant OJSC, Tikhoretsky Meat-Processing Plant CJSC, Sochi Meat-Processing Plant OJSC, Medvedovsky Meat-Processing Plant OJSC and Diary Plant of Timashevsky District, “Kaloriya” Firm CJSC, Bonduelle Kuban OJSC, Abrau-Durso OJSC, branch No.1 of Moscow Beer and Soft Drinks Plant “Ochakovo” CJSC. The agro-industrial sector of the region, represented by diversified agricultural and processing enterprises with developed infrastructure, is the Russia largest manufacturer and supplier of agricultural products and raw materials. AGRICULTURAL EXPORT-ORIENTED ENTERPRISES OF THE KRASNODAR REGION Denomination Location Offered goods and services (HS Code) 1 2 3 “Aston Trading (Azov) Ltd.” Settlement Komsomolets, Wheat (1001), barley (1003) LLC Yejsky district, Krasnodar region, Russia tel.: +7 (86132) 2-58-77; fax: +7 (86132) 2-35-63 “Mix-line” LLC 10, Zapadnaya Str., Feed compounds, premixes Bryukhovetskaya settlement, Krasnodar region, Russia tel.: +7 (86156) 3-24-27 “Rosinteragroservice” LLC 56, Burgasskaya Str., Wholesale of grain Krasnodar city, Krasnodar region, 350000, Russia tel.: +7 (861) 262-22-44 Transportation Sector and Communication The transportation sector provides for the realization of foreign political and economic interests of Russia I the area of Black Sea and Mediterranean cooperation, makes a considerable contribution in enhancing the country territory “connectivity”. The regional seaports provide for direct outlet to international foreign trade routes via the Azov and the Black Seas and process more than 35% foreign trade cargos from Russia and transit cargos of Russian seaports, and serve about one-third of Russia oil export. Important railway routes of federal importance, directed towards the regional international seaports and the resorts of the Black and the Azov Sea, pass across the territory of the region. The pipeline transport is represented by international oil pipeline Tengiz-Novorossiysk and gas pipeline Russia-Turkey (Blue Stream). The system of Kubangasprom LLC main gas pipelines is rather developed, the line of Russia-Turkey gas pipeline passes across the territory. Total length of the gas pipeline is 1213, 317 km of which goes across the territory of Krasnodar Region. Air transport of Krasnodar Region is represented by four airports, three of them being international ones (Anapa, Krasnodar and Sochi). Over the last three years the geography of passenger transportation, including the international airlines, has expanded: flights to such countries like Austria, Germany, Greece, Italy, UAE and Turkey are made. Eight seaports operate in the region: Novorossiysk, Tuapse, Yeisk, Temryuk, Port-Kavkaz, Sochi, Anapa, Gelendzhik, as well as Krasnodar river port. Among regions of Russia Krasnodar region is among the ones mostly rich in electric and post communication facilities. Yuzhnaya Telecommunication Company OJSC is the main operator of local and distant telephone communication in Kuban. TRANSPORT EXPORT-ORIENTED ENTERPRISES OF THE KRASNODAR REGION Denomination Location Offered goods and services (HS Code) 1 2 3 “Anroskrym” OJSC 36, Lenina Str., Cargo transhipment, passenger transportation Temryuk, Krasnodar region, 353500, Russia tel.: +7 (86148) 5-81-55 “Freight motor transport - 1” 157, Sadovaya Str., Cargo carriage OJSC Krasnodar city, Krasnodar region, 350002, Russia tel.: +7(861) 255-36-70; fax: +7 (861) 255-35-46 “Gelendzhik sea port” CJSC 1, Pervomaiskaya Str., Cargo transhipment Gelendzhik, Krasnodar region, 353470, Russia tel.: +7 (86141) 9-45-98; fax: +7 (86141) 9-45-98 e-mail: firstname.lastname@example.org “Board of administrators – New 2, Shmidta Str., Yejsk, Cargo transhipment sea port” LLC Krasnodar region, 353680, Russia tel.: +7 (86132) 2-65-92; fax: +7 (86132) 2-73-73 e-mail: email@example.com “Yejsk – Port – Vista” LLC 4, Shmidta Str., Yejsk, Cargo transhipment Krasnodar region, 353685, Russia tel.: +7 (86132) 2-66-53; fax: +7 (86132) 2-82-73 e-mail: firstname.lastname@example.org “Yejsk sea port” OJSC 5, Portovaya alleya Str., Yejsk, Cargo transhipment Krasnodar region, 353660, Russia tel.: +7 (86132) 2-67-14 e-mail: email@example.com “Yejsk port elevator” OJSC 6, Plyazhnaya Str., Yejsk, Cargo transhipment Krasnodar region, 353680, Russia tel.: +7 (86132) 2-65-01; e-mail: firstname.lastname@example.org “Importpishcheprom Enterprises” 4, Magistralnaya Str., Cargo transhipment OJSC Novorossiisk, Krasnodar region, 353900, Russia e-mail: email@example.com “Stroykomplekt” Enterprises” 21, Sukhumskoye shosse Str., Cargo transhipment OJSC Novorossiisk, Krasnodar region, 353903, Russia tel.: +7 (8617) 27-78-19 e-mail: stroykomplekt @ mail.kubtelekom.ru “Kuban river shipping lines” 13, Ordzhonikidze Str., Cargo transhipment , OJSC Krasnodar city, passenger transportation Krasnodar region, 350063, Russia tel.: +7 (861) 211-05-02; fax: +7 (861) 268-19-92 e-mail: firstname.lastname@example.org “Lada-Gelendzhik-Trans” CJSC Port Kavkaz, Cargo transhipment Kosa Chushka settlement, Temryuksky district, Krasnodar region, 353560, Russia tel.: +7 (86148) 5-81-16 e-mail: email@example.com “Maktren – Nafta” CJSC 68, Ya.Fabritsiusa Str., Cargo transhipment Temryuk, Krasnodar region, 353500, Russia tel.: +7 (86148) 9-45-77; fax: +7 (86148) 9-45-90 “Novorossiisk commercial 14, Portovaya Str., Cargo transhipment seaport” OJSC Novorossiisk, Krasnodar region, 353901, Russia tel.: +7 (8617) 60-46-46; fax: +7 (8617) 60-22-03 e-mail: firstname.lastname@example.org “Novorossiisk bread-baking and 22, Elevatornaya Str., Transport service of cereals cargo handling cereal processing plant” OJSC Novorossiisk, Krasnodar region, Russia tel.: +7 (8617) 67-80-41 “Novoroslesexport” OJSC 6, Portovaya Str., Cargo transhipment Novorossiisk, Krasnodar region, Russia tel.: +7 (8617) 60-04-01; fax: +7 (8617) 61-44-99 e-mail: email@example.com “Novorossiisk terminal transport- 40, Chkalova Str., Cargo transhipment expediting enterprise” OJSC Novorossiisk, Krasnodar region, 353908, Russia tel.: +7 (8617) 67-86-69; fax: +7 (8617) 67-86-42 e-mail: firstname.lastname@example.org “Novoship” OJSC 1, Svobody Str., Vessel owner, recruitment and employment Novorossiisk, of vessel crews Krasnodar region, 353900, Russia tel.: +7 (8617) 60-16-02; fax: +7 (8617) 60-19-93 e-mail: email@example.com “Sochi commercial seaport” OJSC 1, Voikova Str., Cargo carriage Sochi, Krasnodar region, 354000, Russia tel.: +7 (8622) 609-609 e-mail: firstname.lastname@example.org “Rosneft-Tuapsenefteprodukt” 4, Industrialnaya Str., Acceptance, storage, shipment of petroleum LLC Tuapse, Krasnodar region, products to sea vessels 352800, Russia “Temryukmortrans” OJSC P.O.B. 32, Sea Port, Cargo transhipment Temryuk, Krasnodar region, 353520, Russia tel.: +7 (86148) 5-58-06; fax: +7 (86148) 5-58-12 e-mail: email@example.com “Temryuk – Sotra” CJSC Sea Port, Temryuk, Cargo transhipment Krasnodar region, 353500, Russia tel.: +7 (86148) 5-86-29; e-mail: firstname.lastname@example.org “Transport company “STR” LLC 75, Frunze Str., Krasnodar city, Krasnodar region, Export of auto transport services, international 350000, Russia automobile cargo carriages tel.: +7 (861) 253-99-90; 271 45 28; fax: +7 (861) 211-09-16 e-mail: email@example.com “Tuapse trade seaport” OJSC 2, Gorkogo Str., Cargo transhipment Tuapse, Krasnodar region, 352800, Russia tel.: +7 (86167) 7-10-18; fax: +7 (86167) 3-10-46 e-mail: firstname.lastname@example.org “Tuapse commercial seaport” 1, Frunze Str., Cargo transhipment OJSC Tuapse, Krasnodar region, 352800, Russia tel.: +7 (86167) 5-68-81 e-mail: email@example.com “Fleet NMTP” OJSC 14-a, Portovaya Str., Services of , bunkering Novorossiisk, Krasnodar region, 353907, Russia tel.: +7 (8617) 29-22-24 e-mail: firstname.lastname@example.org “Yugneftehimtransit” LLC Port Kavkaz, Cargo transhipment Kosa Chushka settlement, Temryuksky district, Krasnodar region, 353560, Russia tel.: +7 (86148) 5-81-37 Tourist and Recreational Sector Kuban is one of the most popular resort and tourist regions of the country. Nature and climate conditions of the region, unique for Russia, availability of progressive medical institutions and technologies, historic sightseeing create the potential for development of high-efficient, competitive tourist and recreational complex of international level, forming the positive image of the country at the international arena and providing for growing demand of the population in services, related to rest, treatment and tourism: climate in the region is one of the most favorable in Russia for dwelling and activity of a human being. Krasnodar Region is the warmest region in Russia, the average duration of sunny days during daytime totals 2300 hours a year; due to combination of favorable climatic conditions and availability of mineral water springs and curative mud Krasnodar Region is the most popular resorts and tourist region of Russia and virtually the only one in Russia seaside balneology and resort and recreational center; the potential of the sanatorium-resort and tourist complex of the region is realized at the expense of creation of a special economic zone of tourist-recreational type on the territory of the region. Health-resorts and tourist organizations of the region are capable to accommodate about 212,000 vacationers at once. Number of beds in the private sector, represented by individual businessmen, rendering temporary accommodation services on the territory of the Azov and Black Sea coast, accounts for 1,300,000. From year to year the volume of sanatorium-recreational and tourist and excursion services is growing. The unique recreational potential provides for the development of almost all kinds of resorts, tourism and recreation industry – the seaside, mountainous, Alpine skiing and balneology. All main sea resorts in Russia are concentrated in Krasnodar Region: Sochi, Anapa, Gelendzhik, Tuapse and Yeisk. The extreme kinds of tourism are rapidly developing. Small Business By the level of small business development Kuban is one of the first five leaders among Russian regions. Over the last three years the number of small business entities increased by 35,000, the goods and services output has more than doubled. Kuban small business provides for 14 percent of the tax proceeds to all budget levels. Currently one third of the population occupied in the economy of the region – about 600,000 people, 229,000 small business entities and farmers operate in small business sphere. Banking Sector At present time a market oriented banking sector, represented by 124 credit organizations, having more than 1000 additional offices in towns and district of the region, operates in the region. Krasnodar Region is the leader in the Southern Federal District both by quantity of functioning credit organizations and bank branches, and by a number of key indices of the banking sector activity. By the credit portfolio amount the region is stable in entering the top ten of regions of Russia. Insurance Market The market of insurance services is rapidly developing in the region. The insurance market plays significant role in providing for Krasnodar Region socio-economic development, is a necessary element of financial well-being and stability of the region. Attractiveness and degree of local insurance market development is determined a number of companies operating at it. There are 136 insurance companies operating at the market, having the network of more than 500 representative offices and agencies. By the number of operating insurance companies Krasnodar Region is one of five leaders in the country, being inferior only to Moscow, Saint-Petersburg cities and Moscow, Sverdlovsk and Samara Oblasts. Stock Market Currently securities за 90 Kuban enterprises are listed at two Russian stock exchanges, and in 2005 the number was only 12. At present some one hundred Krasnodar region enterprises are ready to enter the open stock market, and half of them are ready to be included in the quotation lists in the near future. Developed infrastructure of the stock market, represented by 72 professional participants of the securities market, contributes to this. Investment Activity The regional investment legislation is one of the most progressive in the country. The legislative base protects and guarantees the investors’ rights. The laws, providing for granting the government support to investors at the regional level, are in effect in the region. Considerable resources are envisaged in the regional budget for this purpose. In addition to that, investors can be provided with preferential conditions of land and other natural resources’ use, as well as they can receive property units, currently being in regional ownership, at preferential conditions. Resolution of the Head of the Regional Administration “On Procedure of Determining the Amount of Rental Payment for Lands in Government Ownership on the Territory of Krasnodar Region” envisages a decreasing coefficient to the rental payment for land: for the period of designing ad construction – 0.5. Tax benefits are granted to enterprises, investing own and attracted resources in implementation of projects with the status “approved”. Domestic and foreign investors have equal rights in obtaining tax benefits. Investment projects monitoring is envisaged as one of the government support forms for investors by Law “On State Stimulation of Investment Activity in Krasnodar Region”. The monitoring consists in the organization of current work by a special monitoring group for support of investors in implementation of investment projects, control over timely obtaining of the required approvals and permits by the investors, and resolution in the government and municipal bodies and organizations of Krasnodar Region. The leading industries in attracting investments are transport and communication, agro-industrial, sanatorium-resorts and tourist sectors, determining the priorities of the regional economy. The rating of Krasnodar region in the world business community is rather high: "Standard & Poor's" agency awarded the region with international investment rating at BB level (“positive” forecast). In addition to that, the region is included in the first seven Russian regions with the minor investment risks and ranks the second n the Russian regions rating for legislative activity in the sphere of investments. The regional legislation provides for transparency of the investment process, stability of the legal ground, protection of investor’s right as an owner, and provides for preferential conditions of enterprises operation during the period of an investment project implementation. Education Higher educational institutions of the region – are large educational-scientific institutions, carrying out training of specialists almost in all spheres of knowledge. 12 state higher educational institutions function in the region. They are – the state university, the agrarian and technological university, the university of culture and arts, the medical academy, the academy of physical culture and sports, Armavir Teachers’ Training Institute, Novorossiysk Maritime Academy, Sochi Institute of Resort Business and Tourism and the other. In addition to that, leading higher educational institutions of the country, such as the Russian Plekhanov Economic Academy (in Krasnodar), the Moscow State University of Commerce (in Krasnodar), the Russian People’s Friendship University (in Sochi) opened their branches in Kuban.