ECONOMIC POTENTIAL OF KRASNODAR - DOC

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					                                 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: info@bakar.ru
“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: tg-smp@mail.ru
“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: arm_bio@mail.kuban.ru
“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: info@novolit-jsc.ru




                                                              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: morport@coast.ru
“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: direktcom@keynet.ru
“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: mail@vistaport.ru
“Yejsk sea port” OJSC             5, Portovaya alleya Str., Yejsk,             Cargo transhipment
                                  Krasnodar region,
                                  353660, Russia
                                  tel.: +7 (86132) 2-67-14
                                  e-mail: info@yeiskport.ru
“Yejsk port elevator” OJSC        6, Plyazhnaya Str., Yejsk,                   Cargo transhipment
                                  Krasnodar region,
                                  353680, Russia
                                  tel.: +7 (86132) 2-65-01;
                                  e-mail: elevator@keynet.ru
“Importpishcheprom Enterprises”   4, Magistralnaya Str.,                       Cargo transhipment
OJSC
                                  Novorossiisk,
                                  Krasnodar region,
                                  353900, Russia
                                  e-mail: ipp@novipp.ru
“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: kubflot@mail.kubtelecom.ru
“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: lgt@yandex.ru
“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: mail@ncsp-net.com
“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: novoles@nle.ru
“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: cont@nvrsk.net
“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: novoship@novoship.com
“Sochi commercial seaport” OJSC   1, Voikova Str.,                  Cargo carriage
                                  Sochi, Krasnodar region,
                                  354000, Russia
                                  tel.: +7 (8622) 609-609
                                  e-mail: morport@sochi.ru
“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: flot@mail.kubtelekom.ru
“Temryuk – Sotra” CJSC         Sea Port, Temryuk,                                   Cargo transhipment
                               Krasnodar region,
                               353500, Russia
                               tel.: +7 (86148) 5-86-29;
                               e-mail: sotraport@vifl.ru
“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: tkstr@mail.kuban.ru
“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: porttuapse@tuapse.ru
“Tuapse commercial seaport”    1, Frunze Str.,                                      Cargo transhipment
OJSC
                               Tuapse, Krasnodar region,
                               352800, Russia
                               tel.: +7 (86167) 5-68-81
                               e-mail: portridina@tuapse.ru
 “Fleet NMTP” OJSC                  14-a, Portovaya Str.,                             Services of , bunkering
                                    Novorossiisk,
                                    Krasnodar region,
                                    353907, Russia
                                    tel.: +7 (8617) 29-22-24
                                    e-mail: info@flotnmtp.ru
 “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 t otals 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 o f
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.

				
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