Krasnodar region in the EU map

Krasnodar region in the EU mapKrasnodar region in the EU map

Region ProfileRegion ProfileAdministrative centre: Krasnodar cityArea: 75 500 square kilometresPopulation: 5 101 100Gross regional product: ~ USD 20 billionGRP annual growth rate – 8,9%

International Long-Term Credit Rating:Ba1 (Moody’s Investor Service)BB- (Standard & Poor’s)BB (Fitch Ratings)Total investments per year (2006) – USD 5,24 billionForeign investments per year (2006)– USD 780 millionExport operations – USD 1,5 billion

Main sectors of economy - Agricultural productionTransport complexTourism

Situated in the latitude of Northern Italy and Southern France

Average longstanding air temperature: in January 0°C, in July +24°C

Strategic HighlightsStrategic Highlights

Sochi – 2014 Winter Olympic Games City

The Black Sea Coast – the most popular resort region of

Russia

Port of Novorossiysk - the biggest sea port in Russia, 38th in the

world

Hugest agricultural production complex in Russia

Strategy of DevelopmentStrategy of Development

Providing significant growth of quality of life in the Region through increasing

competitiveness of every economic unit

Strategy of Social and Economic Development of Krasnodar Region was written in 2006 and approved by Federal Ministry of Regional Development

Well-developed human potential

Sustainable economic growth

Effective government

Human potential: developing social infrastructureHuman potential: developing social infrastructure

Environmental protection

Population policy, children and maternity protection

Poverty reduction, social guarantees

National project “Health Care”

National project “Education”

National project “Affordable Housing”

Cultural needs satisfaction

Developing civil society

Increasing conditions of livingIncreasing conditions of living

Sustainable growth: the best place for investmentSustainable growth: the best place for investment

Expected investments in 2008–2013 ≈ USD 50 billions Expected investments in 2008–2013 ≈ USD 50 billions (including more than USD 20 billions for Sochi)

Private-public partnership Private-public partnership in developing in developing infrastructure:infrastructure:

• Special economic zones (SEZ) •Concessions in road building• Federal Investment Fund participation (ports and railroads)• Gambling zone

Active marketing:Active marketing:• Participating in main international investment exhibitions (MIPIM, etc)•Sochi International Investment Forum• Attractive conditions for foreign investors

Overall business climate:Overall business climate:• Support of small business• Managing land resources •Reducing administrative barriers

Expected GRP Growth Rate in 2008 ≈ 10%Expected GRP Growth Rate in 2008 ≈ 10%

Effective governance: a strong fundamentEffective governance: a strong fundament

Public Finance Reform:Public Finance Reform:• Middle-term financial planning• Monitoring of the effectiveness of budget expenditure • Target-oriented budgeting

Public Sector Reform:Public Sector Reform:• Increasing quality of public sector services• Optimization of Administration functions •Implementing performance management

Strategic and territorial planning:Strategic and territorial planning:• Developing strategies for economy sectors and municipal territories• Perspective territorial planning according to priorities of social-economic development

Target-oriented policy of the region administrationTarget-oriented policy of the region administration

Municipal developmentMunicipal development

Krasnodar Region consists of:Krasnodar Region consists of:• 47 municipalities• 11 city districts • 21 urban settlements• 1 717 rural settlements

Indisputable leaders among the 47 municipalities are Indisputable leaders among the 47 municipalities are cities of cities of Krasnodar, Sochi and Novorossiysk, Krasnodar, Sochi and Novorossiysk, providing about providing about 63% 63% of region business turnoverof region business turnover

Now all of the 47 local authorities are working on local Strategies for social and economic development

EveryEvery municipality made its own investment municipality made its own investment projects exhibition during the 2007 projects exhibition during the 2007

International Investment Forum in SochiInternational Investment Forum in SochiAlmost every of them had their stands on Almost every of them had their stands on

MIPIMMIPIM

Sochi: the most famous resort in Russia Sochi: the most famous resort in Russia Host city of White Olympic Games 2014One of the longest city districts in the world (145 km)The only one subtropical region in RussiaSummer residence of President of RussiaUnique combination of the sea resort and winter skiing resort (“Krasnaya Polyana”, 40 km from the centre of Sochi) Amount of tourists who visited Sochi in 2006 – 3 637 450The best choice for business tourism: every September international investment forum “Sochi” (former “Kuban”) is carried outFederal investment in building infrastructure for the Olympic Games - ≈ USD 10 billionAmong investment projects – man-made island “Federation”, ≈ USD 7 billion

The main task:1.Building the Olympic objects on time2.How to use all the Olympic objects after the Games?

Krasnodar: administrative and financial center Krasnodar: administrative and financial center Founded more than 200 years ago as Ekaterinodar (named after Russian empress Catherine the Great)Situated in the junction of major roads which link the centre of the country with the southern area resorts and portsPopulation: 780 000 Holds first place in the Region in quality of life, annual business turnover and budget revenuesMain economy sectors – manufacturing industry, house-building, retail, transportationAmong investment projects:• Reconstruction of the centre of Krasnodar (developed by Russian Scientific Research and Project Institute of Urban Planning, cost of the project – USD 0,8 billion)• “German Village” – construction of a new housing estate, designed in the spirit of small European towns

One of the main tasks:“Backing up” Sochi in providing resources for developing Olympic infrastructure

Novorossiysk: South Sea Gates of RussiaNovorossiysk: South Sea Gates of Russia40% of all transshipments in Russia go through NovorossiyskDeveloped construction supplies productionGeneral layout of the city (adopted in 2005):• reconstructing the industrial zone and the town centre;• further development of the transport system;• increasing port capacity;• construction of modern comfortable living accommodation.The most important investment project – Complex Development of the Novorossiysk Transport Bundle (amount of investments – USD 3 billion)The project includes government investment in increasing capacities of roads, railroads and wharfage

The main task:Providing all the necessary infrastructure for increasing capacities of the trade port and living accommodation as well

Primary task for the next two yearsPrimary task for the next two years

According to the Town Planning Code of the Russian Federation, every regional government must have its Scheme of Territorial Planning (based on strategic priorities) adopted till 2010

• 1 step: Working out a system of long-range priorities in social-economic development within strategic documents of Region and its municipalities;

• 2 step: Developing a complex Territorial Planning Plan of the Region, based on long – range priorities in social-economic development

• 3 step: Adopting General Plans for every township

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