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External Economic Activity / Cooperation between Krasnodar Region and foreign states

Cooperation between Krasnodar Region and the Italian Republic

The Administration of Krasnodar Region pays particular attention to the development of international and foreign trade contacts of the region with countries from the European Community.  The Italian Republic is a significant external economic partner of Krasnodar Region.  Intensive and fertile exchange of visits by delegations of the Region and regions in Italy, and as a result a positive trend in growth of trade turnover, bears witness to the dynamic development of bilateral partnership relations.

1 Stages of relations establishment. Exchange of visits by delegations of the Krasnodar Region and the Italian Republic. Presentations, congress and exhibition events.

24 February 2005 During a visit by a delegation of Krasnodar Region to the Italian Republic led by the Governor of the Region, Alexander Tkachev, a representation of Krasnodar Region was opened in Milan in Italy.  The Representative Office provides necessary support and assistance in establishing contacts between the Region, Italian regions and specialised associations, organises mutual visits, takes part in developing joint projects, and also monitors realisation of projects and the progress of cooperation in small and medium sized business. During the visit an Agreement on cooperation between the administration of Krasnodar Region and the Government of the province of Milan was signed.

3 to 6 September 2005 Krasnodar Region was visited by an official delegation from the Regional Government of Calabria with the aim of establishing of bilateral contacts in the tourist, transport and agrarian spheres. 

29 September 2005 In the building of the Milan Provincial Government a presentation of Krasnodar Region was given, setting out the potential development of the Region and opportunities for investment in the economy of the Region.  Live broadcasts were also made at the presentation from the Forum "Kuban-2005".

22 to 24 March 2006 A delegation from the Milan Provincial Government made a return visit to Krasnodar Region.  The aim of the visit was a meeting with heads of the Administration of Krasnodar Region and discussion of questions to do with developing cooperation in the fields of industry, agriculture, and tourism between Krasnodar Region and the province of Milan.

25 and 26 May 2006  The IX meeting of the Russian-Italian working group was held in Gelendzhik on creating industrial zones in Russia and cooperation in the sphere of small and medium sized business.  The Italian side was represented by a delegation led by the First Deputy Minister for Foreign Trade of Italy and Member of Parliament, Milos Budini, and in addition to members of the working group it included representatives of 50 Italian companies.

28 September to 1 October 2006 A delegation of managers from 17 major Italian companies led by the Deputy Head of the Krasnodar Region Representative Office in Italy Pierpaolo Lodigiani took part in the work of the Kuban-2006 at the V International Economic Forum.

22 to 23 January 2007 By invitation of the Vneshtorgbank representative office a delegation of the Marke Rossiya Business Association, which has the largest number of partners in Russia, made a business visit to Krasnodar Region.  The result of the visit was the signing of an Agreement of Intention for cooperation between the Marke Rossiya Association (the Italian Republic) and the Administration of Krasnodar Region on 13 March 2007 in Cannes (France).

18 to 22 May 2007 In Milan and Rome presentations of the economic potential of Krasnodar Region to political and business circles of Italy were made.  The official delegation was led by the Head of the Administration (Governor) of Krasnodar Region Alexander Tkachev.  Altogether during the presentation in Italy the management of the Administration of Krasnodar Region signed 14 agreements worth a total of €401.9.

20 to 23 September 2007  A visit by a delegation of representatives of political and business circles of Italy led by the First Deputy Minister for International Trade of Italy, Milos Budini in Sochi with the aim of taking part in the VI International Investment Forum took place.

4 June 2008 Pierpaolo Lodigiani, the Honourary Consul of the Italian Republic, took up his post in the town of Krasnodar. The competence of lord Lodidzhiani consular functions applies to the Krasnodar, Stavropol, Astrakhan and Rostov regions, the Republic of Adygea, Dagestan, Ingushetia, Kabardino-Balkaria, Kalmykia, Karachay-Cherkessia, North Ossetia - Alania and the Chechen Republic. The duties of Honorary Consul are to protect the rights and interests of citizens (individual and legal persons) of the sending state and the rights and interests of the Italian Republic as a whole. Also the duties of the Honorary Consul are to promote trade, economic, cultural and scientific relations between the sending and the receiving state and to promote friendly relations between states in accordance with the regulations of the Consular Convention between the Russian Federation and the Republic of Italy (Rome, 15.01.2001).

22 July 2008 The official opening of the Representative Office of the Italian Institute for Foreign Trade (ICE) took place in Krasnodar.

18 to 21 September 2008  Representatives of political and business circles in Italy took part in official events at the VII International Investment Forum "Sochi 2008", and a range of meetings were held with heads of regions in Russia and districts in Krasnodar Region with the aim of defining areas for realisation of investment projects.  The Italian delegation was represented by two display stands.

6 to 9 April 2009. Institute for Foreign Trade of Italy with the Italian Confederation of Industrialists and the Association of Italian banks organized the Italian business mission to Russia. On 6-7 April the Italian-Russian economic forum took place in Moscow. On 8 April business mission continued in the regions of the Russian Federation: Krasnodar Region, Sverdlovsk Oblast and St. Petersburg. The delegation of representatives from more than 90 companies specializing in the manufacture of agricultural machinery, food equipment, construction materials and equipment, as well as landscape design and gardening visited Krasnodar. The First Deputy Head of Administration (Governor) of Krasnodar Region Dzhambulat Khatuov spoke at the conference during the visit. In the afternoon, they had meetings with Italian business representatives of Krasnodar, Sochi and Rostov companies in the format B2B.

17-20 September 2009 The delegation of Italian business circles headed by Ambassador Extraordinary and Plenipotentiary of Italy Mr. B. Surdo took part in the activities of the VIII International Investment Forum "Sochi-2009". The Italian delegation was represented by the exhibition stand.

A draft agreement between the administration of Krasnodar Region and the government of Veneto on trade, economic, scientific, humanitarian and cultural cooperation is on approval in the Russian Foreign Ministry.

2 Indicators of foreign trade of Krasnodar Region with Italy

 

2004

2005

2006

2007

2008

2009

Turnover

98.3

176.5

433.8

509.8

564.9

375

Export

61.7

129.8

382.2

418.8

418.2

273,6

Import

36.6

46.7

51.6

90.9

146.7

101,4

Balance

25.1

83.1

330.6

327.9

271.5

172,2

According to Customs statistics in 2008 the foreign trade turnover of Krasnodar Region with Italy totalled $589.9 million.The total volume of exports reached $442.8 million, the volume of imports of goods totalled $147.1 million. Balance of trade is positive $295.7 million.

According to Customs statistics in 2009 foreign trade turnover of Krasnodar Region with Italy totalled $ 375 million. Balance of trade is negative - $172.2 million.

The main types of imported goods are:

  • machine engineering products ($ 15.3 million);
  • ferrous and non-ferrous materials (flat iron steel $9.2 million);
  • chemical products (mineral fertilizers - $7 million);
  • food products and raw materials (natural wine, raw tobacco, natural plants - $15.1 million).

 The main types of exported goods are:

  • mineral products (oil and petroleum products - $237.4 million);
  • chemical products (mineral fertilizers - $4.6 million);
  • ferrous and non-ferrous materials (iron semi-products $8.3 million);
  • food products and raw materials (oilcakes, solid waste, remains of starch production, sunflower oil, flax seeds - $12.9 million);
  • tanning raw materials (tanned leather - $0.7 million).

3 Businesses using Italian capital in Krasnodar Region

In Krasnodar Region 10 businesses with investment from Italy are successfully carrying out their economic activities. 

The main types of activity of the businesses are trade, furniture production, joinery, consumer goods, technical service of agricultural equipment and machinery, production and marketing of paint and varnish, buying and selling cars, spare parts and equipment, and organisation of servicing.

The largest and most successful businesses on the Region's market:

  • JSC "Laika" is located in Kushchevskoi District and practices in dressing. Products of this company is widely known outside the region;
  • LLC "Euro-Wood" is located in Seversky District and practices in woodworking and lumber production;
  • LLC "DorAmbiente" is situated in Ust-Labinsk District and practices in processing of metals;
  • Operational office of JSC "Bank lending to small business" in Krasnodar (Intesa) provides banking services;
  • LLC "Agroinvest Abinsk" practices in the cultivation of grain, technical and other crops;
  • as well as the companies LLC "Sadhus", JSC "Yg-Unigaz", JV LLC Italian paint factory "Domino", LLC " Kromver", LLC "Italy Finance".

Currently the following major investment projects are successfully implemented in Krasnodar Region. They are

  • Association of Furniture Industry of Italy "Federleno Arredo" began construction of plant of materials production made out the fine fraction (IRF) near Abinsk (Krasnodar Region). The cost of the project is 120 million euros. The panels of MDF (wood-based) are used for production of fronts for kitchens.
  • The project of plant for production of equipment for meat in Korenovsky District is under construction. Italian investor is company Rovani. Total investment is 175 million rubles.
  • Organizations of Agro-Industrial Complex of Krasnodar region cooperates actively with Italian companies "Agroinvest", "Gasparo Seminatrichi", "Merloni".
  • Currently, the Italian company "Investa Finance" SpA decided to increase the authorized capital of JSC "Investa Finance" (Krasnodar) to implement a number of investment projects in the region, including the installation of agricultural machinery.
  • In the first half-year of 2009 Department of Architecture and Town Planning of Krasnodar Region concluded an agreement with the company «Facadesign» (Italy) on projects with the use of innovative energy-saving facades in the residential and public construction (volume of investment is 4.2 million Euro).
  • The following Italian financial structures - Krasnodar branches of the banks "Unicredit" and JSC "Intesa" started to work actively with the active assistance of the Krasnodar Region Representative Office in Italy.

Municipality of Krasnodar held a meeting with the Italian company VELO SpA. During the meeting a protocol of intentions under which the parties intend to sign an agreement on building of a brewery in Krasnodar was signed.

The Italian company "Plan Team GmbH" from the Italian province of South Tyrol visited Tuapse District, held a working meeting with the administration of the district on the implementation of investment projects: "Construction of mining and recreation complex "Mountain Semiglavaya" and "Resort and recreation complex in. the village Aghoi". The result of the meetings is signing an agreement on cooperation between the company "Plan Team GmbH" and Administration of Tuapse District. There is a concept development of the project "Mining and recreation complex "Mountain Semiglavaya" together with the companies "Plan of Tim", "Technoalpin" and "Vita" (South Tyrol (Italy).

Italian companies specializing in the development of ski facilities of the South Tyrol visited Apsheronsk District. They are interested in the project "Establishment of a ski resort in the Highlands Lagonakskoe". This project will create all conditions for the establishment of the great ski center in the Apsheronsk District. It will be known both Russian and European ski resorts. 

Dozens of firms and agencies providing tourist services to residents of Krasnodar Region are working with Italian directions: excursion tours, holidays and congress tourism.

4 Humanitarian cooperation

The most intensive development of humanitarian cooperation of Krasnodar Region and the Italian Republic is in the field of culture and education.

In 2005 representatives of the Kuban State University of Culture took part in the 11th international competition of accordionists and finished as prize winners.  During 2006 and 2007 representatives of Kuban higher educational establishments took part in three scientific-practical conferences held on the basis of Italian universities in Cassino, Catania and Rome, and also in the international competition of accordionists in Lonciano.

In 2007 the Philharmonic Orchestra of the Krasnodar Region Philharmonic performed at a concert within the framework of the Young Russian Culture in Florence festival conducted by Pavel Aznauryan.

In the same year the Yuri Grigorovich Ballet Theatre carried out a range of performances in Italy.

In 2007 winners of the Young Palette competition founded by the Volnoe Delo charitable fund, the Administration of Krasnodar Region and the Ministry for Culture and Mass Communications of the Russian Federation undertook placements in museums in Italy (Rome, Siena, Florence, and Venice).

In July-August 2008 104 teenagers from various districts of the Kuban became participants in the Youth Summer in Italy art festival.  The delegation included representatives of the best art schools, winners of Regional, all-Russian and international competitions.

The Kuban thematic art exhibition with exhibits made of ceramic, woven straw and beads, icons and embroidery caught the interest of residents of the towns of Ferreira, Bazzano, San Giorgio and Milan, among others.

In the field of education cooperation with the Italian Republic is being actively developed between higher professional educational establishments and scientific research centers.  With the Italian university in Malta, Genoa, Naples, Turin, the Experimental Institute for agricultural research are working closely with the Kuban State University, the Russian Agricultural Academy, the all-Russia Rice Research Institute in Krasnodar.  Priority areas for cooperation are student and teacher exchanges, development of academic, scientific and cultural contacts and joint scientific research developments.

Twinning of the cities of Krasnodar Region and the Italian Republic: Krasnodar - Ferrara (since1965), Novorossiysk - Livorno (since 1969), Sochi - Rimini (since 1977), Anapa - Riccione (since 2008) are actively developed.

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