Results of the Activity / 2009

The results of foreign economic activity of municipalities of Krasnodar region in 2009

In 2009 municipalities of Krasnodar Region continue to expand its foreign economic relations less active than at the same period of last two years. It happened because of the unstable international economic situation. At the same time cooperation in the previously established connections continues. Long-term project has been realized. The region is actively visited by the foreign delegations.

1. Presentation of Krasnodar region abroad. Participation in national and international events.

The delegations of municipality participated actively in the following events:

International Agricultural Exhibition "Green Week 2009" held in Germany, Berlin in January 2009 (the participants were Belorechensky, Bryukhovetsky, Kalininsky, Kurganinsky, Pawlowsky, Temryuk and other districts). Our region was represented at the exhibition in Germany by 55 enterprises and organizations. The delegation of agricultural complex of the region visited the peasant-farmer alliance Sachsen-Anhalt, the company of growing and processing vegetables, livestock complex with the selective-breeding station.

Business meetings with Ms. P. Wernicke the Minister of Agriculture of Sachsen Anhalt were held during the exhibition. Talks with the leadership of the plant «VIERE» about possible deliveries of equipment for slaughtering and meat processing plants to the region were held, as well as meeting with the leadership of holding "Birch" on cooperation in the framework of preagreement, negotiations with the company «KWS» on cooperation of seed production and negotiations with the management of company "Dresdner" on establishment of the network of storage points in the region.

International Commercial Property Exhibition in Cannes "MIPIM 2009" from 10 to 13 March (the participants were Anapa, Gelendzhik, Krasnodar, Sochi, Tuapse district). During the exhibition Kuban presented to investors commercial and resort real estate, town planning and architectural concepts of the cities of the region, transport facilities and objects of engineering infrastructure. Krasnodar introduced a large-scale project "Reconstruction of the central part of the city". The size of the mock-up was 87 square meters and it was beyond comparison among over 2,000 exhibitors. Two priority projects - "Krasnodar transit" and "Eastern Industrial Zone" were also presented during the exhibition. On 12 March 2009 in the framework of traditional "Russian Breakfast" - a prestigious business event - Vladimir Evlanov, the head of the city of Krasnodar, presented the project Eastern Industrial Zone. The purpose of this presentation is the attraction of Russian and foreign investments to create industrial infrastructure of world class, to develop and support high tech industries.

Administration of municipalities of Gelendzhik, Yeisk, Crimea, Mostowski, Otradnensky, Primorsko-Akhtarsky, Temryuk districts participated in the International Tourism Exhibition "Intourmarket 2009" to present the investment attractiveness of the districts in the sphere tourism. The exhibition was held from 21 to 24 March 2009 in Moscow.

From 14 to 16 May 2009 on the territory of municipality of Ust-Labinsky district an international agricultural exhibition "Golden grain field" took place. More than 300 enterprises from 89 regions of Russia, from the near and far abroad, Ukraine, Belarus, Germany, Italy, Sweden, the U.S.A. brought more than 500 samples of agricultural machines. The exhibition presented a wide range of agricultural and special machinery, equipment for livestock, chemical protectants for plants, animal feed, as well as banking, leasing and insurance services for agriculture. According to preliminary data more than 14 000 people attended the exhibition. The main visitors were professionals of agro-industrial complex that is heads and managers of farms, experts of specialized universities and research institutes.

Other activities, which were attended by delegations of municipalities of Krasnodar region are:

• The International Grain Forum in Turkey (Yeisk);
• World Grain Forum in St. Petersburg in June 2009 (Tbilisky and Kalininsky districts);
• International exhibition of vouchers for children and family vacation "Anapa is the brightest sun of Russia" (Temryuk district);
• 15-th Jubilee International Tourist Exhibition "Resorts and Tourism - 2009" in Sochi (Temryuk district);
• South-Russian Spa Forum "Caucasian health resort - 2009" in Kislovodsk (Temryuk district);
• 5-th international specialized exhibition "Tourism, recreation and sport" in Voronezh (Temryuk district);
• International exhibition of wine production "ProdExpo" in Moscow (Temryuk district);
• Exhibition of Food Industry "Worldwide Food Expo 2009" in Chicago, USA (Kalininsky district);
• "Royal agroshow" in Yorkshire, the United Kingdom (Kanevskoi district);
• "Golden Autumn" in Moscow (Kanevskoi and Pavlovsky districts);
• International Building Exhibition in Paris, France "Batimat 2009" (Tikhoretsky district).

Within the International Investment Forum in Sochi the municipalities annually present their most profitable investment projects, conclude a number of agreements with foreign partners.

2. Visits of foreign delegations in the region.

Visits of foreign partners in the region are still active. Cities of Krasnodar and Sochi lead in the quantity, quality and level of ongoing meetings.

In 2009 in the framework of cooperation program with the twin cities and partners of Sochi the administration of Sochi has participated in 59 international events (International Children's Festival of Pop Song "SochiOlimpicStar", International Children's Pop Song Contest in Rome (Italy), visits of official delegations from Bulgaria, Germany, Great Britain, China, Netherlands, Finland, France, Czech Republic, Switzerland, Japan, the delegations of the Embassy of Italy, Kazakhstan, Canada, Lithuania, Netherlands, the USA and Thailand in Russia.

The administration of Krasnodar organized and held meetings and talks with official delegations from Bulgaria, Great Britain, Germany, Italy, Cyprus, as well as the embassies of Great Britain, Germany, Italy, Lithuania, etc.

It was a meeting and negotiations with the Director General of the Association of European Business in Russia Mr. Frank Schauff. Meeting of "The Business Club of the South of Russia" on-topic "Influence of brands of large companies on brand of Krasnodar" was held with the participation of the Southern Regional Committee of the Association of European Business in Russia and the regional business magazine "Expert YUG".

The administration of Krasnodar Region assisted in organizing the National Exhibition of the Republic of Belarus "Belarus-2009" held in Krasnodar from 12 to 14 February 2009.

Municipality of Krasnodar held meetings with Dutch company Philips, British company ARUP, Italian company VELO SpA, investor Golden Interstar (USA) on the question of construction of the plant for the production of digital television equipment. During the meeting with management of Italian company VELO SpA a protocol of intents was signed. According to the protocol the parties intend to sign an agreement on building a brewery in Krasnodar.

From 1 to 7 June 2009 representatives of the Administration of Krasnodar took part in the International Forum "Bridge of Foreign Trade between Turkey and the world countries 2009". It was held in Istanbul (Turkey) with the support of the Department of Foreign Trade in the Government of the Turkish Republic.

From 22 to 26 October 2009 an official delegation of representatives of the Administration of Krasnodar and heads of large enterprises of the city headed by the mayor of Krasnodar Vladimir Evlanov participated in the International exhibition of consumer goods "Offerta -2009". Firstly this exhibition was held in 2003. Since then the event annually attracts about 140,000 visitors. The main areas of the exhibition are agriculture, industry, tourism, resort, cooking, construction, design and fashion.

During the exhibition with support of the Department of Economics of Karlsruhe the Russian-German Exchange contacts took place. The aim of the Exchange contacts is to consolidate and develop external economic relations and experiences as well as promotion of Kuban goods and services in the European market. The total exhibition area of Krasnodar was 240 square meters.

From 23 to 27 September 2009 in the framework of the program the Days of Germany in Krasnodar under the auspices of the Embassy of the Federal Republic of Germany in Russia the Russian-German economic forum and Exchange contacts for the German and Russian entrepreneurs were organized. The Departments of Economic Development, Investments and External Relations of Krasnodar as well as LLC "Kommit Yug" organized the event.

As a result in 2009 in cooperation with foreign diplomatic representative offices, as well as in the framework of development of social, sport and educational projects, development of foreign inter-municipal and partnership links, enhancing the investment attractiveness of Krasnodar the meetings with 19 foreign delegations were held. The participation of representatives of the Administration of Krasnodar in eight events in Russia and abroad was also organized.

Administration of Tuapse district held working meetings with the Italian company «Plan Team GmbH» (Province of South Tyrol) on the investment project - construction of mining and recreation complex "Mountain Semiglavaya" and the French firm "SETEK Engineering" on the realization of investment projects "Resort and recreation complex in the village Agha" and construction of mining and recreation complex "Mountain Semiglavaya".

It is planned to sign a cooperation agreement between the company «Plan Team GmbH» and Administration of Tuapse district. There is a development of the concept and master - plan of the project "Mining and recreation complex Mountain Semiglavaya" jointly with companies "Plan Tim" (South Tyrol, Italy), "Technoalpin" and "Vita".

Delegation of Italian companies specializing in the development of ski facilities of the South Tyrol visited Apsheronsky district. They are interested in the project "Development of a ski resort in the Lagonaki Highlands". This project will create all conditions for the development of the great ski center in the Apsheronsky region. It will be famous both to the Russian and European ski resorts.

In May 2009 the delegation of the municipality of Goryachy Klyuch visited Baden-Baden (Germany) in order to stimulate the construction of thermal, spa facilities and familiarize with the used methodology and technologies. The delegation included the heads of health centers of the city and building organizations.

The Administration of Labinsky District met with a foreign partner («Greta Energy Inc.», Toronto Antalya, Canada). It was signed a number of agreements:

• a protocol of intents for construction of facilities for renewable energy with the company «Greta Energy Inc.»,
• an agreement on the introduction of lighting equipment for the organization of greenhouse vegetable production with the company "Royal Philips Electronics" (Netherlands).,
• an agreement  on investment in the economy of the region with the company "Strategy Partners",
• a protocol of intents in the development of hydropower with the company "ThussenKrupp".

3. Investment potential. The use of foreign technologies.

New projects continue to be realized along with its previously launched production with the participation of foreign capital and use of foreign technologies:

• The construction of the German company RRM GMBH Biodiesel plant LLC "RusBioDizel" in Armavir;
• French company "Saint-Gobain OBERLAND" realizes the project "Construction of the plant for the glassware production" in Bruhovetsky district;
• Turkish company «Doruk Grop», one of the largest flour producers in Turkey, visited the Kalininsky district to study the realization of an investment project for building a flour mill. Representatives of Turkish company studies and analyzes information;
• Major investment project "Construction of a glass factory" is successfully implemented jointly with the Turkish investors- the company "Anadolu Cam Sanayii AS" in the Crimean district. The first technological run of the plant has already been made and the output of products has already begun;
• Russian-German firm "KubanMash" continues to realize a joint project in Labinsky district of equipment production for producing foam and gas concrete blocks;
• Investment project "Construction of resort and entertainment complex" in Primorsko-Akhtarsky district invested by the German firm "Klassen-Immobilien"is under implementation.

Foreign equipment is delivered to the companies in Goryachy Klyuch (LLC Kaviar of Kuban, LLC New construction technologies), Kalininsky district (LLC Ellis-IT, LLC Kubanagro-Azov Sea), Mostovsky district (LLC KFH Chalova V.N .), Slavyansky district (JSC Slavyansky brick), Tbilissky district (LLC Center Soya), Tikhoretsky district (JSC PTF Tikhoretskaya, JSC Rodnik, JSC TMZ by V.V.Vorovsky, Ltd. Russian-German Enterprise Spetsmetallokonstruktcya) and others.

4. Export potential of the region enterprises.

The main problems of the enterprises-manufacturers in the period of economic and financial instability in 2009 are selling finished goods and high energy prices under the instability of purchasing prices for agricultural products.

At the same time it is a steady increase in food demand. One of the strategic goals of the state is improving the export politics of grain. Krasnodar Region tries to ensure its superiority in this issue.

Enterprises of Krasnodar region export production in the CIS countries, as well as international markets (JSC Bakery Tikhoretsky, FGUP Armavir biofactory, LLC Afipsky Refinery, LLC Afipsky Manufacturing Enterprise, JSC RITEKKubanneftemash, LLC Virage, JSC Vorovsky V.V. TMZ, etc.

One of the obligatory conditions for present-day's investors is clear development strategy of the municipality. The principles and norms of international management standard ISO 9001:2000 on the basis of the technical committee TC 176 IWA 4:2005 Quality Management Systems - Guidelines for the application of ISO 9001:2000 in local government (management systems of quality - Recommendations on the Application of ISO 9001:2000 in local government) are implemented at a number of municipal enterprises to reach the targets. These recommendations presuppose the existence of clear social and economic goals and development strategies, as well as the optimal organizational and structural model of local government body, promoting their effective implementation. Some uch enterprises are JSC Kropotkinsky Milk Factory and JSC Kropotkinsky MISPP plant.

In order to ensure access of potential investors to get information on investment projects and sites, regional, local laws and subordinated acts in investments, effective interaction with potential partners the municipal administrations have been active in the preparatory work: formation of the projects lists, development of the investment strategies, informing and consulting potential investors, using mass media, producing promotional materials, update information on economic and investment potential of municipalities.

5. Cultural and humanitarian cooperation.

In 2009 the municipalities of Krasnodar Region continued to develop actively the cultural, humanitarian and economic cooperation with its sister-cities and other municipalities in foreign countries. There are new agreements on twinning between Gelendzhik-Vitebsk (Belarus), Sochi-Volos (Greece), Novorossiysk-Ghawar (the Republic of Armenia ), an agreement on trade, economic, scientific, technical and humanitarian and cultural cooperation between Krasnodar and Poltava (Ukraine), a cooperation agreement between Armavir and Gomel (Belarus), a memorandum of intentions on the future development of relations between Krasnodar and Nottingham (UK).

Cooperation between the sister cities of Krasnodar and Karlsruhe develop most actively. The city target-program "International Relations and Protocol" has been approved for 2009-2013 years and realized in Sochi. It allows use more efficient partnerships with nine sister-cities. Contacts with twin-cities in the fields of education, health and youth politics are also active.

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