INVESTMENT ACTIVITIES
The Krasnodar Territory has a high investment potential and is among the top Russian regions with the best investment climate. In terms of investments attracted, the Kuban area is in sixth place in Russia (3.1%) and in first place in the Southern Federal District (accounting for 34.5% of total investments in the District).
In the period 2001-2006, investments totalled 574 billion roubles, including 148.8 billion roubles in 2006, an increase of 115% on 2005 (the biggest growth in the last six years).
The bulk of investments (40%) go into development of transport and communications, as well as manufacturing (primarily production of building materials and foodstuffs), wholesale and retail trade.
Over the last six years, foreign investments have amounted to almost $2.4 billion, putting the region in 13th place in the country in these terms. Most investments have gone into the production of foodstuffs, transport and communications, wholesale and retail trade and the social sphere.
The Krasnodar Territory has a very high standing in the world business community: Standard & Poor’s has awarded it a B+ Positive international credit rating. The Territory is among the seven Russian regions with the lowest investment risks and ranks second among Russian regions in terms of law making in the investment sphere.
The result is that big Russian and foreign companies are implementing numerous investment projects in various spheres, which is having a positive impact on import substitution and production of fuel and energy. Many of the technologies that are imported on to the territory under these projects are unique.
All told, more than 800 enterprises from 70 countries invest here. They include such big names as Knauf, Phillip Morris, Chevron, Nestlé, Tetra-Pak, Radisson, Klaas, Bonduelle, Metro and others.
The Krasnodar Territory is a leading Russian region in terms of investment appeal. The rating agency Standard & Poor’s raised the region’s credit rating in 2007 to BB- Positive. The major Russian rating agency Expert put the Krasnodar Territory in second place among Russian regions in terms of investment climate in 2006-2007.
For several years, the Krasnodar Territory has been the leader among the regions of the Southern Federal District in terms of investment volumes attracted. In 2007, more than 200 billion roubles was invested in fixed assets in the region’s economy, with the bulk of that sum consisting of enterprise funds, borrowing and contributions by the population.
The competitive advantages of the territory, the stable political climate and the system of government support in place since 1999 have quickened the interest in the region on the part of foreign investors and businessmen. Investments in fixed assets have doubled over the last three years. The biggest investments went into the development of transport and communications, agriculture, the food industry, real estate, trade, public health and social services.
In 2007, about 12 billion roubles in foreign investments flowed into the economy of the Krasnodar Territory. Investments are coming from the US, Britain, France, Cyprus, Kazakhstan, Germany, etc. The main spheres of foreign capital investment are transport and communications (10%), manufacturing (16%), wholesale and retail trade; repair of motor vehicles, motor cycles, household appliances, etc.
The over 900 foreign-invested enterprises registered in the region include OAO Phillip Morris Kuban, ZAO Caspian Pipeline Consortium –R, OOO Nestle-Kuban, OOO Bondouelle Kuban-OOO Cargil-Yug, OOO Klaas, OAO Kubansky Gips-Knauf, ZAO Tetra-Pak-Kuban, Radisson SAS Lazurnaya, Metro Cash and Carry, Secab and many others, the Auchan retail network (France), the Leroy Merlin retail network (France) (construction is under way of a 17800 sq m retail centre in Krasnodar, where more than 300,000 types of building and finishing material will be on sale). The company Prokon Energisystme GmbH (Germany) is building a rapeseed oil plant in the Mostovsky District at an estimated cost of 244 million roubles.
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