The economic forum in Sochi has brought 351 billion rubles of investment into the Region

Even in the conditions of the crisis the Kuban has managed to hold this event at the level of last year’s, ante-crisis, Forum.

Billions of investment

Today it is possible to talk of the results of the Sochi 2009 Forum, and to talk with pride. It went off even better than anyone expected. This can be judged not only by the number of participants, which was more than 8000, but also by the number of agreements signed. On 19 September the Regional authorities concluded 24 agreements worth more than 93.1 billion rubles. The municipalities in the Region reached 59 agreements to a value of 121.5 billion rubles, and the total result for 18 and 19 September was 177 agreements to a value of 351 billion rubles.

The intense work, negotiations and signing of agreements continued to the last minute of the Forum.

In the opinion of experts despite the current difficult economic conditions the Forum achieved the level of last year’s. This undoubtedly was the result of the properly drawn up work with investors. This is particularly important, after all the Region is fighting for each ruble of investment into the economy of the Kuban.

Cheap finance for Kuban residents

There were many important negotiations during these days. It is already known that the Savings Bank of Russia intends to continue profitable cooperation with Krasnodar Region. The largest public lending organisation will provide assistance to the Region in realising investment projects to construct affordable housing for local people.

The appropriate agreement was signed by Governor of the Kuban Alexander Tkachev and the President and Chairman of the Board of the Savings Bank of Russia German Gref.

The Savings Bank of Russia will direct around five billion rubles to financing of construction organisations building residential accommodation in the Kuban, as well as providing mortgages to residents of the Region on the most favourable conditions possible.

In its turn the National Association of Stock Market Participants is ready to take part in developing the financial and stock markets in Krasnodar Region.

Rosgosstrakh, a major finance company, announced its intention to continue developing the insurance services market at the Forum.

The project to develop the Azov City gaming zone was an area of particular attention at the Sochi 2009 Forum. The Administration of the Region concluded an agreement on cooperation and collaboration with the Association for Development of the Azov City Gaming Zone, whose creation was initiated by the Royal Time company which is building the first casino, Orakul, in the Kuban area of the gaming zone.

The Association intends to bring together the forces of investors in creating the gaming zone as good as any overseas model, as well as to assist development and introduction of new construction technologies and equipment in Azov City to the maximum.

Members of the Association are certain that effective development of the gaming zone on the principal of private-public partnership will be a powerful stimulus to growth of popularity of resorts on the Azov coastline in Krasnodar Region and of a stable flow of tourists.

Energy for development

As a result of agreements concluded at the Sochi Forum large scale investments will be directed to development of the fuel and energy sector in Krasnodar Region.

The Minneftegazstroi company will direct two billion rubles to construction of an oil refinery in the village of Akhtirskii in Abinskii District.

Krasnodarstroitransgaz is ready to take part in realisation of projects to construct main gas pipelines, water pipelines and storm water drainage systems in a number of municipalities in the Region. The total cost of these projects is 1.5 billion rubles.

Investors also announced their readiness to develop the port zone on the Azov and Black Sea coast of the Region. The Priazove Marine Transshipping Complex Managing Company will invest 3.6 billion rubles in construction of such a complex in Primorsko-Akhtarskii District.

In its turn Chernomorskie Skorostnie Linii will undertake the reconstruction of the sea port in Anapa. The investor plans to put more than two billion rubles into realising the project.

Large scale investments will be made by AlTBioT to carry out a project to construct a network of businesses to deep process low grade timber and produce pellets in the Region. The investor plans to build seven such businesses and to invest not less and 705 million rubles in each of them.

Interest in the Agricultural and Processing Sector

Business partners once gain confirmed their traditionally high level of interest in realising projects in the agriculture and processing sphere within the Region.

The Kubanskii Bekon company plans to build a full cycle beef and dairy complex in Pavlovskii District. The investor plans to put around 3.2 billion rubles into realising the project.

Projects to develop cultivation were also in the zone of particular attention. The Belaya Dacha Trading company intends to direct 200 million rubles to set up modern complex cultivation of various sorts of green leaf crops. The investor is certain that this ecologically clean Kuban product will be an acceptable alternative to those imported from Holland and Spain.

In its turn Anadolu Investment Company plans to set up a complex in Belorechenskii District to grow, process and pack agricultural products. For the first stage investment in this project will total 160 million rubles.

Business plans to direct resources to setting up a modern, environmentally friendly complex for sorting and processing solid domestic waste in the Region, with a section for recycling waste.

Ekostroi intends to build such complexes in Temryukskii and Dinskoi Districts. The volume of investment in realising these projects will total 290 and 550 million rubles respectively.

Affordable Housing

Construction of comfortable affordable housing in the towns and districts of the Region will be one of the results of work at the Forum.

The MK-Alyans company plans to build the Zelenii Bereg housing estate in the capital of the Region, Krasnodar. The investor plans to direct 900 million rubles to realising the project.

The housing estate in Belorechenskii District will also grow in the near future. The Rodniki-1 company has announced its plans to realise this project and will direct 360 million rubles to this aim.

Investors are ready to direct resources to construction of new resort, recreation, sporting and entertainment complexes on the Black Sea coast.

Agrofirma Kavkaz is ready to invest 10.6 billion rubles in a new resort and recreation complex in the suburbs of Anapa. The project envisages creation of a resort zone with all necessary social and engineering infrastructure and development of such promising areas as ‘wine tourism’.

In its turn the Ekspo company plans to build the Mandarin cultural-sporting-therapy complex in the Olympic capital, Sochi, at a cost of 370 million rubles.

The Volleyball-Yug company intends to build a recreation and therapy complex with leading edge courts in the resort town of Gelendzhik for beach volleyball competitions. The cost of the project is 240 million rubles.

Figures

61 agreements to a value of 130.8 billion rubles signed by subjects of the Russian Federation
177 agreements to a value of 351 billion rubles signed by Krasnodar Region
238 agreements worth 481.8 billion rubles signed in total
16400 square metres – the total area of the pavilions erected for holding Forum events
11400 square metres, including Krasnodar Region’s 2 000 square metres – the area of the displays

In addition

Delegations from 27 states took part in the Forum: Abkhazia, Austria, Australia, Armenia, Belgium, Belarus, Bulgaria, Great Britain, Hungary, Germany, Israel, Iceland, Spain, Italy, Iran, Poland, Serbia, Slovakia, Slovenia, the USA, Turkey, Ukraine, France, Finland, Switzerland, Sweden, and the UAE, including 11 Heads of diplomatic representations of foreign states, as well as business missions from European countries. High level overseas guests took part in the events at the Forum: President of the Republic of Abkhazia Sergei Bagapsh, President of the Republic of South Ossetia Eduard Kokoiti, Vice Prime Minister and Minister for Territorial Administration of the Republic of Armenia Armen Gevorkyan, Deputy Minister for the Economy of the Republic of Armenia Ara Petrosyan, Deputy Prime Minister of the Republic of Belarus Viktor Burya, Vice Premier and Minister for the Economy of Poland Waldemar Pawlak, and Minister for Foreign Trade and Development of Finland Paavo Vayurynen.

The largest delegations were those from Italy, Germany and Finland.

The participation of 54 subjects of the Russian Federation were registered. Delegations from 34 subjects were led personally by the Heads of regions, 21 regions presented their exhibition displays and 7 regions gave presentations at the Forum.

As part of the work of the VIII International Investment Forum Sochi 2009 Heads of the Region held a range of significant bilateral international meetings with the heads of the delegations from Armenia, Belarus, Poland and Finland;

With Heads of diplomatic missions from the USA, France, Italy, Hungary, the Ambassador of the United States John Beyrle, the Ambassador of the Republic of France in Russia Jean de Gliniasti, the Ambassador of the Italian Republic in Russia Vittorio Claudio Surdo, and the Ambassador of the Hungary Republic in Russia D Gilian;

And with representatives of foreign business:

Executive Director of the Committee on Eastern European Economic Relations Rainer Lindner
President of the American Chamber of Commerce Andrew Somers
General Director of Nestle Russiya Stefan de Loecker
A meeting was also held with the Vice Governor of Tversk Region Dmitrii Zeleninyi, during which the parties signed an agreement on trade economic, scientific technical, social and cultural cooperation.