3. Krasnodar Region Info

GeographyKrasnodar Region is the southernmost region of Russia.  The Krasnodar Region area is about 76 thousand square kilometers or 0.4% of total territory of Russia.  Its size is comparable to size of such European countries as Czech Republic and Ireland and it is bigger than Switzerland and Belgium or Denmark and Holland all together.  Krasnodar Region is situated on the latitude of Northern Italy and Southern France.  The area has very favorable soil and climate conditions.  The Black sea also provides strategic transport points to Eurasia’s biggest markets. Natural resourcesThe Kuban land possesses more than 60 minerals.  There are 68 oil-fields.  Annually 1.7- 1.9 million tons of oil and more than 2 billion cubic meters of natural gas are being taken.  The largest in Europe basin of fresh water is located in Krasnodar Region.  Salubrious Mediterranean type of climate, warm seas, unique natural mineral springs and medicative mud brought the Kuban land a fame of environmentally clean and popular tourist region of Russia.  Economy StructureThe region has a diversified structure of economic activities.  It is less industrialized than Russia as a whole, yet within its GRP it has higher shares of agriculture (17.2% versus 4.4%) and transport (16% versus 9%).   The Resort-and-Recreation Complex The Black Sea coast is traditionally the most popular summer resort for domestic tourists.  All of the main Russian sea resorts of are located in Krasnodar Region.  Macroeconomic Performance Economic trends in Krasnodar region are positive.  The growth of certain macroeconomic indicators in the region is significantly higher than the average growth in the Russian Federation. Consumer Demand Retail turnover has grown 12.3% (Russian average index is 12%) for the year of 2005 and amounted to RUR 7,342 million (USD 259 million).  Foreign Economic ActivityThe turnover has grown 1.0 billion or 34.5% relatively to 2004 (Russian average index is 32.6%).  The balance of trade turnover was positive and amounted to USD 202.2 million.  Social Features Demography According to December 1, 2005 data: ·         Total population of the region is 5097,1 thousand people. ·         The share of urban population is 52 .6% and rural 47.4% accordingly. ·         Average density of population is 67.07 persons per square kilometer.  Krasnodar region is the most populated region of Russian Federation and its share in total population of the country is 3.55%. Income Growth In 2005 indexes, reflecting population income level, have grown.  Real disposable income has grown 15.1% (2.9% in 2004) while Russian average index has grown 8.8%.  Employment Situation In 2005 the level of registered unemployment made 0.8%, what is lower than in 2004.  Russian average index is 7.7%.  In average there are 1.8 job vacancies for 1 unemployed.  Housing Situation In the beginning of 2006 the total housing stock was evaluated as 98.6 million square meters.  In average, there are 19.4 square meters of floor area for a region resident.  Average market price for a square meter at the residential real estate market in new buildings in the end of 2005 was USD 713.  By mid October it was USD 1,217. Labor Force The region skilled population can be considered as one of the important components of its rich resource base.Given the high educational potential, this implies an abundant and well-qualified labor force for potential investment projects. General Summary Krasnodar Region possesses a high investment potential and its investment climate is rated within ten leading regions ofRussia.  By the volume of investments it takes the 3rd place in Russia and the leading place among the SFD regions.