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. Last Updated: 07/27/2016

Regional Economic Digest



IRKUTSK REGION


KEMEROVO REGION


KRASNOYARSK REGION


NIZHNY NOVGOROD REGION


NOVOSIBIRSK REGION


SAMARA REGION


VOLGOGRAD REGION
















NIZHNY NOVGOROD REGION

The US Fund for Business Support is ready to invest $50 million for developing business training in Nizhniy Novgorod.

The agreement on the above was concluded during the recent visit of mayor Yu.Lebedev and a group of businessmen from Nizhniy Novgorod to the USA. Nizhniy Novgorod region was officially presented in the Ronald Reagan Center in Washington. The delegation had a number of meetings with the representatives of the World Bank and the American business circles. The latter showed a special interests in the region's business projects, elaborated especially for the visit to the USA. Thus, ten US companies working in the sphere of telecommunications, intend to set up cooperation with the "Nizhegorodskiye information networks" (Nizhniy Novgorod municipal communications company).
During their visit to Russia on October 11 the representatives of the US fund are to specify the small business companies, which will receive financial support.
Besides, an agreement was reached with the director of the "SABIT" program on the free-of-charge training of the specialists from Nizhniy Novgorod in America.
The World Bank management and the representatives of the international finance corporation showed interest in construction of underground in Nizhniy Novgorod. Mr.Lebedev announced the necessary scope of investments thereto at $90 million. The American party agreed to familiarize with construction of the underground and decide on the possible investments from their part. Besides, the US businessmen expressed intent to build a 4-star hotel in the center of Nizhniy Novgorod. A.Kuznetsov, director of "Electronica" company, supported the idea and stated he was ready to participate in the project and invest 50% of the necessary sums for construction.

"Nizhegorodskiy Rabochiy" (Nizhniy Novgorod), 05.10.00

On the budget of Nizhniy Novgorod region in 2000.

In the recent 9 months of 2000 the income of the Nizhniy Novgorod regional budget amounted to RUR 3,087,800 thousand, which equals to 81% from the plan for 9 months. The local budgets received RUR 4,333,100 thousand (94% to the plan). The total debt against the consolidated budget makes RUR 2.5 billion, including RUR 1.8 billion owed to the regional budget.
The debt against the budget increased by more than 2 times. This fact is caused by the slump in the liqueur and alcohol production, leading to reduced taxable base of the factories working in this sphere. It is notable, that Nizhniy Novgorod-based enterprises increased the total debt against the regional budget 2.5 times, those located in Dzerzhinsk - by more than three times. The growing debts against the budgets are accompanied by the increased salary debts. Thus, the aggregate salary debt against the budget workers amounts to RUR 187 million.

"Course-N" (Nizhniy Novgorod), October 2000

SAMARA REGION

"Plastic" (Syzran, Saratov region) received the ISO 9002 certificate.

Is it is known, the ISO 9002 certificate is the internationally acknowledged admission of the product to the world market. Up to 1998 the Syzran-based factory (Samara region) supplied automobile spare parts to AvtoVAZ, GAZ, UAZ, and other domestic motor works, which did not ask for "an international guarantee" of the product's quality. The ned for the certificate arose two years ago, when the new "Lada" and "Samara" automobile models manufactured in Toliatti started entering the world market.
The German company "TUVCERT", undertook preparing the factory for the international "exam". The company is known by its successful work at "Chelyabinsk plastic", Moscow Goznak factory and other large-scale chemical enterprises.
The Syzran-based factory is also ready for the test. The final decision of the certification audit will come out in the end of October 2000.

"Volzhskaya communa" (Samara), 07.10.00

VOLGOGRAD REGION

The federal program for social-economic development of the Volgograd region in 2001 - 2005 is being actively discussed.

The five-year plan stipulates the scope of financing of the industrial enterprises, agriculture, housing and social services. For the period in question the total industrial output is expected to increase by 45% the scope of agricultural production will rise by 50%.
As the money allocated in the federal budget for financing of the regional initiatives is not sufficient, the task of the regional administration is to persuade the government in the effectiveness of the program.
Recently the chemical industry showed a 30% increase in output. The enterprises face lack of liquid assets, prevailing over lack of investments. Thus the program stressed upon the products circulating in the open markets, with the utmost attention paid to locally produced tractors, drilling equipment and herbicides.
The program for development of the electric industry stipulates RUR 330 million of investments (with RUR 280 million to be donated from the federal budget), necessary for revival of the regional enterprises: "Akhtuba", "Electronmash", "Avrora". The project for bischofite is viewed as perspective: a Swedish company is ready to buy 100 thousand tons of the product.
To implement the program the regional administration intends to work close at hand with the business owners. The first step in this respect was made at the Volzhskiy piping factory: the factory owners, the top management and the regional administration entered an agreement, specifying the main requirements for common cooperation, aimed at developing the factory.

"Delovoye Povolzhye" (Volgograd), 09.10.00

VOLGOGRAD REGION

The Novosibirsk regional administration and "Promexport" to sign an agreement on promoting the regional defense products in the foreign markets.

In 2000 "Promexport" (the state-owned company dealing with export activities) signed several contracts with the Novosibirsk-based defense factories, including "Cathode" and the regional instrument-making factory, on deliveries of optical facilities to Canada and Vietnam. The total amount of these deliveries is $1 million. In August a delegation from "Promexport" visited Novosibirsk to familiarize with a number of local factories and participate in negotiations with Victor Kosourov, vice governor of the region. Presently "Promexport" plans to enter a full-value agreement with the regional administration. The agreement stipulates establishing cooperation and promotion of military and civil products in the external markets.

"Commersant Sibir" (Novosibirsk), 06-12.10.00

KEMEROVO REGION

Novokuznetsk aluminum factory drew business results for September 2000.

The plan for production of raw aluminum and consumer metal has been met. The technical and economic figures fully correspond to the plan. Compared with the similar period of 1999 production of raw aluminum has been increased, with the real output reaching 22,548 tons.
The anode discharge intensity corresponded to the plan, showing a 11 g per ton reduction from the year 1999. Besides, the factory reduced discharge of cryolite and other raw materials.

"Kuzbass" (Kemerovo), 07.10.00

KRASNOYARSK REGION

"Sibelectrostal" factory declared bankrupt.

External management has bee introduced at the factory for the period of 1 year. Oleg Smetanin, representative of the financial group "Alfa" (Moscow), which is interested in bankruptcy of the factory, was appointed external manager.
In 1997 the industry-investment company "Euroresource", holder of a major stake in "Sibelectrostal", undertook investing RUR 40 million into the factory's development. Nevertheless the real investment of the company amounted to only RUR 7.5 million.
At the same time "Sibelectrostal" began overcoming the crisis. That was the reason why the "Alfa" top management grew interested in the factory. The bankruptcy suit against the factory has been filed at the support of the regional administration. On August 10 the Moscow Arbitration Court obliged "Euroresource" to return 34% stock of the factory into the property of the regional administration, having admitted that "Euroresource" did not meet the conditions of the investment bid.
In present the factory's total debt amounts to RUR 101 million. By acquisition of the factory's debts, "Alfa" will become one of its major creditors - in fact, the factory's owner.

"Moskovskiy komsomolets" - in Krasnoyarsk" (Krasnoyarsk), 05-12.10.00

IRKUTSK REGION

Irkutsk region experiences a steady economic growth since autumn 1999 till the present day.

Recently the region was acknowledged the leading region in the Siberian federal subdivision by the tempo of industrial output growth.
The economic revival was manifested through increased output, reduced salary debts and growing tax gains of all level budgets.
It is notable that two regional monopolists ("Irkutskenergo and Angarsk oil and chemical company) show declined performance in that flourishing background.
Some economic destabilization is attributed to the recent election campaign, which is fully under way in the region. Thus, despite of the overall economic growth (in 1999 marked as 111.0%; reaching 111.1% in the first half of 2000), the output of the regional energy and oil refining enterprises started a notable slide. Thus, "Irkutskenergo", the main regional energy supplier, plans to reduce profit by RUR 822.2 million in 2000, which will inevitably lead to decreased income of the regional budget.

"Vostochno-Sibirskaya pravda" (Irkutsk), 07.10.00

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