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. Last Updated: 07/27/2016

Regional Economic Digest



IRKUTSK REGION
KEMEROVO REGION
KRASNOYARSK REGION
NIZHNY NOVGOROD REGION
NOVOSIBIRSK REGION
PERM REGION














NIZHNY NOVGOROD REGION

Textile and light industries of Bogorodsk (Nizhniy Novgorod region) reported business results for the first half of 2000.

Both industries reported improved economic performance compared with year 1999. In the first half of 2000 the total output amounted to 0.85 billion, while the total output in the whole 1999 amounted to RUR 1.1 billion (calculated in current prices). The growth tempo over the first half of 1999 made 168.8%. The physical growth ratio made 146.1% (for comparison, the same ration for the industry in general makes 111.4%).
The portion of the light and textile sectors in the regional industry makes only 1.9%. Thus, light industry may by no means be called the region's visit card (for comparison, in 1990 the portion of light industry made 13%).
In the first half of 2000 the regional light industry enterprises showed a slide in the profitability rate from 9.2% in the first half of 1999 to 5.9% in the first half of 2000. The current situation is attributed to the growing expenses for fuel, electricity and water supply. It is impossible to increase prices for the final products because of the low clients' solvency. Besides, the poor state of industry is caused by the fact that the Defense Ministry and the Ministry of Internal affairs set low purchase prices for the light industry products.

"Nizhegorodskiye Novosti" (Nizhniy Novgorod), 23.08.2000

The European Bank for reconstruction and Development may become the major stockholder of "GAZ."

On August 23 the "Motor-show 2000" will start in Moscow. GAZ will participate in the automobile show, though it will not exhibit any new models. The factory management expects that the factory's exposition will cause interest of attendants of the exhibition.
According to the unofficial information the European Bank for Reconstruction and development will announce the bank's becoming the major stockholder of GAZ. The current $80 million debt of the factory on EBRD credit, granted for launching two paint complexes made by Haden, will be converted into shares.
The case is unprecedented for the Russian automobile industry. First, the bank granted considerable credits unsecured by the Russian government. When the credit maintenance became complicated as a result of the financial crisis of 1998, the bank agreed on closer cooperation, as it was unwilling to loose the partner. Last year the board of directors of EBRD was to make the final decision on the above issue, but it was delayed till September 2000.

"Nizhegorodskiy Rabochiy" (Nizhniy Novgorod), 23.08.2000

PERM REGION

"LUKOIL-Perm" posted business results for the first half of 2000.

In 1999 "LUKOIL-Perm" was acknowledged the biggest regional tax-payer. The same tendency is likely to remain in 2000. According to Alexander Bulgakov, first deputy general director on economics and finance, the considerable growth in the company's potential is backed by the general improvement in the economy, particularly by increased world oil prices, as the company's export makes 40% from the total sales values.
In 1999 the total gains of the company rose 4.2 times over 1998. The key economic figures showed a 1.2-1.5 times rise, the key financial results - the 2-2.5 times rise. In 2000 the estimated gains will increase 2 times to the total of RUR 20 billion.
Improved financial results inevitably lead to growing tax payments. Thus, in 1999 the company effected RUR 2.6 billion of taxes, while in the first half of 2000 the total amount of taxes exceeded RUR 2 billion. The portion of the company in the total structure of the local budget makes 20%.
Apart from the growing world oil prices, the major improvement of the company's financial results is also attributed to the constantly growing business performance of "LUKOIL-Perm" in the Russian market. The company does not limit its activities to oil extraction, but also deals with oil purchase, oil refining and sales. Within the recent 2 years the total volume of purchased oil exceeds 1.5 times the volume of oil extracted by the company. This fact allows the company to increase the taxable amounts.
The favorable financial performance enables the company to increase expenditures on investment projects. In 2000 RUR 2.4 billion will be allocated to investment profit out of the total profit after tax rated at RUR 3.6 billion. The expenditures on investments show the 2.3 times increase over 1999.

"Mestnoye vriemia" (Perm), 23.08.00

Perm region and the Ministry of economy, transport, agriculture and wine-farming of Reinland-Pfalz (Germany) signed an agreement on cooperation.

The official ceremony for signing the agreement took place in the Perm regional administration premises on Monday, August 21.
The regional administration expects that the new contracts will be signed based on the above agreement. The first step towards cooperation is the financing scheme for the pilot project "Modernization of the meat industry equipment", which will be elaborated by "Autoterm GmbH" (Germany) and "KELMI" (Perm region).

"Zvezda" (Perm), 23.08.00

KEMEROVO REGION

The polymer coating line launched in the consumer product workshop of the Kuznetsk metallurgical factory.

Polymers with high operating characteristics may be used for coating of metal crockery, furniture parts, roofing metal, elements of railway joints, metal products used in aggressive environment. The new technology allows using a wide color spectrum. The polymer has the life time of 20 years. The new material is 1.5-2 times cheaper than the standard zinc coating. The technology stipulated environmentally safe production. The new line will employ 30 people.

"Kuzbass" (Kemerovo), 23.08.00

The administration of Leninsk-Kuznetsk considered the plan for additional earnings mobilization and expenditure decrease for the year 2000 budget.

As a result of the planned actions implemented this year the economic gains amounted to RUR 26.5 million. In the first half of 2000 the funds allocated for salary payment were increased 3.5 times compared with the first half of 1999.

"Kuzbass" (Kemerovo), 23.08.00

NOVOSIBIRSK REGION

The pre-serve workshop resumed operation at Novosibirsk fish factory.

The workshop produced over 1.5 thousand herring pre-serve sets over a week. The overall volume of production of the factory increased over the several months to have reached 65 tons in July 2000. The factory's own fleet is constantly fishing bream, zander and burbot. Besides, the factory purchases perch, ide, sazan and Khanti-Mansi pike.

"Sovetskaya Sibir" (Novosibirsk), 23.08.00

The aggregate balance of the regional banks rose 27% over the first half of 2000 to have reached RUR 18.5 billion.

Besides, the aggregate assets and resources of the regional banking system also showed a growth tendency. Thus, by July 1, 2000 the aggregate resources reached RUR 11.9 billion, up 34% over the beginning of the year. The above information was announced by the Chief department of the bank of Russia on Novosibirsk region. The representatives of the department stressed that the overall financial dynamics show the strong growth tendencies.

"Vecherniy Novosibirsk" (Novosibirsk), 23.08.00

KEMEROVO REGION

The polymer coating line launched in the consumer product workshop of the Kuznetsk metallurgical factory.

Polymers with high operating characteristics may be used for coating of metal crockery, furniture parts, roofing metal, elements of railway joints, metal products used in aggressive environment. The new technology allows using a wide color spectrum. The polymer has the life time of 20 years. The new material is 1.5-2 times cheaper than the standard zinc coating. The technology stipulated environmentally safe production. The new line will employ 30 people.

"Kuzbass" (Kemerovo), 23.08.00

The administration of Leninsk-Kuznetsk considered the plan for additional earnings mobilization and expenditure decrease for the year 2000 budget.

As a result of the planned actions implemented this year the economic gains amounted to RUR 26.5 million. In the first half of 2000 the funds allocated for salary payment were increased 3.5 times compared with the first half of 1999.

"Kuzbass" (Kemerovo), 23.08.00

KRASNOYARSK REGION

This winter "Krasenergo" will supply electricity only to enterprises having completely repaid the debts.

The above announcement was made by the press service of "Krasenergo", the regional energy supplier. "Krasnoyarskenergo" threatened to dismantle heat pipelines and power-lines leading energy to defaulters. The major defaulters have been already listed. The major debtors include the River port, AZSK, "Krasnoyarsktekhobsluzhivaniye". The power-lines and heat pipelines will be assembled only after the debtors repay the total amount of debt plus the cost of dismantling and assembly works.

"Segodniashniaya gazeta" (Krasnoyarsk), 23.08.2000.

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