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. Last Updated: 07/27/2016

Regional Economic Digest



Nizhniy Novgorod communications operators launched the new digital telephone relay station with expandable capacity.

The new telephone station allowed to satisfy the needs of above 400 subscribers. This is the sixth telephone station, launched in Nizhniy Novgorod for the recent 5 years

"Nizhegorodskiye Novosti" (Nizhniy Novgorod), 15.08.2000

Nizhniy Novgorod region posted economic performance in the first half of 2000.

The report of the regional administration summed up economic performance of 177 enterprises, which have entered an agreement on social-economic cooperation with the regional administration. The enterprises undertook duly salary payment, preserving the current number of employees, regular tax payments and increase of profits. The administration undertook support for credit acquisition, exhibition participation, reforming the enterprises and distribution of tax preferences.
According to the preliminary results of the first half of 2000, 85 enterprises didn't meet the requirements of the agreement. The aggregate salary debt amounted to RUR 83 million (sliding from RUR 95 million reported by March 1, 2000). Above one half of the enterprises failed to duly repay the debts. While RUR 315 million have been effected to the local budget, the debt amounted to RUR 354 million.
Nevertheless some enterprises succeeded in improving the financial and economic performance. Thus, aviation plant "Sokol" posted the industrial output growth index at 432%, followed by Kulebakskiy metallurgical factory (300%), "Transpnevmatica" (pneumatic equipment manufacturer - 290%), "Nizhegorodsakhar" (sugar producer - 275%). The profit reported by the factory of communication equipment named after Popov increased 13 times, that of "Krasnoye Sormovo" - 5 times, that of the factory named after Frunze - 4 times.
"GAZ", "PAZ", "Sokol" were acknowledged the leading enterprises according to the preliminary half year results. Borskiy piping factory, Grain mill 13, "ZMZ", "PAZ" showed good economic performance. Gorodetskaya ship-yard and some other factories are getting ready for reforming the structure; if their operation is successful, the regional administration will reimburse one half of the reforming expenses.

"Nizhegorodskaya Pravda" (Nizhniy Novgorod), 15.08.2000

Nizhniy Novgorod customs department closed the temporal storage warehouses of the Gorky automobile factory.

The reason for closing the warehouses were the debts of the factory against the State customs committee amounting to $12 million. The license for the warehouses, used for storing spare parts for the "Volga" automobiles, has been withdrawn for an indefinite time period. The situation may be clarified after the audit check to be executed by a special commission, appointed by the head of the customs department A.Pozharskiy.

"Nizhegorodskaya Pravda" (Nizhniy Novgorod), 15.08.2000


Bank "Energobank" increased the authorized capital from RUR 11 million to RUR 30 million.

Recently the bank successfully placed the second stock issue, so that the bank's shares were fully covered with money within a month. The new shares were distributed among the bank's clients, working with the bank for 11 years. The regional enterprises form the majority of the bank's clients, which speaks in favor of the bank's authority among the republic's leading industries.
In present the bank has above 100 stockholders and above 4,000 clients.
The report on stock issue was officially registered on July 27, 2000. The sums received from stock distribution were effected to the bank's correspondent account. The money will be directed to expanding the scope of services, increasing the number of investment projects, enhancing the bank's performance in the stock markets, and increasing the credit amounts and credit maturity period.

"Vriemya i dengi" (Kazan), 15.08.00


Zhigulievskaya poultry factory reported economic performance in the first half of 2000.

The recent decree of the arbitration court introduced external management at the poultry factory starting from February 2000. The external management did not help find a way out of the crisis. Recently the total amount of the factory's debt is RUR 71 million, including the RUR 43.8 million debt against the creditors (with RUR 30 million therein due to the Agency for Food market regulation).
On August 11 governor K.A.Titov summoned a meeting to discuss the model for effective poultry farming elaborated by the regional administration. The regional budget planned to grant a credit for restoration of the poultry factory, and the governor wanted to see in person, whether to grant the credit or not, and how the credit amount will be used.
According to the estimates made by the regional administration, in 2000-2001 the poultry livestock will reach 630 thousand birds, and the total number of eggs will make 108 million, provided that the scope of investment into the factory amounts to RUR 23 million. The factory will reach the high profitability operation. The regional budget will donate investments only on conditions that the profitability level reaches 60%.
The strategic plans for the Zhigulevskaya poultry factory and the potential of the regional poultry industry will be determined within a month.

"Volzhskaya communa" (Samara), 15.08.2000


The harvest of grain crops in Novosibirsk region exceeds the last year's level 22 thousand tons.

The above data was announced by the regional department on agriculture.
Recently grain crops have been collected at the territory 49 thousand hectares, which exceeds the grain-crop area, harvested by mid August 1999, by 2.5 thousand hectares. Recently the gross harvest of grain-crops exceeded 49 thousand tons. According to the agricultural department experts, the average yield is 18.3 centners per hectare, compared to 12.8 centners per hectare in 1999. The forecasted grain-crop yield this year will exceed the year 1999 figures by 40%.

"Vecherniy Novosibirsk" (Novosibirsk), 15.08.00

The Novosibirsk project institute "Hyprosviaz-4" obtained the right for construction of the new telephone highway Volgograd - Rostov-on-Don.

The Russian communication companies have been striving for this right for a long time. Finally the Novosibirsk project institute won the tender. The institute has purchased the necessary equipment and is going to start construction in the nearest future.

"Sovetskaya Sibir" (Novosibirsk), 15.08.00

Air Company "Siberia" opened a rep office in Sochi (Krasnodar region).

According to the company's press service, apart from ticket booking, the office will render tourist services at the Black Sea coastal area.

"Sovetskaya Sibir" (Novosibirsk), 15.08.00


The new management team at Novokuznetsk aluminum smelters (NkAZ) report results of their activities.

According to Andrey Korobko, first deputy director of NkAZ, the new team has all grounds to be proud of its performance. Half a year ago the huge aluminum factory was announced bankrupt. This year the management team reached all the planned targets for economic development. The total sales profit obtained during the external management period exceeds RUR 6 billion, showing a 350% rise from last year's figures. In the first half of 1999 the sales profit amounted to RUR 1.6 billion. The above achievements became possible due to the radical changes in the factory's economic policy. Last year the factory's main objective was rendering raw materials processing services, which led to decreased sales volume of the final products. Recently NkAZ gave away the tolling schemes and passed over to production of its own aluminum from purchased raw materials, thus lowering the cost of product and increasing the profit.
In the first half of 2000 the factory's net profit after tax amounted to RUR 700 million, showing the 600% rise from RUR 116 million in the similar period of 1999. The huge profit increase led to a 30% salary rise. Currently the average salary at the factory is RUR 8000, which makes it the regional leader by salaries paid. The current situation contributed to increased tax sums paid by the factory: In the first half of 2000 the total amount of taxes made RUR 150 million (above RUR 98 million to the municipal budget and about RUR 9 million to the regional budget), compared with RUR 7 million in 1999. Among the non-budget duties, the factory will effect RUR 44 million to the road fund, if taken alone. Besides, the portion of "real money" in the factory's payments increased ten times.

"Kuznetskiy krai" (Kemerovo), 15.08.00


"Borodinskiy" open mine approved participant of the "Progress through partnership" program and awarded the "Crystal Nika" price and honorable diploma.

General director Anatoliy Borchukov was admitted the director of the year and awarded the gold medal of the program, honorable watch and the diploma. The above decision was made by the coordination committee of the "Progress through partnership" program.

"Krasnoyarskiy rabochiy" (Krasnoyarsk), 15.08.2000

Several days left for submitting the feasibility study for the bid for gas condensate and oil extraction at Sabinskoye and Paiginskoye deposits.

So far there are two candidates to participate in the bid.

"Krasnoyarskgazprom" and "Vostokgazprom."

"Krasnoyarskiy rabochiy" (Krasnoyarsk), 15.08.2000

On the meeting of the board of directors at Krasnoyarsk coal company.

The participants of the meeting confirmed the agreements made earlier: on raising the fuel prices two times and the delay for debt payment, given to the Krasnoyarsk consumers. Nevertheless, in autumn 2000, during the peak season for coal deliveries, the regional energy supplier "Krasnoyarskenergo" will purchase coal on equal terms with the other customers of the company: at 96 rubles per ton.
The company management reported on the distressed financial state of the mining. Thus, Borodinskiy and Nazarovskiy open mines reported a RUR 120 million loss, attributed to the current coal prices.

"Komok-Ochevidets" (Krasnoyarsk), 15.08.2000


RAO "UES" to switch off electricity supply for Trans-Siberian railway.

RAO "UES" reached for the railways. In present the total debt of the Ministry of Communications against "UES" amounts to RUR 3.5 billion. Recently RAO "UES" started switching off electricity supply for the Trans-Siberian railway.
Nevertheless, Victor Borovskiy, general director of "Irkutskenergo" (the main energy supplier of the railway), noted, that the company does not belong to RAO "UES" and settles the debt problems by means of negotiations. Thus, switching off energy supply to the neighboring railways will lead to increased money turnover, but will not affect energy supply to the East-Siberian railway.

"SM Number one" (Irkutsk), 15.08.00


In the beginning of August "Akos" together with insurance company "Piramida" introduced the "Telephone on credit" client service.

>From now on the client can hire-purchase the telephone. The client selects any telephone model and pays 1/12 of the price. The remaining sum is effected within a year, at equal parts, without interest charged for delayed payment. Financial risk is insured by the client at 3.8% of the total cost of the telephone. The client should remain active within the whole period of the contract.

"Zolotoy Rog" (Vladivostok), 15-20.08.00 (weekly)

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