Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Regional Economic Digest



Energy tariff rise will have a negative effect on the regional budget.

The Law "On the regional budget for 2000" stipulated energy tariffs increase by not more than 20%. Meanwhile, the av-erage increase made from 50% to 100%, depending on the category of energy consumer, which led to the RUR 60 million rise in budget expenditures.
Besides, increased energy tariffs cause avalanche-like growth in prices for engineering products, which has a negative impact on the industry development. According to A.Tsapin, chairman of the committee on industry and business, in present the cost of raw materials at the automobile factory makes 80% from the cost of the final product, which is directly attributed to the increased energy tariffs.

"Birzha" (Nizhniy Novgorod), 134, August 2000, (weekly)


The assets of "Volzhskoye Khimvolokno" sold off for RUR 153,561 thousand.

As expected, "Sibur" acquired the company. The bid took place on August 25, as it was planned earlier. Shortly before the bid the Kazan Court of Appeal approved of the earlier decision of the Volgograd arbitration court, admitting the stockholders' decision to sell off assets in "Khimvolokno" to "Caustic" void.
This time there were two participants of the bid: "Azot" (Kemerovo) and "Sibur". The initial offer amounted to RUR 149,561 thousand. The step of the bid was RUR 4 million. Acquisition took place at the second step.
The new owner will receive the full rule over the company within one month. Pursuant the general agreement signed between "Gazprom", "Sibur" and governor N.Maksiuta in March 2000, Volgograd region will be co-owner of the company: 25% + 1 share (the blocking share) in "Volzhskiye khimvolokno" will be passed over to the Volgograd regional administration in reckon of the company's debt on taxes and duties against the local budget. Yuriy Prozovskiy, chairman of "Sibur" said that this matter is being negotiated recently before the final decision will have been made.

"Delovoye Povolzhiye" (Volgograd), 01.09.2000


"Tatneft", one of Russia's leading oil companies, marked its 50th anniversary.

Within these 50 years the company extracted about 2.7 billion tons of oil. Recently the company is extracting oil at 52 deposits: with the main deposit - Romashkonskoye -considered the biggest oil deposit in the world. "Tatneft" is Russia's fourth leader by the volume of oil extraction, with its portion in total volume of oil extracted in Russia making 8%. In the wold oil business.
"Tatneft" has the 30th position by oil extraction volumes and 18th position by oil storage.

"Vriemia i dengi" (Kazan), 01.09.00


Each third ruble in the Perm regional budget was obtained from oil industry.

Each fifth ruble was gained from Oil Company "LUKOIL-Perm."
The annual scope of investment made by "LUKOIL-Perm" into oil extraction averaged to RUR 1 billion. This sum is expected to increase twice in 2000. In present the company exports 40% of extracted oil, with the remaining oil being sold in the domestic market.
In 1999 the company's revenues rose 4.2 times over 1998. This year the total revenue will increase twice to RUR 20.1 billion.
In the first half of 2000 the company effected RUR 2 billion to the federal, regional and local budgets. The portion of "LUKOIL-Perm" in the regional budget makes 20%, which makes the company the major tax-payer of the region.

"Permskiye novosti" (Perm), 01.09.00

"Permtransgas" posted business results for 8 months of 2000.

Recently "Permtransgas", former subsidiary of "Gazprom" specializing in gas transportation, became independent joint stock company.
According to Victor Chichelov, general director of "Permtransgas", in the 8 consecutive months of 2000 the plan for gas transportation was implemented at 102.9%.
The company delivered 213 billion cubic meters of gas, with the plan estimate at 207 billion cubic meters. The total amount of taxes effected to the federal, regional and local budgets, made RUR 714 million from the beginning of 2000.
Nevertheless, pursuant the recent inter-industry audit, the company is yet to pay additional RUR 1.2 billion to the federal budget, RUR 252 million to the regional budget and RUR 427 million to the local budget. The salary debt is overdue since July 2000. The company's management is obliged to take a loan from "Gazprombank" to cover the company's payments to the local budget.

"Zvezda" (Perm), 01.09.00

"LUKOIL-Permnefteproduct" is acknowledged the main oil product supplier of the Perm region.

In the seven months of 2000 the company delivered the total of 375,717 tons of oil products to the regional enterprises.
In present the company integrates 6 petroleum storage depots, located in Perm, Kungur, Chaikovskiy, Mendeleev, Chernushka and Solokamsk, and the center for technical maintenance of the oil depots and petrol stations. The company trades petrol and diesel at 114 petrol stations. Recently the new oil storage depot was launched in Perm. If loaded at 100%, the depot can fully satisfy the regional demand in oil products.
Recently the head office of "LUKOIL" entered an agreement with Perm regional administration. The company undertook fuel and lubricants deliveries to the regional agricultural enterprises at special prices or on barter terms.
The works on the agreement are fully under way. The company increases the scope of products. Thus, if in the seven months of 1999 the total incentive amounted to RUR 4.582 thousand, in 2000 the above figure reached RUR 49.676 thousand.

"Zvezda" (Perm), 01.09.00


The local agricultural enterprises harvested above 600 thousand tons of grain.

The data was submitted by the department on agriculture at the regional administration.
By the end of August grain was thrashed at 20% of the agricultural lands. The best results were reported by the agricultural enterprises of the Vengerovskiy district, which thrashed above 33% of the grain sown this year. The gross crop yield exceeded 34 thousand tons.

"Vecherniy Novosibirsk" (Novosibirsk), 01.09.00


The World Bank studies possibility to grant state support to potentially profitable mines.

The study is done at the request of the Russian Government and is aimed at granting support in getting the mines ready for privatization in the nearest two years.
The World Bank renders support to the Russian Government in realization of the above program within the framework of the second Russia Coal Sector Adjustment Loan (SECAL-2) at the total amount of $800 million. In case the program is realized successfully, within the frameworks of the loan the bank will donate the last "social" tranche amounting to $50 million and the last "privatization" tranche amounting to $100 million by the end of the year.
The task of the World Bank includes receiving opinions of the local municipal administrations and heads of the enterprises on which mines should be considered profitable.

"Kuzbass" (Kemerovo), 01.09.00

Region Inform has been gathering economic news from across Russia's regions for more than five years and has a wide range of products available. Tel: +7 (095) 214-5542.