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Krasnodar Region

Krasnodar KraiGeographical location. Krasnodar Region (often called Kuban) is the southernmost region of Russia. Krasnodar Region encompasses the western part of the Forecaucasus and a part of the northern slopes of Caucasus Major. Krasnodar Region borders, clockwise from the west, Ukraine—from which it is separated by the Strait of Kerch and the Azov Sea — Russia′s Rostov Region, Stavropol Krai, and the Karachay-Cherkess Republic, and Republic of Abkhazia. Area – 76,000 sq km.

Federal district: Southern

Administrative center: Krasnodar (783,800 people), distance to Moscow – 1,380 km

Major cities: Sochi (415,100 people), Novorossiysk (284,500), Armavir (207,200), Eysk (96,300), Gelendzhik (90,200), Kropotkin (80,600)

Population (01.01.2010 estimate): 5.16 million people

Population density: 68.4 people per sq km

Gross regional product (2009 estimate): RUR 857.5 bln (USD 30.6 bln)

Per capita gross regional product (2008 estimate): RUR 166,770 (USD 6,000)

Primary economic activities. Krasnodar Region is characterized by industrial and agro-recreational type of development. The basis of the regional productive forces constitute the industrial, construction and energy complexes, information and communication technologies, as well as agro-industrial, transport, resort and recreation, and tourist complexes. The last three - agriculture, transport, and hotel & tourist complexes - correspond to the priorities of socio-economic development of Russia and determine the special status of the Krasnodar Krai in the national economy.

Machine building and metalworking are represented by more than 2,500 enterprises of railway, agricultural, chemical and petroleum machine building, electrical engineering, machine tool and defense industries, instrument making, repair of machinery and equipment, as well as small businesses employing about 60,000 people. The share of machine building and metalworking in the total volume of the region’s industrial output is over 10%.

The chemical complex of the region comprises over 700 large, medium and small enterprises. The positive dynamics of the industry’s development is provided by the increase in production of major products - fertilizers, paints, fibers and threads, molded rubber products, rubber conveyor belts, synthetic resins and plastics, pipes and other products.

Woodworking complex is also important for the economy of Krasnodar Region. The main volume of timber resources in the region is provided by the most valuable hardwoods - oak, beech, green ash, bastard acacia, and coniferous species - fir, pine, spruce.

Agriculture. Dynamic development of agro-industrial complex of Krasnodar Region ensures national food security: the region has the richest resources of agricultural land, including the black earth, whose area exceeds 4.8 hectares (more than 4% of Russian and about 2% of world reserves). Krasnodar Region ranks first among Russian regions in terms of production of grain, sugar beets, fruits and berries, and second in production of sunflower seeds and honey. The region also ranks second in the production of eggs, meat and poultry (live weight), and third in milk and vegetables production.

Natural and mineral resources. Mineral resources of Krasnodar Region include more than 60 kinds of minerals, which are mainly represented by small and medium sized reserves. Oil and gas are extracted in the foothills of the Azov-Kuban Basin.

There are also deposits of iron-manganese ore, copper, mercury, phosphorites, barite, salt, marl, limestone, sandstone, gravel, marble.

There are numerous mineral and mud springs. Azov-Kuban fresh groundwater basin located in Krasnodar Krai is the biggest in Europe.

One of the most important natural resources in Krasnodar Region is its forests, which cover a total of more than 1.8 million hectares.

Due to its rich recreational resources Krasnodar Region is acknowledged as the main resort area of Russia, its ample soil and agroclimatic resources make it the nation’s breadbasket, and a number of large ports open Immense opportunities for import-export operations.

Fuel and energy complex of Krasnodar Regions embraces more than 300 enterprises with different types of ownership, employs about 60,000 people, produces more than 25% of Kuban’s industrial output and transfers over 10% of all tax revenues to the regional budget.

Krasnodar fuel and energy complex comprises the following industries: electric power industry, heat power industry, gas industry, pipeline transport, oil and gas extraction industry, oil refining and petroleum products industries.

The largest heat supply enterprises of Krasnodar Region are Krasnodarteploenergo JSC, MUP Sochiteploenergo Municipal Unitary Enterprise, Krasnodarteploset JSC.

Foreign trade turnover of Krasnodar Region in 2010 amounted to USD 10.88 billion: export – USD 6.45 billion, import – USD 4.43 billion. In 2010, Krasnodar Region increased its share in the total goods turnover in the Southern Federal District to 48%.

Major export commodities: mineral products, mainly oil and oil products (70%), foodstuffs and raw materials for their production (18%), metals and metal products (5%), chemical products (2 %), engineering products (2%). The main import commodities were foodstuffs and raw materials (47%), engineering products (about 24%), mineral products (7%), chemicals (6%), etc.

Transport complex of Krasnodar Region provides the implementation of foreign policy and Russia′s economic interests in the area of the Black Sea and Mediterranean economic cooperation and contributes significantly to the increase in "connectivity" of the country’s territory.

  • Sea ports provide direct access through the Azov and Black Seas to the international foreign trade routes and process over 35% of Russian foreign trade and transit cargo sea ports in Russia, serving about a third of Russian oil exports.
  • Major railway routes of the federal significance cross the region, oriented towards the international seaports and resorts of the Azov and Black Sea.
  • Pipeline transport is represented by the international oil pipeline "Tengiz - Novorossiysk" and the pipeline "Russia - Turkey" ("Blue Stream".)
  • Air transport of Krasnodar Region is represented by four airports, three of which are international (Krasnoyarsk, Sochi, Anapa).
  • The density of highways in the region of 132 km per 1,000 sq. km., which is an average rate in the Southern Federal District and 4 times higher than the Russian average.

Tourism. Unique natural-climatic conditions of Krasnodar Region, the availability of advanced medical facilities and technologies, historical sites create the potential for the development of highly efficient, competitive, international-level tourist and recreational complex, forming the region’s positive image in the international arena and meeting the population′s growing demand for services related to recreation, treatment and tourism.

Krasnodar climate is one of the most favorable in Russia. It’s the warmest region of the country, with 2,300 sunny hours per year. Due to a combination of favorable climatic conditions and mineral springs and reserves of natural therapeutic muds, Krasnodar Region has become the most popular resort and tourist region of Russia, and in fact the only seaside balneological and resort & recreation center.

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