Krasnodar region in the EU map

Region Profile Administrative centre: Krasnodar city Area: square kilometres Population: Gross regional product: ~ USD 20 billion GRP annual growth rate – 8,9% International Long-Term Credit Rating: Ba1 (Moody’s Investor Service) BB- (Standard & Poor’s) BB (Fitch Ratings) Total investments per year (2006) – USD 5,24 billion Foreign investments per year (2006)– USD 780 million Export operations – USD 1,5 billion Main sectors of economy - Agricultural production Transport complex Tourism Situated in the latitude of Northern Italy and Southern France Average longstanding air temperature: in January 0°C, in July +24°C

Strategic Highlights Sochi – 2014 Winter Olympic Games City The Black Sea Coast – the most popular resort region of Russia Port of Novorossiysk - the biggest sea port in Russia, 38 th in the world Hugest agricultural production complex in Russia

Strategy of Development Providing significant growth of quality of life in the Region through increasing competitiveness of every economic unit Strategy of Social and Economic Development of Krasnodar Region was written in 2006 and approved by Federal Ministry of Regional Development Well-developed human potential Sustainable economic growth Effective government

Human potential: developing social infrastructure Environmental protection Population policy, children and maternity protection Poverty reduction, social guarantees National project “Health Care” National project “Education” National project “Affordable Housing” Cultural needs satisfaction Developing civil society Increasing conditions of living

Sustainable growth: the best place for investment Expected investments in 2008–2013 ≈ USD 50 billions Expected investments in 2008–2013 ≈ USD 50 billions (including more than USD 20 billions for Sochi) Private-public partnership in developing infrastructure: Special economic zones (SEZ) Concessions in road building Federal Investment Fund participation (ports and railroads) Gambling zone Active marketing: Participating in main international investment exhibitions (MIPIM, etc) Sochi International Investment Forum Attractive conditions for foreign investors Overall business climate: Support of small business Managing land resources Reducing administrative barriers Expected GRP Growth Rate in 2008 ≈ 10%

Effective governance: a strong fundament Public Finance Reform: Middle-term financial planning Monitoring of the effectiveness of budget expenditure Target-oriented budgeting Public Sector Reform: Increasing quality of public sector services Optimization of Administration functions Implementing performance management Strategic and territorial planning: Developing strategies for economy sectors and municipal territories Perspective territorial planning according to priorities of social-economic development Target-oriented policy of the region administration

Municipal development Krasnodar Region consists of: 47 municipalities 11 city districts 21 urban settlements rural settlements Indisputable leaders among the 47 municipalities are cities of Krasnodar, Sochi and Novorossiysk, providing about 63% of region business turnover Now all of the 47 local authorities are working on local Strategies for social and economic development Every municipality made its own investment projects exhibition during the 2007 International Investment Forum in Sochi Almost every of them had their stands on MIPIM

Sochi: the most famous resort in Russia Host city of White Olympic Games 2014 One of the longest city districts in the world (145 km) The only one subtropical region in Russia Summer residence of President of Russia Unique combination of the sea resort and winter skiing resort (“Krasnaya Polyana”, 40 km from the centre of Sochi) Amount of tourists who visited Sochi in 2006 – The best choice for business tourism: every September international investment forum “Sochi” (former “Kuban”) is carried out Federal investment in building infrastructure for the Olympic Games - ≈ USD 10 billion Among investment projects – man-made island “Federation”, ≈ USD 7 billion The main task: 1.Building the Olympic objects on time 2.How to use all the Olympic objects after the Games?

Krasnodar: administrative and financial center Founded more than 200 years ago as Ekaterinodar (named after Russian empress Catherine the Great) Situated in the junction of major roads which link the centre of the country with the southern area resorts and ports Population: Holds first place in the Region in quality of life, annual business turnover and budget revenues Main economy sectors – manufacturing industry, house-building, retail, transportation Among investment projects: Reconstruction of the centre of Krasnodar (developed by Russian Scientific Research and Project Institute of Urban Planning, cost of the project – USD 0,8 billion) “German Village” – construction of a new housing estate, designed in the spirit of small European towns One of the main tasks: “Backing up” Sochi in providing resources for developing Olympic infrastructure

Novorossiysk: South Sea Gates of Russia 40% of all transshipments in Russia go through Novorossiysk Developed construction supplies production General layout of the city (adopted in 2005): reconstructing the industrial zone and the town centre; further development of the transport system; increasing port capacity; construction of modern comfortable living accommodation. The most important investment project – Complex Development of the Novorossiysk Transport Bundle (amount of investments – USD 3 billion) The project includes government investment in increasing capacities of roads, railroads and wharfage The main task: Providing all the necessary infrastructure for increasing capacities of the trade port and living accommodation as well

Primary task for the next two years According to the Town Planning Code of the Russian Federation, every regional government must have its Scheme of Territorial Planning (based on strategic priorities) adopted till step: Working out a system of long-range priorities in social-economic development within strategic documents of Region and its municipalities; 2 step: Developing a complex Territorial Planning Plan of the Region, based on long – range priorities in social- economic development 3 step: Adopting General Plans for every township

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