March 22, 2017 in Berlin, the first meeting of the...
Krasnodar is a city located in the Southern Russia based on the Kuban River situated 80 kilometers away to the North East of the Black sea port. The prevailing political stability and the numerous administrative efforts taken by the regional administration has made the Krasnodar region one of the most favorable investment destinations in Russia.
Krasnodar economy is heavily dependant on agriculture. The food industry in Krasnodar region is represented by winemaking, meat, canning sector, dairy and oil-pressing industries. The industry has developed around Krasnodar agricultural economy. Krasnodar has a diversified agriculture produce and there is need for high capacity food industry. Processing companies are dominant in Krasnodar industrial structure and the production of these companies account for more than 50% of the total industrial output.
More than 60 countries have investment cooperation in this region and 773 companies having foreign capital are already part of the regions economy. Majority of the FDI coming in this region is mainly concentrated on food industries, woodworking and fuel.
Krasnodar region is ranked 2nd in Russia for investment potential. The region is ranked seventh in terms of investment risks. The regional government has taken many initiatives to improve the investment climate. The regional government offers many lucrative policies to favor investors such as preferential terms for land ownership/ tenure, providing state expertise and assistance, preferential transfer of regional property to the investment vehicle, local tax concessions, and issuance of development bonds to finance priority investment projects, issuance of regional state guarantees on the investment. The regional government also promises formalized structure to enforce law in practice.
Business opportunities by sector:
Agriculture is the prime sector for investment for international companies. There is huge demand for new farm machinery in Krasnodar agricultural sector.
Opportunities in these sector is available in different branches of industry such as meat and poultry, confectionary and biscuits, dairy produce , fish, vegetables oils, wheat and grain products, juices, vegetables oils, freezing, canning, brewing and packaging.
Transportation & Oil and Gas Refining:
Krasnodar region has good oil and gas deposits. This factor presents serious opportunities in Oil and Gas exploration for foreign investors. Majority of the logistics projects in this region are already won by international companies through their regional operating companies. Many major infrastructure projects for oil and gas transportation are at different stages and likely to be completed in next five years.
Many small and medium-size manufacturing industries have setup their base in Krasnodar region. Foreign investors have many investment opportunities in subcontract work and production for international companies.
The region is a base for small and medium-size manufacturing industries. There are a number of interesting opportunities in subcontract work and production under license for international companies that are being developed more easily, particularly encouraged by the proximity of the ports. There are many opportunities in subcontract manufacturing in companies that manufacture items such as refrigeration unit, compressors, irrigation equipment and pumps, farm machinery, gears/reducers, specialist vehicles, aluminum window frames and so forth. Foreign investors also have opportunities in sub contract manufacturing in textile sector.
This is one of the most dynamic sectors worth investing in the Krasnodar sector. This is evident from the fact numerous Turkish and Greek companies have invested in the hotel industry of this region. The tourism industry is emerging and is extending to almost all the parts of the region especially along the beach resorts besides Yeisk.
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