Lower Volga Valley
News Report- January 2000
Submitted by Ekaterina Solovova, BISNIS representative in Samara, Russia
This report summarizes commercial and business development news in Samara and
other Middle & Lower Volga regions for January 2000
Quality Competition Results
In a quality competition held among Penza Oblast companies and products in late December, Penza Confectionery Factory, Scientific-Research Institute of Physic Measurements, Meat and Poultry Complex “Penzenskiy,” Penza Bakery Plant, and Penza Garment Factory were designated first place winners. Products named among the Top 100 include gas stoves, electric ovens, two types of Samko beer, and two yeast factory products.
Businessmen Invited to Participate in USA Business Training
Russian businessmen were invited to participate in five-week training programs sponsored by the U.S. Department of State’s Bureau of Educational and Cultural Affairs and Russia’s Ministry of Labor and Social Development. The program, now in its fifth year, has brought more than 2500 Russian businessmen to small and medium sized American companies. According to response figures given by 1000 participants, the average revenue increase following participation in the program is 10 percent. 76 percent of the respondents also reported expansion in business operations and increases in customer base.
ULYANOVSK OBLAST
Euro-Asia Business Center Presentation
The Euro-Asia Business Center, an affiliate of the Leipzig Fair in Germany, has scheduled a presentation for February. At the event, Ulyanovsk entrepreneurs may receive assistance with their search for business partners and guidance in dealing with German banks, registering with German offices and obtaining German residency.
VolgaInform
3 Farms Named Among 300 Largest and Most Effective
The poultry farms ®Ulyanovskaya¯ and ®Bolshekluchischinskaya¯ and state farm ®Teplichniy¯ have been ranked among the 300 largest and most effective Russian farms. The rankings are based upon company sales revenue, gross profit, and balance income for the last three years.
VolgaInform
Social and Economic Status, December 1999
The December 1999 Ulyanovsk Oblast consumer price index average was 100.83 %. The producer price index of industrial goods was 107.13%. Excluding social benefits, the living wage per citizen was $23 and average wage in November 1999 was $43.
VolgaInform
SARATOV OBLAST
Guild of Small Entrepreneurs Created
The Oblast Chamber of Commerce created the Guild of Small Entrepreneurs to promote business development. The Guild will organize seminars on legal issues and work on the development of the Oblast Act on the Handicraft Industry and business law in general. Members of the Guild were introduced to the 2000 Project on Small Business Support and Development.
VolgaInform
Baby Food Production Facilities Under Construction
The Saratov Milk Factory has begun constructing new facilities under the “Children of Russia” Presidential Program. Equipment for the 26 production facilities in such regions as Ulyanovsk, Samara and Stavropol. will come from England.
Volgainform
SAMARA OBLAST
Region Named Third Wealthiest
Following Moscow and Tyumen, the Samara region was named the third wealthiest in Russia according to the Informational-Analytical Department of the Russian Federation Council of the Upper House of Parliament. Samara is noted for its favorable investment climate by the world’s leading rating agencies. With high average salaries and comparatively low average prices, income per capita exceeds the minimal cost of living by 265 per cent.
Volgainform
Governor Gives Press Conference
In a press conference before 21 representatives from across Russia, Samara governor Konstantin Titov expressed his hope that the Union of Right Forces will support his presidential nomination for the March 2000 elections. Titov will participate in the World Economic Forum in Davos from January 27th – February 1st. He is scheduled to speak about “Russia’s Future” and “Russia at the Crossroad.”
VolgaInform
Small Business Development in 1999
The Samara Oblast Administration’s Department on Small Business Support reports that 40 percent of the region’s businesses are small companies located mostly in the cities of Samara and Togliatty. The number of small companies increased in response to the simplification of the tax system and accounting and reporting standards. This increase caused a 14 percent hike in the total volume of taxes, a difference of almost 2 billion rubles ($74 mil).
VolgaInform
ROSTOV OBLAST
Vodka Delivered to United States
A shipment of 15 thousand bottles of Red Army vodka was delivered to the American company High Point Group Incorporation, which is the exclusive owner of the Red Army trademark on US territory. As the Russian producer of Red Army has no international subsidiaries, it has no distribution rights.
Russia. Regions.
ASTRAKHAN REGION
Industrial Output Growth Reported
According to a preliminary estimate, industrial output growth in the Astrakhan region grew by 19 percent while investment in the regional economy grew by about 16 percent. The average salaries of medium and large regional enterprises rose by 51 percent and the GDP grew by about 3.5 percent. Tax revenue exceeded the predictions of the Ministry of Tax by 23 percent.
AK&M
Oil Extraction
South Oil Company (UNACO) obtained a 25-year license to extract oil in two Astrakhan oil fields. UNACO plans to develop the Verblugia and Severo- Verblugia oil fields, which are the largest in the Astrakhan region. An unidentified American company has plans to invest in the company.
AK&M