The Krasnoyarsk Territory

This information below is provided by the Krasnoyarsk State Technical University. For more information, please visit their Web Site at http://www.kgtu.runnet.ru/english/invest/welcome.htm

The Krasnoyarsk Territory is situated in the East Siberian region of Russia, in the very center of the Eurasian continent. Its total area is 2.34 million square kilometers or 13.6% of the territory of Russia. The Krasnoyarsk Territory is 6.5 times larger than Germany and four times larger than France. The Territory stretches from the Arctic Ocean to the mountain regions of southern Siberia, almost 3000 kilometers. The widest part of the territory is 1,250 kilometers. The Krasnoyarsk Territory is among the regions in Russia that has sufficient water resources. The river run-off is as great as 700 cubic kilometers per year and comprises more than 20% of the run-off of all of Russia's rivers. The rivers of the Krasnoyarsk Territory belong to the Kara Sea basin.

Political Division and Administrative Structure

The Krasnoyarsk Territory was established as an independent administrative unit of Russia in 1822 as the Yenisei Province. The city of Krasnoyarsk founded in 1628, became the administrative center of the province. In 1934 the Yenisei Province was reorganized into the Krasnoyarsk Territory.

Today the Territory is an independent member of the Russian Federation whose legal status is established by the Constitution of Russia and the Charter of the Krasnoyarsk Territory adopted by the Territorial Legislature in February 1996.

The Krasnoyarsk Territory is free to make its own laws for use within the territory, but these must conform to the Federal Constitution and laws.

The Territory's budget; the nonbudget funds; taxes and fees; programs for social, economic, political, and other development of the Territory; foreign economic ties, and international and inter-regional relations among other things, are the exclusive jurisdiction of the Territory.

The governmental structure of the Territory is divided into the legislative, executive, and judicial branches. Legislative power belongs to the one chamber. The legislature of the Krasnoyarsk Territory consists of 42 deputies. They are elected by direct election for 4 years; 22 deputies are elected according to the majority system in single mandate districts, and 20 deputies are elected according to the proportional system (party lists) throughout the Territory. The Legislature is presided over by its Chairman who is elected by the deputies.

The Administration of the Territory is carried out by the Governor who has sole executive power. He is popularly elected with the term of 5 years.

The Territory is unique in that it contains within it, 2 other political divisions, the Taimyr (Dolgan-Nenets) autonomous district (862.1 thousand square kilometers) and Evenk autonomous district (767.1 thousand square kilometers) each being represented in the upper chamber of the Russian Federation, the Federation Council.

The Territory is divided - except the part occupied by the autonomous districts - into 42 districts. There are 16 major cities within the Territory. In addition, there are 534 smaller cities, towns and villages.

The Territory has closed areas that can only be accessed by non-residents who have obtained special permission.

The Territory's largest city, Krasnoyarsk, is its capital and the administrative center.

The Krasnoyarsk Territory is a member of the interregional economical union "The Siberian Economic Community" which includes 18 other Siberian regions.

The Governor of the territory is Alexandr Ivanovich Lebed. The Speaker of the territorial legislature is Alexandr Victorovich Uss.

Population

More than 3 million people live in the Krasnoyarsk Territory, this is 2% of Russia's total population. The average population density is four times lower than Russia as a whole at 1.3 people per square kilometer. The distribution of the population is very uneven: from 0.03 to 1.28 people per square kilometer in the north to 9.4 people in the south. Approximately 85% of the population live in two relatively small regions - in the south of the Minusinsk Depression and along the Trans Siberian Railroad. Another 6.7% of the Territory's population lives in the Norilsk area.

The urban areas of the Territory make up 74% of the total population, including 42.2% that live in four cities of the Territory - Krasnoyarsk, Norilsk, Achinsk and Kansk - with more than 100 thousand people in each. The largest city is Krasnoyarsk where more than 900 thousand people live.

Fifty-nine percent of the population is able-bodied; pensioners make number 14% (men over 60 years and women over 55 years); children under 18 years, comprise 27%.

Science and Education

The Krasnoyarsk Territory possesses high levels of scientific potential. This is due to the activities of scientific, educational, and research institutions and other organizations.

More than 20 research institutes, and a number of engineering organizations, and research-and-production associations exist in the Territory. The Krasnoyarsk Scientific Center of the Siberian branch of the Russian Academy of Sciences (SB RAS) consists of six major research institutes including the Kirensky Institute of Physics, and the Sukachov Forest and Timber Research Institute, the Institute of Chemistry and Metallurgical Processing, the Institute of Natural and Organic Chemistry, and a Computer Center.

Natural Resources

The Krasnoyarsk Territory is one of Russia's richest raw material areas. The most important natural resources are oil, gas, hydro-energy, coniferous forests, polymetallic ores, iron ore, coal, gold, precious metals, and non metallic minerals.

The Krasnoyarsk Territory is one of the most densely forested regions of the country. The total wood stock consists of 7.6 billion cubical meters or 9.3% of Russia's reserve including mature and ready to be harvested wood of 5.2 billion cubic meters or 68.9% of total wood reserve of the Territory.

Available inexpensive hydro-power from regional rivers has spurred significant industrial growth. The rivers Yenisei and Angara posses the highest hydro-energy potential. Two large hydro-power stations were built on the Yenisei river. There are three hydro-power stations on the Angara and a fourth dam is being built near the city of Boguchany. The total capacity of hydro-power stations in the Territory is 44.8 billion kwt/hours.

Much of Russia's reserves of the platinum group of metals (Pt, Pd, Rh, lr, 0s, Ru) and copper-nickel ores (Cu, Ni) are located in the Territory. The main deposits are situated in the north including the deposit of Icelandic feld spar on the Taimyr peninsula. The Territory is a leader in the production of gold among the regions of Russia.

The Gorev polymetallic deposit is the world's largest lead (Pb) deposit. In addition to lead, the deposit contains silver, germanium, tellurium, hallium, and indium. There are large deposits of apatites and nephelines - the main raw material used for the production of aluminum (Al) - in the north of the Territory. The apatite deposits in the north of the Territory contain 21% of all the reserves in Russia.

The Angara group of magnesite deposits (the raw material used for the production of magnesium - Mg) is one of the largest reserves (500 billion tons) and highest quality ores in Russia. The pure magnesites from the Tal deposit can be used for the production of pure magnesium. More than 10 deposits of poly-metallic ores are located in the Norilsk copper-ore region in the north of the Territory. Recovery is done through both open pit and underground mining. The ore is processed at the Norilsk mining-metallurgical plant which provides the largest share of copper, nickel, cobalt and platinum group metals mining in Russia.

The resources of bauxite located in the interfluvial area of the Angara and Podkamenaya Tunguska rivers are estimated at about 100 million tons. The bauxites of the "Tsentralny" (Central) deposit are unique in their high constituency of precious metals and rare earth elements. The reserves are estimated at 50 million tons which is enough for the construction of a bauxite plant of medium capacity. It is possible to extract accompanying elements using appropriate technology.

Total prospected reserves of coal in the Territory are estimated at 86.3 billion tons with 7% of this reserve already developed. The "Krasnoyarskugol" (Krasnoyarsk Coal Co.) mines about 60 million tons of coal per year.

The Kansk-Achinsk brown coal basin contains a unique reserve of coals appropriate for open pit mining. Total reserves measure 63.9 billion tons, i.e. 66% of Russia's power-generating coal reserve. 62.2 billion tons can be mined by open pit mining. The advantage of this coal basin is its location along the Trans-Siberian Railroad. Large reserves of coal are also located in the Minusinsk coal basin in the south of the Territory and the Tunguss basin in the north. These coal reserves are estimated at 2.3 trillion tons.

The reserves of iron ores in the Krasnoyarsk Territory measure 2.27 billion tons, of which 56% are easily accessible. The forecast resources are 4.5 billion tons.

Twenty-four oil and gas deposits have been located in the Territory. The oil reserves in economically recoverable deposits are estimated to be more than 600 million tons, gas and gas condensate are more than 1 trillion cubic meters and 50 million tons respectively.

The largest of the prospected gas deposits are Urubgeno-Takhomskoye, Kuyumbinskoye and Tersko-Komovskoe. Gas production is carried out at two sites: the South-Soleninskoye and North-Soleninskoye for the use by the Norilsk mining-metallurgical plant.

In addition, the Krasnoyarsk Territory contains considerable reserves of cobalt (Co), zinc (Zn), cadmium (Cd), chromium (Cr), molybdenum (Mo), tungsten (W), mercury (Hg), tin (Sn), antimony (Sb), alkali metals (Na, K), a group of precious and rare earth metals, phosphates, graphite, manganese ores (Mn), talc, helium, building stone, etc. A good advantage of the Krasnoyarsk Territory is that these natural resources are often closely located to each other and can be developed simultaneously.

Economic System

Some features of the economy of the Krasnoyarsk Territory include:

1. The Territory is constantly ranked among the ten regions with the highest GDP (gross domestic product) in Russia. The Territory's contribution to the GDP of the country in 1995 was 2.5% with 2.11% of the country's economically active population residing here. Thus the production level per capita in the Territory was 120.5% of the average level of GDP throughout Russia.

2. The bulk of the Territory's GDP is derived from certain industries such as non-ferrous metallurgy, electric-power industry, mining, chemicals, and wood production and processing.

3. In comparison to the declines in production common for Russia in recent years, the Territory has experienced smaller declines.

The industrial production index in 1995 was 88.5 in the Territory and 77.2 in Russia as a whole (1991 = 100). In addition, the volume of industrial production of medium-scale and large-scale enterprises has been stabilizing since 1994.

4. The Territory's economy continues its adaptation to market conditions. This is reflected among other things in:

Structural changes in industry brought about by changes in the demand for goods produced in Krasnoyarsk in the domestic and world markets;

An increase of number of private enterprises; since 1992 there have been more than 2,000 enterprises privatized;

Creation of legislation limiting direct state interference in commerce processes only to exceptional cases;

Changes in people's attitude about the welfare state to competition and individual initiative. People should be compensated for their work and be able to use their savings as they see fit. This has given rise to a real "consumer revolution," expressed by the appearance in the market of new goods and services, a building boom of private dwellings, changes in family expenditures;

5. The Krasnoyarsk Territory is actively engaged in international trade. It is among 15 regions of the Russian Federation providing on the whole more than 70% of the trade with former Soviet republics and more than 60% of trade with other foreign countries.

The Territorial and Federal authorities regulate the Territory's economy through the licensing of individual economic activities, fixing prices and tariffs on certain goods, activities and services, and by overseeing anti-monopoly regulations, etc.

Main Branches of Economy

Energy Industry

The energy industry is one of the Territory's largest industrial sectors. Total power capacity is 13,892 billion kwt. The use of hydro-electric power allows the government to keep power prices low compared to other regions in Russia.

The energy industry is divided into 3 main functions: energy production, transport, and heat generation for consumer use.

Mining Industry

The mining industry is one of the key industrial sectors of the Territory's economy. Many kinds of mineral products make the Territory one of the leading mineral producing regions in Russia.

Major enterprises such as the Norilsk Mining-Metallurgical plant, the Achinsk Bauxite Plant, the Borodinski, Beryozovski and Nazarovski open-pit coal mines, etc., are leaders in the mining industry.

Currently, almost 90% of industrial output comes from the mining of raw materials used in the production of non-ferrous metals. Coal mining is the second largest sector of the mining industry.

Metallurgical Industry

The metallurgical industry has a close relationship with the mining industry as many metallurgical enterprises can either be involved themselves in mining (the most characteristic example is the Norilsk Mining-Metallurgical Plant) or make joint ventures with various mining enterprises (the financial industrial group consisting of the Krasnoyarsk Aluminum Plant, the Krasnoyarsk Metallurgical Plant, the Achinsk Bauxite Plant is an example of this).

All in all, the Territory produces more than 30 heavy, light, alloyed and precious metals and elements. The most important of these are aluminum, nickel, cobalt, copper, platinum and gold.

Chemical and Pharmaceutical Industry

The main products of the chemical enterprises are petroleum products, synthetic rubber products, synthetic fibers, tires, wood products, varnishes and paints, medicines, antibiotics, and blood substitutes. In recent years the share of the chemical industry in the Territory's industrial output has stayed at 6-7%. The chemical and pharmaceutical industries is third in exports in the Territory.

Communications

Communications is a branch of economy that has been extensively developed in recent years. Its scope of services is constantly expanding. Nonetheless, the Territory is still lagging behind in many areas of the development of communications compared to other regions.

The total number of communication enterprises in Krasnoyarsk Territory is 1070. The majority of them belong to the state postal service. These enterprises provide for the delivery of postal and telegraphic messages, distribution of periodicals, delivery of money orders and payment of pensions.

The private system of postal services including express-mail is poorly developed and covers mainly the larger cities of the Territory.

The Territory's telephone communication is also worth noting. Fifty-eight enterprises received Federal licenses in 1995 granting the right to provide telephone communication services. But the majority of them are small and are engaged primarily in the development of communication facilities. There is direct communication with all cities in Russia, the CIS and 46 foreign countries.

Machine Building

The Territory's machine building industry satisfies domestic need for machines and equipment and represents a diversified system of enterprises located in different cities throughout the Territory. The majority of them (80%) are located in the city of Krasnoyarsk. This sector comprises 77 enterprises of basic, transport, logging, electrical, tool, radio, and space engineering industrial complexes. The major enterprises are:

The "SibTyazhMash" plant (the Siberian Heavy Engineering Plant) - the only producer in Russia of heavy, electric mobile cranes with a lifting capacity from 80 to 1200 tons;

The "KrasTyazhMash" plant (the Krasnoyarsk Heavy Engineering Plant);

The Krasnoyarsk Harvesting Machines Plant" joint stock company produces about 20% of Russia's agricultural harvesting machinery;

The Krasnoyarsk Machine Building Plant" joint stock company;

The "Biryusa" joint stock company - the largest manufacturer of residential refrigerators in Russia, which are exported to 40 countries throughout the world;

The "Besotral" joint stock company - the producer of trailers and semi-trailers, refrigerator vans, and spare parts.

Food Industry

Today this sector of the economy is experiencing reconstruction provoked by a slump in the consumption of some products, and increasing competition from foreign manufacturers. The market economy has forced enterprises to modernize technology and increase the quality and range of goods for sale.

There are six meat-packing plants, 36 dairy plants, a cannery, three confectioneries, one pasta factory, tour distilleries, one spirit plant, 6 breweries, and one tobacco factory.

However, the above mentioned facilities are insufficient to satisfy the population's demand in high-quality food products. Therefore, the Territory's authorities pay special attention to the development of the food industry. In particular, various investment programs for the construction of enterprises for full processing of agricultural products are financed from the Territory's budget.

Wood Processing Industry

Krasnoyarsk Territory has one of the largest timber reserves in Russia. Woodlands occupy 168.1 million hectares or 45% of the Territory. Siberian larch, cedar, pine, aspen, and birch are widely represented among the species found in the Territory's forests.

The volume of annual timber cut is 16.3 million cubic meters or 25% of the calculated cutting area which is 64.6 million cubic meters. This puts the Territory in second place for lumber production in the country. In general the total annual capacity of timber logged in the Territory is up to 55 million cubic meters. Only high quality coniferous wood is logged.

Logging, wood processing, and pulp-and-paper industries play an important role in the Russian economy. The wood products sector is represented by more than two hundred enterprises.

Agriculture

The Krasnoyarsk Territory is considered to be the largest agriculture region in Central and Eastern Siberia. Agricultural lands are 5.2 million hectares, including 3.2 million hectares of arable lands.

Agriculture is developed in the central and southern regions of the Territory. Grain and fodder are the basis of the Territory's agriculture.

The Territory's agricultural sector fully supplies the population with main food products. There are 440 farms of various types (private, state, etc.), and about 5,000 of communal farms. The structure of farming is gradually changing. The output of main farm products is increasing, while the livestock industry has been declining.

Output of many of the agricultural products in the Territory is higher than in other parts of Russia in general. The Territory produces 42% of grain, potatoes, and vegetables, 41% of milk, and 36% of meat and eggs in Eastern Siberia.

The Krasnoyarsk Territory is one of the country's important fur producing region. On the average, about 15 thousand white foxes, more than 50 thousand sables, 400 thousand squirrels are used in the fur industry per year. Fur breeding produces a wide variety of furs, including blue fox, silver fox, mink, and sable.

Milk, pork, beef, grain, and potatoes are the major farm products in the Territory.

There are 4 large hog farms and 12 poultry farms in the Territory.

Transport

Transport is one of the key elements of the region's development owing to the Territory's geographical location and economy. The Territory's large area significantly influences transportation infrastructure. Only the central and southern parts of the Territory have a well developed transport system.

Currently all types of transport are represented in the Territory. Freight and passengers are served by river, railway, and highway systems. There is also a wide system of air transport in the Territory with links to European Russia and the Russian Far East.

The northern part of the Territory is only served by river and air transport systems.

Railroad Transport

Railroad transport has traditionally predominated in the Territory and even increasing its role in the transportation market. The total length of tracks is 3,200 kilometers. Two main railroads the Trans-Siberian railroad and the South-Siberian railroad cross the Territory from the west to east. The Territory has well-developed railroad connections with all industrial cities of the Territory and Russia's regions. In the north the city of Norilsk is connected with a sea port of Dudinka. Large and small cities are located along the Trans-Siberian Railroad or connected with it via branch lines. There are no links by rail between the southern and northern parts of the Territory. The volume of goods transported by rail has decreased due to worn-out rolling-stock and high costs. The turnover of goods in 1995 was half as much as in 1991. Railroad freight rates are burdensome for the local economy, but compared with international rates they are still low.

Air Transport

Though air transport makes up only a small share of total freight carried, it is of great importance in the north, especially in winter when it is the only way to reach Norilsk when the river is frozen. All in all there are more than 68 local airports, with air service provided by four air lines. Airports in Krasnoyarsk (Yemelyanovo), Norilsk, and Khatanga are of national significance and can accommodate TU-154, IL-62, and IL-86 air crafts.

Inland Water and Sea Transport

A wide network of rivers and a large number of lakes since early times arranged the have been a vital transportation system in the Krasnoyarsk Territory. One of the world's largest rivers, the Yenisei is the largest transportation system.

All inland water transport is based on the Yenisei river which provides the transportation of goods to the north of the Territory. The Yenisei is navigable along 3,487 kilometers to its very mouth, the Podkamennaya Tunguska river - along 1,146 kilometers from the confluence with the Yenisei, the Angara river - 726 kilometers. The total length of waterways in the Territory exceeds 7,000 kilometers. The period of navigation in the north lasts approximately from May, 15 to October, 10.

Employment

At the beginning of 1996 the Krasnoyarsk Territory ranked 38 among 89 regions of Russia regarding unemployment, which comprised 2.63% on the whole in the Territory.

Cities and regions of the Territory with monostructural industry and the northern regions are characterized by a high level of unemployment which reaches at times up to 10%.

The leading employing industries are mining and metallurgy.

Banking Systems

The banking system of the Krasnoyarsk Territory consists of the territorial branch of the Central Bank of Russia and commercial banks. Currently, 21 independent commercial banks operate in the Territory. These banks have branches in 6 regions of Russia and in 64 locations in the Krasnoyarsk Territory. Besides, in the Territory there are 28 branches of residential banks from other parts of Russia (in most cases Moscow), plus branches of Sberbank and Agrobank.

Foreign Economic Activities

Liberalization of foreign economic activity, which began in 1991 and reconstruction of the economy in Russia dramatically changed foreign economic relations of the region and individual enterprises in the foreign market.

Considering the fact that before 1989 the Krasnoyarsk Territory was a closed region with no access for foreigners, foreign trade is currently actively developing and expanding every year. Definitely, one may say that foreign trade plays a significant role in the Territory's economic development.

The basic form of foreign economic cooperation is foreign trade. Foreign trade is rapidly developing in the Territory and its progress is far ahead of other economic developments not only in the Krasnoyarsk region but in the whole of Russia as well, and outstrips the growth of GDP on the whole. Within the last two years, export and import average growth rates exceeded several times the growth rates of GDP.

Foreign trade turnover of the Territory with the nearest foreign countries (i.e. former republics of the USSR) and remote foreign countries in 1995 amounted to 3071.6 million dollars and increased 33.8% from last year.

Exports accounted for 69.1%, imports for 30.9% of Krasnoyarsk Territory's foreign trade giving the region a favorable foreign trade balance.

The number of participants in foreign economic activities in 1995 exceeded 1,400.

Exports

The economy of the Territory is firmly integrated into the world economy and depends on foreign trade. The bulk of the output of non-ferrous metallurgy, woodworking, and chemical industries is exported abroad. Export volumes of fuel and power resources are increasing. The basis of exports is metals and products, which account for more than 70% of the total volume of exports.

Raw materials still predominate exports. Non-ferrous metals, namely copper, aluminum, nickel, and ferrous metals constitute the bulk of the exported raw materials. In total export volume petroleum and petroleum products are also of great importance. More than two thirds of exported petroleum products are supplies of diesel fuel. The rest consists of heating oil, motor gasoline, and jet fuel.

Ferrous metals, semifinished products made of plain carbon steel and iron, pipes, metalworks are also exported. The assortment of exported products is expanding. For example, synthetic rubber and related products exports have increased considerably.

The exports of the Territory, the share of which in the All-Russian turnover amounts to 2.3%, are directed to the countries of Western and Central Europe, South-East, and Eastern Asia and the Americas. The countries of Western Europe play a leading role in foreign economic contacts of the Territory (up to 60%). A prime buyer of nickel, copper, and other base metals are the Netherlands. Aluminum and aluminum products are exported to the U.S., Switzerland, South Korea and Japan.

Exports from the fuel-energy sector consist of petroleum products, and brown coal.

Wood and wood production rank third in the Territory's exports. Mostly they are ripped lumbers and unsawn lumbers. The main recipients of these exports are Japan, Italy, Egypt, and Turkey. Paper and pulp are mostly exported to the Ukraine, Kazakhstan, Moldova, and Uzbekistan.

Within the last few years of the Territory's exports, the following trends are typical: on the one hand, an increase in exports of electric machinery and equipment, audiocassettes, radio equipment, and also fuel, and power resources (mostly brown coal); on the other hand, decrease in export of lumbers and products of wood-pulp and paper industry, and also a decline in export of refrigerators, which were traditional export goods of the Territory.

Imports

The territory's imports include chemicals up to 25%, machinery and equipment 25%, mineral resources 13%, and to a lesser extent provisions, agricultural raw materials, and products of the pharmaceutical industry. There is currently a trend of former Soviet republics replacing other countries as main sources of imports. Over the last 2 years, the volume of imported goods from the former Soviet republics has sharply increased up to 32%.

The dominant type of imports are goods from the machine building industry. The assortment of goods is diverse. It includes more than 140 goods.

The petrochemical industry, which consists of the products of inorganic chemistry ranks second in imports. Medicines, plastics, and related products, tanning and dye extracts are also imported. Among imported food products, noteworthy is the volume of vegetables, fruit, and related products.

Currently, main sources of foreign imports for the Territory trade are the Ukraine (18%), Germany (up to 9%), the U.S. (6%), Spain (about 6%), Switzerland (5-6%), Belarus, and Kazakhstan (5-6% each).

Foreign Investments

Two main forms of foreign investments in the Krasnoyarsk Territory are foreign credits and the establishment of enterprises with foreign participation (joint ventures).

The experience of Krasnoyarsk Territory enterprises and commercial firms with foreign companies, finance and investment funds, and banks indicates that foreign partners have specific narrow interest in collaborative efforts.

Attractive features of the Territory for foreign investors include the industrial potential of the Territory, its large reserves of mineral raw materials, its wood and power resources, its developed non-ferrous metallurgy, and its high-tech military complex. Main forms of foreign investment in the territory include: full processing of mineral raw materials; organization of enterprises based on high technologies from defense conversion; processing of farm products and wood; transport and communications.

Foreign investment is largely concentrated in the stocks of enterprises of the mining, metallurgy, and the energy industries.

All in all, in the Territory about 200 enterprises with the participation of foreign capital have been established, mainly with American, European, and, Chinese capital (the USA -10%, countries of Western Europe-21%, China-9%).

Total foreign investments made into the Territory over the last years amounted to 500 million dollars. As a rule, recipients are large industrial enterprises manufacturing products in demand. These investments are used for production modernization. Some enterprises which received foreign investments are:

The Krasnoyarsk Refrigerators Plant received 97.7 million dollars through the Eximbank (Japan), against the guarantee of the Government. It is "tied" credit granted for the construction of a plant producing compressors for refrigerators. The KraMZ (the Krasnoyarsk Metallurgical Plant) obtained 135 million dollars through the Eximbank (U.S.), against the guarantee of the Government. It is "tied" credit granted for the delivery of a rolling mill.

The Supershina (tire plant) JSC obtained 37.7 million dollars through the Eximbank (Japan), against the guarantee of the Government. It is also "tied" credit granted for the production of tires for heavy-duty trucks.

Among direct investments are: the construction of the Coca-Cola Plant - 30 million dollars; a wood processing plant for the Swedish company IKEA in Kezhma - 10 million dollars; the Sibchallenge joint venture - for the installation of telephones, cellular communication - 18 million dollars from an American investment company.

Some of the Territory's large enterprises producing raw materials, which are in great demand in the world market, solve the problem of attracting foreign investments by themselves. Such enterprises as The Norilsk Nickel and the Krasnoyarsk Aluminum Plant obtain credits up to 200 million dollars without any guarantee from the Government, i.e. credits are obtained against supplies of metals or on the security of their export contracts from one of the Western banks.

Last Updated: June 10 1999. Copyright Russian-American Chamber of Commerce® 1995-1999. All rights reserved.