PROFILE OF THE ASTRAKHAN REGION GENERAL INFORMATION Astrakhan is located in the south-east of European Russia, in the Caspian Lowland, in the lower reaches of the Volga River. The region is a part of the Southern Federal District and is a border region: by land it borders on the Republic of Kazakhstan, by sea – on Azerbaijan Republic, Islamic Republic of Iran, Republic of Kazakhstan and Turkmenistan. The Volgograd region and the Republic of Kalmykia are Astrakhan’s neighbours in the Russian Federation. Total area of the region is 49.0 thousand square meters. The region consists of 11 rural areas, 442 villages and settlements. Apart from the regional center there are 5 towns in the region – Akhtubinsk, Kamyzyak, Znamensk, Kharabali, and Narimanov. Over 1 million people live in the Astrakhan region. Half of them live in the regional center – the city of Astrakhan. Astrakhan is famous for its cultural traditions, dating back to the remote past. Representatives of over 140 nations and nationalities live here. All world religions have found their adherents here. Our townsman, poet Velimir Khlebnikov called Astrakhan the triangle of Christ, Mohammed and Buddha. In spite of its multinational structure, Astrakhan has always been and still remains one of the most politically stable regions of Russia. POLITICAL ROLE Favorable geographic location of Astrakhan and its growing economic potential have predetermined geopolitical importance of the region. After the collapse of the Soviet Union Astrakhan again acquired its border status. Favorable geographic location at the crossroad of transportation routes, high scientific and technical potential ensured its predominance over other Caspian regions of the Russian Federation. In recent years Astrakhan has in fact initiated many important projects of economic and international cooperation in the Caspian region. Today we have every reason to state that present-day Astrakhan is the Caspian capital of Russia. Astrakhan region plays the key role in forming and implementing Russian policy in the Caspian region, including such issues as legal status of the Caspian Sea, exploitation of unique mineral and biological resources, environmental protection, transport transit potential and development of interregional cooperation. At the beginning of the 21st century Astrakhan once again reacquired its status of a diplomatic city. A number of foreign diplomatic missions work in Astrakhan, which signifies recognition of its political role. The following missions operate in Astrakhan on a permanent basis: - Consulate General of the Islamic Republic of Iran; - Consulate of the Republic of Kazakhstan; - Consulate of Turkmenistan; - Representation of the Ministry of Foreign Affairs of the Russian Federation; - Honorary Consul of the Slovak Republic in Astrakhan. Besides, the possibility of opening consular mission of Azerbaijan is under discussion. Authorities of the Caspian states are greatly interested in developing trade, economic, scientific, technical and cultural links with Astrakhan. GEOGRAPHICAL LOCATION AND CLIMATE The Astrakhan region is situated in the south-east of the Eastern-European plain within the Caspian lowland, in the midlatitudes and the desert-semidesert area. The region stretches as a narrow band along both sides of the VolgaAkhtuba flood plain in the distance of over 400 km. The sliding desert plain with tremendous sand masses, hills and hillocks, dry hollows, lakes and karst landforms form the predominant landscape of the region. North-westerly and south-eastward the desert plain is crossed by the Volga-Akhtuba flood plain with its abundant streams flowing into the Caspian Sea, thus forming a continuous delta. Within the boundaries of the flood plain and the delta the extensive desert landscapes interchange with meadows, banded forests (those are narrow bands of tree vegetation along the streams), thick bushes of rush and reed mace, lively lotus flowers. The Volga and the Caspian Seawaters abound in multifarious fauna and flora species. Climate in Astrakhan region is moderate and sharp continental with hot summers and cold winters, high annual and summer daily air temperature amplitudes, little rainfall and considerable evaporation. Average air temperature varies from 10°C in the south to 8°C in the north. January is the coldest month of the year. Average air temperature drops to - 5-9°C. The highest average temperature is 24-25°C in July. The temperature difference between the coldest and the hottest month is 29-34°C. Total rainfall is from 180-200 mm in the south to 280-290 mm in the north. The main fall-outs (70-75%) are usually during warm seasons. Snow, wet snow and rain are typical of local winters and are often rather continuous. In summer heavy rains are usually accompanied by thunderstorms and occasionally by hail. Standard annual average atmospheric pressure at 0°C in the Astrakhan region is 765 mm. During cold season it grows to 770, during hot season drops to 760. NATURAL RESOURCES Land resources. Land reserves of the Astrakhan region for all types of lands are 5292.4 thousand ha. Lands allotted for agriculture amount to 3426.8 thousand ha. Forest resources. High humidity in the flood plain and the delta areas prevents from expanding forest grounds. Narrow bands of tree vegetation (banded or so-called fringe woodlands) can exist only along the river beds and channels, whereas meadows are still abundant. Only minor English oak-woods can be found in the northernmost part of the Volga-Akhtuba flood plain. Common vegetation here is black poplar, ashtrees, elms and willows which stretch along the river stream banks. Downstream species composition gets poorer, there are forest belts where almond-leaved and white willow dominate. Water resources. Water resources of the region are represented by bottom mineral and fresh waters as well as surface waters. A wide range of mineral waters of different chemical composition and properties have been discovered on the territory of the region: iodine-bromine, highly mineralized chloride sodium waters for sanatorium therapy; sulphatechloride sodium mineral waters used for the production of sanative-table waters. A deposit of highly mineralized calcium-magnesium-sodium water has been discovered (suspended) which can be utilized in prospect for the sanatorium therapy and production of medicinal mineral water. Surface waters are represented by the Volga river, its numerous branches and a multi-component structure of flood plain and delta channels, fresh and salt lakes and the largest secluded pond of the planet – the Caspian Sea-lake. The lakes of the Astrakhan region are very distinctive: tectonic lakes, impounding lakes and those of mixed type. Their chemical composition is either fresh or salt. The Caspian Sea is the largest lake in the world, due to its size it is often referred to as a sea. Its area (without isles) amounts to 368 thousand square meters. Nearly 90% of all the salt lake water of the world is here. The Caspian Sea stretches 1000 km along the 50° East longitude and is located between 36°34' and 47°13’ North latitude. Its level is 27 meters lower than that of the World Ocean. Maximum depth is in the south, reaching1025 meters. Caspian waters are characterized by certain mineralization. Average salinity of the Caspian Sea in its northern part bordering on the Astrakhan region varies from 6 to 11%, dropping to 3% in the Volga estuary. Compared to the World Ocean, Caspian waters contain little sodionsand chloride ions. At the same time they are rich in calcium ions and sulphates. It can be explained by the fact that the Caspian Sea is a land-locked sea with a considerable river flow. The fauna and flora of the northern part of the Caspian Sea is rather diverse. Fresh and salt water animals are common dwellers here and this is due to the pristine connection with the Arctic, Black and Mediterranean Seas. For example, Caspian inconnu, salmon and seals migrated from the northern seas, where they still dwell. Wildlife. Fauna of the today’s Volga estuary and adjacent territories is very rich and is represented by over 9000 species, inhabiting water bodies, steppes and semidesert. Invertebrates, making up to 95% of Astrakhan’s fauna, are the most numerous and diverse group. These groups includes protozoa, worms, crayfish, shellfish, bugs, butterflies, etc. About 900 species of spiders inhabit Astrakhan, the most famous of which are South-Russian tarantula and karakurt. Another group, which is rather numerous in the Volga-Caspian basin and in the Astrakhan region, is represented by fishes. About 100 species and subspecies of fish inhabit the Volga and the Volga estuary. Most of them are of commercial importance. About 300 species of birds inhabit the Astrakhan region. 72 of them are enlisted in the Red Book, and 42 are allowed for hunting. About 60 species of mammals inhabit Astrakhan, including saigas, boars, deer, moose, roe deer, foxes, wolfs, gophers, etc. Besides, Astrakhan fauna includes Caspian seal, minks and otter. 13 species are included in the regional Red Book, 26 species are allowed for hunting. Recreation and tourism. The region has high potential for tourism. Combining abundant water resources, beaches, meadows, a number of sunny days in summer, our region has good potential for recreation (hunting, fishing and spearfishing, water tourism, ornithology, educative and cultural tourism). Mineral resources. The basic mineral resources of the Astrakhan region are oil, gas and gas condensate, discovered on the territory of the region and on the continental shelf within the Russian sector of the Caspian Sea as well as sulfur, salt, bromine and iodine-silicon fossils, fresh bottom and mineral waters. Explored and inferred resources of the region are 4.7 trillion cubic meters of gas and over 700 million tons of oil and gas condensate. The Astrakhan gas condensate field is one of the largest in the European part of Russia. It is unique in terms of reserves) and composition. The gas condensate field is developed by “Gazprom Dobycha Astrakhan”. Reserves of hydrogen sulphide containing gas are enough for hundreds of years with the current rate of production. Thanks to discovery of two large gas condensate fields (CentralAstrakhan and Western-Astrakhan) in 2004-2006 and of oil deposits in Chernoyarskiy district (Yurtovskoye field, discovered in 2008), Astrakhan at the moment ranks first in the South Federal District in terms of hydrocarbon resources. Russian sector of the Caspian Sea is one of the most promising areas for hydrocarbons prospecting. Interest of Russian companies to the Northern Caspian results both from high geological potential of this area and from proximity to European markets (traditional markets for Russian oil), especially in comparison with West-Siberian fields. Recoverable resources of all fields, discovered in the Caspian Sea, are: about 255.0 million tons of oil; about 25.0 million tons of gas condensate; over 680.0 billion cubic meters of natural gas and about 30.0 billion cubic meters of dissolved gas. Besides, the Northern Caspian still has potential for discovery of new oil and gas fields. According to present-day estimates, degree of exploration is as follows: for onshore fields – 35% (gas), 3% (oil); for offshore fields 6% and 3% correspondingly. Undiscovered potential resources of the Astrakhan region (according to VNIIGAZ, Moscow) are over 7 trillion cubic meters of gas, which is comparable to main fields of “Gazprom” in Siberia. According to working estimates, undiscovered potential resources of the Northern Caspian are about 1 billion ton of oil and 800 billion cubic meters of gas with sulfur content up to 3%, which makes this territory very attractive for investment. A unique salt lake Baskunchak is situated on the territory of the Astrakhan region. The deposit is the main place for production of table and technical salt in Russia. Considerable reserves of salt, no overburden, possibility of opencast mining and proximity to railroad make Baskunchak one of the largest fields both in Russia and the CIS. The Baskunchak bromine salt brine field (average bromine concentration – 330 grams per cubic meter) enables to set up bromine production. Rock-salt deposit has been also discovered on the western bank of the lake. At the moment the idea of organizing a tourist zone and a sanatorium here is under discussion. A major Nizhnebaskunchakskoe (Lower Baskunchak) gypsum field is the basis for the production of the ground gypsum, gypsum rock and other construction composites. The principal Kamenoyarskoe field of silica is situated in the north of the region and can be truly called unique in terms of resource potential and quality. Almost all the districts of the region abound in common fossil minerals, such as brick clay and haydite, expanded clay, sand, which can be used for production of construction materials. MANUFACTURING Regional economy is based on fuel and energy complex, shipbuilding and shiprepairing, machine-building industry, food industry and building materials industry. Chemistry and petrochemistry, glass production, printing production and medicine are also important. Oil and gas industry occupies the leading position in Astrakhan economy and determines to a large extent industrial potential and rate of social and economic growth of the region. The main company, representing this industry in Astrakhan, is “Gazprom Dobycha Astrakhan”, which is a part of OAO “Gazprom”. The company produces commercial oil products, liquefied hydrocarbon gases and sulfur. There are no similar facilities for producing and processing gas and condensate in Russia in terms of its technical characteristics. Gas processing plant is certified according to ISO 14001, ISO 9001 and OHSAS 18001. Gas production facilities (first and second stage) of gas processing plant, belonging to “Gazprom Dobycha Astrakhan” are constructed with the use of equipment and materials from “Mannesman” (Germany) and “Lavalin” (Canada). French company “Technip” has supplied most of the equipment for the gas processing plant, the Japanese “Nichimen” has provided equipment and fittings for underground gas storage, the Australian “Hellene” – sulfur storage, dispensing and loading facilities. Products of the plant, including gasoline, fuel oil, diesel fuel, liquid gas, gas condensate and sulfur are in great demand at both domestic and global market. The share of “Gasprom Dobycha Astrakhan” in “Gasprom”’s total production is from 15 to 99% for different products. “Gasprom Dobycha Astrakhan” produces 10% of world and 78% of Russian sulfur. Sulfur prill is produced with one of the most powerful units in the world, supplied by “Enersal”. “LUKOIL-Nizhnevolzhskneft” is one of the leading operating companies, investing in development of offshore hydrocarbon resources in the Russian sector of the Caspian Sea. Yu. Korchagin field has become one of the first fields put into service in the Russian sector of the Caspian Sea. It was a unique project for Russia in terms of its complexity and scale. At the moment the company drills development wells and continues exploration works in the Caspian Sea in order to define geological structure of V. Filanovskiy field and to correct field infrastructure development schemes for V. Filanovskiy, Khvalynsoye, Sarmatskoye, Rakushechnoye and 170 km fields. Prospects of oil and gas industry are connected with development of new oil and gas fields and with setting up of high-tech production facilities for deep processing of hydrocarbons. Organization of petrochemical production with high added value (ethylene, propylene, butylene, polyethylene, polypropylene, ethylene glycol, etc.) at the premises of Astrakhan gas processing plant appears rather promising (corresponding project documents are available). In view of forecasted decline of gas production in Western Siberia it will be necessary to redistribute gas flows in the country. In this respect Astrakhan gas condensate field together with offshore oil and gas fields can be viewed as providers of gas for the would-be built “South Stream” gas pipeline with design capacity of 63 billion cubic meters of gas per year. Priorities of the Astrakhan region, as concerns development of hydrocarbons transportation infrastructure, are: construction of gas pipelines “Makat – Northern Caucasus – Khosheutovo – Kharabali - Akhtubinsk” and “Zamyany – Bugrinskoye” by “Gazprom”; expansion of Caspian Pipeline Consortium to 67 million tons of oil per year (“CPC-R” plans to build and reconstruct several facilities in Astrakhan before 2014). Shipbuilding is an important and dynamically developing industry of the region. Shipbuilding industry of the Astrakhan region has powerful resources and fully corresponds to requirements of modern market. Astrakhan shipyards can produce dry cargo vessels, tankers, container carrying vessels, berthing floats, refrigerators, barges, derrick barges and crane ships. There are 10 large and medium shipyards in the Astrakhan region, which can build practically any vessel or repair a vessel up to 6 thousand tons in weight. Largest shipyards of the region are: “Krasnye Barrikady”, “OSK” and “Caspian Energy”. Astrakhan shipyards work under supervision of major Russian and foreign supervising authorities, including River Register, Maritime Register, DNV, German Lloyd, etc. vessels, build in Astrakhan, successfully work in Russia, Kazakhstan, Turkmenistan and Western Europe. Leading shipbuilding companies developed as centers for construction of technical equipment for offshore exploration and production of hydrocarbons. In the 70-80 Astrakhan shipyards build a lot of self-elevating and semi-submersible platforms for exploration drilling in the Caspian Sea. Active development of Caspian oil fields and implementation of offshore projects stimulate development of shipbuilding and ship-repairing industry of the Astrakhan region. Astrakhan shipbuilders develop international cooperation and participate in offshore projects for Kazakhstan and Turkmenistan. Shipbuilding and ship-repairing yards can build vessels of any class or purpose as well as jack-up and stationary drilling platforms. From the moment of starting various offshore projects in the Caspian Sea Astrakhan shipbuilders have built unique facilities, which have become symbols of industrial development of Russia and Astrakhan thanks to their design and capacity. First major offshore project in the Caspian Sea with active participation of Astrakhan shipbuilders is development of Yu. Korchagin fields, discovered by “LUKOIL”. Astrakhan company “Caspian Energy Group” built stationary drilling platform with ice protection LSP-1. Besides, the same company has built substructures of single buoy mooring and mounted living block LSP-2. “”Crane Marine Contractor” took part in transportation and instaollation of LSP-1 and LSP-2. In late April 2010 the first oil was extracted at this oil field. Oil company “LUKOIL” has signed contracts with Astrakhan shipyards to build offshore structures for V. Filanovskiy field, located in the Russian sector of the Caspian Sea. “Krasnye Barrikady” is building two structures for the field: riser block and living module (PZhM-1). The riser block is designed to connect in-field pipeline systems and external pipes to transport oil and gas from V. Filanovskiy and Yu. Korchagin fields to on-shore facilities. The living module can accommodate 125 people. It will also have a helicopter deck. “Lotus” shipyard is building bearing blocks for stationery ice-protected platform LSP-1, the main infrastructure facility of V. Filanovskiy field. Central Technological Platform (CTP) is the most important structure of V. Filanovskiy field. It will also be built in the Astrakhan region. The above listed orders are a good motivation for the development of industrial complex in the Astrakhan region. Besides, these orders mean new jobs in the shipbuilding industry, taxes for budgets of all levels and multiplicative effect for regional economy as a whole. Major shipyards of the Caspian region are located in Astrakhan and are capable of repairing vessels of any class or purpose. Shipyards have highly qualified personnel, engineers and technicians, modern equipment and necessary infrastructure, including slips and docks with lifting capacity up to 5400 tons. Astrakhan shipyards have successfully performed traditional ship-repairing works, renovation of vessel hulls and shipbuilding projects. Large shipbuilding and ship-repairing yards are: “The Lenin Shipyard”, “Galaktika Ltd”, “Volga-Caspian Ship-Repairing Yard”, “Akhtubinskiy Shipbuilding Yard”, “Astrakhanskiy Ship-Repairing Yard”, “Zvezdochka”, “MSZ-2”. Besides, a special economic zone in Astrakhan is being established. It will make Astrakhan shipyards more competitive and will attract residents for new subsidiary productions. Machine-building industry of the region is represented by some large and medium enterprises, producing press-forging equipment, metal-working and woodworking machines, painting equipment, gas water-heating devices, agricultural equipment, boilers, die molds and accessories for metal-working equipment, ferritic products. “Astrakhan locomotive repair shop” (branch of “Zheldorremmash”), continues to develop actively. The company offers repairing of yard locomotives, diesel engines and electric machinery. It also produces wheel sets and spare parts for locomotives. In 2011 it won the national competition “Top 100 Goods of Russia”. At the moment the company is actively promoting its products to foreign markets. “Astrakhan Machine-building Plant” has started production of modified general purpose lathe IB625M and sells it both in Russia and the CIS. Joint-stock company “Technology of Magnetic Materials” supplies ferrite magnets to companies, working under Ministry of Defense of the Russian Federation and to several federal agencies. The company works to ensure national defense potential. Besides, its supplies components to some companies and organizations, producing consumer goods. Potential of machine-building industry development is connected with: growing need for renewal of machine equipment for metal-working industry due to considerable obsolescence of available equipment both in Russia and the CIS; production of new modern models of metal-working equipment at Astrakhan enterprises; signing contacts for repairing of rolling stock and locomotives with companies operating in the CIS countries; production of innovative electro-technical products. Food industry of the region is represented by companies, producing salt, bread and pastry, flour, macaroni and pasta, alcoholic and soft beverages. Chemical industry of the region is characterized by concentration of production at large and medium enterprises, accounting for the most of chemical production. Enterprises of the region manufacture a wide range of products: fiberglass, glass-fiber fabric, chopped fabric, polyethylene, molded and unmolded rubber items, medicinal cork, paint and varnish, roof coating, etc. Development of the industry is connected with modernization of largest enterprises to produce new products of higher quality. Light industry of the Astrakhan region is represented by large enterprises, such as “Sardonix” and “Dyuna-Ast” producing a wide range of PVC and EVA footwear and fishermen’s clothing. “Duet-Plus” specializes in designing and production of uniforms and protective clothing. Apart from the above companies, some smaller companies produce a wide range of clothes and bed-linen. Development of glass producing industry of the region is connected with further enhancement of production facilities of “BM Astrakhansteklo Ltd”. At present the company is equipped with modern imported equipment: glassforming machines IS-8, manufactured by “GPS” (Germany), glass-treating furnaces “Pennekamp”, automatic furnace charge shop with electronic dozation system. “Astrakhansteklo” has completely renewed its glass-melting furnace, and now it can produce up to 220 tons of glass products per day. Monthly production is 15 million pieces of glass items. The company produces both standard and exclusive glass bottles, phials of different design for pharmaceutical, perfume and cosmetic industry, as well as jars of different size to meet the demand of Astrakhan enterprises and partners from other regions of Russia and the Caspian countries. CONSTRUCTION AND CONSTRUCTION INDUSTRY Construction complex of the Astrakhan region includes over 960 organizations, employing about 18 thousand people. In order to develop the construction industry the region implements long-term target programme “Stimulation of house building development in Astrakhan in 20112015”. Special attention in this programme is paid to individual housing construction. At the moment over 60% of all houses, built in the region, are private, which corresponds to national housing policy. Low rise buildings are becoming more and more popular, which is quite understandable given today’s level of automobilization and obsolescence of utilities. The main task of house-building sector is to increase annual production to 1 square meter per person by 2020. There are all necessary conditions to implement the above plans. 35 multi-storey apartment buildings are under construction in Astrakhan at the moment. Their total floor space is over 220 thousand square meters. It is planned to complete the houses in 2012. Social and cultural infrastructure is developed simultaneously with house building: - sports and entertainment center, accommodating up to 7000 people and a swimming pool - embankment of the Volga River - shopping mall “Yarmarka and hypermarket “Magnit” at Vokzalnaya square - bus station, accommodating 300 passengers and a hotel with 132 comfortable rooms - non-stop transit road; total length 6.74 kilometers. - surgery department of Aleksandro-Mariinskaya Clinical Hospital No. 1 was put into operation and equipped with modern medical equipment. - school No. 594 in Solyanka village (Narimanovskiy district of the Astrakhan region) Construction materials industry is a dynamically developing branch of the regional economy. Construction materials industry and construction in the Astrakhan region are represented by the following plants and factories: - 10 concrete products plants, producing concrete goods, precast units and structures with total production capacity of 448 thousand cubic meters per year. There are also several workshops and facilities, producing over 700 thousand cubic meters of concrete and cement slurry; - 17 brick factories with total production capacity of 173 million bricks per year; - 2 producers of heat insulation materials (foamed polystyrene); - wood-working facility; - plant, producing gypsum rock and dry mixes. High demand for houses over the previous years has created prerequisites for development of construction and construction materials industry in the region. As a result there has been considerable growth of capacities in the construction industry: annual production capacities for concrete grew by 88 thousand cubic meters, for cement slurries – by 261 thousand cubic meters, for wall materials – by 80.36 mln. bricks. As production of construction materials and structural units requires a lot of electric power, companies of the industry tend to modernization, reconstruction, reequipment and introduction of modern energy and resource-saving technologies. Construction materials industry is developing steadily. In the nearest future it is planned to build two brick factories, a lime plaster plant and to start production of foam polystyrene blocks. Astrakhan actively participates in different federal programs, thus ensuring further development of construction industry. TRANSPORT INFRASTRUCTURE Astrakhan water transport hub. There are 20 stevedoring companies operating in the region. 16 of them handle general cargo and containers, 2 companies work with sulfur, and 2 terminals are designed for transshipment of oil and oil products. As part of its social and economic development strategy, Astrakhan continues development of Olya port and modernization of port facilities of port Astrakhan. The following federal properties are built in Olya port under federal target programmes “Modernization of Russia’s transport system (2002-2010)” and “Development of transport infrastructure in Russia” (2010-2015): terminals of the first cargo area No. 1, 2, 3, 4, 5, 6, 6a, 7, 8, 9, support terminals No. 10, 10a and 10b, engineering infrastructure. It is planned to carry out dredging. There are also private investment in the port, for example a grain terminal with annual capacity of 500 thousand tons. Up to 30 thousand tons of wheat can be stored at the terminal. Terminal for transshipment of vegetable oils is under construction. Its design capacity is 160 thousand tons. Total amount of financing of the first cargo area of Olya port is 14.4 billion rubles. 8.1 billion rubles have already been spent from the moment of starting the construction. Federal target programme “Development of transport infrastructure in Russia (2010-2015)” includes federal financing of the first cargo area of Olya port, designed for container, general and roll-on cargo, ferry transport and oil loading facilities. It is planned to make all design works in 2014-2015 and to start construction in 2015. Total amount of financing is 3.425 billion rubles, including 625 million from federal budget and 2.8 billion from private investment. Capacity building of the port means growing amount of cargo. Cargo turnover in Olya port increased year after year, which fully corresponds to national policy of maintaining and expanding economic, political and transport presence of the Russian Federation in the Caspian Sea. For example, in 2006 cargo turnover of Olya was about 270 thousand tons, while in 2010 it was 1054.1 thousand tons. Integration of Olya into the international transport corridor “North-South” will make the port one of the key element of Astrakhan water transport hub. Joint work of ZAO “Profit” and OAO “Armada Cargo Company” can be mentioned as a good example of cargo terminals modernization in Astrakhan port. The companies finished the first stage of modernization of “Armada”’s port facilities and have started reconstruction of cargo terminal No. 2. They are also working on equipment of a border checkpoint. Railroads connect Astrakhan with other regional centers of Russia, with Kazakhstan, Central Asia and Caucasus. Total length of railroads in the Astrakhan region is over 2200 km. Implementation of the investment project “Complex reconstruction of Trubnaya – Verkhniy Baskunchak – Aksaraiskaya section of Privolzhskaya railroad”. Railroad line Trubnaya – Aksaraiskaya of Privolzhskaya railroad is a part of the international transport corridor “North-South”. It connects Ural, Siberia, NorthWestern and Central Russia with southern regions of our country, ports of the Caspian Sea, Kazakhstan and Caucasus. Projected capacity of this railroad section is 65.3 million tons by 2020. Air transport in the Astrakhan region is represented by joint-stock company “Airport Astrakhan”; Astrakhan branch of “Aeronavigation South” of FSUE “Public Corporation for Air Traffic Management” and representation of “Aeroflot” in Astrakhan. At the moment air carriers “Siberia”, “UTair”, “Airflot”, “ARMAVIA”, “AZAL”, “SKAT”, perform regular flights to Moscow, Baku, Aktau, Erevan and SaintPetersburg. From March 31, 2014 “Turkish airlines” performs direct flights from Istanbul to Astrakhan. It should be pointed out, that number of charters to Turkmenistan, Kazakhstan, Ukraine and other countries has increased considerably in recent years. “Airport Astrakhan” is an international airport with capacity of 400 passengers per hour. The airport operates on a 24 hour basis. AGRICULTURE Agricultural complex in the region is developing in the following spheres: cattle breeding, crop growing and seedage. Processing and food industry are fundamental for food safety of the region. Considerable changes have occurred in agriculture over the last few years. A lot of new farms have appeared, and every year they increase their production, making an important contribution into food balance of the Astrakhan region. Over some years gross agricultural output in Astrakhan was higher than average output for Russia. Thanks to well-coordinated work of farmers and manufacturers of agricultural products agricultural output in money terms has increased over the last five years from 11 to 25 billion rubles. In comparable prices agricultural output has doubled. Crop growing Astrakhan is one of the leading producers of vegetables and watermelons in Russia. In 2012 year production was over 1 million tons. Over 50 varieties of tomatoes, rich in vitamins and with excellent taste are grown in the region. Growing of onions (annual growth of 10-15%) and of early vegetables (with the use of different kinds of hothouses) is considered very perspective. Climate of the region allows to get double cropping of potatoes. Using of highquality seed potatoes (Russian, Dutch and German sorts) is crucial for getting high and stable harvest. Production of early potatoes looks very promising and grows every year. Astrakhan has always been famous for its water-melons. One can say, that “Astrakhan water-melon” has become a well-known brand of our region. Taste and nutrition properties of local water-melons rank second to none both in Russia and Europe. Intensive gardening has also become one of the priorities of agricultural sector in the Astrakhan region. There are about 80 hectares of gardens in the Astrakhan region at the moment. It is planned to double the area in the nearest future. Intensive technology ensures fruit bearing already on the second year after planting the yard. Growing of rice has already become traditional for the Astrakhan region. It has good quality and corresponds to all sanitary norms, while its taste has made its popular among customers from many regions of Russia. Drip irrigation is widely used in the Astrakhan region. This equipment significantly reduces water costs and is used at the territory of about 20 thousand hectares. Cattle breeding Cattle breeding is developing dynamically in the Astrakhan region. It is proved by growing production and livestock population. Construction of dry feed lots and processing facilities is successfully implemented in 4 districts of the Astrakhan region under the target programme “Development of beef cattle farming and beef production in the Astrakhan region”: (“Astrakhanskiye Plemennye Resursy” in Narimanosvkiy district; “Lebed Ltd” and N. Shapieva’s farm in Privolzhskiy district; “Ubush Ltd” in Enotaevskiy district; “APK Liman” in Limanskiy district). There are 35 pedigree farms in the region, raising different breeds of animals, poultry and fishes. To support dairy industry 360 Simmental and red-and-white cows have been imported from the Slovak Republic. Sheep breeding is the leading branch of livestock husbandry in the region. Astrakhan has unique genetic fund of Karakul, Groznenskiy, Volgogradskiy, Sovetskiy, meet-wool and Edilbaev breeds of sheep, offering wide opportunities for production of mutton and wool. Horse breeding is developing in the Astrakhan region, and the stock of Kushumskaya and Donskaya breeds is growing. Our region is the leader in the sphere of Bactrian camel breeding (Kalmyk breed). Over 70% of all Russia’s camel stock is raised here. Every year shows of pedigree animals are organized, including camel races (the prize is provided by Minister of Agriculture of the Russian Federation). Poultry breeding is developing thanks to re-equipment of poultry factories. Chicken broilers are raised at one of poultry factories in the region. Development of processing industry Development of agricultural sector is impossible without development of all related infrastructure, including processing factories. Processing industry of the Astrakhan region is represented by such dynamically developing sectors as dairy industry, meat-, rice- and vegetable processing industries and production of compound feed for animals. There are 52 processing companies in the region, and 25 processing plants produce a wide range of canned fruit and vegetables (over 200 products, including tomato paste, juices, canned vegetables, marinades, frozen products, etc). Investments and subsidization of bank credits help to expand existing production facilities and to reequip them, or to establish new companies, applying modern resource-saving technologies and allowing for deeper processing of agricultural raw materials. Only over the last two years several major processing facilities of the Astrakhan region, including “Astrakhan Canning Factory”, “Astrakhan Natural Product”, Volodarskiy canning factory (all together they produce 70% of all canned and frozen vegetables in the region) have been reequipped. They bought new freezers and new canning lines. Meat processing factories (namely, “Akhtubinskiy” and “Liman”) have also bought new equipment. To address such issues as storage and distribution, 11 vegetable stores, equipped with modern ventilation and climate control equipment were put into service. These storage facilities ensure storage and pre-sale preparation of about 25 thousand tons of vegetables. Now total capacity of vegetable stores in the region is about 100 thousand tons, ensuring complete distribution chain “from the field to the shop”. TOURISM AND RECREATION As one cannot imagine Russia without the Volga river, the Volga cannot be imagined without Astrakhan with its remarkably rich history and unique nature and climate. Interlace of cultures and different civilizations Hunns and Sarmatians, Khazars, Pechenegs, Tatars and Mongols left a unique imprint on cultural and historical heritage of the Astrakhan region. Thanks to its unique nature and favorable geographic location near the Caspian Sea, Astrakhan has excellent potential for the development of competitive tourist industry, based on receiving both Russian and foreign guests. Astrakhan tourism has a clearly defined trend – fishing and hunting. Our region occupies 25-30% of Russian market for fishing and hunting, which have already become the brand of the Astrakhan region. At the same time other kinds of tourism are developing, such as cultural and educational tourism, eco-tourism, cruises, business travelling and event tourism. Over 2 million people visit Astrakhan every year. Fishing and hunting Fishing and hunting form the foundation of regional tourist product, ensuring stable inflow of tourists. This type of tourism depends directly on seasonal factor and on the condition of biological resources. According to expert estimates, fishing and hunting occupy from 70 to 90 percent of regional tourist market. The region tries to strengthen its position as the main center in Russia for sport fishing and angling by means of environmentally friendly treatment of its unique recreational potential and modernization of the whole range of tourist services. Cultural and educational tourism At the moment cultural potential of the region is represented by four theaters, philharmonics, Kurmangazy Sagyrbaev cultural center, 2 museums with 17 branches and over 300 thousand museum pieces, 651 cultural site and monument. Over 400 thousand people visit museums of the region every year. Archeological excavations, performed in the region for several decades, allowed to trace the history of our region starting from the IX century. Heritage of several historical periods, numerous architectural monuments, cultural sites and historic places could become the basis for archeological, ethnographic and historic tours. Khazar Khanate (Chaganate) was the first feudal state on the territory of the Astrakhan region. One of the most striking archeological findings from this period is Samosdelskoye Gorodische, called so because of the village located near this archeological site. In the XIII-XV century Sarai-Batu (also known as Sarai-alMakhrusa), the capital of the Golden Horde, was located here. This unique archeological evidence is over six hundred years old. Archeological research started here in the XVIII century and it still continues in our days. The site is known all over the world and is protected by UNESCO. Six kilometers to the north from Selitrennoye there is an interesting tourist attraction, named “Sarai-Batu, the capital of the Golden Horde”. In 1261 an orthodox eparchy was founded here, in Sarai Batu. And 750 years later a movie was made, dedicated to this event. Motion picture producers built a small town here with palaces, houses and mosques. Inside one can see pumps, items of everyday life, carts. Astrakhan Kremlin is the main sightseeing attraction, forming the image of our region As an architectural monument it has been nominated for the UNESCO World Heritage List. In 2009 a concept was designed to adjust the territory of Astrakhan Kremlin for international tourist business. Being, as Velimir Khlebnikov once said, “the triangle of Buddha, Christ and Mohammed”, Astrakhan could be very attractive for pilgrims. Temples and churches of many religions can be found here, and though this type of tourism is not widely spread, it could be prospective because of growing public interest to religion. Eco-tourism Unique nature of the region preconditions development of ecological tourism. There are two nature reserves in the region, one of which has the status of biosphere reserve, and 12 wildlife sanctuaries. The most popular eco-tourism trends include tours to the Caspian Sea in summer (when lotus flower blooms); tours to Bogdo mountain and Baskunchak lake; cactuses, growing in Kharabalinskiy district, blossoming poppies, oak forest and VolgaAkhtuba flood plain. Spa therapy Healing properties of water, brine and mud from lakes Baskunchak, Mramornoye, Lechebnoye, etc., springs of mineral and radon water, traditions of kumiss therapy, combined with dry and hot climate produce balneological effect and create conditions for spa tourism. Sanatoriums and health resorts “Tinaki” and “Bassol”, successfully operating in the region, prove that this trend could be perspective. Business tourism Active modernization and development of city infrastructure encourage business activity, helping to turn Astrakhan into the leading center of the Caspian region for organization of forums, congresses, conferences, sporting events, including regular ones. At the same time it helps to reduce dependence on seasonal factor, to distribute pressure on tourist infrastructure more evenly and to diversify regional tourist product. There are 88 hotels in the region, 55 of which are located in Astrakhan. There is one five-star hotel and one four-star hotel. Cruises Over the last years one could observe positive trend in cruising tourism. Number of passenger ships, arriving in Astrakhan, is steadily growing. Three operating companies specialize in cruise tourism in Astrakhan, offering various sightseeing programs and excursions in the city and in the region. Organization of modern stations for ship servicing both in Astrakhan and along the route of vessels and yachts could become an additional source of tourism development. Event-driven tourism Large-scale events represent a special aspect of tourism marketing in the region. Such events receive wide coverage in mass-media and help to promote recreation potential of the region. Fishing festival “Vobla”, historical festival “Polovetskiye Stepi”, rally-road “Khazar Steppe” and other events, organized in the region, prove the effectiveness of this type of tourism. INVESTMENT Astrakhan is a dynamically developing region with vast investment opportunities predetermined by its geopolitical location, investment potential and low investment risks. Growing amount of investment in the region can be attributed to the availability of attractive projects for financing and active investment policy of regional Government, providing for favorable investment climate in the region. Attractive conditions for investment are ensured by a whole range of measures from improvement of investment legislation to establishment of specialized institutions to support regional investment activity. Upon the whole, investment process in the region is characterized by positive trend. This positive dynamics is supported by growing consumer and investment demand in the region, including the prospect of developing oil and gas fields in the Northern Caspian and development of transport. Legislative and regulatory framework of the Astrakhan region for investment attraction is constantly improved to adjust to real market conditions and at the moment it is one of the most investor-friendly regulatory frameworks in the Russian Federation. Public support of investment activities in the Astrakhan region is carried out pursuant to the Law of the Astrakhan region “On public support of investment activities in the Astrakhan region” No. 50/2006-RL dd. 16.08.2006. The following forms of public support for investment activities are available in the Astrakhan region: an investment project can be assigned a status (investment project, approved by the Government of the Astrakhan region; investment project of special importance; social investment project; investment project, implemented in the zone of complex development of the Astrakhan region); participation in elaboration, promotion and implementation of investment projects. Assigning the status to an investment project involves income tax and property tax remissions pursuant to the Laws of the Astrakhan region No. 83/2009-RL dd. 16.11.2009 “On reduced corporate income tax for certain categories of taxpayers” and No. 92/2009-RL dd. 26.11.2009 “On corporate property tax”. Tax rate Special importance procedure Investment project approved by the Government of the Astrakhan region - to the federal budget 2.0 % 2.0 % 2.0 % - to the regional budget 18.0 % 16.0 % 13.5 % Corporate property tax - to the regional budget 2.2% Tax rate varies from Tax rate varies from 1.8 to 1.1% 1.0 to 0.2% Tax Common investment project Income tax: Law of the Astrakhan region “On public-private partnership in the Astrakhan region” has been approved to fix basic principles of partnership: interaction between the parties, division of responsibility and risks, freedom of contracts and balance of public and private interests. Investment attractiveness of the region is not limited to the system of preferences for investors and subsidies for manufacturers of agricultural products. Government of the Astrakhan region and local self-governments use various direct and indirect regulatory and managerial methods to stimulate investment. Web-site of investment offers http://invest.astrobl.ru is operating successfully. It contains all useful information for potential investors and partners, including regional legislation, available investment sites, description of investment projects, etc. Multifunctional interactive map of the Astrakhan region is also available here, which can be singled out as a separate tool for investor’s information support. REGIONAL AUTHORITIES Governor of the Astrakhan region Alexander Zhilkin 15 Sovetskaya St. 414008 Astrakhan Russia Tel. 8512 51-17-67 [email protected] Vice-governor – Chairman of the Astrakhan region Government Konstantin Markelov 15 Sovetskaya St. 414008 Astrakhan Russia Tel. 8512 51-15-74 [email protected] Deputy Chairman of Astrakhan region Government – minister of economic development Elina Polyanskaya 15 Sovetskaya St. 414008 Astrakhan Russia Tel. 8512 51-49-93 Fax. 8512 52-50-66 [email protected] Minister of international and foreign economic relations of theAstrakhan region Denis Afanasiev 45 Esplanadnaya St. 414000, Astrakhan, Russia Tel. 8512 51-61-24 Fax. 8512 51-17-09 [email protected]
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