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Results of the Presentation of Krasnodar Region

December 10-12, 2006

Tree years ago Kuban Governor Alexander Tkachev and Samsun Governor together turned the lever and launched the “Blue Stream” of Russian gas to Turkey. Yesterday Istanbul Governor Muammar Guller and Alexander Tkachev together opened the way to Turkish investments in Krasnodar Region: they signed the Protocol of Cooperation between two big regions of Russian and Turkey. The presentation of Krasnodar Region in Turkish Republic, which took place in Istanbul Ciragan Palace has become the ‘lever’ of the money stream.

About 700 representatives of Turkish companies and about one hundred of Russian companies, operating in Krasnodar Region, took part in the presentation. The list of VIP participants from Russian and Turkish part included the Ambassador and Commercial Representative of Russia to Turkey, the Consul General of Russia in Istanbul, the President of the Russian Olympic Committee, the State Secretary of Foreign Trade, the Governor of Istanbul Vilayet, the Mayor of Istanbul City and the Secretary General of the Black Sea Economic Cooperation Organization.

The exhibition display of Krasnodar region occupied more than seven hundred square meters. The main department of Kuban “investment supermarket” – about three hundred projects of total worth almost RR 800 billion was brought to Turkey.

At the conference and round tables Governor Alexander Tkachev, his deputies, chiefs of regional departments, mayors of cities and towns of the Azov and Black Sea coast, Krasnodar, Armavir, Kropotkin and Goryachiy Klyuch represented for Turkish business community the best investment sites of the region. They visually demonstrated that people of Kuban together with Turkish companies are ready to erect power plants and distribution networks, furniture manufacturing plants and plants for agricultural raw products processing, as well as to build housing complexes and hotels.

Turkish party expressed keen interest to Olympic projects and to special economic zones of resort and recreational type, which are to be created at the Black Sea coast of the region. Governor Muammar Guler even said that Istanbul completely supports Sochi as a candidate to conduct the Winter Olympics, and the Olympic project is to open new opportunities for investments in tourism.

The realization of the Protocol of Cooperation began right on the day of signing.

Alexander Tkachev signed six agreements worth of half billion euro with the largest companies of Turkish Republic. Ideser Seramik Sanayi ve Ticaret A\S confirmed intentions to invest EURO 30 million in the construction of a plant for ceramic tiles manufacturing in Armavir and attract contract organizations of Krasnodar Region to realization of this investment project. The plant is to be put in operation in 2008.

Almis, a Turkish construction consulting company, together with our Expo-Center invests USD 45 million in reconstruction of the Sennoy Market in Krasnodar. Kuban contractors and construction materials manufacturers will participate in the reconstruction, which is to start in the next February.

The agreement about M 500-900 cement manufacturing plant construction was reached with “Southern Transnational Agency of technology development”. Marl deposit in Abinskiy district will serve the raw materials base for it. The construction of the enterprise, in which the investor is ready to invest USD 400 million, is to begin in the middle of 2007.

Agreements with UPN TRANSPORTATION on cooperation in the sphere of air- and railway shipments were reached with the Black Sea Bank for Territorial Development about financing of investment projects on the territory of Kuban.

“Anadolu Cam Sanayii A. S.”, a part of major concern Sisecam, is to invest some EURO 70 million in the construction of a glass tare plant in Krymsk of 650-700 million units annual capacity. This company has already launched similar giant-plants in Vladimir and Vologda Oblasts. By the end of 2007 Krasnodar region will also have modern ecologically clean operation and several hundreds new jobs.

In addition to that, almost each sectoral department signed agreements about creation of joint production in their industry. And this is just the beginning. During the presentation Governor Alexander Tkachev and President of the Confederation of Businessmen and Industrialists of Turkey (TUSKON) Rizanur Meral signed a cooperation agreement in the sphere of attracting investments for realization of projects on the territory of Kuban. Samsun city administration and the administration of Novorossiysk agreed about the development of car-ferry and passenger traffic services on lines ports Samsun-Novorossiysk, Samsun-Caucasus with attracting of Turkish and Russian ships. In addition to that, a cooperation agreement was signed between the Russian-Turkish Business Council and the Chamber of Commerce and Industry of Krasnodar Region and a cooperation agreement between Russian and Turkish Olympic committees. In total 41 agreements worth of EURO 777.3 million were signed during the presentation.

On December 12, the participants of Krasnodar Region delegation visited Turkish enterprises in various industries. Numerous meetings with company directors were conducted within the framework of the visits.

During the presentation, meetings and negotiations representatives of business community of Turkish Republic expressed keen interest to Krasnodar Region, showing the desire to visit Kuban in the near future.

All this means that now both the Turkish coast and the Black Sea coast of Krasnodar Region will be closer not only for entrepreneurs, but for politicians as well. The presentation of Krasnodar Region justified hopes of the leadership of Krasnodar Region and Prime Minister of Turkey Regep Tayip Erdogan – the participants of the meeting spent the time with great use both for their business and for development of Russian-Turkish relations. Cooperation with Krasnodar Region is extremely important for Istanbul – economic capital of Turkey.


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