Astrakhan region
The Astrakhan Region (Oblast) is situated in the extreme southwest of the European part of Russia and occupies the area of 44,000 square kilometers. The region is a frontier area: its land border is 1,810.2 km including the 298-km long coast. The region borders upon the Republic of Kazakhstan on land and the Azerbaijan Republic, Republic of Turkmenistan and Islamic Republic of Iran on the sea. Our neighbors in Russian Federation are the Volgograd Region and Kalmykia.
The number of the permanent population of the Astrakhan Region amounts to more than one million people. They represented more than 150 ethnic groups: Russians (72%), Kazakhs (12%), Tartars (7%) and many others. Able-bodied citizens make 59,5 of the population. Average age is 36 years. Most of the Astrakhan people live in towns (66%), others in rural areas (34%).
The Astrakhan Region belongs to the Southern Federal District together with the republics of Adygeia, Daghestan, Ingushetia, Kabardino-Balkaria, Karachai-Tcherkessia, North Osetia-Alania, Krasnodar and Stavropol Krais, Volgograd and Rostov Regions. Besides it belongs to the Volga Economic District.
The location of the region in the trade crossroads has caused a well-developed transport infrastructure. The Astrakhan Region is a strategically important transport hub where the waterways of the Caspian Sea and Volga river meet Russian railways and motorways. The Astrakhan transport hub provides a connection between Europe and the countries of West and Central Asia, India and Pakistan, countries of the Indian Ocean in the shortest way via Russia.
The Astrakhan part of the Volga railroad connects Astrakhan to central cities of other Russian regions and North Caucasus. There are important highways like Astrakhan - Moscow, Astrakhan - Makhachkala, Astrakhan - Krasny Yar - Atyrau.
Favorable geographic location together with permanent development of economic, political and cultural ties makes Astrakhan a region with a large potential for foreign partners.
NATURAL RESOURCES
The Astrakhan Region is rich in minerals like gas and oil, building materials (clay, gypsum, haydite and silicate sand), chlorinated and bromine salts. Fish resources of the region are unique.
The region has become famous for its reserves of natural gas and oil. The Astrakhan gas condensate field is one of the largest in Russia. The operating field is unique for its reserves of gas and gas condensate (from 3.6 trillion up to predicted 6.0 trillion cubic m), which twice as large as the Orenburg field (1.6 - 1.8 trillion cubic m), as well as for the complexity of the composition. Apart from hydrogen sulphide (24% on average) it also contains carbon-dioxide gas (12-16%), carbon oxysulfide and sour sulfur.
There have been discovered a number of other promising fields in the regional area. The general capacity of oil and gas reserves is estimated at 8,90 million tons of oil, 572,3 million tons of gas condensate and 3,720 billion cubic meters of gas. Initial oil and gas condensate resources comprise 2 billion tons of oil and 513 trillion cubic meters of gas. Mild climate and developed infrastructure make the Astrakhan fields very attractive for development in comparison with those of Siberia and Far East.
The most districts of the region are promising in the terms of oil and gas availability. There are prerequisites for discovering of new large hydrocarbon fields. Some sites are promising for oil and gas exploration in persalt and subsalt complexes and first of all the right bank site of the Astrakhan field. There are also great prospects connected with the exploration of Devonian and low Carbonic oil-reservoir horizons on the depths of 5,000 - 6,000 meters.
At present the Caspian region is becoming more important for Russia owing to hydrocarbon reserves available in Russia and Kazakhstan, on the west Caspian shore near Azerbaijan and in the east part adjacent to Turkmenistan. According to the available assessments predicted reserves in the Caspian region comprise about 16 billion tons of oil and 10 trillion cubic meters of gas. Such significant resources are able to make the region a world major oil and gas producer in the XXI century. The value of these resources is estimated at US$ 4 trillion. The experts claim that in the part of the Caspian Sea adjacent to the Astrakhan region there has been discovered not a separate field, but a whole oil-and-gas province, which is a unique occasion on the Russian scale.
The region is famous for its Baskuntchak deposit of salt. The deposit serves as a main base for production of table and technical salt in Russia. Besides, there are a lot of small deposits of salt on the territory of the region in salt lakes and numerous saline lands as well as of rock salt in stratums and domes 150-300 meters deep.
The Baskuntchak deposit of bromide brine with average content of bromine up to 350-g/cubic meters is considered profitable according to international standards. There are possibilities of starting bromine production.
Raw materials for chemical and petrochemical industry are available, too. The main deposit Krasnoyarskoye is situated in the north of the region is considered a unique one in terms of the reserves and their quality. Explored reserves amount to 20 million cubic meters.
There are reserves for production of building materials available in the region. The deposit of clay is located in the southern part of the region in the Volga delta, that of gypsum in the region's north near the lake of Baskuntchak.
There were discovered three types of balneal mineral water in Astrakhan. The first type is nitrogen and chloride mineral water with the same composition as the curative drinking water of “Staray Russa” health resort. Sodium chloride, bromine, iodine, mineral water is extracted on the territory of the sanatorium “Tinaky - 2”. This water is used as curative drinking water and in balnearies for baths.
The availability of a great number of fish species in the Volga and the Caspian Sea determines fishing specialisation of the region to a large extent. Among more than 60 species about 30 are objects of trade. The Caspian sturgeon stock (Beluga, Russian Sturgeon, Sevruga) is unique. Caviar supplied to the world market is mainly produced in the Astrakhan Region. The bioresources of the Astrakhan Region (sazan, pike perch, catfish, bream, the Astrakhan herring and other) are supplied to the domestic and foreign markets.
The Astrakhan Biosphere Reserve and game-preserves in the Volga delta are the favorite places of hunters and fishermen from all over the world. There are unique places in the region assigned for hiking. Sanatorium-and-spa treatment facilities are made for by the availability of medical mud and mineral water. There is a possibility to receive 150,000 people annually for rest.
TRANSPORT INFRASTRUCTURE
Owing to its geographical location the Astrakhan Region is a strategically important transport hub that occupies a key position on the shortest and most economically favorable transport routes between Asia and Europe. The Region's transport network consists of 567 km of railways, 3,809 km of motor roads and 1,120 km of navigable waterways.
The Volga and the Caspian Sea make the Astrakhan transport hub the shortest and most suitable way connecting Europe with the Central Asian countries, India and Pakistan, the countries of the Indian Ocean basin. Opening of a new International transport North-South corridor from Mumbai (India) to Astrakhan (Russia) via Bandar Abbas (Iran), Anzali (Iran) and the Caspian Sea makes a favorable alternative to the existing route in terms of shorter time and lower cost of delivery. According to experts' estimates the development of 'Volga-Don-Danube' water corridor would enable to increase freight flow from the countries of the Caspian Sea, Gulf and South West Asia to Russia, CIS countries and Europe up to nearly 20 million tons/year. The time of delivery would be 2-3 times shorter than that of the existing routes.
One of the main infrastructure objects of the Russian site of the North-South corridor is a new merchant Olya port of the Astrakhan Region, which is under construction now.
Olya port is located at the 60-th kilometer of the Volga-Caspian canal (100 km to the south of Astrakhan). The port has a dry-cargo berth 180 meters long and truck-ferry complex (the quay wall is 130 meters long), equipped for receipt “Ro-Ro” type vessels, operating at cargo-passenger line “Caspian Trucker Line” to Turkmenbashi port (Turkmenistan) and Anzali port (Iran). The port is equipped with 4 cranes with lifting capacity of 20-25 tons. The depth by the berth is 5,2 meters. The handling capacity of the active berths is 540 thousand tons per year.
ECONOMIC POTENTIAL
There are 1640 industrial enterprises of different forms of ownership in the Astrakhan region. The leading positions belong to the enterprises of fuel and energy, machine-building, food, construction materials brunches. An important place is given also to the chemical and petrochemical, light, wood-processing and glass industries.
Lately among the industrial brunches of the region fuel and energy sector is developing with most rapid spaces. The share of this sector in the total volume of industrial output increases annually and in 2002 the share accounts 70%.
The major enterprises of fuel industry are JSC “Astrakhangasprom”, that explores Astrakhan gas-condensate deposit, and JCS “LUKoil - Astrakhanmorneft Ltd.”, that specializes in oil and gas extraction in Beshkoulskoye, Promyslovoye, Olenikovskoye and Severo-Shadjinskoye deposits.
Joint Stock Company (JSC) “Astrakhangasprom” is the most significant enterprise in the region, the share of its production volumes accounts about 60% of the industrial output. The enterprise produces high-octane petrol, black oil, diesel fuel, liquefied gas, sulfur. JCS “Astrakhangasprom” is the main sulfur producer in Russia (more than 60% of the whole volume of sulfur, produced in Russia). In three years volumes of industrial output of the enterprise increased 18,4%, whilst in 2002 the rates of volume growth are estimated in 101,8 %.
Astrakhanmorneftgaz Company carries out exploration works and oil extraction. In 1999 Severo-Shadzhinskoye oil deposit was put into operation, the volume of gas extraction reaches up to 80 million cubic meters per year, promising wells in Promyslovoye gas deposit were discovered.
Power industry in the Astrakhan Region is presented mostly by JSC “Astrakhanenergo”, its specific weight in the brunch accounts about 80%. Power system enterprises provide only 86% of the total need of the region. Power provision of regional economy will become worse sharply in 2003-2005 in connection with the decommissioning of the depreciated generative capacities of Astrakhan Hydro-Power Station (HPS) (deterioration of the energy assets in the region accounts 50%). Thereupon and with the purpose to meet the growing needs of the real sector of economy in energy resources, it's planned to increase capacities of acting power stations by 2005 up to 774 megawatt through reconstruction and modernization of Astrakhan HPS and through development of small and non-traditional power engineering.
Machine-building sector includes machine-building and metal-processing, ship-building and ship-repairing enterprises. Its share in the volumes of regional industrial output accounts about 9,0 %.
Machine-building sector development is determined mostly by the development of ship-building branch: the share of ship-building and ship-repairing enterprises accounts more than 70% of production output and about 60% of machine-building sector.
In the Astrakhan Region there are 15 ship-building and ship-repairing yards, able to construct vessels of any class and to repair vessels weighing up to 6000 tons, lifted to the dock or to the slip. The enterprises of the branch produce different classes of vessels: dry-cargo ships, tankers, container carriers, motor-boats, fishing vessels, refrigerators, self-propelled vessels of “river-sea” type, floating drilling platforms, no-self-propelled barges, crane vessels of high carrying capacity. The largest ship-building and ship-repairing enterprises are: JSC “Ship-building and ship-repairing yard named after 3-rd International”, JSC “Ship-building yard “Krasnye Barricady”, Joint-Venture “Astrakhansky korabel”, JSC “Ship-building yard “Lotos”, JSC “Ship-building yard named after Lenin Ltd.”, JSC “Astrakhan ship-building yard”, JSC “Volgo-Kaspiysky ship-building yard”, JSC “Akhtubinsky ship-building yard” and others.
The development of the International North-South transport corridor, enlargement of cargo turnover along this direction as well as optimistic forecasts on considerable oil resources in the shelf of the Caspian Sea speak about the future necessity in transport vessels of various type for transshipment and extraction of oil. Such vessels can be constructed at the Astrakhan shipyards.
The shipyard named after the Third International has established close business contacts with a number of Russian and foreign partners (Dutch firms Breko and Rein Trailer Transport Rotterdam, Russian companies Yug-Tanker and Bashvolgotanker and others). In 1999-2002 it constructed a hull of a tanker for chemicals for Breko, a hull of an oil stripping station for Yug-Tanker, hulls of a dumb barge, a general cargo motor ship and an auxiliary barge for Holland, an oil barge for Bashvolgotanker, a tanker for chemicals for Russian- Czech joint venture Sampratrans-Shipping Ltd., ice protection for oil drilling platform for Dutch Agip Kco company, 2 self propelled vessels for Rhine Trailer Transport Rotterdam company, chemical tanker's hull and self propelled vessel's hull for Holland, re-equipment of ice protected barge for Agip Kco company,and other projects.
JSC “Krasnye Barrikady Shipyard” is developing dynamically. The high professional skills of its personnel have been confirmed more than once during fulfillment of the most sophisticated orders. The major companies like JSC Gazprom and Agip are its partners. The major projects implemented by the shipyard were Astra rig for Lukoil Company, self propelled floating crane Bakhtemir and self propelled floating crane Gazshelf for JSC Astrakhangazprom, support-lifting machine for Gazprom Company, two oil barges for Tanker Company, ice protection constructions for Sunkar drilling platform. At present, the yard has the following large orders: lead refueller tanker for Gazprom Company and two oil barges for Tanker Company.
Joint-Venture “Astrakhansky korabel” was created on the basis of industrial capacities of JSC “Marine ship-building yard” and was certified to produce vessels under surveillance of Marine Register of Navigation of Russia and German Lloyd. Beside the shipbuilding and drilling platforms constructions the enterprise has an experience of ship docking and repairing. Technological equipment of the yard permits to carry out: construction of tankers, container-carries, floating cranes, dry-cargo vessels, any type of barges, as well as the repairing of floating drilling platforms. During these years a number of machine-building enterprises managed to obtain positive results. Thus, within the framework of the regional program “Gasification” JSC “AKMA” started to produce hot-water boilers with the capacity 100 kWt, gas mini-boilers are produced. JSC ”Anticormash” mastered production of gas stop valve and increased production of trading pavilions of different destination, modified filling stations of container type. JSC “Machine-building plant “Progress” carries out the program of mastering and producing of new production (Chizhevsky lamp, tape-recorders, power-resources meters, gas infra-red burners for gas-stoves, compact luminous lamps, etc.).
In the building materials industry there are more than 50 enterprises, specializing in the producing of high-technological building production. Due to the increase of living areas building in the Astrakhan region the demand for their production constantly increases lately. Production of wall materials, building bricks, gypsum, panels and structures for large panel housing construction, porous fillings increases. AZHO Company produces construction blocks with fixed casing heat insulation for solid housing construction.
The development program of “Mineral-Knauf” private company is implemented successfully. Now it is one of the largest and dynamically developing companies of the sector. Its output produced under Knauf technology is of high quality and competitiveness.
In the region there are 10 enterprises producing walling materials (Astrakhan Ceramic Walling Works, Initsiator, Yaksatovo Brickworks, Gontchar, Plinfa and others). There has been started production of two insulating materials in the region: foamed insulator by Orgtekhstroy and foamed polystyrene sheets by Elko, ZJBK Gazprom and ADSK Gazprom.
Elko Ltd. is a major supplier of all the kinds of electric appliances and equipment as well as precast concrete constructions, inert materials and metal-roll to construction and industrial firms of Russia.
The major representative of chemical industry of the region is JSC “Astrakhanskoye Steklovolokno” (Astrakhan Glass Fiber) producing unique electrical insulating glass cloth, chopped glass fibre for electrical engineering, fibreglass plastic rolls and other products. Due to the combination of heat, mechanical and dielectric characteristics these materials are irreplaceable in different branches of industry. They help to create new energy saving technologies, which are ecologically clean, as well as modern material compositions of high quality for different purposes.
The food industry is the second most important sector for the region (after fuel industry). It gives the region 12,04% of industrial output.
Major branches of the regional food industry are fish, salt, flour-and-cereals, baking, meat, vegetable and alcohol.
The availability of a great number of fish species in the Volga and Caspian Sea determines fishing specialisation of the Oblast to a large extent. Among more than 60 species about 30 are objects of trade. The Caspian Sea contains 70% of the world population of sturgeons, and 40% of them are available in the region. It is not by chance that fish sector gives 40% of the food industry output.
There are 185 firms in the region catching, processing and producing fish products like refrigerated, frozen, salt, smoked, canned and prepared fish and feeding meal. Caviar and sturgeon products produced in the region are famous worldwide.
The major fish producers are Kasprybkholodflot, Astrakhansky Rybokombinat and Russian Caviar.
Russian Caviar Company is a large fish processing enterprise producing exported delicacy sturgeon products, balyk and caviar. During a number of years the enterprise have been awarded with the world prizes for the product quality. Along with the sturgeon processing the enterprise put out the fresh water fish products: vacuum packaged frozen filleted fish, smoked and dried fish, fresh water fish balyk.
Kasprybkholodflot Company possesses more than 20 large-capacity vessels, oriented to the fishing in the Caspian Sea, and also the company possesses large facilities for food fish products manufacturing. Thanks to the cumulative manufacturing potential the enterprise during the last years increase production range annually.
Astrakhansky rybokombinat (Astrakhan fish processing complex) is profiled at canned fish manufacturing, caviar production of fresh water fish, culinary production. In 1998 the reconstruction of manufacturing capacities was carried out and capacities for dried and solted fish manufacturing were put into exploitation, manufacturing of new kinds of production was started: new sort of canned fish and vacuum packaged frozen fish production. The assortment of culinary fish production was enlarged. Since 1998 fish production supplies for cosmonauts nutrition have been resumed.
A special attention will be paid to reproduction and conservation of Caspian bioresources. Nowadays Astrakhan Oblast is practically the only Caspian region that takes up sturgeons reproduction and here the scientists working over this problem are concentrated.
Six fish breeding plants breed beluga (white sturgeon), sturgeon and stellate sturgeon in the amount of more than 50-55 million fish annually. The introduction of the commercial sturgeon breeding technology is one of the most considerable innovations of late. It helps to breed fish up to sexually mature age, receiving caviar and flesh at that. The Fisheries Research Center for sturgeon production “BIOS” has worked out a prospective technology on industrial sturgeon breeding in the ponds of small area, and also production of fish breeding stock of higher weight for supply to other commercial sturgeon breeding farms. Fisheries Research Institutions CaspNIRH and BIOS have worked out a project of the conception of commercial sturgeon breeding in the Astrakhan Region, which was included into the State Committee of Fishing industry of Russia for agreement.
Another large industrial sub branch is salt production. The salt production industry is represented by Bassol Company that exploits Baskunchak salt field, the main source of food and technical salt in Russia (58% of national salt production). Increase of salt production and mastering of new kinds of production (iodine and technical salt) enable the enterprise to become one of the most stable of the region.
Practically all the demands of the internal market are covered by the production of Astrakhan liqueur and vodka plant and Astrakhan alcohol plant. The enterprises production including large assortment of vodka, liqueurs and gins was awarded with high prizes of different exhibitions and festivals not once. The enterprises carry out the permanent work over the production output increase and assortment enlargement.
Favorable climate and presence of rich water recourses determined Astrakhan region as a zone of production of vegetables, heat-loving melons and gourds and rice.
The quantity of lands that are used for vegetables production is the largest in the Volga River region. Astrakhan melons and vegetables are specified by great taste. Watermelons in terms of taste, medical and dietic qualities are the best in Russia and Europe and tomatoes are the source of valuable vitamins and minerals. In terms of Vit C percentage tomatoes are not worse than lemons.
The Astrakhan agricultural manufacturer's products were more than once awarded with high prizes at different exhibitions and fairs. They are sold in over 40 regions of Russia.
The production of Astrakhan tinned food factories, such as tomato paste, canned fruit and vegetables, sauces and ketchups are well known in other regions of Russia.
Recently, the situation the situation of cattle breeding sector has improved. The growth of meat and dairy production is provided due to its increase in private and collective farms.
The region has a unique genetic potential of fine-fleeced, astrakhan fur, meat woolly and edilbaevskoy breeds of sheep, which provide high potentials for production of wool.
There has been created scientific and staff potential, material and technical basis of cotton-growing sector in the Astrakhan region which definitely has good perspectives for development. The cotton market practically has no boundaries. At present, the textile industry of Russia works only with imported cotton. Foreign produces of soft goods show their interest in cotton. Taking into consideration these circumstances primary cotton can be easily sold in both domestic and foreign markets.
INVESTMENT ACTIVITY
Astrakhan Region Law of 1998 'On Investment Activity in the Astrakhan Region' is the main act regulating investment of capital on the Region territory. It specifies procedure and conditions of investment process in the Astrakhan Region and is aimed at stimulation of investment activity, development of investment market as well as securing of the interests of subjects of investment activities. The status of the investment projects and ways of state support depending on the status is determined for the first time in the Law. One of kinds of state support of implementation of the investment projects pursuant to this law and Law of Astrakhan region "On the taxation, assemblies and other payments in territory of the Astrakhan region" is the preferential taxation of firms realizing investment projects:
For firms realising 'Particularly Important' the rate of the profit tax in a part, entered in the funded budget, is established at a rate of 10,5 %; and rate of property tax in a part entered in the funded budget of area, - 0,2 %.
For firms realising the investment project 'Adopted by the Region Administration' the rate of the profit tax on profit obtained as a result of exploitation of objects of the manufacturing investments in a part entered in the regional funded budget, is established at a rate of 12,5 %.
For firms realising the investment project 'Adopted by the Region Administration' rate of property tax on property relating objects of the manufacturing investments, created as a result of implementation of the investment project is reduced on 50 %.
For banks and credit enterprises, which give credits with money cost not higher than repayment rate of the Central Bank of Russia for the investment projects, having the status of 'particularly important investment project' and 'approved by the Region Administration' the rate of the profit tax on profit is reduced on 0,2 interest-bearing items for each percent share of the defined credits in the general volume of given credits in regular tax period.
The agreement between the Region Administration and Moscow Municipal Bank (Bank of Moscow), joint-stock commercial Saving Bank of Russia, Bank of Foreign Trade, Russian Agricultural Bank helped to attract money to the region's economy together with giving tax privileges and guarantees on credits.
The state support of investment activity in our region appears also as granting of the state warranties, different not financial privileges: the state regional bookings on favourable terms, rendering assistance on creation of an infrastructure of business, obtaining in rent and acquisition in the property of the land lots and objects of the real estate, incompleted construction, being the regional property and etc.
The state warranties of region are the legal, financial and property warranties, directed on protection of the investors' rights.
The legal warranties include maintenance of non-distribution of operating regional statutiry and subordinate legislation in a part of the taxation aggravating conditions of investment during all term of payback of the investment project.
Financial and proprietary guarantees include:
ensuring of investors' capital commitments with property not distributed according to proof of ownership and attributed in accordance with established procedure to the state property of the Region within the limits of competence of the Region government bodies, as well as with funds within the limits provided by the Region budget;
compensation in accordance with established legal procedure of investors' loss of profit and damages caused by wrongful activity or inactivity of officials of the government bodies;
for 'Particularly Important' projects compensation of investors' damages caused by contract default.
The warranties of the investor rights for the land lots are fixed in the Law 'On Investment Activity in the Astrakhan Region'. On period of implementation of the investment project the land lot, on which one is arranged object of investment, at the investor request can be fixed behind him on the right of use or rent with the concluding of the applicable agreement for the term of implementation of the investment project, but no more than for 5 years.
The legal ground of acquisition by the investor of the land lot in the property or, at the discretion of the investor, the conclusion of a contract for long-term estate for years not less than 49 years is proper fulfilment of the investment project by the investor.
In an effort to perfect the legislation in the investment sphere there was adopted the Law of the Astrakhan Region on Development Budget of the Astrakhan Region defining the legal and organisational foundations for forming and spending of the development budget aimed at rendering the governmental assistance for implementation of highly efficient investment projects.
The development budget will assist to the projects initiated by the Administration of the Region by means of:
financing of the Administration's participation in authorised capital of companies established for implementation of investment projects;
financing of specifically important investment projects implemented by enterprises founded with the Administration's participation;
financing of investment projects in the framework of the regional purpose-oriented programs for industry;
financing of investment projects implemented on the leasing basis in the volume that does not excess the initial amount of the leasing payment;
decreasing of interest rate of credit attracted for implementation of investment projects.
The Region Administration has developed and adopted the conception on investment policy, which is aimed at the stimulation of enterprises investment activity and attraction of investors, creation of conditions encouraging attraction of investments to those branches of the economy that have the priority to the region.
The following branches of the regional economy have the largest potential for investments:
Oil and gas extraction
The following directions of oil and gas complex are becoming the leading ones:
- development of geological survey works aimed at the quest for new fields;
- utilization of the existing fields;
- construction of necessary infrastructure for the further utilization and development of oil and gas fields.
Transport complex
The following directions of transport complex development have the priority:
- construction of the maritime trading port Olya and a railway coming to it;
- reconstruction and modernization of the Astrakhan consolidated port including construction of mooring facilities and mooring covering, purchase of port machinery (container loaders and port cranes);
- establishing of the operating companies for cargo flow service;
- development of the existing and establishing of new shipping companies, modernization of vessels depot;
- reconstruction of «Astrakhan» airport, including the strengthening of the runway, providing the airport with modern equipment and modernization of the airport building;
construction of the by-pass road from the eastern side of the city of Astrakhan and branch-lines to the sea ports, construction of the ferry trans-Caspian crossing, reconstruction of bridges.
Shipbuilding
The system of program activities include:
construction of drilling rigs for search and development of hydrocarbon resources;
construction and maintenance of vessels for the development of navigation in the Caspian sea.
Fishery complex
The following directions of fishery complex development have the priority:
- reproduction the sturgeon reserves;
- commercial sturgeons breeding;
- pond pisciculture;
- production of gigantic fresh-water shrimp;
- increase and modernization of the fishing fleet including that one for the catch in the Northern part of the Caspian;
- perfection of the fish processing technologies at the basis of new techs carrying out complex processing of the fish raw material;
- modernization of fish processing enterprises.
Tourism
The following directions of tourism complex development have the priority:
- construction and modernization of hotels, including establishing of the network of small ones;
- reconstruction of the sanitary centers and recreation spots that are presently out of work;
- accomplishment of the territory of Astrakhan biosphere reserve, that is aimed at the ecological tourism development;
- establishing of the so called «green sites» network..
Agricultural complex
The following directions of agricultural complex development have the priority:
- application of the drop irrigation system;
- development of cotton production and processing;
- development of tobacco production and processing;
- mastering of the new crops including creation of the base for their processing;
- introduction of herbs into the economic turnover thanks to the pharmaceutical industry development;
- development and processing of meat and milk production;
- development of the poultry farming;
- perfection of the agricultural production processing technologies by using of innovations;
- development of printing and glassware industry as the basis for production increase and enlargement of the agricultural production assortment.
Development of the housing construction and building materials production
The following directions of the housing construction and building materials production development have the priority:
- reconstruction of dilapidated and breakdown houses in the city of Astrakhan;
- construction of new houses in rural area;
- application of modern technologies;
- arrangement of the production of the facing ceramic materials, road bitumen, concrete mixture and sulfur polymeric cement;
- arrangement of the production of building materials based on gypsum;
- modernization of the existing enterprises taking up building materials.
The Federal Target Program 'The South of Russia' for 2002 - 2006 must play an important role in the further development of the region's economy. It has 50 projects to be realized in the Astrakhan Region. The projects are divided into four main groups: projects of geo-strategic, general federal, interregional and regional significance, which are reflected in five directions and presuppose the development of fuel and energy, transport, agricultural, cultural, tourist and social complexes.
The overall demand in financial resources for realization of the program and the projects is estimated at 16, 3 billion rubles.
The region's interests are also considered in such federal target programs as 'Modernization of transport system of Russia', 'Ecology and natural resources', Energy effective economy', 'The Russian culture' etc.
FOREIGN ECONOMIC ACTIVITY
International and foreign economic activity of the Astrakhan Region is in a strict compliance with the policy of Russia with account of geopolitical and economic characteristics of the region. The determining circumstances at this are a significant growth of the world community attention for the Caspian region and a necessity of balance of interests of all the parties concerned like the Caspian states, business community interested in prospects of selling the Caspian oil as well as the countries aimed at profits of transportation of oil products and other goods. The legal status of the Caspian Sea is a wide complex of problems of water area ownership, sovereign rights for mineral resources, preservation of bioresources and agreed environment policy.
At the present a number of major international oil companies show their interest in participation in the development of oil and gas fields located in the Astrakhan Region. The most understanding was reached with Italian company ENI-Agip, which cooperates with the region in the field of exploration and production of hydrocarbons in the region and that of implementation of the complex program of creating infrastructure necessary for development of gas and oil fields.
There have been contacts established with Germany in the field of construction, communications, fish production and tourism. German company Knauf - a world leader in production of modern building materials and technologies - invests into the construction of gypsum production on the basis Mineral-Knauf company. The Astrakhan shipyards are building cargo ships for Wessels export-import GmbH.
The region has stable partnership relations with Gilan and Mazandaran provinces of the Islamic Republic of Iran. There are common interests in the development of international transport corridor North-South (India-Iran-Caspian Sea-Astrakhan-regions of the Russian Federation), air communication, trade and economic cooperation.
In the framework of common interests in North-South corridor the trade and economic ties are developed with the Republic of India.
There has been established productive cooperation between the Astrakhan Region and the European Commission of the European Union (EC EU). Since 1999 TACIS project Restructuring of Lower Volga Farms has been implemented. Its main task is an adaptation of local agricultural producers in the Lower Volga region to the free market economy.
In 1999 two projects were realized: TEMPUS / TACIS project “Creation of the Astrakhan regional information and analytical center of a science intensive business on the basis of Astrakhan State Technical university” and BISTRO / TACIS project “Elaboration of a business conception of research center for sturgeon production “BIOS” development”.
The region has long-term friendly ties with the Republic of Kazakhstan. The Astrakhan shipyards build oil exploring and other ships for it. The Republic of Kazakhstan supplies the region with bread grain and hard forage while the region sells its own agricultural products to Kazakhstan.
Cooperation with «Offshore Kazakhstan International Operating Company (OKIOC)» in the field of construction and modernization of sea oil extraction equipment at the Astrakhan shipbuilding plants on request of OKIOC is carried out. The region also cooperates with «Akker Rauma Offshore» (Finland) in the field of increase of the company's activity in the Astrakhan region.
Cooperation with Republic of Belarus provides mutual supplies of agricultural production, equipment and consumer goods. Equipment for gasification and special road machinery is delivered to the region from Byelorussia. Astrakhan enterprises supply mineral raw materials and energy resources. Both sides participate in the development of the transport corridor West-Center-South.
Regional firms and enterprises have foreign economic relations with 65 countries of the world, including production export to 45 countries and production import from 55 countries. Within the foreign trade of the region dominate the so-called countries of «far abroad» (all the countries except CIS and Baltic countries). Their contribution is 65% of the whole regional commodity turnover. The largest trade partners in terms of production procurement from the region among the «far abroad» countries were: Iran, Great Britain, Hungary, Virgin Isles; among the CIS countries Kazakhstan, Ukraine, and Azerbaijan were the most active trading partners.
