International investment Forum "Sochi-2007"

The International Investment Forum, which had been holding in Sochi from September 20 to 23, 2007, became the major investment forum of the country.

55 Russian regions presented their offers to Russian and foreign business.

As compared with 2006 the number of the forum participants and the country-participants has grown almost 2.5 times – from 4 to 9 thousand people and from 14 to 36 countries.

There are 5 official delegations that arrived to Sochi, including 18 ambassadors, 38 heads of the constituent territories of RF, about 50 chiefs of the largest Russian and foreign companies.

Two plenary meetings, ten conferences, 19 presentations and 25 round table talks were taken place. The meeting of Russian president Mr. Vladimir Putin with representatives of Russian and foreign business became the main business event at the forum.

Stands of 39 Russian regions and 200 companies were placed at 40000 square meters – such was the total stand space of the forum.

169 investment treaties to the sum of 560 billion rubles (22 billion dollars) were signed within the bounds of the Forum.

The President of Russia Mr. Vladimir Putin took part in the operation of the second day of the Forum "Sochi-2007". As last year the head of the state has looked round the exhibition gallery. It was Krasnodar region who firstly showed its investment prospects to the president as the host. The exhibition of Kuban becomes not only the largest by the area, but the most large-scale by the volume of offered investments. According to the governor Mr. Alexander Tkachev this year they staked on the most perspective investment projects. They are: the development of the special economic areas of the resort-and-recreation type, the reconstruction of Krasnodar and certain the realization of the Olympic project "Sochi-2014".

In all Krasnodar Region presented 1200 investment projects to the total sum of 12 billion euro at the International Investment Forum "Sochi-2007".

The region’s exposition took more than 3.5 thousand square meters and included 65 models of the most scaled projects, which are offered to be realized at the region’s territory. It became the largest and the most popular among regional expositions of the Forum – the pavilion of Krasnodar region was visited by about 9 thousand participants of "Sochi-2007".

State investments in the Olympic program and the creation of tourist-recreation and play zones at the territory of Krasnodar region caused the real boom of private investments.

This year at the investment fair Krasnodar region has signed 132 agreements almost to 17 billion dollars (455 billion rubles).

Thus, as compared with the Forum-2006 the investment yield (the sum of agreements) has grown tree times (455 against 140 billion rubles).

Besides these investment contracts a protocol on the intentions of building of landscape-recreation complex "Federation Island" in the Sochi water area has also been signed with "M-Industria" company (Russia, St. Petersburg) and Allied Business Consultants company (UAE, Abu Dhabi). The volume of investments in this unique by scales and difficulty project can make 6 billion euro till 2013.

Speaking about the state investments it is necessary to notice that Krasnodar region concluded an agreement with "Vnesheconombank" and the Ministry of Transportation of Russia "About the realization of the investment projects upon the creation of objects of transport infrastructure at the territory of Krasnodar region on the base of private-public partnership, including the project of building of the road "Krasnodar-Abinsk-Kabardinka" with value of 113 billion rubles.

Private-public partnership, investments in infrastructure and the Olympic Games 2014 were the main subject of discussions at the Forum. And the list of the agreements, signed by Krasnodar region during tree days of "Sochi-2007" working, indicate that private investors show the most interest to the Olympic building in Sochi and to the reconstruction of Krasnodar, and also to the resort, transport, industrial and agricultural complex of the most southern region of Russia.

After these agreements will be carried out in the nearest 2-3 years, tens of supermodern hotels, tourist, trade and living complexes, large plants, port and logistic terminals will appear in the region. This investment flow will be delivered almost in every city and district of the region.

"Base element" confirmed its intention to invest in the projects and social-economic programs at the territory of Krasnodar region more than 1 billion euro.

The largest investment projects

In the short run developers with the world brands will enter the territory of the region. The Administration of Krasnodar region has signed an agreement with "International Hotel License company С.А.Р.Л." (100 subsidiary of "Marriot ", USA, Washington) about the building of a hotel "Courtyard Krasnodar MARRIOT" in Krasnodar and with "Kempinski" company (Switzerland, Geneva) about the building of four hotels "Kempinski" in Sochi and golf club at Black Sea coast of Krasnodar region. "IKEA" company has also announced its intentions to build its shopping centers in Sochi and Krasnodar.

Russian companies also don’t stand aside of the big Olympic building. "Petra – Sochi, Ltd." will spend 124 million euro to build a multifunctional sport complex in Adler region of Sochi, and "Kurortinvest" company - 131 million euro to build a multifunctional complex in Khosta region of Sochi.

Not only Sochi, but also all Black Sea coast and the capital of Kuban ring the bell with investors.

The agreements with the following companies were signed: with "Balticpromgroup" company (Russia, St. Petersburg) - about the building of a resort-recreation complex "Golden mile " at the Anapa territory (2.1 billion euro), with "Von During Management AG" company (Switzerland, Lucerne) - about the building of 6 hypermarkets of building materials at the territory of Krasnodar region (60 million euro) and a community "Karasun" in Krasnodar (60 million euro), with "Attleborough Holding Limited" company (Cyprus, Nicosia) - about the creation of a coastal entertaining SPA-hotel "Chernomorec Park" in Sochi (70 million euro), with "Linstou" company (Norway) - about the building of a hotel and office center in Krasnodar (115 million euro), with "Pisec" company (Austria, Vienna) - about the building of a resort complex " Austrian village" at the territory of Gelendzhik.

"Krokus-international" company will build in Krasnodar a multifunctional trade-office center at the cost of more than 500 million euro. "Demirsu insaat turizm A.S" company (Turkey) is ready to invest more than 100 million euro in the building of a resort complex in Tuapse region and five-star hotel in Krasnodar. "BV Development" will invest more than 70 million euro in the building of a multifunctional trade-business complex in Krasnodar. "Tuller Capital" company (Great Britain-Russia) is ready to invest 85 million euro in the development of a hotel network, refuelling stations and storage rooms and the building of a sports and fitness complex at the region’s territory.

A serious interest was shown by investors to the transport complex of the region. "Raven Russia" company (Grait Britain, London) together with Russian group of companies "Avalon" and the firm "Logistic Kuban" is ready to invest 43 million euro in the building of an intermodal logistic complex in Krasnodar. State corporation "Vnesheconombank" together with the oil company "Northern Lights" and "Azov transport company" will invest more than 70 million euro in the building of northeast cargo region of the port Caucasus in Temruk region, and "Eurasia logistic" company – about 50 million euro in the building of a manufacturing-logistic complex in Krasnodar.

In the short run we will get serious financial investments in the industrial complex of the region.

Several agreements are signed: with the Industrial union of Donets Basin - about the building of plants upon the production of sanitation goods and paper converting (257 million euro), with "ATIS" company – about the building of an ore-dressing and processing enterprise, with "Region-Invest" company - about the building of plants upon the production of float-glass and empties.

No less attention was given to the food industry. Agreements with investors about the building of pectic, sugar and starch plants (more than 325 million euro of investments) are achieved. Besides an arrangement about the building of a mega-complex upon pigs nurture with capacity of 100 thousand heads (34 million euro) is achieved with "Genesus Genetics" company (Canada).

The vice-premier of the Russian government Mr. Alexander Zhukov named at the final press conference the reasons, which have made the success of the Forum "Sochi-2007". It is the improvement of the total investment climate in our country. Last years the foreign capital inflow is going at an ever-increasing rate. Besides, Russian regions and domestic businessmen have studied to present their potential and their projects correctly and skillfully. Undoubtedly, namely the Olympic perspectives of Sochi have attracted such a great number of participants. Investment project "Sochi-2014" is grandiose upon its scales. It will bring undeniable benefit not only to the resort city itself and Kuban, but also will serve as a pilot project for other Russian regions.