Priorities of regional economic policy in Krasnodar Territory

The territory authorities believe that it is possible to improve the situation in the region and in the country in general only by strengthening of the role of the state in the regulation of economic relations. That was in particular expressed in the address of February 11, 1997 on social and economic situation and programme of top-priority actions of the administration of Krasnodar Territory. The task is set in the document: to achieve free transfer to state authorities of majority interest in a number of large joint-stock companies thus creating state joint-stock companies.

It is planned to ensure financing from the centralised sources of the Federal target programme of development of Krasnodar Territory for 1996 ? 2000 approved by the Russian government. The programme defines main directions of structural rearrangement of the economy of the region performed in two stages. However today it is apparent that the Federal programme is not performed. In this connection the territory government develops a number of programmes implemented for the funds of the regional budget.

At the end of 1998 the government of Krasnodar Territory has approved several priority medium-term programmes:

•   Development programme of agricultural engineering in Krasnodar Territory for the period of 1999 ? 2001. It envisages major financial support from the budget of the region for development and test of new models of equipment at the plant "Krasnodarrismash";

• Programme of growth of volumes of oil and gas production. It envisages the maximal use of low-output fields. Part of the exhausted fields currently owned by OAO "Rosneft-Krasnodarneftegaz" should be transferred to the territory ownership. The produced oil will be processed at OAO "Neftebitum";

•  Concept of development of ports of Krasnodar Territory for the period till 2020. It supports development of existing ports, specially Novorossisk and Tuapse and construction of new ports in Sochi, Gelendzhik and on Tasmanian Peninsula (near the city of Temriuk). The capacity of the ports in the territory should be increased from 77 (1997) to 155 million tons of goods (2020). Within 20 years (the period of concept plan) the ports of the territory will be clearly specialised: Novorossisk and Tuapse ? oil transportation; Sochi and Gelendzhik ? passenger transportation; Yeysk and port "Caucasus" (on the Azov Sea) ? petroleum transportation; Temriuk ? terminals for export of liquefied petroleum gas (first port in the Russian Federation).

The government and administration of the territory also plan to support agriculture as the basis of economy of the territory and export-oriented companies.