Kuban – MIPIM the history of success
MIPIM hosted our delegation for the first time six years ago.
Year 2001: the first step
After successfully distinguishing southern Cannes from the Cannes in the north of France, we arrive at the Azure Coast not as idle tourists, but with a business visit. Kuban is ready for cooperation: the best in Russia legislative base in the sphere of investments was elaborated in Krasnodar Region. In 2000 the Legislative Assembly adopted Law “On State Stimulation of Investment Activity in Krasnodar Region”. It protects business from political and economic risks.
Acquaintance of Kuban delegation with MIPIM was recognized promising and is to be continued.
Year 2002: the second step
We enter the international property market with three large projects and certain economic luggage. According to the customs statistics data, the foreign trade turnover of Krasnodar Region with France last year totaled USD 56.6 million, including export operations worth of USD 25.6 million, import operations – USD 30.8 million.
At the exhibition Krasnodar Region represents projects of development of Krasnaya Polyana mountain skiing resort, the resort area of Gelendzhik city and Sochi airport. The first success: Gelendzhik attracted a large South-African firm, specialized in similar projects, for the development of 100-km resort area.
Year 2003: the third step
Krasnodar Region brings to Cannes tens of projects including three from the capital of the region alone.
By that moment Kuban has cooperated with 72 countries of the world, 37 branches of foreign legal entities have been opened in the region. Business cooperation with French partners is actively developing. “Bonduelle” plans to begin the construction of a plant for canned corn and green pea construction of 60,000 tons annual capacity. Total amount of investment on the project is to total EURO 30 million. In total 14 commercial organizations with foreign investment from France have been registered on the territory of the region. The main kinds of their activity – design and construction of pipelines in the offshore zone and onshore, construction and assembly of gas industry equipment, manufacture and trade of foodstuffs, purchase and sale of property.
Based on results of the first six months of 2003 foreign trade turnover of Krasnodar Region with France exceeded USD 90 million, including export operations worth of more than USD 40 million, and import operations worth of USD 50 million. Its specific share in total commodities exchange of Krasnodar Region constituted 5.6%.
For western investors KUban has long ago seized to be terra incognita. Cooperation with the administration of Krasnodar Region is highly estimated by authoritative international organization European Business Club in the Russian Federation. Clair Couten, the club director for the work with committees, assures our potential partners:
- In all our undertakings we always enjoy the support on the part of the regional administration. Krasnodar Region is the only region in Russia, in which we are planning to open the representative office of the European Business Club. The investors can rely on our support and assistance.
Year 2004: the fourth step
The exposition of Krasnodar Region is one of the largest among regions of Russia. Our delegation includes 59 builders and property specialists from 13 municipal formations.
Guests and participants of the exhibition have been represented town-planning concepts and large infrastructure projects of developing coastal territories of Gelendzhik, Novorossiysk, Sochi and Krasnodar, in total about 200 various projects. Investors, architects and developers from UAE, Great Britain, Germany, Bahrain and Austria show interest to them. During 4 days representatives of 400 companies from 36 countries of the world visited us.
Year 2005: the fifth step
Russia in Cannes was represented by Moscow, Saint-Petersburg and Kuban. Our exposition is called “Krasnodar Region – the region of Two Seas” and includes more than 150 investment projects, mainly, in the sphere of tourism. The stand is arranged in the hall, situated on the very coast of the Azure Bay, and neighbors Paris stands.
- We must be closer to Europe, since there is much in common between the South of France and the South of Russia, - Governor Alexander Tkachev comments on this fact with a restrained smile. – And to be serious, we must develop our resort idea in such a way so that to compete with the world European resorts.
We have more than one hundred guests on the first day of the exhibition. Representatives of British consulting firms, German developers, and Italian entrepreneurs keep coming. The French are not in a hurry, but Consul General of Russia in Marcel Oleg Chudinov affirms:
- Krasnodar Region – is a very rapidly developing region. It has great future. And if one French firm enters the region, then the goodwill about Kuban will go further like a chain reaction. Be sure – in some time other investors will come too.
In several hours literally an agreement was signed between the regional administration and Sekab group of companies about the construction of canned vegetables plant construction. The project is worth of EURO 35 million. After Bonduelle it is the second large investor, which enters Kuban:
- We selected Krasnodar Region for the implementation of our project, because business atmosphere here meets the requirements, made by the group of companies, company Director General Paul Geraud states.
- We hope that the second phase will follow after the launch of the first one, - our governor says, signing the agreement.
- It is not impossible, - Mr. Geraud responds. – The appetite comes with eating. It seems people say like this in Russia?
The investors’ appetite to Kuban is growing. On the same day agreements with SALANS international law firm and Messe Berlin, represented by subsidiary company “Capital Services GmbH”, were signed. The agreement stipulates for joint activity on the provision of building an international exhibition center with the corresponding infrastructure facilities in Krasnodar.
The administration of Anapa town signed an investment agreement with group of companies “Energogarant Capital-story” about joint implementation of investment project “Residential recreational district “Vysokiy Bereg”. The supposed amount of investments is about EURO 5 million. The administration of Sochi city signed a letter of intent with French architectural academy, engaged in the development of sea resorts. A permanent working group for the organization of a network of yacht-parking places is created under the aegis of the Embassy of France. The administration of Tuapse district conducts negotiations with foreign investors about signing five agreements.
Year 2006: the sixth step
Krasnodar Region becomes the sensation of MIPIM-2006. For the first time our region received the status of a partner of the exhibition organizers and represented to investors more than 100 projects in the sphere of property and tourism worth of EURO 4.7 billion.
The presentation of one of the most important investment projects of Russia in the sphere of tourism “The creation of sanatorium-resort mountain-climatic complex “Krasnaya Polyana” attracts great attention. This project is an important element of tourist potential development program of the Black Sea coast of Krasnodar Region. Sochi resort-city was announced a candidate for conducting the Winter Olympic Games in 2014, and the Government of Russia adopted the concept of federal target program of its development.
From the Azure coast Kuban delegation brings six agreements worth of EURO 650 million. The administration of Anapa agreed with AVS Group about implementation of investment projects “Korolevskie Duny” at Blagoveschenskaya Spit and “Vysokiy Bereg”. Luxcontrol is to take part in reconstruction of Tuapse beach area, and National Association of Real Estate Investment Trusts – in reconstruction of Tuapse central part and construction of a public and business center. Gelendzhik will receive investments for the construction of a golf-club and a sports center. The administration of Krasnodar signed an agreement with Akkor about investment in hotel facilities of the city and with Salans about the cooperation in the development of investment activity.
By attracting foreign investment Krasnodar Region is one of three leaders among territorial entities of the Russian Federation. International rating agency “Standard & Poor’s’” in 2006 raised the investment rating of Krasnodar Region to the level “BB-developing”. Foreign experts included Krasnodar Region to the top ten of investment-attractive regions of Russia.
ÌIPIM-2007: a new step
From the trip to Cannes Krasnodar Region brought 28 agreements worth of EURO 1.5 billion. The exposition of the region at the exhibition became one of the most large-scale (more than 500 square meters), visited and rich. MIPIM participants were represented the whole investment supermarket of Kuban – about one thousand five hundred projects worth of EURO 47 billion.
