|                                                                                                                                                             |  | REGIONAL CORNER: ORYOL OBLAST, RUSSIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | April 1998by Maria BreiterCentral Russia's Oryol Oblast is an important agricultural region which also has a well-developed
industrial sector.  The Oryol Oblast is located in the southwestern part of European Russia, about
300 kilometers south of Moscow.  It borders the Kaluga and Tula oblasts to the north, Briansk to
the west, Kursk to the south, and Lipetsk to the east.  Oryol has a population of  911,600.  The
regional capital is the city of Oryol (population 342,600).  Other large towns include Livny
(53,400) and Mtsensk (51,000).Economy
Oryol's economy is mixed, with both agriculture and industry playing important roles.  The oblast
has a favorable climate for agriculture, a good transport network, and a favorable geographical
location.  The defense industry plays a relatively small role in the local economy.  The most
important industrial sectors are power engineering and metalworking, as well as instrument-making, electronics, building materials, light manufacturing, and food processing.  Nineteen local
enterprises produce building materials, primarily in Oryol and Livny.Oryol produces a wide range of crops, including grain and legumes (rye, wheat, buckwheat,
barley, and peas), sugar beets, potatoes, vegetables, meat, milk, and a selection of seeds and
breeding stock. Agricultural production has steadily increased in recent years.The Oryol region possesses various mineral resources, most of which are untapped.  Iron ore
deposits are found near the cities of Oryol and Dmitrovsk.  Deposits of limestone and dolomite
are located throughout the region. The region also has reserves of brown coal and
phosphorites.Infrastructure
The Oryol region possesses a developed transport infrastructure with good road and rail links to
Moscow and the rest of European Russia.  The region has more than 840 kilometers of railway
lines, and more than 3,700 kilometers of paved roads that extend to practically every locality. 
Major railroad stations are located at Oryol, Livny, Mtsensk, Verkhovye, and Luzhki.  Oryol
plans to build a regional airport that meets International Civil Aviation Organization
requirements.All major cities and towns in the region have reliable post, telegraph, and telephone
communication and access to the national communications network of Russia, via the city of
Oryol.  The oblast administration is actively working on improving communications in the region.
Its priorities are as follows:  creation of a modern electronic information network integrated into
Russia's national telecommunication system; technical modernization of the electronic
communication network, including the transition from analog to analog-digital system; and
creation of an electronic mail system.Since Russia began its transformation to a market economy, the Oryol region has developed
strong economic ties with numerous NIS and other foreign countries. The oblast's total foreign
trade in 1995 increased by 7 percent and amounted to $177 million, including $103 million in
trade with non-NIS countries (including the three Baltic republics), and $74 million with other
NIS countries.  Switzerland is the leading recipient of Oryol non-NIS exports (22 percent of the
total), followed by the Netherlands (9.5 percent), the United States (8.6 percent), Finland (7.8
percent), and Germany (5.0 percent).  Leading suppliers of imports to Oryol include Germany
(20.6 percent of total imports), Italy (12.0 percent), Greece (7.2 percent), and France, Thailand,
and Brazil (about 9 percent combined).  Companies from 25 countries, including Coca-Cola,
have investments in the region. For more information, visit BISNIS Online at
www.iep.doc.gov/bisnis/country/9803oryo.htm.Maria Breiter works for the U.S. Commercial Service in Moscow.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)