Lower Volga ValleyNews Report- January 2000Submitted by Ekaterina Solovova, BISNIS representative in Samara, RussiaThis report summarizes commercial and business development news in Samara andother Middle & Lower Volga regions for January 2000

# ************************************************************************PENZA OBLAST

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**QualityCompetition Results**

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In a quality competition held among Penza Oblastcompanies and products in late December, Penza Confectionery Factory,Scientific-Research Institute of Physic Measurements, Meat and Poultry Complex“Penzenskiy,” Penza Bakery Plant, and Penza Garment Factory were designatedfirst place winners.  Productsnamed among the Top 100 include gas stoves, electric ovens, two types of Samkobeer, and two yeast factory products.

 

## CenterInform

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**BusinessmenInvited to Participate in USA Business Training**

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Russian businessmen were invited to participate infive-week training programs sponsored by the U.S. Department of State’s Bureauof Educational and Cultural Affairs and Russia’s Ministry of Labor and SocialDevelopment.  The program, now inits fifth year, has brought more than 2500 Russian businessmen to small andmedium sized American companies. According to response figures given by 1000 participants, the averagerevenue increase following participation in the program is 10 percent.  76 percent of the respondents alsoreported expansion in business operations and increases in customer base.

## CenterInform

 

ULYANOVSK OBLAST

 

Euro-Asia Business Center Presentation

 

The Euro-Asia BusinessCenter, an affiliate of the Leipzig Fair in Germany, has scheduled apresentation for February.  At theevent, Ulyanovsk entrepreneurs may receive assistance with their search forbusiness partners and guidance in dealing with German banks, registering withGerman offices and obtaining German residency. 

*VolgaInform*

 

3 Farms Named Among 300 Largest and Most Effective 

 

The poultry farms�Ulyanovskaya� and �Bolshekluchischinskaya� and state farm �Teplichniy� havebeen ranked among the 300 largest and most effective Russian farms. Therankings are based upon company sales revenue, gross profit, and balance incomefor the last three years.

*VolgaInform*

 

 

 

Social and Economic Status, December 1999

 

The December 1999Ulyanovsk Oblast consumer price index average was 100.83 %. The producer priceindex of industrial goods was 107.13%. Excluding social benefits, the livingwage per citizen was $23 and average wage in November 1999 was $43. 

*VolgaInform*

 

SARATOV OBLAST

 

Guild of Small Entrepreneurs Created 

 

The Oblast Chamber ofCommerce created the Guild of Small Entrepreneurs to promote businessdevelopment.  The Guild willorganize seminars on legal issues and work on the development of the Oblast Acton the Handicraft Industry and business law in general.  Members of the Guild were introduced tothe 2000 Project on Small Business Support and Development. 

*VolgaInform*

 

Baby Food Production Facilities Under Construction

 

The Saratov Milk Factoryhas begun constructing new facilities under the “Children of Russia”Presidential Program.  Equipmentfor the 26 production facilities in such regions as Ulyanovsk, Samara andStavropol. will come from England. 

 

*Volgainform*

 

SAMARA OBLAST

 

Region Named Third Wealthiest 

 

Following Moscow andTyumen, the Samara region was named the third wealthiest in Russia according tothe Informational-Analytical Department of the Russian Federation Council ofthe Upper House of Parliament. Samara is noted for its favorable investmentclimate by the world’s leading rating agencies.  With high average salaries and comparatively low averageprices, income per capita exceeds the minimal cost of living by 265 per cent.

*Volgainform*

 

Governor Gives Press Conference

 

In a press conferencebefore 21 representatives from across Russia, Samara governor Konstantin Titovexpressed his hope that the Union of Right Forces will support his presidentialnomination for the March 2000 elections. Titov will participate in the World Economic Forum in Davos from January27th – February 1st.  He is scheduled to speak about “Russia’s Future” and “Russiaat the Crossroad.” 

*VolgaInform*

 

 

 

Small Business Development in 1999

 

The Samara OblastAdministration’s Department on Small Business Support reports that 40 percentof the region’s businesses are small companies located mostly in the cities ofSamara and Togliatty.  The numberof small companies increased in response to the simplification of the taxsystem and accounting and reporting standards.  This increase caused a 14 percent hike in the total volumeof taxes, a difference of almost 2 billion rubles ($74 mil).    

 

*VolgaInform*

ROSTOV OBLAST

 

Vodka Delivered to United States

 

A shipment of 15 thousandbottles of Red Army vodka was delivered to the American company High PointGroup Incorporation, which is the exclusive owner of the Red Army trademark onUS territory.  As the Russianproducer of Red Army has no international subsidiaries, it has no distributionrights.

 

*Russia. Regions.*

***www.regions.ru***

 

ASTRAKHAN REGION

 

Industrial Output Growth Reported

 

According to apreliminary estimate, industrial output growth in the Astrakhan region grew by19 percent while investment in the regional economy grew by about 16 percent.The average salaries of medium and large regional enterprises rose by 51percent and the GDP grew by about 3.5 percent.  Tax revenue exceeded the predictions of the Ministry of Taxby 23 percent.

 

*AK&M*

Oil Extraction

 

South Oil Company (UNACO)obtained a 25-year license to extract oil in two Astrakhan oil fields.  UNACO plans to develop the Verblugiaand Severo- Verblugia oil fields, which are the largest in the Astrakhanregion.  An unidentified American companyhas plans to invest in the company.

*AK&M*