|                                                                                                                                                                          |  | REGIONAL CORNER: ASTRAKHAN,  RUSSIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsCustomsCornerPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | August -  September 1998by Michael TrainorThe Astrakhan region of Russia occupies 44,000 square kilometers of territory adjacent to the
northeastern shoreline of the Caspian Sea.
The region's center is the city of Astrakhan, with a population of over 500,000 (half of the
region's total). Maritime activity and related
industries are an important part of the region's economy, while the agricultural and petrochemical
industries are also prominent economic
features.Astrakhan's location at the mouth of the Volga River where it enters the Caspian Sea makes it an
important hub, linking Russia to Central
Asia and the rest of Europe via the Volga River and the Black Sea.  Astrakhan is linked to other
cities of the region via roads and railroads. 
The region's international airport is undergoing refurbishment and modernization, a project which
represents investment and export
opportunities for foreign companies.Industry
Astrakhan's industrial base is dominated by the petroleum and chemical sectors, agriculture, and
shipbuilding.  The
region's electricity production levels are also substantial, accounting for nearly 20 percent of
industrial output for 1997. The
region's output, however, does not entirely meet local heat and electricity requirements. The local
power generation company, 
Astrakhanenergo, has plans to upgrade its capacity in the immediate future.Over the next few years, Astrakhan's oil and gas industry is set to develop most quickly among
the region's sectors.  The region holds
Europe's largest gas condensate deposit.  Oil deposits in the region are also significant.  While
deep, these deposits are attractive for their
location and the relatively well-developed local infrastructure.Astrakhan's chemical industry also has great potential for development.  Astrakhan is the site of a
large fiberglass production facility,
Astrakhanskoye Steklovolokno, capable of producing a range of fiberglass products and fiber
optic cables.  Presently, the enterprise is
seeking investment in the modernization of its production facilities.  An investment of US$10
million is sought, with an estimated break-even
period of three years.The region's agricultural sector is dominated by fishing, particularly of sturgeon.  The Caspian Sea
holds approximately
70 percent of the world's sturgeon stocks, and 40 percent of all sturgeon harvest from the Caspian
is generated by Astrakhan.
Crops, notably melons and grains, are also harvested in the region.  The land of the Volga River
Delta is very fertile, capable
of supporting crops without extensive irrigation.The shipbuilding industry in Astrakhan is very well developed and has received considerable
attention in the past few years.  Production
in recent years has increased (by 67 percent in 1997 over 1996) through several new orders for
tankers and oil platforms, a reflection of the
international competitive advantage of the region's shipbuilding industry.Opportunities
Several high-profile direct investment projects have been announced in the food-processing,
construction, shipbuilding, and textile
industries. The region's government has also adopted measures   including tax cuts, exemptions,
financing, and guarantees   to encourage
foreign economic activity in Astrakhan.  Germany, the United States, France, and Japan are
among Astrakhan's leading trade partners,
providing foodstuffs, metals, industrial equipment, organic chemicals, plastics, and furniture.Contact information for companies highlighted above:Astrakhanenergo
Aleksander I. Svitich, Director
Tel: +7 (8512) 33-39-77
Fax: +7 (8512) 34-80-08Astrakhanskkoye Steklovolokno
Georgiy M. Kapitov, Director
Tel: +7 (8512) 25-26-28, 25-26-18
Fax: +7 (8512) 25-26-27More information on Astrakhan and the surrounding area is available via the internet at:
www.astranet.ruMichael Trainor works with BISNIS in Washington, D.C.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)