ROSTOV. ( RIA Novosti) - Interview with Sergei Kurdyumov, Rostov regional deputy minister of economy, trade and foreign economic relations, on investment and innovation development in the region.
What is the Rostov Region's place among other parts of Russia for economic development? What can attract investors to the region?
The Rostov Region ranks among the first not only in the Southern Federal District but also nationwide in terms of the success of economic reforms and production of goods and services. Experts forecast a 142.4% gross regional product growth for 2010, as against 2006, with a national average 127.2%.
The region has an outstanding potential in R&D, resource and finances. Its geography contributes to its progress-the Don region lies between the European CIS countries, and the North and South Caucasus.
The Rostov Region leads the Russian south for foreign trade. Its turnover was $4,647 million in 2006. Local companies have partners in more than 110 countries.
What is the Rostov Region doing to increase its investment attractiveness?
The region has started setting up industrial zones, which will maximize highly competitive export-oriented production. We are currently drafting a relevant bill.
The regional administration will take part in the construction of infrastructure for such zones, and subsidize bank loan interest for their establishment and development. These industrial zones will be based at the available facilities, and others will start from scratch.
The new website www.donexport.ru has information about the region's export-oriented companies and promotes their commodities on foreign markets. Russian and international experts take part in industrial managers' seminars and conferences on the opportunities and dangers posed by Russia's WTO membership, and on the technicalities of domestic and foreign investment attraction.
Now that Russia is about to join the World Trade Organization, the Rostov regional economy ministry concentrates on supporting innovation companies, whose high-tech production promises the region a safe niche in the global economy, if we promote such products well.
Could you please tell us about the support for innovation companies in greater detail?
Military industry remains one of the region's basic centers for innovation technologies. Its research and technical potential allows the manufacture of competitive military- and civil-oriented commodities.
The Rostov Region has one of Russia's two federal universities. With its establishment, we can cater to foreign students, and export finished R&D. Such exports are among principal innovation activities in the most developed countries.
The region was the first in Russia to propose large-scale biological fuel production as the fertile Don steppe leads the country in fodder grain output, which is the main raw material for biofuel.
Rostov-based companies are building Russia's first export-oriented bio-ethanol plants. We are planning to launch a pilot project in 2008 to produce biofuel from vegetable oils. Biofuel promises to solve many problems. It expands grain sales markets, makes grain-growing more profitable, and increases fodder output. The business world regards industrial biofuel production as an enormous impetus to agricultural progress.
The Rostov Region will soon host one of its annual economic forums. What are they?
This year's Don Economic Forum, which will take place in Rostov-on-Don on November 15-17, will be called "Small Business: Innovation and Development."
This forum is expected to bring delegates from Austria, France, Germany, Italy, Slovakia and Ukraine. More than 500 participants will present their projects. A vast accompanying exhibition will take up 7,000 square meters.
Overseas companies are welcome to the Don Economic Forum.
Information
The Rostov Region is one of the biggest Russian industrial and farming areas. Its total area, 100,800 sq km, is large enough to hold Belgium, the Netherlands and Denmark together.
The local industry is dominated by machine-building, iron and steel and non-ferrous metal production, and electric engineering. Many companies are unique in Russia or the largest manufacturers of certain goods. The region produces all Russian-made railway engines, 94% of sewing machines, and more than 60% of combine harvesters. It is a nationwide leader in the manufacture of heavy helicopters, maritime navigation equipment, boiler and water heating equipment, and petroleum-producing machinery.
Wheat, maize, rice, millet, buckwheat and other cereals, and soy are principal crops. The region ranks Russia's 4th in grain production, and leads for sunflower, its principal technical crop.
