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Ladies and Gentlemen!The quality of life of its members is a defining factor in the develop-ment of any com-munity. And the dynamic of its growth is a mark of the effective-ness of its govern-ment.This periodical is now in its second year of publica-

tion. When leafing through previous issues you, the reader, may well have discovered much that has been new and interesting with regard to Stavropols econom-ic development and the new opportunities for business that are now appearing. Why are we concentrating our energy on developing the economy in particular? Well, because we have set ourselves a challenge: it is only from having a strong economic base that peoples quality of life will improve. It means job creation, rising incomes, and revenue for the state budget, which underpins all our social projects.It is with great pleasure that I can announce that the Krais fundamental socio-economic indicators look good in national terms. Natural wastage of the pop-ulation has reduced by almost half. Unemployment has fallen from 9% to 6.9% by ILO measures. Real in-comes have risen by 7%. The creation of extra places in kindergartens and nurseries has led to a shorten-ing of the waiting list by over 1000, the first drop in many years.Of course, achieving a high quality of life means address-ing the issue of housing. The Krai is one of the leaders in the south in terms of creating new housing, and is 14th nationally by availability of accommodation per head of population. The current level is 21.3m2 per resident, and we hope that the end of the crisis will encourage our builders to offer yet more.

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All this housing has to be supplied with water, gas and heat, which means the construction of additions to the utilities infrastructure. Last year 1bn roubles was allo-cated to such projects from the Krais budget. That means 100km of water and sewage pipelines, over 150km of elec-tricity transmission cables and gas networks in 13 towns and villages.This year the work is continuing. The Krai has launched a three-year programme aimed at improving quality of life for the elderly. Healthcare is to be modernized, with 10bn roubles allocated over the next two years alone. A wave of projects to improve the lives of children are also under way. A lot of our ideas can be classed as social innovation; there is no doubt about it. New times require new methods to improve residents lives. Today there is no getting around the need for economic and social modernization. That we have truly taken on board. This all means that the Krai will continue to step forward, and Stavropolians quality of life is certain to continue its sure and steady rise.

Yours,

Governor of Stavropol Krai

Valery Gaevsky

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STAVROPOL KRAI

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CONTENTS

DISCOVER STAVROPOL KRAIINVESTMENTS IN PEOPLEQUALITY OF LIFE BUY STAVROPOL OWN! DISCOVER OPEN HORIZONS

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EF English First Stavropol

Discover Stavropol KraiSocio-Economic Periodical 7April-May 2011

Published on the initiative of, and with support from, the Government

and Parliament of Stavropol Krai, hamber of Commerce of SK

Chief Editor - Y. V.Yagudaev, Minister of Economic Development, Stavropol Krai

Editorial boardChairman, Editorial Board G. G. Efremov, Vice-Chairmanof the Government of Stavropol Krai

Members, Editorial BoardM.G. Grigorev - the head of department on the state information policy and mass communications of Governmental of Stavropol Krai E.V. Bondarenko - Chairman of the Stavropol Krai Parliamentary Committee for Mass Communication, Information Technology and Means of CommunicationA.D. Baturin - Minister for Natural Resources and Environmental Protection, Stavropol KraiV. N. Mazharov, Minister of Healthcare, Stavropol KraiB. A. Obolonets Chairman of the Stavropol KraiParliamentary Committee on Economic Development, Trade,Investment and PropertyG. F. Afonin Deputy Chairman of the Stavropol KraiParliamentary Committee on Economic Development, Trade,Investment and PropertyV. A. Shapovalov Rector of Stavropol State University,Doctor of Sociology, ProfessorP. V. Akinin Dean of the Faculty of Economics, Stavropol State University; Doctor of Economics, Professor

Design and layoutSergei Bobylev

PhotographyJulia Schupak

TranslationGraham Fraser Teacher,EF English First Stavropol

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DISCOVER STAVROPOL KRAI

Vladimir Putin chaired the second meeting of the State Commission on the Socio-Economic Development of the North Caucasus Federal Okrug (NCFO) in Essentuki in early May. In attendance were his en-voy Alexander Khloponin, ministers Vitaliy Mutko, Elena Skrynnik and Andrei Fomenko, and others. Stavropol Krai was represented by its deputy leader, Yuri Beliy.

Premier Putin held up the NCFO Development Pro-gramme as an essential instrument to resolve the region's problems by stimulating economic activity and modernising the social infrastructure. In his words, the federal authorities intend to focus on the economic aspect, and an important part of this will be the system of state guarantees worth 50bn rou-bles this year. He underlined the importance of making the most of the re-gion's development institutions. The North Caucasus Devel-opment Corporation has approved five of the best projects, of

which two in chemi-cals and resort develop-ment are in Stavropol Krai.Victor Basargin, the Minister of Regional Development, reported that 370 projects, worth 1.3 trillion roubles in all, had been put on a priority shortlist as part of subproject within the Programme. The cre-ation of an industrial park in Nevinnomyssk is among the 30 at the top of the list. Premier Putin gave his assent to the plan, and the Pro-gramme is expected to be on the agenda at a federal government meeting in the middle of summer.

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NCFO Development

Backed By Billions

In Government

Investment

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Stavropol Krai, long identified with health and well-being, is to estab-lish a major international platform for dialogue on improving quality of life. The Kavkazskaya Zdravnitsa forum, now in its eighth year, has traditionally addressed issues within the Russian tourist industry. In April this year, with the theme Investments in People, it turned to the future.

Billions In Government FundingThe Presidential Plenipotentiary Envoy to the North Caucasus Federal Okrug, Alexander Khloponin, reminded the audience at the forum that the federal programme to develop the region included the advancement of the resorts and the development of clean manufacturing. The specific issues of demand and development in

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A CITY OF SUN GENERATING IDEAS FOR LIFE

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the KMV resorts is already under scrutiny at federal level: this year the South of Russia programme will bring 1bn roubles to the area, with 2bn to follow in 2012. With an annual inflow of 800,000 tourists and rising by 15% a year the resorts make a huge contribution to the health of the nation.

Colossal Competitive AdvantageSergei Shpilko, the president of the Russian travel industry association, says, We are world-class in terms of health treatment. Russia's colossal competitive advantage lies squarely in its sanatoria, during a discussion in which the Deputy Plenipotentiary Envoy, Maxim Bystrov, Governor Valeriy Gaevskiy, the head of the science section of the EU's mission to Russia, Olli Pirkanniemi, Andrash Kadar of the Hungarian trade mission and Mikhail Bunchuk, the World Bank's representative in Russia. Governor Gaevskiy asserted that Stavropol is well ahead of Baden-Baden and Karlovy Vary, but is handicapped by Soviet-era service. In his words, that service will soon be brought up to European levels.

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The Partnership culinary arts festival held at the 8th Kavkazskaya Zdravnitsa forum in Kis-lovodsk saw 1000 of Russia and Azerbaijan's top chefs battle in Barista, Sushi Master and Barbeque contests, and guests were treated to dazzling displays at the Art Class exhibition.They cut no corners: for example, Stavropol's Tea Party display took the team 36 hours over

three days and 43kg of chocolate. Another ex-hibit, a 380kg map of Stavropol Krai made of cake, was sliced and served to guests. Kem-erovskaya Oblast's depiction of Siberia was completed on the train to Kislovodsk, and took no less than 5 litres of mastic resin. One of the most popular displays was an enormous table strewn with snow-white chrysanthemums...

made from 250 Chinese cabbages. Nymphs lounged in the centre of the idyllic glade. The expert jury was headed by Victor Borisov-ich Belyaev, the President of the Inter-regional Culinary Association of Russia. After a two-day battle, Stavropol Krai's chefs stood victorious in the National Lunch category and had the Cup and a haul of gold medals.


Guarantees For DevelopmentWith foreign investment now approaching $1bn, Governor Gaevskiy discussed oportunities for cooperation and investment with consular representatives from a range of countries. Our strength is that we do not rest on our laurels agriculture and the resorts but take every opportunity for development, he noted. Development is being boosted with special zones and industrial parks, whose concessions are attracting new, potentially key business to the Krai. Importantly, the Krai keeps its promises. Anton Usachev of OOO Hevel described how his company had held discussions with other regions and found

that they existed only on paper. In his words, the personal positions of the Governor and the Minister of Economic Development were the deciding factor in favour of Stavropol.

A New BoostThe conference's three days saw dozens of round tables and workshops, with attendance from the government, industry, Russian and overseas trade, financial and scientific circles and experts in many fields. Next year it will gain new strength Kavkazskaya Zdravnitsa 2012 will have federal status. Governor Gaevskiy is pleased: Kavkazskaya Zdravnitsa now attracts 3000 guests from 17 regions and 13 overseas delegations. We are doing all we can to show that the KMV is a good place to invest, and our overall aim is to give a new boost to the KMV and the North Caucasus as a whole.

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RUSSIA'S BEST CHEFSJOIN BATTLE

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The $50m project, backed by Sberbank, was announced at the Kavkaskaya Zdravnitsa forum in April. UK firms Knight Frank and Dyer will participate as consultants and architects respec-tively.

Once the hotel has been built the re-gion will stand ready to hold events and receive guests with dignity.We have long needed the ability to host events and ac-commodate guests under one roof. With the support of the Presidential Plenipotentiary Envoy, Alexander Khloponin, we are now ready to open dia-logue with investors, said Lev Travnev, Mayor of Pyatigorsk.The hotel will feature 200 rooms, possibly run by the

Marriott group, on 15,000m, and the exhibition centre will cover 10,000m. The site will have parking, restaurants and shops.I have no doubt that the centre will stand as a centre of gravity and a symbol of the NCFO, said Khloponin. It certainly shows the

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orld ClassThe capital of the NCFO is to have a contemporary hotelwith conference and exhibition halls.

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interest foreign businesses such as MacDonald's and Metro increasingly have in the region. Philip Ball of Dyer said, It is the centre of the Russian spa industry, and has a special atmosphere and cultural and architectural inheritance to be taken into consider-ation. We would not hesitate to work in Pyatigorsk again.

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A parliamentary delegation from Pyatigorsk visited Bulgaria in early May.

The group, led by Alexander Sharabok, met the President Pyrvanov, the Mayor and the Patriarch of Bulgaria, and ex-changed official gifts.

Sharabok and the Mayor held discussions on strengthening ties. Both of our regions are agrarian. We are investigating avenues of cooperation, said Sharabok, And we are working to to revive sum-mer exchanges for children.The Russians visited local landmarks and laid a bouquet at the Eternal Flame in commemoration of the 135th anniversary of the April Uprising against Ottoman rule. We were pleasantly surprised that Bulgarians still spoke Russian. The same blood flows through our veins; we are eternal friends, said Sharabok. Exchanges began in 1972 in schools, light indus-try and culture, and were confirmed when a delegation visited Bulgaria in 2006. Friendship is one of the better legacies of Soviet times, and great way of improving trade, said Sharabok. I believe we should strengthen it regionally.

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Eternal Friends

Panagyurishte

Pyatigorsk

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At the Kavkazskaya Zdravnitsa forum it presented its proposed nano-bio-technology manufacturing as part of a pharma cluster which would bring together research, education and production in the city of Stavropol.

As a specialised sterile solutions maker, Escom offers products for detoxification, dehydration and various blood con-ditions. Production of medications in ampule form began in 2011, which included new cardiovascular and other treatments.Annual growth in production stands at around 40%, making Es-com a heavy hitter in the Russian pharma industry. It is also Eu-rope's #3 maker of infusion solutions, which has enabled it to save the Exchequer over $1bn in imports. The new plans are based on liposomal nano-containers, which deliver medicines direct to the affected cell, improving the medi-cine's effectiveness while lowering the dose and avoiding side-effects. Escom will form the backbone of a cluster focused on de-veloping treatments for hitherto incurable conditions. Rosnano has shown interest in joining the project, and Escom is already a co-investor in the Southern Nanotechnology Centre.

Escom is constantly improving its manufacturing, scientific and human potential, and with its researchh partners is making great strides in substituting expensive imports with cheaper, no less ef-fective and often better Russian equivalents.

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A Foundation For Reshaping

Pharmaceuticals

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OAO Escom is one of the the 20 largest players in the post-Soviet pharma landscape and the North Caucasus' and South's only maker of infusion solutions.

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After days of pressure at the Kavkazkaya Zdravnitsa. Investments In The Person forum, the arrival of Turetskiy's Choir in Kislovodsk was a welcome respite. With a wave of positive energy, astound-ingly beautiful and powerful male voices, an unbelieveably varied repertoire and favourite standards, the Choir wiped the fatigue out of the hall instantaneously, with the crowd singing along. We asked Mikhail Turetskiy, the group's charismatic leader, whether they had felt the same effect.

Mikhail, its great to have you back. You and your group are always welcome guests. You've often been to Stavropol, but do you often perform in the KMV?Wed gladly come more often, but with 200 gigs a year we can't really visit anywhere more than once or twice. People leave thousands of messages on our site asking when we're

coming, even after we've just performed. I am proud of that.

The KMV is a nationally-significant resort. Have you been here on holiday?I don't often go on holiday. I like active holidays,and I like that in the KMV you can, for example, drink the water, breathe the fresh air and go to the mountains. Three for the price of one.

How would you describe the local audience?Great, responsive, very musical. You can judge a concert by the contact with the crowd, and were lucky to have really good inter-action. I can see their eyes and feel the energy. If you don't have that feedback, if the response is lukewarm, you need to step back and ask yourself what you're doing wrong.

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Mikhail Turetskiy:

Relaxing in the KMV

that's what I like

:

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Having toured around Russia, Europe and the West, with which city would you compare Kislovodsk?You can't compare cities with each other I've tried. They're all unique. I guess the only comparison would be with Karlovy Vary, but it's only a very rough comparison. They each have their own people and history. The places Lermontov wrote about are in Kis-lovodsk. Besides, I feel comfortable everywhere.

If quality of life is what keeps people comfortable regardless of loca-tion, is there anything you find makes being on tour more bearable? Do you have any specific demands in your rider?I think a superstar needs talent and recognition first, rather than

a limo. In a lot of Russia there are nether limos nor roads to drive them on, so we're pretty undemanding in that respect. We're less forgiving with sound and light, though, since we perform live.

Which song could you dedicate to the KMV and Stavropol Krai and its residents?The new set 20 Years. 10 Voices includes Sails, which combines Varlamov and a song from the film 12 Chairs. I'd like to dedicate that song to the KMV.

Tell us about your new project, the female group Soprano 10.I wanted to set up a female group capable of tackling any music,

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with no limitation in terms of genre or style. Soprano 10 features Russia's ten best female voices, from the deepest to the highest, and it is unique. Over the past 18 months we have put together a concert called Yavlenie which is currently being very well-re-ceived around Russia.

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There is no improving quality of life without good holiday time. How and where should you restore your strength? For many visitors to the Kavkazskaya Zdravnitsa forum the Adijuh Palace's display was the one that stood out.

In Harmony With NatureThe majestic beauty, swift-flowing river, pristine air and scent of mountain grasses fill everyone who comes here with energy and optimism. The Andijuh Palace has everything tired city-dwellers need: an outlying cottage, a banya and a lake, and the refined lux-ury of the three-storey hotel with air-conditioning, telephones, safes, TVs, refrigerators and minibars in every ensuite room. And the service is 5-star.

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IN THE ARMS OF ADIJUH

The Stars Light UpThe Caucasus and European dishes at the Minara restaurant de-light even the most discerning gourmet, and any formal dinner is not to be forgotten not least because the restaurant often sees performances from major stars. Philipp Kirkorov, Irina Allegrova, Igor Nikolaev and many, many more have played at the Minara. Guests have also been astounded by ballet and circus performers and traditional ethnic choirs. The entertainment programme is truly the hallmark of the hotel.

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www.adijuh-palace.ru [email protected]

8-9624-40-44-04,8 (87873) 222-77

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Health From The MountainsThe Andijuh Palace has a spa centre with a pool, mineral water jacuzzi, Russian and Turkish saunas, massage parlour and gym. It also offers hairdressing, a phytobar and many health treatments. Outdoor pursuits include the 732 steps of the 18th-century Andi-juh's Tower, swimming in the sand-fringed lake and fishing in the river. The hotel also has a colection of rare cars, a helicopter and trained mountain horses.

A Platform For The GamesIt comes as no surprise to learn that the Andijuh Palace was selected as the site of the Caucasus Games. They were opened by the Presidential Plenipotentiary Envoy, and were attended by a host of regional leaders. The participants took home deep impressions, of course, and also a piece of the hospitable Cau-casus soul.

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I N C I D E N T A L L Y The Andijuh Palace will soon have yet more to offer:

an aquapark, a sanatorium-style health

centre, a cable car to Andijuh's tower and

a 200-capacity conference hall are under

construction.

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Plato wrote that an ordered state required that laws be good, ad-hered to and generally unnecessary, and the Krai's deputies do their utmost to ensure that legislation works in the interests of the Krai. The 167 laws adopted over the past 18 months have in-cluded work to improve accessibility to and the quality of educa-tion, health and security.

7.5bn roubles (24.98%) of the 30bn allocated to social security has gone towards supporting the most disadvan-taged, the highest level in the Federation. Orphans have re-ceived the right to a full secondary education and initial pro-fessional training, and parents who adopt are eligible for a 150,000-rouble grant. 164.4m roubles went towards orphans' accommodation in 2010, with the same planned for 2011. Laws have also been enacted to provide invalid pre-school children with education at home, and the allowance paid to their parents has been raised. Deputies have also worked to improve living conditions for rural teachers and war survi-vors. The Governor and Parliament have approved 1.5bn roubles in extra spending on health insurance for the non-working pop-

ulation. Health spending is up 40%, and now stands at 17% of the budget. The Krai was one of the first to implement the n ew federal law on treating patients with socially-significant illnesses. Quality of life is inextricably intertwined with living condi-tions. Last year 1.6bn roubles was spent on major refurbish-ment of 414 apartment blocks in 19 towns not enough, but a step in the right direction.In 2010 incomes rose by 6.9%, 3.1% above the national average and 19th in Russia. The Krai's deputies remain determined to continue their work to improve the lives of their fellow-citi-zens.

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Every Law Is For The

Good Of The Residents

Of The Krai

:

:Vitaliy

Kovalenko

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Elena Berezhnaya:

My ideal

Nevinnomyssk

would have

a beach

Olympic figureskating champion

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Elena Berezhnaya needs no introduction. She came to worldwide fame as a skater and Olympic champion. To Stavropolians she is a parliamen-tary deputy, and a fellow-countrywoman. Although she now lives in Eng-land with her husband Steven Cousins and children Trystan and Sofia Diana, she often returns to her native Nevinnomyssk. During her most recent visit she spoke with Discover Stavropol Krai about her new life and what it would take to make Nevinnomyssk her ideal town.

I'm really comfortable now!Elena, I imagine you have less and less opportunity to return to Stavropol?I wouldn't say so. I'm here at least twice a year. I have huge numbers of relatives, so I come as often as I can. What's most important in your life?My family, of course.When was better, childhood or now?In childhood you don't worry about the big picture, youre open and you enjoy all sorts of tiny things. Then again, now Im in charge of my own destiny and I am raising my own children. Everywhere's good if you're comfortable.And are you comfortable?Very!What would you like your children to grow up to be?First of all, happy and well-mannered. My son will need to be involved in sport he's very energetic. I'd like Sonya to just be a beautiful girl and learn music and art and ride horses for pleasure, for herself.

It's frightening when nothing changesWhat would Nevinnomyssk need so you could live comfortably there?Well... Probably sea, sand and palms! I'm joking, but seriously, if it had a beach I'd look at the whole issue again. (laughs)Have you ever been frightened at how your life has changed?

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If it never changed, that would also be frightening. My life has always been changing, so for me that's just the way it goes. I've learnt to pre-pare in advance, so I'm never as scared as I probably could be. As a self-made woman, do you have any advice for people who want to change something in their lives? First, ask yourself what you want. Try to do that, and everything will fall into place.

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DISCOVER NEWS

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Stavropol Krai is setting up an additional system to

safeguard children's rights. Children's ombudsmen

reporting to the local leadership have taken up their

duties in the cities and counties of the region.

These people should become genuine experts who

can investigate a situation and and take problems

to the local authorities, says Svetlana Adamenko,

who holds responsibility for children's rights under

the Governor of Stavropol Krai. However, they

will need to work closely with the authorities,

the legal and education system and community

organisations.

As a rule the advisers on children's issues are

already employed in the adoption and care system,

but there are people who are entirely independent

representatives of the community. Experts believe

that it is they who will become the most effective

whistleblowers when required.

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The regional IT committee and communications

operator Zelyonaya Tochka have moved to provide

the Russian Invalids' Association in Stavropol with

free access to the internet. A teacher for their

training course, which will lead to a certificate,

is currently being sought.

The library for the blind is also to receive the

internet and adapted programmes, along with

specialised staff. Stavropol is now modifying its

online resources, and a special version for people

with sight defects, along the lines of the President

of Russia's site, will soon be released.

It features a simplified interface and adjustable

fonts, backgrounds and colours.

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A communal effort has added 1500 saplings,

including maple, ash, rowan, birch and linden,

to Stavropol's green lungs. The forests of the

KMV provided many of them, and the city

of Nevinnomyssk added poplars for marshy ground.

The Mamayskiy Forest received 700 trees

to replace those lost to make way for water

pipelines, and the remaining 800 are now

strengthening slopes against erosion.

The event was supported by forest rangers,

schoolchildren, workers from industry and

politicians, including Governor Valeriy Gaevskiy.

According to the Krai's environment ministry,

a second planting in the autumn should see another

3500 saplings added.

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The European School project has arrived in Stavropol Krai.

The launch was attended by the EUs representative in Russia, Fernando Valenzuela, who visited Stavropol for Europe Week last autumn. This time he noted that the relationship be-tween the Krai and the EU had improved, and praised the Krais efforts to become more attractive to investors. We now need to ensure that Western and European business also hear about this initiative, he emphasised. His programme included meetings with Governor Gaevskiy and Andrei Murga of the Chamber of Commerce, interviews and taking part at European School. This project has existed for four years, offering seminars and cul-tural exchange on behalf of the EU, and Stavropol has now joined in. Around 500 students fluent in English came from throughout the North Caucasus Federal Okrug to attend the three-day event. Topics included integration, economics, education and Russia-EU relations. Valenzuela believes that this may lead the two sides to more active cooperation in scientific research.

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, - . - . - - . , . , - .- , , - - . . - , - , . , - -. - - - . - . - - - , - . - , , , - . , - - - .

EUROPE Uncovered

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The 20th Anniversary of the Stavropol Krai Chamber of Commerce and Industry (CCI) was an event of national significance.

The Best Is Yet To ComeGuests at the celebra-tions included Governor Valeriy Gaevskiy, the President of the Federal CCI, Sergei Katyrgin, Krai parliamentary dep-uty Vitaliy Kovalenko, Federal Assembly mem-ber Elena Sagal, other deputies and representa-tives from the consulates of 11 countries as far afield as Iran and Italy. This comes as no sur-prise, though, when the

CCI has gathered so much weight over the past few years. Says Katyrin, Not all the stages of the CCIs development have been successful, but it seems to have found a second wind. The team is young and full of enthusiasm, especially thanks to its President, Andrei Murga. I think the best is still to come.

Protect The Goose That Lays The Golden Eggs!In the past year the CCI has opened a quality consulting cen-tre, IT, information analysis and legal divisions, and innovation

- 20- . -, .

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Business

The Basis

For The Krais

Economic

Development

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and education sections. Andrei Murga says, We exist to unite, inform, defend and advance busi-ness. We hold events every week, and via us companies can find partners from Europe and else-where with ease.Stavropols CCI is responsible for the Krais 5% tax rate for small businesses (Stavropol has one of the 5 lightest tax burdens in the country). The Ministry Economic Development believes that this has actually increased revenues by fostering business and encourag-ing honest returns. I would like to think that the state has realised that it is business that feeds the budget, said Murga. Business should be honoured it is the goose that lays the golden egg.

An Investment MagnetMany Stavropol businesses are successful exporters, and the po-tential is such that the CCI sees supporting them as a central task. With Russias forthcoming acces-sion to the WTO, local companies will have to compete with Western firms in the Russian market. Pre-paring for this is one of the CCIs primary roles.Increasing numbers of potential foreign investors are now visit-

ing the Krai. Recent delegations have included the Black Sea Economic Cooperation Organisation, Austria and South Korea. Last year the CCI opened missions in Switzerland, Germany and Spain, and experience has shown that Westrn businesses are ready to help modernise the North Caucasus and its economic locomotive, Stavropol Krai.

From Intentions To ActionThis year was the first in which the All-Russia Small Business Forum (now in its 11th year) was held in Stavropol rather than Moscow. The event, in Kislovodsk, gathered government, busi-ness and banks to discuss support for innovative projects. The participants praised its effectiveness and left confident that prac-tical results will follow.

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DISCOVER NEWS

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OOO RN-Stavropolneftegaz is set to build a plant

to clean up land polluted by the oil industry in

Neftekumskskiy County. The six-hectare compound

will feature a weighing station and receiving,

storage and treatment points with a total annual

capacity of 10,000 tonnes of polluted soil.

Bio-substances will be used in conjunction with

agricultural methods during the warm months. Once

soil has undergone the 240-day cleansing procedure,

it will be considered benign.

.

Russian Open

Source Summit 2011, .

,

,

IT-,

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, Canonical

(Ubuntu Linux), .

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,

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Stavropol Krai stepped forward as a trailblazer in

using open source software in state management

at the Russian Open Source Summit 2011 in

Moscow, which drew government IT agencies and

open source development experts. Guest of Honour

was Mark Shuttleworth, the founder of Canonical

(Ubuntu Linux) and the world's second space

tourist.

Open source software will be installed on half

the Krai's computers, which reduces costs and

provides time to address technical issues. It will

initially go to the computers of the Krai's IT and

Communications Committee, after which the

education ministry will join the pilot project before a

government-wide rollout.

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Steinway&Sons D-274.

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The cultural life of Stavropol has attained new

heights with the arrival in the Krai's Philharmonic

of a D-274 grand piano from the famed Steinway

& Sons. It has already been assembled, installed

and tuned, and will be officially unveiled in May to

coincide with Stavropol Krai Day.

The procurement was given a hand both literally

and figuratively by the famous pianist Nikolai

Petrov. When in the city on tour last year he

raised the issue of Stavropol's lack of a suitable

instrument, and once the purchase had been

approved he personally evaluated the sound and

helped to choose.

The identity of the pianist who will play at the

Steinway's inauguration has not been revealed,

but there is no doubt that it will be a figure of

importance in the musical world.

The Philharmonic has noted that the piano is its

most expensive instrument, and has expressed the

hope that the world's best pianists will come and

use it to its full potential.

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One in five of Stavropol's population is a student, the highest level in Russia, and the percentage of young people in its population is 12% above the national average. This, along with its pleasant climate, and high employment, make it a modern, creative and dynamic city. 40% of the workforce is employed in small and medium-sized businesses, of which 26.2% are sole traders.

The transition to a market economy saw Stavropol develop a bias towards trade and services, but the foundation for a high-tech economy does exist: Energomera, Stavropol Milk, Stavropol-skaya Biofabrica, Escom, Signal, Allergen and many others are in demand both at home and overseas.

Nevertheless, the city still sees its main challenge as improving competitiveness and raining quality of life. The strategy developed by the city administration and invited academics and experts is focused on expanding the real economy, improving quality of life and creating jobs. At the end of May the city's Socio-Economic Devel-

opment Strategy For 2020 was approved by the city parliament. Underpinning the plan is the idea of making the city one of grow-ing opportunities, deeply modernise the economy and create new windows for growth, and the city administration is pushing forward. Importantly, the main areas for expansion have already been identified ambitious new cluster-type projects. They are all integrated with each other and have clear conceptual, legal and economic foundations and interaction.The Pharmaceft industrial park, which has already been allocated a 62-hectare site, is one of them. It will offer significant tax ad-vantages. The first tranche of construction will create three new businesses, with full implementation of the site to be complete by 2015. More than merely an investment opportunity, Pharma-ceft is a mechanism for development and one element of a cluster

- , . , - -, . - , - 12% . - - 70 40% - . - 19 , 26,2% .

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Stavropol

City of Increasing

Opportunity

and High Quality of Life

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technolology platform which will serve as a base for the further expansion of the city's industrial sector. The next link in the chain is the Nanotechnology Park in Shpa-kovskiy County, right next to the city, selected alongside Mos-cow and Saransk to be one of three such centres by Rosnano's selection committee on 18 May. The project will create a 5000m building, includng administration facilities and laboratories, at

a cost of 1.3bn roubles. The three-hectare site on the outskirts of the city will include an open-access centre and a technology transfer centre. The creation of the nanocentre will facilitate the integration of scientific and technological potential, highly-skilled staff and in-formation resources, a science and education complex and man-ufacturing infrastructure in a new development institute. It will

be the de facto intellectual core of the technological platform. A venture fund is to be established at the same time to provide the financial impetus for new projects.Stavropol is now able to offer the full range: venture finance in-struments, a scientific research base, human resources and ready investment sites. But that is not all to create full synergy, a spe-cialport-type economic zone is to be created, with Stavropol Air-port at its hub. Work to bring an investor on board is in progress.Already active is Stavropol's micro-electronics cluster, which is showing dynamic growth and has close links with South-East Asia and the USA. It is worthy of note that the majority of the businesses and educational establishments and the elements of the planned innovation infrastructure (the nanocentre and its two sub-centres), aswell as the new micro-electronics and phar-maceuticals businesses which are springing up, are either located

or are planned to be located within Stavropol or on its outskirts. Bearing in mind that Stavropol Airport is these business' imme-diate neighbour and is at a major airway intersection, the forth-coming special economic zone will attract new microelectronics and pharmaceuticals firms as residents and lead to an ideal sys-tem of cooperation major manufacturers of finished products.The port zone should also lead to a reduction in airfares, mak-ing air transport more accessible to the people and businesses of Stavropol Krai, and widen the range of destinations. The various sectors of the city's economy will thus complement each other,optimising logistics, reducing the cost of investment and creating a convenient business atmosphere. Another of the projects planned for Stavropol's outskirts is a re-gional industrial park focused on vehicle manufacturing. The city is now aiming to substitue imports and produce exports with a high innovation content and also to create a modern city infra-structure, from which overseas investors should also benefit.From one angle the plans are grandiose, says the head of the city administration, Igor Bestuzhiy, But on the other hand we have the whole mechanism in place. The main thing is to work with pa-tience and determination to make it so. We intend to attract more than 30bn roubles of investment in the years 2012 2015, which will create over 5000 new jobs and will have an exponential effect of the development of the city's economy. It is that which will be the main component of the practical implementation of the idea of a city of growing opportunities.

- . - . - 2012-2015 . - , , . , - , -. - 18 . -: , - . - - , , - , 5 - . 1,3 -. - , - . - . () (). , - , - -. , , , - . - . , , , . : , - , . . - - -. - - . - . , - - . - , , -: ( - , ), , - , - . , - - -

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, -. 2012 2015 . 30 - , - . - .

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Stavropols Zosia Lavnik, head of the Lumiere salon and famous as ZoSia, has been admitted to the prestigious stylists association Haute Coiffure Franaise (HCF).

International DemandsThe criteria are very strict, says Zosia. Above all, a candidate for entry must have his own salon, follow trends in style and technology, continually develop and use products associated with the HCF.The HCFs main task is to compile and evaluate collections that will shake the hairdressing world. This year it has set the theme as Sleeping Beauty, which hairdressers must follow to the tiniest details, from the style and colours of the models hair to the back-ground and symbolic references to the original literature and all in a futuristic style.

Lucky 8Zosia was one of only eight of the original 58 Russian entries to re-ceive permission for professional publication. She recalls, We im-mersed ourselves in Sleeping Beauty, trying to capture the aura that made the image so eternal. The characters we had to bring to life were semi-mythological, yet they had to be both modern and recog-nisable. The hairstyle was an unrepeatable, unreal, fairytale texture.

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Wonders Of the Global

Hairdressing Industry

Created In Stavropol

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Stavropols Sleeping Beauty was feminine, naif and dreamy. The spindle she carried, entwining her beautiful blonde tresses, con-veyed a sense of awe and fear at what was to come. Blood-red blossom on the tree behind her warned of the inevitability of the coming tragedy. ZoSia had prepared several characters, but it was the golden princess who captured the jurys eye. Sleeping Beauty will appear in the Summer edition of Estetica.

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- , - - , - . - - , , - - - . Alexandre de Paris, Christophe Gaillet, Laetitia Guenau, Laurent Tourette - , - .M E A N W H I L E ZoSia recently returned from the HCFs show in Beijing, where it was held outside Paris

for the first time. She says, It was a major event for China. The worlds best showed their work and held masterclasses. Alexandre de Paris, Christophe Gaillet, Laetitia Guenau, Laurent Tourette and others were an inspiration, and showed the way to making their ideas reality.

DISCOVER NEWS

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Stavropol Krais Ministry of Health is to set up a

helpdesk for GPs involved in the modernisation of

healthcare. It will offer timely advice and access to

regulatory documentation. However, Nikolai Paltsev,

the First Deputy Chairman of the Krai Government,

believes that the hard work is still to come. The

modernisation budget (9bn rubles) is under strict

oversight, and the procedure for using approprations

is far from simple.

Stavropol has now started to receive the first

tranche of federal funding.

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Analysis by the Ministry of Education has revealed

that the number of school-leavers taking physics,

chemistry and biology has grown significantly.

Chemistry was up by 28%, with biology and physics

rising by 369 and 344 candidates respectively.

The Ministry has noted that candidates (15,000 this

year) are often choosing to exceed the 2-subject

minimum, with one girl last year sitting eight exams.

This year set no records in this respect, but a trend

has been established.

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The Ministry of Defence is to open a Presidential

Cadet School on the site of the former V.I. Sudets

Flying and Navigation School. Entry is competitive.

Boys currently in Years 4-6 from around Russia

are eligible, with preference given to Stavropol

residents.

The cadets will learn two foreign languages, do

sport and master modern technology, and should

move on to university and then governmental organi-

sations. When it opens on 1 September it will be the

countrys second such school, with one in Orenburg

now its second year.

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The environment has been a major factor in quality of life in Nevinno-myssk ever since work began on its nitrogen fertiliser factory 50 years ago. Today that factory, Nevinnomysskiy Azot, is an example of how to green production and reduce pollution.The company's ecological plan for the years to 2015 includes 34 points, 27 of which are either complete or in progress, and last year 93m roubles was spent on the environment.

Of particular importance for the local community are the three monitoring posts in the local area. Their data is gath-ered by the Krai and disseminated via the media. They are part of three-way agreement between the Krai, Nevinnomyssk and Nev-innomysskiy Azot. Independent experts have carried out research to establish an ecological defence zone around the plant. Their work included a risk assessment on the danger to the health of the local popula-tion and field observations of the air. Repairs and recultivation have been done at the Volchaya Balka waste depot, including the planting of 24,000 saplings. The com-plaints about the smell which were raised by the hamlet of Sot-nikov 2-3 years ago have been fully addressed, and EuroChem has also funded major improvements to the hamlet itself, includ-ing its gasification. Reverse osmosis equipment is being installed in the factory itself. It will replace the current water preparation system in ammonia production and reduce water pollution. Gas analysers are being fitted to the chimneys, the desorption and hydrolysis centre is be-ing rebuilt and the gas emissions cleaning system is being mod-ernised, among other work.

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N E V I N N O M Y S S K I Y A Z O T A R E C I P E F O R Q U A L I T Y O F L I F E

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Ecological safey is a major factor during the construction of new fa-cilities. The new melamine plant will actually reduce the burden on the environment, in spite of its 50,000-tonne annual capacity, because much of the urea it requires will bypass the granulisation stage. In ad-dition, the four filters on the main smokestack are being refurbished. Atmospheric emissions have dropped by 25% over recently years, and 2011 will see major reductions in water pollution thanks to improved equipment and processes. The cost of the project is 25m roubles. The plant's biological cleaning facility also takes in sewage and industrial waste from the town of Nevinnomyssk.It was recently discovered that industry is actually responsible for only 25% of atmospheric pollution in the Krai in fact, the Kavkaz highway is the greatest culprit. Nevertheless, EuroChem strictly ob-serves all regulations, and raises its own standards for its employees and suppliers. One important factor is its programme toimprove working conditions, worth 107m roubles in 2010, including 21m roubles on personal safety equipment. Workers receive compensation for difficult and dangerous work in the form of food, preventative treat-ment and sanatorium stays. Every company and every town have their own quality of life. Thanks to EuroChem's constant work to reduce pollution and raise working and living condition, quality of life is improving for thou-sands of people in Nevinnomyssk.

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OAO YugRosProduct is a well-established and promising company and one of Russias select few producers of sheet glass. Its two factories, in Krasnogvardeyskoe and Novoalexandrovskoe, have an annual capacity of 450 nominal units and are set to grow. It also has its own in-house

glass sand supplier, which gives its complete control over quality. With the motto No Frills, Just Quality, it produces glass for the agricultural, pharmaceutical and building markets which complies with world stan-dards in full. We spoke with its General Director, Sergei Yashkunov.

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GLASS

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Sergei Alexeevich, after a year at the helm, what innovations do you see as being the most urgent?We have a very firm foundation, and have been taking on new em-ployees and increasing both the volume and the range of our produc-tion. We are probably the only company in Russia to produce bottles, jars, medical containers and sheet glass. Managing such a wide range over separate factories and with many different partners is a chal-lenge, and I would like to see us become both closer to our clients and our suppliers. Implementing ISO 9001:2008 is part of that, and we will be undergoing certification in the next six months.

What are some of the better-known overseas companies you have worked with?Weve done a lot with Sklostroy from the Czech Republic and Em-hart from Germany. Emhart recently supplied and installed our quality control equipment. We have bought a lot of equipment, including our kilns, from Horn and Zorg. We have ongoing links with equipment suppliers from around 15 countries. Our equip-ment is 95% foreign, since there is basically no Russian option.

Tell us about sheet glass, which you began producing 18 months ago.The sector is controlled by four major multinationals. There are only two Russian-owned factories ours and we are the only ones of any type in the South. We produce up to 400 tonnes daily at the moment, and we and the Krai and NCFO governments are examining the possibility of building a second kiln. That would take us up to over 1m tonnes.

We had a lot of problems with the engineering provided by Fives Stein of France, but the factory got going in early 2010. We now deliver float glass throughout Russia to the North, for instance St Petersburg, and Omsk. We also export to Ukraine, which inci-dentally does have its own glass manufacturers. The Krasnogvar-deyskoe plant produces 4-8mm thicknesses for windows, furni-ture and glass architecture. Our customers for float glass include companies working on the Sochi Olympics.

YugRosProduct has 20 years of experience, but is it now in need of mod-ernisation?Of course. The kilns and production lines have not just physically but probably also morally decayed. We have begun reconstruction of one of the kilns in Novoalexandrovskoe. We are also working to become more energy-efficient, although we actually produce virtu-ally all our own electricity. We are in step with the times, and we are introducing new technology and ideas. We and the Krai are look-ing at setting up an industrial park in Krasnogvardeyskoe to house secondary industries. We would gain financial concessions, and also the opportunity to work more closely with research organi-sations. Particularly since we have our own innovation projects low-emission glass and the production of solar panels.

Will YugRosProduct be involved in the new pharmaceuticals cluster?Yes. Escom, one of the potential residents, has been one of our main customers for a couple of years. They used to import from Ukraine. We also supply several other pharmaceuticals firms. We are working with Escom to set up an ampoule plant in order to substitute the imported goods currently widely used. We would be contributing to the Governments challenge to develop the do-mestic medical market.

What opportunities do you see for glass in the heightened desire for quality of life?Jars and bottles and windows can only benefit from the trend. For example,oppostion to pollution has meant that agricultural producers are moving away from plastic packaging back to glass. I cannot imagine a more natural and safe product than glass, any more than I can imagine artificial components being used in its manufacture. Glassmaking involves only natural materials. For that reason it willl always be in demand.

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e-mail: [email protected]

INTELLIGENCE WORTH MILLIONS


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More than 100 students from Stavropol and the neighbouring republics have taken part in UMNIK, a national technical innovation competition. They competed in five categories: IT; medicine and pharmacy; chemistry, tech-nology and materials; engineering and elec-tronics; and biotechnology and agriculture.

Faced with an array of talent, the increased judges Stavropols initial quota of up to 20 prizes to 28. Amongst the winners were Alexei Kovalev and Dmitriy Zacharov, who had creat-ed a search engine which can find music based on a fragment sung into a microphone. If sold commercially, the invention would pay off its

development costs within a year, and a seach site is planned. Other inventions included a device to clean car emissions, a method of producing hypoallergenic dairy products and a new way to make aluminium canisters for chemicals. Each winner will receive funding worth 400,000 roubles over 2 years.

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INVESTMENTS IN PEOPLE

While other banks cautiously wait in the wings, Moscow Industrial Bank (MIB) is whole-heartedly committed to the North Caucasus' economic growth. It has spent six years in the region, both as a loan provider and as an investor in its own right. With divisions thoughout the region, including one recently opened in Chechnya,

MIB is has accepted the government's challenge to turbocharge growth, and in doing so is laying the groundwork for solutions to the North Caucasus' social problems.

A Conduit For Cutting-Edge IdeasOne of Russia's 30 largest credit providers, MIB can justify its Industrial title. Its contribution to modernising industry and innovation has including major investments in support

of what its President, Abubakar Arsamakov, calls A process of transformation which requires government and industry to work together. He says, Financial institutions cannot merely be counting houses they need to be conduits for cutting-edge ideas and help develop new industries. The government needs to support this, in particular by subsidising interest rates.MIB is licensed to conduct any type of banking, which gives it access to practically all the government's support instruments. It is a partner in the Krai's small business guaranteed fund, and

is Rosnano's partner in helping promising innovation projects come to fruition. Support of Rosna-

no's Nevinnomyssk subsidiaries has already commenced. The bank's client base is continually growing, and now numbers tens of thousands of businesses. The list includes leaders like Escom, one of Russia's top 20 pharmaceuticals manufacturers,

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which is currently working with MIB and Rosnano to imple-ment a nano-biotechnology project. Murat Mursaev, MIB's Stavropol manager, says We are care-ful to support the introduction of new technology, and not just hand out loans. And when we put our own funds in, we remain involved until the new business is standing on its own feet. As an example, the new Chechnya division aims to help create an oil refinery in the republic.

Author of Breakthrough ProjectsMIB is ready to invest independently, as with its support of Russia's only chemical fibre factory and the launch of per-manent formwork plants in Stavropol Krai and Astrakhan Oblast which both improve speed and quality and greatly reduce price. It hopes to expand its building materials com-

pany into neighbouring republics since, as Mursaev says, Building new housing is essential, but as long as we import building materials it will remain expensive. It also aims to

address the shortage of agricultural storage in the region, the better to raise exports to the Russian north. Abubakar Arsamakov

says, We need root-and-branch transformation in engineer-ing, chemicals, processing and vehicle assembly. It may seem that government and industry are at opposite ends of the spectrum, but this is a joint task. In this MIB and the Krai's Ministry of Economic Development are partners.

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Stavropol Krai has joined the Association of Industri-

al Parks of Russia (AIPR), a non-profit organisation

offering partnership and shared experience. Early

May saw the AIPR and the Krai's Investment and

Innovation Development Management Company sign

an agreement on joint infrastructure development

and investment. Seven parks are extant in the Krai,

with another six due to open. Dozens of companies

have signed up as tenants, and they are committed

to investing at least 39m roubles and creating 7300

jobs in the Krai.

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be converted to electric engines an important step

for the environment. The Krai's government will

hold trials of several dozen Chinese-made vehicles

in Kislovodsk during 2011, and talks are underway

for their eventual adoption by the city's public

transport system. Meanwhile, the Krai and the

Moscow manufacturer Kompomash are discussing

the possibilities for production of electric vehicles

within the Krai and the availability of Kislovodsk as

a proving ground.

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Stavropol Krai is to receive an extra 119m roubles

towards housing for orphans, taking the total

federal contribution to 220m roubles this year and

raising the total spent by the Krai to 400m. This

puts Stavropol in the federal top four in spending on

orphans' accommodation, alongside Amur, Rostov

and Krasnodar. At the beginning of May dozens

of contracts to provide housing had already been

awarded and paid.

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As an experiment, this springs repairs on the Krais roads used cold asphalt, the advantages of which include a longer storage time 12 months than that of hot asphalt. It can be laid in rainy or freezing conditions, requires no prior preparation and, since it needs no heat-ing, reduces emissions.

It also needs no steamroller, or a 60-kg roller at most, since that function is automatically performed by cars using the road.All but the top layer remain semi-elastic, giving the road great resilience to changes in temperature and volume. The seals are waterproof, and the road can be used immediately. As a result, Stavropols repair season has been extended, and surfaces should last 3-5 years longer. If the experiment is suc-cessful, the government may produce cold asphalt within the Krai itself.

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F A C T B O X Cold asphalt is used around the world. The laying process looks unfamiliar: the ready mix is simply poured from a sack and smoothed

with a shovel.

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Charoen Pokphand

Looks At Stavropol


- Charoen Pokphand Foods (- - Charoen Pokphand Group) - . Charoen Pokphand , - - . - - , - . ,

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Leading poultry producer Charoen Pokphand Foods of Thailand is considering setting up production in Stavropol Krai. Having already announced its intention to invest hundreds of billions of dollars in the Russian market, the company has now recognised a promising part-ner in Stavropol.

Opening talks on the form cooperation might take in April, Governor Valeriy Gaevskiy spoke of his interest in Eastern and Western technology and production management methods, and mentioned a lack of serious, thought-through projects.The Governor believes that Stavropol has three specialised agro-industrial parks suited

to Charoen Pokphand's needs. It has been proposed that Agrico Group, a strategic part-ner for the Krai which is beginning corn and sugar beet processing at the Novoalexan-drovsk park, could become a partner for the Thai firm aswell. Talks are continuing.

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Most areas of the Krai's economy grew during the

first quarter of 2010. The total

Ставропольский край №7

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