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05.02.2009

Programme of Support for Exporters in Krasnodar Region for 2010-2012

The Department of External Economic Activity of Krasnodar Region has begun preparing a Programme of Support for exporter businesses and Kuban producers. The Programme is aimed at developing production in the Region, creating new jobs and generating tax revenues.

A programme of state stimulation of exports is the most important mechanism for raising the competitiveness of the economy of the state. The Government of the Russian Federation pays great attention to the question of supporting exports with the aim of combatting the consequences of the global financial crisis. In particular, one of the main tasks today is allocating subsidies to companies exporting local products. In addition, development of regional export is a key condition of economic growth and raising the competitiveness of the region's economy, which is particularly important during the process of Russia joining the World Trade Organisation.

As part of the plan for anti-crisis measures adopted by the Administration of Krasnodar Region a Regional Special Programme to support exports for 2010-2012 is being developed.

The programme is intended to support exporter businesses operating within Krasnodar Region, regardless of the region of their registration. The project document contains a list of conditions and methods for entry of Krasnodar Region businesses into world markets, and also state financial support measures for exports, such as:

- partial reimbursement of expenditure on interest charges on loans taken out by exporter organisations of prepared goods up to 2/3 of the interest rate of the Central Bank of the Russian Federation;

- subsidies for partial reimbursement of expenditure for certification of export products on meeting the requirements of world standards;

- subsidies for partial reimbursement of expenditure in relation to rental agreements for exhibition space in order to participate in exhibition events, forums, presentations and advertising campaigns abroad.

The economic effect of realisation of the Programme will include the following positive changes in the economy of the Region:

- an increase in the proportion of products with high added value in total export volumes;

- stimulation of export activity by potential exporters with competitive products;

- expansion of the geography of cooperation;

- inclusion of new fields in export, reducing dependency on export of raw materials and risks connected with variability of its price situation;

- informing foreign partners of the export potential of Kuban businesses.

In addition, improvement to the image and promotion of the Krasnodar Region brand in conjunction with strengthened export positions of businesses and a favourable investment climate can provide an impetus to extra foreign investments. The specific volume of investments directed to development of high technology production, innovation, and realisation of socially significant projects will grow.

The Department of External Economic Activity of Krasnodar Region is drawing up a register of organisations which could be potential exporters of Kuban products.

It is planned that as early as the first year of realisation of the Programme businesses will begin to receive financial support and consultation services to promote their products on external markets.

An expert council will be set up administer out the Programme under the management of the First Deputy of the Head of the Administration of Krasnodar Region. The curator of the Programme is the Department of External Economic Activity of Krasnodar Region.

Department of External Economic Activity of the Krasnodar Region