Founded: 1937

Governor: Viktor Alexandrovich Tolokonsky (re-appointed July 2007, term expires December 2008)

Federation Council Representatives: Yury Petrovich Alaferovsky (legislative, term expires December 2005); Anatoly Ivanovich Saltykov (executive, term expires December 2008)

Duma deputies: Nikolay Mikhailovich Kharitonov (Barabinsky district)(KPRF); Anatoly Evgenyevich Lokot (Zaeltsovsky district)(KPRF); Svyatoslav Anatolyevich Nastashevsky (Zavodsky district) (independent); Lyubov Nikitina Shvets (Iskitimsky district)(KPRF)

Population: 2,692,200 (2002 census)

Capital: Novosibirsk (population 1,425,600), 3,191 km from Moscow

Federal district: Siberian

Economic region: West Siberia

Time: Moscow +3, GMT +6, EST +11

Geography: Novosibirsk is located in the western part of Siberia, between Ob and Irtysh rivers. Novosibirsk borders Kazakhstan the Omsk, Tomsk, Kemerovo and Altai regions. Lakes occupy more than 5% of its territory; among them is Chany Lake, one of the largest lakes in the world

Urban population: 75%,  Rural population: 25%

Ethnic make-up: Russians (92%) also a large minority of Germans. 

Economy: Almost half of the land in the region is agricultural.  The primary agricultural products are grain, potatoes, vegetables, flax, milk, eggs, wool, beef, pork, lamb, and poultry. Horse breeding, beekeeping, and fur and fish farming also contribute to the economy. 80 percent of the industrial potential of the oblast is concentrated in Novosibirsk with processing industries providing 95% of the total production volume. The leading industries are machine-building and metal-processing, including electric generators for turbines, metal-cutting and wood-processing machines, textile machines, and polymers. Most of the local electronics, instrument-making, machine-building, aviation and chemical plants are unique and sole producers in their industry. Novosibirsk contains the highest concentration of business activity and banking capital in the region. In the city there are over 30 banks, The Siberian Interbank Currency Exchange, 46 offices of foreign companies. 5 business centers housing international business partnerships connecting Siberia’s ca[ital with 85 countries).

Agribusiness: A regional law on state assistance to agricultural producers, which should come into force early this year in Siberia’s Novosibirsk Region, stipulates the allocation of Rbs1.3 bln ($49.1 mln) from the regional budget to be spent on supporting plant and livestock breeders and acquiring agricultural machinery and equipment. State assistance will be provided in the form of gratis subsidies and subventions.

International Co-operation: A Dutch delegation, led by the Ambassador to Russia, Jan-Paul Dirkse, met with the regional chamber of commerce in March 07, and discussed projects focused on agribusiness, farm equipment and exporting agricultural machinery, though representatives from banking, insurance, auditing and legal, transportation and movement services also accompanied the delegation.

Energy Privatization: In January 2007 electricity monopoly RAO UES, undergoing a series of privatizations in 2007, and the Novosibirsk Region, signed an agreement on social and economic cooperation and the development of regional hydropower generation capacity. RAO UES has guaranteed all social commitments to the employees of the Novosibirsk hydropower during the transfer of capital to the HydroOGK (RAO UES’ agent in Novosibirsk) and will carry on personnel policies aimed at preserving jobs and labor protection, the company’s press service said.

HydroOGK will draft a hydro-generation strategy to compliment the regions ongoing industrial development and will develop a strong corporate citizenship profile.

Banking: In December 2006 Banque Societe Generale Vostok (BSGV), a 100% subsidiary of the French banking group Societe Generale, announced the opening of a Novosibirsk office. BSGV will provide retail and corporate services. The bank now has 32 offices in Russia, and plans to increase the number of its office to 40 annually starting from 2007.

In January Alfa Bank opened its fourth credit and cash office in Barnaul, Altai Republic. The bank had opened a new type of outlets for servicing individuals in Novosibirsk, Omsk and Tomsk. Alfa is seeking to extend its retail network, with 43 credit and cash offices in 23 cities, and 185 offices and branches overall.

Mortgage Services: Alfa Bank opened a mortgage loan centre in Novosibirsk in January 07, bringing the regional presence of the mortgage service to five (Moscow, St Petersburg, Nizhni Novgorod, Novosibirsk & Kazan). Ilya Zibarev, head of the Bank’s mortgage loans department said “In 2007, the Bank intends to open 10 mortgage loan centers in Russian cities with a population of more than 1 mln. Regional real estate markets are growing at a fast pace and have a huge potential, and the local real estate companies are highly professional players.”
Sibacadembank + Uralvneshtorgbank= URSA Bank
 
Sibacadembank (2006 assets listed above) completed its its merger with Uralvneshtorgbank, creating URSA Bank, Russia’ fifth largest regional banking network, covering 44% of Russia’s regions with over 260 offices in 110 cities and town across Russia. The bank’s head office is in Novosibirsk and operates under a joint management board consisting of managers of the merged partners.

Telecomms: Sibirtelecom, the leading fixed communication operator in Siberia, has undertaken its first international loan and entered into a 7-bank syndicated $65 million loan over three years. The deal was organised by Commerzbank Aktiengesellschaft.  The loan will finance the expansion of next-generation networks (NGN), the provision of xDSL access, Internet dial-up, development of wireless radio access networks, expansion of IPTV networks, and telecommunication infrastructure.

Mineral Extraction: Belon Group, a major coal concentrates and steel trader has invested over Rbs3.5 bln ($132.63 mln) in the development and construction of installations over January-September 2006, up 150% on the first nine months in 2005. The bulk of funds (Rbs2.3 bln, or $87.15 mln) went into the construction of the Kostromovskaya mine and the Novobachatsky quarry, the modernisation of the Listvyazhnaya mine and the construction of the Listvyazhnaya enrichment factory. Through increasing production capacity, raising the efficiency and improving safety, the group intends to raise total coal output to 8 mln metric tons per year by 2009.

Crime: Smuggling. Smuggling-related criminal cases in the Siberian Federal District has increased by over 50% to 250 detected cases in 2006. Almost every third case is related to car smuggling, every fourth to smuggling of Chinese consumer goods, and every fifth to drug trafficking. The number of criminal cases related to car smuggling via Belarus has especially grown (involving stolen European cars (Audi, Mercedes, Volkswagen) with changed numbers and fake documents).

City Budget: Novosibirsk’s 2006 direct debt was 24.3% of expenditures, down from 38.2% in 2005 due to a considerable growth of budget revenues. Budget performance is improving, and the 2006 surplus is expected at 12% of current revenues.

Regional Budget: Budgetary revenues in 2006 amounted to Rbs36.084 bln ($1.36 bln), 1% over targeted figures. Out of this sum, taxes account for nearly Rbs27 bln ($1.02 bln), and the rest is made up of uncompensated receipts and non-tax earnings (the latter have exceeded the plan by 30%).

Brewing: Baltika, one of Russia’s largest brewing companies, is to build a $70 million dollar brewery in the Leninsky district of Novosibirsk, where Baltika has a logistics center. Baltika president Anton Artemyev confirmed preparations for the project are nearly compete.

Finance SME Sector: In November last year the Novosibirsk administration established a partnership with Russ-Bank and Rosgosstrakh Sibir, a branch of Russia’s largest national insurance company, to underwrite loans to the small business sector in Novosibirsk. The agreement stipulates the provision of Rosgosstrakh Sibir guarantees to Russ-Bank loans supported by assets of 50% of the loan amount.

Development: In Nov. ‘06 Gazprombank granted RosEuroDevelopment $20.1 mln to complete an A Class business centre, RosEuroPlaza, in Novosibirsk. The project is nearing completeion under Jones Lang LaSalle direction. RosEuroDevelopment is one of Russia’s leaders in commercial realty projects, including the construction of logistics parks, office centers and malls.

Industry: Mars opened a factory producing wet dog and cat food worth Rbs414 mln ($15.46 mln) outside Novosibirsk in 2006 under grants and privileges worth Rbs54 mln ($2.02 mln) for the period 2005-2008. Mars continues to recruit and was (in early 2007) considering locating a confectionary factory in Novosibirsk.

Official website: http://www3.adm.nso.ru

Contact Information
Viktor Alexandrovich Tolokonsky
18 Krasny prospekt
Novosibirsk 630011
Tel.: +7 (3832) 23 08 62
Fax: +7 (3832) 23 57 00
Email: pochta@obladm.nso.ru

Press service contact
Anatoly Vladimirovich Dobrovolsky
18 Krasny prospect
Novosibirsk 630011
Tel.: +7 (3832) 22 58 10; 93 65 03
Email: Dobr@obladm.nso.ru

Representative to the Government of the Russian Federation
35 Myasnitskaya Ulitsa, office 522
Moscow 101000
Tel.: +7 (095) 204 16 23
Fax: +7 (095) 204 13 00
Email: predm@nso.ru

Video of Sukhoi Assembly (YouTube C/O Irkut Corporation) 

Related Articles 

Small Fish in Big Ponds, Comment by Irina Aervitz, Special to Russia Profile, March 26th 2007

Silicon Siberia, Fortune Magazine, March 2007 

United Russia Launches Major Anti-Corruption Drive, Jamestown Foundation Eurasia Daily Monitor, January 5th 2007 

New Measures to Radically Alter Investment Climate, By German Gref, Minister for Economic Development and Trade, Russian Federation, Trendline Russia, Nov 30th 2006 

From shock therapy to consumer cure, Financial Times, Oct 31st 2006

Supply and Demand, By Ian Pryde, Special to Russia Profile, Sept 26th 2006 

Revving Up Russia’s Automotive Industry, By Yevgenia Kvitko, Special to Russia Profile, July 4th 2006 

Local Self-Rule on the Line, By Nikolai Petrov, The Moscow Times, Jan 24th 2006