Agriculture

Nowadays the Krasnodar Region is one of the leading Russian regions by manufacturing and processing of agricultural products and supplies of foodstuffs to industrial centres of the country. Agricultural lands of the Krasnodar Region amount to 1/10 part of lands of the entire Southern Federal District.

Chernozemic soils with the area of 4,716,000 ha (which is more than 4% of Russian and about 2% of world reserves) prevail on flatlands of the region. They are notable for darker shades, looseness, a good structure, nutritional density, and an ability to produce heavy agricultural crops. Natural environmental conditions provide an opportunity to grow all the crops of the temperate zone and some crops of the subtropical zone on the territory of the region. The region consistently holds one of the leading positions in Russia by growing sugar beet, sunflower seeds, fruits and berries, grapes.

Wine industry

The Krasnodar Region holds leading positions in Russian vine growing and winemaking owing to unique edaphoclimatic features of the territory, where the best grapes in the country are grown. In particular, it holds the first place in Russia by volumes of grape wine production (42% of the total Russian volume) and champagne production (28%).

The region is famous with developed technologies of vine growing and extensive traditions of making natural dry, dessert, sparkling wines and cognacs. The area of grape plantings is about 26,000 ha, or 30% of all the grape plantings in the country.

Vineyard plantations are spread out on the most grateful lands of the coast: the Taman Peninsula with the largest areas of amber landscapes; Anapa, the Sukko valley, Myskhako, Abrau-Durso and many other corners with abundant warmth of sun and convenient soils. To provide the wine industry with high-quality raw materials, new vineyards were set out in the Temryuksky, Krymsky District, Yeysky Districts and in Novorossiysk.

They will enable the growth of a share of Russian high-quality wines that are competitive not in the Russian market only, but in the international one as well. Products by winemakers of the Krasnodar Region are well-known all across Russia.

Wines produced in the region have won prestigious international prizes and award multiple times, and the local companies, such as Abrau-Durso PJSC (Novorossiysk Hero City), Fanagoria Estate Winery (Temryuksky District), Kuban-Vino LLC (Temryuksky District), AF Sauk-Dere LLC (Krymsky District), Divnomorye JSC (Gelendzhik urban resort) and some others are well-known far beyond the country. In 2018 the volume of exported products of Kuban winemakers amounted to more than tree mln litres to 16 countries of the world, including China, Switzerland, Great Britain, Canada, Spain, Brazil, Belgium, Israel, etc. Development of wine tourism plays a significant part in popularization of Kuban winemaking and improvement of the culture of wine consumption.

Resorts and Tourism

The Krasnodar Region can boast a unique combination of recreational resources – excellent climate, warm sea, balneological resources, a variety of natural landscapes. It allowed the region becoming one of the most popular and the largest resort, recreational and tourist centre in Russia. Investments into fixed assets of enterprises of the resort, recreational and tourist complex over the last five years (2013-2017) have amounted to 135.2 bln rubles.

Currently 654 tourist-excursion organizations operate in the territory, including 110 tour operators (48 of which deal with the domestic and inbound tourism). Largescale events held owing to preparations to the 22nd Winter Olympic Games and 11th Winter Paralympic Games ensured the development of Sochi as a world-class mountain climate resort. A new positive image of the Krasnodar Region as one of the Russian ski centres was formed. In 2018 the mountain cluster of Sochi urban was visited by more than 1.8 mln people.

Balneotherapeutic and mud therapeutic services in the Krasnodar Region are provided by 190 resort and recreational organizations where balneological and mud cabinets are available, as well as pump rooms with mineral water.

More than 600 traveller attractions function in the Krasnodar Region: more than 400 of them are all-year-round ones, and 292 tourist and excursion routes are available.

At the moment, hotels of the following international chains are represented in the Krasnodar Region: Accor Group, Azimut Hotels, Carlson Hospitality Worldwide, Golden Tulip, Hilton Worldwide, Hyatt International, Kempinski, Radisson Hotels & Resorts, Swissôtel Hotels & Resorts. Six hotels located in the Krasnodar Region won the Travellers Choice Award 2018 and made it to TOP 25 of the Best Russian Hotels. A revival of traveller attractions – reconstruction, restoration, creation of new tourism industry facilities – are critical for the development of the tourism infrastructure.

The potential of the resort and recreational complex of the territory is realized at the expense of a special economic zone of the tourist and recreational type created in the territory. The following establishments are available in the Krasnodar Region: 186 resort and recreational organizations, 105 recreational compounds and vacation retreats; 117 recreation and rehabilitation organizations for children, 374 leisure centres, 238 hotels and more than 50 apartments; 2,352 hotels and other accommodation means of less than 50 rooms, 4 balnearies.

The industrial complex

The industrial complex of the Krasnodar Region comprises over 7,000 enterprises of various industrial specialization with about 80,000 employees. The industrial output in 2015-2017 grew by more than 10% to amount to 253.2 bln rubles in 2017. The industrial output in 2017 grew by 2.1% in 2016 to amount to 253.2 bln rubles. At year-end 2017 the industrial production index in the territory was 104.3%.

Over 6 years (2012-2017) the Krasnodar Region has been a leader of the SFD in terms of the industrial output. Priority areas of development of the industrial complex in the Krasnodar Region are:

• mechanical engineering for agriculture and food manufacturing;
• production of construction materials;
• chemical industry;
• petrochemical sector;
• consumer goods industry (manufacturing of fibres and fabrics);
• woodworking industry.

About 150 large and medium enterprises operate in mechanical engineering and metalworking industries of the Krasnodar Region. Sectors of the metallurgical production and production of ready-made metal goods in the Krasnodar Region is represented with enterprises that produce steel cast blanks, bar sections, hardware items, various metal structures for civil and industrial construction, roofing materials and other kinds of metal goods. The machine-building complex of the Krasnodar Region is represented with oil and gas, railway, agricultural and food staff machine builders, as well as machine builders for electrotechnical, instrumentation manufacturing, machine-tool, aerospace and defence industries.

The main directions of the information technologies sector are:

• informatization (including the use of information technologies for establishment of public information resources and provision of access to them);
• electro-communication (including the use and conversion of the radio-frequency spectrum) and postal communications;
• mass communications, including electronic ones (particularly, development of the Internet, systems of TV (and digital TV) broadcasting and radio broadcasting, as well as new technologies in these fields.

The IT Park founded in Krasnodar in 2013 develops dynamically. One of its residents is a network of Robokub Studios, a team of which took the 1st place at the 8th All-Russian Robotic Festival ‘RoboFest’ in Moscow (April 12–15, 2016).

IT and innovative infrastructure develop dynamically in the Krasnodar Region. In 2013 the Krasnodar IT Park was founded. On December 25, 2018, Quantorium, the first technopark for children, started working. The venue will comprise 5 laboratories – Energyquantum, Roboquantum, IT Quantum, Aeroquantum and Bioquantum, as well as a High Tech Workshop with milling machines, laser plotters and other machinery. 800 children at the age of 5-18 will study on the basis of the Technopark, and their number will reach 1,440 by 2020.

Development of the Sirius Educational Center in the Sochi urban resort goes on. Nowadays the building of a new school will be constructed to house transformer classrooms, scientific laboratories, project studios, halls for forum holding, a co-working zone, a library and an exhibition complex.

A residential school for gifted children is expected to be constructed in Krasnodar by 2021. In the ‘school for the smart ones’ advanced scientific laboratories will be used, as well as a sports center, a swimming pool and a school boarding house.

The transportation industry

The transportation industry ensures protection of Russian economic interests and interests of foreign policy in the areas of the Black Sea and Mediterranean Sea Economic Cooperation makes a substantial contribution to the increase of the coherence of the country’s territory. Seaports provide direct access through the Sea of Azov and the Black Sea to ways of foreign trade and process more than 35% of foreign trade Russian and transit cargos of Russian seaports, and also serve about one-third of the Russian oil export. The critical railway routes of federal importance oriented towards international seaports and resorts of the Black Sea and the Sea of Azov run through the territory of the region. The pipeline transport is represented with the Tengiz – Novorossiysk International Pipeline and the Russia – Turkey Gas Pipeline (Blue Stream). Air transport of the Krasnodar Region is represented with four airports, two of which are international (Krasnodar, Sochi).

A scientific and educational complex has been formed in the region that harmoniously combines academic and university science.

Educational infrastructure and innovative activities Educational and scientific potential:

• 100 organizations engaged in scientific activities (research centers and institutes, universities, design and experimental organizations, industrial enterprises and the business sector);
• 24 higher education organizations, 33 branches of universities;
• 115 professional educational organizations.