The talks with the delegation of Chinese major business representatives in Krasnodar City Hall were held by Evgeny Pervyshov and Chief of the department of investments and development of small and medium businesses of Krasnodar Region Vasily Shvets. Participants discussed the implementation of projects in the area of industrial production, public transport and waste disposal.
"For almost a decade Krasnodar has sister city relations with one of the cities of the People's Republic of China — Harbin. I hope that the current visit will make it possible to bring our relationship with China's leading enterprises to a new level. Among the most advanced joint projects are the establishment of an industrial park in Krasnodar, the development of the Eastern Industrial Zone, as well as various urban infrastructure sectors," said Evgeny Pervyshov.
The Mayor of the city noted that in recent years Krasnodar has retained leadership in most of the socio-economic development indicators among major cities in the south of Russia, and that the rate of commissioning of living and commercial space is comparable to the indicator of Moscow and St. Petersburg. In fact, there are currently more than 1 million people living in our city, and the unemployment rate is one of the lowest in the country.
The Vice President of China CAMC Engineering corporation Wang Yuhang, representative of the China Development Bank Li Yakan, as well as representatives of the major international corporation "SINOMACH Group", Deputy Mayors of Krasnodar and Chiefs of structural units of the city administration took part in the formal reception.
Vasily Shvets noted that Krasnodar Region is a stable and dynamically developing region: the profits received from foreign investment only in 2016 amounted to nearly 1.5 billion dollars.
"Krasnodar is a leader in industrial production at the territory of the region. The city has well developed light, food, paper and metalworking industries. On a recent day, with the participation of the Governor of Krasnodar Region Veniamin Kondratiev, we have presented the first in Russia thermos wagon that can carry perishable goods. The production of such equipment will significantly increase trade between Krasnodar Region and other regions," said Vasily Shvets.
He also noted that investment legislation in Krasnodar Region is one of the most effective in Russia. It guarantees substantial tax incentives as well as subsidies for large investors.
During the meeting, possible cooperation projects were discussed. In the first place, participation in the development of the industrial park in the Eastern Industrial Zone of Krasnodar on the territory of 330 hectares, the first stage of which is being prepared for opening.
Also they discussed the possibility of cooperation in the sphere of transport. Evgeny Pervyshov stressed that Krasnodar was very interested in the development and modernization of the urban public transport network. First and foremost, the capital of Kuban should develop the most popular and effective public transport — a tram that carries about 80 million passengers annually.
In the near term, it is necessary to build in Krasnodar about 33 km of tram lines to include new residential micro-districts in the service area of tram routes, as well as to reconstruct some 24 km of old lines. In addition, it is required to upgrade most of the rolling stock of trams, trolleybuses and buses, and to develop the contact trolleybus network. The preliminary need for investments in the comprehensive modernization of public transport is 250 million US dollars. The city Mayor noted that together with the administration of Krasnodar Region they were exploring various options to involve both public and private funds, including foreign investments, in the development of public transport of Krasnodar.
On behalf of «SINOMACH Group» corporation Wang Yuhang expressed interest in developing the projects in Krasnodar, noted the possibility of cooperation on this issue.
"I believe that in the near future we should set up a working group to discuss and expedite further work. Our company already has experience in constructing similar projects," said Wang Yuhang.
Wang Yuhang also described the corporation's involvement in the establishment of the Sino-Belarusian industrial park in Minsk. In his view, an information exchange between the SINOMACH Group and the Corporation of Krasnodar Region Development should be organized to work on a similar project in Krasnodar.
One promising project for Chinese companies, which could be a successful investment start and demonstration of the opportunities for cooperation between Krasnodar and China, Wang Yuhang called the construction of a modern rubbish recycling plant.
Evgeny Pervyshov noted that in Russia 2017 was declared a year of ecology and, in this context, learning the experiences in waste collection and disposal would be relevant and useful for Krasnodar.
China National Machinery Industry Corporation (SINOMACH Group) was established in January 1997. It is an important state-owned backbone enterprise and is in the list of 500 largest enterprises in the world. SINOMACH Group numbers 110 000 employees, more than 40 subsidiaries and over 180 foreign service agencies. In 2015 the turnover of SINOMACH was over 35 billion dollars, and the profit was more than 8 billion dollars. Its total trade investment reached 6 billion dollars.