Investor Presentaiton
10 Leonid B. Vardomskiy
The fuel and energy complex, which represents over one-third of the indus-
trial production of the oblast, is also closely connected to the Moscow region. The
biggest enterprises are the Ryazan Petroleum Processing Plant (PPP) with a
capacity of 16 million tons of processed oil a year, which belongs to the Tyumen
Petroleum Company (TPC), and the Ryazan Heat Power plant, which belongs to
the "EES Russia" RAO joint-stock company that was formed to meet the needs of
the capital region. Petroleum is delivered to Ryazan via the Almetevsk
(Tatarstan)-Nizhnii Novgorod-Ryazan pipeline, and processed petroleum prod-
ucts from PPP are delivered to their destinations through the Ryazan-Moscow
and Ryazan-Tula-Orel product pipelines.
The structure of the industrial production in 1999 was as follows:1
Power industry:
Machine-building:
- Food industry:
26.1%
22.4%
13.5%
-
Fuel industry:
10.4%
-
Production of construction materials:
9.1%
Consumer industry:
4.7%
- Non-ferrous metallurgy:
3.9%
Chemical and petroleum-chemical industry:
2.6%
Woodworking industry:
1.2%
Other industries:
3.2%
Foreign Economic Relations of Ryazan Oblast 11
The oblast serves important transit functions; the main transportation routes
connecting the capital region with the Volga area and the North Caucasus, pass
through it. Four gas trunk-pipelines leading from Central Asia to the Volga and
the Center pass through the oblast. The largest deposit of natural gas in Europe,
which belongs to the joint-stock company "Gasprom," is located near Kasimov.
With a per capita gross regional product of 14'200 rubles in 1998, the oblast
was at the same level with the Moscow and the Tula oblasts (14'300 rubles),
behind Lipetsk (21'900 rubles) and Nizhnii Novgorod oblasts (18'700 rubles), but
ahead of the Republic of Mordovia (12'500 rubles), Vladimir (12'300 rubles), Tam-
bov (12'000 rubles) and Penza (7'100 rubles) oblasts.² A decrease in population as
well as in the development and profitability of the economy in Ryazan Oblast can
be observed to move from the west to the east and southeast.
Table 1:
Some indicators of the social situation of Ryazan Oblast and the neighboring
regions in 19983
Per capita income Unemployment
in thousands
level (%)
Regions
of rubles4
Per capita volume of Population with
retail trade and
services in
income below
the minimum
thousands of rubles
wage (%)
Vladimir Oblast
6.5
5.3
6.1
28.5
Lipetsk Oblast
9.7
1.1
9.5
20.4
Mordovia
6.2
5.1
5.4
46.9
Moscow Oblast
6.6
2.9
5.1
27.1
Nizhnii Novgo-
9.7
2.6
7.9
20.5
rod Oblast
Penza Oblast
1.9
5.8
3.8
51.0
Ryazan Oblast
7.1
2.2
5.8
36.2
Tambov Oblast
7.3
4.9
8.7
27.4
Tula Oblast
9.0
1.9
23
7.3
23.2
Russian Fed.
average
7.7
2.9
9.2
22
29.2
Over 70% of the oblast's industrial production is concentrated in Ryazan. All
eleven institutions of higher education and approximately 40 research institutes
and design organizations are also concentrated in the main city of the oblast. The
main city of the oblast is home to 41.3% (530'000) of the population. Because of
Ryazan city, the oblast is characterized by a high level of urbanization - 69% of
the population live in cities. Eleven other cities belong to the category of small
cities. The second-largest city, Kasimov, has less than 37'000 residents and is 14
times smaller than Ryazan.
Therefore, in terms of the economic structure, the oblast consists of two
parts: Ryazan city, the regional conglomerate of industry, center of education, cul-
ture and administration on the one hand, and a primarily agrarian periphery on
the other.
2 "Kompleksnaia otsenka sotsial'no-ekonomicheskogo razvitiia regionov RF v 1998/2002
godakh" (Comprehensive Estimate of Socioeconomic Development of the Regions of the Russ-
ian Federation in 1998/2002). Ekonomika i zhizn', no. 19, May 2000, p. 31.
1 Riazanskaia oblast' v 1999g. (The Ryazan Oblast in 1999). Ryazan: Riazanskii oblastnoi komitet
gosudarstvennoi statistiki, 2000, p. 142.
3 Ibid.
4
Calculated on the basis of total financial balance.View entire presentation