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Investor Presentaiton

22 Leonid B. Vardomskiy The main imports are pesticides, food products and raw materials for their production, fibers, fabrics and raw non-woven materials, machines and equip- ment (mainly raw materials and spare parts for companies). The volume and structure of imports indicate low investment activity. At the same time, a large share of imported consumer goods comes from Moscow, which is the largest supplier of food and consumer goods in Russia with over 40% market share. The geographic structure of Ryazan's foreign trade has changed substan- tially in the last five years. In 1995, most important countries for exports were Italy, Germany, Turkey, Virgin Islands, the US, Ukraine, Rumania, Hungary, Iran; imported goods came predominantly from Ukraine, Germany, the US, Great Britain, Hungary, Uzbekistan, Slovakia, China, Italy, Kazakhstan. In the subse- quent five years, the list of primary trade partners changed substantially (Table 6), reflecting the shifting nature of export-import connections. Table 6: Main foreign trade partners of Ryazan Oblast in 2000 Foreign Economic Relations of Ryazan Oblast 23 The trade policy of the Tyumen Petroleum Company (TPC) exerts a decisive influence over the geography of foreign trade contacts. It was this policy that caused the sharp growth of exports to the Baltic countries. The number of participants of foreign economic activity in the oblast was 375, or 1.5% of all registered legal subjects in 2000. The largest of these were the TPC, and its subsidiary, the joint-stock com- pany Ryazan PPP. The Ryazan State Equipment Plant and joint-stock companies "Ryazanagrokhim" and "Visko-R" can be noted as other significant participants of foreign economic activity. Therefore, the foreign trade of the oblast is characterized by high concentra- tion in terms of product structure, shares of individual companies, and shares of certain countries in exports and imports. The territorial concentration of foreign trade is even higher. Ryazan accounts for almost 99% of exports and 89% of imports of the oblast. The oblast is one of the last among the regions of the Central Russia in terms of the volume of foreign investment. (Table 7) Country Exports in % Country Imports in % Estonia 52 Germany 19 Table 7: Direct foreign investment in the Ryazan Oblast and the neighboring regions in 1994-1999, in million dollars13 Latvia 10 Kazakhstan 13 Ukraine 7 Italy 10 Regions 1994-1996 1997 1998 1999 Lithuania 6 Belgium 9 Vladimir Oblast 11.9 14.0 1.9 38.5 China 4 Great Britain 8 Lipetsk Oblast 11.5 0.1 6.4 12.2 Romania 4 Ukraine 8 Mordovia 3.1 1.7 4.3 0.6 Finland 3 Norway 5 Moscow Oblast 629.1 66.1 637.1 390.0 Poland 3 Czech 5 Nizhni Novgorod 87.2 4.5 4.0 13.8 Oblast Turkey 2 Sweden 3 Penza Oblast 1.5 0.0 2.3 0.3 total total 91 80 ten primary trade partners ten primary trade partners (Data obtained by Ryazan customs) Nonetheless, between 1995 and 2000, one could emphasize the special status that countries with transitional economies held within the foreign economic ties of the oblast. Their share grew rapidly in 2000, when 76% of exports went to post-Soviet countries, among them 8% to the countries of the CIS and 68% to the Baltic states. They also made up approximately 25% of imports, including 24% from CIS countries. (Source: Gostkomstat RF, Sotsial'no -ekonomicheskoe polozhenie Rossii (State Committee on Statistics of the Russian Federation, Social and Economic Situation of Russia), no. 1, January 2001, information for the years 1996-2000.) 13 Goskomstat RF, Sotsial'no-ekonomicheskoe polozhenie Rossii, janvar-fevral', 1998, 1999, 2000 (State Committee on Statistics of the Russian Federation, Socioeconomic Situation of Rus- sia, January-February, 1998, 1999, 2000). Ryazan Oblast 3.0 1.2 4.1 1.3 Tambov Oblast 11.7 0.0 0.1 3.4 Tula Oblast 17.0 31.3 29.9 5.7 Russian 4515.9 3897.4 3361.0 4260.0 Federation
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