The future of Kabardino-Balkaria and its president

The head of Kabardino-Balkaria asks federal authorities to help in finding investors

After the formation of the North Caucasus Federal District, the first republic to receive a visit from President Dmitry Medvedev was Kabardino-Balkaria (KBR). This was taken by the expert community as a sign of the good prospects for KBR President Arsen Kanokov remaining in power after his term of office expires in September this year. Shortly before this Kanokov, who has been the head of  Kabardino-Balkaria since 2005, was awarded the Order of the Kremlin "Glory of Motherland" and won the Grand Prix at Russia's annual award for "Person of the Year" sponsored by RBC for the successful opposition to economic crisis.

Nonferrous metal and rare metal ores, oil, gas, mining and chemical raw materials, mineral and fresh water are considered to be the resource and raw material base of KBR. Currently, more than 40 mineral deposits are in exploitation. The republic produces oilfield equipment, power lines, diamond tools, and artificial leather and film materials. There is a high concentration of industry in a few industrial centers - Nalchik, Tyrnyauz, Prochladny, Terek, Baksan and Maisky. Meanwhile it should be noted that in Kabardino-Balkaria live representatives of more than 100 nationalities - 55% are Kabardians, 11,6% are Balkars, more than 25%  are Russian, and also Ukrainians, Ossetians, Tats, Georgians...

Arsen Kanokov is an ethnic Kabardian. He, like the presidential representative to the North Caucasus Federal Region, Alexander Khloponin, came into politics from business. As Anna Politkovskaya wrote, then as the presidents were appointed the authentic market participants, market participant in two senses of this multifaceted words: "First of all, a staunch supporter of free economy and, secondly, once the owner of the Moscow market. The strength of the President Kanokov, of course, is that he exactly knows how to boost the economy and where can income come from.” According to Novaya Gazeta newspaper, Kanokov came into the power from a solid business, living the life of an oligarch or top-manager. Even after becoming president, Kanokov remained on the list of "richest Russians." In the rating of Finance magazine he is, although not in the top positions, still the most wealthy of the presidents of the republics. He is continued to be spoken about as a co-owner of Sindica - a multi-faceted holding company, which includes major construction markets, shopping centers and banks.

At a meeting with Dmitry Medvedev, Kanokov said investment projects are being prepared in Kabardino-Balkaria that should be shown to the ambassador Khloponin in the preparation for a comprehensive program for the North Caucasus. According to the head of the republic, the trouble is that companies that operate today in the territory of the republic have no credit history, and without help, without a state guarantee, without any sort of definitive financial instruments, it is difficult to raise funds for projects. Kanokov proposed to use the experience of Chechnya, which was provided with government guarantees to obtain loans at the large banks - Sberbank, Rosselkhozbank. He said he would ask Khloponin about the federal budget providing a portion of the guarantees and also other instruments - interest rate subsidies or participation of the investment fund.

"We've presented projects to the investment fund, but have not managed to get any funds from them and were unable to obtain them, due to the fact that these funds were directed for the development of mono-cities in the Russian Federation. Although we have Tyrnyauz, and other cities, we've got nothing from the investment fund. We'll also ask Alexander Gennadievich to help us, especially Tyrnyauz," the president of the republic said. In Tyrnyauz worked a tungsten-molybdenum plant. "We were  negotiating with the Japanese company in 2008. A sort of a deal had already been struck, everything was settled, but, due to the fact that the crisis came, they refused to join in the implementation of the restoration of the mill," complained Kanokov, asking Medvedev and Khloponin to help find an investor. “We would like to earn money ourselves. It is unbecoming, especially for the Caucasus, for us it is even to some extent a little insulting that other areas and subjects make money, and we are to some extent subsidized. We would like to implement investment projects to be worthy, to have self-respect," Kanokov said.

Pavel Martynov exclusively for VC