18 months ago the Ministry for the North Caucasus Affairs was established in the Russian government. It is headed by the ex-governor of Krasnoyarsk Territory, Lev Kuznetsov. The Ministry deals with socio-economic development of the North Caucasus Federal District and coordinates the work on implementation of state federal target programs in the District. The goal of the Ministry is implementation of the potential in development of industrial and agricultural production, including import substitution, as well as formation of a competitive tourism sphere.
Yesterday Lev Kuznetsov spoke in the Federation Council and said: “It is important for us today that investments come not from abroad, although this is a very important resource, but primarily we need the Russian investor to turn his face and believe that in the Caucasus it is possible to carry out not only state, but most importantly private investments.”
Consideration of this issue would have caused skepticism or even irritation a few years ago. “You remember, they said: "Where to invest? Everything is lost over there, and there is no result.’’ Today, there is a different rhetoric. We can see already an understanding and visualization, and public investment, the most important thing to make private investors believe. This can be seen through the projects that have already opened in Stavropol Territory in the sphere of agriculture, and in Dagestan, and in Kabardino-Balkaria, and the revival of the industrial sector, and the increase in production volumes, and the strengthening of the competitiveness of enterprises,” Kuznetsov stated.
According to him, the NCFD’s niches are production of fruits, berries, this is the production of potatoes, vegetables and everything that we need. The enterprises of the Tyrnyauz complex associated with special carbide toolkits, the electrocomplex and another big line, including military-industrial areas.”
“By forming the real economy, we are creating the foundation for the internal development of the social sector. However, I'm sure that the sectoral programs, despite the limitations of the federal budget, given the disparity that is still present in a number of areas, will be provided with priority investments in the North Caucasus. And we have special projects, also including the medical cluster; its goal is the creation of high-quality, high-tech care for the residents of the North Caucasus Federal District,” Kuznetsov stated.
Speaking about development of the NCFD, Valentina Matviyenko, Chairwoman of the Federation Council of the Federal Assembly of the Russian Federation, said that the regions of the North Caucasus have a high appeal for investors: “Just to realize the potential opportunities, the right time, the right measure of support from the federal government is necessary, fortunately today we are less concerned about the security issues in the North Caucasus, though previously it was one of the limiting factors. And with the emergence of the Ministry of the North Caucasus, this work became more systemic, because this region, of course, has its own specific problems, it needs a systemic approach. And the process is going in the right direction. And the situation, perhaps, is developing more slowly than we would like, but it is improving.”
According to Matviyenko, there are investors who have begun to implement new projects, especially those that are related to the tourism cluster: “I recently talked with the head of Karachai-Cherkessia, and what is happening in the resort of Arkhyz is very pleasing. Even after our last visit there, the number of tourists going on vacation there has increased several times, and there is much more. Of course, we need roads, we need infrastructure, we need new jobs and conditions, maybe even some conditions for investors. I am confident that the measures that have been outlined by the Russian government will yield results, and we, as the Chamber of the Regions, will closely monitor everything that is happening in the North Caucasus. The resorts of the Caucasian Mineral Waters, they cover more than one region, are under our special control. And, also, there are positive changes over there.”
Matviyenko sees “a good future for the region, because it is a unique region, unique for its beauty, the potential for its resorts and wellbeing, nature, and its wonderful, hospitable people, the wonderful traditions of the Caucasian peoples. There is everything necessary, we only need to put some efforts and strength to support the regions from the federal center.”
