Investment
In 2008 large and medium-sized companies in the Republic of Komi have employed RUR 66.2 bln in their capital stock, the figure being nearly 12.0% bigger than the one for 2007. The equity capital of the companies in the composition of investment in the capital stock of large and medium-sized companies was 51%, the amount of borrowed capital - 49%. The budget funds in the structure of raised money were 7% of the total amount of investment.
In the composition of investment in the capital stock in economic activities of large and medium-sized companies, 31% was directed for transport and communication development; 35% - for the primary sector; 13% - for the manufacturing industries; 6% - for realty, renting and services.
Major investment projects implemented and planned in the Republic of Komi:
Yamal-Europe Interregional Megaproject;
Railway Main Line Construction Project "Solikamsk-Gainy-Syktyvkar-Karpogory-Archangelsk";
Automobile Road Construction Project "Syktyvkar - Ukhta - Pechora - Usinsk - Naryan-Mar with access ways to Vorkuta and Salekhard";
Automobile Road Construction Project "Aikino - Koslan", "Ukhta - Troitk-Pechorsk", "Syktyvkar - Kudymkar - Perm";
New Airport Construction Project for Syktyvkar;
Usinsk Oil Field Development Project;
Scheliyaur Oil Field Development Project;
Vozey Oil Field Development Project;
Yarega Oil Field Development Project;
Mid-Makarikhinskoye Oil Field Development Project;
First Stage of the Complex for Oil and Gas Preparation and Conversion with the Capacity of 1 mln tons of Crude Oil;
Seidinskoye Coal Field Development Project;
Vorkutinskoye Coal Field Underbody Development Project;
Development Project for Yarega Mining and Chemical Complex with the Capacity of 650,000 tons of Ore Mining and Processing;
Mondi Syktyvkar Development and Reconstruction Project (Step Project);
OSB Safwood Line Construction Project;
Development Project for Sanitary Tissue Production Reconstruction and Expansion ;
Development Project for Expansion of Mining and Deep Processing of Khoilinskoye Barite Field;
Brick Pottery Construction Project;
Vorkuta Colliery Construction Project (including reconstruction and combining Vorkutinskaya, Severnaya, Komsomolskaya and Zapolyarnaya Collieries as one mega-colliery; and development of trough bend of Vorkutskoye Coal Field at Zapolyarnaya Colliery).
Foreign investment
Foreign investment accumulated in Komi as of early 2009 was USD 1.4 bln. In 2008 USD 931.6 mln was invested in the Komi economy, which is 2.4 times more than in 2007.
In the 2008 foreign investment composition, 57.7% accounts for direct investment with the major sources being contributed surplus and loans from foreign company owners. The funds coming from abroad as foreign investment were used in 2008 by 98%, most of them being investment in the capital stock and repayment of loans borrowed from banks and other financial institutes.
Credit ratings
The Republic of Komi has a high level of attraction as an investment as confirmed by big enough ratings fixed by leading national and international agencies.
Komi ratings in 2008:
Long-term national credit rating, type А-(rus), Forecast: Stable (Fitch Ratings);
Long-term international rating in foreign and national currency at BB level, Forecast: Stable (Fitch Ratings);
Credit rating for foreign and domestic borrowings at Ва2 level, Forecast: Stable (Moody's Investors Service);
Credit rating at А+ Level, Forecast: Positive (Expert RA - АК&М Consortium).
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Dynamics of international credit currency ratings of the Republic of Komi |
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2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
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Moody's Investors Service |
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В2 |
В2 |
В1 |
Ва3 |
Ва3 |
Ва2 |
Ва2 |
Ва2 |
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Stable |
Stable |
Stable |
Stable |
Stable |
Stable |
Stable |
Stable |
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Fitch Ratings |
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ССС |
В+ |
В+ |
В+ |
В+ |
ВВ- |
ВВ- |
ВВ |
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Stable |
Stable |
Stable |
Stable |
Positive |
Stable |
Positive |
Stable |
Innovation
The Republic of Komi, naturally and historically, is predominantly a recipient of innovation developed outside. The basic users of science-intensive products are major companies in the Republic of Komi.
Research and development is conducted by 24 large or medium-sized scientific establishments of the Republic. Komi Science Centre of the Ural Branch of the Russian Academy of Sciences, a multi-sectoral research complex that integrates 6 research institutes (for biology, geology, language, literature and science, physiology, chemistry, socioeconomic and energy problems of the North, and Vylgort Scientific Experimental Biological Station) is in charge of academic research in the Republic of Komi.
Technology innovation is still accumulated in fuel and energy or timber sectors.
Stock market
There are 156 public corporations and 275 private corporations registered in the Republic of Komi. In January-September 2008 the Komi joint-stock companies mobilized RUR 2.9 bln equity capital, including RUR 2.8 bln as fresh shares.
Bonded loans of the Republic of Komi
The following republican bonded loans have been floated:
- RUR 700 mln 2003 Bonded Loan of the Republic of Komi; the funds were allocated to cover the Komi republican budget deficit. The maturity period is 7 years; the maturity date is 14 October 2010. Disbursement against half-year coupons is provided for;
- RUR 1 bln 2004 Bonded Loan of the Republic of Komi; the funds were allocated to cover the Komi republican budget deficit. The loan bond was totally floated among the investors. The maturity period is 9 years; the maturity date is 22 November 2013. 50% debt amortization of the initial face value is provided for on 23 November 2012 and 23 November 2013. Disbursement against half-year coupons is provided for;
- RUR 1 bln 2005 Bonded Loan of the Republic of Komi; the funds were allocated to cover the Komi republican budget deficit. The loan bond was totally floated among the investors. The maturity period is 10 years with the maturity date on 3 December 2015; 50% debt amortization of the initial face value is provided for on 3 September 2014 and on 3 December 2015. Disbursement against half-year coupons is provided for.
Banking sector
The banking sector of the Republic of Komi is represented by 3 independent credit institutions with seven branches; 34 branches of other regional banks (including 13 RF Savings Bank branches); 128 additional offices, 12 lending and cash services offices; 87 out-of-the-office cash counters; 2 representation offices of other regional credit institutions.
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List of Credit Institutions Active in the Republic of Komi as of 1 January 2009 |
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Regional banks |
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1. |
JSC Ukhtabank Komi Regional Bank, Ukhta |
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2. |
JSC Northern Public Bank, Syktyvkar |
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3. |
JSC Vorkuta Bank (Private), Vorkuta |
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Other Regional Bank Affiliates |
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1. |
RF Savings Bank(Public) Komi Affiliate # 8617, Syktyvkar |
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2. |
VTB 24 (Private) Affiliate #1104, Syktyvkar |
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3. |
JSC MBRD (Public) Regional Affiliate, Syktyvkar |
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4. |
OJSC Severgazbank Regional Branch Centre, Syktyvkar |
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5. |
OJSC Severgazbank Branch, Vorkuta |
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6. |
OJSC Severgazbank Branch, Sosnogorsk |
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7. |
OJSC Severgazbank Branch, Ukhta |
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8. |
JSC Gazprombank (Private), Ukhta |
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9. |
JSC St.Petersburg Tavrichesky Bank (Public) Branch, Pechora |
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10. |
JSC St.Petersburg Tavrichesky Bank (Public) Branch,Syktyvkar |
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11. |
CB Russian Industrial Bank, Ltd., Usinsk |
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12. |
CB Russian Industrial Bank, Ltd. Branch, Syktyvkar |
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13. |
JSC CB Moscow Business World (Public), Syktyvkar |
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14. |
OJSC CB StroiCredit Branch, Ukhta |
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15. |
JSC CB TranscapitalBank (Private) Branch, Syktyvkar |
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16. |
OJSC VTB Bank Branch, Syktyvkar |
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17. |
JSC CB Bank of Moscow Branch, Syktyvkar |
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18. |
OJSC All-Russian Bank for Regional Development Branch, Usinsk |
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19. |
OJSC Trust National Bank Branch, Syktyvkar |
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20. |
OJSC RosselkhozBank Branch, Syktyvkar |
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21. |
OJSC PromsvyazBank Branch, Syktyvkar |
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22. |
CB Northern Credit (Private) Branch |
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* To form unitary standards of operational and service management and offering better quality of services for clients, on 17 February 2009 VTB 24 (Private) Branch #1104 received the status of Syktyvkar Operational Branch Office #7806 of VTB 24 (Private) in St. Petersburg. |
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As of 1 January 2009, the amount of credit supplies of the Komi lending institutions was RUR 65.8 bln.
The amount of personal finances attracted as deposits was RUR 34.5 bln on 1 January 2009 (without regard to the funds on the accounts of sole proprietors).
Small business
Small business development in the Republic of Komi has held more and more firm place in the regional economy over the period of several years.
The number of small businesses has reached 11,500 by 2009 to incorporate 60% of the entities registered in the Republic. 23,000 people are engaged in individual entrepreneurial activity.
The small businesses in the Republic produce the fifth of the total logged timber output. They gave a significant proportion of 2008 annual manufacture of metal-plastic windows or doors (68% and 79%, consecutively).
The small businesses offer 88% of consumer services and provide for 25% of freight and about 70% of passenger traffic in the Republic.
In 2008 as much as RUR 1,250,000 capital investment was made per small business in Komi (in 2007 the figure was RUR 880,000).
