NOVOSIBIRSK REGION

• Economic Significance
• Financial Sector Profile
• Industrial Profile
• Foreign Involvement

The region is divided into four zones: the Suburban Zone, the Eastern one, the Baraba and the Kulunda Zone. The city of Novosibirsk is divided into ten districts. Weather: average daylight temperature in July is +77 F, and in January it is -4F.

Economic Significance

Novosibirsk region, unlike most of its neighbors, is not rich in primary resources, but is known for its manufacturing and processing, research and development capabilities. Much of Siberia's timber is brought to Novosibirsk for processing, as well as coal, iron-ore and oil. Lying on the banks of the river Ob and along the TransSib, Novosibirsk is a key crosspoint of the main transportation routes, from which cargoes are ferried to and from other Siberian regions, such as Altai Krai, Kemerovo, Omsk, Tomsk and Tyumen regions.

The region is home to over 50 banks, the largest of which are concentrated in the capital city. Branches of several Moscow banks are located in Novosibirsk, including Moscow Business Bank and the Savings Bank of the Russian Federation. The largest local banks are: Siberian Bank - with branches in Altai Krai and Omsk region; the Novosibirsk Bank for Foreign Trade - with branches in AlmaAta, Krasnoyarsk, Omsk and Tomsk; and Siberian Trade Bank (STB) - with branches in Moscow, St. Petersburg, Ekaterinburg, Tomsk and Barnaul. STB, along with several German companies, has established an investment Fund which will work with Russian securities. The bank will act as a broker on the Russian market.
Mosbusiness Bank
Address: Russia, 630099 Novosibirsk, Lenin ul. 12
Phone: 7-(3832)-22-20-89
Fax: 7-(3832)-22-18-31
Savings Bank of the Russian Federation (Sberbank)
Address: Russia, 630091 Novosibirsk, Krasnyi pr. 46
Phone: 7-(3832) 22-18-81
Fax: 7-(3832) 23-92-05
Siberian Bank
Address: Russia, 630099 Novosibirsk, Lenin ul. 4
Phone: (3832) 22-52-91, 22-64-29, 29-70-90
Fax: 7-(3832)-22-46-46
Siberian Trade Bank
Address: Russia, 630099 Novosibirsk, Oktyabrskaya ul. 35
Phone: 7-(3832)-23-12-67, 7-(3832)-10-02-00
Fax: 7-(3832)-23-65-76

The region boasts the highest concentration of industry in between the Urals and Pacific coast; there are over 200 heavy industry plants and 11,000-plus privatized enterprises of all sizes. 80% of the region's industry is concentrated in the city of Novosibirsk. Among the largest enterprises are: Novosibirsk Metallurgical Plant, the Novosibirsk Tin Smelting Plant, which matches production of quality with high-level technology, the Electrode Plant (Linyovo town), producing graphitized and carbon electrodes, electrode pastes and cathode units, KhimPlast Company, which makes plastics, molded parts, household paints and plastic supplies, the Kuibyshev Chemical Plant (Kuibyshev town), giving half of the region's chemical products, 104 machine-building and metal working plants, 56 timber-related enterprises, more than 35 construction materials plants, 103 food industry enterprises, 2 pharmaceutical enterprises (including NovosibKhimPharm), and 65 light-industry enterprises engaged mainly in production of textiles, clothing and footwear.

Novosibirsk region gives home to 372 ventures involving foreign entities, with approximately 3.5 thousand working places. The majority of them are joint ventures with Chinese, Korean or German partners, and only 32 of them involve U.S. partners. Approximately 32 billion rubles of goods were produced by these enterprises in 1994. Joint ventures and their affiliates exported goods worth $31 million and imported for $16 million. In the domestic market they sold goods for more than 28 billion rubles and $18,000.

The German government has been extremely supportive as for business development in the region and has invested considerably in Novosibirsk. Locating a consulate, a German Economic office and a German cultural center (summer 1995) in Novosibirsk has done much to demonstrate to the local officials that Germany is committed to developing strong business ties with the city and region. Accordingly, German business has enjoyed considerable success in establishing here legal entities, distributorships, in selling goods and in starting large scale production. The US involvement in Novosibirsk is growing, but American firms have not yet invested in projects of a scale, and the inflow of US products is limited. While the US does not have a consulate in Novosibirsk, the American Business Center acts there to assist US companies and individuals active in the area. The EBRD has established an office in the city and is providing small and medium size loans and grants to privately run businesses.

On the commercial side, Pepsi Co. has been producing in Novosibirsk for over 15 years, and has recently increased its activity. Eastman Kodak has been active in Novosibirsk for several years, and has established a chain of stores and service shops in the city. Barron Micro, a medium-sized computer manufacturer based in Texas, is going to expand its distribution net and to open more stores in the city and possibly throughout the Western Siberia. Master Food has had a distribution net in Novosibirsk for over a year and has recently announced its intention to expand its operations there, supplanted with the new production capacities in Russia. Ibberson International, of Minnesota, has concluded several deals to supply grain elevators. The equipment will come from the US and be assembled in Russia. 3M (Minnesota Mining and Manufacturing) is opening an office and is working with the trade company ATD Electronics. 3M plans to supply information carriers, office equipment and visual aids. Philip Morris is opening a representative office in Novosibirsk spring 1995. Digital Equipment named Novosibirsk companies Nonolet and Soft-Tronics their authorized dealers.

Courtesy American Business Center, Novosibirsk.