Development of joint business in the Adygey Republic

On January 1, 1999 40 joint ventures were registered in the republic, including 21 working companies with foreign investments (manufacturing products and providing services). From the total number of working joint ventures 2 specialised in chemical and petrochemical area, 2 in food industry (one company in meat processing industry, one company in dairy industry), 1 was engaged in wood logging, 1 - in woodworking, 1 - in loading/unloading, 1 - in foreign tourism and education, 2 - in construction and 9 - in trade and public catering. Joint ventures in Adygey are organised with corporations from Turkey, Hungary, Syria, Germany, as well as Bulgaria, Cyprus, Czech Republic, France, Italy, Lebanon, Ukraine, Great Britain, USA and Monaco.

In 1998 the cost of joint venture production was 13,004.8 thousands roubles. The total number of people employed by joint ventures was 292 in 1998, which is slightly less than in 1997.

The joint ventures are spread unevenly on territory of Adygey: most of all them are located in Maykop - 28, in Maykop and Takhtamukaisk regions - 4 in each; 1 joint venture in each of Krasnogvardeisky and Teuchezhsky regions of the republic, 2 joint ventures in Adygeysk.

The foreign trade turnover of joint venture in 1997 has was 2.1 million USD (in 1996 - 1 million), including export - 0.7 million., import - 1.4 million.

The most known joint ventures: Russian-French "Adygey-Moro" - sawn timber trade; Russian-Turkish "ATA" - bakery products and light industry products; Russian-Turkish "Siadyg" - equipment, tools, trousers tailoring; Russian-British "Mavel" - casein production; Russian-Ukrainian "Buda" - alcohol products; Russian-Turkish "Anai" - woodworking and pulp and paper production, building materials from wood; Russian-Hungarian "Adygey-Takiplast" - plastic containers, raw materials, production of consumer goods; Russian-American "Azis" - consumer goods, organisation of retail and wholesale trade; Russian-American "Intergaz" - exploring, mining and sale of gas. The geologic Committee of the Republic has issued to joint-stock company "Intergaz" a licence (for the period of 20 years) for exploring and mining of natural gas and condensate in Maykop field. One of the founders of the joint-stock company "Intergaz" is the company "Kastron" (registered on Virgin Islands and owning 50% of the company capital), that agreed to provide financial assets of 48 million USD within 5 years.

Companies with foreign investments do not make a noticeable contribution to the improvement of the economy of the republic yet, however the Government of the Adygey Republic undertakes different efforts for expand this activity.