Social and economic situation of the Municipal Formation

The Krymsk District is located in the southwestern part of the Krasnodar Region. It shares its borders with seven districts including the Temryuk, Slavyansk, Krasnoarmeyskiy, Abinsk, and Anapa Districts, as well as the cities of Gelendzhik and Novorossiysk.

The administrative center of the district is the city of Krymsk. The Municipal Formation Krymsk District is endowed by the Law of the Krasnodar Region No. 749-KZ dated July 2, 2004 with the status of a municipal district consisting of 11 settlements – 1 urban and 10 rural – united by a common territory. There are 89 settlements in the Krymsk District: one city, 5 Cossack villages, 10 villages, 66 farms, and 7 small villages.

The area of the district is 1,601.25 square kilometers. The length from north to south is about 50 kilometers, and from west to east is more than 60 kilometers.

The area is densely populated. The largest settlements are the city of Krymsk; the Cossack villages of Varenikovskaya, Nizhnebakanskaya, and Troitskaya; the villages of Kiyevskoye and Moldavanskoye. All settlements are connected by asphalt, unsurfaced, or hard-surfaced roads. The main transport routes are asphalted highways: Krasnodar – Port Kavkaz and Krasnodar – Novorossiysk. Railway lines run parallel to them. The city of Krymsk is a large junction railway station.

The Krymskaya railway station can receive and depart trains in the following directions: Krasnodar, Novorossiysk, Anapa, Port Caucasus, Rostov-on-Don, Moscow, St. Petersburg, as well as cities of Siberia, the Far East, and others.

The storage station located in the 9th km section of the North-Caucasian Railway in Yuzhnyi rural settlement (the terminal’s capacity is up to 4 million tons of cargo per year) provides an improvement in the operational work of the North-Caucasian Railway in the period of force majeure circumstances due to the non-acceptance of trains to the port of Novorossiysk, allows to eliminate the problem with «abandoned» trains during unfavorable weather conditions if Novorossiysk Seaport is closed for cargo operations. In December 2019, a new station building was opened at the station and a new passenger platform was constructed; the latter provides passenger trains to follow through it to Crimea.

A network of road and rail through-passages runs through the city. The insignificant remoteness from the regional center (100 km), the ports of the city of Novorossiysk (50 km), the resort cities of Gelendzhik and Anapa, and the Azov sea coast is the main advantage of the geographical location and investment development of the district.

The economic development of the Krymsk District in the current year is characterized mainly by positive growth rates of macroeconomic indicators (for large and medium-sized enterprises).

In all sectors of the consumer market, growth is observed compared to the corresponding period last year. The retail trade turnover increased by 13.7% compared to the 10 months of 2020. The public catering turnover for 10 months of this year increased by 9.4% compared to the same indicator last year. The wholesale trade turnover is characterized by positive dynamics; the growth was 31.4% to the same level of the indicator in the corresponding period of the last year.

A significant growth rate (2.2 times) was ensured in construction, which is primarily due to an increase in the volume of work performed by contractors within the investment project on the construction of the UDARNAYA Combined-Cycle Gas Turbine Thermal Power Plant in Kiyevskoye rural settlement.

Following the result of 10 months of 2021, the growth in transportation and storage services amounted to 105.0%.

The situation in agriculture develops positively – the growth in the shipment of agricultural products amounted to 121.4% against the level of 10 months of 2020.

The average monthly salary in the district (for large and medium-sized enterprises) during the period of January-September 2021 amounted to 37,942 rubles; it increased by 5.4% compared to the same period last year. The level of the average monthly salary in the district versus the average regional level is 83.4%.

The Krymsk District has a diversified economy. Industry (38.4%) and agriculture (16.2%) occupy a significant share of the economy of the Krymsk District. Retail trade accounts for over 40.0% of the total turnover of basic types of activity. The share of other types of activities is only 4.6%.

Industry occupies a significant place in the economy of the Municipal Formation Krymsk District. Currently, the share of industry in the Krymsk District is over 30%. More than 130 industrial enterprises are registered in the territory of the district.

Currently, the following areas of processing enterprises are actively developing in the territory of the Krymsk District: beverage production (Soyuz-Vino LLC, Krymsk Wine Factory LLC, Olymp LLC, Sauk-Dere Agricultural Firm LLC); production of other non-metallic mineral products (a branch of Rusjam Steklotara Holding LLC in Krymsk); production of finished metal products (Svetlana LLC); metallurgical production (an additional office of System Aluminum JSC).

The share of other types of activities (footwear production, production of chemical products, production of rubber and plastic products, production of other finished products, etc.) in the total volume of industrial production is insignificant and is represented mainly by small businesses.

The investment project in the field of the industry – the construction of a plant for manufacturing elevator equipment – is being successfully implemented (investor: Kakhman LLC). The project will be completed in 2019-2023. The volume of investments for the project will amount to 298.4 million rubles.

The implementation of the project provides for creating an industrial and technical complex for manufacturing high-tech elevators with a capacity of up to 5,000 units per year.

Today, the production is actively working and increasing its capacity. The only elevator plant in the Southern Federal District has been already participating in the multicompartment building overhaul program.

Last year, new wineries were constructed in the Krymsk District in Shkolnyi farm (investor: Chateau Andre LLC; the volume of investments is more than 130 million rubles; 13 new jobs were created) and the Cossack village of Varenikovskaya (investor: Russian Terroir LLC; the volume of investments; 100.0 million rubles; 30 new jobs were created).

There are over 50 agricultural enterprises engaged in the production of agricultural products in the territory of the city of Krymsk and the Krymsk District. Along with agricultural enterprises, 591 peasant farms, 148 individual entrepreneurs, and 28 thousand personal subsidiary plots including 2,460 commercial ones carry out their economic activities.

The main direction in plant growing of the Krymsk District is the production of grain and tilled industrial crops, vegetable growing, viticulture, and horticulture. In addition, protected horticulture is developing as well.

Following the results of the harvesting campaign in 2021, the Municipal Formation Krymsk District took first place in the South Piedmont and Anapo-Taman natural and climatic zones.

Livestock breeding in the Krymsk District is represented to a greater extent by peasant farm enterprises and households.

The total production of livestock and poultry in live weight amounted to 7.72 thousand tons or 100.0% against the corresponding period of 2020. 15.7 thousand tons of milk (92.9%) and 21.9 million eggs (99.1%) were produced.

In 2021, 17 people took advantage of the measures of state support within the state program of the Krasnodar Region «Development of Agriculture and Regulation of Markets for Agricultural Products, Raw Materials, and Food», including citizens running their own subsidiary plots, 3 people (self-employed citizens running personal subsidiary plots) for 77 thousand rubles, 5 people (individual entrepreneurs and heads of peasant farms) for 1.1 million rubles, and 9 people for 5.2 million rubles.

The consumer sector is one of the leading sectors of the economy of the Krymsk District. As of 01/12/2021, there are 1,265 stationary trade objects on the territory of the Municipal Formation Krymsk District. The total sales area is 98,402.19 sq. m. The provision of trade places in the Krymsk District is 728.2 sq. m per 1,000 people.

The retail trade turnover for large and medium-sized enterprises of all types of activity in January-October 2021 amounted to 9,355.3 million rubles (122.4%), the real volume of retail trade increased by 13.7%.

In the structure of trade turnover, sales of food products including drinks, and tobacco account for 47.3% (they were 49.8% a year ago).

The infrastructure of retail trade enterprises is being developed. During the reporting period of 2021, 12 retail trade facilities (Krymsk, the Cossack villages of Varenikovskaya and Troitskaya, as well as Adagum and Pavlovskiy farms) were commissioned; their trading area amounted to 3,881.55 sq. m.

As of 01/12/2021, there are 162 public catering facilities with 6,381 seats in the territory of the Municipal Formation Krymsk District. The provision of seats in the public network is 47.3 seats per 1,000 people.

The turnover of catering for large and medium-sized enterprises of all types of activity for the reporting period of 2021 amounted to 19.9 million rubles, or 109.4% to the level of the corresponding period of 2020.

Magnit, the chain of stores of Tander JSC including the Magnit Family supermarket; Pyatyorochka, the chain of stores; Deshevle Vsekh, the chain of stores; Sitsiliya, the chain of pizzerias; DODO-Pizza, the chain of pizzerias; the Skazka café; Magellan, Premier, Tsarskiy, and KFC, the chain of restaurants, and other facilities successfully operate in the territory of the Municipal Formation Krymsk District, which allows meeting the population’s demand for food, industrial goods, and public catering services to the fullest.

For the period 2022-2024, a positive dynamic of the growth rate of industrial production in the Municipal Formation Krymsk District (for the full range of enterprises) is forecast by 9.0% in 2022 against the previous year, by 6.3% in 2023, and by 6.6% in 2024. For large and medium-sized enterprises, industrial production growth is forecast by 8.7%, 6.5%, and 6.7% in 2022-2024, respectively.

An increase in the volume of production and shipment of products for industrial production is planned, first of all, due to an increase in a load of existing production facilities. Along with this, one of the main directions of increasing industrial output is attracting investment for the construction of new industrial enterprises, as well as technical and technological re-equipment of existing industrial facilities.

The territory of the Krymsk District is becoming more and more attractive for investors, due to which production facilities are being modernized, new enterprises are opening and additional jobs appear. For example, the following large investment projects were implemented. The construction of the Kazachya compressor station (Stroytransgaz CJSC), worth 13.6 billion rubles, was successfully implemented (a glass container plant of the branch of Rusjam Steklotara Holding LLC in Krymsk; the total investment amounted to 2.8 billion rubles). A project for establishing intensive-type orchards (stages 1 and 2) on an area of 286 hectares (investor: Yuzhnye Zemli LLC). The volume of investments amounted to 3 billion rubles. As part of the investment project, more than a dozen of the most popular and long been-loved varieties by Russians, such as Granny Smith, Gala, Golden Delicious, Red Delicious, Reinette Simirenko, and others, are produced. Products are delivered to the largest retail chains in Russia all year round providing worthy competition to imported counterparts.

The Administration of the Municipal Formation Krymsk District works to increase the investment attractiveness of the district. Currently, in the territory of the Municipal Formation Krymsk District, along with the construction of a plant for the production of elevator equipment worth 298.4 million rubles, the implementation of a large investment project on the construction of the UDARNAYA Combined-Cycle Gas Turbine Thermal Power Plant is being continued (investor: TEKHNOPROMEKSPORT Foreign Economic Association LLC, Moscow). The capacity of the Udarnaya TPP will be 500 MW. The construction of the thermal power plant will reduce the energy deficit in the Krasnodar Region and support the stable operation of the power system of the Crimean Peninsula. The volume of investments for the project will amount to 51.1 billion rubles; its completion is scheduled for 2023. As a result of its implementation, it is planned to create 250 new jobs.