Date of foundation: January 26, 1943

Area: 95 700 km 2 , including 63% woodland, 27% arable land, 10% other land.

Border Oblasts:

Tomsk Oblast in the north;

Novosibirsk Oblast in the west;

Altayskiy Krai and Altay Republik in the south;

Krasnoyarsk Kray and Khakasiya Republic in the east.

Length: from north to south 510 km

Width: from west to north - 300 km

Distance to Moscow : 3 500 km

Total population: about 3 mln. people (as of 01.01.2000); city population: 87%.

Female/male ratio 52.7%./47.3%

Population density— 31 people/km 2 .

More than 100 nationalities live within Oblast boundaries. The share of indigenous peoples, shortsy and teleuty, is 0.5%.

Major cities (population in excess of 100,000 people) :

Novokuznetsk — 578,700

Kemerovo — 530,500

Prokopievsk — 234,800

Belovo — 165,700

Leninsk-Kuznetskiy— 152,900

Kisselyovsk— 115,300

Mezhdurechensk — 104,500

Administrative divisions:

19 districts (rayions), 20 cities, 46 urban settlements, 235 rural administrations.

1081 localities are inhabited by rural population.

Administrative Center: City of Kemerovo .

Top legislative branch: Council of People's Deputies, comprising 35 deputies, elected to serve four-year terms.

Head of executive branch : Governor.

The Kemerovo Oblast basic law (Charter) adopted on April 9 th , 1997 .

KUZBASS ECONOMICS

Kuzbass is one of the most fast growing regions. Small in area, densely built, with a well developed road network and high-capacity multisectotal economy, Kemerovo Oblast is taking the lead in Siberian economy. About one-third of Western Siberia productive assets are concentrated here.

Fuel and energy

Coal mining accounts for 32% of the overall industrial output. The Kuzbass coal reserves make up 690 billion tons of low-ash, low sulphur content (less than 1%) featuring all well-known grades and quality characteristics pertaining to coking and steam coals. Kuzbass currently mines 52% of Russian bituminous coal output, with 84% share for coking coal.

During the nine months of this year, the coal sector demonstrated 11% year-on-year growth rate.

Kuzbass power generation system is represented by ОАО “Kuzbassenergo” — the branch of RAO “Unified Electrical System of Russia”. The power generation accounts for 13.4% of the overall industrial production in the Oblast.

The steel output accounts for 33% of the total industrial production in Kuzbass; with 3.4% share of non-ferrous sector.

This year alone, more than RUR 2 billion was spent towards renovation and modernization of the steel sector to make it the largest growing sector amongst Kuzbass industries in 2003. The leader products in this sector in 2003, in terms of growth, are: electric steel smelting – by 40%; hot rolled stainless steel - by 30%; aluminum alloys - by 56%, railway rails by 4%. Since early this year, the overall profits in this sector totaled more than RUR 2 billion. The Oblast enterprises are expected to generate about RUR 1.8 billion of tax payments into the regional budget alone. It is triple the amount of the tax payments of the last year.

The steel sector enterprises account for more than one-third of the overall industrial production in the Oblast. The largest metal producers in the region are West Siberian Steel Works (ZapSib) and Kuznetsky Ferrous Alloys Plant, “Novokuznetsk Aluminum Plant” all in Novokuznetsk , ОАО Koks(Coke production) in Kemerovo.

Chemical industry

The chemical industry is concentrated in Kemerovo , this sector accounting for 6 per cent of Kuzbass industrial output. The range of produced chemical products exceeds 100 items. 90% of chemical enterprises of the Eastern Russia are located in Kemerovo Oblast.

The leading producer in the chemical sector, Azot Company, is worth noting as a stable company working at full capacity. In 2003 the sector received RUR 550 m. of investments. The sector is expected to generate RUR 200 m. of tax revenues.

The share of chemical and petrochemical sectors is 5.8% of the Kuzbass industrial product.

Engineering

This sector comprises 97 facilities engaged in various forms of machine-building activities: manufacture of coal and ore mining equipment, electrical appliances, chemical engineering, lathes, tools, instruments, bearings, equipment for light and food industries, equipment for sanitary and bathroom ware production, gas sector and road construction industry equipment. The focus of machine building in Kuzbass is on mining equipment (20%) and electric appliances (24%). The sectoral production growth over 9 months totaled 20%. The machine building and metalworking account for 4.6% of Kuzbass industrial product.

Transportation

This year Kuzbass took the lead in the Russian Federation in terms of freight turnover for railway and automobile transport. The Trans Siberian Railway intersects Kemerovo Oblast in the north, South Siberian Railway – in the south. Kuzbass has direct railway links with all Russian regions. In 2003 Kuzbass railways carried more than 195 m.tons of goods, totaling 84% of all freight transport by western Siberian Railways, to be 8% higher than the previous year level.

Eight Russian airlines fly from Kuzbass airports. Apart from Kuzbass Moscow air link, the flights are offered to another 15 Russian cities, as well as chartered flights to Thailand , China , Mongolia , Norway , Cyprus , Iran , Kazakhstan , Turkmenistan , Turkey et cetera.

Communications

There are more than 100 communication service providers in the Oblast. The number of mobile phone owners quadrupled to reach 250,000 users.

Construction

The construction sector is growing. The housing problem remains a sectoral priority. This year, the urban housing market received another 510,000 m 2 of new housing (10% year- on-year growth). Additional 5,000 m 2 of housing in the rural areas were commissioned within the framework of the Oblast programme “Rural homes” (by 40% more than in 2002).

Light Industry

The enterprises from this sector mainly specialize in production of woolens and silks, leather foot ware, knitwear and ready made garments, chinaware and other merchandise. 40 large producers in the light industry sector are currently operational in Kuzbass.

Food and food processing sectors

The group of companies operating in the sector includes: industrial confectioneries located in Kemerovo, Novokuznets and Kisselyovsk, two pasta factories, 24 soft drink and beer brewery facilities, tobacco factory (in Prokopievsk), a distillery, four wine and liqueur bottlers. Bread and baking industry comprises 72 operating companies. The meat sector has 14 meat slaughter/processor and sausage facilities.

The sector has produced more than RUR 5 billion worth of foodstuffs. It totals 5% of the Kuzbass industrial product.

Small business sector

13,500 enterprises are operational in this sector that employ 180,000 people (year-on-year growth of 6 %). The annualized industrial output totaled RUR 21.2 billion (year-on-year growth of 13 %). The share of small business sector in tax revenues amounted to 11 % (9 % in the case of Russia ). The tax collections by small business to the regional budget reached almost RUR 2 billion this year.

Small enterprises operate virtually in all the important sectors of regional economy: manufacturing, construction, trading, health care, and services. During the first half of this year alone, the output by SME sector totaled almost RUR 9 billion.

Agricultural Sector

This sector employs 4.3 % of economically active population. Agribusinesses produce 33% of total meat production, 58% of total produced milk and 73% of chicken egg output. The remaining share falls on farms and market gardens.

The new technologies and farming practices that are continuously introduced in the sector enabled over 1 m. tons of grains to be harvested for the fifth year running.

Trading turnover

In 2003 the regional retail trade turnover totaled RUR 89 billion (year-on-year growth of 12 %). The public catering sector retained high growth rate (10%) with RUR 3.7 billion annual turnover. Trading and catering sectors are current leaders in job generation with 6% year-on year increase of employment (160,000 people currently employed there, or 13% of the total Kuzbass employment).

The share of Kuzbass of the trade turnover of the Western Siberia is 45.1%, including 50.5% for export.