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The Second Coming of Industrialization
// Pages on a Certain Subject
The redivision of property in Krasnoyarsk territory has been completed, in the main. Now certain persons begin to divide the property which will be created some time in the future.
Property

Krasnoyarsk Territory, which occupies, along with Evenkia and Taimyr, more than 13% of the country's territory, can also boast a considerable part of its natural resources. Twenty-seven percent of Russian aliminium, practically all metals of the platinum group, 75% of cobalt, 80% of nickel, 70% of copper and 24% of lead are produced there. Besides, the region is second in importance coal base in the country, after Kuzbass, second in the generation of electricity, and third in the volume of timber production.

At the same time the local economy is oriented to the export of raw materials, the infrastructure is weakly developed, and enormous reserves of natural riches are still undeveloped. The gross regional product in Krasnoyarsk Territory grows slower than in other parts of Russia: in 2004 its increase comprised only 3.2%.

Alexander Khloponin, who became the governor of the territory in the autumn of 2002 was regarded a man of the “Interros” industrial group, and many people feared that he would mainly be engaged in promoting and upholding the interests of “Norilsky nikel” to the detriment of the inhabitants of the region. Besides, his main opponent at the election was Alexander Uss, the speaker of the territorial assembly, who was supported by “Russky alyuminy”. This was why everybody expected that the winner would declare war on “Russky alyuminy”. But this didn't happen, and the former rivals maintain quite correct working relations.

Owners

The “Interros” group is one of the biggest owners in Krasnoyarsk Territory. It has the controlling block of the “Norilsky nikel” shares. At one time the financial position of “Norilsky nikel” steadily deteriorated, but with the help of the former governor Alexander Lebed its debts were restructured, and the Russian government forced to replace the former management of the company. By 2000 the situation on the market improved and the profit of “Norilsky nikel” increased tenfold. Now the company is the world's biggest producer of nickel and palladium and one of the biggest producers of platinum, gold and copper. Apart from that, it also puts out cobalt, silver, iridium, etc.

The “Polyus” Company is an important branch of “Norilsky nikel”, the biggest producer of gold in this country, accounting for 18% of the total volume of its output. In 2004 “Polyus” bought 20% of the South African Gold Fields for $1.2 billion.

“Norilsky nikel” also owns the Yenisei River shipping line, which is responsible for the delivery of the necessary commodities for winter in the North of the terriutory, and the Lesosibirsky port.

Another big owner in the territory is “Russky alyuminy” (“Bazovy element”). Its main asset is the Krasnoyarsk aluminium plant (KrAZ), the world's second largest aluminium producer, which accounts for 27% of all aluminium turned out in Russia and 3% of world production. This plant was the main object of the so-called aluminium war in the 1990s – early 2000. Control over it passed from one owner to another several times during that period. Among the main rivals were the British Trans World Group, the Swiss Glencore, the American AIOC, the Krasnoyarsk businessman Anatoly Bykov, the “Alpha-Group”, “Sibirsky alyuminy” and “Sibneft”. As a result, the controlling block of shares was acquired by Oleg Deripaska's company “Bazovy element”, which bought 25% of the shares from “Sibneft” for $2 billion.

There is the Achinsk alumina plant (AGK), Russia's biggest enterprise producing alumina, which also belongs to “Russky alyuminy”.

It also owns the “Yeniseisky (formerly Krasnoyarsk) TsBK” controlled by its affiliation “Continental Management”. Besides, “Bazovy element” owns a number of timber and wood-working enterprises.

“Russky alyuminy” owns 70% of the Krasnoyarsk hydropower plant, the second biggest in Russia and one of the ten world's largest. The main customer of the hydropower plant is the Krasnoyarsk aluminium plant (KrAZ). “Norilsky nikel” owns 25% of the hydropower plant's shares.

The RAO “EES Rossii” is also present among the industrial owners in the Krasnoyarsk Territory. Among its key enterpises are several big electric power plants.

The enormous coal deposits of the region have drawn the biggest coal producer (MDM Group) which accounts for 30% of all coal extraction in Russia. It owns 75.6% of the shares of “Krasugol”.

“Evrazholding” owns the Irbinskoye and Krasnokamenskoye ore mining enterpises on whose basis the company plans to create an ore-dressing plant.

“Agromash-holding” has the Krasnoyarsk harvester combine plant which supplies the country with 15.5% of all grain harvesters.

The tyre holding “Amtel” owns the Krasnoyarsk tyre factory and also the Krasnoyarsk plant of rubber equipment.

The Krasnoyarsk plant “Sibtyazhmash” is Russia's only manufacturer of heavy electrical bridge cranes with a capacity of over 200 tons. In the beginning of 2004 the plant's debts and 30% of its shares were bought by an offshore company in the interests of a certain engineering holding (possibly, “Obyedinenniye mashinostroitelniye zavody”). The unique plant's interests were upheld by the mayor of Krasnoyarsk Pyotr Pimashkov and the governor of the territory. At present the plant is owned by a group of local businesmen.

Some big industrial enterprises are, completely or partially, owned by the state. Among them the country's biggest producer of house fridges, “Krastsvetmet”, KraMZ (Russia's biggest producer of commodities of aluminium alloys).

“Rosneft” is a newcomer to the oil branch of the territory. In 2003 it began to develop the Vankorskoye oil deposit in the Turukhansk District. It was announced in late September that the company plans to build an oil pipeline and join it to the trunk line of “Transneft”. It is expected that “Rosneft” will invest $2.7 billion in the development of the deposit..

Preparations for Sale

The territorial administration is determined to effect the “economic leap” promised by Givernor Alexander Khloponin during his election campaign. Thus, the development plan of the Krasnoyarsk Territory emerged which aimed at gaining maximal advantages from the incorporation of Evenki and Taimyr areas in the territory. A project of the development of the region in the lower riches of the Angara River is going to be submitted to the government of the Russian Federation in November.

At present this region is a vast and sparsely populatred area with a weakly developed infrastructure and high unemployment. But it has enormous natural resources: 13% of Russian gold, 31% of lead, 15% of manganese, 29.5% of French chalk, and 2% of iron ore. There are also big deposits of bauxites, coal, rare metals and great timber resources. Besides, in the south of Evenkia there are oil and gas deposits. The development of all this natural wealth will only be possible with the construction of the Boguchanskaya hydropower plant and a network of motor roads, railways, electricity transmission lines and pipelines.

If the Russian government allocates the necessary means from its investment fund for these infrastructural projects (about $4 – 4.35 billion), then local businessmen are now ready to invest up to $22.6 billion in the construction of big industrial objects. Among them an aluminium plant close to the Boguchanskaya hydropower plant, necessary projects for the development of oil and gas deposits, the construction of an oil and gas refinery, etc.
Among the investors are “Russky alyuminy”, “Gazprom” and others.

Pipelines from the Evenki deposits will be laid out via the lower reaches of the Angara River and from there one will be directed to Europe and another will join the trunk oil pipeline going to China and Japan.

The cost of the two sections will amount to something about $1 billion, whereas the benefit may reach $8 billion. According to Governor Alexander Khloponin, the maintenance of Evenkia and Taimyr may cost the territory five billion roubles annually, whereas the development of the Vankorsky oil deposit with a pipeline to Dikson, plus the commissioning of the Boguchanskaya hydropower plant with the adjacent aluminium plant will give the local budget 14 billion roubles' revenue additionally. This is the multiple effect of the plan of joining Evenkia and Taimyr to the Krasnoyarsk Territory.

   &
Map of Krasnoyarsk Territory
(.jpg, 394 kb)
Magnify

“Norilsky Nikel”

The copper-nickel deposits in Taimyr have been known since the 17th century, however, a mining and metallurgical enterprise began to be built there only in 1935. The discovery of the richest deposits in the area has brought it to the world level. In 2004 the enterprise produced 20% of the total world output of nickel. In 2005 “Norilsky nikel” took 396th place in the FT Global 500 – the rating of the 500 biggest companies of the world compiled by the British “Financial Times”.

Krasnoyarsk Aluminium Plant

This is the world's and Russia's second largest aluminium plant. It accounts for 27% of the total Russian and 3% of the world's aliminium output. The plant was commissioned in 1964, survived the “aluminium wars” of the late 1990s, and in 2000 became part of the “Rusal” Co. Last year KrAZ produced more than 930,000 tons of aluminium.

The Tunguska Meteoirite

On June 30, 1908, there was a giant explosion in the vicinity of the Podkamennaya Tunguska River (Evenkia). By certain estimates, it was 2,000 times more powerful than the atomic explosion over Hiroshima in 1945. Although the explosion is usually explained by falling down a huge meteorite, no fragments of any celestial body have been found.

“Biryusa” Fridges

In Soviet time fridges and freezers of the “Biryusa” trade mark, named in honour of the Siberian river, could be found in practically every home. The factory turning out these fridges was commissioned in Krasnoyarsk in 1963, and ten years later the number of the fridges and freezers produced reached 580,000. Some of them have been exported to East and West European countries under the trade mark “Snowcap”.

Shushenskoye Settlement

The village of Shusha was founded by Russian Cossacks in 1744. In the 19th century the village became a place for political exile. Vladimir Ulyanov (Lenin) was exiled there for three years from 1897 to 1900. He finished his work “The Development of Capitalism in Russia” and married Nadezhda Krupskaya in Shushenskoye.

The Reserve “Krasnoyarsk Pillars”

This is a unique natural reserve and one of the most favourite places of local people. The rocks of the most intricate and whimsical forms due to winds, frosts and heat waves relate to the Cambric period (600 million years B.C.). This is borne out by their names: “Monk”, “Big Eagle”, “Lion Gate”, “Griffon”, “Feathers”, etc. This place is also a training ground for mountain-climbers.

Krasnoyarsk Hydropower Plant

The damming of the Yenisei, one of the mightiest rivers of Russia, for the purpose of building a hydropower plant during the 1960s became a spectacular event. The commissioning of the Krasnoyarsk hydropower plant, the USSR's biggest at the time (its capacity was 6,000 MVt) in 1972 was a prologue for building a more powerful, Sayano-Sushenskoye hydropower plant, also on the Yenisei.



by  Olga Khvostunova, Vladimir Gendlin

All the Article in Russian as of Oct. 31, 2005

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