Q: How do you see the position of the district of Tuapse within the economy of the Krasnodar region and of Russia as a whole? In which areas can Tuapse carve out a niche for itself?

Tuapse is positioned in the Krasnodar region as an accessible tourism resort with a subtropical climate and with a well-developed transport and tourist infrastructure. Also it has the second largest seaport on the Black Sea.

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Our region is located in the zone of the preparations for the Winter Olympic and Paralympic Games in 2014 in Sochi, so there will be significant improvements in its infrastructure, telecommunications, roads and energy thanks to federal funding. This will allow investors to reduce costs in the future and we will see improvements in the investment and business attractiveness of the area. Preparations for the Olympics makes a positive impact on employment, living standards and creates new kinds of business.

Increasing interest because of the Olympics also pushes up demand for hotel services. In accordance with the development strategy of Tuapse district, we plan in 2020 to construct hundreds of new hotel rooms.

Q: What is the current state of the real-estate market in Tuapse, and does this present any interesting opportunities for property investors?

For the moment, Tuapse is a resort area, which has very good potential for investment in commercial properties with low risk. This is confirmed by the presence of a developed infrastructure, competitive prices and growing demand for tourist services and residential real estate in the area, and also the relatively low cost per square metre for the construction of hotel and cottage accommodation.

The volume of housing set in operation in 2009 amounted to 75,500 square metres. In 2010, it amounted to 90,500 square metres -- an increase of 19.8%.

In 2010 we signed 10 investment agreements for the construction of tourism complexes and housing worth a total of €477m.

Q: Which special projects and developments might be of interest for delegates at Mipim?

The territory of Tuapse district is perfect for development of a year-round mountain recreational complex. Investing in the region allows the possibility of combining both a ski resort and the Black Sea coast, thus recouping investments quickly, and helping to turn the Tuapse district into one of the most popular resorts of the Krasnodar region.

We invite investors to consider a few special investment projects. These include a mountain-recreation complex called Seven-Headed Mount for winter and summer activities that can accommodate 12,000 people; Costa Rusa, a European-style spa hotel complex; Alpico, which will recreate Alpine villages and other attractions; and construction of a southern wing of the cargo port of Tuapse. The port project involves the construction of three specialised handling systems with a total turnover of 7 million tonnes a year for reception, processing, interim storage and export shipment of grain cargoes, and a wide range of metals. Its total value is more than €120m and it will provide employment for 314 people.