Social and economic situation of the Municipal Formation

The Kavkazskiy District was founded in 1980. Since 2008 it has been transferred into the Municipal Formation Kavkazskiy District by joining Kropotkin urban settlement. Kropotkin is its administrative center.

The Municipal Formation Kavkazskiy District is one of the youngest in the Krasnodar Region. It is situated in the northeastern part of the Krasnodar Region, in its central natural and climatic zone. The area of the district is 122,500 hectares; the distance to the regional center is 140 km. It shares borders with the Tikhoretsk and Novopokrovskaya Districts in the northern part, the Gulkevichi District in the south, the Tbilisskaya District in the west, and the lands of the Stavropol Region in the east. The south-eastern border runs along the bed of the Kuban River.

There are 9 settlements in the district; among them: 1 urban settlement (Kropotkin) and 8 rural settlements. There are in total 28 settlements in the territory of the MF.

The average annual number of population of the district as of January 1, 2018 amounts to 122,726 people: 79,913 people of urban and 43,813 people of rural population. The population of working age amounts to 64,929 people. 43,350 people (68% of the working age population) are employed in the economy of the MF.

3.42 thousand people (7.8% of the total number of employed citizens) are employed in agricultural entities; 9.549 thousand people (21.8%) – in the wholesale and retail trade; 5.36 thousand people (12.2%) – in transport and communications entities; 5.0 thousand people (11.4%) – in industry, 6.0 thousand people (13.7%) – in the education sphere, and 5.5 thousand people (12.9%) – in health care.

1,421 enterprises, organizations and institutions of all forms of ownership operate in the territory of the Kavkazskiy District. In addition, 4,806 individual entrepreneurs work in all areas here.

The economy structure of the Kavkazskiy District is quite stable in recent years. The largest share traditionally belongs to the processing industry and agriculture. A significant share of the population is engaged in the consumer market and transportation as well.

According to the economy structure, the Kavkazskiy District is classified to a group of territories with diversified economy in the regional ranking.

The turnover of the main sectors of the economy amounted to 36,211 million rubles in 2017.

The leading role of the industrial complex belongs to the manufacturing industry. 84 enterprises are engaged in industrial activity. Enterprises engaged in the food, machinery and equipment production were the most developed. Large and medium industrial enterprises produce about 73% of the gross output of the industry. The turnover of enterprises of the industrial sector amounted to 6,870 million rubles in 2017.

The transport system of the Municipal Formation is represented by railway, road and pipeline transport; it is the most important component of the investment attractiveness of the district and the comfort of living for the population. The total length of the hard-surface roads of regional or inter-municipal significance is 244.9 km. All settlements of the Kavkazskiy District are connected by regular suburban and urban bus service with the administrative center, Kropotkin.

There is a sub-sector "transportation by pipeline" in the transport complex of the Municipal Formation. The main oil pipelines of Caspian Pipeline Consortium – Russia (CPC-R), CJSC and the pipeline "Grozny – Trudovaya" with a total length of 77 km pass through the territory of the district. Kubangazprom, LLC laid 52 km of Russia-Turkey "Blue Stream" gas pipeline. Naftatrans, CJSC, which performs the transportation of oil and oil products through oil pipelines from the railway tanks into CPC-R’s pipeline, provides up to 50% of the total volume of the industry.

Rostelecom, PJSC traditionally occupies a leading position in the telephone services. The branch of the Post of Russia FSUE and the Administration of the Federal Postal Service of the Krasnodar Region provide postal services. Mobile TeleSystems, OJSC, Vimpelcom, OJSC,  Megafon, OJSC, Telecom Eurasia, CJSC and Krasnodar Cellular Communications, OJSC provide mobile communication services in the territory of the district. United Grid Company, LLC and Rostelecom, PJSC specialize on the services of wireless and wired Internet access.

An important role in the structure of the district economy belongs to the agriculture that traditionally maintains a status of socially significant and town-forming industry.

The area of agricultural lands amounts to 96.7 thousand hectares, among which arable lands amount to 88.4 thousand hectares. 6 large agricultural producers, 54 medium-sized agricultural producers, 245 peasant farm enterprises and 17 thousand private subsidiary farms are engaged in agricultural production in the district. The estimated gross agricultural products amounted to 9,021 million rubles in 2017.

The main share in the total volume of the production – 87% – is accounted for the crop production. Legumes, sugar beet, sunflower and soybean are main cultivated plants. In 2017, agricultural enterprises cultivated: 415.9 thousand tons of grain and leguminous crops (with yield of 63.4 centners/ha), 301 thousand tons of sugar beet (with yield of 515.7 centners/ha) and 26.4 thousand tons of sunflower (with yield of 29.1 centners/ha). In value terms, the volume of the production amounted to 7,848.2 million rubles.

The volume of gross output in animal husbandry amounted to 1,172.4 million rubles that is 9.5% higher than in 2016. 8,300 tons of meat were grown, 10,800 tons of milk and 8.9 million eggs were produced in 2017. To date, there are about 7 thousand cattle stocks in agricultural enterprises of all forms of ownership.

The construction complex of the Municipal Formation includes 168 organizations and 95 individual entrepreneurs. The volume of the work performed at construction sites of the district amounted to 1,009.4 million rubles in 2017.

The consumer sector takes a prominent place and is one of the most important investment sectors in the district economy.

The retail network consists of 2,500 economic entities including 4 retail markets (with an area of 37,921.0 sq. m.), 7 supermarkets (with an area of 10,497 sq. m.), 14 shopping centers (with an area of 16,060.9 sq. m.), 916 shops (with an area of 58,374.2 sq. m.), 76 pavilions (with an area of 1,571 sq. m.), 71 kiosks, 58- chemists shops and pharmacies kiosks and 33 fuel stations.

About third of the district-wide turnover of goods, works and services is generated in the consumer’s market sphere.

Steady growth of retail trade turnover is marked in the consumer’s market sphere of the district in recent years. The turnover of branches of the consumer’s market is estimated at 13,664 million rubles in 2017. This is by 5.8% higher than in 2016. The share of large and medium-sized trade enterprises in 2017 amounted to more than 40% of the total volume, or 5,298 million rubles.

The regional indicator of providing the population with retail space in 2017 amounted to 554.6 sq.m. per 1,000 inhabitants (at a standard level of 318.9 square meters per 1,000 inhabitants).

High results were achieved through the construction of new facilities, increasing the level of service for residents of the district, expanding the range of goods on store shelves.

The work to enhance fair and market trade is continued to meet the needs of the population of the district in goods at affordable prices. Currently, 11 trade fairs including a weekend fair operate in the district. Products are sold directly from the manufacturer. The fairs’ prices are by 10-15% below the market ones.

The situation in the social sphere is stable.

The average monthly salary in the large and medium-sized enterprises in comparison with that one in 2016 increased by 6.3% and amounted to 27,023 rubles.

The average monthly salary of workers at large and medium-sized enterprises by economic activities and by industries is as follows:

• processing industries – 23,511.1 rubles;
• including food industry – 16,921.6 rubles;
• machine building – 32,088.6 rubles;
• manufacture of finished metal products – 21,152 rubles.
• construction – 22,256.9 rubles;
• wholesale and retail trade – 28,952 rubles;
• agriculture – 21,815 rubles;
• activity of land transport – 336,888.5 rubles;

The unemployment rate is 0.7% that is lower than in 2016. 2,636 people were employed in 2017 with the intermediation of the employment service that is 70.7% of the number of people applying for assistance in employment. A number of vacancies registered in the database amounted to 6,881 jobs. As of December 31, 2017, there are 576 vacancies in the district.

There are no arrears in salaries in operating enterprises and that ones in default in the district.

A program of social and economic development for further development of the district for the period until 2020 is approved and being implemented.