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General social and economical indices for the Primorsky Krai economy in 1997 are on Pages 28-29. One of the results of the development of a "new" market economy was a jump in the quantity of business companies. There are 38,000 small businesses in the K rai, eight times more than in 1990. 71% of them are private businesses. Most of the companies are located in cities; the number of rural enterprises is dwindling. 472 farmers quit the agricultural business in 1997.
The Primorsky Headquarters of the State Anti-Monopolistic Committee recently submitted a draft law, "On regulation of natural monopolies in the local markets of Primorsky Krai," for approval to the Krai Duma. In accordance to the draft, the regulation must be implemented by a new institution, Regulating Commission, which will control prices and tariffs. It would be responsible for all decisions, as opposed to the current Regional Energetic Commission, a public organization.
Ussyriisky Balsam, the leading distillery producer in the Krai, has increased its production by 30% in 1997, compared 1996. The company plans to double its volume of production up to 1.8 million gal of alcohol when its new department is opened this year .
The leader of the Krai's dairy processing industry, the Nakhodka Dairy factory, has doubled its profit this past year gaining 82.9 billion "old" rubles. The increase was achieved due to an increase in ice-cream production (925 tons of ice-cream in 1997, compared to 486 tons in 1996).
The Khasan Sea Commercial Port experienced a decrease in production. In 1997, the port processed only 73,000 tons of cargo, 8% of the 1996 level. The only item increased was the transit of wood chips from China.
The "Conditioner War" between the largest vendors of conditioners recently entered a new stage. The wave of overwhelmed regional markets has reduced prices by 20%, compared to 5%-10% in the saturated Moscow market. Gorovoy, Director of the EuroClimate co mpany (Moscow) believes that if the damping campaign continues, many regional dealers will run out of funds for further development of their business and be unable to purchase new consignments.
A new federal law on insurance went into effect on January 5, 1998. Its volume is not big - there are only six chapters, but some of them are absolutely new. In accordance with the new law, only those companies licensed for insurance activity in the Ru ssian Federation can insurance the property of companies and individuals, - residents of Russia, excluding agreements for re-insurance and mutual insurance. Previously, one could insurance one's life or property before a foreign trip, and it was not cons idered an infringement of the law. The law also states that a company's registered capital must now be no less than 25,000 times the minimum monthly wage (MMW) - 2 million "new" rubles, or $333,000 - to have a license for the insurance business in Russ ia. Moreover, capital must be presented in money, not in bills, securities, letters of credit or intellectual property. Those who want to insure both personal lives and estate must have at least 35,000 times the MMW registered capital, while those who deal with re-insurance must have 50,000 times the MMW capital. An insurer also cannot now refuse to pay a bonus if an insurance claim is directly caused by a crime, or if the insured property is confiscated in accordance with a court's decision, or if its client has been recognized as not sober. Thus, a criminal injured during the committing of a crime, can now expect a insurance premium.
An opportunity to participate in the development and construction on Sakhalin, where the international oil projects Sakhalin-1 and Sakhalin-2 have been held, gives Primorsky companies a chance to incorporate. A new association, Bius, includes several hy dro-construction companies, several scientific institutes of the Russian Academy of Sciences (Institute of Marine Biology, Institute of Geography, Far Eastern Geological Expedition, the Far Eastern Division of the Russian Engineer Academy etc.) and desi gning and construction companies. The problem is still that Primorian companies are not properly involved in the Sakhalin projects.
In accordance with Premier Nemtsov's program to prepare 5,000 management personnel for state enterprises, 78 young specialists may be picked from Primorsky Krai. They will improve their skills at three universities in Vladivostok for six months, and the n each of them will be granted a 1-4 month training course abroad, in 14 countries including the USA, Japan, South Korea and Spain, which have agreed to pay all expenses. The pick will be held by the Krai administration. Applicants must be under 35, wit h higher education, managing experience, good foreign language (English is preferential) and a readiness for further work at the state enterprises.
The Committee for Municipal Property will auction several buildings off in February, among which are Bodrost, a swimming complex, which was not sold this past year (the starting price is 1.4 million rubles), and two former kindergardens, for 29 and 59 mi llion rubles. Two municipal markets, the 1st River market and another market on the Komarova Street, will also be set for auction soon.
The Asian-Pacific School has recently held a discussion between students of Vladivostok high schools and several advertising agencies, as representatives of one of the XXI century's most promising occupations. The school is holding a project "The Prof ession of the XXI Century"; it has already presented to children such "XXI's favourites" as managers, lawyers and image-makers, and is planning to add journalists, teachers and bankers in the near future.
Black Rose, a private company which produces meat semi-finished and bakery products, is planning to produce dairy products with soya protein. They have already installed equipment and hired personnel, but still have problems with packaging; at this point , they would appreciate any offer.