Economy of Sevastopol

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Results of Socio-Economic Development of Sevastopol in JanuaryJune 2017

 

Industrial production

According to operational results of industrial companies in January–June 2017 Industrial Production Index was 103.2% (for the Russian Federation – 103.5%) from the comparable period of 2016.

In manufacturing industry as a whole, output of products increased by 6.8% (production of textiles increased 6.2 times; finished metal products, except machinery and equipment – by 38.8%; computers, electronic and optical products – by 25.9%;  electrical equipment – by 28.6%, other vehicles and equipment – by 4.8%, other finished goods – 3.1 times).

The volume of shipped own-produced goods, work and services performed within “standard” lines of business of large and medium-sized businesses in current prices amounted to:

– in manufacturing industries – RUB 2585.2 mln., which is 7.3% less from the same period of 2016, including in production of: food products – RUB 754.9 mln. (13.8% increase); beverages – RUB 720.2 mln. (39.4% decrease); finished metal products, except machinery and equipment – RUB 177.0 mln. (47.3% increase); computers, electronic and optical products – RUB 8.0 mln. (40.2% increase); electrical equipment – RUB 645.8 mln. (18.3% increase); other vehicles and equipment – RUB 97.3 mln. (39.4% decrease); repair and installation of machinery and equipment – RUB 177.9 mln. (83.5% increase);

– in power supply, gas and steam; air conditioning – RUB 3828.8 mln., which is up by 12.9% year-on-year;

– in water supply; water disposal, arrangement of waste collection and disposal, pollution elimination activities – RUB 582.3 mln. (33.4% growth).

The turnover of organizations (excluding financial organizations activities), not related to small businesses, amounted to RUB 25267.0 mln.

As of July 01, 2017 the number of industrial companies (excluding companies producing food products, tobacco and beverages, as well as related to power supply, gas and steam, air conditioning, water supply, water disposal, waste collection and disposal, pollution elimination activities) was 604 (an increase by 12 compared with a year-ago period) among which:

– 23 extractive industry companies;

– 120 shipbuilding and ship repair companies;

– 87 construction materials production companies;

– 91 machinery manufacturing companies;

– 47 radio electronics and instrument making companies;

– 72 metal-working companies;

– 25 consumer goods industry companies;

– 56 chemical industry companies;

– 29 furniture companies;

– 22 wood-working companies;

– 5 aviation industry companies;

– 27 other industry companies.

According to preliminary data RUB 44.5 mln. of investments were allocated for re-equipment and upgrading of industrial production.

As a part of implementation of Sevastopol regional plan for import substitution of import substitution products are produced by 3 industrial companies. The products generated RUB 2.8 mln.

 

Agricultural sector

Agricultural businesses of the city specialize in cultivation of grapes, pomaceous and stone fruit crops, primary winemaking.

The index of production of agricultural products (in comparable prices) in January–June 2017 was 97.7%  from the comparable period of the previous year.

Sevastopol agricultural businesses use for grape plantings – 5.2 thous. hectares, among which for fruit-bearing – 4.4 thous. hectares, for gardens – 0.8 thous. hectares, among which for fruit-bearing – 0.5 thous. hectares.

Gross harvest of fruit crops (peach, apricot) amounted to 172.8 tons on the area of 125.8 hectares, average yield was 13.74 centner/ha. The total area of fruit plantings (pomaceous and stone crops) was 476.4 hectares, cut yield area was 26.4%.

Wine-making companies produced 508.6 thous. decaliters (shipped 455.3 thous. decаliters) of alcohol-containing food products. About 70% of production output goes to other regions of the Russian Federation.

Fisheries industry. As of July 01, 2017 the total catch of aquatic biological resources in the Azov-Black Sea basin by Sevastopol’s fishermen was 17.1 thous. tons.

As of June 01, 2017 processing companies, specializing in canning, released 16.1 mln. of cans.

There are 6 aquaculture companies (commercial fish rearing) operating in Sevastopol. 12 tons of live mussels, 5 tons of fish for sale were sold in January–June 2017.

 

Construction

According to preliminary data the output of work performed by all the city's business entities (including small businesses) in “Construction” activity amounted to RUB 2224.4 mln., which is up by 46.9% in comparable prices on year-on-year basis.

Output of work performed by large and medium-sized businesses (excluding small businesses) was RUB 829.0 mln., which is up by 15.0% from the comparable period of the last year.

Construction of buildings (including residential) and engineering facilities accounted for 62.0% of the total volume of activity.

16 apartment blocks with a total area of 54.7 thous. sq. m. were put into operation. 700 apartments with a total area of 38.3 thous. sq. m. were put into service. Housing commissioning is done in urban area. Private developers are not allowed to do housing commissioning.

As of July 01, 2017 the following permits were issued in the territory of Sevastopol:

– 105 – for construction, including 68 – for the construction of individual houses with a total area of ​​19.8 thous. sq. m;

– 18 – for commissioning of capital construction projects, including 8 – for apartment blocks with a total area of ​​48.5 thous. sq. m. in different parts of the city; 10 – for other capital construction projects (State Public Institution “Capital Construction” – municipal solid waste landfill in Pervomayskaya balka; 3rd stage, adjustment; child care facility in Kazachya Bay, Limited Liability Company “Teploobmen” – construction of administrative and production building, etc.).

 

Transport and Communications

Transport. As a result of inventory of public roads with hard surface in Sevastopol city, their length was 855.9 km.

Passenger turnover of transport amounted to 190357,0 thous. pass. – km (up by 36.2% from the same period of 2016), including automobile transport – 185848.6 thous. pass. – km (up by 38,0%), marine transport – 4508,4 thous. pass. – km (down by 11.6%).

The volume of cargo, transported by public transport, was 518.1 thous. tons (0.2% less than in the comparable period of 2016), including automobile transport – 183,5 thous.tons (less by 31,1%), marine transport – 334,6 thous. tons (up by 32,3%).

Passenger transportation is carried out by 16 carriers on 1300 vehicles along 129 automobile routes, 96 trolleybuses along 16 routes; 7 boats along 4 routes, a ferry.

There are 50 control units of photo and video evidence of administrative violations of traffic rules, which record the following types of violations of traffic rules: passing through the stop-line; red lights run; entering an oncoming lane; over-speeding. It is planned to install at least 118 control units: 50 – speed limit controls; 30 – controls for compliance with the rules for entering an oncoming lane; 6 – controls for compliance with the rules for the passage of railway crossings; 9 – controls for compliance with the rules of driving on the public transport lane; 23 – controls for compliance with the rules for the passage of intersections.

Communication. In order to ensure interdepartmental information interaction in providing state and municipal services and performance of state and municipal functions in an electronic format, there is a regional system of interagency electronic interaction and possibility of obtaining 25 regional state services.

The share of citizens receiving state and municipal services in electronic form is 30.3% of the total population that received such services.

 

Foreign Trade

The foreign trade turnover of Sevastopol in the countries-counterparties of foreign trade operators registered with the territorial tax authorities located in the area of  activity of the federal city of Sevastopol and having completed customs operations for the goods both in the area of activity of Sevastopol Customs and in the area of activity of another regional customs office or customs directly to the Federal Customs Service of Russia, including mutual trade data, in January–June 2017 amounted to 11,698.3 thous. US dollars (3631, 2 thous. US dollars less than in January–June 2016). Trade deficit amounted to 6928.7 thous. US dollars.

The share of exports in the foreign trade turnover was 20.4% (in January–June 2016 – 13.2%) or 2384.8 thous. US dollars, imports – 79.6% (in January–February 2016 – 86, 8%) or 13133.5 thous. US dollars.

61.9% of total exports of goods (1477.1 thous. US dollars) were exported to the CIS countries, including to Ukraine – 28.6%, Belarus – 12.0%, Kazakhstan – 19.2%, Armenia – 2.1%. The share of exports to non-CIS countries was 40.2% of the total exports of goods (907.7 thous. US dollars), including to Israel – 24,3%, New Zealand – 13,4%.

Import of goods from the CIS countries amounted to 12.4% of the total volume (1895.9 thous. US dollars) (from Belarus – 10.8%, Kazakhstan – 1.6%). 87.6% of goods (7417.6 thous. US dollars) were imported from non-CIS countries, including from China – 5,3%, Czech Republic – 3,4%, Ecuador – 17,2%, Spain – 12,8%, Italy – 9,0%, Mexico – 7,7%, Poland – 4,1%, Serbia – 4.1%, Turkey – 10.0%.

 

Capital Investment

In January–March 2017 companies and organizations (including investments from all economic entities, taking into account recalculation of informal activities) have invested RUB 2,141.2 mln. in fixed capital, which is 3.1 times more than in a year-ago period. Investments in non-financial assets by organizations not belonging to small businesses amounted to RUB 1,862.1 mln.

The main volume of capital investments was used for purchase of machinery, equipment, including household equipment and other facilities – RUB 1704.3 mln. (79.6%), for buildings (except for residential buildings) and facilities, expenses for land improvement – RUB 332.3 mln. (15.5%), residential buildings and premises – RUB 47.5 mln. (2.2%), intellectual properties – RUB 6.8 mln. (0.3%). Other investments amounted to RUB 50.3 mln. (2.4%).

The main financing sources of capital investments by organizations that do not belong to small business were raised funds – 75.1%. The share of budget funds in the total volume of investments was 73.4%, among which federal budget funds were 64.9%, from the budget of the constituent entity of the Russian Federation – 8.5%.

 

Banking system

As of July 01, 2017 banking sector of the city is represented by 106 banking institutions (excluding credit institutions with revoked licenses), including 2 independent credit institutions, 104 structural subdivisions of banks. The number of banking institutions decreased by 37 year-on-year.

The payment infrastructure for retail payments in the city includes 339 ATMs (by 15 units more than on July 01, 2016), 2,823 POS terminals (up by 987 units), 181 payment terminals (up by 43 units than on July 01, 2016). There are 79.0 ATMs per 100,000 city residents (up by 1.0 unit than as of July 01, 2016) and 658.0 POS terminals up (by 218.0 units).

As of July 01, 2017 the coverage of self-service machines in Sevastopol in percentage against average Russian machine coverage data per 100 thous. inhabitants was: ATMs – 47.5% (including payment terminals – 71.0%), POS terminals – 53.0%.

As of July 01, 2017 the amount of liabilities, which arose in the territory of Sevastopol city, amounted to RUB 29.0 bln. per 337.3 thous. contracts and increased by 30.0% compared to July 01,  2016. The loan portfolio increased by 46.5% compared to July 01,  2016 and amounted to RUB 6.3 bln. per 23,0 thous. contracts.

As of April 01, 2017 186.2 thous. of “Mir” cards were emitted. Emitents of “Mir” cards include 96 banking offices (credit organizations – AO “Sevastopol Sea Bank” and PAO Bank “VBB”, internal structural subdivisions of credit organizations of other regions – AO “AB RUSSIA”, RNKB Bank “PAO”, AO “GENBANK”, PAO “Krayinvestbank”, OAO “Bank ChBRR”). In compliance with requirements of legislation of the Russian Federation, credit institutions timely ensured 100% readiness of servicing the “Mir” cards. The banking payment infrastructure for serving “Mir” cards includes 331 ATMs and 2,586 electronic terminals.

 

Living Standards

Personal income. Minimum subsistence level for the second quarter of 2017 per capita is set at RUB 10.420, including for working-age population – RUB 11.162; pensioners – RUB 8.560; children – RUB 10.935.

Wages. The average monthly wage of employees engaged in all types of organizations in January–May 2017 was RUB 26.135, which is up by 10.8% from the comparable period of 2016. It is less by 31.2% compared with wages for the Russian Federation.

The average monthly salary of employees engaged in all types of organizations in May 2017 was RUB 25,652, which is up by 6.8% than in May 2016.

 

Labour and Employment

According to labour force surveys the average number of work force at the age of 15-72 years in April–June 2017 was 204.7 thous. people (in April–June 2016 it was 190.7 thous. people).

As part of the labour force the number of employed people was 196,0 thous. people, which is up by 15,6 thous. from the comparable period of 2016. The number of unemployed people (in accordance with the ILO methodology) decreased by 1.8 thous. from the same period of 2016 to 8.6 thous.

Labour force participation rate was 64.7%, employment rate – 62.0%, unemployment rate – 4.2%.

As of July 01, 2017 513 people were dismissed or 25.0% of the total number of employees who had been warned about the job cut. There are 910 employees under the threat of release. 754 people worked part-time (part-time working day/week), 47 employees were in a break due to the employer's fault.

In January–June of 2017 Sevastopol employment offices registered 5078 applications for public employment services, among which 1603 persons applied for assistance in finding a suitable job (up by 33 people from the comparable period of 2016). According to the procedures 610 people were found unemployed (559 people in a year-ago period).

As of July 01, 2017 the number of citizens registered for finding a suitable job was 416 people (390 people as of July 01, 2016). As of July 01, 2017 registered unemployment rate was 0.22% of the number of labour force (as of July 1, 2016 – 0.20%). Labour market strains were 0.15 people per a vacancy announced (as of July 01, 2016 – 0.13).

 

Demography

Preliminary estimates for the number of resident population as of July 01, 2017 was 432.2 thous. people and increased by 3.4 thous. compared to January 01, 2017. The population in urban areas is 401.5 thous. people, in rural areas – 30.7 thous. people. The increase in the population was due to migration growth (4.0 thous. people). The natural population decline was 0.6 thous. people.

 

Provision of state and municipal services

To assist in provision of state and municipal services rendered for recipients of such services on the principle of “one contact”, there is a State Public Institution “Multifunctional Center for the Provision of State and Municipal Services in Sevastopol city”.

9 Multifunctional Centers (3 in the rural area) provide acceptance and issuance of documents for 97 state and municipal services (including 2 services involving system of interagency electronic interaction). The average waiting time in the queue is 25.42 minutes. As of July 01, 2017 112.5 thous. cases were accepted, 80.5% of them were accepted on the basis of services of Federal Service for State Registration, Cadastral Records and Cartography.

 

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