Economy of Sevastopol

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The results of social and economic development of the city of Sevastopol
for January - September 2016


Industrial production

Industrial production index reached 125.6% as a result of the operation of industrial enterprises in the city for January - September 2016 compared with the corresponding period of 2015.

The volume of shipped goods of own production, works performed and services for the "net" types of economic activities of large and medium-sized enterprises at current prices amounted to:

- in processing industries – 6,150.9 mln roubles, that is by 9.3% more compared to the corresponding period of 2015, including production of food products, beverages and tobacco - 3,511.6 mln roubles (increase by 31.8%); production of electrical, electronic and optical equipment - 1,083.8 mln roubles (increase by 64.7%); metallurgical production and production of finished metal products;

- in the production and distribution of electricity, gas and water - 5,634.1 mln roubles (by 48.5% compared to the corresponding period of 2015), including generation, transmission and distribution of electricity - 3,613.0 mln roubles. (increase by 54.2%).

As of 01.09.2016, the number of industrial enterprises amounted to 589 (compared with 01.10.2015 - increase by 60), including:

- 20 enterprises of mining industry;

- 121 shipbuilding and shiprepairing enterprises;

- 124 enterprises for the production of construction materials;

- 59 enterprises of instrument engineering and radio electronics;

- 63 enterprises of metalworking;

- 25 enterprises of light industry;

- 113 enterprises of other industries.

As of 07.01.2016, the total amount of investments into production amounted to 17.2 mln roubles: for rearmament and modernization - 17.1 mln roubles, for certification and training of personnel - 0.1 mln roubles.

In 2016, the State programme of development of Sevastopol industry for the years 2015-2020 (Decree of the Sevastopol Government of 26.03.2015 No 220-PP as amended) continues to operate. The planned volume of the Programme budget allocations in 2016 amounts to 3.0 bln roubles, including 476.3 mln roubles - funds from the federal budget; 12.2 mln roubles - budget of the city of Sevastopol; 2.5 bln roubles - extra-budgetary funds.

Import substitution. Products presented for 31 technological areas are included in three sectoral plans in the field of shipbuilding and ship repair, radio electronics and oil and gas engineering, approved by orders of Industry and Trade Ministry of Russia.

During January - September 2016 the production of products has been mastered for 3 investment projects included in the regional plan for import substitution of the city of Sevastopol.

Integration of enterprises in Sevastopol (including state ones) into the vertically integrated structures of the Russian Federation.

In order to integrate defense enterprises of the city of Sevastopol into the vertically integrated structures three "road maps" were approved regarding SUE "Sevastopol Marine Plant named after Sergo Ordzhonikidze" and JSC "Zvezdochka"; SUE "Sevastopol aviation enterprise" and JSC "Helicopters of Russia"; LLC "SP Era" and JSC "SPA "Arctica".

Enterprises of Sevastopol are involved in implementing infrastructure project in the Crimea (Kerch bridge construction): JSC "Sevastopol plant of concrete products No 1" (supply of concrete slabs); JSC "Balaklava Mine named after A.M. Gorky" (supply of crushed stone material); Branch in the city of Sevastopol "Zvezdochka" (construction of 4 pontoons for transport complex); LLC "Techflot" (regularly dock repairs of floating cranes).

Industrial Park (IP). The work on establishment of the IP is organized in accordance with the Federal target programme "Social and economic development of the Republic of Crimea and the city of Sevastopol till 2020".

On 18.07.2016 layout of the land plot of 66.2 ha was approved. Taking into account the previously allocated and formed land plot with area of 6.0 ha the total area of the multi-loop land plot near the "Sevastopol freight" railway station allocated for the industrial park is 72.2 ha.

In July - August 2016 tender documentation was prepared for the development of concept for establishment of the industrial park within the state programme of the city of Sevastopol "Development of investment activity in the city of Sevastopol for the years 2015-2017". Holding an open tender is scheduled for late 2016.

13 potential IP residents have filed applications indicating the limit resources through the "single window" in accordance with the Rules for consideration of applications of the investors and support of investment projects under the principle of "single window" (Resolution of the Sevastopol Government of 05.03.2015 No 138-PP).

Investment projects are considered at Investment Council of the city of Sevastopol and listed in the register of IP residents. Creating 915 jobs is planned, the investment amount - 2,461.7 mln roubles. Annual tax payments to the local budget after 5 years will amount to 146.2 mln roubles.

For a directory of investment sites of the city of Sevastopol 22 investment sites are selected (land plots, capital construction facilities, property complexes) that are available for review on the investment portal of Sevastopol.

Creation and development of Sevastopol cluster of instrument engineering and programmable electronics (SCIE&PE). The purpose of instrument engineering cluster is creating of conditions for advancing development of the industry in Sevastopol on the basis of the existing innovation and instrument engineering competences (educational, scientific, industrial, testing). Planned target indicator is 16 bln roubles of production by 2020.

Technopark in the field of high technologies and the development of the IT industry. TP concept means the creation of complex including all types of infrastructure elements necessary for the commercialization of research: laboratories, individual and open-space offices, conference rooms, business incubator and co-working centers, accelerator, technology transfer center, data processing center (data center), services companies with legal, marketing, engineering specialization, representative offices and R&D centers of major companies - potential customers of innovations, etc.

The specialization of the technopark will be instrument engineering and information and telecommunication technologies. In the structure of the technopark by the areas of specialization 40% falls to the instrument engineering, radio equipment, electronics, electrophysics, robotics; IT - 40%; other, including energy, transport, machine building, shipbuilding and ship repair - 20%.



Agricultural enterprises of the city of Sevastopol specialize in growing grapes, fruits of pomaceous and stone crops, primary winemaking.

The total area of agricultural lands is 26.2 ths ha. Agricultural enterprises occupy 16.1 ths ha of agricultural lands, of which 9.7 ths ha occupied by perennial plants.

In January - September 2016 winemaking enterprises produced 480.4 ths dal of sparkling wines and champagnes; 566.9 ths dal of canteen wines.

As of 01.10.2016 laying of perennial fruit and berry bush plantations, nurseries of fruit and berry crops, vineyards amounted to 73.25 ha.

As of 11.10.2016 13.9 tonnes of grapes are harvested from an area of 3,960.4 ha, the yield was 35.05 dt/ha; fruit crops - 1.07 ths tonnes from an area of 453.8 ha, the yield was 23.56 decitons per hectare.

Fishery. The total volume of catches of aquatic biological resources as of 01.10.2016 in the Azov and Black Sea basin by fishermen of Sevastopol amounted to 27.7 ths tonnes, which is 9.6% more than in the comparable period of 2015.

Catch of the ABR is carried out by 69 vessels.

As of 01.10.2016, 32.6 mln conventional cans have been produced. The major volume of production comes from two fish processing plants of LLC "FCC "Aquamarine".

The total volume of production of fish commercial products (excluding cans, taking into account the catch) for the 3rd quarter amounted to 66.9 ths tonnes.



In January - September 2016 the volume of work performed by all economic entities of the city by the type of activity "Construction" amounted to 3,092.5 bln roubles, which is 68.8% more than in the similar period of 2015.

Organizations and enterprises have put into operation 26 apartment buildings with total area of 151.6 ths sq.m.; 2,037 apartments with a total area of 115.6 ths sq.m. (189.9% to the corresponding period of 2015).

The average cost of construction of 1 sq. meter of total area of detached residential buildings of apartment type without extensions, add-in and built-in premises in January-September amounted to 45.0 ths roubles.


Transport and communications

As of 01.01.2016 the length of the network of public roads was 979.0 km. 45 settlements located within the city of Sevastopol are provided with year-round connection to the public road network. The length of roads within the boundaries of settlements is 722.9 kilometers.

Number of transport enterprises engaged in transportation of passengers is 15, from them the largest are SUES "Sevelectroautotrans named after A.S. Krupoderov", SUE "Sevastopol sea port", SUE of the city of Sevastopol "Cross-sectoral enterprise of industrial railway transport". Daily 614 units of vehicles carry out passenger transportations on 127 road routes, 92 trolleybus on 15 routes; 7 boats on 4 routes.

For the purpose of fleet renewal and replenishment of passenger transport, the city participates in the implementation of the Programme of non-profit leasing of urban passenger transport, running on gas fuel, as well as of on-land electric transport in the territory of the Crimean Federal District (Order of the Russian Federation Government of 30.12.2014 No 277-P) at the expenses of benefit leasing vehicles.

For SUE CS "Sevelectroautotrans named after A.S. Krupoderov" procurement of 78 trolleys is organized, including 34 trolleys with increased self-contained course for 0.5 km and 44 trolleys with increased self-contained course of up to 60 kilometers.

For SUE CS "Sevautotrans" 90 buses are purchased (50 small class buses of urban connection, 40 small class buses of suburban connection).

Communication. In order to ensure the interagency informational interaction in the provision of public and municipal services and the fulfillment of state and municipal functions in electronic format since 01.07.2016 regional system of interagency electronic interaction (RSIEI) is functioning, the possibility is implemented to receive 25 regional public services.

Regional portal of public services in the city of Sevastopol is available in the Internet at GOSUSLUGI92.RU or ГОСУСЛУГИ92.РФ in test mode.

The proportion of citizens receiving state and municipal services in electronic form is 15.2% of the total population received state and municipal services (as of 01.01.2016 - less than 4%).

Basic infrastructure of RNIS has been created (800 GLONASS devices are purchased, 20 workplaces of system dispatchers, server hardware). More than 400 units of vehicles are equipped with the devices, including 124 trolleys of SUES "Sevelectrotrans", 60 official vehicles, 25 units of utility transport, 89 units of the scope of road and forestry, 13 school buses, 20 boats.

High-speed data transfer services in 3G standard in the city are offered by three operators, creating competition in the market and having a positive impact on the quality and cost of the services provided.


International trade

Foreign trade turnover of the city of Sevastopol by counterparty countries of FEA participants registered in the territorial tax authorities located in the activity region of the federal city of Sevastopol and performed customs operations with the goods both in the activity region of Sevastopol customs, and in the activity region of other regional custom office or customs directly subordinated to FCS of Russia, taking into account the mutual trade, in January - September 2016 amounted to 29.4 mln US dollars. The negative trade balance amounted to 22.1 mln US dollars.

Export share in the foreign trade turnover amounted to 12.4% (3.6 mln US dollars), import - 87.6% (25.8 mln US dollars).

70.3% of the total goods export volume was exported to the CIS countries, including to Ukraine - 46.6%, Belarus - 12.2%, Kazakhstan -7.5%. Exports share to non-CIS countries amounted to 29.7% (to Israel - 16.7%, China 11.0%, Turkey - 1.4%).

Goods import from the CIS countries amounted to 8.6% of total import volume, including from Belarus - 6.5%, Ukraine - 1,9%. 91.4% of the goods were imported from the non-CIS countries, including from China - 35.6%, Ecuador - 15, 1%, Turkey - 6.9%, India - 4.6%, Mexico - 3.3%.


Investments in fixed assets

In January - September 2016 enterprises and organizations (including investments of all economic entities, taking into account adjustments for informal activities) disbursed 6,912.2 mln roubles of investments in fixed assets (120.8%  to the comparable period of 2015).

The ajor volume of investments in fixed assets (including investments of all economic entities, taking into account adjustments for informal activities) was aimed at the purchase of machinery, equipment and vehicles, industrial and household inventory - 3,438.8 mln roubles. (49.8%), for housing - 410.0 mln roubles. (5.9%), for buildings (except residential) and constructions - 1,844.6 mln roubles. (26.7%). Other investments amounted to 1,218.8 mln roubles. (17.6%).

The main sources of financing investments in fixed assets by organizations that are not small business enterprises were raised funds amounted to - 71.2%. The share of budget funds in the total amount of investments for the reporting period amounted to 67.5%, including the federal budget funds - 48.9%, funds from the budget of the city of Sevastopol - 18.6%.

With the purpose of further development of investment activity for the years 2017-2020 the state programme of the city of Sevastopol "Development of investment activity in the city of Sevastopol for the years 2015-2017" was updated and approved by the Resolution of the Sevastopol Government of 24.10.2016 No 1005-PP. 


Consumer prices

In September 2016 CPI in relation to the December 2015 was 104.9% (for the Russian Federation - 104.06%), including for food products - 101.5%, non-food products - 103.0%, services - 117.5% (for the Russian Federation, respectively - 102.43; 105.20; 104.84 per cent).

Basic consumer price index excluding changes in prices of certain goods, subject to the influence of factors of an administrative or seasonal nature, in September 2016 in relation to the previous month amounted to 100.7% (in September 2015 - 100.8%).

In order to curb the growth of consumer prices the Memorandum of Understanding was extended between the Sevastopol Government, producers of food products and the entities of retail trade system, signed on 21.05.2015. The list includes 45 food items by 29 positions, including meat, cereals, butter, flour, dairy products and vegetables. The minimum (0%) margin is set for the film-coated milk with fat content up to 3.2% and pasta; the maximum (15%) - for the vegetables.


Banking system

As of 01.10.2016 the banking sector of the city is represented by 137 banking institutions (excluding credit institutions with revoked licenses), including 2 independent credit institutions, 2 branches, 133 structural units of banks.

Payment infrastructure for retail payments in the city is formed by 316 ATMs and 2049 POS-terminals. The indicator of supportability to population of the city with the payment infrastructure: 75.6 ATMs and 490.2 POS-terminals per 100 thousand city inhabitants.

Supportability with self-service devices in the city of Sevastopol as of 01.10.2016 as a percentage to average data of supportability with devices per 100 thousand inhabitants of the Russian Federation as a whole, was as follows: ATMs - 52.8% (including payment terminals - 78.7%), POS-terminals - 44.9%.

As of 01.10.2016, the number of payment terminals was 155 units.

Issue and maintenance of cards of payment system "Mir" in the territory of the city of Sevastopol is carried out by RNCB Bank (PJSC), JSC "AB Russia", JSC "Genbank", JSC "Sevastopol Marine Bank."


Standards of living of the population

Incomes of the population. The subsistence level for the III quarter of 2016 per capita amounted to 9,941 roubles, including for able-bodied population - 10,657 roubles; pensioners - 8,147 roubles; children - 10,497 roubles.

With the stabilization of the economy upward trend of the subsistence level per capita will continue, it is expected that the whole for 2016 the subsistence level will be 9,551.0 roubles that is by 8.9% more than in 2015.

In January - August 2016 compared to the corresponding period of 2015 the dynamics of real income of the population amounted to 101.8%.

Wages. Since 07.01.2016, the minimum wage (MW) in the city of Sevastopol is set to the MW level in the Russian Federation and amounts to 7,500.0 roubles, in accordance with the Federal Law of the Russian Federation of 06.02.2016 No 164-FZ "On Amendments to Article 1 of the Federal Law "On the Minimum Wage".

Regional agreement on minimum wage in the city of Sevastopol approved by the decision of the Sevastopol regional tripartite commission on regulation of social and labour relationships of 11.08.2016 No 5, since 01.09.2016 for employees working in the territory of the city of Sevastopol, except for the employees of public sector organizations the minimum wage is established in amount not less than 8,000 roubles per month.

The average monthly wage of employees for a full circle of organizations in August 2016 amounted to 25,063 roubles. Compared with the level of wages for August 2016 in the Russian Federation as a whole - it is less by 29.2%.


Labour and Employment

 As the average for January - September 2016, number of the workforce aged 15 to 72 years amounted to 192.4 ths people or 63.3% of the total population of the relevant age group. Within the labour force 182.2 ths people (94.7%) are engaged in economic activities, 10.2 ths people (5.3%) did not have employment, but were actively looking for it (unemployed according to the ILO methodology).

The preferred area of application of labour remained the trade - 20.3% of the population engaged in economic activities; 19.2% - the share of population engaged in the public administration and ensuring defense; 11.4% - in health care, each one in ten was engaged in the construction sector; 8.7% fell for processing.

The unemployment rate, measured by the ILO methodology, as the average for January - September 2016 on the assessment amounted to 5.3% of the workforce and decreased by 4% in relation to the comparable period of 2015 (9.3%).

In January - September 2016 the number of citizen staying on the register in order to find suitable employment was 2.9 ths people (1.8 times less than in the comparable period of 2015). 1288 people are recognized unemployed in the prescribed manner; decrease to the corresponding period of 2015 is by 2.6 times.

The number of registered unemployed as of 01.10.2016 amounted to 363 people, or 65.3% to the same indicator in the previous year. Registered unemployment rate as of 01.10.2016 amounted to 0.18% of the workforce, being significantly less than both the national average (as of 01.10.2016 - 1.1%) and the same indicator for the city of Sevastopol as of 01.10.2015 (0.29 %). Tensions in the labour market was 0.13 persons per one declared vacancy against 0.2 as of 01.10.2015.

In January - September 2016 in the framework of fulfillment of the state programme of the city of Sevastopol "Promoting employment of population in the city of Sevastopol for the years 2015-2017" (Resolution of the Sevastopol Government of 22.12.2014 No 628) 922 citizens became employed. Other measures are implemented to promote the employment and social protection of the population.



According to preliminary estimates, as of 01.10.2016 the permanent population in Sevastopol was 425.7 ths people, and in comparison with the beginning of the year (416.3 ths people) increased by 9.4 ths people. The population in urban area amounted to 395.0 ths people, in rural area - to 30.7 ths people. Population growth was exclusively due to migration growth (9.7 ths people). The natural decline in population was 0.3 ths people.


Provision of state and municipal services

With the purpose of comprehensive and operative resolving the issues of citizens and organizations by qualified personnel, at a convenient place and time, excluding their appeal to different departments and organizations for provision of the same service the SME "Multifunctional center for provision public and municipal services in the city of Sevastopol" carries out its activity.

As of 01.10.2016 the reception and delivery of documents under the principle of "single window" is carried out by 80 windows for reception and delivery of documents in nine Multifunctional centers (3 of them - in a rural area).  The applicants are provided with the possibility to receive 32 state and municipal services.

Target indicator in accordance with Decree of the President of the Russian Federation of 07.05.2012 No 601 is 90%. Based on the recommendations of the Ministry of Economic Development "one window of the Multifunctional center per 5,000 citizens" the proportion of citizens with access to receiving public and municipal services, including in Multifunctional centers, in the city of Sevastopol is 96%. As of 01.10.2016, 184.7 ths services were granted.


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