About Southern Russia
Southern Russia comprises the Southern Federal District and the North Caucasus Federal District of the Russian Federation. It is a unique region in many respects.
- At a time of globalisation, southern Russia effectively combines the advantages conferred by its geographical position, favourable climate, diverse natural and human resources, and infrastructure.
- Southern Russia has long been populated by people of different nationalities, whose lives are enriched by the region’s cultural diversity and tradition of enterprise, and who value their freedom and independence.
- With its economic diversity and high levels of entrepreneurship, the region serves as a model for the future Russian economy (Jean Lemiere, former EBRD president).
- Compared to the rest of Russia as a whole, Southern Russia is experiencing a faster rate of economic recovery, but slower growth in production costs. This makes the region more competitive. Indeed, southern Russia plays the same role in the Russian economy as do the BRICS countries in the global economy.
- Southern Russia has a strong tradition of entrepreneurship. SMEs in the region are modernising successfully on the basis of best international practice. They are demonstrating drive and commitment, an appreciation of the benefits of new technologies, and an understanding of how to access sources of funding.
- The region has considerable development potential. Salaries in southern Russia are 30-40% lower than the Russian average and five times lower than in European countries.
- In terms of labour productivity, the efficiency of production (including energy efficiency), and the time taken to implement projects, southern Russia lags three to five times behind European countries.