Economy of the Republic

Republic of North Ossetia-Alania

Republic of North Ossetia-Alania is located in the North Caucasus Federal District of the Russian Federation and occupies about 8 (0.05% of the Russian Federation), 48 percent of which accounts for its mountainous part.

The population is 704.0 thousand people. There are more than 100 nationalities living in the Republic. The Republic is one of the most densely populated entities of Russia. Its capital is Vladikavkaz (325.5 thous. people).

Development Priorities of the Republic of North Ossetia-Alania

Republic of North Ossetia-Alania is developing in accordance with the objectives and priorities of the long-term development strategy of social-economic and investment sectors, which reflects the development of key sectors of the republican economy: tourism and recreation cluster, transport and logistics complex (development of road infrastructure, logistics, air, rail and road transport), development of the power complex (creation of new electricity generating facilities, development of the oil industry and alternative sources of energy), development of construction materials production, key industries and the agricultural sector.

Environmental conditions in the republic allow successful development of many industries, while subsurface resources rich in various minerals create necessary prerequisites for that.

Of practical interest are the identified and explored deposits of limestone, marl, dolomite, marble and basalt. Inert construction materials (clay, sand and gravel) are widely used. There are oil deposits with prospective resources of about 13.4 million tons in the republic.

In the industrial sector, there operate 60 large and medium-sized enterprises for mining ores, repair of railway rolling stock, production of lead, zinc, tungsten, copper rolled products, hard alloys, building materials, glass, electrical equipment, packaging, furniture, knitwear and food products. The share of individual product types is rather significant in the national scale. For example, the republic produces 39% of Russia’s zinc, 46% of lead, nearly 38% of tungsten, 15% of hard alloy metal, 32 % of cadmium, one third of electrocontact material and about half of curtain fabric.

Tourism and recreation

There are numerous year-round touristic places and mounteneering camps in the mountaineous parts of the republic. There are wide prospects for the development of ski tourism and recreational industry as well.

More than 300 healing mineral and fresh water springs which commercial yield exceeds 15 thous. cub m per day are situated in the republic. Mineral waters of Ossetia have unique balneologic properties, chemical and gas composition that altogether provide perfect conditions for development of local balneologic services.

Nine most promising investment areas relevant for regular deployment and development have been identified in the republican recreational and touristic sector, in particular: Mamison, Nara-Zakkskiy, Tsey, Tamisk-Biragzang, Kurtat, Digorian, Cora-Ursdon, Kazbek and Vladikavkaz investment sites.

Construction of the year-round recreational sanatorium “Mamison” has been included into the touristic-recreational cluster of the South Caucasus Federal District. Special economic zone for development of the touristic-recreational cluster has been created on the territory of Alagirskiy and Irafskiy districts of the republic.

Development of the power complex

Republic of North Ossetia-Alania has significant hydropower potential of numerous mountain rivers that amounts to 5.2 billion kWh; its capacities are now used by eight hydroelectric power plants. Taking into consideration that only 20% of the local power demand is covered by the republic’s own energy sources, hydropower industry shows high potential for the future development. Due to this special place is occupied by construction and commissioning of new hydropower stations.

In 2009 OJSC “RusGydro” and the group of companies “Mercury” commissioned 2 hydropower stations in the republic. Currently Zaramag hydropower stations with the capacity of 352 MW (Phase 1) and annual output of 812 mln kWh are under construction, and their commissioning is planned for 2018. Further construction of about 25 small hydropower stations is planned on the mountain rivers of the republic. Five magor rivers of the republic namely Terek, Ardon, Urukh, Fiagdon and Gizeldon rivers comprise 72% of the republican hydro power capacity. According to the Russian Academy of Sciences there are 47 rivers having hydro power potential on the territory of the republic.

As a result of implementation of the electric power facilities construction projects, the republic will be fully supplied with self-generated electricity.

Development of the Agricultural Sector

The main directions of the agricultural sector development are: growing and processing of crops and production of maize starch, molasses, glucose, dextrin, corn oil, processing and canning of fruits and vegetables, development of animal husbandry, poultry farming, milk processing, production of a wide range of dairy products, mineral and fresh water production and bottling.

The main objective is to provide the population with high-quality organic home manufactured food products through implementation of advanced technologies in existing businesses and creation of modern agricultural holdings.

A number of investement projects are being implemented and planned for realization in the sector of livestock farming and diary husbandry, milk production and its processing into a wide range of products, poultry farming, grain, fruit and vegetables processing and storage.

The existing production capacity of operating companies, as well as the companies that are anticipated to be established in the food-processing sector, allow forming a high-efficiency territorial cluster.

Creation of the construction materials manufacturing cluster

There are factories in the construction materials industry in the Republic of North Ossetia-Alania that produce bricks, concrete, lime, reinforced concrete structures, sand-gravel mixtures and metal structures. In recent years, production of steel tile, reinforced foamed concrete, expanded polystyrene concrete, decorative wall stone, highly-artistic metal products made with the use of the “cold forging” technology and permanent EPS formwork for monolithic constructions were developed.

The projects for the production of high quality bricks, development of boulder-gravel deposits, organization of the full cycle of production of high-tech, resource-saving construction materials are being implemented. The gravel produced in the republic is supplied to the construction sites of the Olympic facilities in Sochi.

The Republic has significant stock of various construction meterials:

sand and gravel composites – 250 mln. cub. m at 33 deposits and sites;

mortar sands of various commercial categories – 16265 thous. cub. m and 27290 thous. cub. m of C2 category;

brick tile – 16 deposits and sites. Moreover, there are 40 types of clay referring to the different genetic types which have been tested in production of drilling fluids, ceramics and pottery;

dolomites- 228076 thous. ton of А+В+С categories and 4231 thous. ton of C2 category reaching 70,7% of the crude dolomite material for glass industry and 10,2 % of Russia’s national dolomite stock;

limestones - 105871 thous. ton of А+В+С1 categories (8,3 % of Russia’s national carbon-bearing raw stock);

marls – 95598 thous. ton of А+В+С1 categories;

bentonite clays - 50 mln. ton of Р1+Р2 category and 10 mln. ton of C2 category;

quartz sands – 8,5 mln. cub. m of the explored stock and more than 65 mln. ton of prospective resources;

facing stones– 2953 thous. cub. m of А+В+С categories;

and there are also promising deposits of healing stone.

More than 70% of Russia’s national stock of dolomites is concentrated in the republic. OJSC «Kavdolomite» provides full technological re-equipment and production expansion including special-purpose machines; crushing and screening equipment; construction, mastering and commissioning of facilities for grinding of sledged dolomite, railroad construction and launch of the diesel loco. The overall production efficiency upon reaching the rated capacity level will come to 882 thous. ton per year.

Implementation of projects related to construction of a lime factory, brick factories, crushed granite and quality sands, basalt fibers and products is considered rather promising.

Large-scale development of the sector will reduce the deficiency of the mentioned production and allow their spead to the neighbouring regions and the South Caucasus Region.

Innovation potential

Republic of North Ossetia-Alania has high scientific and technical potential, highly qualified scientific, engineering personnel and labour forces ensuring technological upgrading of the key industries. Implementation of the innovation policy is carried out comprehensively through combined efforts of the scientists and innovators working in 9 higher education institutions (5 state and 4 non-state universities), 3 branches of higher education institutions and 6 research institutes.

Such institutions as Vladikavkaz Scientific Center of the Russian Academy of Sciences and the Government of the Republic of North Ossetia-Alania, International Science and Technology Innovation Center “Sustainable Development of Mountain Areas” of the North Caucasus Mining and Metallurgical Institute (State Technical University) under UNESCO auspices, Center for Collective Use “Physics and Technology of Nanostructures” on the basis of the North Ossetian State University and the Center for Technologies Transfer are working in the Republic.

Innovative scientific-industrial enterprise LLC “Vladikavkaz Technological Center “Baspik” carries out research, manufacturing and supply of high-tech electronic products and technologies focusing on microchannel plates (MCP) of 2nd – 4th generation, fiber-optic plates, MCP and FOP detectors, microchannel electric-optical converters of the 2nd generation and night vision devices.

The leading Russian scientific school in the field of microchannel plates research has been established on the basis of LLC “VTC Baspik”. The enterprise has developed, mastered and tested 12 types of unique position-sensitive detectors for aerospace industry, nuclear industry, experimental nuclear physics. Currently these products are available in foreign markets (Germany, France, Switzerland, United States).

LLC «Vladikavkaz Technological Centre «Baspik» in partership with OJSC «Screen-Optic Systems» Novosibirsk implement investment projects aimed at production of optic-electronic components, dual-application devices and equipment, including nano-microelectronics products such as microchannel and fiber-optic plates of the new generation in Vladikavkaz. In addition to this, the company together with OJSC «Katod» Novosibirsk carries out projects in the filed of extensive production of photoelectric devices and equipment, products of micro-nano-photo-electronics.

A number of small enterprises are involved in innovative research implementing grant projects with the support of the Fund for the promotion of development of small business in the sphere of science and technology.

Transport and logistics complex

Location of the Republic of North Ossetia-Alania in the southern borders of the Russian Federation is strategically advantageous, being in the center of the land transport links between Europe and the Middle East, which involves development of a modern transport and logistics sector the Republic of North Ossetia-Alania that includes two federal highways ​​across the Main Caucasian Ridge that are equipped with up-to-date automobile border checkpoints, extensive rail and road system, international airport “Vladikavkaz” and equipped transport terminals.

Use of the republican transit potential to the full extent will contribute to the development of trade, financial system, transport and logistic activities. Development of transport corridors across the territory of the republic will facilitate budgetary efficiency, establishment of the appropriate infrastructure and will open wide opportunities for the economy and trade. Consolidation of logistic capacities, in particular road, railway and air transportation facilities, will contribute to creation of regular transit traffic and wholesale trade of industrial, agricultural, construction material and FP production.

It is planned to create and develop inter-regional multimodal logistic complex in the Republic of North Ossetia-Alania, providing for the industrial manufacturing, polymer and packaging production, assembly production and processing of imported cargos, availability of warehouses, outdoor container platforms, vehicle fleet and service companies, handling systems and customs terminals, office premises, hotels, public catering.

Currently construction of the transport-logistic complex is already ongoing with the support of private investors at the border region of the Republic.

Creation of a modern, well-protected from the elements, year-round, comfortable transport corridor in the southern borderland of Russia will provide Asian and Middle Eastern partners more efficient transit to the European countries with a 4-5 times increase in the volume of transportation of goods, as assumed by the international freight forwarding companies.

Industrial cluster

Significant resources of various minerals create prerequisites for the development of the industrial clusters in the Republic of North Ossetia-Alania.

The largest zinc deposits such as Dzhimidonskiy, Kadat-Hampaldonskiy, Kakadur-Kanikomskiy are located in the Republic of North Ossetia-Alania. All lead deposits in the North Caucasus Federal District are situated in the Republic of North Ossetia-Alania. Most of the resources are concentrated in Dzhimidonskiy ore field.

There are reserves of non-ferrous, precious and rare metals (copper, tungsten, molybdenum, lead, zinc, cobalt, gold, silver, platinoids, rhenium and others) on the territory of the Republic of North Ossetia-Alania

Among the most successfull and well developed metallurgic plants which provide the basis for the investment development are:

“Electrozinc” plant – one of the largest plants of non-ferrous metal industry in Russia located in the Promishlenniy intraurban district of Vladikavkaz that is also part of the Ural Mining and Metallurgical Company;

OJSC “Pobedit” – production of heavy and hard tungsten-base and molybdenum-base alloys;

OJSC “Magnit” – production of magnets and magnet systems, sendust cores and steel art casting;

OJSC “Keton” – production of ultra-thin capacitor foils;

OJSC “Kron” – production of special materials, polymer pipes, adhesive compounds;

OJSC “Iristonsteklo” – production of glass containers.

Electric equipment industry includes enterprises which are strategically important for the investment development:

OJSC “Elektrokontaktor” (production of low and high tension electric contactors);

FSUE “Gran”;

OJSC “NPO-Binom”;

FSUE “Alagirsky zavod soprotivleniy”/FSUE «Alagirsky resistors plant» (production of resistors).

OJSC “Raduga” that implements the project “Technical re-equipment of the enterprise allowing to produce Doppler weather radars in accordance with the modern trends of technological development.”

It is planned to launch the investment project “Production of glass of the 1st hydrolytic class for medical purposes, quartz glass, optical fiber and foam glass in Vladikavkaz” worth 8.5 billion rubles.

CJSC “Rokos” is the flagship of the furniture manufacturing industry in the republic. It is a diversified company specializing in the production of household furniture, furniture for public spaces, doors, window frames, staircases, decorative panels and other interior design items. The machinery of the enterprise is represented by manufacturers from Italy, Germany and Spain.

Development of the cluster involves upgrading of industrial facilities, development and introduction of new environmental friendly and resource-saving production methods using closed technological cycle approach.

Social and cultural development

North Ossetia is rightfully considered the cultural and ethnographic center in the North Caucasus. There is the oldest in the North Caucasus Russian Drama Theatre named after Eugeniy Vakhtangov opened in 1871, the North Ossetian State Drama Theatre, the State Opera and Ballet Theatre, the State Philharmonic in the Republic.

It is planned to create the North Caucasus Center for Contemporary Art in Vladikavkaz, to reconstruct and develop the National Museum of the Republic of North Ossetia-Alania.

Outstanding Ossetian figures are: Grigory Tokaty – the world famous scientist in the field of rocket dynamics and astronautics, one of the founders of the International Space Station; Valery Gergiev - an outstanding conductor of our time, Art Director of the Mariinsky Theatre; Valery Gazzaev - Honored Coach of Russia, who was the coach of the Russian football team, three times led Russian football teams to the major league champion titles, including Ossetian club “Spartak-Alania” in 1995, and won the UEFA Cup with CSKA in 2005.

Sport in North Ossetia is part of the common culture and the page in the life of the Ossetian nation. Ossetian athletes won 42 Olympic medals, including 16 gold ones, and more than 60 gold medals at the world championships in various Olympic disciplines.

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