Ussuriysk Regional Profile

USSURIYSK (PRIMORYE) -- REGIONAL PROFILE

Summary

1. June 3, 1998, PCO Steffens and ca Dee visited Ussuriysk, Primorskiy kray to meet with local government officials and company directors. The region has some potential for U.S. exporters of food processing, restaurant, and wood processing equipment. End summary.

List of Meetings

2. On June 3, 1998, FCS staff met with:
- Aleksandr I. Kostenko, First Deputy Mayor of Ussuriysk
- Tamara A. Zaikina, Head of External Relations Department, City Administration
- Yury A. Yamets, General Director, JSC "Ussuriyskiy Balzam"
- Igor V. Mukhachev, General Director, "Trump"
- Ludmila N. Khabisova, Director, "Ussuriysk Travel Bureau"

Ussuriysk, A Crossing Point

3. Ussuriysk, a small, industrial city with population of 161,000 people, in south Primorskiy kray, is 111 kilometers north of Vladivostok on the road to Khabarovsky kray and 60 kilometers from the Chinese border. Main highways and railroads connect the city to other regions of the RFE and central Russia. Compared to many RFE cities, Ussuriysk appears to be fairly prosperous, with active Chinese trade and some active food processing.

Enterprises of Ussuriysk

4. Ussuriysk industry has 28 manufacturers, including 12 in the food industry, 2 in light industry, 6 in the metal industry and four in construction. Ussuriysk has always specialized in producing consumer goods. Compared with other large cities in Primorskiy kray where defense industry prevailed, Ussuriysk is in a more favorable situation. Ussuriysk has approximately thirty specialized and multi-purpose wholesale trade firms, many of which have business relationships with china and south Korea.

Enterprises of Ussuriysk

5. Major enterprises are "Primorskiy Sakhar" (which produces 160,000 tons sugar per year), "Dalsoya" (producer of vegetable oil margarine and soap) and "Ussuriyskiy Balzam" (which produces 24 kinds of liqueur and vodka products, and balzams made of local herbs). Despite the financial crises and economic instability, Ussuriyskiy Balzam continues to increase production.

Third Country Activities

6. Most foreign companies in Ussuriysk are Chinese and south Korean firms with representative offices or joint ventures with local Russian partners. Their most active sectors are trading and agriculture. The proximity to china has made Ussuriysk a major wholesale base for Chinese products for sale to other cities of Primorskiy kray and the RFE. An enormous Chinese market, complete with two Chinese restaurants and hundreds of shops and stalls, stretches for several kilometers near the city center.

Local Accommodations and Tourism

7. In the Soviet era, Ussuriysk had thirty thousand domestic tourists per year; at present, domestic tourism is limited. Most visit Ussuriyskiy tigers in local nature preserves and game parks. Due to its location, Ussuriysk has many tour groups from china, usually, shop-tourists visiting Ussuriysk to sell Chinese consumer goods. There are 15 small hotels and hostels for shop-tourists from china and 2 for international tourists from other countries. Ten local restaurants will satisfy people who like oriental (Chinese, Korean and Japanese) food or people with preferences for Russian cuisine. A year ago, the local "Troya" company established an American style fast food restaurant "Burger". (all equipment including interior design was supplied by U.S. "Ticon Trading" company, which has an office in Nakhodka.)

Local Government

8. The local administration seeks cooperation with local as well as foreign companies to develop Ussuriysk. Administration leaders seemed professional, optimistic, and internationally oriented.

Best Prospects

9. The following list of products is expected to be in demand, though financing will be a challenge:

* packaging and food processing equipment
* restaurant equipment
* auto parts and motor oil
* building materials
* wood cutting and processing equipment

Contacts:

Ussuriysk Municipal And District Administration
Aleksandr I. Kostenko, First Deputy Head
101 Leninskaya Street
Ussuriysk, Russia, 692500
Tel: (7-241) 2-17-47
Fax: (7-241) 4-68-02

Trump Co., Ltd
Igor V. Mukhachev, General Director
152 Chicherin Street
Ussuriysk, Russia, 692500
Tel\Fax: (7-241) 6-58-79

Ussuriysk Travel Bureau
Ludmila N. Khabisova, Director
34 Sukhanova Street
Ussuriysk, Russia
Tel\Fax: (7-241) 2-02-93

Ussuriyskiy Balzam
Yury A. Yamets, General Director
49 Krasnoznamennaya Street
Ussuriysk, Russia
Tel: (7-241) 2-05-27
Fax: (7-241) 2-37-34

Author: Aleksei Dee, Commercial Assistant (CA), US Consulate, Vladivostok. Approving Officer: Rich Steffens, Principal Commercial Officer (PCO), US Consulate, Vladivostok.