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Republic of North Ossetia-Alania
Main Structure
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Population:
709,900 (2002)
Area:
8,000 km2
Regional Leader:
President Alexander Sergeyevich Dzasokhov
Information on the
regions provided by
http://www.ctec.ru/
General Information
Geography

The Republic of North Ossetia – Alania covers a total area of 8,000 square kilometers. The Republic is situated in the south of Russia on the northern slopes of the Great Caucasus range. To the north, the Republic borders the Stavropol Territory, to the north-east – the Chechen Republic, to the east – the Republic of Ingushetia, to the west – the Republic of Kabardino-Balkaria, and to the south – Georgia. Some 48% of its territory is covered by mountains.

Population

According to preliminary 2002 census results, the Republic’s population totaled 710,000 people. The average population density is 88.8 people per square kilometer. The economically active population amounts to 352,000 people. 2002 official unemployment stood at 1%. The actual rate is 16.7%.
Demographically speaking, some 57.3% are of working age, 21% are below the statutory working age, and 21.7% are beyond the statutory working age.
The Republic’s ethnic mix is 53% Ossetin, 29.9% Russian, 5.2% Ingush, 2.2% Armenian, and 9.7% other ethnic groups.
As of 2002, the Republic of North Ossetia – Alania’s major urban centers were Vladikavkaz with 315,100 inhabitants, Mozdok with 82,200 inhabitants, and Beslan with 53,300 inhabitants.
Population
  1992 1997 1998 1999 2000 2001 2002
Total population, '000 694 664 662 663 670 677 710
Economically active population, '000 356 288 275 309 328 343 352
Administration
1, pl. Svobody, Vladikavkaz, Republic of North Ossetia – Alania, 362038
Phone: (8672) 53 3524; fax: (8672) 74 9248
E-mail: app-info@osetia.ru; http://alania.osetia.ru
Economic Potential
1997–2002 Gross regional product (GRP). Industry breakdown

The 2002 gross regional product amounted to $545.4 million, which constitutes 14.3% growth year-on-year. The growth was achieved thanks to growth in machine engineering (up 27.5% on 2001), glass and porcelain (22.4%), chemicals (12%), timber, pulp, and paper (10.8%), food and beverages (7.1%), and energy (10.6%). Per capita GRP amounted to $706 in 2001 and $768 in 2002.
GRP trends in 1997–2002 * Estimates of the Government of the Republic of North Ossetia - Alania
  1997 1998 1999 2000 2001 * 2002 *
GRP in current prices, million $ 586.2 418.1 309.5 415.6 477.2 545.4
GRP industry breakdown in 1997–2002, % of total * Estimates of the Government of the Republic of North Ossetia - Alania
  1997 1998 1999 2000 2001 * 2002 *
GRP 100.0 100.0 100.0 100.0 100.0 100.0
Industry 20.7 17.4 19.7 13.8 14.4 14.0
Agriculture and forestry 8.2 7.7 11.7 8.6 8.7 8.5
Construction 7.3 8.5 5.5 8.5 9.5 9.3
Transport and communications 7.1 6.1 4.7 3.7 4.0 4.1
Trade and public catering 16.0 18.3 21.0 18.0 19.8 19.1
Other 40.7 42.0 37.4 47.4 43.6 45.0
Industrial output in 1997–2002 for major sectors of economy

The leading industrial sectors of the Republic of North Ossetia – Alania are food and beverages, non-ferrous metals, and energy. Their combined share of total output is 81.2%.
Food and beverages. The sector accounts for 60.4% of total industrial output. The main types of products are vodka, ethanol, cornstarch, syrup, glucose, dextrin, and corn oil. Major enterprises within the sector include State Unitary Company Vladikavkaz Liquor and Vodka Plant Terek, OAO Beslan Company, OAO Istok, OOO Atsamaz, ZAO Berd-Lavera, OAO Salyut, OAO Vladikavkaz Brewery and Non-Alcoholic Beverages Plant Daryal, and State Unitary Company Vladikavkaz Bakery and Macaroni Plant.
Non-ferrous metals. The sector accounts for 11.6% of total industrial output. The main types of goods produced include lead, zinc, sulphuric acid, copper vitriol, tungsten carbide, and hard and heavy alloys. The main companies operating in this sector include OAO Electrozinc, State Unitary Company Sadonsky Lead and Zinc Company, and OAO Pobedit.
Energy. The sector accounts for 9.2% of total industrial output. The Republic operates five hydroelectric power stations, including four stations that form part of OAO Sevkavkazenergo. Construction of a major HEP station is underway at Zaramagskaya.
Machine engineering and metal processing. The sector accounts for 4.9% of total industrial output. Enterprises in the sector focus on the production of automatic and pneumatic equipment for tractors, and radio and electronic goods, including resistors and electronic image converter tubes for night viewing devices. Major producers include OAO Magnet, OAO Electrocontactor, State Unitary Company Binom, State Unitary Company Gran, Federal State Unitary Company Razryad, OAO Topaz, OAO Ossetia Automobile Tractor Equipment Plant, and OAO Kristall.
Agriculture. Arable land covers 385,000 hectares, or 48.2% of the Republic’s area, including 91,400 hectares of ploughed fields, 6,500 hectares of perennial crops, 21,600 hectares of hayfields, and 165,500 hectares of pastures. The Republic grows wheat, corn, sunflower, kenaf, soybean, sugar beet, and ether and oil-yielding crops. Dairy and beef cattle breeding is well developed.
Industry breakdown of industrial output in 1997–2002, % of total * Estimates of the Government of the Republic of North Ossetia - Alania
  1997 1998 1999 2000 2001 2002 *
Industry 100.0 100.0 100.0 100.0 100.0 100.0
Food and beverages 17.5 16.1 24.8 26.1 38.6 60.4
Non-ferrous metals 26.4 26.6 31.9 28.5 18.7 11.6
Energy 20.9 19.7 10.5 12.2 10.6 9.2
Machine engineering and metal processing 10.3 9.7 9.0 8.3 6.7 4.9
Glass and porcelain 4.3 4.7 4.2 4.2 4.3 3.4
Construction materials 8.6 6.9 5.0 3.9 6.1 2.8
Forestry, timber, and pulp and paper 2.7 2.9 2.8 3.9 4.3 2.4
Light industry 4.9 3.4 3.7 4.2 3.4 1.8
Chemicals and petrochemicals 1.1 1.4 1.7 2.3 2.1 0.7
Flour, cereals, and mixed fodder 1.8 0.7 1.4 2.5 1.5 0.4
Fuel - - - 0.4 1.1 -
Ferrous metals 0.1 - 0.4 0.2 0.2 -
Transport infrastructure

Roads. The Republic has 2,300 kilometers of public highway. The Caucasus federal highway (Rostov-on-Don – Makhachkala), the Georgian Military Highway and the Trans-Caucasian highways pass through the Republic, providing access to Central Russia, the Caucasus states, Turkey, and Iran.
Railroads. The Republic has 144 kilometers of railroads. A section of North-Caucasian railroad and the Prokhladnaya – Mozdok – Gudermes branch line cross the Republic. In 2002, 1.9 million tons of freight was transported by rail.
Airports. The Republic is served by an international airport at Beslan, 20 kilometers from the capital.
Gas pipelines. The trunk gas pipelines Stavropol – Mozdok – Vladikavkaz – Tbilisi, Stavropol – Mozdok – Vladikavkaz – Yerevan, Stavropol – Mozdok – Grozny, and Stavropol – Mozdok – Beslan – Nalchik pass through the Republic. The total length of the Republic’s trunk gas pipelines is 393.4 kilometers, plus 199 kilometers of branch pipeline, and 3,383.9 kilometers of distribution pipeline.

Main natural resources: reserves and extraction in 2002

The Republic’s main natural resources are oil, metal ores, dolomites, and mineral water springs.
Metal ore. The Republic is rich in zinc, lead, copper, and silver ores. The main deposits are the Sadonskoye, Zgidskoye, Arkhonskoye, and Kholstinskoye.
Non-metal mineral resources. The Republic has more than 40 deposits of granite (including the Tseiskoye, Buronskoye, Bugultinskoye, Daryalskoye, and Digorskoye), roofing shale, marble (the Dzhimarinskoye and Zaramagskoye), lime (the Melkhiorskoye, Baltiyskoye, Tarskoye, Chernorechenskoye, Fetkhuz-skoye, and Bizskoye), dolomite, and marl.
Oil and natural gas. Oil fields are found in the northern part of the Republic, including the Zamankulskoye, Kharbizhinskoye, Akhlovskoye, and North Malgobekskoye fields with estimated total reserves of 56,800 tons of fuel, including 21,300 tons of oil and 35.5 billion cubic meters of natural gas.
Mineral water. The Republic has more than 300 sodium chloride, hydrocarbon chloride, sodium calcium, sulphate chloride, and hydrocarbon sulphate mineral water springs. Industrial reserves amount to some 15,000 cubic meters per day. The most valuable mineral waters are Karmadon, Ursdon, Fatima, Tib 1, and Tib 2.
Resorts and recreational reserves. The Republic has all the prerequisites for the development of tourism, mountain hiking, and downhill skiing. The Tamisk balneological resort and the Tseisky Canyon mountain recreational center are the most popular resorts. In the future, the Republic will be able to host up to 200,000 tourists, 600,000 visitors, and provide rehabilitation services to 50,000 people annually.
Trade Opportunities
Main goods produced in the region

Food and beverages. Bakery and bread output in 2002 amounted to 23,000 tons, meat (including sub-products) – 2,200 tons, dairy products – 5,800 tons, and vegetable oil – 122 tons.
Agricultural products. 2002 output of grain totaled 250,100 tons, sunflower seed – 4,100 tons, 92.8 million eggs, 42,800 tons of vegetables, and 91,200 tons of potatoes.

Exports, including extra-cis

The Republic of North Ossetia – Alania’s exports to extra-CIS countries amounted to $64.8 million in 2000. Exports to the CIS reached $2.3 million. The corresponding figures for 2001 were $63.5 million and $4.6 million, and $78.7 million and $11.8 million for 2002.
The main types of goods exported by the Republic of North Ossetia – Alania in 2002 were zinc and zinc goods ($55.7 million), boilers and equipment ($16 million), grain ($5.9 million), metals and metal ceramics ($1.2 million), lead and lead goods ($1.6 million), electrical machinery and equipment ($3.9 million), flour and cereals ($2.4 million), alcoholic and non-alcoholic beverages and vinegar ($2.4 million), instruments and cutlery ($0.6 million), dairy products, eggs, and honey ($0.6 million), salt, sulfur, and tiles ($0.4 million), mineral fuel, oil, and refinery products ($0.3 million), and fat, butter, and vegetable oil ($0.3 million).
Major importers of the Republic’s products include Switzerland, Turkey, Slovakia, Spain, France, Ireland, Georgia, Kazakhstan, and Ukraine.

Imports, including extra-cis

2000 imports from extra-CIS countries amounted to $58.9 million. Imports from CIS countries reached $8.5 million. The corresponding figures for 2001 were $47.8 million and $20.2 million, and $35.8 million and $27.3 million for 2002.
The bulk of 2002 regional imports included ore, slag, and ash ($28.7 million), alcoholic and non-alcoholic beverages and vinegar ($13.6 million), fruit and nuts ($1.2 million), boilers and equipment ($6.9 million), zinc and zinc goods ($0.9 million), metal goods ($2.8 million), non-organic chemicals ($1.3 million), polymers, plastic, and plastic goods ($1.4 million), glass and glass goods ($0.5 million), furniture ($0.8 million), electrical machines and equipment ($1.1 million), and vegetables ($0.3 million). The main exporters to the Republic are Spain, France, and Ireland.

Major regional export and import entities

OAO Electrozinc 1, ul. Zavodskaya, Vladikavkaz, Republic of North Ossetia - Alania, 362001 Phone: (8672) 53 5930
Investment Opportunities
Capital investment

Industry, transport, and communications account for the lion’s share of capital investment.
Capital investment by industry sector, $ million
  1997 1998 1999 2000 2001 2002
Total capital investment
Including major industries (% of total)
105.8 69.9 38.2 58.9 76.9 57.6
Industry 16.9 10.5 14.6 13.3 18.1 28.2
Agriculture and forestry 9.5 1.7 4.4 3.0 2.9 4.0
Construction 1.8 0.5 1.1 1.7 0.2 0.2
Transport and communications 13.6 13.5 25.4 37.6 38.5 20.6
Trade and public catering 0.1 0.3 0.4 0.5 2.0 0.6
Other 58.1 73.5 54.1 43.9 38.3 46.4
Major enterprises (including enterprises with foreign investment)

The Republic has 68 registered companies with foreign investment from Turkey, Germany, etc.
Largest enterprises of the Republic of North Ossetia-Alania * Data of the Government of the Republic of North Ossetia - Alania
Company Sector 2002 sales,
$ million *
OAO Beslan Company Food and beverages 50.3
OAO Electrozinc Non-ferrous metals 30.7
OAO Sevkavkazenergo Electricity 24.8
OAO Pobedit Non-ferrous metals 12.0
OAO Kristall Machine engineering and metal processing 1.0
State Unitary Company Sadonsky
Lead and Zinc Company
Non-ferrous metals 0.7
State Unitary Company Gran Machine engineering and metal processing 0.4
OAO Magnet Machine engineering and metal processing 0.3
Federal State Unitary Company Razryad Machine engineering and metal processing 0.3
State Unitary Company Binom Machine engineering and metal processing 0.2
OAO Topaz Plant Machine engineering and metal processing 0.06
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