Primorsky Krai - Economy

Economy

Primorsky Krai's economy, the most balanced in the Russian Far East, is also the largest in absolute terms. Food production is the most important sector, represented mainly by fish processing. Annual catch exceeds two million tonnes, or one half of the Russian Far East total. Second is machine building, where half of the output is geared toward the fishing industry and shipyards. Defense is another important sector, producing naval vessels and military aircraft. The construction materials industry here provides for the whole Russian Far East. Lead smelting is conducted in Rudnaya Pristan on the coast.

The timber industry, though in recession, is still second only to Khabarovsk Krai's with an annual yield of about 3 million cubic meters of timber. Primorsky Krai is the largest coal producer in the Russian Far East and generates more electricity than any other Russian Far East administrative division, but power shortages are common. Agriculture is also important; the krai produces rice, milk, eggs, and vegetables.

Primorsky Krai is the Russian Far East's banking and finance center. It has more than 100 banks and affiliates and well-developed futures and stock exchanges.

The krai's proximity to Pacific Rim markets gives it an edge over most other Russian Far East administrative divisions in developing foreign trade. Major trade items are seafood products, timber products, and ferrous metals. Major trading partners are Japan, China, and South Korea.

Primorsky Krai's compact territory is well endowed with infrastructure. Its railway density is twice the Russian average. Railroads connect it with China and North Korea. Vladivostok, the eastern terminus of the Trans-Siberian railway, was surpassed as a port by the nearby Nakhodka-Vostochny Port container, coal and timber terminals. Primorsky Krai-based shipping companies provide 80% of marine shipping services in the Russian Far East. All the krai's significant ports are now open to international shipping.

Production of grain, soybeans, potatoes, and vegetables is the leading agricultural sector. The breeding of livestock, especially sheep, is well developed in Primorye; a fur farming industry is also being developed through the establishment of fur farms and animal nurseries.