Services provided:


– Drawing up the methodology for identifying the key hubs, zones and axes of prospective development within a particular region;


– Applying the methodology to Krasnodar Krai;


– Designing a strategic guidance on the spatial development of Krasnodar Krai


Client: Sputnik

Krasnodar Krai is the third most populous region in Russia. Located in a unique climate zone, it accommodates the best national resorts, fertile soil and gateways to international trade chains for mineral resources. These benefits come with complex challenges such as difficult terrain that inhibits the expansion of transport infrastructure, high risks of natural disasters, and air and water pollution.

Strategic guidance for the long-term development of Krasnodar Krai was developed as a part of the joint effort of 10+ teams, developing a national spatial strategy for the Russian Federation.

As a part of the project, we have drawn up a universal methodology for identifying the key hubs, zones and axes of prospective development. It is based on the comparative analysis of more than 25 social and economic indicators such as net migration rate, net natural increase, profitability of enterprises, school provisions, passenger traffic of major transport hubs and other.


In Krasnodar Krai we have distinguished six major hubs of commercial, industrial and tourist activity (Krasnodar, Novorossiysk, Sochi, Anapa, Gelendzhik, Temryuk district) and four sub-regions (zones) that demonstrate high productivity agriculture, manufacturing, recreation, trade or construction.


The thriving commercial center Krasnodar is advised to toughen the building regulations as more than 2 million sq. m. of residential real estate is completed every year. Sochi is undergoing a tourist and event boom after the Olympics and needs to focus on eliminating the shortage of places at primary and secondary schools as well as on broadening the range of degree programs. At the moment there is just one university specializing in technical subjects which doesn’t meet educational standards despite the existing demand for qualified experts in transport and engineering infrastructure. The so-called Agricultural zone should prioritize the provision of utilities in rural areas (only 50-65% of local residents currently have access to centralized water and heating systems). Moreover, wages should correlate with the volume of produced goods.


As for the overall directions of regional development, we suggest focusing on increasing the economic competitiveness and added value of the economic sectors, enhancing the spatial interconnectedness of the key hubs, reducing the negative environmental impacts of industries and car congestion, and facilitating human development by creating local job opportunities and improving the quality of healthcare and educational services.

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