January 19, Epiphany in Sochi

Last night in Sochi, the beaches were full of bathers at midnight, despite the cold and damp evening.  The occasion was the celebration of Epiphany, which is celebrated in the Orthodox Christian Church as the day that Jesus was baptized in the Jordan River and one of only two times when all three Persons of the Holy Trinity manifested themselves to humanity.  In colder areas of Russia, those observing will cut a hole in the ice (often in the shape of a cross) and immerse themselves in the water, sometimes 3 times.  In Sochi, thousands of people come to the beaches and plunged into the Black Sea at midnight.  Last night, I was there for a brief and chilly swim.  The water temperature was about +8 to 10 Celsius ( 46- 50 Fahrenheit).  

Krasnodar Krai (Region) Ranked 2nd in Russia for Investment Potential

The Expert R A Rating Agency, in December 2009, analyzed all 89 of the regions of the Russian Federation for investment opportunity. The agency identified areas of risk including, among others, economic, political and legal. They also looked at the human infrastructure, natural resources and the consumer base of each region as well as other variables.  It is not a surprise to me that Krasnodar Krai ranked 2nd of all the regions for investment potential.  Of course these judgments are subjective, but I was drawn to the region some years ago for some of the very same reasons that Expert R A ranked Krasnodar Krai so highly.  I saw a region with a strong agricultural and agricultural processing base, shipping, tourism with the Black Sea and the Caucasus Mountains (including the 2014 Winter Olympiad in Russia), as well as energy and an increasing investment in infrastructure to support economic growth and tourism.  I think that Krasnodar Krai will attract more attention due to its comparatively mild climate and excellent opportunities for investment for some time.  Many investors have seen Russia as Moscow first and foremost, followed by Saint Petersburg and then everywhere else.  I think that the spotlight will shift in part to Krasnodar Krai as the economy rebounds from the grips of the crisis.

Krasnodar Krai has about 5.1 million inhabitants and just over 39,000 square miles.