France steps into Russia’s North Caucasus to boost tourism

France steps into Russia’s North Caucasus to boost tourism
France will bring its world class expertise in ski resorts to Russia’s North Caucasus, where the countries plan to jointly develop a tourism hub.

International Caucasus Development, a Russian – French joint venture, intends to attract a billion Euros of investment next year.

As part of the project, 5 new world class ski resorts are being built in Russia’s south, which includes the territories of Krasnodar region, the Karachai-Cherkess Republic, the Kabardino-Balkarian Republic, the Republic of North Ossetia and the Republic of Daghestan. The $14.5 billion deal will create around 330 thousand new jobs in the regions.

The Russian Government and businesses will jointly finance the project. The Government will contribute around $2 billion into transport and municipal infrastructure and businesses will be mostly responsible for the resorts.

The two countries will work out a joint development strategy for the hub, attract money from abroad, as well as make sure all the projects comply with international standards.

Russia will have a bigger say in the deal, holding a 51% stake in ownership capital and heading the venture.

Overall, the contracts with international investors to develop the hub are estimated at around $6 billion.