OREANDA-NEWS. May 12, 2012. The Chamber of Commerce and Industry of Russia (CCI of Russia) has played host to a presentation of the investment and industrial potential of the Republic of Bashkortostan. CCI of Russia President Sergey Katyrin, President of the Republic of Bashkortostan Rustem Khamitov, CCI of Russia Vice-Presidents Vladimir Strashko and Alexander Zakharov, Russian and foreign investors, diplomats and representatives of the federal and regional executive and legislative authorities attended the event.

Before the presentation started, CCI of Russia head Sergey Katyrin, President of the Republic of Bashkortostan Rustem Khamitov, delegation members and Chamber executives saw an exhibition of the leading industrial and agricultural enterprises of the republic.

CCI of Russia Vice-President Vladimir Strashko opened and chaired the presentation; he gave the floor to Sergey Katyrin for greeting the audience. The Chamber hosts a presentation of the industrial and investment potential of one of the most powerful constituents of the Russian Federation – the Republic of Bashkortostan, Sergey Katyrin said. In the words of the Chamber head, the republic has a vast intellectual and industrial potential: aircraft engine building, petrochemical and other plants. Bashkortostan has interesting development projects for large industrial enterprises, innovative small and medium businesses, sports, tourism and other sectors. The Chamber head noted the contribution of the CCI of Bashkortostan to the development of the republic, small and medium business and expressed the hope that the work would continue.

Bashkortostan President Rustem Khamitov greeted the presentation participants on behalf of the republic; he stressed that the representatives of Bashkortostan were honored to hold the event on the Chamber premises, to display achievements of the republic, to discuss problems and to elaborate jointly the ways of their solution.  The economic might of Bashkortostan is rooted primarily in oil production, oil and gas refining and steelworks but other economic sectors are equally dynamic. The republic has given the green light to innovative small and medium business; it is creating a comfortable business environment and eliminating administrative barriers, Rustem Khamitov said. Bashkortostan has the tasks of creating an innovative potential, modernizing higher educational establishments and national research universities and some others. In conclusion, the republican leader welcomed the energetic and dynamic interaction between the CCI of the Republic of Bashkortostan and the business community.

CCI of Bashkortostan President Yury Pustovgarov told the audience about the investment and industrial potential of the republic. He informed the presentation participants about the political and geographic position of Bashkortostan and highlighted the unique forest and water resources of the republic. Speaking of the economic potential, he said the republic is a large logistics center and an air hub with passenger traffic exceeding 2 million people and the ability to handle jumbo transport jetliners. There is a modern river port, too.

Oil and gas refineries are the keynote elements of the republican economy, Yury Pustovgarov said. Bashkortostan’s oil refineries have attained the crude refining ratio of 84%; they export Euro-4 and Euro-5 fuel. The innovative infrastructure of the republic needs upgrading, Yury Pustovgarov said. Bashkortostan has two infrastructural vectors, i.e. a techno- park formed jointly with a French company focused on energy saving techniques and equipment and the IT industry.

The speech of Bashkortostan Economic Development Minister Yevgeny Mavrin was dedicated to the investment infrastructure of the republic. We, the same as the majority of Russian regions, are fighting for investments, he said. The republic seeking a favorable investment climate adopted laws in 2010-2011 for drawing investments. Laws providing investors with company profit and property tax benefits entered into force on January 1, 2012. The company profit tax rate for investors was lowered (to 13.5% for the period from one to five years). Investors are exempt from the company property tax for the same period.

Bashkortostan is one of ten Russian regions to introduce the investment climate improvement standard developed for the executive authorities by the federal Strategic Initiatives Agency, Yevgeny Mavrin said. A new development institute, the Development Corporation of the Republic of Bashkortostan, was started up in December 2010. JSC Regional Fund was established in 2007 for rendering support to investment projects in the Republic of Bashkortostan. JSC RusHydro Effectiveness of Bashkortostan (RBEF) assists the formation and development of a techno-park in the Republic of Bashkortostan. The main project of the techno-park is the construction of a plant manufacturing hydropower and auxiliary equipment by the world’s best technologies jointly with the French company Alstom.  The Republic of Bashkortostan has the Investment Fund, too. We are one of the few constituents of the Russian Federation prepared to finance the drafting of design estimates with Investment Fund money, the minister said.

The Republic of Bashkortostan lists 52 primary projects with the overall investments larger than 312 billion rubles (two projects have been done by now). The aggregate investment project list has 80 large projects on it (including the aforesaid 52 primary projects) with the investment total exceeding 527 billion rubles and the creation of 45,000 jobs.

Ufa City District Administration Head Irek Yalalov presented the Ufa development project. The status of Ufa amongst cities with more than a million residents testifies to its high investment and economic potential, he said. Ufa ranked top by the amounts of industrial production and paid services, second by trade, public catering and services, and third by the average monthly wage in 2011.

Irek Yalalov recounted the city progress in recent years. Yet more can be done with the investment potential, he said. The city is implementing 76 projects with the investments nearing 97 billion rubles. There are 31 projects more with the investments exceeding 78 billion rubles. The projects include the production of helicopter engines, the development of the super-light civilian helicopter R-30 ‘Rotorfly’, the construction of a cone rock bit plant, a four-story poly-vitamin workshop and a steam gas power plant, Heat Station 5. The general plan includes the construction of eight bridges, among them one liked with a 1,250-meter motor tunnel (ready at 60%).

Reconstruction of built-over areas and comprehensive development of new lands are on the immediate plans, Irek Yalalov said. Ufa enterprises have drafted energy infrastructure programs worth of approximately 5 billion rubles and public utility infrastructure programs worth of 6.5 billion rubles. The Palace of Sport, the Biathlon center and the Olympic Park downhill center are being renovated, and the construction of a skiing center has begun. Ufa is a perfect floor for annual international exhibitions and forums; it is experienced in hosting such events. The city is preparing for the Shanghai Cooperation Organization summit 2016, Irek Yalalov said.

Bashkortostan Deputy Prime Minister Salavat Sagitov was the next speaker. Traditionally, Bashkortostan has been a junction of Turkic, Slavic and Finno-Ugric cultures, he said. Sixteen historical and cultural centers opened in the areas of compact residence of peoples in the republic. Bashkortostan holds annual folk art contests and festivals for strengthening inter-ethnic accord. Ufa is a landmark for many acclaimed world-class culture and art workers. This is the homeland of writer, public figure Sergey Trofimovich Aksakov. Ufa residents honor the memory of their fellow countryman Rudolf Nureyev, after whom the Bashkir Choreography College has been named. This June the Bashkir State Opera and Ballet Theater will welcome ballet stars participating in the Rudolf Nureyev International Ballet Competition for the 19th time. Fyodor Shalyapin had his debut in the capital city of the republic. Ufa residents and guests are waiting for the International Opera Festival, “Shalyapin Evenings in Ufa”. The Republic of Bashkortostan holds festivals of jazz, symphonic and choir music and folk

orchestras and the Nariman Sabitov and Zagir Ismagilov International Musicians’ Contest.

 Salavat Sagitov also spoke about sport achievements of the republic. The world’s ten best youth teams will fight for gold of the Youth Ice Hockey World Championship in Ufa from December 26, 2012, through January 3, 2013. The VI International Children’s Winter Games will follow. About a thousand of boys and girls from many countries, aged from twelve to 15, will take part in seven Game events – hockey, biathlon, cross country skiing, ski orienteering, figure skating, short track  speed skating and downhill skiing -  in February 2013.

Gazprom is the General Partner of the Children’s Games 2013. The Republic of Bashkortostan has a unique landscape and an advantageous geographic position, which is good for downhill skiing. The republic is drafting a program for the development of downhill skiing facilities. It is doing a lot to develop adaptive physical education and sport. Ufa is building Russia’s largest paralympic sport training center. Ufa will be the site of the International Paralympic Sport Institute.

Chairman of the Bashkortostan State Committee on Enterprise and Tourism Ruslan Kinzikeyev dedicated his report to the republic’s tourism investment offers. The republican tourism market displayed a major upward trend in 2011. An important advantage of the republic is transport accessibility and convenient logistics, Ruslan Kinzikeyev said. Bashkortostan is the closest spot of ecological, adventure and downhill tourism to the east of Moscow. The Ufa Airport is located in the direct proximity to the republic’s capital city – it is only a 20-minute taxi drive. There are almost 40 domestic and international air routes linked with Ufa. A super-light aviation cluster is developing. The republic has a developed network of motorways. The Government of the Republic of Bashkortostan views the tourism industry as a promising economic branch. The republican government enlarged allocations for tourism industry to 100 million rubles in 2012, or 40 times since 2009-2010. Municipalities estimate the latest investments in tourism infrastructure at 1.6 billion rubles. The republic has elaborated a long-term target program, “The Development of Internal and Cross-Border Tourism in the Republic of Bashkortostan in 2012-2016,” with a focus on tourism clusters (one recreational and three motor tourism clusters). The total financing of the program will stand at 6.754 billion rubles, among them 4.72 billion rubles in off-budget sources (private investments).

The presentation included a press briefing. Participants in the presentation of the investment and industrial potential of the Republic of Bashkortostan answered numerous questions of reporters.

In the end, the Russian Medical Community and the Medical League of the Republic of Bashkortostan signed an agreement.