Republic of Tatarstan: General Overview, State System, Economy

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Republic of Tatarstan: General Overview, State System, Economy

  1. 1.  Republic of Tatarstan: General Overview, State System, Economy ТАТА РС ТАН Republic of Tatarstan: General Overview, State System, Economy
  2. 2. Republic of Tatarstan: General Overview, State System, Economy Kazan 2010
  3. 3. 1 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, EconomyRepublic of Tatarstan: General Overview, State System, Economy 1.1. STATE SYMBOLS National Flag of the Republic of Tatarstan National Emblem of the Republic of Tatarstan National Anthem of the Republic of Tatarstan (Music by composer Rustem Yakhin) 1.2. STATE SYSTEM 1.2.1. Leadership of the Republic of Tatarstan PRESIDENT OF THE REPUBLIC OF TATARSTAN President of the Republic of Tatarstan is the supreme official of the Re- public of Tatarstan. President of the Republic of Tatarstan acts as a guarantor of protection of rights and freedoms of person and citizen in the Republic of Tatarstan, observance of the Constitution and laws of the Republic of Tatarstan, inter- national agreements of the Republic of Tatarstan, the Treaty between the Russian Federation and the Republic of Tatarstan“On Delimitation of Juris- dictional Subjects and Powers between Bodies of Public Authority of the Russian Federation and Bodies of Public Authority of the Republic of Tatar- stan”, and agreements between the Republic of Tatarstan and constituent entities of the Russian Federation. Since March 25, 2010 the President of the Republic ofTatarstan is Rustam Nurgalievich Minnikhanov. 1.2.2. Cabinet of Ministers of the Republic of Tatarstan The Cabinet of Ministers of the Repub- lic of Tatarstan (the Government of the Republic of Tatarstan) is an executive and administrative body of the Government of the Republic of Tatarstan. The Cabinet of Ministers is formed by the President of the Republic of Tatarstan and is accountable to him. The nominee for Prime Minister is ap- proved by the State Council (Parliament) of Tatarstan at the suggestion by the President. Since April 22, 2010 the Prime Minis- ter of the Republic of Tatarstan is Ildar Shafkatovich Khalikov. 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN First President of Tatarstan Mintimer Shaimiev President of Tatarstan Rustam Minnikhanov Under the editorship of Ravil Zaripov, Minister of Industry and Trade of the Republic of Tatarstan Editorial board: Vladimir Solovyev, Gulnara Akhmadeyeva, Farid Tuktarov, Artur Fatykhov, Oleg Vlasov This publication was prepared with participation of: Rustem Akhmetgarayev, Denis Klimin, Sergei Mezentsev, Engil Ismagilov, Timur Mindubaev © Ministry of Industry and Trade of the Republic of Tatarstan, compilation, 2010 4, Ostrovsky St., Kazan 420111 Phone: +7 (843) 299 10 07 Fax: +7 (843) 292 16 45 e-mail: mpt@tatar.ru http://mpt.tatar.ru © Publishing house“Foliant”, design and layout, 2010
  4. 4. 2 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy 3 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy area is 4,400 square kilometres, or 6.4% of the territory of the Republic of Tatarstan. There are four reservoirs in the republic, Kuybyshevskoye, Nizh- nekamskoye, Zainskoye, and Karabashskoye. The Europe’s largest storage basin, Kuybyshevskoye Reservoir, with the volume of 57.3 cubic kilometres, is located for the most part in the territory of the Republic of Tatarstan. Its widest span in the mouth of the Kama is nearly 30 kilometres. A total of 4,098 water streams flow across Tatarstan with a total length of 19,632.5 kilometres. The republic is fully provided with potential ground water re- sources totalling 5.46 million cubic metres per day. The available land of the Republic of Tatarstan is 6,783,700 hectares. The major part, some 68%, are agricultural lands (4,630,100 hectares); for- est lands constitute 18% (1,217,700 hectares); water resource lands, 6.5% (436.1 hectares); lands of inhabited localities, 5.7% (386,700 hectares); lands of specially protected areas, 0.5% (31,600 hectares); and industry lands, 0.1% (79,000). 1.6. POPULATION The population of the Republic ofTatarstan numbers 3,772,900 and com- prises representatives of 115 ethnic groups; these include Tatars (52.9%), Russians (39.5%), Chuvashes (3.4%), Ukrainians, Udmurts, Mari, Bashkirs, Jews, and others. Russian population prevails in large cities and adjacent regions, while Tatar population dominates in rural areas. 1.7. RELIGION Over thousand religious societies have been registered in the territory of the Republic of Tatarstan. The most widely-spread religions are Islam and Orthodox Christianity. The Sunni Islam was adopted as official religion in the Volga Boulgaria as early as in 922. At present, it is professed by a majority of Tatars and Bash- kirs. The supreme body of Muslims is the Religious Muslim Board of the Republic of Tatarstan. The Orthodox Christianity ap- peared in the mid-16th century after the annexation of the Kazan Khanate by the Russian State. The followers of this religion supported in the territory of the republic by the Kazan Eparchy of the Russian Ortho- dox Church are Russians, Chuvashes, Mari, Mordvinians, Udmurts, and a part of Tatars (kryasheny). There are small communities of other Christian confessions: Old Believers, Catholics, Lutherans, Baptists, Seventh–Day Adventists, as well as small communities of other confessions, such as Krishnaists and Bahá'í Faith. 1.8. STATE LANGUAGES According to the Constitution of the Republic of Tatarstan, the Tatar and the Russian languages are recognised as equal in rights throughout the ter- ritory of the Republic of Tatarstan. The Tatar language belongs to the Turkic group of the Altai family of lan- guages alongside with Kazakh, Uzbek, Turkish, etc. The Russian language, together with Ukrainian and Byelorussian, consti- tutes Eastern-Slavic subgroup of Slavic group of the Indo-European family of languages. 1.9. HISTORY The Republic of Tatarstan boasts a rich history. The first state in the re- gion was the Volga Boul- garia created by Turkic tribes, whose ancestors have already had a state- hood experience within the frames of the Turkic Kaghanate and Hunnish Power, as early as in the 8th–9th centuries. In 922, it adopted Islam as official religion, which meant its international recognition and falling under the influence of the Arab Caliphate. Boulgaria was the most politically and economically developed state in the region and played an important role in life of peo- ples that inhabited the region. The country pioneered in smelting cast-iron in Europe. In addition to metallurgy, quite developed were the art of jewellery, tanning industry, culture, science, and education. Unity of the country, its regular armed forces and well-organised reconnaissance allowed it to withstand the Mongolian aggressors. Only with the fourth attempt in 1236, their superior forces succeeded in breaking down the resistance of the Boulgars, but even after that the Mongols had to maintain a huge garrison to keep the rebellious land pacified. Boulgaria became an ulus of the Golden Horde, with the local dynasty remaining in power, in the same way as in Russian principalities. However, centrifugal tendencies began to appear, and the country broke into semi- dependent emirates, with Kazan among them, and actually got out of the 1.3. GEOGRAPHY The Republic of Tatarstan is situated in the European part of the Rus- sian Federation at the confluence of the Volga and the Kama rivers. The territory of the republic stretches some 460 kilometres west to east and 290 kilometres north to south. The total area of the republic is 67,836.2 square kilometres, which is approximately equal to the area of Sri Lanka or that of Belgium and the Netherlands taken together. Tatarstan borders on eight regions of the Russian Federation: the Republic of Bashkortostan, the Udmurt Republic, the Republic of Mari El, the Chuvash Republic, the Kirov, Orenburg, Ulyanovsk, and Samara regions. 1.4. CLIMATE The climate of Tatarstan is mild continental with long, warm and some- times hot and droughty summer and moderately cold winter. Snowy period is almost 5 months (from mid-November to early April). The average temperature in January is -14°C, and in July the average tem- perature is +19°C. The range of monthly average temperatures is 32°C to 34°C, and the range of absolute temperatures is 86°C. Annual precipitation ranges from 430 millimetres to 500 millimetres. 1.5. NATURAL RESOURCES The Republic of Tatarstan is rich in mineral resources, with crude oil rep- resenting its main source of wealth. The first commercial oil deposit was discovered as early as in 1943. The main oil reserves, some 0.8 billion tonnes, are concentrated in medi- um-size and small deposits. Along with crude oil, petroleum gas is also pro- duced. Other mineral resources extract- ed in the republic's territory are gypsum (total reserves are 72 million tonnes), oil bitumen (explored reserves are 7 billion tonnes), peat (800 peat deposits with a total area of over 35,000 hectares), construction stone (56.7 million cubic metres), brick clay (158.3 million cubic metres), limestone and dolomite (92 million tonnes). Production of black coal is complicated due to its deep oc- currence. Exploitation of combustible shale deposits in south-west Tatarstan is also promising. The Republic of Tatarstan has large water resources, which are character- ised by a branched river system with such large rivers as the Volga, Kama, their tributaries, such as Vyatka, Belaya, Sviyaga, and others. Total water surface russian federation The Republic of Tatarstan
  5. 5. 4 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy 5 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy its age is about one thousand years. Once a Boulgar frontier fortress, Kazan in the Golden Horde period became the capital of an actually independent emirate (principality) and of the Kazan Khanate in 1438. As a result of seizure of the city by troops of Ivan the Terrible in 1552, it was vir- tually razed to the ground. In 1708, Kazan became a province centre. Since 1920, Kazan was the capital of the Tatar Autonomous Soviet Socialist Republic, and since 1992, of the Republic of Tatarstan. Kazan is the centre of culture and education in Tatarstan. It has 30 higher educational institu- tions, including the world-known Ulyanov-Lenin Kazan State Uni- versity. Development of science is also supported by the Academy of Sciences of Tatarstan, the Kazan Scientific Centre of the Russian Academy of Sciences, the National Library of the Republic of Tatar- stan (2.8 million books), and the Scientific Library of Kazan Univer- sity (4.8 million books). In Kazan, there are the Russia's second larg- est Concert Hall, 7 professional theatres, 4 state orchestras, the Ensemble of Singing and Danc- ing of the Republic of Tatarstan, 13 museums, 5 exhibition halls and galleries, 7 Creative Unions, 7 higher and secondary institutions for culture and arts, and over 50 schools of art and music. This list can be extended with 3 recreation centres, 300 libraries of different systems and departments, 7 cinema theatres, over 50 creative troupes, the circus, different cultural societies, funds, associations, etc. Kazan is the city where the republic's large enterprises are located. The products of OAO Kazanorgsintez, OAO Kazan Motor-Building Production Association, OAO  Kazan Helicopter Plant, OAO  Gorbunov Kazan Aircraft Association, OAO Kazankompressormash, and OAO Kazan Medical Instru- ments Plant are well-known and in demand far outside of the republic. On August 30, 2005 an outstanding event took place in the life of the capital of Tatarstan: Kazan celebrated its millennium anniversary. Within these celebrations, Kazan hosted the World Congress of Tatars, the Sum- mit of Heads of the CIS Countries, a meeting of the State Council of the Russian Federation. In the pre-anniversary period and during the event the republic was visited by more than 80 delegations of foreign states and Russian regions. At the same time, some 30 delegations from Tatarstan vis- ited the CIS and non-CIS countries to exchange experience on vital issues related to economic development. Large scale presentations of the eco- nomic and investment potential of Tatarstan were held in China, Belgium, France, Singapore, Vietnam, India, Czech Republic, Kazakhstan, as well as in the Ministry of Foreign Affairs and the Federation Council of the Russian Federation, in the Republic of Karelia, Karachayevo-Cherkess Republic and in Yaroslavl. Enterprises of the republic took part in 55 international and in- terregional exhibitions. The celebration programme comprised the open- ing ceremonies for five stations within first line of the Kazan underground, reconstructed Kul-Sharif Mosque and restored Annunciation Cathedral, business terminal of the Kazan International Airport, Tatar State Humani- tarian Pedagogical University, Hermitage Centre in Kazan Kremlin, etc. The city completed the restoration of the Opera and Ballet Theatre and the City Hall and the construction of a bridge across the Kazanka, which connects two parts of the city. Horde. The exit was formalised in 1438 with the formation of the Kazan Khanate. Relations between the Kazan Khanate and Moscow were rather uneasy. Continued wars, robber raids and interference of the neighbouring Russia weakened the country. Having gained strength, the Russian State became able to capture Kazan in 1552, though it took tens of years to break down the people's resistance. Kazan became one of the major cities of Russia and the centre of a huge province in 1708. After the October Revolution, in accordance with a new state national policy, the Tatar Autonomous Soviet Socialist Republic (TASSR) was established in 1920. Virtually since 1922, the Tatar elite had been making efforts to achieve the status of a union republic for Tatarstan. In this or that form, the issue was discussed before the adoption of 1937 Constitution, in the years of “Khrushchev Thaw”, while in the process of elaborating the 1977 Constitu- tion the proposals had even been prepared to upgradeTatarstan to a union republic. The complicated interior situation in the Soviet Union and the processes of change has a direct impact on the status of the republic: on 30 August 1990, the Declaration of State Sovereignty of the Republic of Tatarstan was adopted. On 12 June 1991, the first President of Tatarstan, Mintimer Shaimiev, was elected. On 6 November 1992, the Constitution of the Re- public of Tatarstan was adopted following the Referendum where 61.4 per- cent of citizens supported the idea of sovereignty. This resulted in a key provision of the state administrative status of the Republic of Tatarstan as a sovereign state associated with the Russian Federation on the basis of the Treaty on Delimitation of Jurisdictional Subjects and Powers between Bodies of Public Authority of the Russian Federation and Bodies of Public Authority of the Republic of Tatarstan signed on February 15, 1994 in Mos- cow. The Treaty became an important landmark on the path to building a new democratic federation. The newTreaty on Delimitation of Jurisdictional Subjects and Powers be- tween Bodies of Public Authority of the Russian Federation and Bodies of Public Authority of the Republic of Tatarstan was signed on June 26, 2007. Holidays in the Republic of Tatarstan New Year's Holiday January 1, 2, 3, 4, and 5 Christmas January 7 Defender of the Motherland Day February 23 International Women's Day March 8 Spring and Labour Holiday May 1 Victory Day May 9 Day of Russia June 12 Tatarstan Foundation Day August 30 People’s Unity Day November 4 Tatarstan Constitution Day November 6 Kurban Bairam The date is determined according to lunar calendar and is established annually by Decree of the President of the Republic of Tatarstan three months prior to its commencement Sabantui (finishing the spring agricultural field works) The date is established annually by Decree of the President of the Republic of Tatarstan 1.10. CAPITAL The capital of the Republic of Tatarstan, the city of Kazan, is situated on the left bank of the Volga River in the estuary of the Kazanka River and has the largest population and economic potential among the cities of the republic. The area of Kazan is 425.3 square kilometres, and its population is 1.11 million. Young people at the age of up to 30 constitute 40.7 per cent of the city population. Citizens of Kazan represent over 100 ethnic groups. Kazan is home to 22 national-cultural societies. Administratively, Kazan is divided into 7 districts. Kazan is a city with rich history. Recent archaeological findings show that
  6. 6. 6 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy 7 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy Museums There are 100 state-run and over 300 departmental museums in Tatar- stan, which help learn the history and culture of this land. The National Museum of the Republic of Tatarstan was founded in 1894. Its exposition was based on the materials of 1890 Scientific and Industrial Exhibition and the collection of historian Andrei Likhachev. The museum provides information about the nature of the land and its history from an- cient times. The Fine Arts Museum founded in 1959 on the basis of the State Museum Picture Gallery displays over 21,000 pieces of painting, graphics, sculpture, and applied art. Among them are the works of Rembrandt, Dürer, Bryullov, Aivazovsky, Perov, Kramskoy, Savrasov, Shishkin, Kuindzhi, Levitan, Repin, Vereshchagin, Serov, Roerich, Fechin, Urmanche, and many others. The Museum of Geology under Kazan State University displays a rich col- lection of meteorites, minerals, and crystalline soils of the Urals and Siberia. The Museum of Ethnography under Kazan State University provides in- formation about life of peoples in different corners of the world. It also con- tains materials collected by Ivan Simonov during the Antarctic expedition of Bellinshauzen and Lazarev. Also of interest for visitors to Tatarstan can be memorial flats of Musa Jalil and Nazib Zhiganov, museums of Yevgeny Baratynsky, Maxim Gorky, Baki Urmanche, Salikh Saidashev in Kazan, Jaroslav Hašek in Bugulma, Ivan Shishkin, Marina Tsvetayeva and cavalry maiden Natalya Durova in Yelabu- ga. 1.13. EDUCATION AND SCIENCE Tatarstan is a region boasting huge educational and scientific potential. 135,000 people are engaged in the sphere of education. The preschool education in the Republic of Tatarstan is represented by 1,903 preschool educational institutions where 162,200 children are raised and educated; 99.5% of them are municipal establishments. In addition, there are 2 state-run and 6 private kindergartens. The coverage of pre- school education in the republic is 72%. General secondary (complete) education is compulsory and free. There are 2,298 comprehensive schools in the republic; the number of students attending them is some 386,000. The republic has 243 comprehensive es- tablishments implementing advanced programmes for 111,700 students, which represents 29% of the total number of students. The schools in the republic host over 100 federal-level experimental platforms. After completing their compulsory education, over 90% of students continue in comprehensive schools or in the establishments of secondary special education. At present, the demand for personnel and experts in various sectors of the republic’s economy is met for over 70% through the local system of basic and secondary vocational training which is represented by 43 basic vocational establishments and 103 secondary vocational establishments where over 70,000 students are trained. There are 93 institutions of higher vocational education in the Republic of Tatarstan (including 23 state-run, 14 non-state and 56 branch establish- ments), mostly in Kazan, and some 100 scientific research institutes and design offices. Based on the Ulyanov-Lenin Kazan State University, the Kazan (Volga Re- gion) Federal University was founded by the Decree of Russian President Dmitry Medvedev. The strategic mission of the University is the arrangement and coordina- tion of the work on providing balanced support to large-scale programmes of social and economic development of territories and regions compris- ing the Volga Federal District with highly-skilled personnel and scientific, technical and technological solutions, including the same by bringing the results of intellectual activities to practical application. 1.11. MAJOR CITIES Tatarstan is a highly urbanised region with 74 percent of the population living in urban areas. The Republic is divided into 43 districts, 21 cities (of which 14 are subordinate to the republic), 21 urban settlements, and 910 village councils. The major cities are Kazan, Naberezhnye Chelny, Nizh- nekamsk, Almetyevsk, and Zelenodolsk. Naberezhnye Chelny is located in northeast Tatarstan on the bank of the Kama River. The city is mono-industrial, nearly its entire population being somehow associated with the city-forming company, Kamsky Motor Works (OAO KamAZ), manufacturer of heavy-duty trucks and their components. The Nizhnekamsk Hydroelectric Power Station supplies electric power to the city and the whole economic region. The services of Begishevo International Airport cover the north-east of the republic. Nizhnekamsk originated during the construction of the petrochemical plant in 1961. The city is one of the largest centres of petrochemical in- dustry in Russia. Major manufacturers are OAO  Nizhnekamskneftekhim, OAO Nizhnekamskshina, and Elastik Plant. Almetyevsk is the largest centre of crude oil production in Tatarstan. Here starts Druzhba oil pipeline, through which Tatarstan exports its crude oil. The largest company in the region is OAO Tatneft (production of crude oil and petroleum gas).The Almetyevsk Petroleum Institute plays an impor- tant role in training personnel for the main industry of the republic. Zelenodolsk is an important transport junction in the west of the repub- lic. The products of the Shipbuilding Plant and Sergo Plant located in the city are in demand far outside of Tatarstan. 1.12. CULTURE Due to historical and geographical factors, Tatarstan is located on the junction of two large civilisations, the Orient and the Occident, and this to a large extent accounts for its diversity and cultural wealth. The Tatars keep centuries-old traditions of their ancestors, the Boul- gars, who managed to achieve high level of cultural development, hav- ing combined their Turkic roots with Arabic influence due to adoption of Islam in the 10th century. It became the basis for further development of the Tatar culture at large. Specific place in life of the Boulgars and the modern Tatars is given to literature. Traditions established by poet Koul Gali in the 13th century were maintained by Mahmud Gali, Saif Sarai, and Muhamedyar. Among the outstanding personalities of the Tatar culture in the 19th and 20th centuries, one cannot but mention Gabdullah Tukay, Kayum Nasyri, Shigabutdin Marjani, Galiaskar Kamal, Fatikh Amirkhan, Rudolf Nuriev, Baki Urmanche, Galimjan Ibragimov, Gayaz Iskhaki, and Musa Jalil. There are 7 historical complexes in the territory of the republic: Bulgar, Bilyar, city complexes of Kazan, Yelabuga, Chistopol, Sviyazhsk, and the Raifa Monastery. Of the greatest interest for visitors to Tatarstan is the capi- tal of the republic, Kazan, a city with a millennial history. All architectural buildings of this city date back to the second half of the 16th century up to the 20th century. More ancient history can be judged from archaeologi- cal excavations. The main sightseeing attraction in Kazan is the Kremlin, the current residence of the Tatarstan President. It boasts a harmonious combination of the Annunciation Cathedral, the Syuyumbike Tower (the architectural emblem of the city) and the Kul-Sharif Mosque (the recon- structed relic of the Tatar people). Other places of interest in Kazan include the main building of the Kazan State University (1825), the Azimov Mosque (mid-19th century), the St. Peter's and Paul's Cathedral (1723-26), and the Marjani Mosque (1766). Theatres At present, there are 12 professional theatres in Tatarstan, 7 of them in Kazan. Most popular in and outside of the republic is the Musa Jalil Tatar State Opera and Ballet Theatre functioning since 1939. It hosts annual in- ternational opera festivals named after Fyodor Chaliapin and classic ballet festivals named after Rudolf Nuriev with participation of well-known per- sonalities of the world stage. Its traditional tours in European countries have brought international fame and popularity to the theatre's troupe. The Galiaskar Kamal Tatar State Academic Theatre is known by staging the works of Tatar dramatic art classics, such as Naki Isanbet, Galiaskar Kamal, Farid Yarullin, Tufan Minnullin, etc. Its tours to Moscow and coun- tries with large Tatar communities have also become a tradition. The Vasily Kachalov Kazan Academic Russian Great Drama Theatre is a constant participant of international drama festivals and enjoys wide pop- ularity among Kazan residents and visitors.
  7. 7. 8 1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN Republic of Tatarstan: General Overview, State System, Economy 9 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy pions (1998, 2006, 2009, 2010), European Cup winners (2007), and Conti- nental Cup winners (2008). The KamAZ Master team (entirely composed of KamAZ-employed sportsmen), which has become a thunderbolt for all participants of the legendary Dakar Rally, is the only works team in Russia. In 2010, KamAZ team won the prize for the ninth time. Zenith-Kazan volley- ball team, then Dinamo Tattransgaz, became the champion of Russia and the winner of the Russian Cup for the first time in 2007. In 2008, the team won the European Champions Cup and became the bronze prize-winner of the Russian Volleyball Super League; in 2009, the team again became the champion of Russia. The year of 2010 went down in history of the club with a golden double: the Russian Cup and the gold in the national champion- ship. UNICS Kazan Basketball Club became the silver finalist of the 2007 Russian Basketball Cup, and in February 2009 it won the Russian Cup. The 2009-2010 season was resulted for Kazan basketball players in the bronze medals of the Russian Championship. Sintez water polo team became in 2007 the Champion of Russia and the winner of the LEN Trophy, the Eu- rope’s second club trophy. The next year Tatarstan water polo players won silver medals of the Russian Championship; in 2009 they complemented their collection with bronze medals, and repeatedly became silver prize- winners in 2010, having also added the Russian Cup to their awards. Since 2003, the Dinamo Kazan grass hockey team, consisting for the most part of students from Dinamo Republic’s Special Junior Sports School of Olympic Reserve, seven times became the Cham- pion of Russia. In 2013, Kazan will host the 27th World Summer Universiade. Its successful holding would enable Kazan to make a considerable breakthrough both in sports, including student’s sports, and in the develop- ment of business, tourism, and mass media as well. 2.1. ECONOMIC OVERVIEW The Republic of Tatarstan is located in the centre of the Russian Fed- eration on the East European Plain, at the confluence of the two largest European rivers, the Volga and the Kama. The total area of the republic is 67,800 square kilometres (0.4% of the total area of the Russian Federa- tion). Tatarstan is among the group of Russian regions with high level of social and economic development. In 2009, the Republic of Tatarstan ranked 5th among the constituent en- tities of the Russian Federation in the industrial output (1st in the Volga Federal District), 6th in the volume of construction jobs (1st in the VFD), 6th in the housing construction (2nd in the VFD), and 9th in the retail turnover (2nd in the VFD). Furthermore, the republic is among the regions with the lowest prices. In 2009, the gross regional product (GRP) of the Republic of Tatarstan was estimated at RUR 878.0 billion (in basis prices), which is a decrease of 4.2% in the economic growth of the republic in comparable prices of the figure for previous year. GRP of the Republic of Tatarstan Over a period of 2000 to 2009, the gross regional product increased by 1.8 times in comparable prices. The basis of the gross regional product in the Republic of Tatarstan is formed by the industrial production. The Republic of Tatarstan holds leading positions in the Russian Federa- In 2009, the Tupolev Kazan State Technical University was awarded the status of a “national research university”. In 2010, the “national university” status was awarded to the Kazan State University of Technology. Tatarstan has been famous for its high level of academic, higher educa- tion and industrial science. Many discoveries of universal importance, such as non-Euclidian geom- etry, fundamentals of organic chemistry, electron paramagnetic resonance which has become a basis for present-day magnetic resonance imagers, have been made in the Kazan State University, one of the oldest Russia’s high schools. Active work is currently underway in Kazan in the forefront of science and technology: nanotechnologies, medicine, supramolecular chemistry, metal complex catalysis, petroleum chemistry and biotechnology, chemis- try and technology of high-molecular compounds, combined physical and mathematical simulation and design, energy and resource saving tech- nologies. The Decree of the President of the Republic of Tatarstan dated Septem- ber 30, 1991 established the Academy of Sciences of the Republic of Tatar- stan, which comprises 10 academic institutions. At present, it unites 40 full members, 79 correspondent members, 24 honorary members, and 4 foreign members. The scientists in the Academy have good ties and cooperation agreements with scientific institutions of over 40 foreign countries and scientific organisations in the majority of Rus- sian regions. The Republic ofTatarstan has instituted and annually awards state prizes in science and technology, alongside with 12 personal awards of the Acad- emy of Sciences of the Republic of Tatarstan, including two international ones. There are also 15 grants to students in the institutions of higher vo- cational education. 1.14 TATARSTAN: THE SPORTS REPUBLIC Some 20.6 percent of population in Tatarstan (775,000) go in for physi- cal and sporting activities on a regular basis. Follow- ing the results of 2009, which was declared the Year of Sports and Healthy Lifestyle in Tatarstan, Ka- zan was recognised by an all-Russia poll as a sports capital of Russia. Further- more, a total of 150 sports facilities were put into op- eration, including 5 indoor arenas with artificial ice, 5 indoor swimming pools, and a trap shooting facility. Beginning in 2002, the capital of Tatarstan be- comes a regular place of holding major national and international competi- tions with participation of representatives of all Rus- sian regions and athletes from various countries. Kazan hosted the First Summer Spartakiade of Russia (2003, over 6,500 participants), International Znamensky Brothers Memorial in track and field athletics (2004, 2005); Bandy World Champion- ship (2005), finals of the 1st Russian Summer Universiade (2008), Olympic Qualifying Grass Hockey Tournament for Women (2008), Ice Hockey World Junior Championship (2008), etc. In 2009, Kazan became a venue for holding the First National Sports Fo- rum: Russia the Sports Power attended by President of the Russian Fed- eration Dmitry Medvedev. Within the event, five major Russian and inter- national sports competitions were held with participation of over 1,600 athletes in rhythmic gymnastics, belt wrestling, rugby sevens, track and field athletics, and wheelchair basketball. Good results are shown by Tatarstan athletes in team sports. Rubin Foot- ball Club is the two-time champion of Russia, holder of the CIS Cup, par- ticipant of the UEFA Champions League where it recorded a win in group stage over Spanish Barcelona, the best club of the world. Ak Bars Hockey Club became the 2009 winner of the Russian Open Championship and the champion of the Kontinental Hockey League, having won the first Gagarin Cup and repeating its success in 2010.The“Barses”are now four-time cham- 2. ECONOMY
  8. 8. 10 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy 11 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy production and distribution of electric energy, gas, and water, RUR 77 bil- lion (IPI of 90.5%). In 2009, the crude oil production totalled 32.4 million tonnes; some 27,900 trucks, 5,400 cars, 6.1 million car tyres, 3.1 million truck tyres and some 407,300 tonnes of synthetic rubbers were manufactured. Production value of shipped goods in manufacturing industry 2.3. FUEL AND ENERGY SECTOR One of the most important factors contributing to the sustainable eco- nomic development of the Republic ofTatarstan is its reliable provision with natural gas.This mainly became possible due to the longstanding coopera- tion with OAO Gazprom on the basis of the Cooperation Agreement and programmes for economic and R&D interaction between OAO Gazprom and the Government of the Republic of Tatarstan. The Republic of Tatarstan is one of the largest consumers of natural gas in the Volga region of Russia. Gas consumption in the republic in 2009 to- talled 13.5 billion cubic metres. The Republic of Tatarstan is high on the list of Russian regions in the installation of gas services. As of the early 2009, the gas supply coverage in the Republic of Tatarstan was 98%. Electric power industry Power industry of the Republic of Tatarstan is a fundamental sector for the development of virtually all branches of the economy in the region. It completely meets the demand in the republic for electrical and heat en- ergy. The energy system of the Republic ofTatarstan incorporates two cogen- eration companies producing heat and electrical energy, OAO Generiruy- ushchaya Kompaniya and ZAO TGK Urussinskaya GRES; grid companies including OAO Setevaya Kompaniya, the largest one both in the length of electric grids and composition of basic equipment and in the amount of electrical energy (power) transmitted; heat network enterprises render- ing heat transfer services; and one provider of last resort in the republic, OAO Tatenergosbyt. 2.4. OIL, GAS, AND CHEMICAL INDUSTRIES Oil production According to the Territorial Board of the Federal Statistics Service in the Republic of Tatarstan, the production of fossil fuels is represented by OAO Tatneft oil company and 34 small oil-production companies carrying out their activities in the territory of 21 municipalities of the republic. With a view of implementing the Programme for Development of Fuel and Energy Complex of the Republic of Tatarstan for 2006-2020 and ration- al use of oil and gas resources, the Resolution of the Cabinet of Ministers of the Republic of Tatarstan No. 531-r of April 28, 2009 was adopted on the volumes of oil production by oil companies in the republic in 2009. In 2009, a total of 32.4 tonnes of crude oil were produced in the Republic of Tatarstan (including OAO Bashneft), which is a 0.7% increase compared to 2008. OAO Tatneft produced some 25.6 million tonnes and small oil-pro- duction companies, 6.6 million tonnes. The contribution of the small oil companies to the total oil production is increasingly growing, in good compliance with the development strategy, and reached 20.5% in 2009. Last year this figure was 20%. In 2009, the Resolution of the Cabinet of Ministers of the Republic of Tatarstan No. 1049-r of August 21, 2009 specified the scope of develop- ment and exploratory drilling by oil-production companies of the republic for 2009. Oil companies in 2009 drilled a total of 601,800 metres, which is by 3.7% more than planned. In 2009, the exploratory metreage drilled was below than that planned in the programme for development of fuel and energy sector. Despite the adjustments in its current plans due to the world economic crisis and great drop in oil prices, Tatneft continues the implementation of the Programme adopted in 2008 for enhancing its corporate perform- ance management and strengthening the financial and economic stand- ing of the company. The priorities of this programme are to maintain tion in the production of a number of key industrial goods. The Republic manufactures (in percent of the total Russian output): • over 40% of styrene; • some 30% of centrifugal electric pumps for oil production; • some 60% of diesel trucks with fully loaded weight of 14-40 tonnes; • 100% of polycarbonate; • over 50% of polyethylene; • some 30% of automotive tyres; • over 40% of synthetic rubbers; • some 6.5% of crude oil. GRP structure (2009) Contribution of products manufactured by Tatarstan enterprises to the total Russia’s production output (2009) 2.2. BASIC FIGURES OF MANUFACTURING INDUSTRY The Republic ofTatarstan is one of the main industrial regions of the Rus- sian Federation with strong industrial base in the field of chemistry and mechanical engineering concentrating largest enterprises, the products of which are known far outside of Russia. The main budget-forming sector of the Tatarstan economy is its oil, gas, and chemical industries. Companies of Tatarstan produce crude oil, manu- facture tyres, synthetic rubbers, polyethylene, and a wide range of oil refin- ing products; also underway is the construction project of a largest plant for deep processing of heavy high-sulphur oil. Leading industries of mechanical engineering in Tatarstan are automo- tive and aircraft engineering manufacturing helicopters, airplanes, aircraft engines, heavy-duty trucks, compressors, oil and gas pumping equipment. Tatarstan is a home for unique plants of shipbuilding, compressor engi- neering, electric and radio instrument-making industries, enterprises of defence industry and many others. Structure of manufacturing industry in 2009 In the structure of industry, manufacturing activities were the largest contributor accounting for 57.9%. Mining operations accounted for 33.1%, and production and distribution of electric energy, gas and water, for 9.0%. In manufacturing activities, the largest contribution was made by ve- hicles and equipment with 12.3%, followed by chemical products with 11.9%, oil products with 9.4%, and foodstuffs with 7.1%. In 2009, the value of shipped goods of own manufacture, works per- formed and services rendered by own forces reached RUR 859.0 billion.The industrial production index (IPI) recalculated with allowance for small busi- nesses and informal economy constituted 92.3% as compared to 2008 (for reference: 89.2% in the Russian Federation). Broken down by kinds of economic activities, the production value of shipped goods was as follows: in mining operations, RUR 284.6 billion (IPI of 100.6%); in manufacturing activities, RUR 497.4 billion (IPI of 86.8%); in Production of crude oil in the Republic of Tatarstan, ‘000 MT
  9. 9. 12 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy 13 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy Plants which would make it possible to carry out deep processing of the crude oil produced in the Republic of Tatarstan and to make oil products and petrochemicals. In 2010, OAO Tatneft plans to put into operation a start-up complex of the oil refining plant with capacity of 7 million tonnes of crude oil a year. Chemical and petrochemical industry Petrochemical enterprises account for about 17% of the republic’s indus- trial output and some 12% of the national output of petrochemicals. Today, the republic’s enterprises manufactured some 60% of the Russia’s polystyrene, over 40% of synthetic rubbers, over 30% of polypropylene and tyres, and over 50% of polyethylene. In 2009, petrochemical enterprises of Tatarstan manufactured and shipped over RUR 142 billion worth of goods. Industrial production index in the chemical branch constituted 107.5%, while in the production of rub- ber and plastic products it was 77.4%. Even under the conditions of limited financial resources, key enterprises continue the implementation of their large-scale investment projects. Polyethylene production with capacity of 230,000 tonnes a year was put into operation in OAO Nizhnekamskneftekhim. The construction of the all-steel tyre plant with capacity of 1.2 million tyres a year has been completed in the city of Nizhnekamsk with invest- ments from Tatneft. The production of non-woven Spanbond with capacity of over 10,000 tonnes a year has been launched in SEZ Alabuga (ZAO Polimatiz). The Industrial Park Kamskiye Polyany hosted the lines for the multifila- ment polypropylene yarn production with capacity of up to 2,000 tonnes a year and the stretch film production with capacity of over 8,000 tonnes a year. Nefis Cosmetics has expanded its production of consumer goods up to the international standards. OAO Kvart has launched the production of products from dynamic ther- moplastic elastomers for the needs of automotive industry. Small businesses in the industry focused on the production of chemicals begin to play an increasingly important role in the republic. A number of them produce goods with an economic output well comparable with that of a medium-sized enterprise. For example, Safplast, Danaflex, Polimatiz are the enterprises with a billion turnovers. Also vigorously developing are chemical businesses in Kamskiye Polyany and in the territory of Khimgrad. This complies favourably with the decisions of the republic’s leadership about the deeper processing of raw chemicals to the converted products with high added value. 2.5. MECHANICAL ENGINEERING AND METALWORKING In 2009, the mechanical engineering enterprises manufactured com- modities to a total of RUR 177.2 billion, the industrial production index in this sector constituted 69.4%; this accounted for 20.6% of the total com- modities produced in the manufacturing industry. A year elapsed since the onset of the financial crisis had a drastic impact on the priorities and environment of economies in the Russian Federation and the world community in general. This resulted in the falling consumer demand for investment-oriented products, and primarily, for mechanical engineering products. The greatest decline in the production in this sector was due to a re- source-intensive pattern of the mechanical engineering enterprises and rather low labour productivity, which entailed low competitiveness of eco- nomic entities and their products. To overcome the consequences of the crisis, virtually all large and me- dium-sized enterprises of mechanical engineering and instrument making industries worked out their anti-crisis programmes, the implementation of which, along with the continuous work on the mastering of new kinds of competitive products, largely promoted the stabilisation of the situation in these industries. Within the framework of its programme, OAO KamAZ is performing the work on optimising the expenditures (purchases of completing parts, wage fund, administrative expenses), increasing labour productivity, selling non- core assets, and on a number of other areas. This enables the company, even under conditions of the crisis, to expand its consumer market sales niche in virtually all segments of the manufactured vehicles: dump-body trucks, platform vehicles, and specialised machinery. For increasing the competitiveness of its truck line, OAO KamAZ was par- ticipating in the creation and successful development of the joint venture companies with world’s leading automotive component manufacturers, such as OOO Knorr-Bremse Kama (drum-type and disk brakes), ZAO Cum- mins Kama (engines), Federal Mogul Naberezhnye Chelny (piston rings and sleeve assemblies), OOO ZF Kama (automatic transmissions). Strengthening the market positions of the republic’s automotive indus- try was promoted by an efficient state support rendered at the levels of the Government of the Russian Federation and the Cabinet of Ministers the the profitable level of oil and gas production, to ensure full replenishment and improvement in the structure of reserves, to expand the resource base, to further develop oil refining, and to build up retail business. In accordance with the programme for the development of fuel and en- ergy sector of Tatarstan, the achieved level of crude oil production in the republic should be supported through exploiting the deposits of natural bitumens. OAO Tatneft is currently performing pilot operations at Ashalchinskoe bitumen deposit. The company has mastered the technology of drilling wells with parallel horizontal wellbores and developed its own technol- ogy of steam-assisted gravity drainage for heavy oil deposits. In 2009, it extracted 18,400 tonnes of extra-viscous oil. In 2009, OAO Tatneft continued the work on implementing its strategic task of increasing the stock of hydrocarbons, including those outside of theRepublicofTatarstanandtheRussianFederation.Atotalof16newde- posits, including 10 in the Republic ofTatarstan, 3 in Samara Region and 2 in Orenburg Region have been discovered. A new oilfield was discovered in Syria and 4 exploratory wells were drilled identifying the oil productive horizon with crude oil flowing at the rate up to 150 cubic metres per day. Two exploratory wells were drilled in Libya; when testing the first one a crude oil inflow was obtained in the amount of 103 cubic metres per day, while the development of a second well yielded 130 cubic metres per day. Oil refining According to State statistics, the value of shipped goods of own manu- facture, works performed and services rendered by own forces in the pro- duction of oil products totalled RUR 80.5 billion in 2009. Industrial produc- tion index constituted 104.7%. In 2009, OAO TAIF-NK produced RUR 75 billion worth of oil products. OAO  TAIF-NK is implementing an anti-crisis programme for 2009-2012, which includes measures for optimising the logistics structure and com- mercial expenses, technological measures of aimed at cutting processing costs, organisational measures aimed at decreasing the administrative ex- penses. For the purpose of making products with higher added value, OAO TAIF- NK is implementing a number of investment projects. In 2010, underway is the implementation of the projects for increasing the capacity of catalytic cracking installation in the gasoline plant up to 1 million tonnes of crude oil and building the facilities for processing of the heavy oil residue (bring- ing the oil refining depth to 98%). At present, a feasibility study has been completed and contracts for base design are scheduled for signing.The im- plementation of this project would allow the company to increase its profit up to US$ 500 million a year. Another major trend of oil refining development in the republic is the ongoing construction of the Complex of Oil Refining and Petrochemical Production of some oil products, % Metreage of development drilling in the Republic of Tatarstan,‘000 metres
  10. 10. 14 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy 15 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy mechanical engineering industries of the Republic of Tatarstan. Experts of OAO Tatneftekhiminvest-Holding, jointly with the Ministry of Industry and Trade of the Republic of Tatarstan, elaborated the Concept of Developing the Cooperation in Oil, Gas, Chemical, and Mechanical Engineering Indus- tries of the Republic of Tatarstan. Defence industry enterprises The Republic ofTatarstan is a home for 13 large and medium-sized enter- prises and over 10 scientific research institutions and design bureaus being a part of the Russia’s defence industry and engaged in the sphere of am- munition production, special chemistry, aircraft engineering, shipbuilding, production of control systems and conventional arms. In 2009, large and medium-sized enterprises of defence industry ac- counted for 7% of the total production in the economy the Republic of Tatarstan; these enterprises produced RUR  38.6 billion worth of goods, which constituted 102.2% of the figure for 2008. The substantial growth in the production was recorded by the following enterprises: OAO Gorky Zelenodolsk Plant (119.7%), OAO Kazan Helicop- ter Plant (111.2%), OAO Gorbunov Kazan Aircraft Production Association (105.8%), and OAO Kazan Electrotechnical Plant (134.6%). 2.6. LIGHT, FOOD-PROCESSING, AND TIMBER INDUSTRIES Light industry The light industry in the Republic ofTatarstan is represented by 567 busi- ness entities, of which 24 are large and medium-sized enterprises. Some 90% of the companies are private. The light industry’share of the total production of goods and services in the Republic of Tatarstan was 0.4%. In 2009, the industry shipped RUR 3.1 billion worth of goods. The indus- trial production index in textile and sewing branches was 99.6%, in leather, leather products and footwear, 86.5%. In 2009, a new enterprise, ZAO Polimatiz, was established in the Free Economic Zone Alabuga focused on the production of a wide range of hi- tech polymeric materials and products used in various industries (such as Spanbond and Meltblown). The production facilities of the enterprise are capable of releasing up to 10,000 tonnes of nonwoven cloth a year, to a total of RUR 700.0 million. Similar production is launched in Nizhnekamsk in OOO Elastik. Since the beginning of the year, enterprises recorded RUR 1,086.4 million of investments into fixed capitals. For the purpose of creating the conditions to attract investment to light industry and to set up competitive, high-technology productions in the republic, the Concept of Light Industry Development in the Republic of Tatarstan for 2007-2010 has been adopted. Food-processing industry In 2009, the enterprises making foodstuffs shipped RUR  61.3 million worth of goods; the corresponding industrial production index reached 106.7%. Growth of production volumes in this industry was achieved owing to the development of productive forces, first of all, through investing into up-to- date technologies and equipment, which make it possible both to raise the output per worker and to enhance the competitiveness of products. Timber industry Timber industry of the Republic of Tatarstan is presented by two kinds of economic activities: Republic of Tatarstan. In 2009, about 8,300 vehicles were sold under the government programmes for procurement of KamAZ vehicles (to federal enforcement authorities, constituent entities of the Russian Federation, OAO State Transport Leasing Company, OAO Rosagrolizing). In addition, the Government of the Russian Federation rendered state support to OAO KamAZ by granting governmental guarantees for raising credits of commercial banks in the total amount of RUR 3.6 billion. OAO KamAZ has plans to increase in 2010 its output and sales by 8% compared to 2009. In the areas being vacated due to implementation of the anti-crisis programme, several projects of Daimler Corporation will con- tinue, including the Mercedes-Benz Trucks Vostok joint venture company and joint activities with world’s leading manufacturers of automotive com- ponents, which would make it possible to gradually increase the competi- tiveness of automotive vehicles. Inclusive of federal and republic’s state- managed resources, the work will be continued on raising up to RUR 10 billion for the implementation of a number of investment projects. The 2009 results for the factories of OAO Sollers located in the Repub- lic of Tatarstan were as follows: OAO  Sollers-Naberezhnye Chelny deliv- ered 5,900 vehicles worth RUR 3.4 billion; OOO Sollers-Yelabuga delivered 4,500 trucks, 535 cars and over 2,000 minibuses to a total of RUR 5.8 billion; OAO Severstal-Isuzu delivered 732 trucks worth RUR 615 million. Business development prospects of Sollers in the Republic of Tatar- stan are associated with the Agreement signed between FIAT S.p.A. and OAO Sollers on the establishment of new facilities in the territory of the republic to manufacture up to 500,000 cars a year, and arrangement of a pool of suppliers to provide components for their assembly. The availabil- ity of such pool for supplying automotive components (including stamped parts) in the same location with car assembly facilities will allow Sollers en- terprises to ensure high degree of localisation of FIAT Ducato and ISUZU vehicles manufactured in the territory of SEZ Alabuga. In summer 2009, the Ministry of Industry and Trade of the Republic of Tatarstan and OOO Sollers-Yelabuga have signed the Protocol on Collabo- ration regarding the production of components for assembly of Fiat Duca- to vehicles. Within the automotive component development programme, the production of seats was launched jointly with Eisrenhausen и Daewoo; production of plastic interior and exterior parts, jointly with Ergom and OOO Khiton-Plast; and production of exhaust systems, jointly with Mag- netti Marelli. State support is being rendered to small businesses located on the premises of OAO Kama Industrial Park Master. This programme includes granting rent holidays for the permanent part of the rent subject to timely and full payment of the variable part of the rent, debt offsets for the lessees supplying their products to OAO KamAZ through the mechanism of assign- ing the rights, and deferral of rent payments until the end of 2009. As of January 2010, KIP Master hosted 134 enterprises and organisations with a total number of 1,362 employees. Its 2009 production valued at RUR 4,306 million. In 2009, OAO PO YelAZ introduced new modifications of special machin- ery for oil and gas industry, including hoist unit APRS-50 on KamAZ-65115 chassis, hoist unit APR-60/80, hoist unit APR-80, and cementing unit ATs-32. In 2009, Design Bureau for Road Equipment was established under this enterprise.ElevenmultifunctionalroadvehiclesUDM-80ЕonKamAZ-65115 chassis were manufactured, pilot models of road master vehicles MDM-A, MDM-E on Fiat-Ducato and ISUZU bases were designed and released to- gether with OOO Sollers-Yelabuga. Active work is underway for seeking new orders for the production of non-standardised equipment and mechanical facilities for equipping new all-steel tyre plant of Nizhnekamsk Tyre Factory and building metal struc- tures for OAO TANECO Oil Refining and Petrochemical Complex. Agricul- tural modification of MK-10E on MTZ-82.1 tractor base was introduced. Increase in the competitiveness of the company is promoted by introduc- ing the measures envisaged by the Lean Production methodology. For some time past, these organisational and technical measures resulted in lowering the expenses by RUR 80.8 million, including those for materials (RUR 32.4 million), for power resources (RUR 14.5 million); through the sales of unmarketable products, RUR 5.0 million, etc. The anti-crisis programme for 2009-2011 adopted in February is being implemented in OAO Kazankompressormash.The programme’s actions are grouped in three lines: aggressive marketing, optimisation of resource us- age, and efficient management. Economic benefit of their introduction in 2009 totalled some RUR 100 million. This work largely promotes the successful participation of the repub- lic’s compressor manufacturers in the tenders conducted by largest Rus- sian and foreign companies. In 2009, OAO Kazankompressormash won a RUR 1.08 billion tender for supply of products to OAO Lukoil. Delivery of compressors for Angara missile complex in the amount of some RUR 400 million, for OAO SIBUR Holding in the amount of RUR 2 billion, a number of other already signed contracts – all this allow the enterprise to safely look ahead estimating a 16% production growth in 2010. In pursuance of the resolutions of the Cabinet of Ministers of the Re- public of Tatarstan No.1506-r of 16.11.2009 and No.778-r of 26.06.2009, a structure has been created as a part of OAO Tatneftekhiminvest-Holding to coordinate the interaction between enterprises of oil, gas, chemical, and
  11. 11. 16 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy 17 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy 564 616 618 1056 1137 1173 0 200 400 600 800 1000 1200 1400 2007 2008 2009 Wood processing and manufacture of wood products, except for furniture Pulp and paper production • wood processing and manufacture of wood products, except for furniture; • pulp-and-paper production. In 2009, the timber industry generated RUR 11.5 billion in total econom- ic output, with the industrial production index of 80.7%. The value of production in the wood processing and manufacture of wood products was RUR 3.7 billion, with the industrial production index of 57%. The value of production in the pulp and paper production was RUR 7.8 billion, with the industrial production index of 104%. The drop in the production output of wood processing and manufacture of wood products was due to the decrease in consumption in foreign mar- kets and discontinuation of some construction projects in 2009. A major task of the timber industry for 2010 is the re-equipment of the enterprises in the industry, introduction of energy and resource saving technologies, and salvaging the waste by these enterprises as energy re- sources. The Resolution of the Cabinet of Ministers of the Republic of Tatarstan No.61 of 10.02.2010 approved the“Strategy of Forestry Development in the Republic of Tatarstan until 2018“. This strategy provides for the creation of timber processing facilities in the locations with unused softwood aspen and birch forests for the production of high-quality wood particle and MDF boards. 2.7. INTRODUCTION OF QUALITY MANAGEMENT SYSTEM Once the Programme for Improving the Quality of Products and Services in the Republic of Tatarstan for 2004-2006 (Programme“Quality”) was com- pleted in Tatarstan, this implied the end of the stage of evaluating the ap- proaches to the use of ISO 9000 standards in the systems of management of the republic’s economic entities. As a result, more than 350 republic’s enterprises and organisations of different form of ownership and lines of business have confirmed the compliance of their quality management sys- tems to ISO 9001 standard. Number of enterprises that certified their QMS in compliance with ISO 9001 Environmental management systems were certified in compliance with ISO 14001 standard by 16 organisations of the republic. Five enterprises have safety management systems certified in compliance with OHSAS 18001. IPI in timber industry sectors in 2007–2009, in percent Authority for certification of goods and services: ZAO Republic’s Certification Methodical Centre - Test Tatarstan Authority for certification of quality management systems: ZAO Republic’s Certification Methodical Centre - Test Tatarstan Authority for certification of integrated management systems: ZAO Republic’s Certification Methodical Centre - Test Tatarstan 49, Kosmonavtov St., Kazan 420061, Republic of Tatarstan Head: Sergey Gogin Tel.: (843) 2952302 / (843) 2796281 E-mail: test-tatarstan@rsmc.ru Authority for certification of quality management systems: Representative Office of Certification Association Russkiy Registr, OOO Russkiy Registr – Povolzhye 26, Vishnevsky St. (Central Depository bldg.), Kazan 420043, Republic of Tatarstan Head: Andrei Yashin Tel./Fax: (843) 236-44-73, 236-41-73 E-mail: kazan@rusregister.ru, jashin@tatcsm.ru Authority for certification of quality management systems: ROSSERT, OOO Volga Region Certification Training Methodical Centre Bldg. 2, 34, Subirsky Trakt St., Kazan 420029, Republic of Tatarstan Head: Gennady Sidorov Tel.: (843) 5109822, 5109823 / (843) 5109822, 5109823 E-mail: gisid@mail.ru Authority for certification of integrated management systems: OOO Tsentr Kachestva Office 409, bldg. 2, 34, Subirsky Trakt St., Kazan 420029, Republic of Tatarstan Head: Ilfat Khabibullin Tel.: (843) 2581772 / (843) 5109999 E-mail: tatgm@km.ru Authority for certification of quality management systems: OAO Tsentr ROSSERTIFIKO Authority for certification of radio electronic products and household electric appliances: OAO Russian Centre of Tests and Certification of Petrochemical Products Authority for certification of chemical, petrochemical and oil refining products: OAO Russian Centre of Tests and Certification of Petrochemical Products P.O.B. 102, bldg. 2а, 100, Vosstaniya St., Kazan 420095, Republic of Tatarstan Head: Davyd Gelman Tel.: (843) 5422868 / (843) 5425140, 5425112 E-mail: ros@kgts.ru Authority for certification of medical tools and equipment: ANO Centre for Certification of Medical Tools and Equipment 12, Saidashev St., Kazan, 420021, Republic of Tatarstan Head: Natalia Novikova Tel.: (843) 2933264 / (843) 2933264 E-mail: medsert@mail.ru Authority for certification of automotive products: Chamber of Commerce and Industry of Naberezhnye Chelny and Trans-Kama Region 122, Usmanov St., Naberezhnye Chelny 423826, Republic of Tatarstan Head: Irekzhan Bakirov Tel.: (8552) 562345, 724513 / (8552) 562345, 724513 E-mail: tpp@016.ru Authority for certification of electric equipment: АNО Test Centre Soyuz 5, Chistopolskaya St., Kazan 420066, Republic of Tatarstan Head: Nikolai Petryakov Tel.: (843) 5713242 / (843) 5454598 Authority for certification of chemical and petrochemical products: Khimprom, OOO Interregional Centre for Tests and Certification of Technologies, Products, and Goods 1, Vasilchenko St., Kazan 420095, Republic of Tatarstan Head: Yulia Safina Tel.: (843) 5121538 / (843) 5121538 E-mail: himpromsert@mail.ru Authority for certification of foods: FGU Federal Centre of Toxicological and Radiation Safety of Animals Nauchny Gorodok-2, Kazan 420075, Republic of Tatarstan Head: Albert Chernov Tel.: (843) 2395329, 2395342 / (843) 2395329 E-mail: vnivi@mail.ru Authority for certification of foods: FGU Russian Agricultural Centre (branch in the Republic of Tatarstan) 14, Daurskaya St., Kazan 420059, Republic of Tatarstan Head: Takhir Khadeyev Tel.: (843) 2778209 / (843) 2778209 E-mail: rscrt@mail.ru For the certification of goods, services and management systems, corresponding infrastructure has been created In the republic. Number of organisations engaged in wood processing and manufacture of wood products, pulp-and-paper production in 2007-2009
  12. 12. 18 2. ECONOMY Republic of Tatarstan: General Overview, State System, Economy 19 3. AGRICULTURE Republic of Tatarstan: General Overview, State System, Economy The total ground area of the republic is 6.8 million hectares, including farmland of 4.5 million hectares, of which 3.5 million hectares are arable land. Total population living in rural areas is 943,500. The agrarian sector is a large sphere of the national economy playing an important role in the life of the Republic of Tatarstan. The development of the agro-industrial complex remains one of the eco- nomic priorities of the Tatarstan leadership; the sector enjoys a consider- able governmental support. Since 2000, there is a stable growth in the crop and livestock production. The republic is ranked among top three leading regions of Russia in the total output of agricultural products and completely satisfies the demand of its residents for staple foodstuffs. Tatarstan boasts the cheapest minimum subsistence basket both in the Volga Federal District and in the country in general. In 2009, the volume of agricultural output of all agricultural organisa- tions and farming enterprises generated revenue of RUR  119.1 billion (101.5% compared to 2008).The gross yield of grains was 4.8 million tonnes (that is, some 1.3 tonnes of grains per Republic’s resident thus exceeding the internationally accepted standards). A total of 1.9 million tonnes of po- tatoes, 1.5 million tonnes of sugar beet, and 305,000 tonnes of vegetables were harvested in 2009. The developed and steady agriculture forms a basis for efficient and high-grade livestock husbandry.Tatarstan distinguishes itself by a substan- tial livestock potential. With its high density of cattle and poultry stock, the republic is increasing its contribution towards ensuring the food security of the country. The cattle stock of all agricultural producers was estimated at 1,122,000, including 424,000 cows; other livestock includes 701,000 pigs, 393,000 sheep and goats, and 13.1 million poultry. In 2009, the production of milk by all agricultural producers totalled 1,911,000 tonnes (104.9% to the level of 2008); the republic is a contributor of over 5.9% of the total milk produced in Russia. The production of live- stock and poultry for slaughter was 413,000 tonnes on a live weight basis (105.6 % of the figure for 2008). In general, with its 2.3 % of the country’s farmland, the republic accounts for 4.8% of the country’s agricultural produce. Implementing active social policies, using, as much as possible, the in- ternal reserves, and ensuring the growth of rural economy are largely pro- moted by the consistent implementation of the Programme for Agriculture Development in the Republic of Tatarstan for 2008-2012. Tatarstan has formed a really diversified economy. Its own strategic investors and private companies hold a half of the republic’s arable land and livestock, advanced technologies and machinery. They invested over RUR 90 billion into the agricultural business development. Tatarstan’s large investors are OAO VAMIN Tatarstan, ZAO HK Zolotoy Kolos, ZAO Agrosila Group, OAO Krasny Vostok-Agro, and OAO HK Ak Bars-Agro. Critical factors determining the vector of agricultural development are the efficient utilisation of available arable land, livestock and poultry; opti- misation of expenditures through introduction of resource saving and in- novative technologies; increase in the business activities of rural residents; and support of small businesses in rural areas. Due to the systematic up- grading and renovation of the enterprises in this sector, Tatarstan succeed- ed in stabilising and later increasing the production outputs, in effecting a further development as a country’s most successful agrarian region. Since the outset of the agrarian project, an opportunity has emerged to better develop the family commercial farming with governmental support. Over these years, some 45,000 credits to a total of more than RUR 9.0 billion were granted under the Plan of Promoting the Development of Small Farm Patterns. Some RUR 825 million were paid towards easing of the credits received. Some 5,600 young professionals and young families were subsidised for housing acquisition or construction in rural settlements for a total amount of RUR  3.9 billion under the Plan of Providing Young Professionals and Young Families with Affordable Housing in Rural Areas. The present-day agricultural industry with its mixed pattern of owner- ship imposes heavy demands on the professional level of managers and specialists. The educational cluster of the agro-industrial complex is a mu- tually beneficial cooperation of agricultural educational establishments and such employers as large investors and agro-industrial firms, with a view of enhancing the quality of experts’ training for their agricultural produc- tion work. The educational cluster of the agro-industrial complex comprises the Kazan State Agricultural University, the Kazan State Academy of Veterinary Medicine, the Tatar Institute for Agribusiness Personnel Retraining, 7 agri- cultural secondary schools, 40 vocational schools, 6 agrarian colleges, and comprehensive schools. Social infrastructure is also being intensively developed in rural areas. For instance, the provision of gas supply to houses and apartments in rural areas has almost been completed; up to 200 kilometres of paved roads and over hundred schools, kindergartens, community clubs and a number of other social support facilities are put into service or reconstructed each year. Over 90% of the republic’s territory is covered with cellular communications of major Russian operators. All 43 rural districts are connected to the govern- mental integrated telecommunications system of the Republic of Tatarstan. Production subcontracting Under current conditions, an actual prob- lem of the industrial enterprises of the Repub- lic of Tatarstan is an active work on enhancing the competitiveness through re-equipment, introduction of new industrial areas of focus, implementation of anti-crisis development programmes. Of great significance in achieving these tasks is the work on reducing internal process costs by introducing mechanisms of subcon- tracting, i.e. production cooperation, and by restructuring enterprises on an outsourcing basis. The essence of this approach can be described as fol- lows: “While keeping to myself the things that I can do better than others, I out-task to other performers the things they can do better than others”. With an aim of implementing the said approaches, a State non-profit fund, Production Subcontracting Centre of the Republic of Tatarstan, was created in the republic which allows solving many problems arising in the process, such as seeking the suppliers, ensuring the affordable procure- ment prices for component parts, and maintaining the quality objectives. As requested by the Ministry of Industry and Trade of the Republic of Tatar- stan, the Production Subcontracting Centre has worked out and is support- ing the automated Internet project at www.cps-rt.ru “Integrated Informa- tion Support System for Commodity Producers”. Its mission is to create and develop the infrastructure for production cooperation. The portal www.cps-rt.ru incorporates the following sections: Science and Production, Subcontracting, Goods and Services, and All Tatarstan. 1. Science and production: contains innovation projects of current inter- est; research and engineering issues of industrial enterprises which should be solved by involving research and design organisations, inventor teams, in- vestors; R&D solutions offered for the introduction by universities and secto- ral research, design and industrial organisations of the Republic of Tatarstan. 2. Subcontracting: provides for the deployment of production and tech- nology capabilities of industrial enterprises in Tatarstan for the market of subcontracting services and receipt of additional orders from other enter- prises, making it possible to organise the controlled restructuring of enter- prises on an outsourcing basis. 3. Goods and Services: renders advertising support to commodity pro- ducers, including small and medium-sized businesses, for promoting their products and services to the markets of the Republic ofTatarstan and other regions of the Russian Federations. 4. All Tatarstan: a reference system with brief contact information of en- terprises, organisations and agencies in the Republic of Tatarstan. Production Subcontracting Centre of the Republic of Tatarstan is a participant of the National Partnership of Subcontracting Development, a non-profit partnership in the Russian Federation, and cooperates with republic’s ministries and agencies. Its partners include ROR Association of Enterprises and Entrepreneurs of the Republic of Tatarstan, Association of Small and Medium-Sized Businesses of the Republic of Tatarstan, Commit- tee for Small and Medium-Sized Business Development of the Republic of Tatarstan, and Chamber of Commerce and Industry of the Republic of Tatarstan. By making use of the Integrated Information Support System for Com- modity Producers at www.cps-rt.ru, any businessman, scientist, or manu- facturer would be able to implement his project on an outsourcing basis in real time by involving experts in the corresponding field of activities to the project implementation. 3. AGRICULTURE
  13. 13. 20 4. SUMMARY OF TATARSTAN LAND MARKET Republic of Tatarstan: General Overview, State System, Economy 21 5. TRANSPORT Republic of Tatarstan: General Overview, State System, Economy The Republic of Tatarstan enjoys the unique transport geographical po- sition in the European part of Russia, its territory is crossed by key railways and waterways, highways and air routes providing transportation of goods and passengers in all directions. Such position is unique due to four available factors: • The shortest transcontinental railway in the West-East direction and the railway connecting large industrial cities of the Volga region in the Northwest-South direction; • Navigable waterways of the Russia’s main European rivers: the Volga and Kama, and the Belaya andVyatka rivers, which provides water con- nection not only with the north-western and southern, but also with north-eastern and Urals industrial regions; • Federal motorways leading in three directions: West-East, West-South- east, and Northwest-South; • Air routes to many destinations. The junction point of the said major transport routes is the Kazan trans- portation hub. The Kazan railway junction is connected with river cargo port which allows intermodal transports. The transportation system of the Republic of Tatarstan is composed of six types of transport (automotive, urban electric, inland water, air, pipeline, and railway) and road facilities. In 2009, freight-carrying vehicles of the republic’s enterprises of all kinds of activities (with allowance for small haulage contractors and en- trepreneurs engaged in commercial cargo transportation), transported 26,462,300 tonnes of cargo on a commercial basis (89.6% to the level of 2008), with cargo turnover amounting to 2,366.8 million tonne-kilometres (89.8%). During 2009 navigation, shipping enterprises transported 4,384,367 tonnes of cargo, which is a 24.1% decrease y-o-y. In 2009, air freight enterprises transported 885 tonnes of cargo, includ- ing international ones, which is a 29.9% decrease y-o-y. In 2009, railway enterprises transported 86,981,300 tonnes of cargo, which is a 17.3% decrease y-o-y. In 2009, the enterprises (including small businesses) performing the au- tomotive carriage of passengers along the general use routes transported some 183.6 million passengers on a commercial basis (94% of the figure for 2008). The passenger turnover was 1,967.5 million passenger kilometres, a decrease by 17.3% y-o-y. As of January 1, 2009 there are 3,081 settlements in Tatarstan, of which 1,638 have access roads with asphalt concrete pavement; 483 have inter- mediate type of pavement; and 960 settlements have earth access roads. A total of 11,700 kilometres of asphalt-paved roads, 2,000 kilometres of macadam roads, and 1,000 kilometres of earth roads are operated in the republic. In 2008, RUR 2.5 billion was allocated to the provision of rural settlements with access roads. In 2009, some RUR 2 billion was allocated to this end. Transportation infrastructure improvements are stimulated by the de- velopment of Kama Industrial Hub, Complex of Refining and Petrochemical Plants under construction in Nizhnekamsk, and the Special Economic Zone Alabuga. The following projects are currently underway in the roads and transport system of the Republic of Tatarstan: • Investment projects within the Western Europe-Western China inter- national transport corridor: –– Sviyaga Interregional Multimodal Logistics Centre; –– Construction of Shali (М7) - Bavly (М5) toll highway for the devel- opment of new route for the Kazan-Orenburg federal motorway in the Republic of Tatarstan, with the length of 294 kilometres, to form a part of the St. Petersburg-Vologda-Kazan-Orenburg-Kaza- khstan border expressway. The highway will be a section of the Europe-Western China international transport corridor in the terri- tory of the Russian Federation. • Investment projects also being implemented: –– Biek Tau Industrial Park; In 2009, the crisis also affected the land market; the land plot sales dropped year over year. In expectation of lower land prices, buyers limited their activities. The wave of investment purchases of land plots for resale has faded away. As to the trend of the land prices, it is somewhat different than that of the real estate prices. Land prices decreased, but a specific character of this decrease is dictated by the land market rules: maximum discount reaches 10-20%, and it is rather difficult to have a discount for good land plots. No decrease at all was observed for the most demanded areas, because sellers prefer to keep the prices steady. The republic’s average land market prices decreased by 15% in 2009. The highest prices were still recorded for land plots in Kazan, ranging from RUR 8,000 to RUR 25,000 per square metre for land plots in the central city area and up to RUR 35,000 per square metre in the historic centre. The prices for the land plots located along major traffic arteries of the city are somewhat lower, ranging from RUR 6,000 to RUR 15,000 per square metre; in massive housing development areas they range from RUR 2,500 to RUR 12,000 per square metre. Prices for land lots in the industrial zone of Kazan are much lower, from RUR 1,500 to RUR 3,500 per square metre. Lands do not expand in area, but the number of land plots intended for individual housing construction is increasingly growing. Transfer of the ag- ricultural lands to the category of lands for individual housing construc- tion is one of the governmental measures of providing incentives to the housing market; the process of including the agricultural land plots into the boundaries of inhabited localities is also underway. This land transfer is most intensive in Laishevsky and Zelenodolsky districts. The land adjacent to Kazan will be in demand at all times, since this is an extensively develop- ing direction in terms of access to transportation and infrastructure. The average price of a land plot for individual construction in the boundaries of Kazan ranges from RUR 600,000 to RUR 1 million. Apart from the proximity to the city, some locations are more prestigious than others, which is due to the deficiency of vacant land plots in these areas and good environmental image. 4.1. Monitoring of undeveloped land plots (lands of inhabited localities) The review of prices for undeveloped land plots is compiled based on prices of the offers published in real estate periodicals and from real estate appraisers. RUR ’000 per square metre City (district) Location Minimum value Maximum value Kazan Historic centre 8.0 35.0 Traffic arteries 6.0 15.0 Massive housing development areas 2.5 12.0 Industrial zone 1.5 3.5 Almetyevsk Central city area 1.4 12.0 Massive housing development areas 1.2 8.0 Industrial zone 0.5 3.0 Naberezhnye Chelny, Nizhnekamsk Central city area 1.5 8.0 Massive housing development areas 1.1 6.0 Industrial zone 0.2 0.5 Verhneuslonsky District 0.3 2.3 Vysokogorsky District 0.3 1.5 Zelenodolsky District 0.4 3.5 Laishevsky District 0.3 3.2 Pestrechinsky District 0.3 2.0 Rybno-Slobodsky District 0.25 0.8 In pursuance to the Resolution of the Cabinet of Ministers of the Repub- lic of Tatarstan No.951 of December 31, 2008, the results of the new State cadastral valuation of the land plots in the lands of inhabited localities (ex- cept for Kazan) have been effective from January 01, 2009. 4. SUMMARY OF TATARSTAN LAND MARKET 5. TRANSPORT
  14. 14. 22 6. INFORMATION AND COMMUNICATIONS Republic of Tatarstan: General Overview, State System, Economy 23 6. INFORMATION AND COMMUNICATIONS Republic of Tatarstan: General Overview, State System, Economy aspect in the wide application of innovations in the sphere of information and managerial technologies in the activities of the republic’s authorities. The e-Government of Tatarstan has been created with an aim of enhancing the effectiveness of public authorities, ensuring the disclosure of informa- tion about the activities of the Government and granting to citizens, busi- nesses, public and other structures a continuous convenient access to the State services and government information resources. The following key achievements testify to the successful implementa- tion of the e-Tatarstan programme: • Based on the republic’s digital communication infrastructure, the State Integrated System of Telecommunications (GIST) has been established thus making it possible to create a unified information space in the ter- ritory of the Republic of Tatarstan. • Beginning from 2006, the official Portal of the Government of the Re- public of Tatarstan has been functioning successfully, incorporating standard sub-portals of ministries and agencies and websites of Tatar- stan municipalities, including virtual reception desks; • For people and businesses, State-to-Business and State-to-People por- tals have been created to provide full information about public services. • The interdepartmental system of electronic document circulation for public authorities with the use of digital signature technology pro- vides the centralised record management for the authorities of the Republic of Tatarstan; • The e-Commerce Information System and e-Store Centralized Govern- ment Procurement Information System have been created and are op- erated effectively; • No less effective is the video conferencing system operated for the needs of the Government of the Republic of Tatarstan, ministries and departments, local governments of the republic; • The information analysis system for monitoring the activities of budg- et-funded entities have been deployed; • The registry information system has been introduced to automate the activities of the offices of vital records. The current primary objective facing the e-Government of the Republic of Tatarstan is the development of the State services system in the elec- tronic format. The issue of creating electronic services is also a key one in the Strategy and Programme of Information and Communication Technologies Devel- opment in the Republic of Tatarstan (Intellectual Tatarstan 2020) being developed currently. Its mission: “Development of competitive and highly intellectual Republic of Tatarstan at the international level through the effective implementation of State policies of introducing infocomm tech- nologies (i-Tatarstan)”. Its objective: “Development of social and economic lead of the Republic of Tatarstan and improvement of the quality of life of people through effective introduction of infocomm and innovative tech- nologies (i-Lead)”. Priority problems in the short term: 1. Development of a highly intellectual society (i-Society); 2. Creation of effective government system (i-Government); 3. Effective economy and business sector (i-Economy); 4. Development of effective IT sector and industry (i-Industry); 5. Creation of effective education system and training of highly-skilled workforce (i-Learning). In pursuance of the Decree of the President of the Republic of Tatarstan No.UP-320 of July 10, 2008, a cluster in the sphere of information technolo- gies (IT cluster) is under development based on the republic’s enterprises and IT companies. This should promote the increase in revenues from IT sector to the republic’s budget, expand the range and improve the quality of IT services, and ensure the competitiveness of hi-tech and information technologies in the Republic of Tatarstan. The advantages of the cluster model are considered to be the consolida- tion of human resources and accumulated technology potential of partici- pants, opportunities of exchanging technology-related expertise and in- formation inside the cluster, development of partnership relations among participants, and the opportunity of utilising important elements of each other’s infrastructure by the participants. It is planned to use an outsourc- ing model in the work of the IT cluster. The technopark in the sphere of high technologies founded in the Re- public of Tatarstan (IT Park) is intended to promote the development of the IT sector and IT industry of both the republic and the Russian Federation and to serve as a basis for the development of scientific and technology potential of Russia. The objective of the IT Park is to ensure the most favourable conditions for newly created or developing IT companies at the stages of develop- ment and introduction of new software products into the market. This should encourage the development of domestic software industry in the republic and become a catalyst of hi-tech developments and their inten- sive introduction into key industries of the economy with a view of enhanc- ing the competitiveness of the republic in general. The IT Park project is designed to raise the investment appeal of Tatar- stan, attract large investors and partners for increasing the global competi- tiveness of local commodity producers. 6.2. TELEVISION AND RADIO BROADCASTING The work on the development of television and radio broadcasting sys- tem in the Republic of Tatarstan sustained through 2009, its primary tasks being the expansion ofTV broadcasting in predominantly rural areas, reno- vation of the existing broadcasting network, and creation of preconditions for the development of digital broadcast TV in the Republic of Tatarstan. In accordance with the federal concept and federal target programme, the work was continued on the Long-TermTarget Programme for Organisa- tion of Digital Television and Radio Broadcasting in the Republic of Tatar- stan for 2009-2015. Since the corresponding federal target programme was approved at the end of the year, the work on the Programme and system project was not finalised and has been deferred to 2010. As of January 1, 2010 the installed capacity of cable TV networks was 1,194,500 points. Community antenna and cableTV networks have been built in 15 cities of the republic. The total number of cable TV subscribers in the re- public was 468,500 households in 2009, which is 39% of the installed capacity. –– Q-Park Kazan Logistics Centre. • Innovation projects being implemented jointly with enterprises of oil, gas, and chemical industries: –– Dorocell stabilising additive based on grass cellulose for the pro- duction of stone mastic asphalt concretes; –– SNPKh-DS-1 Bozsyz Yul liquid environmentally sound agent for winter de-icing of the republic’s highways. • Jointly with DuPont and Consolid AG, a work is underway on intro- ducing advanced technologies for the modification of road bitumens with Elvaloy copolymers and Consolid system for strengthening local grounds when making transition pavements of access roads to rural settlements. Within the framework of preparations to the 27thWorld Summer Univer- siade 2013 in Kazan it is planned: • To create a network of state-of-the-art bus service stations and bus ter- minals in Kazan for ensuring adequate passenger transportation over intercity and suburban bus routes, removing the routes of 190 intercity and suburban buses from city limits, and relieving pressure on streets and roads by 3%. The construction is projected in the Orenburgsky Trakt Street (near the Republic’s Clinical Hospital), Gorkovskoye Shosse Street (near Frunze Street), and Mamadyshsky Trakt Street (near Kos- monavtov Street); • To complete the construction of the first underground line in Kazan consisting of three sections and to acquire a rolling stock of 125 trams (including 66 high-speed trams) and 250 trolleybuses; • To carry out the reconstruction of flatworks, light-signal and energy saving facilities, and the passenger terminal of Kazan International Airport. 6. INFORMATION AND COMMUNICATIONS The intensive and fruitful work of the infocomm sector of the Repub- lic of Tatarstan over the last 5 years allowed the companies in this sector to maintain their operational performance, financial stability, investment attractiveness, to continue the development of the telecommunication infrastructure, and to introduce information technologies into all spheres of life even in 2009, under the conditions of financial crisis. This is largely promoted by the high-quality digital infrastructure of communications cre- ated in Republic of Tatarstan. In 2009, the total gross income of RUR 28.749 billion was generated in the sector, which is 111.0% of the figure for 2008.The largest contributor to the sector’s gross income was cellular communications (48%). 6.1. INFORMATION SUPPORT The Law of Republic of Tatarstan No. 133-ZRT of December 27, 2005 has approved the “Programme for Social and Economic Development of the Republic of Tatarstan for 2005-2010”. This Programme comprises the Integrated Programme for Information Development in the Republic of Tatarstan (e-Tatarstan 2005-2010), in the framework of which a consider- able amount of work has been done in recent years for the development of infocomm infrastructure in the republic. Based on the results achieved by this pro- gramme, its new version was approved, the Republic’s Tar- get Programme for Develop- ment and Use of information and Communications Tech- nologies in the Republic of Tatarstan (e-Tatarstan 2008- 2010).The main objectives of this Programme are, through the large-scale application of infocomm technologies, to improve the quality of life in the Republic of Tatarstan, to enhance the effectiveness of the State and municipal administration in the Republic of Tatarstan, to improve the ac- cessibility and quality of government services for people and businesses, to increase the openness of authorities, to ensure the economic growth and competitiveness of the Republic of Tatarstan, and to raise the living standards and budget revenues. The integrated project of the e-Government of Tatarstan became a key
  15. 15. 24 6. INFORMATION AND COMMUNICATIONS Republic of Tatarstan: General Overview, State System, Economy 25 7. TOURISM Republic of Tatarstan: General Overview, State System, Economy Gigabit Ethernet (GE) interfaces from 1 to 10 Gbps have been run to each city and district centre of the republic. Based on the multiservice data back- bones, the corporate networks of public authorities, economic entities and financial business organisations are developing and a unified scientific and educational network of the Republic of Tatarstan is being formed. The total number of subscribers in the Republic of Tatarstan having ac- cess to the Internet using all wire and wireless technologies is 1,617,000. The number of broadband Internet subscribers reached 653,000; the number of GPRS/EDGE users increased to 892,000 and 3G users, increased to 103,000. In the last three years, the market of Internet services is undergoing a de- monopolisation. While in 2007 the majority of residents and organisations in the Republic ofTatarstan had dial-up access to the Internet, now the sub- scribers prefer high-speed access, dedicated lines, and use unlimited tariff plans of service providers. 6.6. POSTAL SERVICE In 2009, postal service continues to implement new ICT-based projects: within the framework of the KiberPocht@ project, 73 shared access points to the Internet (a total of 120 workstations) were created; within the frame- work of the PochtaBank project jointly with Ak Bars Bank, a total of 450 postal bank ATMs were installed to receive and dispense cash, to pay subsi- dies; a new project,“Remittances through Western Union”, was introduced; etc. In 2010, some new projects are scheduled for the introduction, such as provision of residents with public electronic services based on the mul- tipurpose centres and post offices using elements of e-Government of Tatarstan, provision of people with medicines and further extension of the range of new infocomm services. In recent years, the invest- ment climate has essentially improved in the sphere of tourism, with the number of tourist attractions tending to rise and the flows of tourists and number of jobs in this in- dustry growing increasingly. In Tatarstan, the Republic’s Target Programme for Tour- ism Sphere Development for 2009-2011 is being imple- mented. As to the development of the tourist industry in Rus- sia, the Republic of Tatarstan holds a lead in this field: over the last 5 years, the annual av- erage growth rates of domes- tic tourist flows were 12%, and even in the crisis year of 2009 the domestic tourism grew by over 5%. In 2009, the tourist flow to the republic reached 977,000, with the value of tourist and health resort services (including hotel services) having in- creased to RUR 4,885 million. Tourist services in the republic are rendered by over 500 travel companies, including some 300 in Kazan. Building of hotels continues at a high pace. The republic currently has 154 hotels with a total of 5,400 rooms, including 4-star and 5-star hotels. For tourists, Tatarstan is not only “the third capital of Russia” - the city of Kazan with the Kazan Kremlin, a UNESCO World Heritage site and a symbol of combination of Muslim and Orthodox cultural traditions. This is also the site of Boulgar known in the Islamic world as a “North Mecca”, Khuzhalar Tavy pilgrimage destination in Bilyarsk, the Virgin Monastery of Raifa, the Sviyazhsk island town founded under the decree of Tsar Ivan Grozny, the millennial town of Yelabuga associated with life and work of Ivan Shishkin, Marina Tsvetaeva and Nadezhda Durova, and the city of Chistopol con- nected with the name of Boris Pasternak. With a view of creating conditions for the development and employment of new tourist resources, effective development of the territory, the Decree of President of the Republic of Tatarstan Mintimer Shaimiev No.UP-408 of July 25, 2008 established the Tourist-Recreation Park Kamskiye Polyany uniting five districts of the republic. This area is located in the geographical centre of Tatarstan and is characterised by favourable climatic and natural conditions and significant historic and cultural potential. In 2009, networks of antenna TV reception were being reconstructed, which includes the upgrading of their infrastructure by installing mul- tiservice cable networks with larger number of rendered services. The number of satellite TV users is estimated at 12% of the total number of households. In 2009, the republic began the trial operation of IP-TV service (interac- tive digital TV) for subscribers connected to Internet via Ethernet Home Network. After completion of the trial operation stage, it is planned to expand the scope of IP-TV services to up to 100 TV channels, nVoD, VoD, Karaoke, Radio, and Time Shifted TV. The coverage by community antenna networks is 67% households. 6.3. COMMUNICATIONS Tatarstan was the first in Russia to completely switch over to 100% digital infrastructure and to the networks of the following generation (NGN). A number of important social and economic tasks have been solved in the republic: • Provision of the republic’s residents with tel- ecommunications; • Elimination of “digital inequality” between urban and rural areas as regards the provi- sion of communications and access to the Internet; • Provision of 100% access to universal tel- ecomm services in each settlement of the Republic of Tatarstan; • 3G and 4G standards have been introduced and are being developed; • Internet coverage continues to grow, already reaching 50%; • The sector is completely de-monopolised with operations being based on the public-private partnership. The subscribers’ base in the republic grew up to 7.161 million in 2009, including 1.116 million fixed-line subscribers and 6.043 million mobile sub- scribers. The average rate of the fixed-line telephone penetration in the republic is 31.3 phones per 100 persons, including 35.8 phones in urban areas (40.3 phones in Kazan, which corresponds to the European level of develop- ment) and 18.3 phones in rural areas. The coverage with home telephones is 99.6%, while the mobile penetration increased to 160.5%. The major areas in the development of new services are as follows: • Providing every household with access to the broadband Internet at up to 1 Gbps; • Enhancing the throughput of the backbone data transmission net- work, including the same for rendering HDTV services and servicing the traffic of data processing centres; • Introduction of LTE technology (4.5G high-speed wireless access). • Development of mobile WiMAX, a 4G network technology; • Further work on the development of the digital infrastructure of In- ternet broadband access with the use of high-speed wire and wireless technologies, development of 3G and 4G technologies, implementa- tion of the projects on the introduction of Triple Play (IP-TV) services and“optic-fibre-to-home”projects; 6.4. LOCAL, LONG-DISTANCE, AND INTERNATIONAL TELEPHONE COMMUNICATIONS The length of the local fibre-optical communication lines totalled over 3900 kilometres. The Republic of Tatarstan boasts a strong, flexible tel- ecommunication digital transport network, which allows it to ensure the introduction of the newest information technologies and all kinds of present-day telecommunication services, as well as to provide high-quality services of international, long-distance and local telephony via automatic or recording application systems. In the territory of the Republic of Tatarstan, services of local telephony are provided to subscribers by three operators, OAO Tattelecom, OOO Tel- eset, and OAO TatAisNeft. Individuals, enterprises and organisations of Tatarstan make use of long- distance and international telephony either in the“pre-select”or in the“hot choice” modes. The residents of the republic is widely using long-distance and international connections via IP-telephony that allows long-distance and international calls at low rates and with high quality. 6.5. DATA TRANSMISSION NETWORKS, THE INTERNET AND NEW SERVICES The main achievement in 2009 was the growth in providing people with Internet broadband access to 50%. In Tatarstan, unique multiservice networks of data transmission have been created and are operated which cover all regional centres and allow corporate users to implement their infocomm projects of any degree of complexity and with maximum efficiency. High-capacity data links with 7. TOURISM

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