Тне Republic of TaTaRsTan:
guide to investment
cabineT of MinisTRies
of The Republic of TaTaRsTan
MinisTRy of econoMy
of T...
Table of contents
Welcome letter from the President of the
Republic of Tatarstan R.N.Minnikhanov 4
General information
abo...
Dear ladies and gentlemen!
Welcome to the Republic of Tatarstan
Guide to Investment. This guide has been
published with on...
43% of its polyethylene and over 30%
of its tyres. If we also consider that over
7,000 PhDs and 2,000 people with post-
do...
General information about the Republic of Tatarstan
Geography
The total area of the republic is 67,836.2
square kilometres...
THE CAPITAL
OF THE REPUBLIC OF TATARSTAN
Kazan, the capital of Tatarstan, is one of
the largest economic, industrial, scie...
Petrochemical Plant”, OJSC “Nizhnekamskneft-
ekhim”, OJSC “Nizhnekamskshina”, OJSC “Ni-
zhnekamsktekhuglerod” and OJSC “El...
as Udmurts, Ukrainians, Mordovians, Mari,
Bashkirs and others. The labour force num-
bers 2.44 million people. 74.9% of Ta...
State Ensemble of Song and Dance and the
Kazan State Circus.
There are seven unions representing cre-
ative professions in...
sculptures and applied arts works. The collection
includes works by Rembrandt, Durer, K. Bryullov,
I. Aivazovsky, V. Perov...
M. Butlerov, A. E. Arbuzov, E. K. Zavoisky, V.
V. Radlov, K. Fuks, Sh. Marjani, and K. Nasyri
have gone down in academic h...
from educating professionally oriented youth
in comprehensive schools to postgraduate
training of specialists in continuin...
Economic potential
Gross regional product (GRP)
In 2009 Tatarstan’s gross regional product
was RUB 878 billion.
Following ...
level. In 2009, real disposable income (less
mandatory duties and payments) decreased
by 2.6 percentage points from 2008 t...
In dynamics of real personal income pre-
served a positive trend, developed in the be-
ginning of year. In January-August ...
Federal-level special-purpose programmes, which are implemented in the Republic of Tatarstan
within the framework of Feder...
№ Name of the programme, the period of implementation
9 Republican special-purpose programme "Development and use of infor...
№ Name of the programme, the period of implementation
33 Complex programme of population narcotization prophylaxis in the ...
Industrial production rates
2007 2008 2009 january-june
2010
0
200
400
600
800
1000
0
20
40
60
80
100
120
Industrial produ...
Structure of shipped goods by type of economic activity, % (January-June)
I. Fuel and energy mining operations
II.Food pro...
Electricity production
Heat production
Mineral resources production rate
2007 2008 2009 January-
june 2010
0
5000
10000
15...
Rubber and plastics production rate
2007 2008 2009 first half
of the year
of 2010
0
50
100
1 05
2000
4000
6000
8000
tyres ...
Vehicle production
2007 2008 2009
0
20
45
60
80
100
120
10
20
30
40
50
60
70
trucks, thous.items
passenger vehicles, thous...
Production of agricultural products
2007 2008 2009
0
40
80
94
98
102
106
in copartable prices, in % to the previous year
i...
The republic is situated at the intersection
of major transport routes: railway (Trans-Sibe-
rian Railway and the North-So...
question, cargo turnover decreased by 10.2%
to reach 2,366.8 million tonne-kilometres. The
volume of cargo transported by ...
The first part of the Konstantinovsky modern
logistics complex was put into operation in the
republic’s high-altitude regi...
communication services provided by entities of
all types of activities amounted to RUB 23,300
million, in January-June of ...
Law «of innovative
activity in the Republic
of Tatarstan»
The goal of the law “of innovative activ-
ity in the Republic of...
special because this park was created under
the government programme “Creation of Hi-
tech Techno Parks in the Russian Fed...
INNOVATION MEMORANDUM
• a group of affiliated innovative
small businesses
• a network of “endogenic”
innovative infrastruc...
NANOTECHNOLOGY DEVELOPMENT
An integrated programme for the pro-
jected development of the nano industry in
the Republic of...
At the end of 2005, Tatarstan submitted
its Elabuga region in the Russia-wide competi-
tion to select sites for special ec...
List of Alabuga SEZ resident companies
№ Name of company
Products manufactured under the
project
Planned
volume of
investm...
Audits of SEZ residents by government super-••
visory authorities are held according to a special
procedure at least once ...
Universiade or the World Student Games
are the second-largest international sports
event after the Olympics.
On May 31, 20...
new station “Kozya Sloboda” will be put into
operation. Considering the necessity of speed
mode of passenger transport the...
FOREIGN TRADE
The Republic of Tatarstan foreign trade
turnover in 2009 was estimated to be USD 13.4
bln., a decrease of 37...
Share of non-CIS countries in the foreign
trade structure of the Republic of Tatarstan in
2009, %
Share of non-CIS countri...
External trade with the main partner countries
in the first half of the year of 2010
(mln.US dollars)
Kazakhstan
Italy
Pol...
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Tatarstan Guide to Investment 2010
Upcoming SlideShare
Loading in …5
×

Tatarstan Guide to Investment 2010

702 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
702
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Tatarstan Guide to Investment 2010

  1. 1. Тне Republic of TaTaRsTan: guide to investment cabineT of MinisTRies of The Republic of TaTaRsTan MinisTRy of econoMy of The Republic of TaTaRsTan kazan, 2010
  2. 2. Table of contents Welcome letter from the President of the Republic of Tatarstan R.N.Minnikhanov 4 General information about the Republic of Tatarstan 6 Geography 6 Administrative and territorial divisions 6 The capital of the Republic of Tatarstan 7 Major cities 7 Climate 8 Labour force 8 Religion 9 Official languages 9 Culture 9 Education and science 11 Health care 12 Administration 13 Economic potential 14 Gross regional product (GRP) 14 Personal income levels 14 Consolidated budget 15 Major banks 15 Federal and regional social and economic development programmes 16 Key industries 20 Industrial production 20 Energy industry 21 Oil production 22 Oil refining and petrochemical industry 22 Mechanical engineering and metalworking 24 Agriculture 24 Construction 25 Transport infrastructure and communications 26 Logistics centres 27 Kazan international airport 28 Electronic government and telecommunications 28 Innovative development 30 Law «On Innovation activity in the Republic of Tatarstan» 30 Technology parks of the Republic of Tatarstan 30 Innovation Memorandum of the Republic of Tatarstan for 2008-2010 years 31 Idea Innovation and Industrial Technology Park 32 Nanotechnology development 33 Alabuga special Economic Zone for Industry and Manufacturing 34 Universiade 2013 37 Foreign economic activity 39 Foreign trade 39 Geographic structure of Tatarstan’s Foreign trade 40 Regional organizations involved in the support and development of foreign economic activity 41 Anti-recessionary policy of the Government of the Republic of Tatarstan 42 Tatarstan anti-corruption policy 42 Investment climate 43 Investment in fixed capital 43 Foreign investments 44 Major foreign companies investing in the Republic of Tatarstan 46 Major companies of the Republic of Tatarstan 48 Investment laws in the Republic of Tatarstan 50 Most attractive industries for investors 50 Current laws on benefits and privileges for investors 50 Investment projects 52 Contact information 54 3The Republic of Tatarstan: guide to investment
  3. 3. Dear ladies and gentlemen! Welcome to the Republic of Tatarstan Guide to Investment. This guide has been published with one goal in mind: to show our potential local and overseas partners that their projects, ideas and plans will come to life in a favourable and comfort- able environment of mutual understand- ing and fruitful cooperation, and that all business initiatives will be met with full support and appreciation on the part of federal, regional and local governments. I believe that the authors of this guide have succeeded in achieving this goal. You know have an excellent opportuni- ty to see for yourself that Tatarstan is one of Russia’s most advanced regions in terms of investment appeal. The republic is located in the heart of our great country, at the intersection of major sales routes connecting Europe and Asia. This makes the region a natural stra- tegic base for large-scale logistics proj- ects. It is no coincidence that the Russian part of the Western Europe – Western China trans-continental transport corridor will run through Tatarstan. Due to geoeconomic and geostrategic factors, Tatarstan has become a concen- trated centre of Russian manufacturing. Tatarstan provides 7% of Russian oil pro- duction and over 24% of its commercial vehicles, 38% of its synthetic rubber, 4 The Republic of Tatarstan: guide to investment
  4. 4. 43% of its polyethylene and over 30% of its tyres. If we also consider that over 7,000 PhDs and 2,000 people with post- doctoral qualifications work in the region, conducting research in 87 institutions of higher education and 73 scientific cen- tres, it becomes clear why we are openly optimistic about the prospect of national modernisation in the future. In Tatarstan, we have everything we need to make it a reality: a powerful industrial and tech- nological base, and considerable human capital reserves. An innovative project for social and economic development targeted to raise the economy's competitive capacity and improve the quality of life in Tatarstan began several years ago. As a result of implementing a set of activities aimed at optimising social infrastructure and supporting youth-related policy, Kazan earned the right to host the 27th Summer World Student Games in 2013. Tatarstan’s regulatory environment is favourable to local and overseas investors. There is a large and diverse network of financial and non-financial development institutions, of which Alabuga Special Economic Zone for Industry and Manu- facturing and the IT Park, which operates in the field of information and communi- cation technologies, are some of the best examples. Our region was selected as the plat- form for a large-scale, EUR 2 billion in- vestment project between OJSC “Sollers” and “FIAT” Group. Under the project, an innovation-oriented enterprise will be established to produce 500,000 cars of nine new makes, of which 10% will be exported. Without a doubt, this and other joint projects are living proof that interna- tional investment cooperation was, is and will remain the main priority in Tatarstan’s economic policy. In this guide, you can find more de- tailed information on these and many other projects currently being realized in the Republic of Tatarstan’s blossoming investment sector, as well as learn more about its characteristics and trends. I sin- cerely hope that the guide will inspire new ideas, activities and initiatives that will stimulate strategic partnerships in various areas of collaboration! Yours faithfully, President of the Republic of Tatarstan, R. N. Minnikhanov 5The Republic of Tatarstan: guide to investment
  5. 5. General information about the Republic of Tatarstan Geography The total area of the republic is 67,836.2 square kilometres. The republic’s territory stretches 290 kilometres north to south and 460 kilometres west to east. Tatarstan is located in the Volga Federal District and borders eight Russian regions: the Republic of Bashkortostan, the Udmurt Repub- lic, the Mari El Republic, the Chuvash Republic, and the Kirov, Orenburg, Ulyanovsk, and Sa- mara regions. Tatarstan is one of the most economically developed regions in Russia. It is located in the centre of a large industrial zone, 800 kilome- tres east of Moscow, at the confluence of the Volga and Kama rivers. The Volga and Kama valleys divide the re- public into three sections: the Volga right-bank area (Predvolzhye), which includes the Privol- zhskaya Upland; the Volga left-bank and Kama right-bank areas (Predkamye); and the Kama left-bank area (Zakamye), which includes the northern slopes of the Bugulma-Bebeley Up- land (maximum elevation 364 metres). To the north-west is the southern part of the Vyatsky Spur.Major rivers in the republic include the Volga, the Kama, the Belaya and the Vyatka. The four rivers’ volume is 234 billion cubic metres per year (97.5% of the total volume of all rivers in the republic). In addition to the four major rivers, approximately 500 other small rivers (at least 10 kilometres in length) and numerous streams flow across Tatarstan. Significant water resources are concentrated in two of the biggest reservoirs: the Kuibyshev and the Nizhnekamskoye. There are also over 8,000 small lakes and ponds in the republic. Tatarstan is located in hardwood, mixed forest and forest-steppe zones. The main soil types are sod-podzolic, grey forest and black earth. Forests, mainly deciduous (oak, linden and maple), cover 16% of the territory. Local fauna includes 430 species of vertebrates and hundreds of species of invertebrates. The range of animals includes wolves, foxes, elks, squir- rels, chipmunks, marmots, and hares (blue and brown); of the birds, there are wood grouse, hazel grouse and bustards. Tatarstan is rich in mineral resources, with crude oil (around 0,8 billion tonnes) providing its main source of wealth. The republic also has industrial quantities of limestone and dolomite (66 million tonnes), construction stone (35.3 million cubic metres), sand-gravel aggregate and peat (800 peat deposits having a total area of more than 35,000 hectares). There are geological reserves of natural bitumens (ex- plored reserves of 12.5 billion tonnes), brown and black coal, slate coal, zeolite, copper and bauxite; gypsum (total reserves of 72 million tonnes) and loam (73.5 million cubic metres) are also extracted. ADMINISTRATIVE AND TERRITORIAL DIVISIONS Tatarstan is highly urbanised, with 74.7% of the population living in urban areas. The republic is divided into 43 municipal districts, 22 cities (of which 14 are subordinate to the republic), 38 urban settlements, and 916 vil- lage councils. The major cities are Kazan, Na- berezhnye Chelny, Almetyevsk, Nizhnekamsk, Zelenodolsk and Elabuga. KAZAN CHISTOPOL NIZHNEKAMSK ELABUGA NABEREZHNYE CHELNY ALMETYEVSK BUGULMA MARI EL REPUBLIC CHUVASH REPUBLIC ULYANOVSK AREA SAMARA AREA ORENBURG AREA UDMURT REPUBLIC KIROVSK AREA 6 The Republic of Tatarstan: guide to investment
  6. 6. THE CAPITAL OF THE REPUBLIC OF TATARSTAN Kazan, the capital of Tatarstan, is one of the largest economic, industrial, scientific and cultural centres in Russia. Kazan’s geopolitical location within the Russian Federation is very advantageous: it is located in the centre of the well-developed Volga region, between the industrial regions of the Central and the Ural economic areas. It has the largest population and most economic potential of the cities in the republic. Kazan is 614.2 sq km in area and has a population of 1.13 million people. 40.7% of the population is under the age of 30. Administra- tively, Kazan is divided into seven districts. Kazan is a city with a rich history. Once a Bulgar frontier fortress, in the Golden Horde period it became the capital of an independent emirate, and of the Kazan Khanate in 1438. After Kazan fell to Ivan the Terrible in 1552, the city was almost completely destroyed. In 1708, Kazan became the centre of the Kazan province. From 1920 Kazan was the capital of the Tatar Autonomous Soviet Socialist Republic. Since 1992, it has been the capital of the Re- public of Tatarstan. On 30 August 2005, Tatarstan’s capital cel- ebrated its 1,000th anniversary. Kazan is one of Russia’s major educational centres. Its student population is the third high- est in Russia after Moscow and St Petersburg. Some 180,000 young people from 15 countries around the world receive their education in the colleges and universities of the city. Kazan has a very favourable investment cli- mate. In the last five years, Kazan has ranked first in investment per capita among Russian cities with populations of over one million. MAJOR CITIES Naberezhnye Chelny city is located in the north-east Tatarstan on the banks of the River Kama. The city is a one-company town, with almost the entire population somehow asso- ciated with local economic mainstay Kamsky Motor Works (OJSC “KamAZ”), a manufac- turer of heavyduty vehicles and spare parts. Naberezhnye Chelny is a major transpor- tation hub due to its location at the intersec- tion of railway, automobile and river transport routes. The city implements major cultural proj- ects. Exercising particular popularity among locals are a sports centre, go-cart track, art gallery, circus, Masterovye Theatre and dol- phinarium. The city has 173 educational establish- ments, 20 higher education institutions and 25 specialised secondary educational estab- lishments. Nizhnekamsk city is one of Russia’s largest petrochemical centres. The major petrochemi- cal manufacturers include OJSC “Nizhnekamsk 7The Republic of Tatarstan: guide to investment
  7. 7. Petrochemical Plant”, OJSC “Nizhnekamskneft- ekhim”, OJSC “Nizhnekamskshina”, OJSC “Ni- zhnekamsktekhuglerod” and OJSC “Elastik”. The Nizhnekamsk Hydroelectric Power Station supplies electrical power to the city and sur- rounding areas. Almetyevsk is the largest centre of crude oil production in Tatarstan. The “Druzhba” Oil Pipeline through which Tatarstan exports crude oil starts here. The largest company in the region is OJSC “Tatneft” (a producer of crude oil and petroleum gas). The Almetyevsk Petroleum Institute plays an important role in training personnel for the republic’s main in- dustry. Zelenodolsk is an important transport junction in the west of the republic. Products made by the city’s shipbuilding plant and the Sergo Plant production association (refrigera- tion appliances) are in demand far beyond Tatarstan. Today Elabuga is one of Tatarstan’s most promising cities. The local economy special- izes primarily in manufacturing, agriculture, education and tourism. About 27.6% of the economically active population works in man- ufacturing. The main industries are oil produc- tion and the machine industry. The Alabuga special economic zone for industry and manufacturing is one of Russia’s best equipped investment sites for realising large manufacturing projects. CLIMATE Tatarstan has a moderately continental climate. Occasional droughts may occur. The average temperature in January (the cold- est month) is -14°C, and in July (the hottest month) the average temperature is +19°C. Annual precipitation ranges from 460 to 520 millimetres. The growing season lasts approxi- mately 170 days. LABOUR FORCE A population of 3.78 million people (2.7% of the total Russian population) comprises 115 ethnic groups; these include Tatars (52.9%), Russians (39.5%), Chuvashes (3.4%) as well 8 The Republic of Tatarstan: guide to investment
  8. 8. as Udmurts, Ukrainians, Mordovians, Mari, Bashkirs and others. The labour force num- bers 2.44 million people. 74.9% of Tatarstan residents live in urban areas. 625.7 thousand people are under working age (children) and 792.8 thousand people over working age. The economically active working population of the republic is 2.0 million. The educational level of the population is high: 435 people out of 1,000 aged 15 and older have intermediate vocational or higher education. Religion Over 1,000 religious organisations are reg- istered in the Republic of Tatarstan. The most widespread religions are Islam and Orthodox Christianity. There are small Jewish, Buddhist and Hindu communities. Official languages Under Tatarstan’s constitution, the Tatar and Russian languages have equal rights in the republic. The Russian population prevails in large cit- ies and adjacent regions, while the Tatar popu- lation dominates in rural areas. The Tatar language belongs to the Turkic group of the Altaic family of languages, along with Kazakh, Uzbek, Turkish, etc. The Russian language is a member of the eastern Slavic subgroup of the Slavic group of the Indo-European family of languages. Culture For historical and geographical reasons, Ta- tarstan’s culture developed at the junction of two large civilisations – the East and the West – and this to a large extent accounts for the diversity of its cultural wealth. The Tatars keep up the centuries-old tradi- tions of their ancestors, the Bulgars. Literature retains a special place in the life of the Bulgars and modern Tatars. Traditions established by the poet Koul Gali in the 13th century were maintained by Mahmoud Gali, Saif Sarai and Mouhamedyar. Outstanding names in Tatar culture in the 19th and 20th centuries include G. Toukay, K. Nasyri, S. Marjani, G. Kamal, F. Amirkhan, R. Nouriev, B. Urmanche, G. Ibragi- mov, G. Iskhaki and M. Jalil. There are seven historical centres in the re- public: in Bulgar and Bilyar, the Kazan Kremlin, Elabuga, Chistopol, Sviazhsk, the Raifa Monas- tery, as well as six national parks. The Kazan Kremlin, the current residence of Tatarstan’s president, is the main sightsee- ing attraction in Kazan. The Kremlin boasts a harmonious architectural arrangement con- sisting of the Annunciation Cathedral, the Syuyumbike Tower (the architectural emblem of the city) and the Kul-Sharif Mosque. Other places of interest in Kazan include the Volga Federal University, the Azimov Mosque (mid 19th century), the St Peter and Paul Cathedral (1723-1726), and the Mardjani Mosque (1766). There are three concert facilities in Kazan: the Tukai Tatar State Philharmonic, the Saida- shev State Concert Hall, the Tatarstan Republiс 9The Republic of Tatarstan: guide to investment
  9. 9. State Ensemble of Song and Dance and the Kazan State Circus. There are seven unions representing cre- ative professions in Tatarstan: the architects union, the journalists union, the composers union, the concert workers union, the writers union, the theatre workers union, and the art- ists union. The republic’s well-developed network of hotels and guest houses is always eager to re- ceive visitors. The capital’s hotels include the four-star Korston Hotel, the five-star Mirage, Shalyapin Palace Hotel, Grand Hotel Kazan, a hotel of the IBIS chain and many other cosy spots. In other cities of the republic, visitors can find comfortable accommodation in Alabuga- City Hotel (Elabuga), Tatarstan Hotel, Swiss House Hotel (Naberezhnye Chelny) and Para- dise Hotel Complex (Nizhnekamsk). Tatarstan offers a wide network of en- tertainment facilities where a variety of rec- reational activities can be enjoyed. People who love sports and outdoor activities can use equestrian centres, ice rinks, the Kazan (Ka- zan) and Yan (Almetyevsk) indoor skiing cen- tres, water parks (Kazan), amusement parks, go-carting and bowling alleys. Those who prefer quieter leisure can visit the Kazan State Circus, the zoo, botanical gar- dens, restaurants and cinemas or various con- cert halls and galleries. Theatres There are now 14 professional theatres in Ta- tarstan, including seven in Kazan. The Jalil Tatarstan State Theatre of Opera and Ballet (established in 1939) is the most pop- ular theatre both in and outside the republic. It hosts annual international opera festivals in hon- our of F. I. Shalyapin and classical ballet festivals in honour of R. Nuriev, featuring internationally famous dancers and opera singers. The theatre achieved global fame and popularity after tour- ing Europe. The Kamal Tatarstan State Academic Theatre is famous for its productions of plays by clas- sic Tatar playwrights such as N. Isanbet, G. Ka- mal, F. Yarullin and T. Minnullin. It has become a tradition for the theatre to give performances in Moscow and countries with large Tatar com- munities. The Kachalov Kazan Academic Large Russian Drama Theatre regularly participates in interna- tional festivals and is very popular with people from both Kazan and other cities. Museums In Tatarstan, 120 state and over 300 private museums provide information about regional his- tory and culture. The United State Museum of the Republic of Tatarstan was established in 1894. The museum’s collection was formed on the basis of exhibits from the Exhibition of Science and Industry held in 1890, as well as A. Likhachyov’s private col- lection. The Museum of Fine Arts, created in 1959 on the basis of the State Museum’s art gallery, contains more than 21,000 paintings, prints, 10 The Republic of Tatarstan: guide to investment
  10. 10. sculptures and applied arts works. The collection includes works by Rembrandt, Durer, K. Bryullov, I. Aivazovsky, V. Perov, I. Kramskoy, A, Savrasov, I. Shishkin, A. Kuindzhii, I. Levitan, I. Repin, V. Vereshchagin, V. Serov, N. Roerich, N. Feshin, B. Urmanche and others. The Kazan (Volga) Federal University Geol- ogy Museum has an extensive collection of me- teorites, minerals and crystals from the Urals and Siberia. The Kazan (Volga) Federal University Eth- nography Museum provides information about people from various parts of the globe. It also exhibits materials collected by I. Simonov during the Antarctic expedition of Bellinshausen and La- zarev. The following museums may also be of in- terest to those visiting Tatarstan: the M. Dzhalil and N. Zhiganov apartment museums; the E. Bo- ratynsky, M. Gorky, B. Urmanche, and S. Saida- shev museums in Kazan; the Y. Gashek museum in Bugulma, and the I. Shishkin, M. Tsvetayeva and N. Durova museums in Elabuga. In August 2005, a unique exhibition centre called Khazine opened in the Kazan Kremlin. The centre includes Russia’s first State Hermitage ex- hibition centre: the Hermitage-Kazan. Education and science Tatarstan has huge educational and scien- tific potential; nearly 170,000 people work in educational institutions here. There are 2,555 comprehensive schools in the republic, with nearly 586,800 students. After completing their compulsory education, more than 90% of students continue their studies in senior classes or enter specialised colleges. Tatarstan is famous for its well-developed academic and industrial sciences and its higher educational system. Kazan has been one of the leading Eastern European centre of learning for two hundred years. Kazan is proud of its in- ternationally renowned schools for mathemati- cians, chemists, astronomers, physicists, east- ern studies scholars, linguists, and physiologists. Names like N. I. Lobachevsky, N. N. Zinin, A. 11The Republic of Tatarstan: guide to investment
  11. 11. M. Butlerov, A. E. Arbuzov, E. K. Zavoisky, V. V. Radlov, K. Fuks, Sh. Marjani, and K. Nasyri have gone down in academic history. Kazan is one of the oldest educational centres in Russia. The Tatarstan Academy of Sciences, the Kazan Centre of the Russian Academy of Sciences, the National Library of Tatarstan (which has 2.8 million books) and the Kazan University research library (4.8 mil- lion books) bolster academic studies in the re- gion. There are 87 institutions of higher educa- tion in Tatarstan (including 49 public institu- tions); most of them are in Kazan. Four of Kazan’s universities rank among the Russian top 50: Kazan (Volga) Federal University, the Kirov Kazan State University of Technology, the Tupolev Kazan State Technical University, and the Kazan State Institute of Finance and Economics. In 2009 the President of the Russian Fed- eration signed a Decree on the establishment of five federal universities: the Northern, North-Eastern, Ural, Far-East and Volga Fed- eral Universities. The Volga Federal University was developed on the basis of Kazan State University. Thus, the renowned Lenin Kazan State University attained a new status and was transformed into an internationally competitive research and academic centre. Along with Kazan State University, several other well-known universities in Kazan have lost their independent status and merged to form the Volga Federal University: the Kazan State Institute of Finance and Economics, and the Tatar Humanitarian and Pedagogic Univer- sity. In 2009 the Tupolev Kazan State Technical University and Kazan state technological uni- versity won a contest for university develop- ment programmes. As the winner, it will be assigned National Research Centre status. Health care According to 2009 information, there are 124 hospitals, 6 dispensaries, 201 independent outpatient facilities, 15 dental clinics, 5 preven- tive medical centres in Tatarstan. Tatarstan’s medical institutions provide highquality medical treatment and diagnostic services. The republic is always introducing new state-of-the-art medical technologies, di- agnostics methods, and hi-tech medical sup- port systems, including transplants of human organs and tissues. The republic has a successfully function- ing Clinical Cancer Detection Centre, Republic Clinical Hospital, Republic Children’s Clinical Hospital and Restorative Traumatology and Orthopedics Research Centre. In 2006 the list of major medical establishments expanded to include the Interregional Clinics and Diag- nostics Centre. This medical institution offers high-tech medical treatment to people from Tatarstan and neighbouring regions. In addi- tion to government-owned medical facilities, Tatarstan has numerous private clinics offering services in a wide variety of areas. Tatarstan’s achievements in the area of health care informatisation are rated highly by experts. Tatarstan has created a continuous training system for health care professionals, starting 12 The Republic of Tatarstan: guide to investment
  12. 12. from educating professionally oriented youth in comprehensive schools to postgraduate training of specialists in continuing education institutions. Administration The President of the Republic of Tatarstan is the Head of State and highest-ranking of- ficial. The current president is Rustam Nur- galievich Minnikhanov. The Prime Minister of the Republic of Tatarstan is Ildar Shafkatovich Khalikov. The Republic of Tatarstan State Advisor is Mintimer Sharipovich Shaimiev. First Deputy Prime Minister of the Republic of Tatarstan is Ravil Fatykhovich Muratov. Deputy Prime Minister of the Republic of Tatarstan-Chief of Staff of the Cabinet of Ministers of the Republic of Tatarstan is Shamil Khamitovich Gafarov. Deputy Prime Minister of the Republic of Tatarstan-Minister of Energy of the Republic of Tatarstan is Ilshat Shayehovich Fardiev. Deputy Prime Minister of the Republic of Tatarstan-Minister of Agriculture and Food of the Republic of Tatarstan is Marat Gotovich Akhmetov. Deputy Prime Minister of the Republic of Tatarstan-Minister of Informatisation and Communications of the Republic of Tatarstan is Nikolay Anatolievich Nikiforov. Deputy Prime Minister of the Republic of Tatarstan-Minister of Culture of the Republic of Tatarstan is Zilya Rakhimianovna Valeeva. The ministries: Ministry of Economy•• Ministry of Finance•• Ministry of Industry and Trade•• Ministry of Justice•• Ministry of Internal Affairs•• Ministry of Informatisation and Communica-•• tions Ministry of Education and Science•• Ministry of Culture•• Ministry of Health Care•• Ministry of Agriculture and Food•• Ministry of Ecology and Natural Resources•• Ministry of Construction, Architecture and•• Housing Ministry of Civil Defence and Emergency•• Situations Ministry of Transport and Roads•• Ministry of Youth, Sports and Tourism•• Ministry of Land and Property Relations•• Ministry of Forestry•• Ministry of Labour, Employment and Social•• Protection Ministry of Energy•• State Committees: Committee on Socioeconomic Monitoring•• Committee on the Development of small-•• and medium-sized businesses State Committee on Tariffs•• Agencies: State Unitary Enterprise Agency for State•• Orders, Investment Activities and Interregional Relations of the Republic of Tatarstan Republican Press and Mass Communication•• Agency Agency for the Development of International•• Cooperation under the Cabinet of Ministers of the Republic of Tatarstan 13The Republic of Tatarstan: guide to investment
  13. 13. Economic potential Gross regional product (GRP) In 2009 Tatarstan’s gross regional product was RUB 878 billion. Following the results of the first half of 2010 the volume of gross regional product was RUB 475,8 billion, which is a 6,3% growth from the same period of previous year (GRP of Russia – 4%). Manufacturing activity, wholesale trade and retail trade had the highest contribution to economic growth. In 2009, gross regional product per capita was estimated as RUB 232.7 thousand, which GDP of Russia and GRP of Tatarstan, RUB billion GRP by type of business activity, % 2007 2008 2009 January- June 2010 0 200 400 600 800 1000 0 20 40 60 80 100 120 Tatarstan GRP in comparable prices, % against prior year Tatarstan GRP, RUB bln Russian GDP in comparable prices, % against prior year 757,4 923,2 878 475,8 106,395,8 107,7110,7 108,1 105,6 92,1 104,0 GRP per capita, RUB thousand 100 150 200 250 300 2006 2007 2008 2009 2010 (by estimate) 201,3 245,2 232,7 255,2 0 10 20 30 40 50 60 49,7 44,1 39,6 7,1 7,3 7,7 7,9 10,5 11,6 12,1 13,1 14,6 7,8 8 8,8 15,6 17 17,7 2009 2008 2007 Other Transport and communications Wholesale and retail trade Construction Agriculture Manufacturing is a 5.1% decrease from the previous year. In 2010, gross regional product per capita will be increased to 9.7% and will be estimated as RUB 255,2 thousand, which is a growth from the previous year. In 2010 GRP per economically active person will be increased by 4.2%, equaling RUB 534.5 thousand. In 2009 GRP per economically active per- son decreased by 3.5% as compared to 2008, equalling RUB 487.5 thousand. In 2010 GRP per economically active person will be increased by 4.2%, equaling RUB 534.5 thousand. Personal income levels In 2009 personal income per capita in Ta- tarstan (RT) grew by 11.6% as compared to 2008, to reach RUB 15 821 (in Russia (RF) overall: 13% growth to reach RUB 16887). Real personal income decreased by 6.9 percentage points to reach 101.7% of 2008’s Personal income in roubles, year-on-year (%) 2007 2008 2009 January- June 2010 0 20 40 60 80 100 120 140 160 180 200 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 11577 14181 15820 16964 RT RF RT % RF % 14 The Republic of Tatarstan: guide to investment
  14. 14. level. In 2009, real disposable income (less mandatory duties and payments) decreased by 2.6 percentage points from 2008 to reach 103.3%. The purchasing power of personal income in 2009 amounted to 3.85 times the subsis- tence minimum budget (SMB) (2008: 3.77 of times). In personal income per capita grew by 14.9% as compared to the same period of 2009, to reach RUB 16938.6. Structure of personal income,% 0 20 40 60 80 100 1,4 1,7 3,1 2,3 7,7 9,5 6,9 6,8 76,8 78,1 2,8 2,9 August 2010 August 2009 Real property purchase, transfer of money Currency purchase Accumulation of savings at deposit and in securities Compulsory payments and other fees Product purchase and service payment Excess of personal income as compared to expenditure Consolidated budget, mln RUB 2006 2007 2008 2009 plan for 2010 All incomes, includ- ing: 88 326,9 106 132,5 139 269,0 140 637,0 125765,0 fiscal 62 908,1 79 910,3 101 268,5 85 053,0 80046,8 non-fiscal 10 127,8 12 529,7 13 674,4 6 440,5 5098,8 non-repayable revenues from other budgets of budget- ary system 15 291,0 13 692,5 24 326,1 49 143,5 40619,4 Expenditures – total 86 262,3 108 518,0 146 268,5 152 731,5 157383,9 Major banks Bank name Contact information 1. OJSC “AK BARS” Bank Robert Khamitovich Minnigaliev, Chairman of the Board Address: 1 Ul. Dekabristov, Kazan, 420066 Phone: +7 (843) 519-39-99 Fax: +7 (843) 519-39-75 e-mail: pozd@akbars.ru http://www.akbars.ru 2. OJSC “AIKB “Tatfond- bank” Ildus Anvarovich Mingazetdinov, President Address: 43/2 Ul. Chernyshevskogo, Kazan, 420111 Phone: +7 (843) 291-99-99 / 291-98-10 (Yusupov Kamil Raifovich – Chairman of the board) Fax: +7 (843) 291-98-95 / 291-98-04 e-mail: tfb@tfb.ru http://www.tfb.ru 3. OJSC “AKB “Spurt” Evgeniya Valentinovna Dautova, Chairman of the Board Address: 2 Ul. Spartakovskaya, Kazan, 420107 Phone: +7 (843) 291-50-00 Fax: +7 (843) 291-50-15 e-mail: info@spurtbank.ru http://www.spurtbank.ru 15The Republic of Tatarstan: guide to investment
  15. 15. In dynamics of real personal income pre- served a positive trend, developed in the be- ginning of year. In January-August of 2010 rate of growth was 108.4% as compared to January-August of 2009. In January-August of 2010 real disposable income (less mandatory duties and payments, adjusted for consumer price index) was 110.5% as compared to Janu- ary-August of 2009. In January-July of 2010 average gross pay- roll in enterprises and organizations of the re- public, micro-entrepreneurship was estimated as RUB 16613.3, which is a 14,6% increase from the same period of a previous year (in Russia – 11,6%). Main part of funds was spent to keeping current consumption level. In August of 2010 was spent on: product purchase and service payment 76.8% of all cash income (in Au- gust of 2009 - 78.1%), compulsory payments and other fees – 6.8% (in August of 2009 – 6.9%). Savings part of personal income (increase of deposit on citizen’s accounts, real money of population; expenses on securities, currency, real estate purchase; changes in funds on ac- counts of individuals-entrepreneurs, indebted- ness under credit, transfer of money) was es- timated as 13,5% of all cash income (in August of 2009 – 12,2%). In January-July of 2010 real income, taking into account consumer price index, increased by 7.9% as compared to January-July of 2009 (in Russia – 4.9%). Federal and regional social and economic development programmes In 2009 RUB 27.73 billion from the federal budget was used to finance various activities in Tatarstan. Most of this federal funding was used to build venues for the World Student Games (RUB 10,980 million), for capital re- pairs of multiple occupancy homes in the re- public along the Fund for Reforming Housing and Utilities Infrastructure lines (RUB 4,717.75 million), and on measures aimed at alleviating labour market tensions (RUB 2.78 billion). The share of federal funding for federal- level special purpose programmes was RUB 4.2 billion, or 15.15% of Tatarstan’s total federal funding in 2009. In January-August of 2010 RUB 4.855 billion from the federal budget was used to finance various activities in Tatarstan. Federal funding was increased thanks in large part to Russian State Duma deputies from the Republic of Tatarstan who headed 13 working groups. These groups included repre- sentatives of Tatarstan’s ministries and agen- cies and of local government authorities. The republic’s long-term special- purpose programmes In 2009 33 long-term and over 70 local special purpose programmes were implement- ed in Tatarstan. The total funding for these programmes was RUB 110 billion. In January- August of 2010 the amount of financing was RUB 15,948 million. Bank name Contact information 4. OJSC “Joint-Stock Commercial Mortgage Bank “AKIBANK” Ildar Khaydarovich Galyautdinov, Chairman of the Board Address: 88a Prospect Mira, p/o 30, Naberezhnye Chelny, 423818 Phone: +7 (8552) 77-33-33 / 77-33-80 Fax: +7 (8552) 72-23-77 e-mail: office@akibank.ru http://www.akibank.ru 5. OJSC “AB “Devon- Credit” Nafis Navykovich Gumarov, President, Chairman of the Board Address: 77 Ul. Lenina, Almetyevsk, 423450 Phone: +7 (8553) 45-67-77 Fax: +7 (8553) 31-75-13 e-mail: devon@devoncredit.ru http://www.devoncredit.ru 16 The Republic of Tatarstan: guide to investment
  16. 16. Federal-level special-purpose programmes, which are implemented in the Republic of Tatarstan within the framework of Federal Address Investment Programme for 2010 № Name of the programme, the period of implementation 1 Federal special purpose programme of education development for 2006-2010 2 Federal special purpose programme "Development of infrastructure of nanoindustry in the Russian Federation for 2008-2010" 3 Federal special purpose programme "Development of transport system of Russia (2010- 2015)" 4 Federal special purpose programme "Modernization of Integrated system of air traffic of the Russian Federation (2009 - 2015)" 5 Federal special purpose programme "Traffic Safety Programme for 2006-2012" 6 Federal special purpose programme "Russian Judiciary System Development for 2007- 2011" 7 Federal special purpose programme "Fire safety in the Russian Federation for the period up to 2012" 8 Federal special purpose programme "Development of civil sea technique" for 2009 - 2016 9 Federal special purpose programme «Development of Russian State Statistics for 2007- 2011» 10 Federal special purpose programme "Preservation and Restoration of Fertility of Agricultural Lands and Agrolandscapes as a Russian National Asset for 2006-2010 and until 2012 " 11 Federal special purpose programme "Housing for 2002-2010" 12 Federal special purpose programme "Development of physical fitness and sports in the Russian Federation for 2006–2015" 13 Federal special purpose programme "Russian culture (2006–2010)" 14 Federal special purpose programme "Social development in rural areas until 2012" 15 Federal special purpose programme "Development of correctional system (2007-2016)" The republic’s long-term special-purpose programmes, which are implemented in the Republic of Tatarstan in 2010 № Name of the programme, the period of implementation 1 Government programme of the Republic of Tatarstan for preservation, studying and development of official languages of the Republic of Tatrstan and other languages in the Republic of Tatarstan for 2004-2013 2 Republican programme "Children of Tatarstan" for 2008-2010 3 Programme of rest, recovery, employment for children and youth of the Republic of Tatarstan for 2010 4 Republican programme for promotion of employment for 2008-2010 5 Programme of reforming of housing and utility complex of the Republic of Tatarstan for 2004-2010 6 Republican programme on the implementation of anti-corruption policy strategy of the Republic of Tatarstan for 2009-2011 7 Republican special-purpose programme "Improving of traffic safety in the Republic of Tatarstan" for 2010 8 The Republic of Tatarstan Small Business Support Programme for 2005-2010 17The Republic of Tatarstan: guide to investment
  17. 17. № Name of the programme, the period of implementation 9 Republican special-purpose programme "Development and use of information and telecommunication technologies in Tatarstan (Electronic Tatarstan Programme) for 2008- 2010" 10 Republican programme of popularization of operative and engineering professions for involvement and dedication of specialists in enterprises of the Republic of Tatarstan for 2008-2010 11 Long-term special-purpose programme "Development of library services in the Republic of Tatarstan for 2009-2014 and for the long term as for 2020" 12 Republican special-purpose programme "Prevention of nosocomial infections for 2010- 2013" 13 Republican address programme on carrying out capital repairs of multicompartment buildings for 2010 14 Special purpose programme "Development of socially effective healthy lifestyle of citizens of the Republic of Tatarstan" for 2010-2011 15 Republic of Tatarstan Agricultural Development Programme for 2008-2012 16 Tatarstan’s Transport Development Programme for 2006-2010 17 Perfection of organization of oncologic aid measures for citizens of the Republic of Tatarstan in 2010 18 Perfection of aid measures to patients with peripheral vascular diseases in the Republic of Tatarstan for 2010 19 Perfection of aid measures to injured people during road traffic incidents in the Republic of Tatarstan for 2010 20 Special-purpose programme "Resocialization of people who become free from the places of deprivation of freedom for 2010-2012" 21 Long-term special-purpose programme "Early intervention in accompanying children of early age with disturbance of development and limited abilities in the Republic of Tatarstan in 2009-2011" 22 Republican special-purpose programme "Fire safety for 2009- 2011" 23 Long-term special-purpose programme "Tatarstan’s Fishery Development Programme for 2009 -2013" 24 Programme of socio-economic development of the Republic of Tatarstan for 2005- 2010 25 Republican programme of innovation activity development in the Republic of Tatarstan for 2004- 2010 26 Programme "Development and economics of location of the Republic of Tatarstan on basis of cluster approach for 2020 and for the period up to 2030" 27 Complex programme of demographic development of the Republic of Tatarstan up to 2010 and for the long term up to 2030 28 Programme of fuel and energy complex development of the Republic of Tatarstan for 2006- 2020 29 Improving of government services quality on basis of multifunctional centers of rendering state and municipal services up to 2010 in the Republic of Tatarstan 30 Programme of oil and gas complex development of the Republic of Tatarstan for 2010- 2014 31 Development of biotechnologies in the Republic of Tatarstan for 2010-2020 32 Republican address programme of moving to utility services delivery to consumers according to the indicators of collective instruments of registering for 2009-2011 18 The Republic of Tatarstan: guide to investment
  18. 18. № Name of the programme, the period of implementation 33 Complex programme of population narcotization prophylaxis in the Republic of Tatarstan for 2010 34 Development of youth’s patriotic attitude for 2009-2010 35 Republican special-purpose programme "Development of tourism sphere in the Republic of Tatarstan for 2009-2011" 36 Special-purpose programme of working environment and job safety improvement in the Republic of Tatarstan for 2010-2012 37 Republican special-purpose programme of serving, renaissance, learning and development of public art field in the Republic of Tatarstan for 2009-2011 38 Republican special-purpose programme of terrorism and extremism prevention in the Republic of Tatarstan for 2009-2011 39 Programme "Energy resource effectiveness in the Republic of Tatarstan for 2006 - 2010" 40 Complex programme of lawlessness prophylaxis in the Republic of Tatarstan for 2007 - 2010 19The Republic of Tatarstan: guide to investment
  19. 19. Industrial production rates 2007 2008 2009 january-june 2010 0 200 400 600 800 1000 0 20 40 60 80 100 120 Industrial production index in the Republic of Tatarstan, % against prior year Shipped goods 923,2758,2 932,9 859 480,5 108,9 105,8 91,5 107,9106,3 102,1 89,2 110,2 Industrial production index in Russia, % against prior year Key industries Structure of shipped goods of manufacturing entities, % 2008 2009 Metallurgical production and production of ready-for-use metal goods Production of rubber and plastic goods Vehicles and equipment production Food production, including beverages and tobacco Oil products production Chemical production Vehicles and equipment production Other 19,8 26,1 16,1 10 6,9 6,1 4,9 10,1 20,6 21,2 16,2 12,3 8 6,1 4,8 10,8 Industrial production The volume of shipped domestically pro- duced goods, domestically performed work and provided services in 2009 was RUB 859 billion. The industrial production index in the Republic of Tatarstan was 91.5% to the level of 2008, which is higher than the average Russian rate (89.2%). In first half of 2010 in this indicators pre- served improvements: industrial production in- dex – 107.9% as compared to first half-year period of 2009 year (Russian Federation – 110.2%); shipped goods – RUB 480.5 billion. In 2009 the volume of shipped goods by type of economic activity was: RUB 284.6 bil- lion for mineral resources production; RUB 497.4 billion for manufacturing activity; and RUB 77.0 billion for production and distribu- tion of electricity, gas and water. The industrial production index for mineral resources produc- tion was 100.6%; for manufacturing activity - 85.4%; and for production and distribution of electricity, gas and water - 90.5%. In the first half of 2010 we can see the growth for three main types of activity as compared to volume of the first half year peri- od of 2009: in mining operations – 100.2%, in manufacturing activities – 114.8%, in genera- tion and distribution of electrical energy, gas and water – 107.3%. In 2009, most manufacturing entities had lower production volumes. The most significant reduction occurred in machinery and equipment manufacturing (by 46.8%), woodworking and wood product manufacturing (by 45%), pro- duction of other non-metallic mineral products (43.0%), and production of transportation ve- hicles and equipment (31.2%). The least sig- nificant reduction in production volumes was in textile and clothing manufacturing (0.4%). Chemical production grew by 7.5% as 20 The Republic of Tatarstan: guide to investment
  20. 20. Structure of shipped goods by type of economic activity, % (January-June) I. Fuel and energy mining operations II.Food production III.Textile and clothing manufacturing; leather and leather goods manufacture, shoe making IV.Woodworking, wood product manufacturing V.Pulp and paper production, publishing and printing industry VI.Coke and oil products production; chemical production; rubber goods and plastic articles production VII.Mining operations except fuel and oil mining operations; production of other non-metallic mineral products VIII. Metallurgical production and production of ready-for-use metal goods IX.Machinery and equipment manufacturing; electric, electronic, optical production; vehicles and equipment production X.Other production XI.Generation and distribution of electrical energy, gas and water I-33,7 II-5,5 III-0,3 IV-0,2 V-0,8 VI-27,5VII-1,9 VIII-3,1 IX-19,9 X-0,4 XI-6,7 I-34,9 II-7,2 III-0,3 IV-0,3V-0,9 VI-25,3 VII-2,2 VIII-3,2 IX-15,0 X-0,6 XI-10,1 I-29,4 II-6,7 III-0,3 V-0,9 IV-0,2 VI-30,1 VII-1,4 VIII-3,6 IX-17,7 X-0,3 XI-9,4 compared to the year of 2008; oil products production - by 4.7%; pulp and paper produc- tion and publishing and printing industry - by 3.5%; and food production - by 3.4%. The largest share of shipped manufactured goods is traditionally attributable to vehicles and equipment production (21.2%), chemical production (20.6%), oil product production (16.2%) and food production (12.3%). In the first half of 2010 industry growth was to the fullest extent provided by high rate in production of: rubber goods and plastic arti- cles – 141%, vehicles and equipment – 121.9%, chemical production – 119%, oil products – 108.9%, machinery and equipment – 108.5%. Decrease preserved in woodworking and wood product manufacturing (73.2%). Energy industry The energy industry is the republic’s most important, contributing to the development of almost all sectors of the economy in the region. In 2009, the republic’s energy industry gener- ated 22,171 million kWh of energy (89.9% to the year of 2008). The industrial production index for elec- tricity, gas and water was 90.5% in 2009. In January-June of 2010 in comparison with the 21The Republic of Tatarstan: guide to investment
  21. 21. Electricity production Heat production Mineral resources production rate 2007 2008 2009 January- june 2010 0 5000 10000 15000 20000 25000 30000 electricity production index, % electricity, million kwh 100,6 98,1 89,9 104,6 80 85 90 95 100 105 110 25136 24670,1 22171 11897,7 2007 2008 2009 0 10000 20000 30000 40000 50000 60000 heat production index,% heat, Gcal thousand 99,7 95,6 91,7 110,8 0 20 40 60 80 100 120 55011 52605,5 48248,3 28237,1 January- june 2010 2007 2008 2009 99 99,5 100 100,5 101 101,5 102 % against prior period oil, million tonnes 100,1 0 5 10 15 20 25 30 31,9 32,2 32,4 16 35 102,5 100,7 100,9 101,9 January- june 2010 nies operate in the Republic of Tatarstan, of which the largest is OJSC “Tatneft”. In 2009 the industrial production index for fuel and energy resources was 100.7% as compared to 2008; in January-June of 2010 – 100.1% (as compared to the first half-period of 2009 year, Russian Federation – 105.6%). In 2009 oil production was 32.4 million tonnes (100.7% against 2008), and gas pro- duction was 774.5 million cu m (100.3%). In January-June of 2010 oil production was 16 million tonnes (100.1% against the same pe- riod of 2009 year). Oil refining and petrochemical industry The chemical and petrochemical industry includes production of chemicals, rubber and plastic goods, and oil products. The chemical production output in 2009 totalled RUB 102.5 billion, and the chemical production index was 107.5%. In the first half-year period of 2010 year these indicators are at the level of RUB 71.4 billion and 119% accordingly. In 2009 the fastest production output growth was seen in polyethylene (132.6% of the prior year level), thermoplastics (126.5%), synthetic resin and plastics (120.0%), mineral fertilizers (114.3%) and sulphur (116.7%). In January-June of 2010 the production output of synthetic crystal phenol was 170.6% same period of 2009 this indicator increased to 107.3%. The base of energy system of the Republic of Tatarstan are OJSC «Generating company», OJSC «ТGK-16», LLC «Nizhnekamskaya TPP», CJSC «TGK Urussinskaya GRES», OJSC «Grid company», OJSC «Kazan heating grid com- pany», OJSC «Naberezhnochelninskaya heating grid company», LLC «Urussinskiye heating sys- tem » and guaranteed supply company – OJSC «Tatenergosbyt». Oil production The main products produced in this sector are oil, associated gas, heating oil, diesel and petrol. Oil is the main treasure of Tatarstan’s mineral wealth. Probable reserves amount to around 1 billion tonnes. Thirty-four oil compa- 22 The Republic of Tatarstan: guide to investment
  22. 22. Rubber and plastics production rate 2007 2008 2009 first half of the year of 2010 0 50 100 1 05 2000 4000 6000 8000 tyres for trucks, buses.trolleybuses,thous.items tyres for passengers vehicles,thous.items rubber and plastics production index, % against prior year 0 4628,8 4226,8 3085,8 1610,9 7516,7 7376,6 6161,4 3499,9 103,3 105,6 77,4 141 Chemical production dynamics 2007 2008 2009 January- June 2010 95 100 105 110 115 120 125 130 100 200 300 400 500 600 700 800 polyethylene, thousand tonnes mineral fertilizers, thousand tonnes chemical production index, % against prior year 0 525 552,1 731,9 406,7 100,8 62,2 71,1 45,4 525 105,6 107,5 119 as compared to the same period of 2009 year, glycerin (168.4%), synthetic rubber (137.8%), technical carbon (115.6%), plastic (114.2%), ethylene polymer (111.7%), sulphur (111.6%). The production output of rubber and plas- tic goods in 2009 was RUB 39.9 billion; the in- dustrial production index was 77.4%. The share of truck tyre production in rubber and plastic goods manufacturing decreased by 27.0%; the share of passenger vehicle tyre production de- creased by 16.5%; and the share of agricultural machine tyre production fell by 32.2%. The industrial production rate in the first half of the year of 2010 is at the level of 141% and the volume of shipped products of the enterprises on the production of rubber and plastics is RUB 23.3 billion. In comparison with the same period of 2009 year at the beginning of 2010 year in the production of rubber and plastics production of glass-fibre plastic and products from it de- creased by 46.8%; production of form rubber industrial products increased to 40%; produc- tion of tyres for agricultural cars increased by 34.7%; production of tyres for passenger ve- hicles increased by 33.6%; production of tyres for trucks, buses, trolleybuses increased by 16.8%; plastics production increased by 8.3%. The oil product production index in 2009 was 104.7% (in January-June of 2010 it was 108,9%). Production of heating oil was in- creased by 7.7%, diesel fuel production - by 2.9%. The production of automobile gasoline in 2009 was decreased by 11.2%. These indexes in January-June of 2010 in the comparison with the same period of 2009 were increased to 8,3%, 6,6% and 3,3% ac- cordingly. Oil products production rate 2007 2008 2009 100 104 108 112 500 1 000 15 00 2 050 automobile gasoline, thous.tons diesel fuel, thous.tons heating oil, thous.tons 0 oil product production index,% against prior year 102 106 110 20 00 555,1 696,4 618,4 341,2 1813 2022,5 2080,7 1134,7 2058,1 1910,3 2057,3 1104,7 103,4 110,2 104,7 108,9 first half of the year of 2010 23The Republic of Tatarstan: guide to investment
  23. 23. Vehicle production 2007 2008 2009 0 20 45 60 80 100 120 10 20 30 40 50 60 70 trucks, thous.items passenger vehicles, thous.items transportation vehicles and equipment production index,% 0 52,8 62 27,9 19 21,8 36 5,4 2,7 131,9 117,3 68,8 121,9 first half of the year of 2010 MECHANICAL ENGINEERING AND METALWORKING Mechanical engineering and metalwork- ing includes metallurgical production and pro- duction of finished metal goods, machinery, electrical and optical equipment, and transpor- tation vehicles and equipment. The republic’s major companies are OJSC “KAMAZ”, OJSC “Compact Cars Plant”, OJSC “Kazan Helicop- ter Plant”, OJSC “Kazan Compressor Machinery Plant”, OJSC “Alnas”, OJSC “Plant named after A.M. Gorky”, OJSC “KMPO”, and the Federal State Unitary Enterprises Gorbunov KAPO and the Sergo Plant. – 121,9%, production of motor cars was de- creased to 36,6%; the production of trucks was increased to 52,4%, household refrigera- tors and deep freezes – to 4,8%, tractors – to 44,4%, the production of steel pipes was increased to 25,9% in the comparison with the same period of 2009. AGRICULTURE Agriculture is one of the most stable sectors of Tatarstan’s economy. Though the republic is located in what is considered to be a difficult farming environment, Tatarstan has neverthe- less over the last few years yielded one of the largest grain harvests in Russia, with only the native grain-growing regions of Russia’s south producing more. In 2009, the Republic of Tatarstan Agricul- tural Development Programme for 2008-2012 continued to be implemented. Tatarstan’s share in Russia’s agricultural production output exceeded 4.7%. The agri- cultural production output for all agricultural producers (agricultural entities, residential households and farms) was RUB 119.1 billion, or 100.1% in comparable prices against the 2008 level. By the results of 2009 Tatarstan ranks No.5 in Russia on the volume of ground corn harvest and No.1 on the gathering of potatoes. The republic took second place among the regions of the district in agricultural entities’ meat production per capita (overall in Russia – eleventh place) and third place in milk pro- duction per capita (overall in Russia – fifth place). The volume of agricultural products in the first half of the year of 2010 made 49,6 bln. rub. and exceeded the level of the first half of 2009 in the comparable prices to 5,2% (in the Russian Federation – to 2,9%) because of the growth of production of cattle breeding products. In the structure of total cultivation area in 2010 in the comparison with the past year the share of industrial and feed crops was increased. The share of cereal crops was de- creased. The industrial production index for ma- chinery and equipment in 2009 as compared to 2008 was 53.2%; for electrical and optical equipment production - 87.3%; for produc- tion of transportation vehicles and equipment - 68.8%; and for metallurgical production and production of finished metal goods - 81.8%. Compared to 2008, the production of passen- ger vehicles decreased by 6.7 times; production of commercial vehicles decreased by 2.2 times; household refrigerators and freezers - by 1.4 times; tractors - by 4.5 times. Steel pipe pro- duction increased by 7.3% as compared to the 2008 level. In January-June of 2010 the index of pro- duction of cars and equipment made 108,5%, production of electrical, electric and optical equipment – 107,6%, vehicles and equipment 24 The Republic of Tatarstan: guide to investment
  24. 24. Production of agricultural products 2007 2008 2009 0 40 80 94 98 102 106 in copartable prices, in % to the previous year in current prices, bln.rub. 120 140 110 93,5 117,3 119,1 49,6 105,4 108,8 100,1 105,2 first half of the year of 2010 In January-June of 2010 in the agricultural enterprises 2458 kg of milk at the average was produced per cow, that 172 kg (7,5%) more than in the same period of 2009. Egg-laying capacity of laying chickens increased to 0,9% in the comparison with January-June of 2009 and made 152 pieces. According to the reports and estimated data the production of meat (in live weight) was increased to 13,3 thous.tons or 7,9%, milk production - to 58,9 thous.tons or 6,5%, production of eggs - to 50,1 mln. pieces or 9,7%. Fishing industry The long-term Fishery Development Pro- gramme for 2009-2013 is being implemented in the Republic since August of 2009. The objective of this programme is to ensure favourable conditions for the sustain- able and rapid growth of Tatarstan’s fishing industry in order to meet the needs of the fish product market, create new jobs, and increase budget revenues at all levels. CONSTRUCTION The volume of works by the type of activity “Construction” in 2009 made 184,1 bln.rub. In the first half of the year of 2010 this volume of works is at the level of 54,6 bln.rub., increased the level of the same period of the previous year to 4,9%. In 2009, 2,010.2 thousand sq m of new housing was commissioned in the Republic of Tatarstan, of which 805 thousand sq m was covered by the mortgage programme. The total area of housing, commissioned in the territory of the Republic by the enterprises and organizations of all property forms and also on the account of own means of citizens in the first half of the year of 2010 made 938,8 thous. sq.m., 16,9% less than in the same period of the previous year. The average level of housing per capita in 2009 was 22.3 sq.m.; putting of new housing per capita into operation was an average 0.53 sq.m. In 2009 year the Republic of Tatarstan takes the sixth place in Russia (after the Moscow Re- gion, Krasnodar Territory, Moscow, Saint Pe- tersburg, the Republic of Bashkortostan) by the volume of new housing. The volume of new housing is 3.4% of the total Russian volume. Volume of works by construction (bln.rub.) 0 50 100 150 90 100 110 120 volume of works by type of activity "Construction", bln.rub. 200 86,6 102,6 119,2 104,9 124 157 184,1 54,6 100,2 104,5 2006 2007 2009 2008 firsthalf oftheyear of2010 in % to the previous period in comparable prices Housing in the Republic of Tatarstan, thous. sq.m. 2006 2007 2009 0 1000 1500 2000 0 40 80 120 in % to the previous year thous.sq.m. 2500 108,3 2008 1778,3 2040,7 2222,5 2010,2 938,8500 114,8 108,9 90,4 83,1 firsthalf oftheyear of2010 20 21,5 22 22,5 23 21 20,5 21,9 22,3 2008 о 2009 о Housing per resident, sq.m. 25The Republic of Tatarstan: guide to investment
  25. 25. The republic is situated at the intersection of major transport routes: railway (Trans-Sibe- rian Railway and the North-South line), river (the Volga and Kama rivers, flowing to the Caspian Sea, the Urals and the Moscow Re- gion) and highway (Centre–Far East Federal Motorway). Highways. Hard-surface public roads cover 18,500 km, including such federal mo- torways as: Moscow–Nizhny Novgorod–Kazan–Ufa–•• Chelyabinsk; Moscow–Nizhny Novgorod–Kazan–Perm–•• Ekaterinburg; Moscow–Nizhny Novgorod–Kazan–Oren-•• burg; St Petersburg–Yaroslavl–Nizhny Novgorod–•• Kazan; Kazan–Ulyanovsk–Samara–Volgograd–As-•• trakhan. Tatarstan has three cargo ports with five cargo territories, four passenger ports (Kazan, Naberezhnye Chelny, Chistopol, and Nizhneka- msk), six inland water terminals and the fol- lowing three railway transport companies: OJSC “Kazan Cross-Industry Enterprise•• “Promzheldortrans”, LLC “Zheleznodorozhnik”,•• LLC “Promtrans”.•• The first metro line in Kazan was opened on August 27,2005. As of today, there are six operating stations, and three stations under construction. Railways. The following railway lines run through the republic: Moscow–Kazan–Ekater- inburg, Kazan–Volgograd, and Naberezhnye Chelny–Bugulma. Airports. Tatarstan’s international airports operate scheduled flights to Germany, Greece, the Czech Republic, Cyprus, Turkey, Azerbai- jan, Uzbekistan and Tajikistan. TRANSPORT INFRASTRUCTURE AND COMMUNICATIONS Six airports are located in the Republic of Tatarstan, two of them (Kazan and Begishevo) are of federal meaning. River transport. The Volga, Kama and Vyatka rivers are navigable waterways. There are passenger river ports located in the cities of Kazan and Chistopol (on the Volga), Nizhneka- msk (on the Kama) and the towns of Tetyushi and Bolgari. The Volga and Kama rivers ac- count for the bulk of river traffic. Oil and gas pipelines. The world’s largest oil pipeline, Druzhba, starts in the Republic of Tatarstan. Trunk gas pipelines carrying natural gas from the Urengoy and Yamburg fields to Western Europe also run through the republic. Cargo transportation. In 2009, the repub- lic’s motor transport entities (including small entities and entrepreneurs dealing with com- mercial cargo) transferred 10,4% less commer- cial cargo than for the corresponding period of 2008 (26.5 million tonnes). Over the period in Transport connection Web-site Contact telephone Airport http://www.airport.kazan.ru/ +7 843 267 88 07 +7 843 267 87 92 +7 843 267 88 82 Railway sta- tion http://pass.rzd.ru/ +7 843 294 04 00 +7 843 294 05 00 Commercial cargo turnover of automobile transport (% against prior year) 2008 о 2009 о 0 80 120 160 40 Cargo turnover of automobile transport entities of all types activity Cargo turnover of specialisied automobile entities 155,2 153,1 89,8 92,6 26 The Republic of Tatarstan: guide to investment
  26. 26. question, cargo turnover decreased by 10.2% to reach 2,366.8 million tonne-kilometres. The volume of cargo transported by specialized automobile transport entities, including small entities and entrepreneurs dealing with com- mercial cargo, decreased by 9.5% to reach 24.6 million tonnes. The cargo turnover was 92.6% of the 2008 level (2,204 million ton- nekilometres). Large and medium specialized automobile entities account for about 73.4% of the cargo transportation volume (18.1 mil- lion tonnes). The share of these entities in the total volume of commercial cargo turnover was 37.3% (822.9 million tonne-kilometres). RUB 14,088.4 million was spent on imple- menting Tatarstan’s Transport Development Programme for 2006-2010, of which RUB 7,412.9 million was allocated from the Tatar- stan budget (the plan provides for raising RUB 20,971 million, which includes RUB 8,064.46 million from the regional budget). Logistics centers During the last decades there are the sig- nificant changes in the world trade. The turnover between the countries of Europe and Asian and Pacific region is dynamically developing. The exporters search for new transport cor- ridors, allowing growing the cargo traffic. The directions of cargo traffic between Europe and Asia are coincided with the principal direction of transportation in Russia. In the zone of their gravity more than 70% of population and indus- trial potential of the country is concentrated. Today in the world all cargo handling ter- minals, ports, logistics centers, bases, roads, bridges, subways, trading fleet, cargo rolling equipment is constructed and reequipped to 20 or 40-foot containers. The containerization of cargo traffic was already exceeded over 70%. Hereby, the development of the transport system is focused around developing logistics technology, coordinating all modes of transport, and building up the infrastructure for interna- tional transport corridors. This system should be based on federal multimodal logistics centres established in the country’s large transportation centres: Moscow, St Petersburg, Kaliningrad, Kazan, Murmansk, Astrakhan, Rostov and Ekaterinburg. In the framework of creating a network of gateway terminals, the Republic of Tatarstan is implementing a project to set up an interregional multimodal logistics centre in Sviyazhsk. The importance of the Sviyazhsk terminal will increase significantly following the creation of the Baltic–China transport corridor, which will cross the republic. It will become not only the largest traffic terminal for the Volga region, but the redistribution centre for cargo traffic along three international transport corridors (Baltic– China; South–North; East–West). The centre will unite all modes of transport: motor, railway and water to begin with, and pipeline and air transport will be added in the future. It will provide the great opportunities for the processing not only wide range of cargo but also will create the suppositions for the develop- ment of powerful production complex. The Russian Transport System Development Programme for 2015 provides for the Sviyazhsk centre to be created as a public private partner- ship. The project cost is roughly RUB 18,3 billion. The implementation of such projects gives us an indication not only about the prospective structure of cargo traffic system in the territory of country, but also the wider vision of role and significance of transport and logistic infrastruc- ture in whole. In the past year, the situation with Class A warehouse space has changed significantly. In 2009 three European-quality logistics centres with the potential for expansion were opened in the republic. The availability of such warehouses will help to improve the level of services provided by the republic’s transport companies and logis- tics operators, which is important from an inter- national trade agreement perspective. The largest world-class industrial park in the Volga region, Biek Tau, was officially opened on September 30, 2009. The park is designed to ac- commodate manufacturing facilities and Class A warehouses. The park is located on the M7 federal highway and has a planned capacity of 260,000 sq m, which can handle products and cargo of up to 9.5 million tonnes per year. 27The Republic of Tatarstan: guide to investment
  27. 27. The first part of the Konstantinovsky modern logistics complex was put into operation in the republic’s high-altitude region in June of 2009. The total floor area of Class A warehouses for handling and storing cargo is 44,000 sq m. In addition, in April of 2009 the first part of the Q – Park Kazan logistics complex was opened. The complex neighbours Kazan Interna- tional Airport, and its total floor area is 230,000 sq m. The complex is a Class A warehouse that meets all global standards. International airport «Kazan» The Evaluation Committee of the Interna- tional University Sport Federation said moderniz- ing Kazan International Airport was a key condi- tion of azan hosting the World Student Games in 2013. To upgrade the airport, it has been decided to: extend Runway – 1 to 3,750 metres and•• widen it to 60 metres; reconstruct terminal apron and passenger•• terminal No.1; build a new arrival/departure zone for pas-•• sengers, cargo terminals, hotels and a new pas- senger terminal. These actions will increase the airport’s an- nual servicing capacity to 1.2 million passengers and 60,000 tonnes of cargo per year. The airport upgrade costs are expected to total RUB 9 billion, including RUB 3 billion for plate structure reconstruction. Electronic government and telecommunications Electronic government Under a public-private partnership, for the last ten years the Tatarstan Ministry of Informa- tisation and Communications has ensured invest- ments in communications infrastructure and the implementation of federal and regional special- purpose programmes in a total amount of RUB 17.8 billion, including RUB 728 million from the budget (RUB 302 million from the federal budget and RUB 426 million from Tatarstan’s budget). Records in all Tatarstan’s executive bodies are managed electronically. Electronic document management is used by 800 organisations and 10,000 governmental and municipal officers. The seven most popular governmental and municipal services are now available in e-form. The state information centre of the Repub- lic of Tatarstan was organised in 2009 and in- cludes: 1) the government integrated telecommuni- cations system of the Republic of Tatarstan – a high-speed and secure infocomm infrastructure uniting over six thousand governmental agencies of the federal, regional and local levels in the republic; 2) special portals: Government–People and Government–Business; 3) a new portal of government and munici- pal services of the Republic of Tatarstan; 4) electronic information kiosks which allow anyone to receive self-service e-services; 5) a processing centre for telephone and video requests for governmental and municipal services. The Republic of Tatarstan’s Electronic Goods Information System was put into operation to support Russian manufacturers in the difficult economic conditions. The system went live on March 1, 2009 in order to ensure that the repub- lic’s manufacturers are given priority when gov- ernment and municipal purchases are made.. Telecommunications The Republic of Tatarstan has an extensive telecommunications system that meets interna- tional standards. In 2009 revenues from tele- М 31% Rostelecom 69% 28 The Republic of Tatarstan: guide to investment
  28. 28. communication services provided by entities of all types of activities amounted to RUB 23,300 million, in January-June of 2010 by primary esti- mates it is amounted to 11990 mln.rub., also for the citizens – 7265 mln.rub. Forty operators provide local telephony ser- vices in the Republic of Tatarstan. Percentage of subscribers who selected their operator in advance, based on 2009 results (oth- er operators account for less than 1%) There are 2,788 base station sites and 12 mobileswitching centres with total installed ca- pacity of 6.93 million numbers operating in the republic. INTERNET IN THE REPUBLIC OF TATARSTAN ACHIEVEMENTS: GOALS: Broadband Internet penetration rate Broadband Internet penetration rate – 50% Number of broadband Internet users – 653,000 Total number of Internet users – 1.617 million Internet penetration rate – 70% Broadband Internet speed – at least 10 Mbps WiMax penetration rate – at least 25% Implementation of 4.5G standard based on LTE technology Internet 2009 could be called the year of the Internet. Significant work has been done to reduce tariffs, attract new entities to the internet services mar- ket, and develop alternative access technologies. The level of broadband Internet access increased to 50% and reached 653,000 users. The total number of Internet users was 1,617,000 people. A number of entities commenced implemen- tation of the 4G standard based on WiMax tech- nology. A new player appeared on the market: the Scartel company (Yota trade name), whose goal is to cover big cities using an attractive price policy. 29The Republic of Tatarstan: guide to investment
  29. 29. Law «of innovative activity in the Republic of Tatarstan» The goal of the law “of innovative activ- ity in the Republic of Tatarstan” № 63-3RT as of 2.08.2010 is to create a good juridical basis of the processes of reorientation of region’s economy to the innovative growth course. For the characterization of contensive as- pects of this legislation it should be noted that the process of its development and making all administrative procedures before the approval took about two years. This legislative act was appeared as a result of all-around analysis, systematization and generalization of the ad- vanced regional experience of government reg- ulation in this sphere of administration. Consequently the law will allow deciding three fundamental tasks of the Republican in- novation policy, namely: 1. Introduction of glossary of thematic terms and definitions from the innovative sphere into the juridical field of Tatarstan for the achievement of unique understanding of innovative activity content by all its subjects. 2. Making for greater clarity into the logic of distribution of power authorizations, con- nected with the provision of innovative devel- opment, by the way of definition in the exist- ing structure of executive authority of so called “authorized agency”. It is supposed that this public institute will become “center of respon- sibility” of the Republican model of innovative processes’ regulation. 3. Strengthening at the legislative level of the most effective instruments of state encou- rangement of innovations. Among of them the most promising and perspective (among the direct methods) are the centralized state order for researches and working-outs, among the indirect ones – provision of fiscal preferences to the innovation active enterprises and com- panies. INNOVATIVE DEVELOPMENT Undoubtedly, the approval of this law will allow achieving the definite results in terms of optimization of procedures of development and execution of regional innovative policy in the Republic of Tatarstan. Technology parks of the Republic of Tatarstan There are six technology parks and IT in- novation centres in the republic’s capital: Tech- nopolis “Khimgrad”, OJSC “Innovation and In- dustrial Technology Park “Idea”, Research and Technology Park of SEUofHPE “Kazan State Technology University” (Foresight Technology Park), Research and Technology Park “Innova- tion Centre of Kazan state university”, Innova- tion and Technology Centre OJSC “KNIAT” and Research and Technology Park of KSTU named after A.N.Tupolev. In addition, relatively separate structural elements function within the above facili- ties, such as the business incubator “Sviya- ga”, business incubator of KSTU named after A.N.Tupolev, the Volga Region Light Industry Innovation and Technology Centre and Kh- imgrad Industrial Park. There are five operating technology parks in other cities of the republic: LLC Innovation and Industrial Technology Park “Idea-South- East”, OJSC Technology Park “Vostok”, Re- search and Industrial Non-Commercial Partner- ship “Prikamya Technology Park”, OJSC “Master Kama Industrial Park” and business incubator of Elabuga city. There are also four centres for innovation: Industrial Park “Master”, Kamskiye Polyany Industrial Park, and independent busi- ness incubators in Almetyevsk (“Impulse”) and Chistopol cities. Apart from the above, a busi- ness incubator in Naberezhnye Chelny city was launched in 2007. The opening of the “youngest” facility of the regional innovation system, the IT Park, is 30 The Republic of Tatarstan: guide to investment
  30. 30. special because this park was created under the government programme “Creation of Hi- tech Techno Parks in the Russian Federation”. Setting up this development institute aimed at large-scale commercialisation of communi- cation and IT projects (the largest in the East- ern Europe) required RUB 3 billion in govern- ment financing, including approximately RUB 1.1 billion from the federal budget. Another site at the IT Park, designed for localizing and scaling of small and medium innovative chemical and petrochemical enter- prises, is currently under construction. A collective use centre, certification lab, corporate university and a number of other links in the R&D commercialisation chain will be established in the second “launching area” of this innovation infrastructure facility. The KAZAN Naberezhnye Chelny Elabuga Chistopol Leninigorsk THE INNOVATION INFRASTRUCTUR OF THE REPUBLI C OF TATARSTAN OJSC “Innovation and industrial technology park “Idea” Technopolis “Khimgrad” KSTU center for innovation activity research and technology park Èííîâàöèîííî-òåõíîëîãè÷åñêèé öåíòð OJSC «KNIAT» LLC “Center for constructive interindustry solutions” Research and technology park SEU of HPE “Kazan state technology university” OJSC “Technology park “Vostok” Business-incubator LLC “Innovation and industrial technology park “Idea-South-East” Business-incubator Alabuga special Economic Zone for Industry and Manufacturing OJSC “Kamsky industrial park “Master” Prikamya technology park research and industrial non-commercial partnership Business-incubator total headcount of this second site will exceed 3,500 people. InnoVaTIon MeMoRanDUM of The RePUblIc of TaTaRsTan foR 2008–2010 Republic of Tatarstan Cabinet of Ministers Resolution No. 357 of June 3, 2009 introduces a number of amendments to the wording of the Innovation Memorandum of the Republic of Tatarstan for 2008-2010 concerning mac- roeconomic benchmarks for the republic’s in- novation policy and target performance bench- marks for regional innovation system facilities. The Innovation Memorandum will be fur- ther improved by updating the target bench- marks for developing the republic’s research and education facilities. 31The Republic of Tatarstan: guide to investment
  31. 31. INNOVATION MEMORANDUM • a group of affiliated innovative small businesses • a network of “endogenic” innovative infrastructure Creating an “innovation belt” of research and educational facilitiesNEW BENCHMARKS FOR RESEARCHAND EDUCATION FACILITIES FOR THE CREATION OF: Mass commercialization of the results of internal research and development Expansion of non-budgetary streams of financing research and studies Innovation and Industrial Technology Park “Idea” The business model for Technology Park “Idea” provides for the presence of anchor residents and small innovative companies. To date, 82% of the Technology Park capacity has been filled. Among its anchor residents are representative offices of DHL, McDonalds, Siemens, NPP GKS, GNO RT In- vestment and Venture Fund and the recently opened Yokogava Electric CIS and ZAO GE Money Bank. In five years of its operation, 117 companies have become residents of the Innovation and Industrial Technology Park “Idea”. The head- count in resident companies is approximately 1,600 people, and their average salaries are higher than the average in the republic. The technology park is one of the largest in Europe in terms of area occupied (30,000 sq m on 2 ha of land in the centre of Kazan). The technology park’s infrastructure in- cludes three main blocks: Innovative business incubator with office•• premises for innovative projects at their early development stages (2,500 sq m); Innovation technology centre with office•• premises for new innovative companies (14,200 sq m); Business park with office premises for ser-•• vice companies and companies that are ex- panding (four buildings with a total area of 10,300 sq m). Idea Innovation and Industrial Technology Park has become one of four winners of the first contest to create a nanotechnology cen- tre in Russia, held by the Rosnanotekh State Corporation. The results of the contest were announced on March 26, 2010. The Rosnano State Corporation is planning to invest RUB 1.72 billion to create a nanotech- nology centre in Kazan: RUB 1.5 billion to buy innovative equipment, train qualified personnel and maintain the centre’s operation, and RUB 225 million to set up a Technology Transfer Centre based on the Khimgrad Technopolis. The total value of the bid is RUB 3.4 billion. The remaining investment is expected to be raised from private investors. The new facility will become the base for various research initiatives, as well as for training students. The centre’s objectives will include incubating and supporting innovative companies, working out and introducing new technologies in the nano industry, engineering development for commercial firms and provid- ing equipment for hands-on work. The main areas of future research are pharmaceutics, composite materials, spintronics and reagents. Address: 50 Peterburgskaya Ul., Kazan, 420107 Telephone/Fax: +7 (843) 570-68-50, +7 (843) 570-68-40 e-mail: info@tpidea.ru http://www.tpidea.ru/ 32 The Republic of Tatarstan: guide to investment
  32. 32. NANOTECHNOLOGY DEVELOPMENT An integrated programme for the pro- jected development of the nano industry in the Republic of Tatarstan until 2015 has been developed; it includes 174 R&D projects to cre- ate nanotechnologies and nano materials and promote their industrial application in various sectors of the economy. The programme’s funding is RUB 181.7 billion. One priority infrastructure project is the International Nanotechnology Centre Project. Under this project, a NANOFAB Centre based on the Idea Technology Park is planned to be created. The implementation of this programme helped to systemically solve problems connect- ed with achieving the republic’s main goals for the nano industry’s development; create a trig- ger for the innovation process by developing and implementation it in the republic’s priority industries; create complete technology cycles – from research to final industrial consumers of nano products and technologies – in the most “advanced” projects; identify and promote competitive products based on nano materials and technologies in petrochemicals, aircraft, automotive, shipbuilding and mechanical engi- neering, medicine and other industries. It is expected that implementing the pro- gramme will result in a 39% increase in the manufacturing of innovative products in the republic and an increase in the people em- ployed in hi-tech and science-driven sectors of the republic’s economy to 50,000. 33The Republic of Tatarstan: guide to investment
  33. 33. At the end of 2005, Tatarstan submitted its Elabuga region in the Russia-wide competi- tion to select sites for special economic zones of production and industrial type. Tatarstan was selected as one of the first two SEZs to be created. Alabuga’s selection de- pended on objective factors, such as success in stimulating investment activities, advantageous geography, and a well-developed manufactur- ing sector and transport infrastructure. Begi- zhevo airport is within 45 km of the Alabuga SEZ. The SEZ has access to the Moscow-Ufa- Kazan-Chelyabinsk federal highway. It also has access to the nearby river ports of Chelny and Nizhnekamsk, which form part of a unified deep-water transport system in the European part of Russia. All the necessary infrastructure is in place for each resident site: roads, railroads, utili- ties, electricity, heating, gas, water, sewage systems, high-speed Internet connection, etc. More than 10 bln.rub. has been invested in the infrastructure of the Alabuga SEZ. The Elabuga customs terminal has been in operation at the Alabuga SEZ since April 21, 2008. The customs terminal, 60 ha in area, is SPECIAL ECONOMIC ZONE OF PRODUCTION AND INDUSTRIAL TYPE “ALABUGA” equipped with state-of-the-art equipment that optimizes customs clearance time. Companies that participate in the SEZ are assumed to be high-technology, export- oriented manufacturers that will reduce the republic’s dependence on imports. Resident companies will thus need to sign an agreement with the Russian Ministry of Economic Devel- opment on conducting manufacturing activities and investing in the production assets in the SEZ. According to the new version of the Law No.116-FL “On special economic zones in Rus- sia”, companies should invest at least 3 mln. euro. The SEZ will be of great interest to foreign and domestic because it will give them several clear competitive advantages: By registering in the SEZ, a legal entity will•• be granted a number of tax benefits. In par- ticular, they will be exempt from property tax for 10 years (from the moment their property is registered), land tax (from the moment they obtain the title to the land plot) and transport tax payable to the Tatarstan budget. Residents will have other additional tax privileges, includ- ing a profit tax rate of 15.5%. Comparative table of taxation in the Republic of Tatarstan and SEZ “Alabuga” Tax Rate Budget allocation Federal Regional Local 1. Income tax 20,0% 2% 18% Local for the residents of SEZ 15,5% 2% 13,5% - 2. Value added tax 18,0% 18,0% - - for the residents of SEZ 18,0% 18,0% - - 3. Property tax 2,2% - 2,2% - for the residents of SEZ 0% - 0% - 4. Land tax 1,5% - - - for the residents of SEZ 0% - - 1,5% 5. Transport tax Rates depending on the type and capacity of the transport vehicle - Rates depending on the type and capacity of the transport vehicle 0% for the residents of SEZ 0% - 0% - 34 The Republic of Tatarstan: guide to investment
  34. 34. List of Alabuga SEZ resident companies № Name of company Products manufactured under the project Planned volume of investments (USD mil- lions) Planned number of jobs (units) 1 LLC «Severstal-Elabuga» http://www.sollers-auto.com/ru/ Production of commercial motors FIAT Ducato 250 2500 2 CJSC «Severstalauto-ISUZU» http://www.isuzutrucks.ru/ Production of ISUZU trucks 83,3 1500 3 CJSC «Polimatiz» http://www.polymatiz.ru/ Production of modern spun- bond and spunmelt nonwo- vens 50 110 4 LLC «Rokwool-Volga» http://www.rockwool.ru/ Production of mineral wool products 210 150 5 CJSC «Technical equipment factory» http://www.alabuga.ru http://oao-oez.ru/ Production of heat pumps and components for climate control systems 20 200 6 LLC «Septal» http://www.alabuga.ru Production of equipment for local and small sewage systems 28 200 7 LLC «P-D Tatneft Alabuga Glass fibre» http://www.alabuga.ru Production of glass fibre and associated glass fibre products 70 300 8 LLC «Air Liquid Alabuga» http://www.airliquide.ru Production of technical gases: liquid oxygen, liquid nitrogen, gas oxygen 35 40 9 LLC «Akulchev-Alabuga» http://www.akulchev.ru Confectionary and bakery 10,9 156 10 LLC «Belaya Dacha Alabuga» http://alabuga.oao-oez.ru/ Production of salads and vegetables 18,5 250 11 LLC «Sollers-Stamp» http://www.alabuga.ru http://oao-oez.ru/ Press and welding engineer- ing of components of car- riage box and chassis 100 300 12 LLC «Kastamonu Integrates Wood Industry» Production of panels of fo- cusing minimum distance 89,7 235 13 CJSC «Trakya Glass Rus» Production of glass plate, coated glass, mirror 247 377 The SEZ will also be a free customs zone,•• with any foreign equipment installed and used within it being exempt from customs duty and VAT. Additionally, manufactured goods trans- ported from the zone will be exempt from export duties. Russian goods will be kept and used under terms and conditions in accordance with the customs treatment of exports, which stipulates the payment of excise duties while waiving export customs duties. SEZ residents have the right to apply a spe-•• cial coefficient (no more than two) to the base depreciation rate of their fixed assets. R and D expenses (including those with no•• positive results) incurred by taxpayers registered and operating in the SEZ will be recognized in their actual amount in the reporting (tax) pe- riod in which they were incurred. Restrictions on loss carry forwards incurred in•• the previous tax period were waived for the SEZ resident companies. “A single window” system operates in the•• Alabuga SEZ. This enables residents to interact with the governmental authorities without leav- ing the SEZ and seriously reduces the amount of red tape. 35The Republic of Tatarstan: guide to investment
  35. 35. Audits of SEZ residents by government super-•• visory authorities are held according to a special procedure at least once every two years. Consequently, depending on the business, all of these benefits can lower costs for inves- tors significantly. According to the long-term develop- ment strategy, by 2011 the construction of all types of infrastructure facilities (engineering, customs and business) will be complete. The construction of a Kama-500 substation of 500 mW capacity (outside of Alabuga SEZ) is planned to satisfy residents’ demand for elec- tric power. By 2012, it is planned to open 40 resident companies manufacturing various products in 2oroducts -3rTJT*[(pharmaceutcanls,)etc
  36. 36. Universiade or the World Student Games are the second-largest international sports event after the Olympics. On May 31, 2008 in Brussels, Kazan was selected to host the Summer World Student Games-2013. Igor Shuvalov, First Deputy Chair- man of the Russian Government, has been ap- pointed the head of the World Student Games Organizing Committee. Universiade have been held in Russia only once before – in Moscow in the summer of 1973. Our delegations to the winter and sum- mer Universiade have always been and remain very competitive. Since 1993, Russian athletes have won 503 medals at the Summer World Student Games and 247 medals at the Winter Games. About 12,000 athletes and members of delegations from 170 countries, 1,500 mass media representatives and 100,000 tourists and fans are expected to take part in the Sum- mer World Student Games in Kazan. A record number of sports have been announced for the 2013 Games – 26 in total (of which 13 are main sports and 13 are additional). The Universiade Village in Kazan will be one of the best in the history of the World Student Games. It will have an informational and en- tertainment center, a stadium and sports gyms. The housing will accommodate 14,500 people. After the Universiade end, the Village will be used as a student campus with a training center for teams selected from various sports. Some 64 sports facilities concentrated in four areas of Kazan are planned to be used in the games (28 sports facilities exist and will be renovated and 36 are under construction). 23 new modern sports complexes and sta- diums, among of them such unique sports fa- cilities as the Palace of single fights “Ak Bars” and Academy of tennis named after Shamil Tarpizchev, are opened and work. In May,2010 the Chairman of the Govern- UNVERSIADE–2013 ment of Russia Vladimir Putin opened seven new facilities and laid the corner stone of new football stadium for 45 thous.places. The eleventh facility of the Universiade 2013 opened its doors in Kazan’s Kirovsk district on March 1, 2010. The Olympian Universal Sports Complex will host the volleyball competitions. The federal budget has allocated about 300 mln.rub. for the construction of the Olympian. The Central stadium will serve as the center for track and field competitions. Rowing com- petitions will be held as part of the World Stu- dent Games. In connection with this, a rowing channel will be arranged in Kaban Lake. A separate facility for gymnastics will be built next to the Village. Water polo competi- tions will be held in the Orgsyntez swimming pool. The fencing tournaments will be held in the pavilion of Kazanskaya Yarmarka Exhibi- tion center. Batyr sports complex will welcome weight-lifters. Beach football and volleyball competitions will be held at the new Kazan racetrack. All the sports facilities should be ready by the end of 2012. After the World Student Games are over, the new facilities will be handed over to Ka- zan’s universities, children’s sports schools and Olympic reserve academies. According to the FISU requirements the transport infrastructure should allow delivering the sportsmen from the airport of Kazan city to the complex of Universiade village during no more than 20 minutes. One of the directions of transport infrastructure modernization is a large-scale reconstruction and construction of highways and junctions in Kazan city. By 2013 in Tatarstan more than 12 junctions should be created. They should help redistributing the in- tensity of traffic in the center of city. A great attention is paid to the develop- ment of Kazan underground. In 2010 one more 37The Republic of Tatarstan: guide to investment
  37. 37. new station “Kozya Sloboda” will be put into operation. Considering the necessity of speed mode of passenger transport the financing of this direction will be continued. In 2012 it plans to finish the reconstruc- tion of the international airport “Kazan” that will meet all modern demands of flights’ safety and level of passengers’ service. It is necessary to reconstruct the building of Kazan river boat station, pier of river port, passenger quays Verkhny Uslon, Nizhny Uslon, Matyushino and Kyzyl Bayrak and also to con- struct the tourist quays in Bulgar city and is- land-town Sviyazhsk for the Universiade-2013. It is also necessary to buy 20 modern boats of “Meteor” and “Voshod” types because of the wear of passenger boats. 38 The Republic of Tatarstan: guide to investment
  38. 38. FOREIGN TRADE The Republic of Tatarstan foreign trade turnover in 2009 was estimated to be USD 13.4 bln., a decrease of 37% as compared to 2008 (in Russia: 35.1%). USD 11.7 billion worth of goods was ex- ported, which is 36.8% less than in 2008. Im- ports decreased 41.4% and came to USD 1.7 billion. FOREIGN ECONOMIC ACTIVITY Foreign trade turnover of the Republic of Tatarstan 25 20 15 10 5 0 2007 2008 2009 Export,bln.dollars Import,bln.dollars 13,5 18,5 11,7 7,9 1,8 2,9 1,7 0,9 first half of the year of 2010 Main exported goods (% of the total export volume) Main imported goods (% of the total import volume) oil oilproducts engineering products synthetic rubber plasticand products fromit cyclic carbohydrate 66 14,8 6,6 5,4 1,7 0,9 64,6 15,2 6,2 5,6 3,3 0,3 65,4 13,4 6,1 7,1 3,3 0,3 0 10 20 30 40 50 60 70 2008 2009 january-june 2010 pipesfrom ferrous metals engineering products organic chemistry compound plasticand products fromit ferrous metals 77,8 3,5 1,6 1,6 0,3 75,1 4,5 1,9 1,4 0,1 68 4,4 3,9 2 0,4 0 10 20 30 40 50 60 70 80 90 2008 2009 january-june 2010 Exports accounted for 87.3% and imports accounted for 12.7% of the foreign trade turn- over. In the first half of 2010 the foreign trade turnover increased to 63.1% as compared to the same period of the year of 2009 and was estimated to be USD 8.8 bln. The export volume was increased to 72.9% in the comparison with the same period of 2009 and made USD 7.9 bln., among of them 87.5% - to the non-CIS countries (in 2009 – 79.2%). The import volume was increased to 8.8% and made 0.9 USD bln., among of them 85% - from the non-CIS countries (in 2009 – 80.4%). The republic’s foreign trade surplus in 2009 was USD 10 billion (in 2008: USD 15.6 billion). Mineral products account for 79.8%, chemi- 39The Republic of Tatarstan: guide to investment
  39. 39. Share of non-CIS countries in the foreign trade structure of the Republic of Tatarstan in 2009, % Share of non-CIS countries in the foreign trade structure of the Republic of Tatarstan in the first half of the year of 2010, % cal and petrochemical products account for 12.5%, and mechanical engineering products account for 6.2% of the export trade struc- ture. Please note that compared to the same period of 2008, the share of mineral products has decreased by 1.3%, while the shares of chemical and petrochemical products and me- chanical engineering products have increased by 1.3% and 0.4% respectively. In January-June of 2010 the mineral prod- ucts (79.5%), products of chemical industry (13.8%) and engineering products (6.1%) were predominated. GEOGRAPHIC STRUCTURE OF TATARSTAN’S FOREIGN TRADE Non-CIS countries have kept the leading position in the geographic structure of Tatar- stan’s foreign trade turnover in 2009 with a share of 84.8%, while CIS countries accounted for 15.2%. That said, the share of non-CIS countries in Tatarstan’s exports has decreased 1.9% as compared to 2008 to come to 85.2%, whereas the share in imports increased by 0.2% to reach 82.5%. The following non-CIS countries account for approximately half of the republic’s for- eign trade turnover volume: Italy (13.2%), Tur- key (11.9%), Poland (10.2%), the Netherlands (7.3%) and Germany (5.0%). In the first half of 2010 the non-CIS coun- tries held the leading position – their spe- cific weight in Tatarstan’s foreign trade made 87,2%; 12.8% were per the CIS countries. The following foreign countries account for more than half of the republic’s foreign trade turnover volume: Poland (16.1%), the Netherlands (10.9%), Turkey (10%), Germany (9.8%) and Italy (6.5%). Countries leading in terms of exports from the Republic of Tatarstan in 2009 were Italy (13.5% of the total export volume), Turkey (13.1%) and Poland (11.5%). Germany (28.4%), Italy (13.7%) and Be- larus (8.6%) were the republic’s biggest im- porters. Other countries Poland The Netherlands Turkey Germany Italy Hungary Latvia Belgium Croatia 26,3 16,1 10,9 10 9,8 6,5 3,8 3,7 2,9 2,1 2 1,7 1,6 11,9 1,8 2,6 2,3 2,0 2,0 31,1 2,8 2,9 5,0 13,2 2,3 7,3 10,2 2,6 Turkey USA Latvia France Czech Republic Romania Other countries Belgium Hungary Germany Italy China The Netherlands Poland Great Britain 40 The Republic of Tatarstan: guide to investment
  40. 40. External trade with the main partner countries in the first half of the year of 2010 (mln.US dollars) Kazakhstan Italy Poland Turkey TheNetherlands Germany USA Belarus China Latvia 0 400 800 1200 1600 èìïîðò ýêñïîðò REGIONAL ORGANIZATIONS INVOLVED IN THE SUPPORT AND DEVELOPMENT OF FOREIGN ECONOMIC ACTIVITY ORGANIZATION ADDRESS CONTACT INFORMATION Ministry of Industry and Trade of the Republic of Tatarstan 4 Ostrovsky Ul. Kazan, 420111 Tel.: +7(843) 299-10-07 / 299-11-09 Fax: +7(843) 292-16-45 E-mail: mtorg@kabmin.tatarstan.ru http://mpt.tatar.ru/ Department of External relations of the Office of the President of the Republic of Tatarstan 9 Kreml Kazan, 420014 Tel.: +7(843) 567-87-26 Fax: +7(843) 292-00-92 /292-08-10 E-mail: dfa@kremlin.kazan.ru Committee of External relations and tourism of the Executive Committee of Kazan city 3 Kremlevskaya Ul. Kazan, 420014 Tel.: +7(843) 299-16-43 Fax: +7(843) 299-17-48 The Cabinet of Ministers’ Agency for the development of interna- tional cooperation of the Republic of Tatarstan 35/2 Pravo-Bulach- naya Ul. Kazan, 420503 Tel.: +7(843) 292-79-02 Fax: +7(843) 292-87-76 E-mail: arms-kazan@mail.ru Chamber of commerce and indus- try of the Republic of Tatarstan 18 Pushkina Ul. Kazan, 420503 Tel.: +7(843) 264-62-07 Fax: +7(843) 236-09-66 E-mail: tpprt@tpprt.ru http://www.tpprt.ru Countries leading in terms of exports of goods of the Republic of Tatarstan in January- June of 2010 were Poland (17.8% of the total export volume), the Netherlands (12%), Turkey (10.7%) and Germany (8.1%). Germany (24.2% of the total import vol- ume), Italy (15.2%), USA (7.5%) and Belarus (6.2%) were the republic’s biggest importers. 41The Republic of Tatarstan: guide to investment

×