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Investment Guide to the Republic of Bashkortostan | Ufa 2020

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Investment Guide to the Republic of Bashkortostan | Ufa 2020 Investment Guide to the Republic of Bashkortostan Ufa. The updated version of the publication of 1 October 2020. Greetings from Radiy Khabirov, Head of the Republic of Bashkortostan 3 Address by Nail Gabbasov, General Director of the Development Corporation of the Republic of Bashkortostan 4 Foreword from the Managing Partner of Deloitte Ufa, Dmitriy Chaban 5 General information about the Republic of Bashkortostan 6 Key figures 8 Investment potential 14 Investor incentives 28 Development institution 30 Industrial parks, special economic zone, monocities, territories of priority social and economic development, technology parks and clusters in the Republic of Bashkortostan 35 State support for investors 44 Funds 52 Contacts 63 Investment Guide to the Republic of Bashkortostan Greetings from Radiy Khabirov, Head of the Republic of Bashkortostan Dear Friends, Bashkortostan has virtually all the essential investment framework you may require. We have the Alga special economic zone, Welcome to the Investment Guide to the Republic five territories of priority social and economic development of Bashkortostan! (TPSED), business support institutions and industrial parks. As you are reading this guide, the COVID-19 pandemic is upending We offer tax relief to anyone who decides to invest life as we know it. Lockdown and self-isolation measures have in Bashkortostan, subsidize engineering construction costs, had a significant impact on the social and economic development cover loan interest payments and the exchange rate differential of Russian regions. This challenge has united us against a common on acquisitions of imported equipment, offer land plots without threat and shown us that we can weather any storm if we work tenders and provide support through industry programs. together. The business world understands this best of all. We closely monitor the effectiveness of our business support mechanisms. Our vision for the new economy is one where solidarity, cooperation and openness prevail. Making the region more We are proud to invite you to build your business in Bashkortostan. attractive for investment is a critically important aspect of regional Let’s build a relationship, work and move forward together. policy. Best regards, Your business will have every opportunity to thrive in Bashkortostan. Our region has plentiful resources and a developed Radiy Khabirov manufacturing industry and agricultural sector. We have an easily Head of the Republic of Bashkortostan accessible transport infrastructure and convenient logistics. 3 Investment Guide to the Republic of Bashkortostan Address by Nail Gabbasov, General Director of the Development Corporation of the Republic of Bashkortostan Dear Friends and Partners, The Republic of Bashkortostan is today a strong, prosperous and dynamically developing region that is continuously working to improve its investment appeal and international reputation. Bashkortostan has created all the necessary infrastructure for attracting investment: we have set up five territories of priority social The government of the Republic of Bashkortostan has set its sights and economic development (TPSED). The Alga special economic zone on the successful realization of ambitious projects and is eager is developing at pace, and we have opened industrial parks, new to cooperate with investors from Russia and abroad. We have all technology parks and co-working spaces for startup entrepreneurs the resources we need to create new jobs, ensure the best living across Bashkortostan. and working conditions for our citizens and drive sustainable socio- economic development. We can assure you that your projects will benefit from the favorable and innovative environment that we have strived to build in The key objective of the Development Corporation of the Republic Bashkortostan. of Bashkortostan is to accelerate the implementation of projects, support investors and make investing in the region as simple as Welcome to Bashkortostan! possible. Our team of qualified specialists support investment projects across all stages of implementation, from the development of Yours sincerely, concepts to the commissioning of facilities. Nail Gabbasov General Director, Development Corporation of the Republic of Bashkortostan 4 Investment Guide to the Republic of Bashkortostan Foreword from the Managing Partner of Deloitte Ufa, Dmitriy Chaban Dear Reader, program for agricultural development and agricultural, commodity and food market regulation. However, despite the progress made We are pleased to present the seventh edition by the regional government, we still face serious challenges of the Bashkortostan Investment Guide, a collaboration between ahead due to the current global economic situation. The region's Deloitte CIS, the local Ministry of Economic Development economy will inevitably take a hit from the fall in oil prices and the and the regional Development Corporation. Here you can find decline in oil production and consumption, as well as the expected all the information you may need about investor incentives, overall downturn in economic activity. There also remains a high promising investment opportunities and the region’s most degree of uncertainty surrounding the potential implications developed industries. of COVID-19 for business and supply chains. Bashkortostan has ranked highly in investment attractiveness Deloitte CIS provides audit and assurance, consulting, financial ratings in recent years due to its sound budgetary performance advisory, risk advisory, tax and related services. Our specialists and the low public debt. The government is committed to are on hand to provide consulting services to investors at any stage developing the region’s transport network and energy grid, which of project implementation. includes three solar power plants that supply the wholesale market. This guide contains a brief overview of the most promising investment opportunities in Bashkortostan. We are confident The regional government has worked hard to create an open that it will help potential investors get a clear picture of the local investment environment, creating a one-stop-shop for business economy and encourage entrepreneurial activity in the region. and investment, founding the Alga special economic zone and opening the Factory of the Future special-purpose business Best regards, center. Investors can take advantage of tax incentives for priority investment projects, preferential lease terms and other benefits. Dmitriy Chaban A wide range of subsidies are also available under the government Managing Partner of Deloitte Ufa 5 Murmansk Investment Guide to the Republic of Bashkortostan Naryan-Mar Arkhangelsk Helsinki General Oslo St. Petersburg Tallinn Stockholm Perm Riga Copenhagen Moscow information Kazan Dublin Kaliningrad Minsk Samara about London Berlin Warsaw Voronezh Kiev Paris the Republic Vienna Bratislava Volgograd Chisinau Bern Rostov-on-Don Ljubljana Zagreb of Bashkortostan Bucharest Rome Sofia Madrid Ankara Lisbon Capital Population Time zone Official Ethnic Climate Ufa of the Republic GMT +5 (2 hours languages composition continental, Population: of Bashkortostan ahead of Moscow) Russian more than 100 with warm, humid 1.1 million 4.05 million and Bashkir ethnic groups; summers and Population ranking (highest in the the predominant moderate winters. among Russian Volga Federal ethnic groups are Average cities: 11th District) Russians (36.1%), temperature: Proportion of urban Bashkirs (29.5%) –16°С in January population: 62.45% and Tatars (25.4%). +19°С in July Population density: 28.3 people per sq. km 6 Investment Guide to the Republic of Bashkortostan Salekhard Arkhangelsk Surgut Perm Tyumen Ekaterinburg Perm Territory Sverdlovsk Region Moscow Chelyabinsk Udmurt Kazan Republic Ufa eftekamsk Voronezh araidel Volgograd emeamak Rostov-on-Don Republic of Tatarstan urtuli aloa fa uma he Republic of Bashkortostan Beloretsk Bihbulak terlitamak alavat Total area 143,000 square kilometers (0.8 % eleu helyabinsk Region of the total area iba of Russia) umertau Bamak Orenburg Region ilair kar 7 Investment Guide to the Republic of Bashkortostan Key figures Rankings The region has a multi-industry, highly diversified economy, Robust budgetary performance, low leverage and stable liquidity with a focus on manufacturing, construction, transportation were the key underlying factors for this rating. The region’s and agriculture. The core industries are oil refining, chemicals strong investment attractiveness was the main reason for and petrochemicals, as well as oil production. its high placement in the rating. The National Rating Agency rated Bashkortostan as IC3 Since 2015, Bashkortostan has been implementing a best practices (high investment attractiveness) in its 2019 ranking of investment program as part of the National Regional Investment Climate Rating attractiveness of Russian regions.* run by Russia’s Agency for Strategic Initiatives. In 2019, Fitch Ratings affirmed Bashkortostan’s long-term credit The program aims to improve the investment climate rating at BBB with a stable outlook.** This investment grade reflects in Bashkortostan and is the driving force behind the region’s rapid Bashkortostan’s ability to fulfill its financial obligations on time ascent up the National Investment Climate Rating. and confirms its sound budgetary performance, which it achieved by diversifying its economy. The Republic of Bashkortostan guarantees that the rights of all investors will be protected (irrespective of how they choose The Republic's
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