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Investment Guide to the Republic of Bashkortostan | Ufa 2019

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Investment Guide to the Republic of Bashkortostan | Ufa 2019 MINISTRY OF ECONOMIC DEVELOPMENT OF THE REPUBLIC OF BASHKORTOSTAN Investment Guide to the Republic of Bashkortostan Ufa 2019 Greetings from Radiy Khabirov, Acting Head of the Republic of Bashkortostan 3 Address by Rail Sarbaev, General Director of the Development Corporation of the Republic of Bashkortostan 4 Foreword from the Managing Partner of Deloitte Ufa, Dmitry Chaban 5 General information about the Republic of Bashkortostan 6 Key figures 8 Investment potential 14 Investor incentives 28 Development institution 29 Technology parks, industrial parks, clusters and territories of priority social and economic development (TPSED) in the Republic of Bashkortostan 32 State support for investors 40 Funds 47 Contacts 58 Investment Guide to the Republic of Bashkortostan Greetings from Radiy Khabirov, Acting Head of the Republic of Bashkortostan Dear Friends, I hold meetings with investors on a weekly basis to discuss the views of the business community. The decisions made at Welcome to the Investment Guide to the Republic of Investment Hour meetings help bring project completion dates Bashkortostan! forward and open up new inclusive opportunities. Bashkortostan has garnered a reputation as an outstanding We have developed customized approaches for all investors and Russian region for many reasons. The republic possesses advanced guarantee the most straightforward business conditions for our manufacturing and industry, flourishing agriculture, and a robust partners. social welfare system. Bashkortostan’s capital, Ufa, is a million-plus city and one of Russia’s business and events hubs. Welcome to our republic! So what can Bashkortostan offer investors? Firstly, there are Best regards, vast opportunities for business growth. A wide range of options Radiy Khabirov is available for ambitious and dynamic people who are ready to Acting Head of the Republic of Bashkortostan implement their ideas and invest resources in our republic. Once a branch of the Great Silk Road, Bashkortostan is now at the crossroads of vital transportation corridors, connecting the republic with the rest of the world. This is why the region was chosen as the venue for the Shanghai Cooperation Organization and BRICS summits in 2015, and hosts the annual Small Business Forum of the SCO and BRICS regions Bashkortostan has launched several high-tech social and economic sustainable development zones that benefit from streamlined administrative regulations, as well as establishing several industrial parks. On top of this, an extensive array of federal programs is in place to encourage investment activity. 3 Investment Guide to the Republic of Bashkortostan Address by Rail Sarbaev, General Director of the Development Corporation of the Republic of Bashkortostan Dear friends and partners, Our region welcomes large-scale projects and ongoing cooperation with Russian and foreign investors. Bashkortostan presents a wealth of compelling and rewarding We are ready to engage in the most ambitious construction, investment opportunities. agricultural, healthcare, energy, utility, engineering, technology and energy-efficiency projects. The Development Corporation of the Republic of Bashkortostan is a government investment vehicle that has won recognition as a Bashkortostan’s government is intensively building infrastructure helpful and impactful platform, connecting the government and to support regional investment. The republic has five territories of businesses. priority social and economic development (TPSED), 11 industrial parks, new technology parks and co-working facilities for startups, We believe that our mission is to deliver end-to-end support for and a planned special economic zone in Ishimbaysky District. The investment projects from concept development to commissioning, region has introduced lower tax rates for businesses and amended and we strive to do everything in our power to make the work of its laws and regulations to streamline cooperation with investors. investors in the region as seamless and efficient as possible. This was achieved through tremendous efforts aimed at improving the business and investment climate in the region and aligning the Welcome to Bashkortostan! work of all of its development institutions. Kind regards, The Republic of Bashkortostan offers unique opportunities. On the Rail Sarbaev one hand, it is one of Russia’s most developed regions in terms of General Director its socio-economic and technological background. On the other Development Corporation of the Republic of Bashkortostan hand, it is a beautiful place with unique natural wonders. With its privileged location between Europe and Asia, robust transport network, abundant natural resources and unspoiled nature, 4 Investment Guide to the Republic of Bashkortostan Foreword from the Managing Partner of Deloitte Ufa, Dmitry Chaban Dear colleagues, Deloitte supports the regional government’s various initiatives to improve the investment climate and promote international We are pleased to present the sixth edition of the Investment cooperation. Deloitte provides audit, consulting, financial advisory, Guide to the Republic of Bashkortostan, a collaboration between risk management, and tax and legal professional services. Our Deloitte CIS, the local Ministry of Economic Development and the team is ready to offer advisory support to potential investors at any regional Development Corporation. This guide will inform you stage of the project. about the development priorities of various regional industries and the government support options available for investors. This edition provides a summary of the most promising areas for investment and we are confident that it will be an indispensable Bashkortostan’s attractiveness among investors has been rising, guide for potential investors. with regional fixed investment growth above the Russian average. Creating favorable conditions for doing business in Bashkortostan Best regards, is a key aspect of the region’s economic policy. The government Dmitry Chaban aims to establish an effective support structure for entrepreneurs, Managing Partner, Deloitte Ufa launching three business incubators for investors, and expanding state support measures for businesses. Investors can take advantage of preferential land leases or lease state-owned plots without needing to undergo the tender process for regional priority investment projects. Subsidies are also provided as part of the state program for the development and support of small- and medium-sized businesses. 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 2 hours ahead languages: composition: continental, Population: of Bashkortostan: of Moscow Russian more than 100 with warm, humid 1.1 million 4.05 million people and Bashkir ethnic groups; summers and Rank among Proportion of urban the predominant moderate winters. Russia’s cities population: 62.2 ethnic groups are Average with a population percent Russians (36.1 temperature: of over 1 million Population density: percent), Bashkirs –16°С in January people cities: 11th 28.3 people (29.5 percent), +20°С in July per sq. km and Tatars (25.4 percent). 6 Investment Guide to the Republic of Bashkortostan Salekhard Arkhangelsk Surgut Perm Tyumen Ekaterinburg em Teito vedovs eion Moscow Chelyabinsk dmut Kazan eui Ufa eftekamsk Voronezh araidel Volgograd emeamak Rostov-on-Don eui of Ttstn urtuli aloa fa uma he Republic of Bashkortostan Beloretsk Bihbulak terlitamak alavat Total area: 143,000 square kilometers (0.8 eleu heins eion percent of the total iba area of Russia) umertau Bamak enu eion ilair kar 7 Investment Guide to the Republic of Bashkortostan Key figures Rankings The region has a multi-industry, highly diversified economy with Since 2015, the Republic of Bashkortostan has been implementing a focus on manufacturing, construction, transportation and a best practices program as part of the National Regional agriculture. The core industries are oil refining, chemicals and Investment Climate Rating run by the Agency for Strategic petrochemicals, as well as oil production. Initiatives. It aims to improve the investment climate in Bashkortostan and supports the region’s rapid ascent up the Bashkortostan moved up two places in Expert-RA’s 2017 National Investment Climate Rating. investment attractiveness ranking, joining the tier of Russian regions with average potential and minimal risk (2A). * The ranking The Republic of Bashkortostan guarantees that the rights of all placed the republic 11th among all Russian regions. ** investors will be protected and that the discussion of investment projects will be open and transparent. In 2018, Fitch Ratings assigned a long-term credit rating to the Republic of Bashkortostan of BBB- with a positive outlook. *** This investment grade denotes the republic’s ability to service its financial obligations on time and reflects the strong budgetary performance achieved through a diversified economy. The republic's creditworthiness is strengthened by its low debt burden, balanced liquidity policy and a conservative approach to spending. Today, the Republic of Bashkortostan has the same credit
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