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<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

ТАТА РС ТА Н<br />

<strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong>:<br />

General Overview,<br />

State System,<br />

Economy


<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>:<br />

General Overview,<br />

State System, Economy<br />

Kazan<br />

2010


under the editorship <strong>of</strong> Ravil Zaripov,<br />

Minister <strong>of</strong> Industry and Trade <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

editorial board:<br />

Vladimir Solovyev, Gulnara Akhmadeyeva, Farid Tuktarov,<br />

Artur Fatykhov, Oleg Vlasov<br />

This publication was prepared with participation <strong>of</strong>:<br />

Rustem Akhmetgarayev, Denis Klimin, Sergei Mezentsev,<br />

Engil Ismagilov, Timur Mindubaev<br />

© ministry <strong>of</strong> industry and Trade <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>, compilation, 2010<br />

4, Ostrovsky St., Kazan 420111<br />

Phone: +7 (843) 299 10 07<br />

Fax: +7 (843) 292 16 45<br />

e-mail: mpt@tatar.ru<br />

http://mpt.tatar.ru<br />

© publishing house “foliant”, design and layout, 2010<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

1. BASIC FACTS ABOUT THE REPUBLIC OF TATARSTAN<br />

1.1. STATE SYMBOLS<br />

national flag<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

national emblem<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

national anthem<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

(Music by composer Rustem Yakhin)<br />

1.2. STATE SYSTEM<br />

1.2.1. LEAdErShip<br />

Of ThE rEpuBLic Of TATArSTAn<br />

PRESIDENT OF THE REPUBLIC OF TATARSTAN<br />

President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is the supreme <strong>of</strong>ficial <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>.<br />

First President <strong>of</strong> <strong>Tatarstan</strong><br />

Mintimer Shaimiev<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

President <strong>of</strong> <strong>Tatarstan</strong><br />

Rustam Minnikhanov<br />

President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> acts as a guarantor <strong>of</strong> protection<br />

<strong>of</strong> rights and freedoms <strong>of</strong> person and citizen in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>,<br />

observance <strong>of</strong> the Constitution and laws <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, international<br />

agreements <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, the Treaty between the<br />

Russian Federation and the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> “On Delimitation <strong>of</strong> Jurisdictional<br />

Subjects and Powers between Bodies <strong>of</strong> Public Authority <strong>of</strong> the<br />

Russian Federation and Bodies <strong>of</strong> Public Authority <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>”,<br />

and agreements between the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and constituent<br />

entities <strong>of</strong> the Russian Federation.<br />

Since March 25, 2010 the President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is Rustam<br />

Nurgalievich Minnikhanov.<br />

1.2.2. cABinET Of MiniSTErS<br />

Of ThE rEpuBLic Of TATArSTAn<br />

The Cabinet <strong>of</strong> Ministers <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> (the Government <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>) is an executive and<br />

administrative body <strong>of</strong> the Government<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

The Cabinet <strong>of</strong> Ministers is formed by<br />

the President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

and is accountable to him.<br />

The nominee for Prime Minister is approved<br />

by the State Council (Parliament)<br />

<strong>of</strong> <strong>Tatarstan</strong> at the suggestion by the<br />

President.<br />

Since April 22, 2010 the Prime Minister<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is Ildar<br />

Shafkatovich Khalikov.<br />

1


1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

1.3. GEOGrAphY<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is situated in the European part <strong>of</strong> the Russian<br />

Federation at the confluence <strong>of</strong> the Volga and the Kama rivers. The<br />

territory <strong>of</strong> the republic stretches some 460 kilometres west to east and<br />

290 kilometres north to south. The total area <strong>of</strong> the republic is 67,836.2<br />

square kilometres, which is approximately equal to the area <strong>of</strong> Sri Lanka or<br />

that <strong>of</strong> Belgium and the Netherlands taken together. <strong>Tatarstan</strong> borders on<br />

eight regions <strong>of</strong> the Russian Federation: the <strong>Republic</strong> <strong>of</strong> Bashkortostan, the<br />

Udmurt <strong>Republic</strong>, the <strong>Republic</strong> <strong>of</strong> Mari El, the Chuvash <strong>Republic</strong>, the Kirov,<br />

Orenburg, Ulyanovsk, and Samara regions.<br />

RUSSIAN FEDERATION<br />

THE REPUBLIC OF TATARSTAN<br />

2<br />

1.4. cLiMATE<br />

The climate <strong>of</strong> <strong>Tatarstan</strong> is mild continental with long, warm and sometimes<br />

hot and droughty summer and moderately cold winter.<br />

Snowy period is almost 5 months (from mid-November to early April).<br />

The average temperature in January is -14°C, and in July the average temperature<br />

is +19°C. The range <strong>of</strong> monthly average temperatures is 32°C to<br />

34°C, and the range <strong>of</strong> absolute temperatures is 86°C. Annual precipitation<br />

ranges from 430 millimetres to 500 millimetres.<br />

1.5. nATurAL rESOurcES<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is rich in mineral resources, with crude oil representing<br />

its main source <strong>of</strong> wealth. The first commercial oil deposit was<br />

discovered as early as in 1943.<br />

The main oil reserves, some 0.8 billion tonnes, are concentrated in medium-size<br />

and small deposits. Along with crude oil, petroleum gas is also produced.<br />

Other mineral resources extracted<br />

in the republic's territory are gypsum<br />

(total reserves are 72 million tonnes), oil<br />

bitumen (explored reserves are 7 billion<br />

tonnes), peat (800 peat deposits with<br />

a total area <strong>of</strong> over 35,000 hectares),<br />

construction stone (56.7 million cubic<br />

metres), brick clay (158.3 million cubic<br />

metres), limestone and dolomite (92<br />

million tonnes). Production <strong>of</strong> black<br />

coal is complicated due to its deep occurrence.<br />

Exploitation <strong>of</strong> combustible<br />

shale deposits in south-west <strong>Tatarstan</strong><br />

is also promising.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> has large<br />

water resources, which are characterised<br />

by a branched river system with<br />

such large rivers as the Volga, Kama,<br />

their tributaries, such as Vyatka, Belaya,<br />

Sviyaga, and others. Total water surface<br />

area is 4,400 square kilometres, or 6.4% <strong>of</strong> the territory <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong>. There are four reservoirs in the republic, Kuybyshevskoye, Nizhnekamskoye,<br />

Zainskoye, and Karabashskoye. The Europe’s largest storage<br />

basin, Kuybyshevskoye Reservoir, with the volume <strong>of</strong> 57.3 cubic kilometres,<br />

is located for the most part in the territory <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. Its<br />

widest span in the mouth <strong>of</strong> the Kama is nearly 30 kilometres. A total <strong>of</strong><br />

4,098 water streams flow across <strong>Tatarstan</strong> with a total length <strong>of</strong> 19,632.5<br />

kilometres. The republic is fully provided with potential ground water resources<br />

totalling 5.46 million cubic metres per day.<br />

The available land <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is 6,783,700 hectares.<br />

The major part, some 68%, are agricultural lands (4,630,100 hectares); forest<br />

lands constitute 18% (1,217,700 hectares); water resource lands, 6.5%<br />

(436.1 hectares); lands <strong>of</strong> inhabited localities, 5.7% (386,700 hectares);<br />

lands <strong>of</strong> specially protected areas, 0.5% (31,600 hectares); and industry<br />

lands, 0.1% (79,000).<br />

1.6. pOpuLATiOn<br />

The population <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> numbers 3,772,900 and comprises<br />

representatives <strong>of</strong> 115 ethnic groups; these include Tatars (52.9%),<br />

Russians (39.5%), Chuvashes (3.4%), Ukrainians, Udmurts, Mari, Bashkirs,<br />

Jews, and others. Russian population prevails in large cities and adjacent<br />

regions, while Tatar population dominates in rural areas.<br />

1.7. rELiGiOn<br />

Over thousand religious societies have been registered in the territory <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. The most widely-spread religions are Islam and<br />

Orthodox Christianity.<br />

The Sunni Islam was adopted as <strong>of</strong>ficial religion in the Volga Boulgaria as<br />

early as in 922. At present, it is pr<strong>of</strong>essed by a majority <strong>of</strong> Tatars and Bashkirs.<br />

The supreme body <strong>of</strong> Muslims is the Religious Muslim Board <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

The Orthodox Christianity appeared<br />

in the mid-16th century<br />

after the annexation <strong>of</strong> the Kazan<br />

Khanate by the Russian State. The<br />

followers <strong>of</strong> this religion supported<br />

1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

in the territory <strong>of</strong> the republic by the Kazan Eparchy <strong>of</strong> the Russian Orthodox<br />

Church are Russians, Chuvashes, Mari, Mordvinians, Udmurts, and a<br />

part <strong>of</strong> Tatars (kryasheny). There are small communities <strong>of</strong> other Christian<br />

confessions: Old Believers, Catholics, Lutherans, Baptists, Seventh–Day<br />

Adventists, as well as small communities <strong>of</strong> other confessions, such as<br />

Krishnaists and Bahá'í Faith.<br />

1.8. STATE LAnGuAGES<br />

According to the Constitution <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, the Tatar and<br />

the Russian languages are recognised as equal in rights throughout the territory<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

The Tatar language belongs to the Turkic group <strong>of</strong> the Altai family <strong>of</strong> languages<br />

alongside with Kazakh, Uzbek, Turkish, etc.<br />

The Russian language, together with Ukrainian and Byelorussian, constitutes<br />

Eastern-Slavic subgroup <strong>of</strong> Slavic group <strong>of</strong> the Indo-European family<br />

<strong>of</strong> languages.<br />

1.9. hiSTOrY<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> boasts a rich history. The first state in the region<br />

was the Volga Boulgaria<br />

created by Turkic<br />

tribes, whose ancestors<br />

have already had a statehood<br />

experience within<br />

the frames <strong>of</strong> the Turkic<br />

Kaghanate and Hunnish<br />

Power, as early as in the<br />

8th–9th centuries. In<br />

922, it adopted Islam as<br />

<strong>of</strong>ficial religion, which<br />

meant its international<br />

recognition and falling<br />

under the influence <strong>of</strong><br />

the Arab Caliphate. Boulgaria was the most politically and economically<br />

developed state in the region and played an important role in life <strong>of</strong> peoples<br />

that inhabited the region. The country pioneered in smelting cast-iron<br />

in Europe.<br />

In addition to metallurgy, quite developed were the art <strong>of</strong> jewellery,<br />

tanning industry, culture, science, and education. Unity <strong>of</strong> the country,<br />

its regular armed forces and well-organised reconnaissance allowed it to<br />

withstand the Mongolian aggressors. Only with the fourth attempt in 1236,<br />

their superior forces succeeded in breaking down the resistance <strong>of</strong> the<br />

Boulgars, but even after that the Mongols had to maintain a huge garrison<br />

to keep the rebellious land pacified.<br />

Boulgaria became an ulus <strong>of</strong> the Golden Horde, with the local dynasty<br />

remaining in power, in the same way as in Russian principalities. However,<br />

centrifugal tendencies began to appear, and the country broke into semidependent<br />

emirates, with Kazan among them, and actually got out <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

3


1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

Horde. The exit was formalised in 1438 with the formation <strong>of</strong> the Kazan<br />

Khanate.<br />

Relations between the Kazan Khanate and Moscow were rather uneasy.<br />

Continued wars, robber raids and interference <strong>of</strong> the neighbouring Russia<br />

weakened the country. Having gained strength, the Russian State became<br />

able to capture Kazan in 1552, though it took tens <strong>of</strong> years to break down<br />

the people's resistance.<br />

Kazan became one <strong>of</strong> the major cities <strong>of</strong> Russia and the centre <strong>of</strong> a<br />

huge province in 1708. After the October Revolution, in accordance with a<br />

new state national policy, the Tatar Autonomous Soviet Socialist <strong>Republic</strong><br />

(TASSR) was established in 1920.<br />

Virtually since 1922, the Tatar elite had been making efforts to achieve<br />

the status <strong>of</strong> a union republic for <strong>Tatarstan</strong>. In this or that form, the issue<br />

was discussed before the adoption <strong>of</strong> 1937 Constitution, in the years <strong>of</strong><br />

“Khrushchev Thaw”, while in the process <strong>of</strong> elaborating the 1977 Constitution<br />

the proposals had even been prepared to upgrade <strong>Tatarstan</strong> to a union<br />

republic.<br />

The complicated interior situation in the Soviet Union and the processes<br />

<strong>of</strong> change has a direct impact on the status <strong>of</strong> the republic: on 30 August<br />

1990, the Declaration <strong>of</strong> State Sovereignty <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

was adopted. On 12 June 1991, the first President <strong>of</strong> <strong>Tatarstan</strong>, Mintimer<br />

Shaimiev, was elected. On 6 November 1992, the Constitution <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> was adopted following the Referendum where 61.4 percent<br />

<strong>of</strong> citizens supported the idea <strong>of</strong> sovereignty. This resulted in a key<br />

provision <strong>of</strong> the state administrative status <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> as<br />

a sovereign state associated with the Russian Federation on the basis <strong>of</strong><br />

the Treaty on Delimitation <strong>of</strong> Jurisdictional Subjects and Powers between<br />

Bodies <strong>of</strong> Public Authority <strong>of</strong> the Russian Federation and Bodies <strong>of</strong> Public<br />

Authority <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> signed on February 15, 1994 in Moscow.<br />

The Treaty became an important landmark on the path to building a<br />

new democratic federation.<br />

The new Treaty on Delimitation <strong>of</strong> Jurisdictional Subjects and Powers between<br />

Bodies <strong>of</strong> Public Authority <strong>of</strong> the Russian Federation and Bodies <strong>of</strong><br />

Public Authority <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> was signed on June 26, 2007.<br />

4<br />

HOLIDAyS IN THE REPUBLIC OF TATARSTAN<br />

New Year's Holiday January 1, 2, 3, 4, and 5<br />

Christmas January 7<br />

Defender <strong>of</strong> the Motherland Day February 23<br />

International Women's Day March 8<br />

Spring and Labour Holiday May 1<br />

Victory Day May 9<br />

Day <strong>of</strong> Russia June 12<br />

<strong>Tatarstan</strong> Foundation Day August 30<br />

People’s Unity Day November 4<br />

<strong>Tatarstan</strong> Constitution Day November 6<br />

Kurban Bairam<br />

Sabantui (finishing the spring agricultural<br />

field works)<br />

1.10. cApiTAL<br />

The date is determined according<br />

to lunar calendar and is established<br />

annually by Decree <strong>of</strong> the President<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> three<br />

months prior to its commencement<br />

The date is established annually<br />

by Decree <strong>of</strong> the President <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

The capital <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, the city <strong>of</strong> Kazan, is situated on<br />

the left bank <strong>of</strong> the Volga River in the estuary <strong>of</strong> the Kazanka River and<br />

has the largest population and economic potential among the cities <strong>of</strong> the<br />

republic.<br />

The area <strong>of</strong> Kazan is 425.3 square kilometres, and its population is 1.11<br />

million. Young people at the age <strong>of</strong> up to 30 constitute 40.7 per cent <strong>of</strong> the<br />

city population. Citizens <strong>of</strong> Kazan represent over 100 ethnic groups. Kazan<br />

is home to 22 national-cultural societies.<br />

Administratively, Kazan is divided into 7 districts.<br />

Kazan is a city with rich history. Recent archaeological findings show that<br />

its age is about one thousand years. Once a Boulgar frontier fortress, Kazan<br />

in the Golden Horde period became the capital <strong>of</strong> an actually independent<br />

emirate (principality) and <strong>of</strong> the<br />

Kazan Khanate in 1438. As a result<br />

<strong>of</strong> seizure <strong>of</strong> the city by troops <strong>of</strong><br />

Ivan the Terrible in 1552, it was virtually<br />

razed to the ground. In 1708,<br />

Kazan became a province centre.<br />

Since 1920, Kazan was the capital<br />

<strong>of</strong> the Tatar Autonomous Soviet<br />

Socialist <strong>Republic</strong>, and since 1992,<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

Kazan is the centre <strong>of</strong> culture<br />

and education in <strong>Tatarstan</strong>. It has<br />

30 higher educational institutions,<br />

including the world-known<br />

Ulyanov-Lenin Kazan State University.<br />

Development <strong>of</strong> science<br />

is also supported by the Academy<br />

<strong>of</strong> Sciences <strong>of</strong> <strong>Tatarstan</strong>, the Kazan<br />

Scientific Centre <strong>of</strong> the Russian<br />

Academy <strong>of</strong> Sciences, the National<br />

Library <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

(2.8 million books), and the<br />

Scientific Library <strong>of</strong> Kazan University<br />

(4.8 million books). In Kazan,<br />

there are the Russia's second largest<br />

Concert Hall, 7 pr<strong>of</strong>essional<br />

theatres, 4 state orchestras, the<br />

Ensemble <strong>of</strong> Singing and Dancing<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>,<br />

1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

13 museums, 5 exhibition halls and galleries, 7 Creative Unions, 7 higher<br />

and secondary institutions for culture and arts, and over 50 schools <strong>of</strong> art<br />

and music. This list can be extended with 3 recreation centres, 300 libraries<br />

<strong>of</strong> different systems and departments, 7 cinema theatres, over 50 creative<br />

troupes, the circus, different cultural societies, funds, associations, etc.<br />

Kazan is the city where the republic's large enterprises are located. The<br />

products <strong>of</strong> OAO Kazanorgsintez, OAO Kazan Motor-Building Production<br />

Association, OAO Kazan Helicopter Plant, OAO Gorbunov Kazan Aircraft<br />

Association, OAO Kazankompressormash, and OAO Kazan Medical Instruments<br />

Plant are well-known and in demand far outside <strong>of</strong> the republic.<br />

On August 30, 2005 an outstanding event took place in the life <strong>of</strong> the<br />

capital <strong>of</strong> <strong>Tatarstan</strong>: Kazan celebrated its millennium anniversary. Within<br />

these celebrations, Kazan hosted the World Congress <strong>of</strong> Tatars, the Summit<br />

<strong>of</strong> Heads <strong>of</strong> the CIS Countries, a meeting <strong>of</strong> the State Council <strong>of</strong> the<br />

Russian Federation. In the pre-anniversary period and during the event<br />

the republic was visited by more than 80 delegations <strong>of</strong> foreign states and<br />

Russian regions. At the same time, some 30 delegations from <strong>Tatarstan</strong> visited<br />

the CIS and non-CIS countries to exchange experience on vital issues<br />

related to economic development. Large scale presentations <strong>of</strong> the economic<br />

and investment potential <strong>of</strong> <strong>Tatarstan</strong> were held in China, Belgium,<br />

France, Singapore, Vietnam, India, Czech <strong>Republic</strong>, Kazakhstan, as well as<br />

in the Ministry <strong>of</strong> Foreign Affairs and the Federation Council <strong>of</strong> the Russian<br />

Federation, in the <strong>Republic</strong> <strong>of</strong> Karelia, Karachayevo-Cherkess <strong>Republic</strong> and<br />

in Yaroslavl. Enterprises <strong>of</strong> the republic took part in 55 international and interregional<br />

exhibitions. The celebration programme comprised the opening<br />

ceremonies for five stations within first line <strong>of</strong> the Kazan underground,<br />

reconstructed Kul-Sharif Mosque and restored Annunciation Cathedral,<br />

business terminal <strong>of</strong> the Kazan International Airport, Tatar State Humanitarian<br />

Pedagogical University, Hermitage Centre in Kazan Kremlin, etc. The<br />

city completed the restoration <strong>of</strong> the Opera and Ballet Theatre and the City<br />

Hall and the construction <strong>of</strong> a bridge across the Kazanka, which connects<br />

two parts <strong>of</strong> the city.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

5


1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

1.11. MAJOr ciTiES<br />

<strong>Tatarstan</strong> is a highly urbanised region with 74 percent <strong>of</strong> the population<br />

living in urban areas. The <strong>Republic</strong> is divided into 43 districts, 21 cities (<strong>of</strong><br />

which 14 are subordinate to the republic), 21 urban settlements, and 910<br />

village councils. The major cities are Kazan, Naberezhnye Chelny, Nizhnekamsk,<br />

Almetyevsk, and Zelenodolsk.<br />

Naberezhnye Chelny is located in northeast <strong>Tatarstan</strong> on the bank <strong>of</strong> the<br />

Kama River. The city is mono-industrial, nearly its entire population being<br />

somehow associated with the city-forming company, Kamsky Motor Works<br />

(OAO KamAZ), manufacturer <strong>of</strong> heavy-duty trucks and their components.<br />

The Nizhnekamsk Hydroelectric Power Station supplies electric power to<br />

the city and the whole economic region.<br />

The services <strong>of</strong> Begishevo International Airport cover the north-east <strong>of</strong><br />

the republic.<br />

Nizhnekamsk originated during the construction <strong>of</strong> the petrochemical<br />

plant in 1961. The city is one <strong>of</strong> the largest centres <strong>of</strong> petrochemical industry<br />

in Russia. Major manufacturers are OAO Nizhnekamskneftekhim,<br />

OAO Nizhnekamskshina, and Elastik Plant.<br />

Almetyevsk is the largest centre <strong>of</strong> crude oil production in <strong>Tatarstan</strong>.<br />

Here starts Druzhba oil pipeline, through which <strong>Tatarstan</strong> exports its crude<br />

oil. The largest company in the region is OAO Tatneft (production <strong>of</strong> crude<br />

oil and petroleum gas). The Almetyevsk Petroleum Institute plays an important<br />

role in training personnel for the main industry <strong>of</strong> the republic.<br />

Zelenodolsk is an important transport junction in the west <strong>of</strong> the republic.<br />

The products <strong>of</strong> the Shipbuilding Plant and Sergo Plant located in the<br />

city are in demand far outside <strong>of</strong> <strong>Tatarstan</strong>.<br />

1.12. cuLTurE<br />

Due to historical and geographical factors, <strong>Tatarstan</strong> is located on the<br />

junction <strong>of</strong> two large civilisations, the Orient and the Occident, and this to<br />

a large extent accounts for its diversity and cultural wealth.<br />

The Tatars keep centuries-old traditions <strong>of</strong> their ancestors, the Boulgars,<br />

who managed to achieve high level <strong>of</strong> cultural development, having<br />

combined their Turkic roots with Arabic influence due to adoption<br />

<strong>of</strong> Islam in the 10th century. It became the basis for further development<br />

<strong>of</strong> the Tatar culture at large. Specific place in life <strong>of</strong> the Boulgars and the<br />

modern Tatars is given to literature. Traditions established by poet Koul<br />

Gali in the 13th century were maintained by Mahmud Gali, Saif Sarai, and<br />

Muhamedyar. Among the outstanding personalities <strong>of</strong> the Tatar culture<br />

in the 19th and 20th centuries, one cannot but mention Gabdullah Tukay,<br />

Kayum Nasyri, Shigabutdin Marjani, Galiaskar Kamal, Fatikh Amirkhan,<br />

Rudolf Nuriev, Baki Urmanche, Galimjan Ibragimov, Gayaz Iskhaki, and<br />

Musa Jalil.<br />

There are 7 historical complexes in the territory <strong>of</strong> the republic: Bulgar,<br />

Bilyar, city complexes <strong>of</strong> Kazan, Yelabuga, Chistopol, Sviyazhsk, and the<br />

Raifa Monastery. Of the greatest interest for visitors to <strong>Tatarstan</strong> is the capital<br />

<strong>of</strong> the republic, Kazan, a city with a millennial history. All architectural<br />

buildings <strong>of</strong> this city date back to the second half <strong>of</strong> the 16th century up<br />

6<br />

to the 20th century. More ancient history can be judged from archaeological<br />

excavations. The main sightseeing attraction in Kazan is the Kremlin,<br />

the current residence <strong>of</strong> the <strong>Tatarstan</strong> President. It boasts a harmonious<br />

combination <strong>of</strong> the Annunciation Cathedral, the Syuyumbike Tower (the<br />

architectural emblem <strong>of</strong> the city) and the Kul-Sharif Mosque (the reconstructed<br />

relic <strong>of</strong> the Tatar people). Other places <strong>of</strong> interest in Kazan include<br />

the main building <strong>of</strong> the Kazan State University (1825), the Azimov Mosque<br />

(mid-19th century), the St. Peter's and Paul's Cathedral (1723-26), and the<br />

Marjani Mosque (1766).<br />

THEATRES<br />

At present, there are 12 pr<strong>of</strong>essional theatres in <strong>Tatarstan</strong>, 7 <strong>of</strong> them in<br />

Kazan. Most popular in and outside <strong>of</strong> the republic is the Musa Jalil Tatar<br />

State Opera and Ballet Theatre functioning since 1939. It hosts annual international<br />

opera festivals named after Fyodor Chaliapin and classic ballet<br />

festivals named after Rudolf Nuriev with participation <strong>of</strong> well-known personalities<br />

<strong>of</strong> the world stage. Its traditional tours in European countries<br />

have brought international fame and popularity to the theatre's troupe.<br />

The Galiaskar Kamal Tatar State Academic Theatre is known by staging<br />

the works <strong>of</strong> Tatar dramatic art classics, such as Naki Isanbet, Galiaskar<br />

Kamal, Farid Yarullin, Tufan Minnullin, etc. Its tours to Moscow and countries<br />

with large Tatar communities have also become a tradition.<br />

The Vasily Kachalov Kazan Academic Russian Great Drama Theatre is a<br />

constant participant <strong>of</strong> international drama festivals and enjoys wide popularity<br />

among Kazan residents and visitors.<br />

MUSEUMS<br />

There are 100 state-run and over 300 departmental museums in <strong>Tatarstan</strong>,<br />

which help learn the history and culture <strong>of</strong> this land.<br />

The National Museum <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> was founded in 1894.<br />

Its exposition was based on the materials <strong>of</strong> 1890 Scientific and Industrial<br />

Exhibition and the collection <strong>of</strong> historian Andrei Likhachev. The museum<br />

provides information about the nature <strong>of</strong> the land and its history from ancient<br />

times.<br />

The Fine Arts Museum founded in 1959 on the basis <strong>of</strong> the State Museum<br />

Picture Gallery displays over 21,000 pieces <strong>of</strong> painting, graphics, sculpture,<br />

and applied art. Among them are the works <strong>of</strong> Rembrandt, Dürer, Bryullov,<br />

Aivazovsky, Perov, Kramskoy, Savrasov, Shishkin, Kuindzhi, Levitan, Repin,<br />

Vereshchagin, Serov, Roerich, Fechin, Urmanche, and many others.<br />

The Museum <strong>of</strong> Geology under Kazan State University displays a rich collection<br />

<strong>of</strong> meteorites, minerals, and crystalline soils <strong>of</strong> the Urals and Siberia.<br />

The Museum <strong>of</strong> Ethnography under Kazan State University provides information<br />

about life <strong>of</strong> peoples in different corners <strong>of</strong> the world. It also contains<br />

materials collected by Ivan Simonov during the Antarctic expedition<br />

<strong>of</strong> Bellinshauzen and Lazarev.<br />

Also <strong>of</strong> interest for visitors to <strong>Tatarstan</strong> can be memorial flats <strong>of</strong> Musa<br />

Jalil and Nazib Zhiganov, museums <strong>of</strong> Yevgeny Baratynsky, Maxim Gorky,<br />

Baki Urmanche, Salikh Saidashev in Kazan, Jaroslav Hašek in Bugulma, Ivan<br />

Shishkin, Marina Tsvetayeva and cavalry maiden Natalya Durova in Yelabuga.<br />

1.13. EducATiOn And SciEncE<br />

<strong>Tatarstan</strong> is a region boasting huge educational and scientific potential.<br />

135,000 people are engaged in the sphere <strong>of</strong> education.<br />

The preschool education in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is represented by<br />

1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

1,903 preschool educational institutions where 162,200 children are raised<br />

and educated; 99.5% <strong>of</strong> them are municipal establishments. In addition,<br />

there are 2 state-run and 6 private kindergartens. The coverage <strong>of</strong> preschool<br />

education in the republic is 72%.<br />

General secondary (complete) education is compulsory and free. There<br />

are 2,298 comprehensive schools in the republic; the number <strong>of</strong> students<br />

attending them is some 386,000. The republic has 243 comprehensive establishments<br />

implementing advanced programmes for 111,700 students,<br />

which represents 29% <strong>of</strong> the total number <strong>of</strong> students. The schools in the<br />

republic host over 100 federal-level experimental platforms.<br />

After completing their compulsory education, over 90% <strong>of</strong> students<br />

continue in comprehensive schools or in the establishments <strong>of</strong> secondary<br />

special education.<br />

At present, the demand for personnel and experts in various sectors <strong>of</strong><br />

the republic’s economy is met for over 70% through the local system <strong>of</strong><br />

basic and secondary vocational training which is represented by 43 basic<br />

vocational establishments and 103 secondary vocational establishments<br />

where over 70,000 students are trained.<br />

There are 93 institutions <strong>of</strong> higher vocational education in the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> (including 23 state-run, 14 non-state and 56 branch establishments),<br />

mostly in Kazan, and some 100 scientific research institutes and<br />

design <strong>of</strong>fices.<br />

Based on the Ulyanov-Lenin Kazan State University, the Kazan (Volga Region)<br />

Federal University was founded by the Decree <strong>of</strong> Russian President<br />

Dmitry Medvedev.<br />

The strategic mission <strong>of</strong> the University is the arrangement and coordination<br />

<strong>of</strong> the work on providing balanced support to large-scale programmes<br />

<strong>of</strong> social and economic development <strong>of</strong> territories and regions comprising<br />

the Volga Federal District with highly-skilled personnel and scientific,<br />

technical and technological solutions, including the same by bringing the<br />

results <strong>of</strong> intellectual activities to practical application.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

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1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan<br />

In 2009, the Tupolev Kazan State Technical University was awarded the<br />

status <strong>of</strong> a “national research university”. In 2010, the “national university”<br />

status was awarded to the Kazan State University <strong>of</strong> Technology.<br />

<strong>Tatarstan</strong> has been famous for its high level <strong>of</strong> academic, higher education<br />

and industrial science.<br />

Many discoveries <strong>of</strong> universal importance, such as non-Euclidian geometry,<br />

fundamentals <strong>of</strong> organic chemistry, electron paramagnetic resonance<br />

which has become a basis for present-day magnetic resonance imagers,<br />

have been made in the Kazan State University, one <strong>of</strong> the oldest Russia’s<br />

high schools.<br />

Active work is currently underway in Kazan in the forefront <strong>of</strong> science<br />

and technology: nanotechnologies, medicine, supramolecular chemistry,<br />

metal complex catalysis, petroleum chemistry and biotechnology, chemistry<br />

and technology <strong>of</strong> high-molecular compounds, combined physical and<br />

mathematical simulation and design, energy and resource saving technologies.<br />

The Decree <strong>of</strong> the President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> dated September<br />

30, 1991 established the Academy <strong>of</strong> Sciences <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>,<br />

which comprises 10 academic institutions.<br />

At present, it unites 40 full members, 79 correspondent members, 24<br />

honorary members, and 4 foreign members. The scientists in the Academy<br />

have good ties and cooperation agreements with scientific institutions <strong>of</strong><br />

over 40 foreign countries and scientific organisations in the majority <strong>of</strong> Russian<br />

regions.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> has instituted and annually awards state prizes<br />

in science and technology, alongside with 12 personal awards <strong>of</strong> the Academy<br />

<strong>of</strong> Sciences <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, including two international<br />

ones. There are also 15 grants to students in the institutions <strong>of</strong> higher vocational<br />

education.<br />

8<br />

1.14 TATArSTAn: ThE SpOrTS<br />

rEpuBLic<br />

Some 20.6 percent <strong>of</strong><br />

population in <strong>Tatarstan</strong><br />

(775,000) go in for physical<br />

and sporting activities<br />

on a regular basis. Following<br />

the results <strong>of</strong> 2009,<br />

which was declared the<br />

Year <strong>of</strong> Sports and Healthy<br />

Lifestyle in <strong>Tatarstan</strong>, Kazan<br />

was recognised by an<br />

all-Russia poll as a sports<br />

capital <strong>of</strong> Russia. Furthermore,<br />

a total <strong>of</strong> 150 sports<br />

facilities were put into operation,<br />

including 5 indoor<br />

arenas with artificial ice, 5<br />

indoor swimming pools,<br />

and a trap shooting facility.<br />

Beginning in 2002, the<br />

capital <strong>of</strong> <strong>Tatarstan</strong> becomes<br />

a regular place <strong>of</strong><br />

holding major national<br />

and international competitions<br />

with participation <strong>of</strong><br />

representatives <strong>of</strong> all Russian<br />

regions and athletes<br />

from various countries.<br />

Kazan hosted the First<br />

Summer Spartakiade <strong>of</strong><br />

Russia (2003, over 6,500 participants), International Znamensky Brothers<br />

Memorial in track and field athletics (2004, 2005); Bandy World Championship<br />

(2005), finals <strong>of</strong> the 1st Russian Summer Universiade (2008), Olympic<br />

Qualifying Grass Hockey Tournament for Women (2008), Ice Hockey World<br />

Junior Championship (2008), etc.<br />

In 2009, Kazan became a venue for holding the First National Sports Forum:<br />

Russia the Sports Power attended by President <strong>of</strong> the Russian Federation<br />

Dmitry Medvedev. Within the event, five major Russian and international<br />

sports competitions were held with participation <strong>of</strong> over 1,600<br />

athletes in rhythmic gymnastics, belt wrestling, rugby sevens, track and<br />

field athletics, and wheelchair basketball.<br />

Good results are shown by <strong>Tatarstan</strong> athletes in team sports. Rubin Football<br />

Club is the two-time champion <strong>of</strong> Russia, holder <strong>of</strong> the CIS Cup, participant<br />

<strong>of</strong> the UEFA Champions League where it recorded a win in group<br />

stage over Spanish Barcelona, the best club <strong>of</strong> the world. Ak Bars Hockey<br />

Club became the 2009 winner <strong>of</strong> the Russian Open Championship and the<br />

champion <strong>of</strong> the Kontinental Hockey League, having won the first Gagarin<br />

Cup and repeating its success in 2010. The “Barses” are now four-time cham-<br />

pions (1998, 2006, 2009, 2010), European Cup winners (2007), and Continental<br />

Cup winners (2008). The KamAZ Master team (entirely composed<br />

<strong>of</strong> KamAZ-employed sportsmen), which has become a thunderbolt for all<br />

participants <strong>of</strong> the legendary Dakar Rally, is the only works team in Russia.<br />

In 2010, KamAZ team won the prize for the ninth time. Zenith-Kazan volley-<br />

2. ECONOMy<br />

2.1. EcOnOMic OVErViEW<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is located in the centre <strong>of</strong> the Russian Federation<br />

on the East European Plain, at the confluence <strong>of</strong> the two largest<br />

European rivers, the Volga and the Kama. The total area <strong>of</strong> the republic<br />

is 67,800 square kilometres (0.4% <strong>of</strong> the total area <strong>of</strong> the Russian Federation).<br />

<strong>Tatarstan</strong> is among the group <strong>of</strong> Russian regions with high level <strong>of</strong> social<br />

and economic development.<br />

In 2009, the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> ranked 5th among the constituent entities<br />

<strong>of</strong> the Russian Federation in the industrial output (1st in the Volga<br />

Federal District), 6th in the volume <strong>of</strong> construction jobs (1st in the VFD), 6th<br />

in the housing construction (2nd in the VFD), and 9th in the retail turnover<br />

(2nd in the VFD). Furthermore, the republic is among the regions with the<br />

lowest prices.<br />

In 2009, the gross regional product (GRP) <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

was estimated at RUR 878.0 billion (in basis prices), which is a decrease <strong>of</strong><br />

4.2% in the economic growth <strong>of</strong> the republic in comparable prices <strong>of</strong> the<br />

figure for previous year.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

9<br />

2. economy<br />

ball team, then Dinamo Tattransgaz, became the champion <strong>of</strong> Russia and<br />

the winner <strong>of</strong> the Russian Cup for the first time in 2007. In 2008, the team<br />

won the European Champions Cup and became the bronze prize-winner <strong>of</strong><br />

the Russian Volleyball Super League; in 2009, the team again became the<br />

champion <strong>of</strong> Russia. The year <strong>of</strong> 2010 went down in history <strong>of</strong> the club with<br />

a golden double: the Russian Cup and the gold in the national championship.<br />

UNICS Kazan Basketball Club became the silver finalist <strong>of</strong> the 2007<br />

Russian Basketball Cup, and in February 2009 it won the Russian Cup. The<br />

2009-2010 season was resulted for Kazan basketball players in the bronze<br />

medals <strong>of</strong> the Russian Championship. Sintez water polo team became in<br />

2007 the Champion <strong>of</strong> Russia and the winner <strong>of</strong> the LEN Trophy, the Europe’s<br />

second club trophy. The next year <strong>Tatarstan</strong> water polo players won<br />

silver medals <strong>of</strong> the Russian Championship; in 2009 they complemented<br />

their collection with bronze medals, and repeatedly became silver prizewinners<br />

in 2010, having also added the Russian Cup<br />

to their awards. Since 2003, the Dinamo Kazan grass<br />

hockey team, consisting for the most part <strong>of</strong> students<br />

from Dinamo <strong>Republic</strong>’s Special Junior Sports School<br />

<strong>of</strong> Olympic Reserve, seven times became the Champion<br />

<strong>of</strong> Russia.<br />

In 2013, Kazan will host the 27th World Summer<br />

Universiade. Its successful holding would enable<br />

Kazan to make a considerable breakthrough both in<br />

sports, including student’s sports, and in the development<br />

<strong>of</strong> business, tourism, and mass media as well.<br />

GRP OF THE REPUBLIC OF TATARSTAN<br />

Over a period <strong>of</strong> 2000 to 2009, the gross regional product increased by<br />

1.8 times in comparable prices.<br />

The basis <strong>of</strong> the gross regional product in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is<br />

formed by the industrial production.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> holds leading positions in the Russian Federa-


2. economy<br />

tion in the production <strong>of</strong> a number <strong>of</strong> key industrial goods. The <strong>Republic</strong><br />

manufactures (in percent <strong>of</strong> the total Russian output):<br />

• over 40% <strong>of</strong> styrene;<br />

• some 30% <strong>of</strong> centrifugal electric pumps for oil production;<br />

• some 60% <strong>of</strong> diesel trucks with fully loaded weight <strong>of</strong> 14-40 tonnes;<br />

• 100% <strong>of</strong> polycarbonate;<br />

• over 50% <strong>of</strong> polyethylene;<br />

• some 30% <strong>of</strong> automotive tyres;<br />

• over 40% <strong>of</strong> synthetic rubbers;<br />

• some 6.5% <strong>of</strong> crude oil.<br />

GRP STRUCTURE (2009)<br />

CONTRIBUTION OF PRODUCTS MANUFACTURED<br />

By TATARSTAN ENTERPRISES<br />

TO THE TOTAL RUSSIA’S PRODUCTION OUTPUT (2009)<br />

10<br />

2.2. BASic fiGurES<br />

Of MAnufAcTurinG induSTrY<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is one <strong>of</strong> the main industrial regions <strong>of</strong> the Russian<br />

Federation with strong industrial base in the field <strong>of</strong> chemistry and<br />

mechanical engineering concentrating largest enterprises, the products <strong>of</strong><br />

which are known far outside <strong>of</strong> Russia.<br />

The main budget-forming sector <strong>of</strong> the <strong>Tatarstan</strong> economy is its oil, gas,<br />

and chemical industries. Companies <strong>of</strong> <strong>Tatarstan</strong> produce crude oil, manufacture<br />

tyres, synthetic rubbers, polyethylene, and a wide range <strong>of</strong> oil refining<br />

products; also underway is the construction project <strong>of</strong> a largest plant<br />

for deep processing <strong>of</strong> heavy high-sulphur oil.<br />

Leading industries <strong>of</strong> mechanical engineering in <strong>Tatarstan</strong> are automotive<br />

and aircraft engineering manufacturing helicopters, airplanes, aircraft<br />

engines, heavy-duty trucks, compressors, oil and gas pumping equipment.<br />

<strong>Tatarstan</strong> is a home for unique plants <strong>of</strong> shipbuilding, compressor engineering,<br />

electric and radio instrument-making industries, enterprises <strong>of</strong><br />

defence industry and many others.<br />

STRUCTURE OF MANUFACTURING INDUSTRy IN 2009<br />

In the structure <strong>of</strong> industry, manufacturing activities were the largest<br />

contributor accounting for 57.9%. Mining operations accounted for 33.1%,<br />

and production and distribution <strong>of</strong> electric energy, gas and water, for 9.0%.<br />

In manufacturing activities, the largest contribution was made by vehicles<br />

and equipment with 12.3%, followed by chemical products with<br />

11.9%, oil products with 9.4%, and foodstuffs with 7.1%.<br />

In 2009, the value <strong>of</strong> shipped goods <strong>of</strong> own manufacture, works performed<br />

and services rendered by own forces reached RUR 859.0 billion. The<br />

industrial production index (IPI) recalculated with allowance for small businesses<br />

and informal economy constituted 92.3% as compared to 2008 (for<br />

reference: 89.2% in the Russian Federation).<br />

Broken down by kinds <strong>of</strong> economic activities, the production value <strong>of</strong><br />

shipped goods was as follows: in mining operations, RUR 284.6 billion (IPI<br />

<strong>of</strong> 100.6%); in manufacturing activities, RUR 497.4 billion (IPI <strong>of</strong> 86.8%); in<br />

production and distribution <strong>of</strong> electric energy, gas, and water, RUR 77 billion<br />

(IPI <strong>of</strong> 90.5%).<br />

In 2009, the crude oil production totalled 32.4 million tonnes; some<br />

27,900 trucks, 5,400 cars, 6.1 million car tyres, 3.1 million truck tyres and<br />

some 407,300 tonnes <strong>of</strong> synthetic rubbers were manufactured.<br />

PRODUCTION vALUE OF SHIPPED GOODS<br />

IN MANUFACTURING INDUSTRy<br />

2.3. fuEL And EnErGY SEcTOr<br />

One <strong>of</strong> the most important factors contributing to the sustainable economic<br />

development <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is its reliable provision with<br />

natural gas. This mainly became possible due to the longstanding cooperation<br />

with OAO Gazprom on the basis <strong>of</strong> the Cooperation Agreement and<br />

programmes for economic and R&D interaction between OAO Gazprom<br />

and the Government <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is one <strong>of</strong> the largest consumers <strong>of</strong> natural gas<br />

in the Volga region <strong>of</strong> Russia. Gas consumption in the republic in 2009 totalled<br />

13.5 billion cubic metres. The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is high on the list<br />

<strong>of</strong> Russian regions in the installation <strong>of</strong> gas services. As <strong>of</strong> the early 2009,<br />

the gas supply coverage in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> was 98%.<br />

ELECTRIC POwER INDUSTRy<br />

Power industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is a fundamental sector for<br />

the development <strong>of</strong> virtually all branches <strong>of</strong> the economy in the region. It<br />

completely meets the demand in the republic for electrical and heat energy.<br />

The energy system <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> incorporates two cogeneration<br />

companies producing heat and electrical energy, OAO Generiruyushchaya<br />

Kompaniya and ZAO TGK Urussinskaya GRES; grid companies<br />

including OAO Setevaya Kompaniya, the largest one both in the length<br />

<strong>of</strong> electric grids and composition <strong>of</strong> basic equipment and in the amount<br />

<strong>of</strong> electrical energy (power) transmitted; heat network enterprises rendering<br />

heat transfer services; and one provider <strong>of</strong> last resort in the republic,<br />

OAO Tatenergosbyt.<br />

2.4. OiL, GAS,<br />

And chEMicAL induSTriES<br />

OIL PRODUCTION<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

11<br />

2. economy<br />

According to the Territorial Board <strong>of</strong> the Federal Statistics Service in<br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, the production <strong>of</strong> fossil fuels is represented by<br />

OAO Tatneft oil company and 34 small oil-production companies carrying<br />

out their activities in the territory <strong>of</strong> 21 municipalities <strong>of</strong> the republic.<br />

PRODUCTION OF CRUDE OIL IN THE REPUBLIC OF TATARSTAN,<br />

‘000 MT<br />

With a view <strong>of</strong> implementing the Programme for Development <strong>of</strong> Fuel<br />

and Energy Complex <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> for 2006-2020 and rational<br />

use <strong>of</strong> oil and gas resources, the Resolution <strong>of</strong> the Cabinet <strong>of</strong> Ministers<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> No. 531-r <strong>of</strong> April 28, 2009 was adopted on the<br />

volumes <strong>of</strong> oil production by oil companies in the republic in 2009.<br />

In 2009, a total <strong>of</strong> 32.4 tonnes <strong>of</strong> crude oil were produced in the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> (including OAO Bashneft), which is a 0.7% increase compared<br />

to 2008. OAO Tatneft produced some 25.6 million tonnes and small oil-production<br />

companies, 6.6 million tonnes.<br />

The contribution <strong>of</strong> the small oil companies to the total oil production is<br />

increasingly growing, in good compliance with the development strategy,<br />

and reached 20.5% in 2009. Last year this figure was 20%.<br />

In 2009, the Resolution <strong>of</strong> the Cabinet <strong>of</strong> Ministers <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> No. 1049-r <strong>of</strong> August 21, 2009 specified the scope <strong>of</strong> development<br />

and exploratory drilling by oil-production companies <strong>of</strong> the republic<br />

for 2009. Oil companies in 2009 drilled a total <strong>of</strong> 601,800 metres, which is<br />

by 3.7% more than planned.<br />

In 2009, the exploratory metreage drilled was below than that planned<br />

in the programme for development <strong>of</strong> fuel and energy sector.<br />

Despite the adjustments in its current plans due to the world economic<br />

crisis and great drop in oil prices, Tatneft continues the implementation<br />

<strong>of</strong> the Programme adopted in 2008 for enhancing its corporate performance<br />

management and strengthening the financial and economic standing<br />

<strong>of</strong> the company. The priorities <strong>of</strong> this programme are to maintain


2. economy<br />

the pr<strong>of</strong>itable level <strong>of</strong> oil and gas production, to ensure full replenishment<br />

and improvement in the structure <strong>of</strong> reserves, to expand the resource base,<br />

to further develop oil refining, and to build up retail business.<br />

METREAGE OF DEvELOPMENT DRILLING<br />

IN THE REPUBLIC OF TATARSTAN, ‘000 METRES<br />

In accordance with the programme for the development <strong>of</strong> fuel and energy<br />

sector <strong>of</strong> <strong>Tatarstan</strong>, the achieved level <strong>of</strong> crude oil production in the<br />

republic should be supported through exploiting the deposits <strong>of</strong> natural<br />

bitumens.<br />

OAO Tatneft is currently performing pilot operations at Ashalchinskoe<br />

bitumen deposit. The company has mastered the technology <strong>of</strong> drilling<br />

wells with parallel horizontal wellbores and developed its own technology<br />

<strong>of</strong> steam-assisted gravity drainage for heavy oil deposits. In 2009, it<br />

extracted 18,400 tonnes <strong>of</strong> extra-viscous oil.<br />

In 2009, OAO Tatneft continued the work on implementing its strategic<br />

task <strong>of</strong> increasing the stock <strong>of</strong> hydrocarbons, including those outside <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the Russian Federation. A total <strong>of</strong> 16 new deposits,<br />

including 10 in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, 3 in Samara Region and 2<br />

in Orenburg Region have been discovered. A new oilfield was discovered<br />

in Syria and 4 exploratory wells were drilled identifying the oil productive<br />

12<br />

horizon with crude oil flowing at the rate up to 150 cubic metres per day.<br />

Two exploratory wells were drilled in Libya; when testing the first one<br />

a crude oil inflow was obtained in the amount <strong>of</strong> 103 cubic metres per<br />

day, while the development <strong>of</strong> a second well yielded 130 cubic metres<br />

per day.<br />

OIL REFINING<br />

According to State statistics, the value <strong>of</strong> shipped goods <strong>of</strong> own manufacture,<br />

works performed and services rendered by own forces in the production<br />

<strong>of</strong> oil products totalled RUR 80.5 billion in 2009. Industrial production<br />

index constituted 104.7%.<br />

PRODUCTION OF SOME OIL PRODUCTS, %<br />

In 2009, OAO TAIF-NK produced RUR 75 billion worth <strong>of</strong> oil products.<br />

OAO TAIF-NK is implementing an anti-crisis programme for 2009-2012,<br />

which includes measures for optimising the logistics structure and commercial<br />

expenses, technological measures <strong>of</strong> aimed at cutting processing<br />

costs, organisational measures aimed at decreasing the administrative expenses.<br />

For the purpose <strong>of</strong> making products with higher added value, OAO TAIF-<br />

NK is implementing a number <strong>of</strong> investment projects. In 2010, underway is<br />

the implementation <strong>of</strong> the projects for increasing the capacity <strong>of</strong> catalytic<br />

cracking installation in the gasoline plant up to 1 million tonnes <strong>of</strong> crude<br />

oil and building the facilities for processing <strong>of</strong> the heavy oil residue (bringing<br />

the oil refining depth to 98%). At present, a feasibility study has been<br />

completed and contracts for base design are scheduled for signing. The implementation<br />

<strong>of</strong> this project would allow the company to increase its pr<strong>of</strong>it<br />

up to US$ 500 million a year.<br />

Another major trend <strong>of</strong> oil refining development in the republic is the<br />

ongoing construction <strong>of</strong> the Complex <strong>of</strong> Oil Refining and Petrochemical<br />

Plants which would make it possible to carry out deep processing <strong>of</strong> the<br />

crude oil produced in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and to make oil products<br />

and petrochemicals. In 2010, OAO Tatneft plans to put into operation a<br />

start-up complex <strong>of</strong> the oil refining plant with capacity <strong>of</strong> 7 million tonnes<br />

<strong>of</strong> crude oil a year.<br />

CHEMICAL AND PETROCHEMICAL INDUSTRy<br />

Petrochemical enterprises account for about 17% <strong>of</strong> the republic’s industrial<br />

output and some 12% <strong>of</strong> the national output <strong>of</strong> petrochemicals.<br />

Today, the republic’s enterprises manufactured some 60% <strong>of</strong> the Russia’s<br />

polystyrene, over 40% <strong>of</strong> synthetic rubbers, over 30% <strong>of</strong> polypropylene and<br />

tyres, and over 50% <strong>of</strong> polyethylene.<br />

In 2009, petrochemical enterprises <strong>of</strong> <strong>Tatarstan</strong> manufactured and<br />

shipped over RUR 142 billion worth <strong>of</strong> goods. Industrial production index<br />

in the chemical branch constituted 107.5%, while in the production <strong>of</strong> rubber<br />

and plastic products it was 77.4%.<br />

Even under the conditions <strong>of</strong> limited financial resources, key enterprises<br />

continue the implementation <strong>of</strong> their large-scale investment projects.<br />

Polyethylene production with capacity <strong>of</strong> 230,000 tonnes a year was put<br />

into operation in OAO Nizhnekamskneftekhim.<br />

The construction <strong>of</strong> the all-steel tyre plant with capacity <strong>of</strong> 1.2 million<br />

tyres a year has been completed in the city <strong>of</strong> Nizhnekamsk with investments<br />

from Tatneft.<br />

The production <strong>of</strong> non-woven Spanbond with capacity <strong>of</strong> over 10,000<br />

tonnes a year has been launched in SEZ Alabuga (ZAO Polimatiz).<br />

The Industrial Park Kamskiye Polyany hosted the lines for the multifilament<br />

polypropylene yarn production with capacity <strong>of</strong> up to 2,000 tonnes<br />

a year and the stretch film production with capacity <strong>of</strong> over 8,000 tonnes<br />

a year.<br />

Nefis Cosmetics has expanded its production <strong>of</strong> consumer goods up to<br />

the international standards.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

13<br />

2. economy<br />

OAO Kvart has launched the production <strong>of</strong> products from dynamic thermoplastic<br />

elastomers for the needs <strong>of</strong> automotive industry.<br />

Small businesses in the industry focused on the production <strong>of</strong> chemicals<br />

begin to play an increasingly important role in the republic. A number <strong>of</strong><br />

them produce goods with an economic output well comparable with that<br />

<strong>of</strong> a medium-sized enterprise. For example, Safplast, Danaflex, Polimatiz<br />

are the enterprises with a billion turnovers. Also vigorously developing are<br />

chemical businesses in Kamskiye Polyany and in the territory <strong>of</strong> Khimgrad.<br />

This complies favourably with the decisions <strong>of</strong> the republic’s leadership<br />

about the deeper processing <strong>of</strong> raw chemicals to the converted products<br />

with high added value.<br />

2.5. MEchAnicAL EnGinEErinG<br />

And METALWOrKinG<br />

In 2009, the mechanical engineering enterprises manufactured commodities<br />

to a total <strong>of</strong> RUR 177.2 billion, the industrial production index in<br />

this sector constituted 69.4%; this accounted for 20.6% <strong>of</strong> the total commodities<br />

produced in the manufacturing industry.<br />

A year elapsed since the onset <strong>of</strong> the financial crisis had a drastic impact<br />

on the priorities and environment <strong>of</strong> economies in the Russian Federation<br />

and the world community in general. This resulted in the falling consumer<br />

demand for investment-oriented products, and primarily, for mechanical<br />

engineering products.<br />

The greatest decline in the production in this sector was due to a resource-intensive<br />

pattern <strong>of</strong> the mechanical engineering enterprises and<br />

rather low labour productivity, which entailed low competitiveness <strong>of</strong> economic<br />

entities and their products.<br />

To overcome the consequences <strong>of</strong> the crisis, virtually all large and medium-sized<br />

enterprises <strong>of</strong> mechanical engineering and instrument making<br />

industries worked out their anti-crisis programmes, the implementation <strong>of</strong><br />

which, along with the continuous work on the mastering <strong>of</strong> new kinds <strong>of</strong><br />

competitive products, largely promoted the stabilisation <strong>of</strong> the situation in<br />

these industries.<br />

Within the framework <strong>of</strong> its programme, OAO KamAZ is performing the<br />

work on optimising the expenditures (purchases <strong>of</strong> completing parts, wage<br />

fund, administrative expenses), increasing labour productivity, selling noncore<br />

assets, and on a number <strong>of</strong> other areas. This enables the company,<br />

even under conditions <strong>of</strong> the crisis, to expand its consumer market sales<br />

niche in virtually all segments <strong>of</strong> the manufactured vehicles: dump-body<br />

trucks, platform vehicles, and specialised machinery.<br />

For increasing the competitiveness <strong>of</strong> its truck line, OAO KamAZ was participating<br />

in the creation and successful development <strong>of</strong> the joint venture<br />

companies with world’s leading automotive component manufacturers,<br />

such as OOO Knorr-Bremse Kama (drum-type and disk brakes), ZAO Cummins<br />

Kama (engines), Federal Mogul Naberezhnye Chelny (piston rings and<br />

sleeve assemblies), OOO ZF Kama (automatic transmissions).<br />

Strengthening the market positions <strong>of</strong> the republic’s automotive industry<br />

was promoted by an efficient state support rendered at the levels <strong>of</strong><br />

the Government <strong>of</strong> the Russian Federation and the Cabinet <strong>of</strong> Ministers the


2. economy<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. In 2009, about 8,300 vehicles were sold under the<br />

government programmes for procurement <strong>of</strong> KamAZ vehicles (to federal<br />

enforcement authorities, constituent entities <strong>of</strong> the Russian Federation,<br />

OAO State Transport Leasing Company, OAO Rosagrolizing). In addition,<br />

the Government <strong>of</strong> the Russian Federation rendered state support to<br />

OAO KamAZ by granting governmental guarantees for raising credits <strong>of</strong><br />

commercial banks in the total amount <strong>of</strong> RUR 3.6 billion.<br />

OAO KamAZ has plans to increase in 2010 its output and sales by 8%<br />

compared to 2009. In the areas being vacated due to implementation <strong>of</strong><br />

the anti-crisis programme, several projects <strong>of</strong> Daimler Corporation will continue,<br />

including the Mercedes-Benz Trucks Vostok joint venture company<br />

and joint activities with world’s leading manufacturers <strong>of</strong> automotive components,<br />

which would make it possible to gradually increase the competitiveness<br />

<strong>of</strong> automotive vehicles. Inclusive <strong>of</strong> federal and republic’s statemanaged<br />

resources, the work will be continued on raising up to RUR 10<br />

billion for the implementation <strong>of</strong> a number <strong>of</strong> investment projects.<br />

The 2009 results for the factories <strong>of</strong> OAO Sollers located in the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> were as follows: OAO Sollers-Naberezhnye Chelny delivered<br />

5,900 vehicles worth RUR 3.4 billion; OOO Sollers-Yelabuga delivered<br />

4,500 trucks, 535 cars and over 2,000 minibuses to a total <strong>of</strong> RUR 5.8 billion;<br />

OAO Severstal-Isuzu delivered 732 trucks worth RUR 615 million.<br />

Business development prospects <strong>of</strong> Sollers in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

are associated with the Agreement signed between FIAT S.p.A. and<br />

OAO Sollers on the establishment <strong>of</strong> new facilities in the territory <strong>of</strong> the<br />

republic to manufacture up to 500,000 cars a year, and arrangement <strong>of</strong> a<br />

pool <strong>of</strong> suppliers to provide components for their assembly. The availability<br />

<strong>of</strong> such pool for supplying automotive components (including stamped<br />

parts) in the same location with car assembly facilities will allow Sollers enterprises<br />

to ensure high degree <strong>of</strong> localisation <strong>of</strong> FIAT Ducato and ISUZU<br />

vehicles manufactured in the territory <strong>of</strong> SEZ Alabuga.<br />

In summer 2009, the Ministry <strong>of</strong> Industry and Trade <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> and OOO Sollers-Yelabuga have signed the Protocol on Collabo-<br />

14<br />

ration regarding the production <strong>of</strong> components for assembly <strong>of</strong> Fiat Ducato<br />

vehicles. Within the automotive component development programme,<br />

the production <strong>of</strong> seats was launched jointly with Eisrenhausen и Daewoo;<br />

production <strong>of</strong> plastic interior and exterior parts, jointly with Ergom and<br />

OOO Khiton-Plast; and production <strong>of</strong> exhaust systems, jointly with Magnetti<br />

Marelli.<br />

State support is being rendered to small businesses located on the<br />

premises <strong>of</strong> OAO Kama Industrial Park Master. This programme includes<br />

granting rent holidays for the permanent part <strong>of</strong> the rent subject to timely<br />

and full payment <strong>of</strong> the variable part <strong>of</strong> the rent, debt <strong>of</strong>fsets for the lessees<br />

supplying their products to OAO KamAZ through the mechanism <strong>of</strong> assigning<br />

the rights, and deferral <strong>of</strong> rent payments until the end <strong>of</strong> 2009.<br />

As <strong>of</strong> January 2010, KIP Master hosted 134 enterprises and organisations<br />

with a total number <strong>of</strong> 1,362 employees. Its 2009 production valued at<br />

RUR 4,306 million.<br />

In 2009, OAO PO YelAZ introduced new modifications <strong>of</strong> special machinery<br />

for oil and gas industry, including hoist unit APRS-50 on KamAZ-65115<br />

chassis, hoist unit APR-60/80, hoist unit APR-80, and cementing unit ATs-32.<br />

In 2009, Design Bureau for Road Equipment was established under this<br />

enterprise. Eleven multifunctional road vehicles UDM-80Е on KamAZ-65115<br />

chassis were manufactured, pilot models <strong>of</strong> road master vehicles MDM-A,<br />

MDM-E on Fiat-Ducato and ISUZU bases were designed and released together<br />

with OOO Sollers-Yelabuga.<br />

Active work is underway for seeking new orders for the production <strong>of</strong><br />

non-standardised equipment and mechanical facilities for equipping new<br />

all-steel tyre plant <strong>of</strong> Nizhnekamsk Tyre Factory and building metal structures<br />

for OAO TANECO Oil Refining and Petrochemical Complex. Agricultural<br />

modification <strong>of</strong> MK-10E on MTZ-82.1 tractor base was introduced.<br />

Increase in the competitiveness <strong>of</strong> the company is promoted by introducing<br />

the measures envisaged by the Lean Production methodology. For<br />

some time past, these organisational and technical measures resulted in<br />

lowering the expenses by RUR 80.8 million, including those for materials<br />

(RUR 32.4 million), for power resources (RUR 14.5 million); through the sales<br />

<strong>of</strong> unmarketable products, RUR 5.0 million, etc.<br />

The anti-crisis programme for 2009-2011 adopted in February is being<br />

implemented in OAO Kazankompressormash. The programme’s actions are<br />

grouped in three lines: aggressive marketing, optimisation <strong>of</strong> resource usage,<br />

and efficient management. Economic benefit <strong>of</strong> their introduction in<br />

2009 totalled some RUR 100 million.<br />

This work largely promotes the successful participation <strong>of</strong> the republic’s<br />

compressor manufacturers in the tenders conducted by largest Russian<br />

and foreign companies. In 2009, OAO Kazankompressormash won a<br />

RUR 1.08 billion tender for supply <strong>of</strong> products to OAO Lukoil. Delivery <strong>of</strong><br />

compressors for Angara missile complex in the amount <strong>of</strong> some RUR 400<br />

million, for OAO SIBUR Holding in the amount <strong>of</strong> RUR 2 billion, a number <strong>of</strong><br />

other already signed contracts – all this allow the enterprise to safely look<br />

ahead estimating a 16% production growth in 2010.<br />

In pursuance <strong>of</strong> the resolutions <strong>of</strong> the Cabinet <strong>of</strong> Ministers <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> No.1506-r <strong>of</strong> 16.11.2009 and No.778-r <strong>of</strong> 26.06.2009, a<br />

structure has been created as a part <strong>of</strong> OAO Tatneftekhiminvest-Holding<br />

to coordinate the interaction between enterprises <strong>of</strong> oil, gas, chemical, and<br />

mechanical engineering industries <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. Experts <strong>of</strong><br />

OAO Tatneftekhiminvest-Holding, jointly with the Ministry <strong>of</strong> Industry and<br />

Trade <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, elaborated the Concept <strong>of</strong> Developing<br />

the Cooperation in Oil, Gas, Chemical, and Mechanical Engineering Industries<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

DEFENCE INDUSTRy ENTERPRISES<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is a home for 13 large and medium-sized enterprises<br />

and over 10 scientific research institutions and design bureaus being<br />

a part <strong>of</strong> the Russia’s defence industry and engaged in the sphere <strong>of</strong> ammunition<br />

production, special chemistry, aircraft engineering, shipbuilding,<br />

production <strong>of</strong> control systems and conventional arms.<br />

In 2009, large and medium-sized enterprises <strong>of</strong> defence industry accounted<br />

for 7% <strong>of</strong> the total production in the economy the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong>; these enterprises produced RUR 38.6 billion worth <strong>of</strong> goods,<br />

which constituted 102.2% <strong>of</strong> the figure for 2008.<br />

The substantial growth in the production was recorded by the following<br />

enterprises: OAO Gorky Zelenodolsk Plant (119.7%), OAO Kazan Helicopter<br />

Plant (111.2%), OAO Gorbunov Kazan Aircraft Production Association<br />

(105.8%), and OAO Kazan Electrotechnical Plant (134.6%).<br />

2.6. LiGhT, fOOd-prOcESSinG,<br />

And TiMBEr induSTriES<br />

LIGHT INDUSTRy<br />

The light industry in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is represented by 567 business<br />

entities, <strong>of</strong> which 24 are large and medium-sized enterprises. Some<br />

90% <strong>of</strong> the companies are private.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

15<br />

2. economy<br />

The light industry’ share <strong>of</strong> the total production <strong>of</strong> goods and services in<br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> was 0.4%.<br />

In 2009, the industry shipped RUR 3.1 billion worth <strong>of</strong> goods. The industrial<br />

production index in textile and sewing branches was 99.6%, in leather,<br />

leather products and footwear, 86.5%.<br />

In 2009, a new enterprise, ZAO Polimatiz, was established in the Free<br />

Economic Zone Alabuga focused on the production <strong>of</strong> a wide range <strong>of</strong> hitech<br />

polymeric materials and products used in various industries (such as<br />

Spanbond and Meltblown). The production facilities <strong>of</strong> the enterprise are<br />

capable <strong>of</strong> releasing up to 10,000 tonnes <strong>of</strong> nonwoven cloth a year, to a<br />

total <strong>of</strong> RUR 700.0 million. Similar production is launched in Nizhnekamsk<br />

in OOO Elastik.<br />

Since the beginning <strong>of</strong> the year, enterprises recorded RUR 1,086.4 million<br />

<strong>of</strong> investments into fixed capitals.<br />

For the purpose <strong>of</strong> creating the conditions to attract investment to light<br />

industry and to set up competitive, high-technology productions in the<br />

republic, the Concept <strong>of</strong> Light Industry Development in the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> for 2007-2010 has been adopted.<br />

FOOD-PROCESSING INDUSTRy<br />

In 2009, the enterprises making foodstuffs shipped RUR 61.3 million<br />

worth <strong>of</strong> goods; the corresponding industrial production index reached<br />

106.7%.<br />

Growth <strong>of</strong> production volumes in this industry was achieved owing to the<br />

development <strong>of</strong> productive forces, first <strong>of</strong> all, through investing into up-todate<br />

technologies and equipment, which make it possible both to raise the<br />

output per worker and to enhance the competitiveness <strong>of</strong> products.<br />

TIMBER INDUSTRy<br />

Timber industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is presented by two kinds<br />

<strong>of</strong> economic activities:


2. economy<br />

• wood processing and manufacture <strong>of</strong> wood products, except for<br />

furniture;<br />

• pulp-and-paper production.<br />

In 2009, the timber industry generated RUR 11.5 billion in total economic<br />

output, with the industrial production index <strong>of</strong> 80.7%.<br />

The value <strong>of</strong> production in the wood processing and manufacture <strong>of</strong><br />

wood products was RUR 3.7 billion, with the industrial production index<br />

<strong>of</strong> 57%. The value <strong>of</strong> production in the pulp and paper production was<br />

RUR 7.8 billion, with the industrial production index <strong>of</strong> 104%.<br />

NUMBER OF ORGANISATIONS ENGAGED IN wOOD PROCESSING<br />

AND MANUFACTURE OF wOOD PRODUCTS, PULP-AND-PAPER<br />

PRODUCTION IN 2007-2009<br />

16<br />

1400<br />

1200<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

1056<br />

1137<br />

1173<br />

564 616 618<br />

2007 2008 2009<br />

Wood processing and manufacture <strong>of</strong> wood products, except for furniture<br />

Pulp and paper production<br />

IPI IN TIMBER INDUSTRy SECTORS IN 2007–2009, IN PERCENT<br />

The drop in the production output <strong>of</strong> wood processing and manufacture<br />

<strong>of</strong> wood products was due to the decrease in consumption in foreign markets<br />

and discontinuation <strong>of</strong> some construction projects in 2009.<br />

A major task <strong>of</strong> the timber industry for 2010 is the re-equipment <strong>of</strong> the<br />

enterprises in the industry, introduction <strong>of</strong> energy and resource saving<br />

technologies, and salvaging the waste by these enterprises as energy resources.<br />

The Resolution <strong>of</strong> the Cabinet <strong>of</strong> Ministers <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

No.61 <strong>of</strong> 10.02.2010 approved the “Strategy <strong>of</strong> Forestry Development in the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> until 2018“. This strategy provides for the creation <strong>of</strong><br />

timber processing facilities in the locations with unused s<strong>of</strong>twood aspen<br />

and birch forests for the production <strong>of</strong> high-quality wood particle and MDF<br />

boards.<br />

2.7. inTrOducTiOn Of QuALiTY<br />

MAnAGEMEnT SYSTEM<br />

Once the Programme for Improving the Quality <strong>of</strong> Products and Services<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> for 2004-2006 (Programme “Quality”) was completed<br />

in <strong>Tatarstan</strong>, this implied the end <strong>of</strong> the stage <strong>of</strong> evaluating the approaches<br />

to the use <strong>of</strong> ISO 9000 standards in the systems <strong>of</strong> management<br />

<strong>of</strong> the republic’s economic entities. As a result, more than 350 republic’s<br />

enterprises and organisations <strong>of</strong> different form <strong>of</strong> ownership and lines <strong>of</strong><br />

business have confirmed the compliance <strong>of</strong> their quality management systems<br />

to ISO 9001 standard.<br />

NUMBER OF ENTERPRISES THAT CERTIFIED THEIR QMS<br />

IN COMPLIANCE wITH ISO 9001<br />

Environmental management systems were certified in compliance with<br />

ISO 14001 standard by 16 organisations <strong>of</strong> the republic. Five enterprises<br />

have safety management systems certified in compliance with OHSAS<br />

18001.<br />

Authority for certification <strong>of</strong> goods and services: ZAO <strong>Republic</strong>’s Certification<br />

Methodical Centre - Test <strong>Tatarstan</strong><br />

Authority for certification <strong>of</strong> quality management systems: ZAO <strong>Republic</strong>’s<br />

Certification Methodical Centre - Test <strong>Tatarstan</strong><br />

Authority for certification <strong>of</strong> integrated management systems: ZAO <strong>Republic</strong>’s<br />

Certification Methodical Centre - Test <strong>Tatarstan</strong><br />

Authority for certification <strong>of</strong> quality management systems: Representative Office<br />

<strong>of</strong> Certification Association Russkiy Registr, OOO Russkiy Registr – Povolzhye<br />

Authority for certification <strong>of</strong> quality management systems: ROSSERT, OOO Volga<br />

Region Certification Training Methodical Centre<br />

Authority for certification <strong>of</strong> integrated management systems: OOO Tsentr<br />

Kachestva<br />

Authority for certification <strong>of</strong> quality management systems: OAO Tsentr<br />

ROSSERTIFIKO<br />

Authority for certification <strong>of</strong> radio electronic products and household electric<br />

appliances: OAO Russian Centre <strong>of</strong> Tests and Certification <strong>of</strong> Petrochemical Products<br />

Authority for certification <strong>of</strong> chemical, petrochemical and oil refining products:<br />

OAO Russian Centre <strong>of</strong> Tests and Certification <strong>of</strong> Petrochemical Products<br />

Authority for certification <strong>of</strong> medical tools and equipment: ANO Centre for<br />

Certification <strong>of</strong> Medical Tools and Equipment<br />

Authority for certification <strong>of</strong> automotive products: Chamber <strong>of</strong> Commerce<br />

and Industry <strong>of</strong> Naberezhnye Chelny and Trans-Kama Region<br />

Authority for certification <strong>of</strong> electric equipment: АNО Test Centre Soyuz<br />

Authority for certification <strong>of</strong> chemical and petrochemical products: Khimprom,<br />

OOO Interregional Centre for Tests and Certification <strong>of</strong> Technologies, Products,<br />

and Goods<br />

Authority for certification <strong>of</strong> foods: FGU Federal Centre <strong>of</strong> Toxicological and<br />

Radiation Safety <strong>of</strong> Animals<br />

Authority for certification <strong>of</strong> foods: FGU Russian Agricultural Centre (branch<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>)<br />

49, Kosmonavtov St., Kazan 420061, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Sergey Gogin<br />

Tel.: (843) 2952302 / (843) 2796281<br />

E-mail: test-tatarstan@rsmc.ru<br />

26, Vishnevsky St. (Central Depository bldg.), Kazan 420043, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Andrei Yashin<br />

Tel./Fax: (843) 236-44-73, 236-41-73<br />

E-mail: kazan@rusregister.ru, jashin@tatcsm.ru<br />

Bldg. 2, 34, Subirsky Trakt St., Kazan 420029, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Gennady Sidorov<br />

Tel.: (843) 5109822, 5109823 / (843) 5109822, 5109823<br />

E-mail: gisid@mail.ru<br />

Office 409, bldg. 2, 34, Subirsky Trakt St., Kazan 420029, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Ilfat Khabibullin<br />

Tel.: (843) 2581772 / (843) 5109999<br />

E-mail: tatgm@km.ru<br />

P.O.B. 102, bldg. 2а, 100, Vosstaniya St., Kazan 420095, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Davyd Gelman<br />

Tel.: (843) 5422868 / (843) 5425140, 5425112<br />

E-mail: ros@kgts.ru<br />

12, Saidashev St., Kazan, 420021, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Natalia Novikova<br />

Tel.: (843) 2933264 / (843) 2933264<br />

E-mail: medsert@mail.ru<br />

122, Usmanov St., Naberezhnye Chelny 423826, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Irekzhan Bakirov<br />

Tel.: (8552) 562345, 724513 / (8552) 562345, 724513<br />

E-mail: tpp@016.ru<br />

5, Chistopolskaya St., Kazan 420066, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Nikolai Petryakov<br />

Tel.: (843) 5713242 / (843) 5454598<br />

1, Vasilchenko St., Kazan 420095, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Yulia Safina<br />

Tel.: (843) 5121538 / (843) 5121538<br />

E-mail: himpromsert@mail.ru<br />

Nauchny Gorodok-2, Kazan 420075, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Albert Chernov<br />

Tel.: (843) 2395329, 2395342 / (843) 2395329<br />

E-mail: vnivi@mail.ru<br />

14, Daurskaya St., Kazan 420059, <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

Head: Takhir Khadeyev<br />

Tel.: (843) 2778209 / (843) 2778209<br />

E-mail: rscrt@mail.ru<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

17<br />

2. economy<br />

FOR THE CERTIFICATION OF GOODS, SERvICES AND MANAGEMENT SySTEMS, CORRESPONDING INFRASTRUCTURE HAS BEEN CREATED<br />

IN THE REPUBLIC.


2. economy<br />

prOducTiOn<br />

SuBcOnTrAcTinG<br />

Under current conditions, an actual problem<br />

<strong>of</strong> the industrial enterprises <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> is an active work on enhancing<br />

the competitiveness through re-equipment,<br />

introduction <strong>of</strong> new industrial areas <strong>of</strong> focus,<br />

implementation <strong>of</strong> anti-crisis development<br />

programmes. Of great significance in achieving these tasks is the work on<br />

reducing internal process costs by introducing mechanisms <strong>of</strong> subcontracting,<br />

i.e. production cooperation, and by restructuring enterprises on<br />

an outsourcing basis. The essence <strong>of</strong> this approach can be described as follows:<br />

“While keeping to myself the things that I can do better than others,<br />

I out-task to other performers the things they can do better than others”.<br />

With an aim <strong>of</strong> implementing the said approaches, a State non-pr<strong>of</strong>it<br />

fund, Production Subcontracting Centre <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, was<br />

created in the republic which allows solving many problems arising in the<br />

process, such as seeking the suppliers, ensuring the affordable procurement<br />

prices for component parts, and maintaining the quality objectives.<br />

As requested by the Ministry <strong>of</strong> Industry and Trade <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>,<br />

the Production Subcontracting Centre has worked out and is supporting<br />

the automated Internet project at www.cps-rt.ru “Integrated Information<br />

Support System for Commodity Producers”. Its mission is to create and<br />

develop the infrastructure for production cooperation.<br />

The portal www.cps-rt.ru incorporates the following sections: Science<br />

and Production, Subcontracting, Goods and Services, and All <strong>Tatarstan</strong>.<br />

1. Science and production: contains innovation projects <strong>of</strong> current inter-<br />

18<br />

est; research and engineering issues <strong>of</strong> industrial enterprises which should<br />

be solved by involving research and design organisations, inventor teams, investors;<br />

R&D solutions <strong>of</strong>fered for the introduction by universities and sectoral<br />

research, design and industrial organisations <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

2. Subcontracting: provides for the deployment <strong>of</strong> production and technology<br />

capabilities <strong>of</strong> industrial enterprises in <strong>Tatarstan</strong> for the market <strong>of</strong><br />

subcontracting services and receipt <strong>of</strong> additional orders from other enterprises,<br />

making it possible to organise the controlled restructuring <strong>of</strong> enterprises<br />

on an outsourcing basis.<br />

3. Goods and Services: renders advertising support to commodity producers,<br />

including small and medium-sized businesses, for promoting their<br />

products and services to the markets <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and other<br />

regions <strong>of</strong> the Russian Federations.<br />

4. All <strong>Tatarstan</strong>: a reference system with brief contact information <strong>of</strong> enterprises,<br />

organisations and agencies in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

Production Subcontracting Centre <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is a<br />

participant <strong>of</strong> the National Partnership <strong>of</strong> Subcontracting Development,<br />

a non-pr<strong>of</strong>it partnership in the Russian Federation, and cooperates with<br />

republic’s ministries and agencies. Its partners include ROR Association <strong>of</strong><br />

Enterprises and Entrepreneurs <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, Association <strong>of</strong><br />

Small and Medium-Sized Businesses <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, Committee<br />

for Small and Medium-Sized Business Development <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>, and Chamber <strong>of</strong> Commerce and Industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong>.<br />

By making use <strong>of</strong> the Integrated Information Support System for Commodity<br />

Producers at www.cps-rt.ru, any businessman, scientist, or manufacturer<br />

would be able to implement his project on an outsourcing basis in<br />

real time by involving experts in the corresponding field <strong>of</strong> activities to the<br />

project implementation.<br />

3. AGRICULTURE<br />

The total ground area <strong>of</strong> the republic is 6.8 million hectares, including<br />

farmland <strong>of</strong> 4.5 million hectares, <strong>of</strong> which 3.5 million hectares are arable<br />

land. Total population living in rural areas is 943,500.<br />

The agrarian sector is a large sphere <strong>of</strong> the national economy playing an<br />

important role in the life <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

The development <strong>of</strong> the agro-industrial complex remains one <strong>of</strong> the economic<br />

priorities <strong>of</strong> the <strong>Tatarstan</strong> leadership; the sector enjoys a considerable<br />

governmental support. Since 2000, there is a stable growth in the crop<br />

and livestock production.<br />

The republic is ranked among top three leading regions <strong>of</strong> Russia in the<br />

total output <strong>of</strong> agricultural products and completely satisfies the demand<br />

<strong>of</strong> its residents for staple foodstuffs.<br />

<strong>Tatarstan</strong> boasts the cheapest minimum subsistence basket both in the<br />

Volga Federal District and in the country in general.<br />

In 2009, the volume <strong>of</strong> agricultural output <strong>of</strong> all agricultural organisations<br />

and farming enterprises generated revenue <strong>of</strong> RUR 119.1 billion<br />

(101.5% compared to 2008). The gross yield <strong>of</strong> grains was 4.8 million tonnes<br />

(that is, some 1.3 tonnes <strong>of</strong> grains per <strong>Republic</strong>’s resident thus exceeding<br />

the internationally accepted standards). A total <strong>of</strong> 1.9 million tonnes <strong>of</strong> potatoes,<br />

1.5 million tonnes <strong>of</strong> sugar beet, and 305,000 tonnes <strong>of</strong> vegetables<br />

were harvested in 2009.<br />

The developed and steady agriculture forms a basis for efficient and<br />

high-grade livestock husbandry. <strong>Tatarstan</strong> distinguishes itself by a substantial<br />

livestock potential. With its high density <strong>of</strong> cattle and poultry stock, the<br />

republic is increasing its contribution towards ensuring the food security<br />

<strong>of</strong> the country.<br />

The cattle stock <strong>of</strong> all agricultural producers was estimated at 1,122,000,<br />

including 424,000 cows; other livestock includes 701,000 pigs, 393,000<br />

sheep and goats, and 13.1 million poultry.<br />

In 2009, the production <strong>of</strong> milk by all agricultural producers totalled<br />

1,911,000 tonnes (104.9% to the level <strong>of</strong> 2008); the republic is a contributor<br />

<strong>of</strong> over 5.9% <strong>of</strong> the total milk produced in Russia. The production <strong>of</strong> livestock<br />

and poultry for slaughter was 413,000 tonnes on a live weight basis<br />

(105.6 % <strong>of</strong> the figure for 2008).<br />

In general, with its 2.3 % <strong>of</strong> the country’s farmland, the republic accounts<br />

for 4.8% <strong>of</strong> the country’s agricultural produce.<br />

Implementing active social policies, using, as much as possible, the internal<br />

reserves, and ensuring the growth <strong>of</strong> rural economy are largely promoted<br />

by the consistent implementation <strong>of</strong> the Programme for Agriculture<br />

Development in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> for 2008-2012.<br />

<strong>Tatarstan</strong> has formed a really diversified economy. Its own strategic<br />

investors and private companies hold a half <strong>of</strong> the republic’s arable land<br />

3. aGRiculTuRe<br />

and livestock, advanced technologies and machinery. They invested over<br />

RUR 90 billion into the agricultural business development. <strong>Tatarstan</strong>’s large<br />

investors are OAO VAMIN <strong>Tatarstan</strong>, ZAO HK Zolotoy Kolos, ZAO Agrosila<br />

Group, OAO Krasny Vostok-Agro, and OAO HK Ak Bars-Agro.<br />

Critical factors determining the vector <strong>of</strong> agricultural development are<br />

the efficient utilisation <strong>of</strong> available arable land, livestock and poultry; optimisation<br />

<strong>of</strong> expenditures through introduction <strong>of</strong> resource saving and innovative<br />

technologies; increase in the business activities <strong>of</strong> rural residents;<br />

and support <strong>of</strong> small businesses in rural areas. Due to the systematic upgrading<br />

and renovation <strong>of</strong> the enterprises in this sector, <strong>Tatarstan</strong> succeeded<br />

in stabilising and later increasing the production outputs, in effecting a<br />

further development as a country’s most successful agrarian region.<br />

Since the outset <strong>of</strong> the agrarian project, an opportunity has emerged to<br />

better develop the family commercial farming with governmental support.<br />

Over these years, some 45,000 credits to a total <strong>of</strong> more than RUR 9.0 billion<br />

were granted under the Plan <strong>of</strong> Promoting the Development <strong>of</strong> Small Farm<br />

Patterns. Some RUR 825 million were paid towards easing <strong>of</strong> the credits<br />

received.<br />

Some 5,600 young pr<strong>of</strong>essionals and young families were subsidised for<br />

housing acquisition or construction in rural settlements for a total amount<br />

<strong>of</strong> RUR 3.9 billion under the Plan <strong>of</strong> Providing Young Pr<strong>of</strong>essionals and<br />

Young Families with Affordable Housing in Rural Areas.<br />

The present-day agricultural industry with its mixed pattern <strong>of</strong> ownership<br />

imposes heavy demands on the pr<strong>of</strong>essional level <strong>of</strong> managers and<br />

specialists. The educational cluster <strong>of</strong> the agro-industrial complex is a mutually<br />

beneficial cooperation <strong>of</strong> agricultural educational establishments<br />

and such employers as large investors and agro-industrial firms, with a view<br />

<strong>of</strong> enhancing the quality <strong>of</strong> experts’ training for their agricultural production<br />

work.<br />

The educational cluster <strong>of</strong> the agro-industrial complex comprises the<br />

Kazan State Agricultural University, the Kazan State Academy <strong>of</strong> Veterinary<br />

Medicine, the Tatar Institute for Agribusiness Personnel Retraining, 7 agricultural<br />

secondary schools, 40 vocational schools, 6 agrarian colleges, and<br />

comprehensive schools.<br />

Social infrastructure is also being intensively developed in rural areas. For<br />

instance, the provision <strong>of</strong> gas supply to houses and apartments in rural areas<br />

has almost been completed; up to 200 kilometres <strong>of</strong> paved roads and over<br />

hundred schools, kindergartens, community clubs and a number <strong>of</strong> other<br />

social support facilities are put into service or reconstructed each year. Over<br />

90% <strong>of</strong> the republic’s territory is covered with cellular communications <strong>of</strong><br />

major Russian operators. All 43 rural districts are connected to the governmental<br />

integrated telecommunications system <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

19


4. summaRy <strong>of</strong> TaTaRsTan lanD maRKeT<br />

4. SUMMARy OF TATARSTAN LAND MARKET 5. TRANSPORT<br />

In 2009, the crisis also affected the land market; the land plot sales<br />

dropped year over year. In expectation <strong>of</strong> lower land prices, buyers limited<br />

their activities. The wave <strong>of</strong> investment purchases <strong>of</strong> land plots for resale<br />

has faded away.<br />

As to the trend <strong>of</strong> the land prices, it is somewhat different than that <strong>of</strong><br />

the real estate prices. Land prices decreased, but a specific character <strong>of</strong> this<br />

decrease is dictated by the land market rules: maximum discount reaches<br />

10-20%, and it is rather difficult to have a discount for good land plots. No<br />

decrease at all was observed for the most demanded areas, because sellers<br />

prefer to keep the prices steady. The republic’s average land market prices<br />

decreased by 15% in 2009.<br />

The highest prices were still recorded for land plots in Kazan, ranging<br />

from RUR 8,000 to RUR 25,000 per square metre for land plots in the central<br />

city area and up to RUR 35,000 per square metre in the historic centre.<br />

The prices for the land plots located along major traffic arteries <strong>of</strong> the<br />

city are somewhat lower, ranging from RUR 6,000 to RUR 15,000 per square<br />

metre; in massive housing development areas they range from RUR 2,500<br />

to RUR 12,000 per square metre.<br />

Prices for land lots in the industrial zone <strong>of</strong> Kazan are much lower, from<br />

RUR 1,500 to RUR 3,500 per square metre.<br />

Lands do not expand in area, but the number <strong>of</strong> land plots intended for<br />

individual housing construction is increasingly growing. Transfer <strong>of</strong> the agricultural<br />

lands to the category <strong>of</strong> lands for individual housing construction<br />

is one <strong>of</strong> the governmental measures <strong>of</strong> providing incentives to the<br />

housing market; the process <strong>of</strong> including the agricultural land plots into<br />

the boundaries <strong>of</strong> inhabited localities is also underway. This land transfer is<br />

most intensive in Laishevsky and Zelenodolsky districts. The land adjacent<br />

to Kazan will be in demand at all times, since this is an extensively developing<br />

direction in terms <strong>of</strong> access to transportation and infrastructure. The<br />

20<br />

average price <strong>of</strong> a land plot for individual construction in the boundaries <strong>of</strong><br />

Kazan ranges from RUR 600,000 to RUR 1 million.<br />

Apart from the proximity to the city, some locations are more prestigious<br />

than others, which is due to the deficiency <strong>of</strong> vacant land plots in these<br />

areas and good environmental image.<br />

4.1. MOniTOrinG Of undEVELOpEd<br />

LAnd pLOTS (LAndS<br />

Of inhABiTEd LOcALiTiES)<br />

THE REvIEw OF PRICES FOR UNDEvELOPED LAND PLOTS<br />

IS COMPILED BASED ON PRICES OF THE OFFERS PUBLISHED<br />

IN REAL ESTATE PERIODICALS AND FROM REAL ESTATE<br />

APPRAISERS. RUR ’ 000 PER SQUARE METRE<br />

Kazan<br />

Almetyevsk<br />

City (district) Location<br />

Naberezhnye Chelny,<br />

Nizhnekamsk<br />

Minimum<br />

value<br />

Maximum<br />

value<br />

Historic centre 8.0 35.0<br />

Traffic arteries 6.0 15.0<br />

Massive housing<br />

development areas<br />

2.5 12.0<br />

Industrial zone 1.5 3.5<br />

Central city area 1.4 12.0<br />

Massive housing<br />

development areas<br />

1.2 8.0<br />

Industrial zone 0.5 3.0<br />

Central city area 1.5 8.0<br />

Massive housing<br />

development areas<br />

1.1 6.0<br />

Industrial zone 0.2 0.5<br />

Verhneuslonsky District 0.3 2.3<br />

Vysokogorsky District 0.3 1.5<br />

Zelenodolsky District 0.4 3.5<br />

Laishevsky District 0.3 3.2<br />

Pestrechinsky District 0.3 2.0<br />

Rybno-Slobodsky District 0.25 0.8<br />

In pursuance to the Resolution <strong>of</strong> the Cabinet <strong>of</strong> Ministers <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> No.951 <strong>of</strong> December 31, 2008, the results <strong>of</strong> the new State<br />

cadastral valuation <strong>of</strong> the land plots in the lands <strong>of</strong> inhabited localities (except<br />

for Kazan) have been effective from January 01, 2009.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> enjoys the unique transport geographical position<br />

in the European part <strong>of</strong> Russia, its territory is crossed by key railways<br />

and waterways, highways and air routes providing transportation <strong>of</strong> goods<br />

and passengers in all directions.<br />

Such position is unique due to four available factors:<br />

• The shortest transcontinental railway in the West-East direction and<br />

the railway connecting large industrial cities <strong>of</strong> the Volga region in the<br />

Northwest-South direction;<br />

• Navigable waterways <strong>of</strong> the Russia’s main European rivers: the Volga<br />

and Kama, and the Belaya and Vyatka rivers, which provides water connection<br />

not only with the north-western and southern, but also with<br />

north-eastern and Urals industrial regions;<br />

• Federal motorways leading in three directions: West-East, West-Southeast,<br />

and Northwest-South;<br />

• Air routes to many destinations.<br />

The junction point <strong>of</strong> the said major transport routes is the Kazan transportation<br />

hub. The Kazan railway junction is connected with river cargo<br />

port which allows intermodal transports. The transportation system <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is composed <strong>of</strong> six types <strong>of</strong> transport (automotive,<br />

urban electric, inland water, air, pipeline, and railway) and road facilities.<br />

In 2009, freight-carrying vehicles <strong>of</strong> the republic’s enterprises <strong>of</strong> all<br />

kinds <strong>of</strong> activities (with allowance for small haulage contractors and entrepreneurs<br />

engaged in commercial cargo transportation), transported<br />

26,462,300 tonnes <strong>of</strong> cargo on a commercial basis (89.6% to the level <strong>of</strong><br />

2008), with cargo turnover amounting to 2,366.8 million tonne-kilometres<br />

(89.8%).<br />

During 2009 navigation, shipping enterprises transported 4,384,367<br />

tonnes <strong>of</strong> cargo, which is a 24.1% decrease y-o-y.<br />

In 2009, air freight enterprises transported 885 tonnes <strong>of</strong> cargo, including<br />

international ones, which is a 29.9% decrease y-o-y.<br />

In 2009, railway enterprises transported 86,981,300 tonnes <strong>of</strong> cargo,<br />

which is a 17.3% decrease y-o-y.<br />

In 2009, the enterprises (including small businesses) performing the au-<br />

5. TRanspoRT<br />

tomotive carriage <strong>of</strong> passengers along the general use routes transported<br />

some 183.6 million passengers on a commercial basis (94% <strong>of</strong> the figure for<br />

2008). The passenger turnover was 1,967.5 million passenger kilometres, a<br />

decrease by 17.3% y-o-y.<br />

As <strong>of</strong> January 1, 2009 there are 3,081 settlements in <strong>Tatarstan</strong>, <strong>of</strong> which<br />

1,638 have access roads with asphalt concrete pavement; 483 have intermediate<br />

type <strong>of</strong> pavement; and 960 settlements have earth access roads.<br />

A total <strong>of</strong> 11,700 kilometres <strong>of</strong> asphalt-paved roads, 2,000 kilometres <strong>of</strong><br />

macadam roads, and 1,000 kilometres <strong>of</strong> earth roads are operated in the<br />

republic. In 2008, RUR 2.5 billion was allocated to the provision <strong>of</strong> rural<br />

settlements with access roads. In 2009, some RUR 2 billion was allocated<br />

to this end.<br />

Transportation infrastructure improvements are stimulated by the development<br />

<strong>of</strong> Kama Industrial Hub, Complex <strong>of</strong> Refining and Petrochemical<br />

Plants under construction in Nizhnekamsk, and the Special Economic Zone<br />

Alabuga.<br />

The following projects are currently underway in the roads and transport<br />

system <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>:<br />

• Investment projects within the Western Europe-Western China international<br />

transport corridor:<br />

– Sviyaga Interregional Multimodal Logistics Centre;<br />

– Construction <strong>of</strong> Shali (М7) - Bavly (М5) toll highway for the development<br />

<strong>of</strong> new route for the Kazan-Orenburg federal motorway<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, with the length <strong>of</strong> 294 kilometres, to<br />

form a part <strong>of</strong> the St. Petersburg-Vologda-Kazan-Orenburg-Kazakhstan<br />

border expressway. The highway will be a section <strong>of</strong> the<br />

Europe-Western China international transport corridor in the territory<br />

<strong>of</strong> the Russian Federation.<br />

• Investment projects also being implemented:<br />

– Biek Tau Industrial Park;<br />

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6. infoRmaTion anD communicaTions<br />

– Q-Park Kazan Logistics Centre.<br />

• Innovation projects being implemented jointly with enterprises <strong>of</strong> oil,<br />

gas, and chemical industries:<br />

– Dorocell stabilising additive based on grass cellulose for the pro-<br />

6. INFORMATION AND COMMUNICATIONS<br />

The intensive and fruitful work <strong>of</strong> the infocomm sector <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> over the last 5 years allowed the companies in this sector<br />

to maintain their operational performance, financial stability, investment<br />

attractiveness, to continue the development <strong>of</strong> the telecommunication<br />

infrastructure, and to introduce information technologies into all spheres<br />

<strong>of</strong> life even in 2009, under the conditions <strong>of</strong> financial crisis. This is largely<br />

promoted by the high-quality digital infrastructure <strong>of</strong> communications created<br />

in <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

In 2009, the total gross income <strong>of</strong> RUR 28.749 billion was generated in<br />

the sector, which is 111.0% <strong>of</strong> the figure for 2008. The largest contributor to<br />

the sector’s gross income was cellular communications (48%).<br />

6.1. infOrMATiOn SuppOrT<br />

The Law <strong>of</strong> <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> No. 133-ZRT <strong>of</strong> December 27, 2005<br />

has approved the “Programme for Social and Economic Development <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> for 2005-2010”. This Programme comprises the<br />

Integrated Programme for Information Development in the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> (e-<strong>Tatarstan</strong> 2005-2010), in the framework <strong>of</strong> which a considerable<br />

amount <strong>of</strong> work has been done in recent years for the development <strong>of</strong><br />

infocomm infrastructure in the republic.<br />

22<br />

duction <strong>of</strong> stone mastic asphalt concretes;<br />

– SNPKh-DS-1 Bozsyz Yul liquid environmentally sound agent for<br />

winter de-icing <strong>of</strong> the republic’s highways.<br />

• Jointly with DuPont and Consolid AG, a work is underway on introducing<br />

advanced technologies for the modification <strong>of</strong> road bitumens<br />

with Elvaloy copolymers and Consolid system for strengthening local<br />

grounds when making transition pavements <strong>of</strong> access roads to rural<br />

settlements.<br />

Within the framework <strong>of</strong> preparations to the 27th World Summer Universiade<br />

2013 in Kazan it is planned:<br />

• To create a network <strong>of</strong> state-<strong>of</strong>-the-art bus service stations and bus terminals<br />

in Kazan for ensuring adequate passenger transportation over<br />

intercity and suburban bus routes, removing the routes <strong>of</strong> 190 intercity<br />

and suburban buses from city limits, and relieving pressure on streets<br />

and roads by 3%. The construction is projected in the Orenburgsky<br />

Trakt Street (near the <strong>Republic</strong>’s Clinical Hospital), Gorkovskoye Shosse<br />

Street (near Frunze Street), and Mamadyshsky Trakt Street (near Kosmonavtov<br />

Street);<br />

• To complete the construction <strong>of</strong> the first underground line in Kazan<br />

consisting <strong>of</strong> three sections and to acquire a rolling stock <strong>of</strong> 125 trams<br />

(including 66 high-speed trams) and 250 trolleybuses;<br />

• To carry out the reconstruction <strong>of</strong> flatworks, light-signal and energy<br />

saving facilities, and the passenger terminal <strong>of</strong> Kazan International<br />

Airport.<br />

Based on the results<br />

achieved by this programme,<br />

its new version was<br />

approved, the <strong>Republic</strong>’s Target<br />

Programme for Development<br />

and Use <strong>of</strong> information<br />

and Communications Technologies<br />

in the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> (e-<strong>Tatarstan</strong> 2008-<br />

2010). The main objectives <strong>of</strong><br />

this Programme are, through<br />

the large-scale application<br />

<strong>of</strong> infocomm technologies,<br />

to improve the quality <strong>of</strong> life<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, to enhance the effectiveness <strong>of</strong> the State and<br />

municipal administration in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, to improve the accessibility<br />

and quality <strong>of</strong> government services for people and businesses,<br />

to increase the openness <strong>of</strong> authorities, to ensure the economic growth<br />

and competitiveness <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, and to raise the living<br />

standards and budget revenues.<br />

The integrated project <strong>of</strong> the e-Government <strong>of</strong> <strong>Tatarstan</strong> became a key<br />

aspect in the wide application <strong>of</strong> innovations in the sphere <strong>of</strong> information<br />

and managerial technologies in the activities <strong>of</strong> the republic’s authorities.<br />

The e-Government <strong>of</strong> <strong>Tatarstan</strong> has been created with an aim <strong>of</strong> enhancing<br />

the effectiveness <strong>of</strong> public authorities, ensuring the disclosure <strong>of</strong> information<br />

about the activities <strong>of</strong> the Government and granting to citizens, businesses,<br />

public and other structures a continuous convenient access to the<br />

State services and government information resources.<br />

The following key achievements testify to the successful implementation<br />

<strong>of</strong> the e-<strong>Tatarstan</strong> programme:<br />

• Based on the republic’s digital communication infrastructure, the State<br />

Integrated System <strong>of</strong> Telecommunications (GIST) has been established<br />

thus making it possible to create a unified information space in the territory<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

• Beginning from 2006, the <strong>of</strong>ficial Portal <strong>of</strong> the Government <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> has been functioning successfully, incorporating<br />

standard sub-portals <strong>of</strong> ministries and agencies and websites <strong>of</strong> <strong>Tatarstan</strong><br />

municipalities, including virtual reception desks;<br />

• For people and businesses, State-to-Business and State-to-People portals<br />

have been created to provide full information about public services.<br />

• The interdepartmental system <strong>of</strong> electronic document circulation for<br />

public authorities with the use <strong>of</strong> digital signature technology provides<br />

the centralised record management for the authorities <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>;<br />

• The e-Commerce Information System and e-Store Centralized Government<br />

Procurement Information System have been created and are operated<br />

effectively;<br />

• No less effective is the video conferencing system operated for the<br />

needs <strong>of</strong> the Government <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, ministries and<br />

departments, local governments <strong>of</strong> the republic;<br />

• The information analysis system for monitoring the activities <strong>of</strong> budget-funded<br />

entities have been deployed;<br />

• The registry information system has been introduced to automate the<br />

activities <strong>of</strong> the <strong>of</strong>fices <strong>of</strong> vital records.<br />

The current primary objective facing the e-Government <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> is the development <strong>of</strong> the State services system in the electronic<br />

format.<br />

The issue <strong>of</strong> creating electronic services is also a key one in the Strategy<br />

and Programme <strong>of</strong> Information and Communication Technologies Development<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> (Intellectual <strong>Tatarstan</strong> 2020) being<br />

developed currently. Its mission: “Development <strong>of</strong> competitive and highly<br />

intellectual <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> at the international level through the<br />

effective implementation <strong>of</strong> State policies <strong>of</strong> introducing infocomm technologies<br />

(i-<strong>Tatarstan</strong>)”. Its objective: “Development <strong>of</strong> social and economic<br />

lead <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and improvement <strong>of</strong> the quality <strong>of</strong> life <strong>of</strong><br />

people through effective introduction <strong>of</strong> infocomm and innovative technologies<br />

(i-Lead)”.<br />

Priority problems in the short term:<br />

1. Development <strong>of</strong> a highly intellectual society (i-Society);<br />

2. Creation <strong>of</strong> effective government system (i-Government);<br />

3. Effective economy and business sector (i-Economy);<br />

4. Development <strong>of</strong> effective IT sector and industry (i-Industry);<br />

6. infoRmaTion anD communicaTions<br />

5. Creation <strong>of</strong> effective education system and training <strong>of</strong> highly-skilled<br />

workforce (i-Learning).<br />

In pursuance <strong>of</strong> the Decree <strong>of</strong> the President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

No.UP-320 <strong>of</strong> July 10, 2008, a cluster in the sphere <strong>of</strong> information technologies<br />

(IT cluster) is under development based on the republic’s enterprises<br />

and IT companies. This should promote the increase in revenues from IT<br />

sector to the republic’s budget, expand the range and improve the quality<br />

<strong>of</strong> IT services, and ensure the competitiveness <strong>of</strong> hi-tech and information<br />

technologies in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

The advantages <strong>of</strong> the cluster model are considered to be the consolidation<br />

<strong>of</strong> human resources and accumulated technology potential <strong>of</strong> participants,<br />

opportunities <strong>of</strong> exchanging technology-related expertise and information<br />

inside the cluster, development <strong>of</strong> partnership relations among<br />

participants, and the opportunity <strong>of</strong> utilising important elements <strong>of</strong> each<br />

other’s infrastructure by the participants. It is planned to use an outsourcing<br />

model in the work <strong>of</strong> the IT cluster.<br />

The technopark in the sphere <strong>of</strong> high technologies founded in the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> (IT Park) is intended to promote the development <strong>of</strong> the<br />

IT sector and IT industry <strong>of</strong> both the republic and the Russian Federation<br />

and to serve as a basis for the development <strong>of</strong> scientific and technology<br />

potential <strong>of</strong> Russia.<br />

The objective <strong>of</strong> the IT Park is to ensure the most favourable conditions<br />

for newly created or developing IT companies at the stages <strong>of</strong> development<br />

and introduction <strong>of</strong> new s<strong>of</strong>tware products into the market. This<br />

should encourage the development <strong>of</strong> domestic s<strong>of</strong>tware industry in the<br />

republic and become a catalyst <strong>of</strong> hi-tech developments and their intensive<br />

introduction into key industries <strong>of</strong> the economy with a view <strong>of</strong> enhancing<br />

the competitiveness <strong>of</strong> the republic in general.<br />

The IT Park project is designed to raise the investment appeal <strong>of</strong> <strong>Tatarstan</strong>,<br />

attract large investors and partners for increasing the global competitiveness<br />

<strong>of</strong> local commodity producers.<br />

6.2. TELEViSiOn And rAdiO<br />

BrOAdcASTinG<br />

The work on the development <strong>of</strong> television and radio broadcasting system<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> sustained through 2009, its primary tasks<br />

being the expansion <strong>of</strong> TV broadcasting in predominantly rural areas, renovation<br />

<strong>of</strong> the existing broadcasting network, and creation <strong>of</strong> preconditions<br />

for the development <strong>of</strong> digital broadcast TV in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

In accordance with the federal concept and federal target programme,<br />

the work was continued on the Long-Term Target Programme for Organisation<br />

<strong>of</strong> Digital Television and Radio Broadcasting in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

for 2009-2015. Since the corresponding federal target programme was<br />

approved at the end <strong>of</strong> the year, the work on the Programme and system<br />

project was not finalised and has been deferred to 2010.<br />

As <strong>of</strong> January 1, 2010 the installed capacity <strong>of</strong> cable TV networks was<br />

1,194,500 points. Community antenna and cable TV networks have been built<br />

in 15 cities <strong>of</strong> the republic. The total number <strong>of</strong> cable TV subscribers in the republic<br />

was 468,500 households in 2009, which is 39% <strong>of</strong> the installed capacity.<br />

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6. infoRmaTion anD communicaTions<br />

In 2009, networks <strong>of</strong> antenna TV reception were being reconstructed,<br />

which includes the upgrading <strong>of</strong> their infrastructure by installing multiservice<br />

cable networks with larger number <strong>of</strong> rendered services. The<br />

number <strong>of</strong> satellite TV users is estimated at 12% <strong>of</strong> the total number <strong>of</strong><br />

households.<br />

In 2009, the republic began the trial operation <strong>of</strong> IP-TV service (interactive<br />

digital TV) for subscribers connected to Internet via Ethernet Home<br />

Network. After completion <strong>of</strong> the trial operation stage, it is planned to<br />

expand the scope <strong>of</strong> IP-TV services to up to 100 TV channels, nVoD, VoD,<br />

Karaoke, Radio, and Time Shifted TV.<br />

The coverage by community antenna networks is 67% households.<br />

6.3. cOMMunicATiOnS<br />

<strong>Tatarstan</strong> was the first in Russia to completely<br />

switch over to 100% digital infrastructure and to<br />

the networks <strong>of</strong> the following generation (NGN).<br />

A number <strong>of</strong> important social and economic<br />

tasks have been solved in the republic:<br />

• Provision <strong>of</strong> the republic’s residents with telecommunications;<br />

• Elimination <strong>of</strong> “digital inequality” between<br />

urban and rural areas as regards the provision<br />

<strong>of</strong> communications and access to the<br />

Internet;<br />

• Provision <strong>of</strong> 100% access to universal telecomm<br />

services in each settlement <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>;<br />

• 3G and 4G standards have been introduced<br />

and are being developed;<br />

• Internet coverage continues to grow, already reaching 50%;<br />

• The sector is completely de-monopolised with operations being based<br />

on the public-private partnership.<br />

The subscribers’ base in the republic grew up to 7.161 million in 2009,<br />

including 1.116 million fixed-line subscribers and 6.043 million mobile subscribers.<br />

The average rate <strong>of</strong> the fixed-line telephone penetration in the republic<br />

is 31.3 phones per 100 persons, including 35.8 phones in urban areas (40.3<br />

phones in Kazan, which corresponds to the European level <strong>of</strong> development)<br />

and 18.3 phones in rural areas. The coverage with home telephones<br />

is 99.6%, while the mobile penetration increased to 160.5%.<br />

The major areas in the development <strong>of</strong> new services are as follows:<br />

• Providing every household with access to the broadband Internet at<br />

up to 1 Gbps;<br />

• Enhancing the throughput <strong>of</strong> the backbone data transmission network,<br />

including the same for rendering HDTV services and servicing<br />

the traffic <strong>of</strong> data processing centres;<br />

• Introduction <strong>of</strong> LTE technology (4.5G high-speed wireless access).<br />

• Development <strong>of</strong> mobile WiMAX, a 4G network technology;<br />

• Further work on the development <strong>of</strong> the digital infrastructure <strong>of</strong> In-<br />

24<br />

ternet broadband access with the use <strong>of</strong> high-speed wire and wireless<br />

technologies, development <strong>of</strong> 3G and 4G technologies, implementation<br />

<strong>of</strong> the projects on the introduction <strong>of</strong> Triple Play (IP-TV) services<br />

and “optic-fibre-to-home” projects;<br />

6.4. LOcAL, LOnG-diSTAncE,<br />

And inTErnATiOnAL<br />

TELEphOnE cOMMunicATiOnS<br />

The length <strong>of</strong> the local fibre-optical communication lines totalled over<br />

3900 kilometres. The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> boasts a strong, flexible telecommunication<br />

digital transport network, which allows it to ensure<br />

the introduction <strong>of</strong> the newest information technologies and all kinds <strong>of</strong><br />

present-day telecommunication services, as well as to provide high-quality<br />

services <strong>of</strong> international, long-distance and local telephony via automatic<br />

or recording application systems.<br />

In the territory <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, services <strong>of</strong> local telephony<br />

are provided to subscribers by three operators, OAO Tattelecom, OOO Teleset,<br />

and OAO TatAisNeft.<br />

Individuals, enterprises and organisations <strong>of</strong> <strong>Tatarstan</strong> make use <strong>of</strong> longdistance<br />

and international telephony either in the “pre-select” or in the “hot<br />

choice” modes. The residents <strong>of</strong> the republic is widely using long-distance<br />

and international connections via IP-telephony that allows long-distance<br />

and international calls at low rates and with high quality.<br />

6.5. dATA TrAnSMiSSiOn<br />

nETWOrKS, ThE inTErnET<br />

And nEW SErVicES<br />

The main achievement in 2009 was the growth in providing people with<br />

Internet broadband access to 50%.<br />

In <strong>Tatarstan</strong>, unique multiservice networks <strong>of</strong> data transmission have<br />

been created and are operated which cover all regional centres and allow<br />

corporate users to implement their infocomm projects <strong>of</strong> any degree <strong>of</strong><br />

complexity and with maximum efficiency. High-capacity data links with<br />

Gigabit Ethernet (GE) interfaces from 1 to 10 Gbps have been run to each<br />

city and district centre <strong>of</strong> the republic. Based on the multiservice data backbones,<br />

the corporate networks <strong>of</strong> public authorities, economic entities and<br />

financial business organisations are developing and a unified scientific and<br />

educational network <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is being formed.<br />

The total number <strong>of</strong> subscribers in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> having access<br />

to the Internet using all wire and wireless technologies is 1,617,000.<br />

The number <strong>of</strong> broadband Internet subscribers reached 653,000; the<br />

number <strong>of</strong> GPRS/EDGE users increased to 892,000 and 3G users, increased<br />

to 103,000.<br />

In the last three years, the market <strong>of</strong> Internet services is undergoing a demonopolisation.<br />

While in 2007 the majority <strong>of</strong> residents and organisations<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> had dial-up access to the Internet, now the subscribers<br />

prefer high-speed access, dedicated lines, and use unlimited tariff<br />

plans <strong>of</strong> service providers.<br />

7. TOURISM<br />

In recent years, the investment<br />

climate has essentially<br />

improved in the sphere <strong>of</strong><br />

tourism, with the number <strong>of</strong><br />

tourist attractions tending to<br />

rise and the flows <strong>of</strong> tourists<br />

and number <strong>of</strong> jobs in this industry<br />

growing increasingly.<br />

In <strong>Tatarstan</strong>, the <strong>Republic</strong>’s<br />

Target Programme for Tourism<br />

Sphere Development for<br />

2009-2011 is being implemented.<br />

As to the development <strong>of</strong><br />

the tourist industry in Russia,<br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

holds a lead in this field: over<br />

the last 5 years, the annual average<br />

growth rates <strong>of</strong> domestic<br />

tourist flows were 12%,<br />

and even in the crisis year <strong>of</strong><br />

2009 the domestic tourism grew by over 5%.<br />

In 2009, the tourist flow to the republic reached 977,000, with the value<br />

<strong>of</strong> tourist and health resort services (including hotel services) having increased<br />

to RUR 4,885 million. Tourist services in the republic are rendered<br />

by over 500 travel companies, including some 300 in Kazan.<br />

Building <strong>of</strong> hotels continues at a high pace. The republic currently has<br />

154 hotels with a total <strong>of</strong> 5,400 rooms, including 4-star and 5-star hotels.<br />

For tourists, <strong>Tatarstan</strong> is not only “the third capital <strong>of</strong> Russia” - the city <strong>of</strong><br />

Kazan with the Kazan Kremlin, a UNESCO World Heritage site and a symbol<br />

<strong>of</strong> combination <strong>of</strong> Muslim and Orthodox cultural traditions. This is also the<br />

6.6. pOSTAL SErVicE<br />

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25<br />

7. TouRism<br />

In 2009, postal service continues to implement new ICT-based projects:<br />

within the framework <strong>of</strong> the KiberPocht@ project, 73 shared access points<br />

to the Internet (a total <strong>of</strong> 120 workstations) were created; within the framework<br />

<strong>of</strong> the PochtaBank project jointly with Ak Bars Bank, a total <strong>of</strong> 450<br />

postal bank ATMs were installed to receive and dispense cash, to pay subsidies;<br />

a new project, “Remittances through Western Union”, was introduced;<br />

etc.<br />

In 2010, some new projects are scheduled for the introduction, such as<br />

provision <strong>of</strong> residents with public electronic services based on the multipurpose<br />

centres and post <strong>of</strong>fices using elements <strong>of</strong> e-Government <strong>of</strong><br />

<strong>Tatarstan</strong>, provision <strong>of</strong> people with medicines and further extension <strong>of</strong> the<br />

range <strong>of</strong> new infocomm services.<br />

site <strong>of</strong> Boulgar known in the Islamic world as a “North Mecca”, Khuzhalar<br />

Tavy pilgrimage destination in Bilyarsk, the Virgin Monastery <strong>of</strong> Raifa, the<br />

Sviyazhsk island town founded under the decree <strong>of</strong> Tsar Ivan Grozny, the<br />

millennial town <strong>of</strong> Yelabuga associated with life and work <strong>of</strong> Ivan Shishkin,<br />

Marina Tsvetaeva and Nadezhda Durova, and the city <strong>of</strong> Chistopol connected<br />

with the name <strong>of</strong> Boris Pasternak.<br />

With a view <strong>of</strong> creating conditions for the development and employment<br />

<strong>of</strong> new tourist resources, effective development <strong>of</strong> the territory, the Decree<br />

<strong>of</strong> President <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> Mintimer Shaimiev No.UP-408 <strong>of</strong><br />

July 25, 2008 established the Tourist-Recreation Park Kamskiye Polyany<br />

uniting five districts <strong>of</strong> the republic. This area is located in the geographical<br />

centre <strong>of</strong> <strong>Tatarstan</strong> and is characterised by favourable climatic and natural<br />

conditions and significant historic and cultural potential.


8. buDGeTaRy policy<br />

8. BUDGETARy POLICy<br />

The 2009 consolidated budget <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> totalled<br />

RUR 140.6 billion in revenue, which constitutes 104.2% <strong>of</strong> the approved<br />

allocations. The budget <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> mobilised a total <strong>of</strong><br />

RUR 117.1 billion, <strong>of</strong> which 67.9 billion were tax and non-tax revenue. The<br />

implementation <strong>of</strong> projected allocations <strong>of</strong> the revenue side <strong>of</strong> the <strong>Tatarstan</strong><br />

budget was 104.7%. Local budgets mobilised RUR 23.5 billion or<br />

101.9% from the approved allocations.<br />

The consolidated budget revenue, as in former years, was primarily<br />

based on individual income tax, pr<strong>of</strong>its tax, and corporate property tax.<br />

The individual income tax was collected in the consolidated budget<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in the amount <strong>of</strong> RUR 31.7 billion. The corporate<br />

pr<strong>of</strong>its tax amounting to RUR 24.6 billion was predominantly generated<br />

by oil production sector, power industry, transport and financial<br />

organisations. The corporate property tax was RUR 8.7 billion in total, its<br />

increase being largely due to the acquisition and renovation <strong>of</strong> production<br />

assets in such spheres <strong>of</strong> economic activities as mining operations,<br />

construction, and production and distribution <strong>of</strong> electric energy, gas,<br />

26<br />

and water. Transport tax totalled RUR 1.3 billion.<br />

The land tax, as one <strong>of</strong> the basic sources <strong>of</strong> revenue for local budgets,<br />

was collected in the consolidated budget <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in the<br />

amount <strong>of</strong> RUR 3.9 billion.<br />

The lump-sum taxes payable by small and medium-sized businesses<br />

to the consolidated budget <strong>of</strong> the republic totalled RUR 3.6 billion. With a<br />

view <strong>of</strong> expanding the sphere <strong>of</strong> SME activities in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>,<br />

increasing the interest <strong>of</strong> local governments in its development, a major<br />

proportion <strong>of</strong> lump-sum taxes is received by local budgets. In 2009, local<br />

budgets received 64% <strong>of</strong> lump-sum taxes.<br />

Planned expenses <strong>of</strong> the consolidated budget and the budget <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>, as well as local budgets, were drawn down to 98% in<br />

2009; cash disbursements <strong>of</strong> the consolidated budget totalled RUR 152.7<br />

billion; <strong>of</strong> the republic’s budget, RUR 123.7 billion; and <strong>of</strong> local budgets,<br />

RUR 29.0 billion. Within the year, inter-budget transfers were allocated from<br />

the budget <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> to local budgets in due time and in<br />

full to a total <strong>of</strong> RUR 26.1 billion.<br />

9. BANKING SySTEM, ACTIvITIES OF CREDIT INSTITUTIONS<br />

The year <strong>of</strong> 2009 was critical in overcoming<br />

the negative trends arisen as a result <strong>of</strong> the<br />

world financial crisis. Despite difficult conditions,<br />

the banking sector <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> succeeded in meeting the challenges<br />

<strong>of</strong> the crisis situation in the economy and maintaining<br />

the positions attained earlier in the market<br />

<strong>of</strong> banking services both in the Volga Federal<br />

District and in the Russian Federation.<br />

This was promoted by adequately scaled<br />

and timely actions undertaken by the Russian<br />

Government, the Central Bank <strong>of</strong> Russia and<br />

the National Bank <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

According to the estimate <strong>of</strong> the Russian Ministry<br />

<strong>of</strong> Regional Development, <strong>Tatarstan</strong> ranked<br />

among top eight regions <strong>of</strong> Russia that have<br />

developed the most efficient anti-crisis programmes.<br />

The banking community <strong>of</strong> the republic,<br />

jointly with State government bodies, has<br />

worked out a package <strong>of</strong> proposals aimed at<br />

preventing the consequences <strong>of</strong> the crisis and<br />

supporting the enterprises and their production<br />

plans, continuing lending, maintaining the<br />

workforce at large enterprises, and preserving<br />

small and medium-sized businesses.<br />

Own funds <strong>of</strong> the banks continue to be used as a mechanism for protecting<br />

the interests <strong>of</strong> creditors and investors, and even in such an uneasy<br />

situation <strong>Tatarstan</strong> banks persisted in increasing their capitals. The aggregate<br />

amount <strong>of</strong> own funds <strong>of</strong> the credit organisations in the republic grew<br />

almost to RUR 68 billion; over half <strong>of</strong> them (RUR 36.4 billion) is accounted<br />

for by Ak Bars Bank ranking 15th among the Russia’s largest banks in this<br />

indicator. The primary factor for growth in own funds <strong>of</strong> the banks in the<br />

republic was the increase in their authorised capitals by RUR 11.6 billion,<br />

with the highest growth recorded by Ak Bars Bank (by RUR 9.0 billion), Intekhbank<br />

(by RUR 1.4 billion), and Akibank (by RUR 1.0 billion).<br />

As to the total number <strong>of</strong> large banks with registered capital <strong>of</strong> over<br />

RUR 150 million, <strong>Tatarstan</strong> yields to Moscow only, sharing the 2nd place<br />

with St.-Petersburg. As <strong>of</strong> today, there are 19 such banks in the republic out<br />

<strong>of</strong> 26 independent credit institutions, including 12 banks with registered<br />

capital in the amount <strong>of</strong> no less than RUR 300 million (<strong>of</strong> which 7 banks<br />

have own capital over RUR 1.0 billion).<br />

In the total number <strong>of</strong> credit institutions, the republic still ranked 4th in<br />

Russia, yielding only to Moscow, St.-Petersburg and the <strong>Republic</strong> <strong>of</strong> Dagestan.<br />

Indicatively, the number <strong>of</strong> independent credit institutions in <strong>Tatarstan</strong><br />

did not change over 10 years, whereas in other regions <strong>of</strong> the Russian<br />

Federation the number <strong>of</strong> credit institutions reduced by 67 since September<br />

1, 2008 alone, including 8 credit institutions in the regions within the<br />

Volga Federal District.<br />

Local banks still prevail in the structure <strong>of</strong> <strong>Tatarstan</strong> banking sector<br />

(57%), considerably exceeding the average figure in the regions <strong>of</strong> the<br />

Volga Federal District (21%).<br />

At the same time, <strong>Tatarstan</strong> remains an attractive region for banking<br />

business: in 2009, another 2 branches <strong>of</strong> large Moscow banks started their<br />

operations in republic, the general number <strong>of</strong> branches <strong>of</strong> the banks from<br />

other regions totalling 20 at January 1, 2010. It is much higher than ten<br />

years earlier when only 9 such branches were operated in the republic.<br />

According to the Bank <strong>of</strong> Russia, <strong>Tatarstan</strong> ranks among regions with<br />

rather high level <strong>of</strong> payment system development. In the total number <strong>of</strong><br />

banking establishments (1,621 at January 1, 2010) <strong>Tatarstan</strong> ranks 2nd in<br />

Russia, yielding to Moscow only.<br />

The bank density ratio in the republic is higher than in other regions: in<br />

<strong>Tatarstan</strong>, there is an average <strong>of</strong> 2,400 persons per bank <strong>of</strong>fice (2,200 persons<br />

a year earlier), while in the regions <strong>of</strong> Russia (without <strong>Tatarstan</strong>) this<br />

ratio is 3,400 persons per bank <strong>of</strong>fice.<br />

The operations <strong>of</strong> the banking sector <strong>of</strong> <strong>Tatarstan</strong> are not limited to the<br />

boundaries <strong>of</strong> the region; at present there are 143 branches <strong>of</strong> republic’s<br />

credit institutions in different cities <strong>of</strong> Russia.<br />

According to a study conducted by the Bank <strong>of</strong> Russia, 81.3% <strong>of</strong> enterprises<br />

and organisations <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> consider banking<br />

services in the region freely available, and 80% <strong>of</strong> the enterprises prefer to<br />

use services <strong>of</strong> the local banks.<br />

The activities <strong>of</strong> <strong>Tatarstan</strong> banks can be judged by the fact that virtually<br />

all <strong>of</strong> them (except for one) have closed the year with pr<strong>of</strong>its and, though<br />

9. banKinG sysTem, acTiviTies <strong>of</strong> cReDiT insTiTuTions<br />

its aggregate amount is lesser than in the last year, <strong>Tatarstan</strong> still ranks 2nd<br />

in Russia in this figure, yielding to Moscow only.<br />

While the instability <strong>of</strong> economy has made its adjustments in the activities<br />

<strong>of</strong> the credit institutions working in <strong>Tatarstan</strong>, 2009 basic figures exceeded<br />

the pre-crisis level. The republic still holds a lead keeps both in the<br />

Volga Federal District and in Russia in the aggregate amounts <strong>of</strong> own and<br />

borrowed funds, deposits, assets, and credit investments into economy.<br />

The resources raised by credit institutions totalled RUR 452.7 billion,<br />

having exceeded the 2008 figure by RUR 50.8 billion or 12.7%. Household<br />

deposits in the credit institutions totalled RUR 151.9 billion, an increase <strong>of</strong><br />

RUR 34.5 billion (up 29.3%) versus last year. Funds at legal entity accounts in<br />

the credit institutions was RUR 201.7 billion, an increase by RUR 29.8 billion<br />

or 17.3% versus last year. A total <strong>of</strong> RUR 437.7 billion <strong>of</strong> credits and other<br />

loans have been granted, which represents a growth by RUR 8.8 billion (up<br />

2.0%) over the last year. Long-term credits are still the largest contributor to<br />

the total amount <strong>of</strong> credits (64%); they grew in the preceding year by 7.8%<br />

to RUR 279.9 billion. Credits to economy totalled RUR 330.1 billion (75.4%<br />

<strong>of</strong> the total amount), which is higher by RUR 12.3 billion (up 3.9%) over<br />

the last year. Credits to households totalled RUR 67.8 billion (15.5% <strong>of</strong> the<br />

total amount), which is lower by RUR 17.4 billion (down 20.4%) compared<br />

to 2008.<br />

The banks <strong>of</strong> <strong>Tatarstan</strong> are at all times on the list <strong>of</strong> the Russia’s largest<br />

banks in the aggregate amount <strong>of</strong> their own funds (capital) and also in the<br />

amount <strong>of</strong> assets (Ak Bars Bank, Tatfondbank, Devon-Credit, Energobank,<br />

Spurt, BTA-Kazan, Kazansky, Akibank). Moreover, Ak Bars Bank is repeatedly<br />

found on the list <strong>of</strong> top 30 banks in the amounts <strong>of</strong> earned pr<strong>of</strong>it, deposits<br />

received from natural persons, interbank credits, credits to non-state organisations<br />

and private persons, as well as on the list <strong>of</strong> top 30 investor<br />

banks. Three banks in the republic (Tatfondbank, Devon-Credit, and Ak Bars<br />

Bank) were among the Russia’s 100 most reliable large banks.<br />

The republic was one <strong>of</strong> the first to connect to the Bank <strong>of</strong> Russia Real-Time<br />

Gross Settlement System (BESP System) which supports the real<br />

time payments. In the accounting year, new participants connected to<br />

the System, which resulted in 1632 electronic payments in the amount <strong>of</strong><br />

RUR 410.2 billion (compared to 215 payments to a total <strong>of</strong> RUR 59.8 billion<br />

during the previous year).<br />

Once the newest banking technologies develop, the sphere <strong>of</strong> services<br />

rendered by republic’s banks to their clients also expands. For instance, the<br />

number <strong>of</strong> remote accounts grew over the year by 1.4 times representing<br />

today 13.5% <strong>of</strong> the total number <strong>of</strong> accounts (compared to 10.6% in the<br />

previous year). Services granting access to accounts through the Internet<br />

or mobile phones are also increasingly in demand; the number <strong>of</strong> such accounts<br />

grew over the year by the same 1.4 times. The majority <strong>of</strong> payment<br />

transactions in 2009 were made through electronic payments systems,<br />

with their contribution having grown during the year from 88.9% to 90.8%.<br />

In summary, <strong>Tatarstan</strong> boasts a developed financial system being for any<br />

region a visiting card for potential investors and one <strong>of</strong> the factors for<br />

successful social and economic development.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

27


10. TaRiffs<br />

10. TARIFFS 11. EMPLOyMENT<br />

POwER SUPPLy RATES FOR THE ELECTRIC ENERGy SUPPLIED<br />

By OAO TATENERGOSByT TO CONSUMERS OF THE REPUBLIC<br />

OF TATARSTAN IN 2010<br />

Indicator<br />

(customer groups broken<br />

down by tariff rates and<br />

differentiated by time<br />

zones)<br />

28<br />

Unit <strong>of</strong><br />

measurement<br />

Voltage ranges<br />

HV MV-I MV-II LV<br />

Other customers (tariffs indicated are without VAT)<br />

Single-rate tariff differentiated by a number <strong>of</strong> hours <strong>of</strong> using the contracted power<br />

from 7,001 hours and<br />

higher<br />

RUR /MWh 1,557.90 1,816.20 2,766.20 3,852.60<br />

from 6,001 to 7,000 hours RUR /MWh 1,674.90 1,968.70 3,053.70 4,102.80<br />

from 5,001 to 6,000 hours RUR /MWh 1,834.30 2,176.60 3,157.20 4,106.40<br />

less than 5,000 hours RUR /MWh 1,834.80 2,382.00 3,160.80 4,110.00<br />

Double-rate tariff<br />

- incl. demand charge<br />

RUR /<br />

MWmonth<br />

х х х х<br />

- incl. energy rate RUR /MWh х х х х<br />

Tariffs differentiated by three time zones<br />

- night zone RUR /MWh 1,301.89 1,594.29 2,830.69 3,115.09<br />

Tariffs differentiated by two time zones<br />

- night zone RUR /MWh 1,301.89 1,594.29 2,830.69 3,115.09<br />

- day zone RUR /MWh 1,641.00 1,933.40 3,169.80 3,454.20<br />

Organisations rendering electric power transmission services which purchase<br />

energy to compensate for the process consumption (losses) in electricity grids<br />

(tariffs indicated are without VAT)<br />

Single-rate tariff RUR /MWh 1,044.02 1,044.02 1,044.02 1,044.02<br />

When establishing own generating facilities, the enterprises should have<br />

an approval <strong>of</strong> the kind <strong>of</strong> fuel to be used.<br />

GAS SUPPLy<br />

Natural gas to consumers in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is supplied by<br />

ZAO Tatgazinvest, a regional specialised gas selling enterprise carrying out<br />

the functions <strong>of</strong> an authorised operator <strong>of</strong> the Government <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>, and OOO Mezhregiongaz (OAO Gazprom) purchasing natural<br />

gas, selling it to consumers based on contracts, and ensuring the payment<br />

discipline.<br />

GAS SUPPLy RATES: RUR /’000 CUBIC METRES (wITHOUT vAT)<br />

Orders <strong>of</strong> the Federal Tariff Service:<br />

No. 440-e/21 <strong>of</strong> December 18, 2009;<br />

No. 540-e/19 <strong>of</strong> December 24, 2009.<br />

Resolution <strong>of</strong> the <strong>Tatarstan</strong> Committee for Tariffs<br />

No. 4-3/e <strong>of</strong> December 4, 2009<br />

Effective date<br />

starting from<br />

January 1,<br />

2010<br />

Wholesale price<br />

for customers<br />

in <strong>Tatarstan</strong><br />

wATER SUPPLy<br />

Water to the republic’s inhabited localities is supplied through centralised<br />

and decentralised systems operated by state-run enterprises GP Vodokanal,<br />

GUP RPO Tatselzhilkomkhoz, municipal unitary enterprises (MUP<br />

Vodokanal Kazan, ZAO Chelny-Vodokanal) and eligible large city-forming<br />

enterprises, such as OAO Tatneft, OAO Kazanorgsintez, OOO Tattransgaz,<br />

etc.<br />

The centralised water supply systems are operated in the cities and<br />

towns <strong>of</strong> Kazan, Naberezhnye Chelny, Yelabuga, Chistopol, Aznakayevo,<br />

Zelenodolsk, Almetyevsk, Leninogorsk, Bugulma and several rural settlements.<br />

Public utility companies supplying water:<br />

MUP Vodokanal Kazan, ZAO Chelny-Vodokanal; ZAO Voda Prikamiya;<br />

OAO Zelenodolsk-Vodokanal; OAO Urussu-Vodokanal; OAO Almetyevsk-<br />

Vodokanal; OAO Bugulma-Vodokanal; OAO Buinsk-Vodokanal; OOO Zainsk-Vodokanal;<br />

OAO Tetuyshi-Vodokanal; OOO Vodokanal Leninogorsk;<br />

OAO Nurlat-Vodokanal; OAO Chistopol-Vodokanal; OAO Alekseyevsk-Vodokanal;<br />

OAO Mamadyshsky Vodokanal; GP Mendeleyevsk-Vodokanal; and<br />

OAO Bavly-Vodokanal.<br />

over 500 million<br />

cubic metres<br />

from 100 to<br />

500 inclusive<br />

End price for gas (by consumer groups)<br />

from 10 to<br />

100 inclusive<br />

from 1 to 10 from 0.1 to 1 from 0.01<br />

inclusive inclusive inclusive<br />

to 0.01<br />

inclusive<br />

2,364.0 2,676.45 2,750.33 2,912.11 3,187.39 3,189.21 3,264.6 3,272.08<br />

12. ATTRACTION OF INvESTMENT<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is one <strong>of</strong> the most investment favourable regions<br />

<strong>of</strong> the Russian Federation, which is ensured by optimum combination<br />

<strong>of</strong> high investment potential and low investment risk. This is confirmed<br />

by international rating agencies.<br />

In 2010, Fitch confirmed the long-term and short-term credit rating <strong>of</strong><br />

<strong>Tatarstan</strong> in foreign currency at BBB- and F3 (stable outlook), respectively;<br />

the short-term rating at the national scale was confirmed at the level <strong>of</strong><br />

AA+ (rus).<br />

According to Expert RA, a Russian rating agency, <strong>Tatarstan</strong> in 2008-2009<br />

has been one <strong>of</strong> the “supporter regional leaders” in the general rating <strong>of</strong><br />

Russian regions holding the 11th position among the 83 constituent entities<br />

<strong>of</strong> the Russian Federation and ranking 2nd in the Volga Federal District<br />

in this indicator yielding to the <strong>Republic</strong> <strong>of</strong> Bashkortostan.<br />

In 2008-2009, <strong>Tatarstan</strong> ranked 12th in the Russian Federation in the investment<br />

risk and 7th in the investment potential. Within the Volga Federal<br />

District, the republic is one <strong>of</strong> the most “safe” regions for foreign investors.<br />

This is largely promoted by the creation <strong>of</strong> the investor-friendly regulatory<br />

and legal environment, political stability, and economic growth.<br />

The economy <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> received a total <strong>of</strong> US$2,240.3<br />

million <strong>of</strong> foreign investment in 2009, with direct investment accounting<br />

for 5.1% (US$113.3 million) <strong>of</strong> the total amount <strong>of</strong> investment received, and<br />

other investment accounting for 94.9% (US$2,126.9 million). The percentage<br />

<strong>of</strong> portfolio foreign investment was insignificant.<br />

The structure <strong>of</strong> foreign investment received in the republic in 2009<br />

broken down by economic activities was as follows: 77.79% (US$1,742.3<br />

million) in real estate activities, 18.36% (US$411.3 million) in mining operations,<br />

3.31% (US$74.2 million) in manufacturing activities, and 0.54%<br />

(US$12.2 million) in other activities.<br />

In 2009, the main investment contributors were Luxembourg (51.1% <strong>of</strong><br />

the total raised foreign capital), France (24.2%), Germany (12.9%), Nether-<br />

11. employmenT<br />

The workforce potential <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in 2009 was estimated<br />

at 1,995,710 on the average (53% <strong>of</strong> the total population in the<br />

republic), <strong>of</strong> which 1,826,710 (91.5%) <strong>of</strong> economically active population<br />

was employed in the economy and 169,010 (8.5%) were without work<br />

but actively seeking employment (in accordance with the methodology<br />

<strong>of</strong> the International Labour Organisation they are treated as unemployed).<br />

In January to December 2009, a total <strong>of</strong> 1,346,300 people were working<br />

by hire in all kinds <strong>of</strong> enterprises and organisations. Over 510,000 were employed<br />

in small businesses; <strong>of</strong> these, 294,100 were employees <strong>of</strong> small and<br />

micro enterprises, 14,600 were employed in peasants’ (farmers’) establishments.<br />

Over 264,500 people were working in private households producing<br />

goods and services for sales without being registered with enterprises<br />

(organisations).<br />

lands (6.7%), Cyprus (2.0%), Panama (1.3%), United Kingdom (0.8%), USA<br />

(0.5%), and Bulgaria (0.4%). Investments were also raised from Sweden,<br />

Switzerland, Turkey, Italy, Estonia, Hungary, Belarus, UAE, China, Azerbaijan,<br />

Kazakhstan, and Lithuania.<br />

In general, the economy <strong>of</strong> <strong>Tatarstan</strong> accumulated US$5,843.1 million <strong>of</strong><br />

foreign investment as <strong>of</strong> 1 January 2010.<br />

INTERNATIONAL CREDIT RATINGS OF THE REPUBLIC OF TATARSTAN<br />

IN 2003-2009<br />

2003 2004 2005 2006 2007 2008 2009<br />

Moody’s Ba3 Ba1 Ba1 Ba1 Ba1 Ba1 -<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

29<br />

Standard<br />

& Poor’s<br />

B-<br />

stable<br />

B-<br />

positive<br />

B<br />

positive<br />

BB-<br />

stable<br />

BB-<br />

positive<br />

BB<br />

positive<br />

BB<br />

stable*<br />

Fitch - - BB BB BB+ BBB- BBB-<br />

* Rating withdrawn from 01.06.2009


13. special economic Zone in yelabuGa<br />

13. SPECIAL ECONOMIC ZONE IN yELABUGA 14. INNOvATION ACTIvITIES<br />

The Special Economic<br />

Zone <strong>of</strong> Industrial Production<br />

Type Alabuga is<br />

located in the territory <strong>of</strong><br />

the Yelabuzhsky District <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>,<br />

25 kilometres away from<br />

Naberezhnye Chelny and<br />

40 kilometres away from<br />

Nizhnekamsk. There are<br />

two SEZs <strong>of</strong> industrial production<br />

type in Russia, the<br />

SEZIPT Alabuga being the<br />

largest with an area <strong>of</strong> 20<br />

square kilometres.<br />

The territory <strong>of</strong> SEZIPT<br />

Alabuga is divided into a certain number <strong>of</strong> land plots, or modules. The area<br />

<strong>of</strong> the module can be 5, 10, 20 or more hectares. All necessary communications<br />

are brought to each module: motorways, electricity, heating network,<br />

gas, water, sewage, high-speed communication lines, etc., and a resident<br />

receives the junctions <strong>of</strong> these utilities near its land plot.<br />

One <strong>of</strong> the best advantages <strong>of</strong> the SEZIPT is that the residents are guaranteed<br />

considerable tax privileges and steady rules <strong>of</strong> business for the entire<br />

period <strong>of</strong> existence <strong>of</strong> the Zone, i.e. for 20 years.<br />

Residents are granted a number <strong>of</strong> preferences:<br />

• Free customs area treatment, which means that foreign equipment is<br />

installed and used within the SEZIPT without<br />

payment <strong>of</strong> customs duties and VAT.<br />

• They shall not pay export duties for their products.<br />

• They shall be exempted from the property and<br />

land taxes.<br />

In order to ensure the most favourable treatment<br />

and to cut bureaucratic expenses, the SEZIPT<br />

Alabuga employs a “single window” approach. The<br />

customer service area located in the SEZIPT business<br />

centre hosts <strong>of</strong>fices <strong>of</strong> 16 State regulatory<br />

authorities. Residents <strong>of</strong> the SEZIPT Alabuga enjoy<br />

the opportunity <strong>of</strong> solving all routine problems <strong>of</strong><br />

interaction with governmental authorities within<br />

SEZIPT borders. For the first time in Russia this kind<br />

<strong>of</strong> system is being arranged in the territory <strong>of</strong> an industrial<br />

site.<br />

As <strong>of</strong> today, residents registered in the SEZIPT Alabuga<br />

are implementing large-scale projects in the<br />

fields <strong>of</strong> automotive industry, petrochemical sector,<br />

construction industry, and engineering equipment.<br />

In addition to the already registered residents, there<br />

30<br />

are a number <strong>of</strong> companies engaged in the production <strong>of</strong> automotive components,<br />

mechanical engineering, woodworking, chemistry and other sectors<br />

who have plans to place their production facilities in this territory in<br />

the near future.<br />

As <strong>of</strong> January 1, 2010, the following residents have been registered in<br />

the SEZIPT Alabuga:<br />

• OOO Sollers-Yelabuga (launching the Fiat Ducato vans production);<br />

• ZAO Severstal Auto-Isuzu (production <strong>of</strong> trucks);<br />

• ZAO Polimatiz (production <strong>of</strong> nonwoven Spanbond and Spanmelt materials);<br />

• OOO Rockwool-Volga (production <strong>of</strong> mineral wool);<br />

• ZAO Engineering Equipment Plant (production <strong>of</strong> heat pumps and elements<br />

<strong>of</strong> climatic control systems);<br />

• OOO Septal (production <strong>of</strong> equipment for local and small sewage systems);<br />

• OOO P-D Tatneft-Alabuga Steklovolokno (production <strong>of</strong> fibreglass);<br />

• OOO Air Liquide Alabuga (production <strong>of</strong> technical gases: liquid oxygen,<br />

liquid nitrogen, gaseous oxygen);<br />

• OOO Akulchev-Alabuga (launching the confectionery and bakery production);<br />

• Kastamonu Entegre (launching the MDF and particle board production);<br />

• ZAO Trakaya Glass Rus (building the plant for production <strong>of</strong> float glass,<br />

automotive glass and mirrors);<br />

At December 1, 2009, capital investments <strong>of</strong> the SEZIPT residents totalled<br />

RUR 1.18 billion (some US$ 37 million).<br />

seZipT iz located near yelabuga, yelabuga District <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, 25 km away from naberezhnye<br />

chelny, 40 km away from nizhnekamsk, and 215 km away from Kazan (the capital <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>)<br />

Total seZipT area is 20 square km<br />

The key aspect in the creation <strong>of</strong> the competitive national economy is<br />

the innovation approach, that is, the changes in the economy management<br />

formats and methods, introduction <strong>of</strong> new, innovative technologies<br />

into production, and the creation <strong>of</strong> the system <strong>of</strong> innovation education.<br />

Starting in 2005, the <strong>Republic</strong> is implementing a Programme for Social<br />

and Economic Development which is aimed at the transition from the raw<br />

material-based economy to the economy <strong>of</strong> innovation.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> concentrates a considerable industrial and<br />

scientific potential in over 90 institutions <strong>of</strong> higher education and some<br />

100 scientific research institutions and design bureaus, the Academy <strong>of</strong> Sciences<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, and the Kazan Scientific Centre <strong>of</strong> the<br />

Russian Academy <strong>of</strong> Sciences uniting a number <strong>of</strong> academic institutions <strong>of</strong><br />

national importance.<br />

The proportion <strong>of</strong> active innovation enterprises in <strong>Tatarstan</strong> is higher<br />

than the Russia’s average (12.5% in <strong>Tatarstan</strong> versus 9.0% <strong>of</strong> Russia’s average),<br />

and the republic is quite high in this list, ranking fourth among the<br />

constituent entities <strong>of</strong> the Russian Federation.<br />

Within the framework <strong>of</strong> the Programme for Innovation Activity Development<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, a network <strong>of</strong> technoparks is being created<br />

in the republic in 2 basic areas: commercialisation <strong>of</strong> scientific developments<br />

and innovation development <strong>of</strong> industrial production.<br />

To date, <strong>Tatarstan</strong> has created a Special Economic Zone, technoparks,<br />

industrial parks, a technopolis, and business incubators.<br />

In 2009, a technopark in the sphere <strong>of</strong> high technologies was opened –<br />

the IT-Park, with a mission <strong>of</strong> ensuring the accelerated innovation development<br />

<strong>of</strong> high-tech sectors <strong>of</strong> economy and production <strong>of</strong> new knowledgeintensive<br />

products based on the scientific, educational, and industrial<br />

potential <strong>of</strong> the republic.<br />

With an aim <strong>of</strong> accumulating investment resources and focusing them on<br />

14. innovaTion acTiviTies<br />

the implementation <strong>of</strong> innovative<br />

projects, the republic<br />

established a state-run noncommercial<br />

organisation,<br />

Investment & Venture Fund<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>.<br />

For attracting long term investments<br />

to major projects<br />

in <strong>Tatarstan</strong> by means <strong>of</strong> investment<br />

risks mitigation, a<br />

state-run non-commercial<br />

Stabilisation Pledge & Insurance<br />

Fund <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> was established in<br />

the republic.<br />

Active integration <strong>of</strong> science<br />

and business, introduction<br />

<strong>of</strong> the newest scientific<br />

achievements into the industrial<br />

production is an indicator<br />

<strong>of</strong> efficient national innovation<br />

system, which means<br />

the successful economic development. In this respect, <strong>Tatarstan</strong> is a good<br />

strategic location to create and introduce high-tech manufacturing facilities,<br />

including those with the participation <strong>of</strong> foreign capital.<br />

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15. foReiGn economic anD inTeRReGional acTiviTies<br />

15. FOREIGN ECONOMIC AND INTERREGIONAL ACTIvITIES<br />

15.1. BASic indicATOrS<br />

Of fOrEiGn EcOnOMic<br />

AcTiViTiES<br />

Trade and economic relations <strong>of</strong> <strong>Tatarstan</strong> with foreign countries and<br />

regions <strong>of</strong> the Russian Federation are <strong>of</strong> great importance for its economy.<br />

Noteworthy is a wide range <strong>of</strong> republic’s international ties. Their scope is<br />

considerably widened, geography expanded, and content became richer.<br />

Over the recent years (before the global financial and economic crisis),<br />

the foreign trade turnover <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> developed at a rapid<br />

pace, with the annual average growth rates <strong>of</strong> some 35% in 2005-2008.<br />

In 2009, against the background <strong>of</strong> adverse external factors – slowdown<br />

<strong>of</strong> the world economy and the global market slump – the foreign trade <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> recorded a decrease <strong>of</strong> its basic figures. According<br />

to the <strong>Tatarstan</strong> Committee for Statistics, the foreign trade turnover <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in 2009 totalled US$ 13.45 billion (with exports<br />

<strong>of</strong> some US$ 11.8 billion and imports <strong>of</strong> US$ 1.7 billion), which is lower by<br />

37% than the 2008 FTT.<br />

In 2010, owing to the forecasted gradual recovery from the global crisis,<br />

the basic indicators <strong>of</strong> the economic development <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

(including the indicators <strong>of</strong> foreign trade activities) are expected to<br />

grow as a result a number <strong>of</strong> anti-crisis measures, global economic revival,<br />

and implementation <strong>of</strong> local companies’ investment programmes.<br />

The balance <strong>of</strong> <strong>Tatarstan</strong> foreign trade was traditionally positive with<br />

US$ 10 billion (a decrease by 35.3% or US$ 5.5 billion y-o-y).<br />

The export/import coverage ratio was 8.4 (for reference: in 2008 it was<br />

6.3).<br />

32<br />

BASIC INDICATORS OF FOREIGN TRADE TURNOvER OF THE<br />

REPUBLIC OF TATARSTAN, US$ MILLION<br />

2002 2003 2004 2005 2006 2007 2008 2009<br />

FTT 3,649.4 4,709.9 6,452.5 10,083.4 12,465.9 15,279.2 21,373.4 13,491.6<br />

Exports from<br />

<strong>Tatarstan</strong><br />

3,274.4 4,220.4 5,871.7 9,373.2 11,367.0 13,502.9 18,445.8 11,748.6<br />

Percent <strong>of</strong><br />

exports to FTT<br />

89.7% 89.6% 91.0% 93.0% 91.2% 88.4% 86.3% 87.1%<br />

Imports to<br />

<strong>Tatarstan</strong><br />

Percent <strong>of</strong><br />

375.0 489.5 580.8 710.2 1,098.9 1,776.3 2927.6 1,743.0<br />

imports to<br />

FTT<br />

10.3% 10.4% 9.0% 7.0% 8.8% 11.6% 13.7% 12.9%<br />

Balance<br />

Percent <strong>of</strong><br />

2,899.4 3730.9 5,290.9 8,663.0 10,268.1 11,726.6 15,518.2 10,005.6<br />

balance to<br />

FTT<br />

79.4% 79.2% 82.0% 85.9% 82.4% 76.7% 72.6% 74.2%<br />

Export/import<br />

coverage ratio<br />

8.7 8.6 10.1 13.2 10.3 7.6 6.3 6.7<br />

Over the last eight years, the contribution <strong>of</strong> exports to the foreign trade<br />

turnover <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> constituted 90±3% (in 2009, some<br />

87.1%), while <strong>of</strong> imports it was 10±3% (in 2009, some 12.9%).<br />

FOREIGN TRADE TURNOvER OF THE REPUBLIC OF TATARSTAN ExPORTS FROM THE REPUBLIC OF TATARSTAN<br />

Despite the decrease in the monetary value <strong>of</strong> crude oil, its contribution<br />

to the republic’s exports remains rather high. In the 2009 structure <strong>of</strong> exports,<br />

crude oil accounted for 64.6% (compared to 66% in 2008).<br />

In 2009, the contribution <strong>of</strong> oil products grew to 15% (compared to<br />

14.8% in 2008); plastics and plastic products, to 3.3% (1.7%); tyres, to 1.2%<br />

(0.9%); and synthetic rubber, to 5.6% (5.4%).<br />

The contribution <strong>of</strong> wood and wood products remained constant with<br />

0.2%, as well as that <strong>of</strong> non-ferrous metals with 0.1%, while the contribution<br />

<strong>of</strong> machines and equipment dropped to 6.2% (from 6.6%) and cyclic<br />

hydrocarbons, to 0.3% (from 0.9%).<br />

STRUCTURE OF TATARSTAN ExPORTS IN 2009<br />

TATARSTAN ExPORTS By COUNTRIES IN 2009<br />

In 2009, the value <strong>of</strong> exports from the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> totalled some<br />

US$ 11.8 billion, representing a 36.3% decrease versus last year. Exports to<br />

the CIS countries decreased by 26.7% amounting to over US$ 1.7 billion; to<br />

the non-CIS countries, they dropped by 37.7% amounting to US$ 10 billion.<br />

The contribution <strong>of</strong> the CIS countries to the republic’s exports was 14.8%<br />

in 2009 (12.9% in 2008), <strong>of</strong> the non-CIS countries, 85.2% (87.1% in 2008).<br />

Major countries consuming republic’s exports in 2009 were Italy (13.5%),<br />

15. foReiGn economic anD inTeRReGional acTiviTies<br />

Turkey (13.1%), Poland (11.5%), the Netherlands (8.1%), Belarus (5.9%), and<br />

Ukraine (4.5%).<br />

In the last three years, the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is still among top five<br />

Russia’s regions in the volumes <strong>of</strong> exports and currently holds the lead in<br />

the Volga Federal District.<br />

Imports to <strong>Tatarstan</strong> play a considerably smaller role in the foreign trade<br />

<strong>of</strong> the republic than exports from it. At the same time, a persistent growth<br />

<strong>of</strong> the republic’s imports was recorded in recent years (before 2009). Under<br />

the conditions <strong>of</strong> the global economic crisis, imports in 2009 decreased by<br />

US$ 1,221.5 million compared to 2008 (down 41.7%) amounting to US$ 1.7<br />

billion.<br />

IMPORTS TO THE REPUBLIC OF TATARSTAN<br />

Imports from the non-CIS countries dropped by 41.8% to the amount<br />

<strong>of</strong> US$ 1,407.8 million; imports from the CIS countries decreased by 34%<br />

to the amount <strong>of</strong> US$ 335.3 million. The contribution <strong>of</strong> the CIS countries<br />

to imports increased to 19.2% (compared to 17.3% in 2008), while imports<br />

from the non-CIS countries decreased to 80.8% (from 82.7%).<br />

TATARSTAN IMPORTS By COUNTRIES IN 2009<br />

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15. foReiGn economic anD inTeRReGional acTiviTies<br />

Five major countries importing goods to the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> accounted<br />

for over half <strong>of</strong> the imports (Germany, 23.4% <strong>of</strong> the republic’s imports;<br />

Italy, 11.3%; Ukraine, 7.2%; Belarus, 7.1%; and Belgium, 6.6%).<br />

STRUCTURE OF TATARSTAN IMPORTS IN 2009<br />

The commodity structure <strong>of</strong> imports to the republic was dominated by<br />

machines and equipment (75.1%). Petrochemical products (plastics, products<br />

<strong>of</strong> organic chemistry) held the second place with 6.4%. Metals and<br />

metal products come third with 1.8%.<br />

In terms <strong>of</strong> imports, the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> ranks 15th among the regions<br />

<strong>of</strong> the Russian Federation and 2nd among the regions <strong>of</strong> the Volga<br />

Federal District yielding to Nizhny Novgorod Region.<br />

ExPORT PROMOTION<br />

One <strong>of</strong> the major areas in the implementation <strong>of</strong> the state policies in the<br />

sphere <strong>of</strong> foreign trade activities is the support <strong>of</strong> export-oriented manufacturers<br />

which make products with high degree <strong>of</strong> processing that are<br />

competitive not only in the domestic Russian market, but outside <strong>of</strong> Russia<br />

as well.<br />

Since 2005, the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> takes an active part in the federal<br />

programmes <strong>of</strong> financial support to exporting enterprises. For instance, in<br />

pursuance <strong>of</strong> the Resolution <strong>of</strong> the Government <strong>of</strong> the Russian Federation<br />

No.357 <strong>of</strong> June 6, 2005 “On Approving the Rules <strong>of</strong> Reimbursement from<br />

Federal Budget to Russian Exporters <strong>of</strong> Industrial Products <strong>of</strong> a Part <strong>of</strong> Expenses<br />

Towards Payment <strong>of</strong> Interests on Credits Received in Russian Credit<br />

Organisations” the republic’s export-oriented enterprises were paid over<br />

RUR 256 million in 2009.<br />

At the regional level, a support is also rendered to republic’s exportoriented<br />

manufacturers through involvement <strong>of</strong> the republic’s enterprises<br />

in the events held with an aim <strong>of</strong> developing trade and economic cooperation<br />

(trade and economic missions, business forums, round table discussions,<br />

international conferences, visits <strong>of</strong> <strong>Tatarstan</strong> delegations to the<br />

CIS and non-CIS countries). Furthermore, the enterprises participate in the<br />

34<br />

exhibitions and fairs which are partially funded from budgetary resources.<br />

For the purpose <strong>of</strong> promoting the republic’s products to foreign markets,<br />

catalogues <strong>of</strong> the Export Products Manufactured by Enterprises <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> and the Investor’s Guide are published which, together<br />

with presentations and information materials about the republic and its<br />

commodity producers are distributed during the visits <strong>of</strong> delegations from<br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> abroad.<br />

With a view <strong>of</strong> encouraging the republic’s enterprises supplying their<br />

products for exports, the participation <strong>of</strong> companies from <strong>Tatarstan</strong> is arranged<br />

in the annual Russia’s exporters competition, “The Best Exporter <strong>of</strong><br />

the Russian Federation”. Many republic’s enterprises, such as OAO KAMAZ,<br />

OAO Nizhnekamskneftekhim, OAO Kazanorgsintez, OAO Kazan Elektropribor<br />

Plant and others became the winners <strong>of</strong> The Best Exporter <strong>of</strong> the Russian<br />

Federation award for many times.<br />

In 2009, the following organisations from the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> became<br />

its winners:<br />

OAO KAMAZ (as The Best Russian Exporter in Its Sector).<br />

FGUP Production Association Sergo Plant (as The Best Russian Exporter<br />

to CIS Countries in Its Sector).<br />

OOO Trade House Kama (as The Most Intensively Developing Russian<br />

Exporter in its Sector).<br />

15.2. fOrEiGn TrAdE pArTnErS<br />

Of TATArSTAn<br />

In the geographical structure <strong>of</strong> foreign trade, the non-CIS countries still<br />

hold the priority over the CIS countries despite the growth <strong>of</strong> trade turnover<br />

with the latter: in 2009, the turnover with the CIS countries was 15.4%<br />

<strong>of</strong> the total foreign trade turnover <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, while the<br />

non-CIS countries accounted for 84.6%<br />

TATARSTAN ExPORTS By COUNTRIES IN 2009<br />

The foreign trade turnover with major trading partners <strong>of</strong> <strong>Tatarstan</strong> is traditionally<br />

being formed for the most part by deliveries <strong>of</strong> republic’s crude<br />

oil, oil products, organic chemistry compounds, trucks, and imports <strong>of</strong> machines<br />

and equipment.<br />

15.3. inTErrEGiOnAL<br />

And inTErnATiOnAL<br />

cOOpErATiOn<br />

INTERREGIONAL ACTIvITIES<br />

Interregional activities play a growing role in the economic development<br />

<strong>of</strong> <strong>Tatarstan</strong> and become increasingly diversified. The Government<br />

<strong>of</strong> the republic seek to create favourable conditions for ensuring access <strong>of</strong><br />

the republic’s manufacturers to Russian markets and strengthening their<br />

positions there.<br />

In 2008, the interregional turnover <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> totalled<br />

some RUR 315.1 billion (with exports <strong>of</strong> RUR 193.8 billion and imports <strong>of</strong><br />

RUR 121.3 billion), recording a growth by a factor <strong>of</strong> 1.25 year-on-year.<br />

Top ten regions intensively cooperating with <strong>Tatarstan</strong> are Moscow,<br />

Moscow Region, Samara Region, <strong>Republic</strong> <strong>of</strong> Bashkortostan, Chelyabinsk<br />

Region, Sverdlovsk Region, St.-Petersburg, Nizhny Novgorod Region, Tyumen<br />

Region, and Perm Krai. These regions account together for 56% <strong>of</strong> the<br />

interregional turnover <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> (RUR 167 billion in the<br />

aggregate). In general, the republic maintains cooperation ties with 81 constituent<br />

entities <strong>of</strong> the Russian Federation.<br />

INTERNATIONAL COOPERATION<br />

One <strong>of</strong> the priority tasks <strong>of</strong> the Government <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

is the development <strong>of</strong> foreign trade activities and promotion <strong>of</strong> products<br />

manufactured by <strong>Tatarstan</strong> enterprises to the markets <strong>of</strong> foreign countries.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is high on the list <strong>of</strong> constituent entities <strong>of</strong><br />

the Russian Federation in the amounts <strong>of</strong> investments raised and in investment<br />

attractiveness. Large-scale international events held in 2009 testify<br />

to the unflagging interest <strong>of</strong> the international business community to our<br />

republic.<br />

The <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is regularly visited by high-ranking <strong>of</strong>ficials<br />

from the CIS and non-CIS countries and foreign business missions; visits<br />

<strong>of</strong> the ambassadors <strong>of</strong> foreign states are organised during which business<br />

events are held.<br />

Following the results <strong>of</strong> the visits, intergovernmental and interdepartmental<br />

agreements, memorandums and protocols are signed, in the frameworks<br />

<strong>of</strong> which <strong>Tatarstan</strong> enterprises carried out trade and economic interaction<br />

with foreign partners.<br />

Close attention is paid to the cooperation with business partners from<br />

countries <strong>of</strong> Europe, North and South America, Asian-Pacific region with<br />

an aim <strong>of</strong> renovating <strong>Tatarstan</strong> enterprises, developing import-substituting<br />

productions, implementing innovation projects, and promptly introducing<br />

the goods manufactured in <strong>Tatarstan</strong> to new points <strong>of</strong> demand.<br />

15. foReiGn economic anD inTeRReGional acTiviTies<br />

The projects implemented by <strong>Tatarstan</strong> enterprises jointly with business<br />

partners from the CIS countries, Middle East and Europe in the fields <strong>of</strong> automotive,<br />

aircraft and mechanical engineering, chemical and petrochemical<br />

industries, science and education, as well as advanced energy-saving<br />

and nanotechnologies under development in <strong>Tatarstan</strong> testify to the effectiveness<br />

<strong>of</strong> these international events and visits.<br />

COOPERATION wITH THE CIS COUNTRIES<br />

With a view <strong>of</strong> strengthening the positions <strong>of</strong> the leading republic’s companies<br />

in the markets <strong>of</strong> the CIS countries, the work is underway within the<br />

signed intergovernmental agreements and created working groups on the<br />

development <strong>of</strong> trade, economic and investment cooperation between the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the CIS countries, in particular, with Turkmenistan,<br />

Belarus, Kazakhstan, and Azerbaijan.<br />

For instance, the working visit <strong>of</strong> the delegation from the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> to the <strong>Republic</strong> <strong>of</strong> Belarus resulted in signing the Intergovernmental<br />

Protocol <strong>of</strong> Measures for Cooperation Development in 2009-2010.<br />

OAO Tatneft is working out an issue <strong>of</strong> building gasoline stations in large<br />

settlements and highways <strong>of</strong> Belarus. OAO PO YelAZ is carrying out the actions<br />

for localisation <strong>of</strong> components for Belarus-82.1 wheel tractors jointly<br />

with RUP MTZ. In the second quarter <strong>of</strong> 2009, OAO NPO Tatelektromash arranged<br />

the production <strong>of</strong> KZS-812 combine harvesters at its production facilities<br />

from vehicle sets <strong>of</strong> PO Gomselmash. OAO Nizhnekamskneftekhim<br />

is effecting mutual deliveries with Polyworld plant <strong>of</strong> OAO Naftan.<br />

Examples <strong>of</strong> successful cooperation also include the opening in Kazan<br />

<strong>of</strong> an <strong>of</strong>fice <strong>of</strong> Ukraine-based OAO Frunze Plant being one <strong>of</strong> the largest<br />

manufacturers <strong>of</strong> the punched metal products in the countries <strong>of</strong> Eastern<br />

Europe and the CIS and the successful operation <strong>of</strong> Kazakhstan-based<br />

KamAZ-Engineering plant releasing nearly every second KamAZ truck <strong>of</strong><br />

foreign manufacture.<br />

COOPERATION wITH THE NON-CIS COUNTRIES<br />

The practice <strong>of</strong> direct contacts with “locomotive” regions <strong>of</strong> foreign<br />

countries is continued, including the developing cooperation between the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the Free State <strong>of</strong> Saxony (Germany), Shandong<br />

Province (China), and East Azerbaijan Province (Iran).<br />

With an aim <strong>of</strong> attracting advanced technologies to the republic, a German-Russian<br />

Competence Centre for Mechanical Engineering / Production<br />

Technology is being created in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. A joint venture<br />

project is underway between OAO Kazan Electrotechnical Plant and Saxon-based<br />

CARNET GmbH to develop the automated control systems and<br />

methodology <strong>of</strong> their introduction for the enterprises with 150 to 1500<br />

employees; it is supposed to create an educational centre for training specialists.<br />

A joint construction project <strong>of</strong> fibre glass production facilities <strong>of</strong><br />

OAO Tatneft and Saxon-based Preiss-Daimler Group is now in its completion<br />

stage.<br />

On May 4, 2010 the construction <strong>of</strong> two new factories <strong>of</strong> Turkish companies<br />

was launched in the territory <strong>of</strong> SEZIPT Alabuga, a wood particle<br />

board and MDF production facility by Kastamonu Entegre (a member<br />

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15. foReiGn economic anD inTeRReGional acTiviTies<br />

<strong>of</strong> Hayat Holding) and a flat glass production facility by Trakya Cam Sanayii<br />

(a division <strong>of</strong> Sisеcam).<br />

Investments into the Kastamonu Entegre project will make US$ 385 million.<br />

At the first stage, some US$ 100 million will be invested in the production<br />

<strong>of</strong> MDF boards; the particle board production will be worth US$ 135<br />

million; at the third stage, the company will invest another US$ 150 million<br />

in the production development.<br />

Trakya Cam Sanayii has plans to start the flat glass production before the<br />

end <strong>of</strong> 2012. Sisecam investments into the projects in the territory <strong>of</strong> SEZ<br />

Alabuga will total US$ 325 million.<br />

On May 20, 2010 a new malt house <strong>of</strong> Krasny Vostok-Solodovpivo (Turkish-based<br />

EFES Group) was opened. Total investment into the renovation <strong>of</strong><br />

malt facilities started in 2006 totalled US$ $28.5 million.<br />

A Russian-Turkish Business Forum entitled “Development Prospects <strong>of</strong><br />

Automotive Component Production in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>” is also<br />

planned to be held in Kazan in October 2010, jointly with interested associations<br />

<strong>of</strong> the Turkish business community.<br />

Following the results <strong>of</strong> reciprocal visits <strong>of</strong> the delegations <strong>of</strong> the Islamic<br />

<strong>Republic</strong> <strong>of</strong> Iran and the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, projects are being studied<br />

on constructing a juice packing plant.<br />

In April 2009, the Memorandum <strong>of</strong> Intents on the Establishment <strong>of</strong><br />

Friendship Relations was signed between the city <strong>of</strong> Naberezhnye Chelny<br />

and the city <strong>of</strong> Liaocheng (Shandong Province <strong>of</strong> China). In September<br />

2009, following the results <strong>of</strong> the visit <strong>of</strong> the delegation from the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong> to China, the Memorandum <strong>of</strong> Cooperation was signed between<br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the Mayor’s Office <strong>of</strong> Meizhou on the<br />

joint implementation <strong>of</strong> several investment projects, in particular, projects<br />

in the field on nanoindustry. Furthermore, China-based Weihua intends to<br />

create a production <strong>of</strong> wood fibre board in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, with<br />

investment estimated at some US$ 80 million.<br />

DEvELOPMENT PRIORITIES AND MAjOR TRENDS<br />

OF FOREIGN ECONOMIC RELATIONS<br />

In accordance with provisions <strong>of</strong> the Concept <strong>of</strong> Foreign Trade Activities<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, the work with the CIS countries becomes more<br />

intense, especially that with Belarus and Kazakhstan within the framework<br />

<strong>of</strong> the Customs Union, and with Turkmenistan.<br />

A significant direction in the work is the attraction <strong>of</strong> foreign investors<br />

and technologies to the industrial and investment sites <strong>of</strong> our republic to<br />

implement projects in the field <strong>of</strong> industrial production.<br />

The work with the Islamic Development Bank is also increasingly active.<br />

With assistance <strong>of</strong> the Government <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and IFC<br />

Linova, the <strong>Tatarstan</strong> International Investment Company (TIIC) working in<br />

compliance with Shari’ah was established in the 1st quarter <strong>of</strong> 2010. The establishment<br />

<strong>of</strong> TIIC will promote the development <strong>of</strong> cooperation between<br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the Gulf countries in the field <strong>of</strong> investment<br />

in several sectors <strong>of</strong> the economy, including development <strong>of</strong> infrastructure,<br />

telecommunications, agriculture, finance, mining and processing industries,<br />

and power sector.<br />

36<br />

wORK IN THE STRUCTURE<br />

OF INTERGOvERNMENTAL COMMISSIONS<br />

With a view <strong>of</strong> implementing the tasks in the field <strong>of</strong> <strong>Tatarstan</strong>’s foreign<br />

economic activities specified in its intergovernmental agreements, the<br />

work was conducted in 2009 to ensure the participation <strong>of</strong> representatives<br />

from the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> at the meetings <strong>of</strong> the intergovernmental<br />

commissions on economic cooperation, namely: the Russian-Ecuadorian<br />

Intergovernmental Commission, the Intergovernmental Russian-Bulgarian<br />

Commission, the Standing Russian-Iranian Commission for Trade and Economic<br />

Cooperation, the Mixed Russian-Austrian Commission, the Intergovernmental<br />

Russian-Colombian Commission for Trade and Economic,<br />

Scientific and Technology Cooperation, the Mixed Intergovernmental<br />

Commission for Trade and Economic Cooperation between the Russian<br />

Federation and the Swiss Confederation, etc.<br />

COOPERATION OF TATARSTAN wITH<br />

INTERNATIONAL FINANCIAL INSTITUTIONS<br />

An effective tool <strong>of</strong> raising investment and financial resources towards<br />

the development <strong>of</strong> economy <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> is the expansion<br />

<strong>of</strong> cooperation with international financial institutions.<br />

Cooperation with the United Nations Industrial Development Organisation<br />

In December 2009, the Memorandum <strong>of</strong> Cooperation was signed in Vienna<br />

between the Government <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and UNIDO.<br />

The implementation <strong>of</strong> the Memorandum suggests the cooperation in the<br />

field <strong>of</strong> energy efficiency and energy saving, protection <strong>of</strong> the environment<br />

and rational use <strong>of</strong> water resources, industrial development, attraction to<br />

<strong>Tatarstan</strong> <strong>of</strong> advanced technologies for disposal, treatment and recycling<br />

<strong>of</strong> waste with the use <strong>of</strong> secondary raw materials, etc. A UNIDO centre for<br />

efficient resource management is planned to be opened in Kazan.<br />

Cooperation with the World Bank Group<br />

Cooperation between the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the World Bank<br />

Group follows the line <strong>of</strong> promoting infrastructure development and economic<br />

reform through implementing the projects <strong>of</strong> the latter in the territory<br />

<strong>of</strong> the republic within the framework <strong>of</strong> the Memorandum on Strategic<br />

Partnership between the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and the International Bank<br />

for Reconstruction and Development until 2015.<br />

The republic is implementing the WB project “Prevention, Diagnostics<br />

and Treatment <strong>of</strong> TB and AIDS” and continues cooperation on the programmes<br />

“Studying Innovation Potential <strong>of</strong> <strong>Tatarstan</strong>” and “Building High<br />

Education System in Kazan”.<br />

The World Bank is considering a possibility <strong>of</strong> participation in some<br />

promising investment projects in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> aimed at the<br />

reconstruction and development <strong>of</strong> social and transport infrastructure,<br />

power sector, municipal facilities, development and upgrading <strong>of</strong> water<br />

supply, sewage and heat supply systems, and increase in the energy and<br />

resource efficiency.<br />

Cooperation with the European Bank for Reconstruction and Development<br />

In 2009, the European Bank for Reconstruction and Development was<br />

providing financing <strong>of</strong> a joint project with MUP Vodokanal on the renovation<br />

<strong>of</strong> water supply in Kazan; also continuing is the cooperation on granting<br />

credit lines with Kazan-based AKB Spurt and OAO Bank Kazansky.<br />

Cooperation with the Islamic Development Bank Group<br />

In 2009, the First International Islamic Business and Finance Summit (KA-<br />

ZANSUMMIT 2009) was held in Kazan under the auspices the Islamic Development<br />

Bank. The event was attended by some 250 people from over 30<br />

countries worldwide. Following the Resolution adopted at the Summit, this<br />

event was decided to be held on an annual basis.<br />

In 2010, the <strong>Tatarstan</strong> International Investment Company was founded<br />

in Kazan with support <strong>of</strong> the Government <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, the<br />

Islamic Development Bank Group and investors from the Kingdom <strong>of</strong> Saudi<br />

Arabia, Bahrain, United Arab Emirates, Malaysia, and Yemen. Priority lines <strong>of</strong><br />

TIIC investment cooperation will be as follows:<br />

• Infrastructural projects (participation in toll highway construction);<br />

• Construction <strong>of</strong> real estate projects (international centre for exhibitions<br />

and conferences);<br />

• Small-scale power generation projects in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>;<br />

• Islamic financial services (leasing company, investment funds, etc.);<br />

• Projects in the field <strong>of</strong> telecommunications, agriculture, finance, mining<br />

and processing industries, power sector, and services.<br />

Financial and credit cooperation with the IDB Group in the field <strong>of</strong> waqfs<br />

in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> also continues successfully.<br />

With a view <strong>of</strong> strengthening the cooperation between the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> and the Islamic Development Bank Group, it is planned to arrange<br />

seminars with the IDB Group for representatives <strong>of</strong> <strong>Tatarstan</strong> banks, investment<br />

financial companies, and enterprises in order to study the promising<br />

areas <strong>of</strong> cooperation as regards to the attraction <strong>of</strong> investments to projects<br />

in the territory <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> and to projects in the territories<br />

<strong>of</strong> member countries <strong>of</strong> the Organisation <strong>of</strong> the Islamic Conference, provision<br />

<strong>of</strong> loans for export-import transactions with OIC countries, etc.<br />

IMPROvEMENT OF INvESTMENT CLIMATE,<br />

CREDITORS’ PROTECTION AND ExPANSION OF<br />

COMMON FINANCIAL SERvICES<br />

With a view <strong>of</strong> improving the investment climate in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

and establishing relations with the Great Duchy <strong>of</strong> Luxembourg, the<br />

seminar “Financial Structures <strong>of</strong> Luxembourg” was held in October 2009.<br />

Studying the experience in the field <strong>of</strong> financial structures and instruments<br />

<strong>of</strong> Luxembourg has contributed to the increase in the economic awareness<br />

<strong>of</strong> seminar participants, representatives <strong>of</strong> banking, financial, and legal<br />

structures.<br />

As regards the use <strong>of</strong> alternative financing vehicles, a work is underway<br />

with the Islamic Development Bank on the opening <strong>of</strong> so-called “Islamic<br />

windows” in <strong>Tatarstan</strong> banks to carry out investment, commodity credit<br />

and leasing transactions based on Islamic principles.<br />

15. foReiGn economic anD inTeRReGional acTiviTies<br />

15.4. inTErGOVErnMEnTAL<br />

AGrEEMEnTS<br />

The development <strong>of</strong> close ties with Russian regions is largely promoted<br />

by creating a strong legal basis for cooperation. As <strong>of</strong> April 15, 2010 the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> has signed treaties and agreements with 68 regions<br />

<strong>of</strong> the Russian Federation, <strong>of</strong> which 22 have implementation protocols.<br />

For more information about these documents, please visit the <strong>of</strong>ficial<br />

site <strong>of</strong> the Ministry <strong>of</strong> Industry and Trade <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> at<br />

http://mpt.tatar.ru/rus/documents.htm (in Russian).<br />

15.5. AcTiViTiES<br />

Of rEprESEnTATiVE OfficES<br />

And TrAdinG hOuSES<br />

Of TATArSTAn<br />

REPRESENTATIvE OFFICES<br />

Representative <strong>of</strong>fices and trading houses <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

are an important tool <strong>of</strong> foreign economic activities. Today, the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> maintains a system <strong>of</strong> representative <strong>of</strong>fices being instrumental<br />

in developing governmental, trade and economic cooperation at regional<br />

and international levels, attracting foreign investment to the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong>, and rendering assistance to diasporas abroad. A total <strong>of</strong> 20 plenipotentiary,<br />

permanent and trade and economic representative <strong>of</strong>fices <strong>of</strong><br />

<strong>Tatarstan</strong> has been established in Russian regions and foreign states. Of<br />

them, 13 <strong>of</strong>fices are located abroad and 7 in the Russian Federation.<br />

In 2009, representative <strong>of</strong>fices <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> took part in<br />

preparing and arranging visits <strong>of</strong> <strong>of</strong>ficial delegations <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> to regions <strong>of</strong> the Russian Federations and foreign states, provided<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

37


15. foReiGn economic anD inTeRReGional acTiviTies<br />

advisory, presentation support to enterprises from <strong>Tatarstan</strong>, rendered aid<br />

to <strong>Tatarstan</strong> commodity producers in introducing their products to external<br />

markets, sought investors for the implementation <strong>of</strong> important investment<br />

projects <strong>of</strong> republic’s manufacturers.<br />

TRADING HOUSES<br />

Trading houses <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> established in the regions <strong>of</strong><br />

the Russian Federation and abroad are engaged in the promotion <strong>of</strong> industrial<br />

products and consumer goods manufactured in <strong>Tatarstan</strong> to external<br />

markets, delivery <strong>of</strong> products from Russian regions and foreign countries<br />

to the markets <strong>of</strong> <strong>Tatarstan</strong>, and seeking <strong>of</strong> investments for the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>. A total <strong>of</strong> 33 <strong>Tatarstan</strong> trading houses are currently active, <strong>of</strong><br />

them 24 are located in regions <strong>of</strong> the Russian Federation and 9 abroad.<br />

The aggregate turnover <strong>of</strong> <strong>Tatarstan</strong> trading houses was over US$ 175.2<br />

million in 2009, the main contributor being the <strong>Tatarstan</strong> Trade House in<br />

Turkey which sold products from the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> to Turkey for<br />

the year in the amount <strong>of</strong> US$ 174 million. The <strong>Tatarstan</strong> Trade House is one<br />

<strong>of</strong> the biggest exporters <strong>of</strong> petrochemical products from Russia and represents<br />

such largest enterprises as OAO Nizhnekamskneftekhim, OAO Kazanorgsintez,<br />

and Tatneft-Nizhnekamskneftekhim-Oil. Its clients include<br />

Pirelli, Bridgestone, Goodyear, Henkel, Cognis, etc. With an aim <strong>of</strong> developing<br />

external activities, representative <strong>of</strong>fices have been established in<br />

Moscow, Iran, Switzerland, Italy, Kazakhstan, and Turkmenistan.<br />

As <strong>of</strong> April 15, 2010 there are 7 representative <strong>of</strong>fices <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> in Russian regions.<br />

With assistance <strong>of</strong> the Trade and Economic Representative Office <strong>of</strong> the<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in Saratov Region, contracts were signed in 2009 in<br />

the interests <strong>of</strong> <strong>Tatarstan</strong> manufacturers to a total <strong>of</strong> over RUR 1.5 billion.<br />

Through ZAO Narat Trade House, some RUR 35 million worth <strong>of</strong> goods were<br />

sold to the construction organisations <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. In 2009,<br />

the Permanent Representative Office <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in Sverdlovsk<br />

Region held a Symposium on Development <strong>of</strong> Interregional Interaction<br />

as Factor in Overcoming Economic Crisis: Role and Place <strong>of</strong> Institute <strong>of</strong><br />

Representative Offices. In 2009, the aggregate turnover <strong>of</strong> <strong>Tatarstan</strong> trading<br />

houses in the regions <strong>of</strong> the Russian Federation was RUR $959.6 million. A<br />

lead in the turnover was held by trading houses in Saratov Region, cities <strong>of</strong><br />

Moscow and Tolyatti.<br />

Alongside with the activities in the field <strong>of</strong> trade and economic coop-<br />

38<br />

eration, trading houses render support to the development <strong>of</strong> cooperation<br />

with representatives <strong>of</strong> national and cultural Tatar autonomies and diasporas<br />

in regions <strong>of</strong> the Russian Federation and foreign countries. With an aim<br />

<strong>of</strong> preserving and developing the Tatar national culture in the regions <strong>of</strong><br />

the Russian Federation and abroad, trading houses finance the opening<br />

<strong>of</strong> Sunday schools, construction <strong>of</strong> mosques, take part in celebrations <strong>of</strong><br />

national holidays, arrange tours <strong>of</strong> Tatar artistic groups, and take part in<br />

educational projects.<br />

For the list <strong>of</strong> representative <strong>of</strong>fices and trading houses <strong>of</strong> the <strong>Republic</strong><br />

<strong>of</strong> <strong>Tatarstan</strong>, please visit the <strong>of</strong>ficial site <strong>of</strong> the Ministry <strong>of</strong> Industry and<br />

Trade <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> at http://mpt.tatar.ru/rus/repr_list.htm<br />

(in Russian).<br />

15.6. chAMBEr Of cOMMErcE<br />

And induSTrY<br />

Of ThE rEpuBLic<br />

Of TATArSTAn<br />

The Chamber <strong>of</strong> Commerce and Industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

was founded in 1992 and is one <strong>of</strong> the leading establishments <strong>of</strong> this kind<br />

in the Russian Federation. Today it has branches and <strong>of</strong>fices in all cities <strong>of</strong><br />

the republic. The Chamber <strong>of</strong> Commerce and Industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> is a non-pr<strong>of</strong>it non-governmental organisation.<br />

Closely interacting with public authorities, the Chamber assists organisations<br />

and enterprises in their foreign economic operations.<br />

The Chamber <strong>of</strong> Commerce and Industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> has<br />

a rich expertise in the support <strong>of</strong> small and medium-sized businesses as<br />

regards the introduction <strong>of</strong> their products to external markets.<br />

Its principal activities are: information support, accounting and legal<br />

consulting services, personnel training, exhibition and fair activities, attraction<br />

<strong>of</strong> investment to the republic, preparation and support <strong>of</strong> investment<br />

projects, assistance in the development <strong>of</strong> foreign economic relations.<br />

With an aim <strong>of</strong> prompt and high-quality search <strong>of</strong> business partners, the<br />

Chamber <strong>of</strong> Commerce and Industry <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> keeps a<br />

register <strong>of</strong> entrepreneurial structures participating in foreign economic activities<br />

in the territory <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>. The member base <strong>of</strong> the<br />

Chamber comprises over 1200 organisations.<br />

16. CONSUMER MARKET<br />

In the sectoral structure <strong>of</strong> the Gross Regional Product <strong>of</strong> <strong>Tatarstan</strong>, the<br />

wholesale and retail trade is the second largest contributor (14.6%) after<br />

manufacturing industry.<br />

The Statistical Register <strong>of</strong> Economic Entities in the Sphere <strong>of</strong> Consumer<br />

Market recorded over 30,000 entities, which represents some 30% <strong>of</strong> the<br />

total number <strong>of</strong> enterprises in all sectors <strong>of</strong> the economy. Consumer market<br />

enterprises <strong>of</strong> the republic employ some 19% <strong>of</strong> the total workforce <strong>of</strong><br />

<strong>Tatarstan</strong>, or over 335,000 people.<br />

STRUCTURE OF GROSS REGIONAL PRODUCT OF TATARSTAN,<br />

IN PERCENT<br />

RETAIL TURNOvER AND GROwTH RATE IN TATARSTAN, 2005-2009<br />

The robust growth <strong>of</strong> consumer market and its infrastructure development<br />

observed in recent years gave way to a noticeable decrease in this<br />

year due to external factors.<br />

PUBLIC CATERING TURNOvER AND GROwTH RATE<br />

16. consumeR maRKeT<br />

RETAIL TRADE TURNOvER OF THE vOLGA FEDERAL DISTRICT<br />

IN 2009 IN RUR BILLION AND PERCENT<br />

While in the pre-crisis period the retail turnover in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

was growing increasingly with annual rates <strong>of</strong> 15% to 20%, then in<br />

2009 this figure dropped by 2% to the amount <strong>of</strong> RUR 394 billion.<br />

The public catering turnover totalled RUR 19.2 billion in 2009, recording<br />

a 14.7% decrease compared to 2008. <strong>Tatarstan</strong> residents were rendered<br />

consumer services in the total amount <strong>of</strong> RUR 20 billion, which is an increase<br />

by 0.3% versus last year.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

39


16. consumeR maRKeT<br />

FOODS AND NON-FOODS IN THE STRUCTURE OF COMMODITy<br />

TURNOvER, IN PERCENT<br />

CONSUMER SERvICES TURNOvER AND GROwTH RATE<br />

As compared with the indicators both in Russia in general and in the regions<br />

<strong>of</strong> the Volga Federal District, somewhat higher figures were recorded<br />

in <strong>Tatarstan</strong> (94.3% in the Russian Federation vs. 97.5% in the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> in 10 months 2009).<br />

The situation in the consumer market in 2009 showed that the consumer<br />

confidence level fell sharply due to the uncertainty <strong>of</strong> consumers about<br />

prospects <strong>of</strong> employment, state <strong>of</strong> their personal finances and readiness<br />

to buy new goods. As a result, people began to buy more foods and the<br />

proportion <strong>of</strong> non-food sales dropped considerably from 54.4% in 2008 to<br />

50.7% in 2009г.<br />

Owing to the systematic work <strong>of</strong> the Ministry <strong>of</strong> Industry and Trade <strong>of</strong><br />

the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, jointly with the Ministry <strong>of</strong> Agriculture and Foods<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>, executive committees <strong>of</strong> the republic’s municipalities,<br />

manufacturers, and outlet chains, it became possible to prevent a<br />

leap in prices for socially sensitive goods.<br />

40<br />

For instance, prices for bread and bakery products in the <strong>Republic</strong> <strong>of</strong><br />

<strong>Tatarstan</strong> remained virtually unchanged during the year, with retail margins<br />

not exceeding 15%.<br />

TATARSTAN'S AvERAGE PRICES FOR BAKERy AND DAIRy<br />

PRODUCTS, RUR PER KG<br />

Prices for dairy produce were kept unchanged till October 2009, when<br />

producers raised wholesale prices by 3% for milk to 8% for butter. This resulted<br />

in the increased retail prices; however, the retail margin for dairy produce<br />

remains the same, from 5% to 15%.<br />

NUMBER OF “wALKING DISTANCE“ CONvENIENCE SHOPS,<br />

CONSUMER SERvICES AND CATERING ESTABLISHMENTS<br />

COMMISSIONED IN TATARSTAN<br />

The republic is currently implementing the Programme for Creation and<br />

Development <strong>of</strong> “Walking Distance” Convenience Shops, Public Catering<br />

and Consumer Services Establishments for 2007-2009 (adopted in July<br />

2007). Since the beginning <strong>of</strong> 2009, 37 such establishments were opened<br />

in <strong>Tatarstan</strong> (a total <strong>of</strong> 78 establishments since the launching <strong>of</strong> the programme).<br />

The consumer market infrastructure <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> currently<br />

comprises over 14,000 trade enterprises, 4,316 public catering establishments,<br />

3,247 consumer services establishments, over 5,000 small-scale<br />

retailers, and 95 markets.<br />

Despite the growing share <strong>of</strong> markets in goods turnover on the average<br />

in Russia (from 13.4% to 14.2%), in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> it remains at<br />

the same level <strong>of</strong> 8.2%.<br />

SHARE OF MARKETS IN RETAIL TURNOvER<br />

An important factor in the consumer market development is the provision<br />

<strong>of</strong> competitive conditions for trading activities. With a view <strong>of</strong> protecting<br />

free trade and fair competition in the consumer market and improving<br />

the competitiveness <strong>of</strong> the republic’s manufacturers, a group <strong>of</strong> actions<br />

aimed at competition development is being carried out jointly with ministries<br />

and departments. (The action plan for the development <strong>of</strong> competition<br />

in the food market <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> was approved by the<br />

Resolution <strong>of</strong> the Cabinet <strong>of</strong> Ministers <strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> No.466-r<br />

<strong>of</strong> March 28, 2008.) These include improving the competitiveness <strong>of</strong> agricultural<br />

produce and ensuring food security in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

through increasing the efficiency <strong>of</strong> agricultural production, meeting the<br />

demand <strong>of</strong> the republic’s residents for goods and services through ensuring<br />

their accessibility and affordability, and improving the staffing <strong>of</strong> agricultural<br />

and trading establishments.<br />

16. consumeR maRKeT<br />

When analysing commodity resources in the republic’s food market, it<br />

should be noted that the sources for their formation are the deliveries <strong>of</strong><br />

the local manufacturers (65%), manufacturers <strong>of</strong> the Russian Federation<br />

(30.3%), and imports (4.7%).<br />

FOODS IN RETAIL TURNOvER By SOURCE OF PRODUCTION,<br />

IN PERCENT<br />

Meanwhile, the share <strong>of</strong> products <strong>of</strong> local manufacture in the republic is<br />

over 70% in the sales <strong>of</strong> bread and bakery products; potatoes; cabbages;<br />

carrots; beets; beef; pork; eggs; curds; sour cream; butter; milk and sourmilk<br />

products; sugar; sausages; and wheat flour.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy <strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

41


17. social spHeRe<br />

17. SOCIAL SPHERE<br />

In 2009, the per capita income grew by 9.5% compared to the previous<br />

year, to RUR 15,522.7 in nominal terms.<br />

In 2009, monthly average wages <strong>of</strong> employees (including small businesses)<br />

was RUR 15,208.0, an increase by 2.4% compared to the previous<br />

year. Real wages constituted 93.2%.<br />

18000<br />

16000<br />

14000<br />

12000<br />

10000<br />

Total workforce potential in the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong> in 2009 was<br />

2,452,000. Number <strong>of</strong> employed persons was 1,827,000. Some 510,000<br />

were employed in small businesses.<br />

The positive trends in demographic situation survived throughout 2009.<br />

Increase in birth rates and decrease in death rates resulted in positive<br />

changes in natural losses; they reduced by 30% compared to 2008.<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

8000<br />

6000<br />

4000<br />

2000<br />

18000<br />

16000<br />

14000<br />

12000<br />

10000<br />

8000<br />

6000<br />

4000<br />

2000<br />

0<br />

0<br />

137,90<br />

7 383<br />

126,9 123,6 122,50<br />

9 369<br />

11 577<br />

14 181<br />

109,5 109,4<br />

15 523<br />

16 980<br />

2005 2006 2007 2008 2009 2010<br />

(estimate)<br />

Monthly average income, RUR<br />

129,60<br />

7 068<br />

In percent to previous year<br />

125,2<br />

8 850<br />

129,6 130,00<br />

11 469<br />

14 904<br />

102,4<br />

15 208<br />

107<br />

16 273<br />

2005 2006 2007 2008 2009 2010<br />

(estimate)<br />

Monthly average wages (on an annual average), RUR<br />

In percent to previous year<br />

0<br />

160<br />

140<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

140<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

Contents<br />

1. basic facTs abouT THe <strong>Republic</strong> <strong>of</strong> TaTaRsTan . . . . . . . . . . . .1<br />

1.1. STATE SYMBOLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />

1.2. STATE SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />

1.2.1. LEADERSHIP OF THE REPUBLIC OF TATARSTAN. . . . . . . . . . . . 1<br />

1.2.2. CABINET OF MINISTERS OF THE REPUBLIC OF TATARSTAN. .1<br />

1.3. GEOGRAPHY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />

1.4. CLIMATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />

1.5. NATURAL RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />

1.6. POPULATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />

1.7. RELIGION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />

1.8. STATE LANGUAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />

1.9. HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />

1.10. CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />

1.11. MAJOR CITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />

1.12. CULTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />

1.13. EDUCATION AND SCIENCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7<br />

1.14. TATARSTAN: THE SPORTS REPUBLIC . . . . . . . . . . . . . . . . . . . . . . . . . . 8<br />

2. economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9<br />

2.1. ECONOMIC OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />

2.2. BASIC FIGURES OF MANUFACTURING INDUSTRY . . . . . . . . . . . . . 10<br />

2.3. FUEL AND ENERGY SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11<br />

2.4. OIL, GAS, AND CHEMICAL INDUSTRIES . . . . . . . . . . . . . . . . . . . . . . . 11<br />

2.5. MECHANICAL ENGINEERING AND METALWORKING . . . . . . . . . . 13<br />

2.6. LIGHT, FOOD-PROCESSING, AND TIMBER INDUSTRIES . . . . . . . . 15<br />

2.7. INTRODUCTION OF QUALITY MANAGEMENT SYSTEM . . . . . . . 16<br />

3. aGRiculTuRe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />

4. summaRy <strong>of</strong> TaTaRsTan lanD maRKeT . . . . . . . . . . . . . . . . . . . . 20<br />

4.1. MONITORING OF UNDEVELOPED LAND PLOTS (LANDS<br />

OF INHABITED LOCALITIES) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20<br />

5. TRanspoRT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />

6. infoRmaTion anD communicaTions. . . . . . . . . . . . . . . . . . . . . . 22<br />

6.1. INFORMATION SUPPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />

6.2. TELEVISION AND RADIO BROADCASTING . . . . . . . . . . . . . . . . . . . . 23<br />

6.3. COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

6.4. LOCAL, LONG-DISTANCE, AND INTERNATIONAL TELEPHONE<br />

COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

6.5. DATA TRANSMISSION NETWORKS, THE INTERNET AND NEW<br />

SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

6.6. POSTAL SERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />

7. TouRism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />

8. buDGeTaRy policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />

9. banKinG sysTem, acTiviTies <strong>of</strong> cReDiT insTiTuTions . . . . . 26<br />

10. TaRiffs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />

11. employmenT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />

12. aTTRacTion <strong>of</strong> invesTmenT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />

13. special economic Zone in yelabuGa . . . . . . . . . . . . . . . . . . . . 30<br />

14. innovaTion acTiviTies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />

15. foReiGn economic anD inTeRReGional acTiviTies . . . . . . 32<br />

15.1. BASIC INDICATORS OF FOREIGN ECONOMIC ACTIVITIES . . . . 32<br />

15.2. FOREIGN TRADE PARTNERS OF TATARSTAN . . . . . . . . . . . . . . . . . 34<br />

15.3. INTERREGIONAL AND INTERNATIONAL COOPERATION. . . . . . 35<br />

15.4. INTERGOVERNMENTAL AGREEMENTS. . . . . . . . . . . . . . . . . . . . . . . 37<br />

15.5. ACTIVITIES OF REPRESENTATIVE OFFICES AND TRADING<br />

HOUSES OF TATARSTAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />

15.6. CHAMBER OF COMMERCE AND INDUSTRY OF THE REPUBLIC<br />

OF TATARSTAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />

16. consumeR maRKeT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />

17. social spHeRe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy


17. social spHeRe<br />

44<br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

17. social spHeRe<br />

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17. social spHeRe<br />

46<br />

<strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong>:<br />

General Overview, State System, Economy<br />

ministry <strong>of</strong> industry and Trade<br />

<strong>of</strong> the <strong>Republic</strong> <strong>of</strong> <strong>Tatarstan</strong><br />

<strong>Republic</strong> <strong>of</strong> TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy<br />

17. social spHeRe<br />

47

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