tatarstan: your business partner investor’s guide · of the republic of tatarstan! this...

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T A T A R S T A N : Y O U R B U S I N E S S P A R T N E R

Investor’s Guide

Kazan-2008

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Under the editorship of Aleksandr Kogogin,

Minister of Industry and Trade of the Republic of Tatarstan

Editorial Board:

Vladimir Solovyev, Linar Latypov, and Aleksandr Ivanov

This catalogue was prepared with participation of

Yulia Mironova, Valentina Popova, Mikhail Ovsyannikov, Rustem Akhmetgarayev, Guzel Shaikhullina, Guzalia Kha-sanova, Dmitry Ukhin, Aleksey Taibinsky, Natalia Danilenko, Tatyana Fedorova, Guzyal Sadrieva, Liliya Rakhimsyanova, Aleksei Belyaev, Natalia Kaminskaya, Alfiya Samatova, Denis Klimin, Liliya Khabiboullina, Engil Ismagilov, Sergei Mezent-sev, Gelshat Islamova, and Dinara Mukhametzyanova.

Translated by

Engil Ismagilov, Timur Mindubayev, and Nailya Akhmetzyanova

© Ministry of Industry and Trade of the Republic of Tatarstan, compilation, 2008

4, Ostrovsky St., Kazan 420111Phone: +7 (843) 2991007, 2991109Fax: +7 (843) 2921645

© Logos Centre, design and layout, 2008Phone: +7 (843) (843) 2924705, 2485486

Published with kind assistance of the State Non-Commercial Organisation Investment Venture Fund of the Republic of Tatarstan

50, Peterburgskaya St., Kazan 420107Phone: +7 (843) 5704017, Fax: +7 (843) 5704000

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Ladies and gentlemen, guests of the Republic of Tatarstan!

This Investor’s Guide entitled «Tatarstan: Your Business Part-ner» is intended for all those who seek to establish stable busi-ness contacts with our republic.

This edition was prepared by the Ministry of Industry and Trade and Foreign Economic Cooperation of the Republic of Tatarstan. It has taken into account the remarks and sugges-tions expressed by users of the previous guides. The favour-able changes that took place in social and economic life of the republic over the recent years are obviously significant. This is confirmed by stable economic growth recorded in the repub-lic and the notable pace of its social development.

Modern Tatarstan was one of the first Russian regions to start changing over to European standards, not only in the field of industrial production, but also in education, medical and other sectors. Transition to European standards will largely support the optimisation of the management system and en-

couragement of business initiative, which in turn will create favourable conditions for further development of the market economy in the republic.

Quite visible are the results of the independent foreign eco-nomic policy pursued by the republic in the past ten years. Tatarstan has tripled its foreign trade turnover, forged stable economic ties with over a hundred countries and their regions all over the world. The products manufactured by republic’s enterprises and some Tatarstan-registered trademarks are well known both in Russia and abroad. Year after year manufactur-ers from Tatarstan win competitions for best Russian export-ers. All this enables the republic to enjoy a high international rating and ensures its harmonious integration into the world community.

Great attention is paid in the republic to further improve-ment of its investment image. Consistently improving is the legal support of the investment process, which takes into account the international standards related to protection of investors’ rights, and the necessary infrastructure is being de-veloped. Tatarstan today is the place where many foreign com-panies are operating and renowned multinational companies are represented. We are always open for cooperation and hope that this edition will be a useful guide to the business world of Tatarstan and a reliable partner in the implementation of your business projects.

Rustam Minnikhanov Prime Minister

of the Republic of Tatarstan

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Russian Federation

Republic of Tatarstan

5Investor’s Guide

1. Overview of the Republic of Tatarstan

1.1. GEOGRAPHYThe Republic of Tatarstan is situated in the European part of

the Russian Federation at the confluence of the Volga and the Kama rivers. The republic extends some 460 kilometres west to east and 290 kilometres north to south. The area of the repub-lic is 67,836.2 square kilometres, which is approximately equal to the area of Sri-Lanka or that of Belgium and the Netherlands taken together. Tatarstan borders on eight regions of the Rus-sian Federation: the Republic of Bashkortostan, the Udmurt Republic, the Republic of Mari El, the Chuvash Republic, the Kirov, Orenburg, Ulyanovsk and Samara Regions.

Investor’s Guide6

Overview of the Republic of Tatarstan Overview of the Republic of Tatarstan

1.2. CLIMATEThe climate of Tatarstan is mild continental with long, warm

and sometimes hot and droughty summer and moderately cold winter.

Snowy period is almost 5 months (from mid-November to early April). Average temperature of January is -14°C, and that of July is +19°C. The range of monthly average temperatures is 32°C to 34°C, and the range of absolute temperatures is 86°C. Annual precipitation ranges from 430 millimetres to 500 mil-limetres.

1.3. POPULATIONThe population of the Republic of Tatarstan numbers

3,772,900 and comprises representatives of 115 ethnic groups including the Tatars (52.9 %), the Russians (39.5 %), the Chu-vashes (3.4 %), the Ukrainians, the Udmurts, the Mari, the Bash-kirs, the Jews, and others. Russian population prevails in large cities and adjacent regions, while Tatar population dominates in rural areas.

1.4. RELIGIONOver thousand religious societies have been registered in

the territory of the Republic of Tatarstan. The most widely-spread religions are Islam and Orthodox Christianity.

The Sunnite Islam was adopted as offi cial religion in the

Volga Boulgaria as early as in 922. At present, it is confessed by the majority of the Tatars and the Bashkirs. The supreme body of Muslims is the Spiritual Board of Muslims of the Republic of Tatarstan.

The Orthodox Christianity appeared in the mid-16th cen-tury after the annexation of the Kazan Khanate by the Russian State. The followers of this religion are the Russians, the Chu-vashes, the Mari, the Mordvinians, the Udmurts, and a part of the Tatars (kryasheny). Because of the Raskolnik schism in the Orthodox Church, Kazan Metropolitan See of the Russian True Orthodox Church also functions in the territory of the repub-lic alongside with the Kazan Eparchy of the Russian Orthodox Church. There are small communities of other Christian confes-sions: Old Believers, Catholics, Lutherans, Baptists, Seventh — Day Adventists, etc.

1.5. OFFICIAL LANGUAGESUnder the Constitution of the Republic of Tatarstan, the Ta-

tar and the Russian languages are recognised as equal in rights in the territory of the Republic of Tatarstan.

The Tatar language belongs to the Turkic group of the Al-tai family of languages alongside with Kazakh, Uzbek, Turkish, etc.

The Russian language, together with Ukrainian and Byelo-russian, constitutes Eastern-Slavic subgroup of Slavic group of the Indo-European family of languages.

Overview of the Republic of Tatarstan

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Investor’s Guide

tion, in accordance with a new state national policy, the Tatar Autonomous Soviet Socialist Republic (TASSR) was established in 1920.

Virtually since 1922, the Tatar elite had been making eff orts to achieve the status of a union republic for Tatarstan. In this or that form, the issue was discussed before the adoption of 1937 Constitution, in the years of “Khrushchev Thaw”, and, in the process of elaborating the 1977 Constitution; the propos-als had even been prepared on transformation of Tatarstan into a union republic.

The complicated interior situation in the Soviet Union and the initiated processes of changes have directly infl uenced the position of the republic: on 30 August 1990, the Declaration of State Sovereignty of the Republic of Tatarstan was adopted. On 12 June 1991, the fi rst President of Tatarstan, Mintimer Shaimiev, was elected. On 6 November 1992, the Constitution of the Republic of Tatarstan was adopted.

Holidays In The Republic Of Tatarstan

New Year’s Holiday January 1, 2, 3, 4, and 5

Christmas January 7

Defenders of the Mother-land Day

February 23

International Women’s Day March 8

Spring and Labour Holiday May 1

Victory Day May 9

Day of Russia June 12

Foundation Day of the Republic of Tatarstan

August 30

People’s Unity Day November 4

Constitution Day of the Republic of Tatarstan

November 6

Kurban Bairam The date is determined according to lunar calendar and is established annually by Decree of the President of the Republic of Tatarstan three moths prior to its commencement

Sabantui (fi nishing the spring agricultural fi eld works)

The date is established annually by Decree of the President of the Republic of Tatarstan.

1.7. CAPITALThe capital of the Republic of Tatarstan, the city of Kazan, is

situated on the left bank of the Volga in the estuary of the Ka-zanka and has the largest population and economic potential among the cities of the republic.

The area of Kazan is 425.16 square kilometres, and its popu-lation as of 1 January 2005 was 1.11 million. Young people at the age of up to 30 constitute 40.7 per cent of the city popula-tion. Citizens of Kazan represent over 100 nationalities. Kazan

1.6. HISTORYThe Republic of Tatarstan has rich history. The fi rst state in

the region was the Volga Boulgaria created by Turkic tribes, whose ancestors had already had the statehood experience within the frames of the Turkic Kaghanate and Hunnish Power, as early as in the 8th — 9th centuries. In 922, it adopted Islam as offi cial religion, which meant its international recognition and falling under the infl uence of the Arab Caliphate. Boulgar-ia was the most politically and economically developed state in the region and played an important role in life of peoples that inhabited the region. The country pioneered in smelting cast-iron in Europe.

In addition to metallurgy, quite developed were the art of jewellery, tanning industry, culture, science, and educa-tion. Unity of the country, its regular armed forces and well-organised reconnaissance allowed it to withstand the Mon-golian aggressors. Only with the fourth attempt in 1236, their superior forces succeeded in breaking down the resistance of the Boulgars, but even after that the Mongols had to maintain a huge garrison to pacify the rebellious land.

Boulgaria became an ulus of the Golden Horde, with the local dynasty remaining in power, as in Russian principalities. However, centrifugal tendencies began to appear, and the country broke into semi-dependent emirates, among which was Kazan, and actually got out of the Horde. The exit was fi xed in 1438 with the formation of the Kazan Khanate.

Relations between the Kazan Khanate and Moscow were rather uneasy. Continued wars, robber raids and interference of the neighbouring Russia weakened the country. Having gained strength, the Russian State was able to capture Kazan in 1552, though it took tens of years to break down the peo-ple’s resistance.

Kazan became one of the major cities of Russia and the centre of a huge province in 1708. After the October Revolu-

Investor’s Guide8

Overview of the Republic of Tatarstan Overview of the Republic of Tatarstan

is home to 22 national-cultural societies. Administratively, Ka-zan is divided into 7 districts.

Kazan is a city with rich history. Recent archaeological fi nd-ings show that its age is about one thousand years. Once a Boulgar frontier fortress, Kazan in the Golden Horde period became the capital of an actually independent emirate (princi-pality), and of the Kazan Khanate in 1438. As a result of seizure of the city by troops of Ivan the Terrible in 1552, it was virtually razed to the ground. In 1708, Kazan became a province cen-tre. From 1920, Kazan was the capital of the Tatar Autonomous Soviet Socialist Republic, and from 1992, of the Republic of Tatarstan.

Kazan is the centre of culture and education of Tatarstan. It has 30 higher educational institutions, including the world-known Kazan State University. Development of science is also supported by the Academy of Sciences of Tatarstan, Kazan Scientifi c Centre of the Russian Academy of Sciences, National Library of the Republic of Tatarstan (book-stock of 2.8 million), and Scientifi c Library of Kazan University (book-stock of 4.8 million). In Kazan, there are the Russia’s second largest Concert Hall, 7 professional theatres, 4 state orchestras, Ensemble of Singing and Dancing of the Republic of Tatarstan, 13 museums, 5 exhibition halls and galleries, 7 Creative Unions, 7 higher and secondary institutions for culture and arts, over 50 schools of art and music. This list can be extended with 3 leisure centres, 300 libraries of diff erent systems and departments, 7 cinema theatres, over 50 creative troupes, the circus, diff erent cultural societies, foundations, associations, etc.

Kazan is the city where the republic’s large enterprises are located. The products of OAO Kazanorgsintez, OAO Kazan Motor-Building Production Association, OAO Kazan Helicop-ters, OAO Kazan Aircraft Association named after Gorbunov, OAO Kazankompressormash, OAO Kazan Medical Instruments Plant, and OAO Krasny Vostok are well-known and in demand far outside the republic.

On 30 August 2005, the capital of Tatarstan has celebrated an outstanding event in its life: its 1000th anniversary. During the days of celebration of its millennium anniversary Kazan hosted the World Congress of Tatars, the Summit of Heads of the CIS States, a meeting of the State Council of the Russian Federation. Over the year preceding the jubilee year and dur-ing the days of celebration the republic was visited by more than 80 delegations of foreign states and Russian regions. At the same time, some 30 delegations from Tatarstan visited for-eign countries, including the CIS, to exchange experience on issues related to economic development. Large scale presen-tations of the economic and investment potential of Tatarstan were held in China, Belgium, France, Singapore, Vietnam, India, Czech Republic, Kazakhstan, as well as at the Ministry of For-eign Aff airs and the Federation Council of the Russian Federa-tion, in the Republic of Karelia, Karachayevo-Cherkess Repub-

lic and in Yaroslavl. Enterprises of the republic took part in over 55 international and interregional exhibitions. The programme of celebrations included the ceremonies of opening the fi rst line of the Kazan underground, the reconstructed Kul Sharif Mosque and the restored Annunciation Cathedral, a business terminal of the Kazan International Airport, the Tatar State Humanitarian Pedagogical University, the hermitage centre in Kazan Kremlin, etc. The city completed the reconstruction of the Theatre of Opera and Ballet named after Musa Jalil and the City Hall and the construction of the Millennium Bridge across the Kazanka, which unites two parts of the city.

1.8. LARGE CITIESTatarstan is among the highly urbanised regions with urban

population accounting for 74 per cent. Tatarstan is divided into 43 districts; it has 20 cities and towns (of which 14 are of the republic’s subordination), 21 urban-type settlements, and 910 village councils. Major cities are Kazan, Naberezhnye Chelny, Almetyevsk, Nizhnekamsk, and Zelenodolsk.

Naberezhnye Chelny is located in north-east Tatarstan on the bank of the River Kama. The city is mono-industrial, nearly its entire population being somehow associated with the city-forming company, Kamsky Motor Works (KamAZ), manufac-turer of heavy-duty trucks and their components. The Nizh-


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Investor’s Guide

nekamsk Hydroelectric Power Station supplies electric power to the city and the whole economic region.

The services of Begishevo International Airport completely cover the north-east of the republic.

Nizhnekamsk originated during the construction of the pet-rochemical plant in 1961. The city is one of the largest centres of petrochemical industry in the country. Major manufactur-ers are OAO Nizhnekamskneftekhim, OAO Nizhnekamskshina, and Elastik Plant.

Almetyevsk is the largest centre of crude oil production in Tatarstan. Here starts Druzhba Oil Pipeline, through which Ta-tarstan exports its crude oil. The largest company in the region is OAO Tatneft (production of crude oil and petroleum gas). The Almetyevsk Petroleum Institute plays an important role in training of personnel for the main industry of the republic.

Zelenodolsk is an important transport junction in the west of the republic. The products of the Shipbuilding Plant and Production Association Plant n.a. Sergo (POZIS) located in the city are in demand far outside of Tatarstan.

1.9. CULTUREDue to historical and geographical factors, Tatarstan is lo-

cated on the junction of two large civilisations, the Occidental and the Oriental, which in many respects determines the di-versity of its cultural wealth.

The Tatars keep centuries-old traditions of their ancestors, the Boulgars, who managed to achieve high level of cultural development, having combined their Turkic roots with Ara-bic infl uence due to adoption of Islam in the 10th century. It became the basis for further development of the Tatar culture at large. Specifi c place in life of the Boulgars and the modern Tatars is given to literature. Traditions established by poet Koul Gali in the 13th century were upheld by Mahmoud Gali, Saif

Sarai, and Mouhamedyar. Among the outstanding person-alities of the Tatar culture in the 19th and 20th centuries, one cannot but mention Gabdoullah Toukay, Kayum Nasyri, Shig-aboutdin Marjani, Galiaskar Kamal, Fatikh Amirkhan, Rudolf Nouriev, Baki Urmanche, Galimjan Ibragimov, Gayaz Iskhaki, and Mousa Jalil.

There are 7 historical complexes in the territory of the re-public: Bulgar, Bilyar, city ensembles of Kazan, Yelabuga, Chis-topol, Sviyazhsk, and the Raifa Monastery.

Of greatest interest for visitors to Tatarstan is the capital of the republic, Kazan, a city with a millennial history. All architec-tural buildings of this city date back to the second half of the 16th century up to the 20th century. More ancient history can be judged from archaeological excavations. The main place of interest in the city is Kremlin, the present residence of the Tatarstan President. Well harmonised here are the Blagovesh-chensky (Annunciation) Cathedral, Suyumbike Tower, which is the city’s architectural symbol, and Koul-Sharif Mosque, the relic of the Tatar people. Among other points of interest in Kazan are the main building of Kazan State University (1825), Azimov Mosque (mid-19th century), St. Peter’s and Paul’s Ca-thedral (1723–26), Marjani Mosque (1766).

THEATRESAt present, there are 12 professional theatres in Tatarstan,

of them 7 in Kazan. Most popular in and outside the republic is the Tatar State Opera and Ballet Theatre named after Mousa Jalil, functioning since 1939. It hosts annual international op-era festivals named after Fyodor Chaliapin and classic ballet festivals named after Rudolf Nouriev with participation of well-known masters of the world scene. Traditional tours of Euro-pean countries, in particular of the Netherlands, have brought international fame and popularity to the theatre’s troupe.

The Tatar State Academic Theatre named after Galiaskar Ka-mal is known by staging the works by classics of the Tatar dra-matic art, such as Naki Isanbet, Galiaskar Kamal, Farid Yaroullin,

Investor’s Guide10

Overview of the Republic of Tatarstan Investment climate in the Republic of Tatarstan

Toufan Minnoullin, etc. Its tours to Moscow and countries with large Tatar communities have become traditional.

The Kazan Academic Russian Great Drama Theatre named after Vasily Kachalov is a constant participant of international drama festivals and enjoys wide popularity of Kazan residents and visitors.

MUSEUMSThere are 100 state museums and over 300 departmental

museums in Tatarstan, which help learn the history and culture of this land.

The State United Museum of the Republic of Tatarstan was founded in 1894. Its exposition was based on the materials of 1890 Scientifi c and Industrial Exhibition and the collection of collector Andrei Likhachev. The museum provides informa-tion about the nature of the land and its history from ancient times.

The Fine Arts Museum founded in 1959 on the basis of the State Museum picture gallery displays over 21,000 pieces of painting, graphics, sculpture and applied art. Among them are the works of Rembrandt, Durer, Bryullov, Aivazovsky, Perov, Kramskoy, Savrasov, Shishkin, Kuindzhi, Levitan, Repin, Veresh-chagin, Serov, Roerich, Fechin, Urmanche, and many others.

The Museum of Geology under Kazan State University dis-plays a rich collection of meteorites, minerals and crystalline soils of the Urals and Siberia.

The Museum of Ethnography under Kazan State University provides information about life of peoples in diff erent corners of the world. It also contains materials collected by Ivan Si-monov during the Antarctic expedition of Bellinshauzen and Lazarev.

Also of interest for visitors to Tatarstan can be memorial fl ats of Mousa Jalil and Nazib Zhiganov, museums of Yevgeny

Baratynsky, Maxim Gorky, Baki Urmanche, Salikh Saidashev in Kazan, Jaroslav Hasek in Bugulma, Ivan Shishkin, Marina Ts-vetayeva and cavalry maiden Natalya Durova in Yelabuga.

1.10. EDUCATION AND SCIENCETatarstan is the region with strong educational and scien-

tifi c potential. 170,000 persons are engaged in the sphere of education.

Secondary 9-year education is compulsory and free. There are 2,434 comprehensive schools in the republic; the number of students attending them being some 471,200. Over 90 per cent of students having statutory educational minimum con-tinue their education at school for another 2 years or at the institutions of secondary special education.

Tatarstan has been famous for its high level of academic, higher education and industrial science. For two centuries its capital, Kazan, has been one of the leading centres of science in Eastern Europe. It became the birthplace of the world-known schools of mathematicians, chemists, astronomers, physicists, orientalists, linguists, and physiologists. The names of Nikolai Lobachevsky, Nikolai Zinin, Alexandr Butlerov, Alexandr Arbu-zov, Yevgeny Zavoisky, Vasily Radlov, Karl Fuchs, Shigaboutdin Marjani, Kayum Nasyri went down in history of the world sci-ence.

During the World War II, Kazan scientifi c schools have made an outstanding contribution to strengthening the defence of the country closely interacting with the Academy of Sciences of the USSR evacuated to Kazan.

Kazan is one of the oldest educational centres in Russia. There are 84 institutions of higher education (including 24 state-run institutions), mostly in Kazan.

Four Kazan-based institutions of higher education (Kazan State University named after Ulyanov-Lenin, Kazan State Uni-versity of Technology, Kazan State Technical University named after Tupolev, Kazan University of Economics and Finance)


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Investment climate in the Republic of Tatarstan

Investor’s Guide

rank among top 50 Russian universities.The Decree of the President of the Republic of Tatarstan

dated 30 September 1991 established the Academy of Sci-ences of the Republic of Tatarstan (AST).

From the moment AST has been established, the number of its members has been constantly growing, and its organisa-tional structure has been further perfected. Today, it unites 33 full members, 55 correspondent members and 10 honorary members. The Academy incorporates seven divisions uniting scientists in the fi elds of biology, medicine, law, mathematics, physics, power engineering, and chemistry. The range of their research activities is quite broad and their work is aimed at solving urgent scientifi c and technical, social and economic, humanitarian and cultural issues the republic faces at the cur-rent stage of its development. Many developments by scien-tists of the Academy are at the level of the latest achievements in the world science and engineering and are recognised by the wide scientifi c community. The majority of studies are of applied character.

It became a good tradition to strengthen the ties between the Academy and scientifi c institutions of Russia, the CIS and non-CIS countries. The Academy is closely interacting with the Russian Academy of Sciences (primarily through the Ka-zan Centre of Science), Academies of Sciences of Kazakhstan, Ukraine, Byelorussia, Uzbekistan, Azerbaijan, Bashkortostan, Chuvashiya, Sakha (Yakutia), Tajikistan, R&D centres of Turkey, France and other countries, having signed 21 treaties and 5 agreements on scientifi c cooperation.

The Academy of Sciences of Tatarstan has founded and an-nually awards the State Award of the Republic of Tatarstan in

the fi eld of science and technology, fi ve awards named after prominent personalities, such as Sh. Marjani, Kh. Moushtari, G. Kamay, V. Engelhardt, A. Teregulov and two international awards, Zavoisky Award in physics (jointly with Kazan Physics-Technical Institute under KNC RAS and Kazan State University), and Arbuzovs’ Award in chemistry (jointly with the Institute for Organic and Physical Chemistry of KNC RAS).

Investor’s Guide12


1.11. LEADERSHIP OF THE REPUBLIC OF TATARSTAN

PRESIDENT OF THE REPUBLIC OF TATARSTANPresident of the Republic of Tatarstan is the head of state,

the supreme official of the Republic of Tatarstan.President of the Republic of Tatarstan acts as a guarantor of

protection of rights and freedoms of person and citizen in the Republic of Tatarstan, observance of the Constitution and laws of the Republic of Tatarstan, international agreements of the Republic of Tatarstan, the Treaty between the Russian Federa-tion and the Republic of Tatarstan “Treaty on Delimitation of Jurisdictional Subjects and Powers between Bodies of Public Authority of the Russian Federation and Bodies of Public Au-thority of the Republic of Tatarstan”, and agreements between the Republic Tatarstan and constituent entities of the Russian Federation.

On 25 March 2005, on presentation by President of the Rus-sian Federation Vladimir Putin, the State Council of the Repub-lic of Tatarstan vested Mintimer Shaimiev with authorities of the President of Republic Tatarstan.

CABINET OF MINISTERS OF THE REPUBLIC OF TATARSTAN

The Cabinet of Ministers of the Republic of Tatarstan (the Government of the Republic of Tatarstan) is an executive and administrative body of the Government of the Republic of Ta-tarstan.

The Cabinet of Ministers is formed by the President of the Republic of Tatarstan and is accountable to him.

The candidature of a Prime Minister is approved by the State Council (Parliament) of Tatarstan at the suggestion by the President.

Since 10 July 1998, the Prime Minister of the Republic of Ta-tarstan is Rustam Minnikhanov.

Rustam Minnikhanov — Prime Minister of the Republic of Tatarstan

Mintimer Shaimiev — President of The Republic of Tatarstan


13Investor’s Guide

2. Investment climate in the Republic of Tatarstan

2.1. ATTRACTION OF INVESTMENTThe Republic of Tatarstan is one of the most investment-fa-

vourable regions of the Russian Federation, which is confirmed by international rating agencies such as Standard & Poor’s that improved their long-term credit rating of Tatarstan in July 2007 up to “ВB-, positive outlook”, and Fitch, which assigned, in Feb-ruary 2007, “BB+, stable outlook” long-term rating to Tatarstan in foreign and national currency. Fitch increased its long-term credit rating of the Republic of Tatarstan from “BB+” up to “BBB-” and short-term rating in foreign currency from the level “B” up to “F3” in April 2008. Long-term rating on the national scale is confirmed at the level of “AA+ (rus)”.

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Investor’s Guide


Trends of international credit ratings of the Republic of Tatarstan in 2000–2007

2000 2001 2002 2003 2004 2005 2006 2007SD /-- CCC+/

posi-tive

CCC+/ posi-tive

B-/ stable

B-/ posi-tive

В/posi-tive

ВВ-/ stable

ВВ-/ posi-tive

Caa3/ stable

Caa1/ posi-tive

B1/stable

Ba3/ stable

Ba1/ stable

Ba1/stable

Ba1/ stable

Ba1/ stable

- - - - - BB/stable

BB/stable

ВВ+/posi-tive

Sectoral structure of foreign investment

According to Expert RA, a Russian rating agency, in 2006-2007, Tatarstan has been one of the «supporter regional lead-ers» in the general rating of Russian regions ranking 13th, and is among top ten Russian regions in several categories, includ-ing the 1st place for «minimum integral investment risk in Vol-ga Federal District”, the 3rd place for “high efficiency of region management”, the 7th place for “minimum investment risks in 2006-2007”, and the 5th place for “steadily low investment risk” during the last twelve years.

In 2006-2007, Tatarstan ranked 7th in the Russian Federa-tion in the investment risk (9th place in 2005–2006) and 10th in the investment potential. The republic as a part of the Volga Federal District is one of the most “safe” regions for foreign investors. This is largely due to the creation of the investor-friendly regulatory and legal environment, stable economic growth during the last 5 years by 6.8 % a year on the average, and high political stability.

Investment Climate in Russian Regions in 2006–2007 (According to Expert RA)

High potential — minimal risk (1A)1. St. — Petersburg

Medium potential — minimal risk (2A)2. Krasnodarsk Krai

Low potential — minimal risk (2A)3. Belgorod Region4. Lipetsk Region5. Kaliningrad Region

High potential — moderate risk (1B)6. Moscow Region7. Moscow8. Sverdlovsk Region9. Khanti-Mansi Autonomous Okrug

Medium potential — moderate risk (2A)10. Volgograd Region11. Rostov Region 12. Republic of Bashkortostan13. Republic of Tatarstan14. Perm Krai15. Nizhny Novgorod Region16. Samara Region17. Yamalo-Nenets Autonomous Okrug18. Chelyabinsk Region19. Irkutsk Region20. Kemerovo Region21. Novosibirsk Region22. Republic of Sakha (Yakutia)

Lower potential — moderate risk (3B1)23. Bryansk Region24. Vladimir Region25. Kaluga Region

INVESTMENTThe outcome of the economic reform in the Republic of

Tatarstan in recent years shows that attraction of foreign in-vestment is a crucial element of its continuous social and eco-nomic development.

Changes in Foreign Investment Received in the Republic of Tatarstan in 1993–2005

US$ million1993 1994 1995 1996 1997 1998 1999

Total 12.63 17.44 161.34 93.09 702.3 683.8 23

Direct 10.45 15.57 65.1 18.81 21.5 2.4 4.3

Other 2.18 1.87 96.24 74.28 680.8 681.4 18.7

Portfolio - - - - - -

2000 2001 2002 2003 2004 2005 2006 2007

Total 142.9 651.1 642.5 176.1 596.1 683.6 483.7* 1,679.3

Direct 53.6 8.5 2.5 77.1 79.2 54.5 134 417.9

Other 89.3 550.7 639.8 94.2 436.6 627.8 146.4 1,233.8

Portfolio - 91.9 0.2 4.8 80.3 1.3 203.3 27.5

According to the official data of the territorial body of the Federal Statistics Service in the Republic of Tatarstan, the


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Investor’s Guide

economy of the Republic of Tatarstan received in 2007 a total of US$ 1,679.3 million of foreign investments, which represents a rise by a factor of 3.5 as compared to the relevant period of 2006. Direct investment accounted for 24.9 % (US$ 417.9 mil-lion) of the total amount of investments received, and portfo-lio investment accounted for 1.6 % (US$ 27.5 million). The per-centage of other foreign investment was 73.5 % (US$ 1,233.8 million).

It should be noted that Tatarstan is a leader among re-gions of the Volga Federal District (VFD) in the amount of direct foreign investments received in 2007 (37.69 % of the corresponding capital investments in the VFD). Top three leading VFD regions in the received other investment are Sa-mara Region (US$ 2,275.2 million or 47.6 %), Republic of Ta-tarstan (US$ 1,233.8 million or 25.8 %), and Orenburg Region (US$ 452.0 million or 9.5 %). So, there VFT regions alone ac-counted for 82.9 % of the total investments attracted to VFD in the form of credits.

In the total amount of foreign investments received in 2007 in the VFD (US$ 5,972.6 million), the Republic of Tatarstan ac-counted for 28.1 % (2nd place). Foreign investments attracted in the republic are 3.9 times more as compared to the average level in the Volga Federal District.

The structure of foreign investment in 2007 broken down by economic activities was as follows: 58.1 % (US$ 975.8 million) in Construction, 29 % (US$ 485.6 million) in Manufacturing Activi-ties, 5.1 % (US$ 85 million) in Trade, 4.4 % (US$ 74.6 million) in Mining Operations, and 3.21 % (US$ 54 million) in Real Estate Activities.

In 2007, the main investment contributors were the Lux-embourg (40.2 % of the total raised foreign capital), France (20.8 %), Netherlands (18.2 %), Cyprus (5.5 %), Great Britain (4.4 %), Germany (4.3 %), Switzerland (3.6 %), USA (1.5 %), and Virgin Islands (1.3 %). Investments were also attracted from Austria, Liechtenstein, Belarus, Bulgaria, Turkey, Japan, Viet-nam, China, and Azerbaijan.

Total Foreign Capital Attracted in 2007

In general, the economy of Tatarstan accumulated US$ 3,187.8 million of foreign investments as of 1 January 2008.

Top 10 Russian regions (amount of raised direct foreign investment in 2007)

Place Russian Region US$ million

1 Moscow 15,656.1

2 Sakhalin Region 3,784.9

3 Moscow Region 2,076.5

4 St. — Petersburg 776.4

5 Tomsk Region 429.3

6 Republic of Tatarstan 417.9

7 Chelyabinsk Region 394.3

8 Leningrad Region 379.0

9 Rostov Region 333.9

10 Arkhangelsk Region 203.4

Industrial districtsIn 2005, with an active support from the Government of the

Republic of Tatarstan, the first republic’s industrial district was created. Its mission is to support the industrial and manufactur-ing complex in this territory by using the infrastructure of large industrial enterprises and attracting small and medium-sized businesses, which should give a further impetus to attraction of investments in the republic’s economy and expansion of a multilevel cooperation with foreign and domestic partners.

The first republic’s district-forming enterprise is OAO Nizh-nekamskneftekhim, one of the leading enterprises in its in-dustry in Russia and Europe. As of now, the number of district participants, i.e. small businesses, reached nine and another

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six innovation projects connected to polymer processing are at various stages of implementation.

Based on the leading enterprises of the petrochemical sec-tor, the KhimGrad Industrial Park was established in 2006. Ac-cording to the Tatarstan government plans, the Park will help create at least 10,000 new highly skilled jobs by 2012, and in-crease the number of processing and service enterprises of the sector which manufacture competitive products.

Advisory Board for Foreign InvestmentsTo further improve the investment climate in the Republic

of Tatarstan and interaction between bodies of state power and enterprises, and to ensure the timely resolution of is-sues related to attraction of foreign investments, an Advi-sory Board for Foreign Investments has been operating since 2005. It included the members of the Cabinet of Ministers of the Republic of Tatarstan, regional representatives of federal departments, and managers of joint ventures engaged in dw-wifferent sectors of the economy, i.e. direct participants of the investment activity.

The Advisory Board considers various questions arising dur-ing the implementation of investment activities in the repub-lic, including interaction of the Federal Migration Service in the Republic of Tatarstan with foreign investors implementing promising projects, provision of information to the business entities about investment conditions in the republic. Follow-ing the results of the second session, a workshop on the pros-pects of automotive components production in Tatarstan was organized and held in April 2007 in Naberezhnye Chelny.

Within the framework of the Board’s activities, the Ministry of Industry and Trade of the Republic of Tatarstan each year carries out a questioning of the republic’s enterprises and organisations with participation of foreign capital, similarly to global questioning of heads of 155 international investor companies making business in Russia which is organised by the Standing Committee of the Advisory Board for Foreign In-vestments in Russia.

In November 2007, the second questioning of the republic’s enterprises and organisations has been conducted. The infor-mation obtained is used by the Ministry for the development of measures aimed at lowering the barriers for business devel-opment in the republic.

2.2. COMMERCIAL ORGANISATIONS WITH FOREIGN INVESTMENTS

Special attention in the republic is paid to commercial or-ganisations with foreign investments. They are characterised by the use of high technologies, high performance, high yield on capital investment, and high wage level. The growing num-ber of these companies testifies to the investment appeal and

promising character of the Tatarstan economy, and promotes the integration of the republic into the global economic sys-tem.

At 1 July 2007, a total of 628 commercial organisations with foreign investment have been registered in the Uniform State Register of Enterprises and Organisations of Tatarstan (against 525 at 1 July 2006). Of these, 276 (43.9 %) are fully owned by foreign investors, other enterprises were created with participation of capital from the republic’s and foreign organisations.

The geographical structure of commercial organisations with foreign investments shows that the enterprises with par-ticipation of investors from Turkey, Cyprus, Uzbekistan, the USA, Germany, and Switzerland are the best contributors to the total number of the registered enterprises. In the republic, there is 314 Turkish and Tatarstan-Turkish joint venture com-panies, 52 enterprises with participation of Cyprian firms, 46 with participation of firms from Uzbekistan, 39 with partici-pation of US companies, 29 with participation of firms from Germany, and 19 Tatarstan-Swiss joint venture companies.

Breakdown of Commercial Organisations with Foreign Investment by Countries, as 1 June, 2007

The total number of countries participating in the creation of commercial organisations in the territory of the republic is 57 non-CIS and CIS countries.

2.3. SPECIAL ECONOMIC ZONE OF INDUSTRIAL PRODUCTION TYPE IN THE YELABUGA DISTRICT OF THE REPUBLIC OF TATARSTAN

The Federal law No 116 “On Special Economic Zones in the Russian Federation” of 22 July 2005 defined a new format of special economic zones as an effective tool for the intensifica-


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tion of investment activities in Russian regions.On 28 November 2006, based on the results of the competi-

tion held by the Government of the Russian Federation when bids from 72 regions of the country were studied, a decision was made to establish a special economic zone of industrial production type (SEZIPT) in the Yelabuga District of the Re-public of Tatarstan.

The choice made by the Federal Government in favour of the Republic of Tatarstan as one of the two first sites for cre-ation of special economic zones of industrial production type is explained by the objective factors: successful experience in encouraging the investment activity in this district of the republic, favourable geographical location, and a well-devel-oped industrial production and transport infrastructure. An in-ternational passenger and cargo airport, Begishevo, is located 20 km from the Special Economic Zone. The Zone has access to the federal motor-road Moscow-Kazan-Ufa-Chelyabinsk. There are river cargo ports in the nearby cities of Naberezhnye Chelny and Nizhnekamsk, which provide access to the com-mon deep-water transport system of the European part of Rus-sia and to the Black and Baltic Seas.

On 20 November 2007, the official opening of SEZIPT Al-abuga took place.

The special economic zone occupies an area of 20 square kilometres in the Yelabuga District of the Republic of Tatar-stan. The territory of SEZIPT Alabuga is divided into the certain number of land lots, or modules. The area of the module can be 5, 10, 20, and more hectares.

All necessary communications are brought to each module: motorways, electricity, heating network, gas, water, sewage, high-speed communication lines, etc., and a resident receives the junctions of these utilities near its land lot.

Foreign companies wishing to establish hi-tech facilities in Russia can benefit from the following material advantages of-fered in the SEZIPT.

First, there are unique conditions to create export-oriented and import-substituting facilities to process plastics into fin-ished products, since the Republic of Tatarstan manufactures virtually all polymers necessary for plastics production: over 500,000 MT of polyethylene, including the Russia’s first pro-duction of linear polyethylene, 280,000 MT of polypropylene, 100,000 MT of polystyrene, over 500,000 MT of synthetic rub-bers. Since 2007, some 70,000 MT of ABS plastics and 50,000 MT of polycarbonate will also be produced in the republic. All these polymers can be purchased at highly competitive prices, which are much lower than in international market, while Rus-sian market of plastic products is developing at a quick pace.

Second, the area is very favourably located for those who is engaged in production of auto components and is interested in the implementation of the complete-cycle automotive as-sembly projects. This focus of the SEZIPT is due to the fact that

the Russian automotive market is on the sharp rise. According to experts, the annual market of auto components exceeds US$ 3 billion. Besides, the major Russian automotive manufac-turers such as VAZ, GAZ, KamAZ, etc. are nearby, the SEZIPT is located in the very centre of the 400-kilometre circle, which creates considerable logistical advantages.

At the same time, there is also a good potential for placing the enterprises engaged in other sectors, for example, instru-ment-making, electronics, wood-working, etc.

To become a SEZIPT resident, a company would sign an agreement with a body administering the Special Economic Zone on conducting the industrial / production activity and to invest not less than € 10 million to its production facilities lo-cated in the territory of the Special Economic Zone, including at least € 1 million during the first year of development.

One of the most interesting aspects of the Special Economic Zone is that the residents are granted considerable tax privi-leges and steady rules of business for the entire period of exis-tence of the Special Economic Zone, i.e. for 20 years.

The enterprises registered in the territory of the Special Eco-nomic Zone shall enjoy a number of preferences. In particular, the free customs area treatment, which means that foreign equipment is installed and used within the Special Economic Zone without payment of customs duties and VAT. Besides, they shall not pay export duties for their products. The resi-dents of the Special Economic Zone shall be exempted from the property and land taxes.

In addition to that, the residents of the Special Economic Zone shall be exempted from paying a number of local taxes for the period of 10 years: property tax, land tax, and transport tax, while the profits tax is lowered by 4 %.

Comparative table describing the taxation in the Republic of Tatarstan and in the territory of the SEZIPT in Yelabuga District

Tax Rate Distribution by budgets

Federal Regional Local

1. Profit Tax 24.0 % 6.5 % 17.5 % -

For SEZIPT Residents 20.0 % 6.5 % 13.5 % -

2. Value Added Tax 18.0 % 18.0 % - -

For SEZIPT Residents 18.0 % 18.0 % - -

3. Property Tax 2.2 % - 1.1 % 1.1 %

For SEZIPT Residents 0 % - 0 % 0 %

4. Land tax 1.5 % - - 1.5 %

For SEZIPT Residents 0 % - - 0 %

5. Transport Tax Rates depend on type and horse-power capacity of the vehicle

- Rates depend on type and horse-power capacity of the vehicle

-

For SEZIPT Residents 0 % - 0 % -

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Being residents of the Special Economic Zone of Industrial Production Type, the taxpaying organisations have the right to apply accelerated depreciation in respect of their fixed assets using the inflation index, but not more than 2;

Expenses on research and development activities (includ-ing those that yield no positive results) incurred by organisa-tions registered and operating in the territory of the Special Economic Zones established in accordance with legislation of the Russian Federation, are recognised in the accounting (tax) period over which such expenses were incurred in the amount of actual expenditures.

In respect of the SEZIPT residents, restrictions were removed for carrying forward the amounts of losses incurred in the pre-vious tax periods.

Since SEZIPT Alabuga is a free customs area, a customs ter-minal with an area of 60 hectares has been constructed. The customs terminal will receive cargo from highways and rail-roads. For railroad cargo, a container site is provided where up to 600 containers can be stored at the same time and 250 containers can be handled per day. With this purpose, the SEZ-IPT territory has its own branch railway. From SEZIPT entrance directly to the future residents’ sites the up-to-date network of roads is built which has sufficient capacity for meeting the needs of manufacturers.

In addition, an up-to-date office and business centre with a floor space of 11,000 square metres has been built to accom-modate, in addition to SEZIPT management, the various ser-vices which are necessary for the efficient work of investors: customs, tax authorities, a bank, a postal office, a first-aid post, etc. Residents will enjoy a 250-seat conference hall, an exhibi-tion centre, restaurant facilities, a fitness club, etc. Some 5,000 square metres of office premises will be leased out.

When receiving the resident status, the land will be granted on favourable terms. After the agreement on conducting the industrial / production activity in the SEZIPT territory is signed, investors can rent the ground on conditions of 2 % from the ca-dastral value of the land, i.e. at the price of some 3 roubles per square metre, which is specified by the federal law. When in-vestment conditions are fulfilled, they can buy out the rented ground at the price of some 69 roubles per square metre.

Filing the documents with the Territorial Body of the Federal Agency for Special Economic Zones Management for the right to conduct industrial production activities in the SEZIPT terri-tory is based on the “single window” approach.

As of today, residents registered with SEZIPT Alabuga are implementing large projects in the fields of automotive indus-try, petrochemical sector, construction industry, and engineer-ing equipment. In addition to the already registered residents, there are a number of companies planning in the near future to place in this territory their production facilities in the field of automotive components, mechanical engineering, wood-working, chemistry, etc.

Register of SEZIPT Alabuga Residents as of 1 March 2008

No. Company name Project imple-mented

Amount of investment

1. Severstal Auto-Yelabuga

Fiat Ducato commercial vehicles

US$ 140 million

2. ZAO Polimatiz Polypropylene products US$ 50 million

3. OOO Rockwool-Volga

Mineral wool US$ 105 million

4. ZAO Severstal Auto-Isuzu

Trucks US$ 14.5 million

5. ZAO Technical Equipment Plant

heat pumps and ele-ments of climatic control systems

US$ 21.6 million

6. ZAO Septal Equipment for local and small sewage systems

€ 28 million

7. OOO P-D Tatneft-Alabuga Steklovolokno

Fibreglass and products based on it

€ 71.5 million

8. TOTAL Over US$ 470 million

In 2008, the production of FIAT Ducato cars is launched by Severstal Auto-Yelabuga, while ZAO Severstal Auto-Isuzu started the production of ISUZU commercial vehicles. By the end of 2008, the new joint venture company is planning to manufacture in SEZIPT industrial site not less than 7,500 ISUZU vehicles.

ZAO Polimatiz is planning in the 2nd quarter of 2008 to put into operation a production line for Spunbond nonwoven ma-terial. The total amount of investment under the Polimatiz de-velopment programme is estimated at above US$ 85 million.

Prospects of SEZIPT Alabuga developmentAccording to the long-term strategy of development, con-

struction of all infrastructural facilities (of utilities, customs, and business nature) should be completed by the end of 2011. To meet the needs of residents in electric power, the construc-tion of Kama-500 substations rated at 500 MW is planned out-side the territory of SEZIPT Alabuga.

By 2011, it is planned to open at SEZIPT Alabuga the facili-ties of 40 resident companies manufacturing cars, buses, auto-motive components, heat pumps, building machinery, hi-tech electronic equipment, aircraft components, oil products, poly-mers, building materials, household chemical goods, pharma-ceutical products, etc.

Placing the above facilities in the territory of SEZIPT Al-abuga would create some 30,000 new jobs and would bring investments into the country’s economy in the amount of no less than US$ 2 billion.


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2.4. ALABUGA INDUSTRIAL SITEWith a view to develop the investment activities in the

territory of the Alabuga Industrial Site, the Government of the Republic of Tatarstan adopted the Resolution No. 540 of 13.10.2003 «On Creation of the State-Run Institution — Di-rectorate for Investment Programmes» in the territory of the Alabuga Industrial Site (DIP in TIS Alabuga).

DIP in TIS Alabuga was established with the aim of creating the best favourable legal, investment and tax treatment to en-able the achievement of the following objectives:

• attraction of investment to establish modern automo-tive production;

• production of import-substituting products including such used in automotive production;

• creation of export oriented production facilities;Over 30 enterprises are currently engaged in industrial ac-

tivities in the territory of the Industrial Site Alabuga. Of them, 16 enterprises are subjects of investment activities imple-menting investment projects and receiving tax privileges in accordance with laws of the Republic of Tatarstan on invest-ment activities and the republic’s budget. Within the last five years, the enterprises working at the industrial site invested some US$ 128 million in the development of their projects and infrastructure.

The 2007 indicators of production activities of the enter-prises working in the Industrial Site Alabuga exceed the same indicators of 2006 by over 30 %. The total sales of industrial products by the enterprises of the industrial site estimated to be over US$ 387 million in 2007, which is a 37.4 % increase compared to 2006.

Despite the fact that the main contributors to the growth of production volumes are Yelabuga Motor Works and Trade House MTZ-YelaZ (a total of about 60 % of the total products and services sold by enterprises working in the industrial site), virtually all enterprises recorded the growth of their produc-tion indicators.

InfrastructureBy now, the main facilities of external electric, gas and water

supply systems have been built in the territory of the Alabuga Industrial Site, along with a network of basic utility lines. An up-to-date communication system provides good-quality lo-cal, long-distance and international telephone communica-tions, including satellite, e-mail, and access to the Internet.

The high degree of construction completeness of the ma-jor infrastructure facilities, the use of modern, highly efficient technologies with cost saving materials in their construction to ensure the high quality of erected buildings and facilities would enable the clients to put the primary facilities into op-eration in a very short period thus providing necessary condi-

tions for successful work of companies doing business in the territory of the Alabuga Industrial Site.

TaxationThe companies located in the territory of the Alabuga In-

dustrial Site enjoy substantial tax privileges in what refers to the land tax, property tax, transportation tax, and profit tax.

This would allow the enterprises to cut production costs and raise the competitiveness of goods manufactured thus increasing the profitability of production.

2.5. INNOVATION ACTIVITIES IN THE REPUBLIC OF TATARSTAN

The analysis of the innovation processes taking place in Ta-tarstan shows that the republic is one of the most active par-ticipants of the innovation process among the regions of the Russian Federation and the Volga Federal District.

Now the share of the innovation-active enterprises in Tatar-stan is higher than on the average throughout Russia (12.5 % in Tatarstan against average 9.0 % in Russia), and the republic is quite high in this list, ranking fourth.

For the last 5 years alone the contribution of innovation products in the Gross Regional Product of Tatarstan grew by 9.5 %. It is planned that by implementing the Programme for Innovation Activity Development the GRP growth due to inno-vation products will be not less than 2 % a year by 2010.

Main objectives of the innovation activity in the Republic of Tatarstan:

— Integrated solution of issues related to accelerated transfer of results of scientific research in different fields of science and technology to the real sector of the economy and their commercialisation;

— Creation of conditions for the implementation of all stages of the innovation process, starting from research (development) and examination of a new product (technology, work, service) to the manufacture of a com-mercial product and its replication;

— Assisting in the establishment and support of innova-tion centres, special funds, joint ventures, concerns, associations, small businesses, firms and other entities of different patterns of ownership involved in the implementation of results of fundamental and applied scientific research, technology, medical, agricultural developments, as well as the results of implementation of innovation projects in the socio-economic sphere and in the field of law.

Attaining these goals will be based on the integration of efforts of the government and the entrepreneurial sector of the economy, accelerated introduction of financial investment

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mechanisms for attraction of Russian and foreign capital into the fields of science and technology.

Tatarstan was one of the first among regions of Russia to organise the work on the creation of its own innovation sys-tem. Within the framework of the Programme for Innovation Activity Development in the Republic of Tatarstan until 2010, a network of technoparks is being created in the republic in 2 basic directions: commercialisation of scientific developments and innovation development of industrial production.

Within this Programme the network consisting of 14 tech-noparks has now been created which provide a complex way of commercialisation of scientific developments: from idea to ready products being of demand in the market.

The republic currently works on the creation of a technopark in the sphere of high technologies. The volume of investments for its creation will be US$ 256 million under conditions of par-ity financing by federal and republic’s budgets.

At present, the Republic of Tatarstan has created the neces-sary infrastructure for the development of innovations, which includes the following institutional elements of the innovation activity processing chain in accordance with international ex-perience.

Governmental Commission of the Republic of Tatarstan for Scientific, Technology, and Innovation Policy (Resolution of the Cabinet of Minis-ters of the Republic of Tatarstan No. 385 of 23.08.2004 “On Approval of Composition of Governmental Commission for Scientific, Technology, and Innovation Policy”)

The main objectives of the Commission are:— conducting the uniform state policy in scientific,

technical, industrial, and innovation fields;— coordinating the activities of the republic’s executive

bodies with those of economic entities, institutions, scientific research and other interested organisations, as well as ensuring their efficient interaction with bodies of federal power with the aim of developing scientific, technical, and innovation potential of the republic under market economy conditions; state regulation and sup-port of competitive R&D work, and special republic’s and federal scientific, technical, and innovation programmes;

— identifying the strategic trends in scientific and technological progress having priority for the Republic of Tatarstan, the scientific basis for which should be elaborated by the Academy of Sciences of the Republic of Tatarstan, other scientific organisations and public unions of the republic in the interests of the Republic of Tatarstan and the Russian Federation;

— coordinating the activities of the republic’s bodies of executive power related to scientific and technological cooperation at the state level, etc.

Investment and Venture Fund of the Republic of Tatarstan (Resolu-

tion of the Cabinet of Ministers of the Republic of Tatarstan No. 498 of 17.10.2004 “On the Establishment of State-Run Non-Commercial Or-ganisation “Investment and Venture Fund of the Republic of Tatarstan”)

The basic tasks of the Fund are:— support of innovation activities, preparation and

mastering of production of conceptually new kinds of products and technologies through financing of construction, reconstruction and technical retooling of facilities by methods permitted by law and through creation of unique research and test installations;

— participation in the development, examination and contest-based selection and implementation of in-novation projects subject to implementation with the support of the Fund and aimed at structural reform of the economy;

— support in construction and reconstruction of hi-tech facilities, as well as support of scientific and technologi-cal research and development work.

Sectoral centres (technology parks) on the basis of Kazan State Technological University, Kazan State Technical University, and Kazan State University.

To enhance the innovation activity in the Republic of Tatar-stan, the republic implements a Programme for Innovation Ac-tivity Development in the Republic of Tatarstan for 2004-2010, approved by Resolution of the Cabinet of Ministers of the Re-public of Tatarstan No. 121 of 12.03.2004.

The mission of this Programme is to ensure stable and balanced economic development and increase in the living standards of people in the republic through creation of con-ditions for growth of innovation level and competitiveness of products, introduction of innovative products in domestic and foreign markets, and substitution of imports in the domestic market.

The main tasks of the Programme are:— to integrate resources and organisational structures

available in the republic and their focusing on activities in priority-driven innovation areas;

— to ensure the innovation development of hi-tech sectors of the republic’s economy through creation and development of sectoral technical and technological basis for the development and introduction of hi-tech products to production in the form of industrial districts, technopolises, and technology parks (including the In-novation Technology Park “Idea”);

— to create conditions for the establishment of a pro-gressive technological structure and favourable innova-tion environment in the republic through the creation of innovation infrastructure, implementation of institution-al, resource / credit, tax / budgetary, and tariff policy;


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— to increase the demand for innovations and attract private capital to the financing of sectoral projects aimed at technological modernisation of the manufac-turing industry and other industrial sectors;

— to involve scientific and technical potential of the republic into the innovation process;

— to cut the transaction costs of innovation processes in the republic also through the minimisation of risks related to implementation of innovation projects by us-ing the mechanisms of insurance coverage.

2.6. INVESTMENT LEGISLATION OF THE REPUBLIC OF TATARSTAN

Basic laws and other regulatory legal acts related to the implementation of investment activities in the Republic of Ta-tarstan are as follows:

Federal Legislation:• Federal Law No. 160-FZ of July 9, 1999 «On Foreign

Investments in the Russian Federation» (as amended on March 21, July 25, 2002, December 8, 2003, July 22, 2005, and June 3, 2006).

• Federal Law No. 39-FZ of February 25, 1999 «On Invest-ment Activity in the Russian Federation Implemented in the Form of Capital Investments» (as amended on January 2, 2000, August 22, 2004, February 2, 2006, and December 18, 2006).

• Federal Law No. 225-FZ of December 30, 1995 «On Product Sharing Agreements» (as amended on January 7, 1999, June 18, 2001, June 6, 2003, July 29, 2004, and December 29, 2004).

• Resolution of the Government of the Russian Federation No. 883 of July 23, 1996 «On Privileges for Payment of Import Custom Duty and Value Added Tax in Respect of Goods Imported by Foreign Investors as a Contribution to Charter (Pooled) Capital of Enterprises with Foreign Investments», where it is not contradictory to the Tax Code of the Russian Federation.

Republic’s Legislation:• Law No. 2180-XII of the Republic of Tatarstan of July

19, 1994 «On Foreign Investments in the Republic of Tatarstan» (as amended on June 27, 2001, September 23, 2003, and January 22, 2008).

• Law No. 1872 of the Republic of Tatarstan of November 25, 1998 «On Investment Activity in the Republic of Tatarstan» (as amended and added on June 24, 2003 and June 18, 2005).

• Resolution No. 123 of the Cabinet of Ministers of the Republic of Tatarstan of March 11, 2001 «On Additional Measures of State Support for Enterprises (Organisa-

tions) of the Republic of Tatarstan Implementing Invest-ment Projects» (as amended on June 15, November 26, 2001, and December 28, 2002).

• Resolution No. 780 of the Cabinet of Ministers of the Republic of Tatarstan of October 16, 1997 «On Additional Measures for Increasing the Investment Attractiveness of Leading Enterprises of the Republic of Tatarstan».

Legislation of the Republic of Tatarstan is aimed at creating additional guarantees to foreign investors within the terms of reference of the Republic of Tatarstan.

In accordance with the Law No. 2180-XII of the Republic of Tatarstan of July 19, 1994 «On Foreign Investments in the Republic of Tatarstan» (as amended on June 27, 2001, September 23, 2003, and January 22, 2008), a foreign investor in the territory of the Republic of Tatarstan is granted with full and unconditional legal protection of its rights and interests, which is provided by legislation of the Republic of Tatarstan, Russian Federation, international treaties, and this Law. The adoption of this Law had a positive impact on successful resolution of regional investment policy tasks and on creation of a favourable investment cli-mate because of the fact that a special emphasis was put on the further development of legal guarantees for foreign investors.

An adoption of the Law of the Republic of Tatarstan «On Introduc-tion of Amendments and Additions to the Law of the Republic of Tatar-stan «On Foreign Investments in the Republic of Tatarstan»» (No. 901 of 27.06.2001) was necessitated by bringing the legislation of the Republic of Tatarstan in conformity with federal legislation. The Law contains the definition of foreign investments as a contribution of foreign capital to an object of entrepreneurial activity in the form of objects of civil rights belonging to foreign investor, unless such objects of civil rights are withdrawn from circulation or limited in circulation in the Russian Federation in accordance with federal acts, including money, securities, other property, proprietary rights having monetary value, exclusive rights to the results of intellectual activity, and services and informa-tion.

The Law of the Republic of Tatarstan «On Introduction of Amend-ments to the Law of the Republic of Tatarstan «On Foreign Investments in the Republic of Tatarstan»» (No. 6-ZRT dated January 22, 2008), added Article 16 providing for an opportunity of signing an investment agreement between the Government of the Republic of Tatarstan and a foreign investor. It will ensure an additional incentive and guarantee for the foreign investor implementing an investment project, because the rights and duties of both parties will be precisely recorded in this agree-ment, together with responsibilities for their non-fulfilment.

This Law is a unified document consisting of the body of investment law regulations in the republic’s legislation, which deal with activities of foreign investors. Adoption of this law, in turn, will allow eliminating the fragmented and unsystematic character of the legal acts regulating foreign investments.

2.7. RIGHTS OF INVESTORS AND THEIR PROTECTION

The Law No. 2180-XII of the Republic of Tatarstan of July 19, 1994 «On Foreign Investments in the Republic of Tatarstan» (as

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amended on June 27, 2001, September 23, 2003, and January 22, 2008) provides for the following State guarantees of pro-tection of foreign investments:

• The guarantee of legal protection of foreign investors;• The indemnification and compensation for damages to

foreign investors;• The guarantee of use and transfer of profits, incomes,

and other legally acquired amounts;• The guarantee upon termination of investment activities;• Financial support of foreign investors;• The guarantee against unfavourable changes in legisla-

tion of the Republic of Tatarstan.Article 14 of the Law establishes measures of State support

of foreign investors in the territory of the Republic of Tatarstan where a body of executive power of the Republic of Tatarstan performs information support of the foreign investor and full support of the investment projects being implemented in pri-ority branches of economy of the Republic of Tatarstan.

In accordance with Article 8 of this law, in case the new laws and other regulatory legal acts of the Republic of Tatar-stan enter into force which impair the conditions of activity of foreign investors and commercial organisations with foreign investments, then, for the payback period of the investment project, but not more than for seven years, the conditions shall be apply to them which were determined by an investment agreement or other agreement (arrangement, contract) and legislation in force at the moment when the regulatory legal acts which impair the conditions of activity of investors were adopted.

The Law No. 1872 of the Republic of Tatarstan of November 25, 1998 «On Investment Activity in the Republic of Tatarstan» (as amended and added on June 24, 2003) established the provision pursuant to which the State guarantees the stability of rights of subjects of an investment activity. In case any legislative acts are adopted with provisions limit-ing the rights of subjects of an investment activity, which were granted to them by agreements concluded prior to adoption of these acts, the conditions of these agreements (contracts) hold true for their entire term.

In addition, in accordance with the Resolution No. 123 of the Cabinet of Ministers of the Republic of Tatarstan of March 11, 2001 «On Additional Measures of State Support for Enter-prises (Organisations) of the Republic of Tatarstan Implement-ing Investment Projects», the enterprises (organisations) of the Republic Tatarstan which attract bank credits for implementa-tion of investment projects in priority areas of the republic’s economy are provided with State support through subsidies granted as a special-purpose assignment for payment for a part of interests envisaged by conditions of the credit agree-ment.

For the purposes of facilitating the investors’ access to in-formation on the financial and economic standing of enter-

prises, the Resolution No. 780 of the Cabinet of Ministers of the Republic of Tatarstan of October 16, 1997 «On Additional Measures for Increasing the Investment Attractiveness of the Leading Enterprises of the Republic of Tatarstan» established the provision pursuant to which the leading enterprises of the Republic of Tatarstan should submit their external financial statements brought in conformity with requirements of inter-national standards.

In pursuance of the Law of the Republic of Tatarstan No. 1872 dated November 25, 1998 «On Investment Activity in the Republic of Tatar-stan» (as amended on June 17, 2004) and with a view of implementing measures for investment activities at the industrial site of production association «Yelabuga Compact Car Works», the Resolution No. 540 of the Cabinet of Ministers of the Republic of Tatarstan dated November 13, 2003 established a state-run organisation, Directorate for Invest-ment Programmes at the “Alabuga” Industrial Site. The Directorate’s mission is to create favourable conditions for conducting investment activities at the Site.

2.8. PRIVILEGES GRANTED TO FOREIGN INVESTORS AND COMMERCIAL ORGANISATIONS WITH FOREIGN INVESTMENTS IN THE REPUBLIC OF TATARSTAN

Changes in the rates of taxes, insofar as amounts of taxes payable to the budget of the Republic of Tatarstan are con-cerned, including the reduction of such rates, are established on the basis of the corresponding laws of the Republic of Ta-tarstan adopted by the State Council of the Republic of Tatar-stan.

The legislation of the Russian Federation, for the purposes of State support of the implementation of commercial highly efficient investment projects which have passed the competi-tive selection, envisages the allocation of funds from the feder-al budget granted on a returnable basis or on conditions of the fixing in the State ownership of a part of shares of joint-stock companies being created, or by granting State guarantees of the reimbursement of a part of financial resources contributed by investor in the event of non-fulfilment of the investment project through no fault of investor. State guarantees of the Russian Federation are granted within the limits of resources, which are envisaged for these purposes in the federal budget for the next year.

The Republic of Tatarstan, as a constituent entity of the Rus-sian Federation, may also grant, in accordance with the Budget Code of the Russian Federation, State guarantees for top-prior-ity investment projects.


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Investor’s Guide

PRIVILEGES GRANTED TO PARTICIPANTS OF INVESTMENT ACTIVITIES OF THE REPUBLIC OF TATARSTAN

1. Investment activity entities who have signed agree-ments on implementation of investment projects with an authorised body of the Cabinet of Minister of the Republic of Tatarstan are exempted from federal taxes in the part payable to the budget of the Republic of Tatar-stan, and the republic’s taxes in accordance with legisla-tion of the Russian Federation for taxes and charges.

2. Tax privileges to investment activity entities are granted for the payback period of the investment project, but they may not exceed seven years from the moment of commencing the investment. Investment activity enti-ties implementing projects in the field of mechanical engineering may be granted tax privileges for the period of up to thirteen years from the moment of commenc-ing the investment.

3. The State Council of the Republic of Tatarstan can grant certain categories of taxpayers a privilege in the form of a reduced rate of a tax payable to the budget of the Republic of Tatarstan, which cannot be lower than 13.5 per cent.

The Law of the Republic of Tatarstan «On Investment Activity in the Republic of Tatarstan» No. 1872 dated 25 November 1998 (as amended on June 24, 2003 No. 18-ZRT, as amended on July 18 2005 No. 85-ZRT), Tax Code of the Russian Federation (Part Two) dated 05 August 2000 No. 117 FZ (as in force on November 2 2004), Article 284, clause 1.

1. Tax on profit

System of Tax Deductions and Privileges

Distribution of tax payments, in per cent of the taxable base

Tax rate Payable to Rus-sian budget

Payable to Tatarstan budget

Payable to local budget

24 6.5 17.5 -

The tax base is determined without taking into consider-ation the following income:

1) assets and (or) property rights, obtained in the form of payments (contributions) to the authorised (reserve) capital (fund) of the organisation (including capital in excess of par);

2) the property and (or) property rights obtained within the original contribution by a member of an economic entity or partnership (his assign or legal successor) upon his leaving (withdrawal from) the economic entity or partnership or upon distribution of the property of the economic entity or partnership under liquidation among its members;

3) property, property rights and (or) non-property rights with pecuniary valuation obtained within the original contribution by a contracting party of a special partner-ship (a contract on joint activity) or his legal successor

in case of separation of his share from the common property of the contracting parties or division of such property;

4) property obtained by organisations under special-purpose financing:

• as budgetary assets of all levels, state extra-budgetary funds, allocated to budget-funded institutions accord-ing to the profit-and-loss estimate of a budget-funded institution;

• as grants obtained;• as investments obtained as a result of investment

tenders (auctions) in compliance with the procedure established by legislation of the Russian Federation;

• as investments from foreign investors for financing capi-tal investments for production purposes on condition of their use within one calendar year from the moment of their receipt;

Tax Code of the Russian Federation (Part Two), Article 251, clause 1.The following expenses shall not be taken into consider-

ation when determining the tax base:1) sums of dividends paid by a tax payer and other sums

of distributed profits;2) a contribution to the authorised (reserve) capital, a

contribution to a special partnership;3) expenses on acquisition and / or creation of a depreci-

able property;Tax Code of the Russian Federation (Part Two) dated 05.08.2000 No.

117-FZ (as amended on November 2, 2004) Chapter 25, Article 270

2. Value added tax

System of Tax Deductions and Privileges

Distribution of tax payments, in per cent of the taxable base

Tax rate Payable to Rus-sian budget

Payable to Tatarstan budget

Payable to local budget

18 18 - -

The import of the following goods is not subject to taxa-tion:

1) materials for production of medical immune-biological medicines for diagnostics, prevention and / or treatment of infectious diseases (in compliance with the list ap-proved by the Government of the Russian Federation);

2) products being a result of economic activities of Russian organisations on plots of land, which are the territory of a foreign state, with the right of land use belonging to the Russian Federation on the basis of an international treaty;

3) processing equipment, its components, and spare parts imported as a contribution to the authorised (reserve) capitals of organisations;

4) currency of the Russian Federation and foreign

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Investor’s Guide


currency and banknotes being a legal instrument of payment (except such used for numismatic purposes) as well as securities, i.e. shares, bonds, certificates, promis-sory notes.

The following operations are not subject to taxation:Sale, in the territory of the Russian Federation, of services

on leasing of premises by a lessor to foreign citizens or organi-sations accredited in the Russian Federation. This provision is applied in case when the laws of the corresponding foreign state prescribe the similar procedure in relation to citizens of the Russian Federation and Russian organisations accredited in such foreign state, or in case when such provision is stipu-lated by an international treaty of the Russian Federation. The list of foreign states, the citizens and / or organisations of which are subject to application of provision, is set up by a federal body of executive power regulating the relationships between the Russian Federation and foreign states and international or-ganisations, jointly with the Ministry of the Russian Federation on Taxes and Levies (subject to the Federal Law as amended on 29.05.2002 No. 57-FZ);

Sale (as well as transfer, execution and provision for own needs) in the territory of the Russian Federation of:

1) the shares in the authorised (reserve) capital of organi-sations, the shares in cooperative societies and mutual funds, securities and futures instruments (including forward contracts, futures contracts and options);

2) the goods placed under the customs treatment of duty free shops;

Tax Code of the Russian Federation (Part Two), Chapter 21, Article 149, clause 2, clause 1, Article 150, clause 1

When exporting goods from the customs territory of the Russian Federation taxation also applies to placement of goods under the customs treatment of a customs warehouse, free warehouse or free customs zone for purposes of further export of such goods (including products of their reprocess-ing) in compliance with the customs export regulations.

Tax Code of the Russian Federation (Part Two), Chapter 21, Article 151, clause 2

3. Property taxExemption from taxes is granted to the property of the tax

payers implementing investment projects in compliance with the Law of the Republic of Tatarstan «On Investment Activity in the Republic of Tatarstan» in the territory of the Alabuga Industrial Site of Yelabuga Automotive Works located in the Yelabuga District of the Republic of Tatarstan;

The Law of the Republic of Tatarstan «On Corporate Property Tax» (in the wording of the Laws of the Republic of Tatarstan dated 17.05.2004 No. 32-RT dated 11.10.2004 No. 49-ZRT (as amended on 25.11.2004), dated 25.11.2004 No. 55-ZRT, dated 28.11.2005 No. 113 — ZRT, dated 10.02.2006 No. 6-ZRT, dated 06.04.2006 No. 27 — ZRT) dated November

28, 2003 No. 49-ZRT (in the wording of the Laws of the Republic of Ta-tarstan dated 19.03.2004 No.17-ZRT dated 17.05.2004 No.32-ZRT dated 11.10.2004 No.49-ZRT, dated 25.11.2004 No. 55-ZRT, dated 28.11.2005 No. 113-ZRT, dated 10.02.2006 No. 6-ZRT, dated 06.04.2006 No. 27 — ZRT, dated 25.07.2007 No. 32-ЗРТ).

4. Excise taxesThe following operations are not subject to taxation:Sale of excisable goods placed under the customs treat-

ment of export outside of the Russian Federation.Tax Code of the Russian Federation (Part Two) dated 05.08.2000 No.

117-FZ, Chapter 22, Article 183, Clause 1.The following goods are not subject to taxation:Excisable goods imported into the customs territory of the

Russian Federation and put into free circulation, further used as a raw material for production of excisable goods.

Not subject to taxation are the sums of advance payments paid upon acquisition of excise tax stamps or upon acquisition of special regional stamps for excisable goods subject to man-datory marking, are not subject to taxation.

Tax Code of the Russian Federation (Part Two) dated 05.08.2000 No. 117-FZ, Article 200

5. Import customs dutiesThe following goods are exempted from duties:Goods imported into the customs territory of the Russian

Federation as a gratis aid (assistance) as well as goods import-ed into the above-mentioned territory and / or exported from such territory for charitable purposes by states, international organisations, governments, including for purposes of provid-ing technical aid (assistance);

Equipment, including machines, mechanisms and materials coming with the relevant equipment and component items (except excisable) imported into the customs territory of the Russian Federation against credits granted by foreign states or international financial organisations under international trea-ties of the Russian Federation. Exemption from the customs duty payment is only granted if stipulated by international treaties of the Russian Federation.

The Law of the Russian Federation dated May 21, 1993 No. 5003-I «On the Customs Tariff» (as amended on August 7, November 25, De-cember 27, 1995, February 5, 1997, February 10, May 4, 1999, May 27, December 27, 2000, August 8, December 29, 30, 2001, May 29, July 25, 2002, July 7, 2003, December 8, 23, 2003, May 7, June 29, August 22, 2004, July 1, November 8, December 20, 2005, July 27, November 10, 2006, December 1, 3, 2007), Article 35

The trade policy of the Russian Federation within its cus-toms territory allows the granting of tariff preferences in the form of repayment of the previously paid duty, decrease of the duty rate and exemption, in exceptional circumstances, from the duty in respect of:

1) the goods exported from the customs territory of the


25


Investor’s Guide

Russian Federation within the limits of the volumes of export deliveries for federal state needs, determined in compliance with the legislative acts of the Russian Federation;

2) the goods imported into the customs territory of the Russian Federation as a contribution to the authorised funds of enterprises with foreign investments and foreign enterprises, as well as certain kinds of goods pro-duced and exported by such enterprises, in cases stipu-lated by product sharing agreements concluded by the Government of the Russian Federation or a state body authorised by it in compliance with laws of the Russian Federation, or within a foreign investments payback period in compliance with the procedure established by the Supreme Council of the Russian Federation.

3) the goods exported as packaged supplies for construc-tion of projects on investment cooperation abroad in compliance with intergovernmental agreements, of which the Russian Federation is a party;

The Law of the Russian Federation dated May 21, 1993 No. 5003-I «On Customs Tariff » (as amended on August 7, November 25, Decem-ber 27, 1995, February 5, 1997, February 10, May 4, 1999, May 27, De-cember 27, 2000, August 8, December 29, 30, 2001, May 29, July 25, 2002, July 7, 2003, December 8, 23, 2003, May 7, June 29, August 22, 2004, July 1, November 8, December 20, 2005, July 27, November 10, 2006, December 1, 3, 2007), Article 37

2.9. FOREIGN COMPANIES WORKING IN THE REGION

Wienerberger A.G (Austria) — construction of a brick-mak-ing plant in the Republic of Tatarstan rated at about 140 mil-lion brick per year. Located in 40 km away from Kazan, Vyso-kaya Gora District;

Investore Internationale Srl (Italy) — production of biaxial-oriented polystyrene and polypropylene (BOPS and BOPP);

ZASS Alabuga — a Tatarstan-Turkish joint venture company. Production of heaters under the DeLonghi (Italy) license (in Alabuga);

Euroboy and Tecnimont (Italy) — agreement with OOO Hi-Tec Consulting and OAO Nizhnekamskneftekhim on the pro-duction of polymer composite materials, in particular of non-woven polymer Spunbond (in Nizhnekamsk);

Schneider Electric (France) — organisation of the licensed production of substations and high-voltage equipment TATEK (in Zainsk);

OAO Severstal-Auto — production of FIAT cargo and pas-senger vehicles in the territory of SEZ Alabuga. Plant capacity is about 75,000 vehicles a year (in Yelabuga);

UZEL Corporation (Turkey) — project for the organisation of tractor assembly in the territory of the republic;

XCMG (China) — project for the production of loaders and excavating machines.

Colkan Group (Turkey) — construction project of meat producing plant rated at 120 heads of cattle and 650 heads of small cattle a day. Number of jobs is 300-350.

Zahnrad Fabrik (Germany) — establishing a joint-venture with OAO KamAZ — OOO ZF-Kama (in Naberezhnye Chelny);

IKEA (Sweden) — hypermarket Mega-Kazan.Metro Cash & Carry (Germany) — trade facilities in Kazan

and Naberezhnye Chelny;Quinn Group (Ireland) — construction project of the ware-

house complex and logistics park Q-Park Kazan with offi ce premises of 207,000 square metres of fl oor space (in Laishevo District of the Republic of Tatarstan).

Tecnimont (Italy) — implementation of the construction project of a polypropylene production plant at OAO Nizhneka-mskneftekhim rated at 180,000 MT. Project for the organisa-tion of polyethylene production at OAO Nizhnekamskneftekh-im rated at 230,000 MT a year.

26 Investor’s Guide

Economy Of The Republic Of Tatarstan

3. Economy Of The Republic Of Tatarstan

3.1. ECONOMIC OVERVIEWTatarstan is one of the most economically developed re-

gions of Russia. The republic is located in the centre of a large industrial region of the Russian Federation, on the crossing of major routes connecting the east and the west, the north and the south of the country.

The Republic of Tatarstan enjoys rich natural resources, strong and diversified manufacturing industry, high intellec-tual potential, and qualified labour force. According to federal authorities, the republic is 2nd in the general economic devel-opment rating (after Moscow) and 3rd in the social develop-ment rating (yielding to Moscow and St. — Petersburg).

In 2007, the Gross Regional Product (GRP) totalled over US$ 30.29 billion.

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Investor’s Guide

3.2. NATURAL RESOURCESThe Republic of Tatarstan is rich in natural resources, the

main resource being crude oil. The first commercial oil deposit was discovered as early as in 1943.

The main oil reserves, some 0.8 billion MT, are concentrated in medium-size and small deposits. Alongside with oil, petro-leum gas is also produced. Among other mineral resources, extracted in the republic’s territory are gypsum (total reserves are 72 million MT), oil bitumen (known reserves are 12.5 bil-lion MT), peat (800 peat bogs with a total area of over 35,000 hectares are located in Tatarstan), construction stone (35.3 million cubic metres), brick clay (73.5 million cubic metres), chalkstones and dolomites (66 million MT). Production of black coal is complicated due to deep occurrence. Exploitation of combustible shale deposits in south-west Tatarstan is also promising.

The Republic of Tatarstan has large water resources. Its river system consists of such rivers, as the Volga, Kama, Belaya, Vyat-ka, Sviyaga, Mesha, Sheshma, Ik, Toyma, Izh, Stepnoy Zay, etc. Altogether there are some 3,000 rivers, their total length being 19,600 kilometres. Total water surface area is 4,400 square ki-lometres, or 6.4 % of the territory of the Republic of Tatarstan. The largest European reservoir, the Kuibyshev Reservoir, with the volume of 57.3 cubic kilometres, is located for the most part in the territory of the Republic of Tatarstan. Its widest span in the mouth of the Kama is nearly 30 kilometres.

GRP Structure

Industrial production structure

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Investor’s Guide


Population of the republic is fully provided with potential ground water resources, totalling 3.8 million cubic metres per day.

Available land of the Republic of Tatarstan constitutes 6,783,700 hectares. The major part, some 70 %, is the land for agricultural purposes (4,692,300 hectares), the land of the for-est reserves is 18 % (1,229,700 hectares), and the land of the water reserves is nearly 7 % (456,200 hectares).

3.3. BASIC INDICATORS OF MANUFACTURING INDUSTRY

Industrial profile of the republic is determined by fuel and petrochemical industries (oil production, production of syn-thetic rubbers, tyres, polyethylene, and a wide range of oil refining products), large mechanical engineering enterprises manufacturing competitive products (helicopters, airplanes, and aircraft engines, heavy-duty trucks, compressors and oil and gas pumping equipment), developed electric and radio instrument-making industries.

In 2007, the volume of dispatched goods of local manufac-ture, work performed and services rendered by own forces reached US$ 30.22 billion. The industrial production index recalculated with allowance for small businesses and informal economy grew to 108.8 % as compared to 2006.

Trend of Shipped Product Volumes and Industrial Production Index

107,1106,0

99,1

105,0106,1

104,8

108,1 108,8107,5

106,7106,0

94,0

96,0

98,0

100,0

102,0

104,0

106,0

108,0

110,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

2000 2001 2002 2003 2004 2005 2006 2007 2008forecast

2009forecast

2010forecast

27,4

30,5

33,8

6,8 7,4 7,59,2

12,8

18,0

23,3

30,3

Shipments, US$ billion Industrial production index,...

Trend of Shipped Product Volumes and Industrial Produc-tion Index

Broken down by kinds of economic activities, the volume of dispatched goods was as follows: for the enterprises in-volved in mineral extraction — US$ 9.26 billion, in processing industries — US$ 18.78 billion, in production and distribution of electric energy, gas, and water — US$ 2.24 billion. The in-dustrial production index in Mining Operations was 102.1 %; in Manufacturing Activities, it was 116.3 %; while in Produc-tion and Distribution of Electric Energy, Gas and Water it was 99.8 %.

In 2007, some 52,800 trucks, 21,700 cars, 12.4 million tyres, and some 909,600 MT of synthetic resins and plastics were manufactured.

In the structure of industry, Manufacturing Activities was the largest contributor accounting for 62 %. Mining Operations accounted for 30.6 %, and Production and Distribution of Elec-tric Energy, Gas and Water, for 7.4 %.

In Manufacturing Activities, manufacture of vehicles and equipment was the largest contributor with 27.3 %, followed by chemical products with 19.9 %, oil products with 15.3 %, and foodstuffs with 9.6 %.

3.4. FUEL AND ENERGY SECTOROne of the most important factors contributing to the ef-

ficient economic development of the Republic of Tatarstan is its reliable provision with natural gas. In many respects this be-came possible due to the multiannual cooperation with OAO Gazprom on a regular basis.

The Republic of Tatarstan is one of the largest consumers of natural gas in the Volga region of Russia. Consumption of gas in the republic in 2007 reached 14.95 billion cubic metres, which exceeds the level of the previous year by 1.5 %. The Re-public of Tatarstan is high in the list of gas supply provision among Russian regions. As of the end of 2007, the level of gas supply in the Republic of Tatarstan exceeded 98 %.

Power sector is one of the dynamically developing branches in the Republic of Tatarstan. The basic manufacturer of heat and electric energy in the Republic of Tatarstan is OAO Taten-ergo. Its branch, OAO Generiruyushchaya Kompaniya gener-ates virtually all electric power and significant percentage of thermal energy. OAO Tatenergo is one of the Russia’s largest power supply systems. It incorporates 8 heat power plants (7 combined heat power plants and 2 state district power plants), one hydroelectric power plant and 3 district boiler houses of Kazan. As of 01.01.2007, the installed electric capacity was 7,016 MW. Some 40-50 per cent of the installed capacity is cur-rently not in use. The overall length of the high-voltage power network is 6,600 kilometres, medium-voltage power network exceeds 28,000 kilometres, and low-voltage power network is over 25,000 kilometres.

The grid company operates more than 14,000 transformers and combined substations.

Last year, 24.96 billion kWh of electric energy and 31.5 mil-lion Gcal of heat energy were generated.

Investments into the fixed capital of Tatenergo totalled US$ 160 million.

In December 2007, the programme for 2008–2010 bro-ken down by kinds of activities has been considered and approved. According to this three-year programme, the esti-mated amount of required investments totals some US$ 1.01


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Investor’s Guide

billion, with US$ 550 million as a deficit part.In 2008, the introduction of the alternative and renewable

energy sources is planned to be put in practice. The issue of building a factory to produce bio-ethanol, and introduction of a plant with a complete work cycle for the processing of agri-cultural waste is currently under consideration. Such projects are characterised with high capital intensity; that is why it is necessary to consider an opportunity of rendering state sup-port for the implementation of these projects.

3.5. OIL-GAS-CHEMICAL SECTOROil productionThe Republic of Tatarstan boasts of rich mineral resources

forming the long-term competitive advantage of the region and a strategic basis of its sustainable development. The main constituent of the region’s raw material base is crude oil.

In 2007, oil companies produced 31.9 million MT of oil in the territory of the republic, which is an increase by 2.5 % com-pared to 2006. OAO Tatneft produced some 25.5 million MT of oil.

The growth of oil recovery in that year was supported by the accelerated putting of new wells on production. In 2007, OAO Tatneft commissioned 323 new wells.

Last year, OAO Tatneft spent some US$ 520 million. Of these, a part of funds was spent for industrial construction, which re-sulted in the construction and restoration of field pipes, power transmission lines, and oil tanks.

Special attention has been devoted to the application of new technologies for the oilfield development and operation.

Oil Production by OAO Tatneft and MHK in 2000–2008

OAO Tatneft is constantly seeking ways to increase its own resource base. The company’s proved reserves of crude oil ac-cording to auditors are 830 million MT. Last year, two deposits were discovered. In the Republic of Tatarstan, the Chernooz-erskoye Field was discovered with reserves of category С1+С2 (over 1.1 million MT and daily output of over 9 MT of oil). The recoverable reserves of category С1+С2 of the newly discov-

ered Tibeveiskoye Field located in the Nenets Autonomous Okrug totalled some 8 million MT.

Company’s geophysicists successfully work at the foreign markets of Tunis, Morocco, Angola, Gabon, Kazakhstan, and Uzbekistan.

Alongside with OAO Tatneft, crude oil is produced in the republic by 33 small oil-production companies (SOCs) with an-nual output varying from 7,600 to 710,000 MT. SOCs produced over 6 million MT of oil. As compared to 2006, the oil produc-tion by small companies grew by 4.3 %. Among the SOCs with annual output over 100,000, the highest output growth rates were recorded with such companies as OAO SMP-Neftegaz (108.1 %), ZAO Troitskneft (106.1 %), ZAO Aloil (106 %), and OAO Tatnefteotdacha (104.5 %).

In 2007, the contribution of the small oil-production compa-nies to the total oil production in the republic totalled 19.3 % (this figure was 19 % in 2006).

The specific feature of small businesses in oil production is that the small oil-production companies — unlike the vertical-ly-integrated companies — develop marginal fields with hard-to-recover reserves of high-sulphur oil, the majority of which were discovered about three decades ago.

In Russia, recoverable reserves of natural bitumens are es-timated at 12-15 billion MT, of which almost 36 % are located in the territory of Tatarstan. As of today, in many areas of the republic about 150 fields of natural bitumens containing 450 deposits were discovered. Efficient and profitable develop-ment of bitumen oil can support the raw material base of not only the region, but also of the country in general.

Oil refiningThe oil refining industry of the Republic of Tatarstan under-

went in recent years a number of essential investment, tech-nological, and institutional changes. In 2007, the enterprises of oil refining industry manufactured products to the total amount of US$ 2.66 billion, while the industrial production in-dex constituted 105.7 %.

OAO Tatneft has launched the new large project, “Creation of the Complex of Oil Refining and Petrochemical Plants in Ni-zhnekamsk”, which is rated at processing of 7 million MT of Car-boniferous oil. As estimated, some US$ 320 million was already invested in the implementation of this project in 2006-2007. In 2007, the decision of the Board of Directors of OAO TANEKO approved the strategies of RMS-Plus project management and selected the winner of the tender for the contractor to render project management services, being Fluor Corporation.

Innovation development of the oil refining sector suggests the creation of another new complex, the Oil Refining and Pet-rochemical Complex for Republic’s Small Oil Companies. This complex will also be focused on the processing of the republic’s Carboniferous oil, including natural bitumens in the long term.

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Investor’s Guide


Chemical and petrochemical sectorsThe industry today accounts for over 17 % of the republic’s

total industrial production, more than quarter of petrochemi-cal products made by enterprises of Volga Federal District and some 11 % of its all-Russian output.

The republic holds the lead in some kinds of petrochemical products in the Russian Federation. Today, the republic’s en-terprises manufactured some 40 % of the Russia’s polystyrene, polyethylene and polypropylene, one third of rubbers and tyres, and about 70 % of oilfield chemical products.

The output by enterprises of the petrochemical industry to-talled by kinds of economic activities:

Chemical products were manufactured to the amount of US$ 3.74 billion. Manufacture of rubber and plastic products amounted to US$ 1.46 billion. The contribution of innovation products to the total commodity output increased from 24.4 % in 2006 to 26.8 % in 2007.

Over 35 % of petrochemical sector products were exported.

Production of Automotive Tyres in Tatarstan (‘000)

Production of Synthetic Rubber in Tatarstan (‘000 MT)

Chemical and petrochemical industries are still among the most investment attractive sectors of Tatarstan economy. The aggregate capital investment into the chemical and petro-chemical industries of Tatarstan for 2000–2007 is estimated at US$ 2.67 billion.

Capital investment into chemical and petrochemical enterprises of the Republic of Tatarstan

The most intensive investment activities are recorded in large enterprises (OAO Nizhnekamskneftekhim and OAO Ka-zanorgsintez).

As a result, positive structural shifts are observed in the age of the active part of fixed assets in these enterprises; a 50-per cent mark is reached in the proportion of equipment with less than 10 years of age (as compared to 27.2 % in 2002).

New factories and enterprises focused on the production of promising petrochemical products appears virtually each year in the republic, while the existing plants and enterprises are being renovated.

In 2007:— Nefis Cosmetics commissioned a unique oil extrac-

tion plant rated at processing of up to 300,000 MT of oil seeds a year;

— Nizhnekamskneftekhim was building up the capaci-ties for the halogenated butyl rubber production and began a preliminary work for the construction of facili-ties for new grades of polyethylene, foaming polysty-rene, and ABS plastics;

— Kazanorgsintez began the commercial production of bisphenol-A and was completing a plant for the produc-tion of polycarbonates;

— In Nizhnekamsk, the construction began of the facili-ties to manufacture truck and bus radial tyres with metal cord in carcass and breaker (all-steel tyres) which would allow the republic to increase the competitiveness of its tyre products in Russian and foreign markets.

In 2007, the further development was observed in the sphere of sectoral small and medium-sized businesses, includ-ing that by forming the infrastructure for its further develop-ment.

The republic is one of the initiators of creating Russia’s in-dustrial districts allowing a more wide involvement of small businesses in the processing of chemical raw materials avail-able in the republic on attractive terms. An industrial district formed on the basis of Nizhnekamskneftekhim, the largest


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Investor’s Guide

petrochemical enterprise of Russia and Tatarstan, received fur-ther support.

In the industrial site of Tasma-Holding in Kazan, the Kh-imGrad Industrial Park is being formed where small business entities would have wide opportunities for the implementa-tion of their innovation-oriented investment projects.

3.6. MECHANICAL ENGINEERING AND METALWORKING

In 2007, the mechanical engineering enterprises manufac-tured commodities to the amount of US$ 7.68 billion, the in-dustrial production index in this sector reached 113.8 %; this was accounted for 25.4 % of the total commodities produced in the manufacturing industry.

President of the Republic of Tatarstan Mintimer Shaimiev set the task to bring the contribution of the mechanical engi-neering in the nearest years up to 40 % in terms of commodity output.

Automotive industry is one of the key industries in the me-chanical engineering. In 2007, OAO KamAZ and OAO Severstal-Auto increased their outputs considerably.

In 2007, the volume of manufactured and sold commodi-ties of the enterprises incorporated in the OAO KamAZ group reached US$ 3.1 billion. The company sold 52,700 KamAZ trucks to the amount of US$ 2.42 billion (an increase by 22 % in comparable prices against 2006). Alongside with competi-tive heavy-duty trucks, the company manufactured and sold spare parts to the amount of US$ 410 million (a 21 % increase), and diversification products in the amount of US$ 500 million (a 28 % increase).

Almost 13,500 trucks were sold to CIS and non-CIS countries, which exceeds the level of the previous year by a factor of 1.2.

The enterprise has developed and is implementing the re-engineering programme. Its purpose is a gradual phase-out at KamAZ plants of the wide range of components for truck as-sembly and switchover to their purchase from external manu-facturers.

Severstal-Auto company has developed and is implement-ing the business plan of assembling modern FIAT and SSANG YOUNG cars on the premises of OAO ZMA (Compact Car Works). Last year the full-scale production of Korean off-road cars and FIAT Albea and FIAT Doblo cars started in this plant, including welding, painting of bodies and assembly operations. Jointly with SSANG YOUNG, the updating of Rexton II and Kyron FL models has been carried out, production of which began si-multaneously at OAO ZMA and at Korean factories.

In 2007, some 21,600 cars were manufactured on the prem-ises of Compact Car Works to the total amount of US$ 420 mil-lion, including the Korean cars (US$ 290 million) and the Italian

cars (US$ 130 million)Late in last year, an investment project was launched in

the territory of the Special Economic Zone Alabuga, which includes the organisation of production of Fiat Dukato cars, ISUZU trucks and the organisation of automotive component suppliers’ park.

In November-December the technology of Dukato assembly was optimised; after the works will be brought to full capacity, it is planned to manufacture 14 modifications of these cars for various purposes. Apart from their entry into the Russian mar-ket, the enterprise has plans to organise exports of these cars.

The production of ISUZU tracks will be started in the com-ing months. This project suggests the assembly of virtually full range of trucks of this company including the trucks with pay-load of 5, 16, and 22 MT. Apart from trucks, production of spe-cial machinery and buses on ISUZU chassis is also planned.

Within the framework of this vehicle assembly project, the production of forgings, seats, interior plastic parts, exhaust systems, and a number of other large units and assemblies will be completely localised.

Further build-up of production volumes at OAO ZMA and opening of new facilities in the territory of the Special Eco-nomic Zone Alabuga will make it possible in 2008 to bring the total production volume in the territory of the republic up to 66,000 vehicles (49,000 at OAO ZMA, 10,000 Dukato and 7,000 ISUZU).

By 2010, the production of cars in the republic should reach the figure of 190,000, while the total investment in these proj-ects will exceed US$ 320 million.

The core of the Tatarstan automotive cluster — its first lev-el — is OAO KamAZ and OAO Severstal-Auto.

The second level of this cluster includes suppliers of compli-cated automotive components, industrial equipment for their production, and a network of dedicated technoparks, includ-ing OAO Kama Industrial Park Master.

The third level of this cluster are suppliers of allied sectors, scientific and service centres, financial institutions cooperat-ing with manufacturers of automotive components, and insti-tutions of higher education and vocational training.

The strengthening of cooperation between OAO KamAZ and small and medium-sized businesses was reflected in the creation, jointly with Tatarstan Government, of the Kama In-dustrial Park Master. Implementation of this project allows OAO KamAZ to concentrate its investment resources on key products, to evaluate technical solutions when developing new automotive equipment, to create new jobs, and to use idle capacities.

In 2007, the premises of KIP Master accommodated over 110 tenant enterprises with a total number of employees of almost 1,800. The total annual turnover of these enterprises exceeded US$ 60 million. The production of camshafts, brake blocks,

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hubs, lighting devices, and some other components for truck assembly was organised on its premises with the use of up-to-date technologies. The nearest plans include the commission-ing of one more line with an area of 120,000 square metres through raising funds of federal and republic’s budgets. This phase suggests another doubling of the areas employed.

As of now, over 150 enterprises of different patterns of own-ership are successfully working and intensively developing in the republic’s market of automotive components and acces-sories.

Another aspect of cooperation with domestic car industry is supplies of the wide range of components to OAO AvtoVAZ.

The signing of Cooperation Agreement in early 2007 be-tween OAO Kazankompressormash with OAO SIBUR-Holding became a breakthrough to new commodity markets. Accord-ing to this Agreement, OAO Kazankompressormash and a number of other republic’s industrial enterprises have plans to supply products for the needs of the Holding to the total amount of US$ 150 million in 2007-2008.

By introducing the latest developments, OAO Tatelectro-mash was expanding the existing and establishing new facili-ties to manufacture electric motors, automotive components, rack cars, state-of-the-art building materials and engineering structures.

In 2007, a profiled and circular pipes plant and a precision casting plant were commissioned; investments into the pro-duction of wall sandwich-panels and stamping plant were continued. Investments in the amount of over US$ 14.45 mil-lion make it possible to manufacture additional products to the amount of over US$ 100 million when these facilities will be running at full capacity.

In May 2007, following the tender held by the Ministry of Economic Development and Trade of Russia, OAO Chistopol Watch Factory Vostok became one of the winners for its proj-ect of creation and development of business incubator on its premises. For the first phase of the business incubator creation (office and industrial areas), US$ 1.22 million were invested in 2007.

In the period of 2008-2012, for the second phase of the busi-ness incubator creation, the additional US$ 28.27 million from various sources are planned to be spent for investment proj-ects, modernisation and creation of new facilities for business structures.

State of the defence industry enterprisesIn general, the development of the defence industry en-

terprises located in the territory of the Republic Tatarstan was characterised in 2007 by positive trends of basic macroeco-nomic figures.

The volume of products, goods and services produced by these enterprises in 2007 was US$ 900 million, which is a 13.8 %

increase compared to previous year.In 2007, OAO Kazan Aircraft Production Association n.a.

Gorbunov (KAPO) continued to perform the work within the order of the Russian Federation Presidential Administration on construction of four aircraft, including 2 Tu-214SR airplanes, 2 Tu-214PU airplanes, and carried out the production and repairs of Tu-160 airplanes, repairs of Il-62M and Tu-22MЗ air-planes, maintenance of Tu-214, Il-62M, and An-26 airplanes, production of consumer goods, as well as technical and indus-trial goods. On 28 December last year, the first flight of a new Tu-160 strategic bomber took place at the Association.

The Government of the Republic of Tatarstan, jointly with OAO Tupolev and KAPO, developed in 2007, at the expense of the republic’s budget, a business plan of the investment project “Equipment of Russian Airlines with Short-Haul Tu-334 Airplanes”.

Actions were conducted throughout 2007 to engage en-terprises from Russia and CIS countries (Ukraine, Kazakhstan, etc.) to the implementation of the Tu-334 project. As of today, KAPO is carrying out the work on signing the contracts for sup-ply of components for Tu-334 airplane.

The meeting held on 9 November 2007 between Tatarstan President Mintimer Shaimiev and President of the Russian Fed-eration Vladimir Putin resulted in the decision to support the project of the Tu-334 short-haul airplane.

In 2007, the production volume of OAO Kazan Helicopters (KVZ) exceeded the level of 2006 by 14.9 % reaching US$ 240 million. The company for 2007 manufactured 33 helicopters in 2007, including 1 Ansat helicopter.

In 2007, further work was performed on the preproduction of the Ansat helicopter in the full scale of 10-15 helicopters an-nually. There are plans to expand, within the period of up to 2010, the full-scale production to 25 helicopters annually. The plant is now prepared to manufacture some modifications of Ansat: transport; passenger 6-7-seater and executive 4-seater; medical; fire-fighting; agricultural; search and rescue with on-board arm and outboard pylon. In 2007, Laos and South Korea became foreign customers of the Ansat helicopters.

In the accounting year, development activities were carried out for the Aktai helicopter within the framework of the invest-ment project “Tests and Putting into Production of Aktai Light Multipurpose Helicopter”.

The enterprise continued its programme of production renovation. In 2007, some US$ 3.26 million was spent for the acquisition of new equipment. A programme is now underway for renovating the propeller blade production and organisa-tion of plastic blade production with a total cost of US$ 380 million.

KVZ plans include the creation of a joint venture company with one of the Chinese firms located in the free economic zone in Southeast China.


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In 2007, the production volume of OAO Kazan Engine-Build-ing Production Association (KMPO) was US$ 170 million.

In 2007, the company developed the Programme for Pro-spective Development of OAO KMPO for the Period of 2007-2012. The programme provides for meeting the needs of in-dustrial divisions of OAO Gazprom in gas pumping equipment; expanding the range of manufactured gas pumping units in-cluding GPA-8 and creating for this purpose a driving engine rated at 40-45 MW; expanding the range of manufactured automatic gas distribution stations through the development and mastering the production of their new modifications of various capacity; organising a new direction of productive ac-tivities, i.e. creating the production of gas turbine power units rated at 18, 20, 40, and 45 MW.

FGUP Production Association Plant n.a. Sergo (POZIS) is among few enterprises of the country’s defence industrial complex which are steadily raising the production volumes and sales of civil products; in five years, the enterprise has in-creased the contribution of civil products in its total output from 50 % to 82 %.

The commodity output in 2007 was US$ 250 million. Refrig-erating equipment continues to remain the dominating kind of products; it accounted for 72 % of the total output, the pro-duction volume of this equipment in 2007 was US$ 110 million (387,000 units), the growth rate compared to 2006 reached 108 %.

Refrigerating products of POZIS currently wins 13.93 % of the Russian market and 7.45 % of the CIS market.

Active diversification of the production and its switchover to civil products while employing dual-use technologies and mastering greenfield technologies became a basis of business development. The application of dual-use technologies, when mastering the production of automotive components and hunting cartridges to smooth-bore guns, enabled the compa-ny to utilise the idle capacities and to preserve the technolo-gies for special products manufacturing.

The enterprise is implementing the investment project “Reconstruction of Refrigerating Equipment Production with Transition to Isobutane R600a” which meets all international standards. The amount of investments is US$ 23.8, implemen-tation period is 2006-2010.

OAO Zelenodolsk Works n.a. Gorky is now an intensively developing enterprise of the Russia’s ship-building industry. In last 3 years, the production volume has tripled and last year totalled US$ 110 million.

In 2007, a universal dry cargo vessel Rusich was delivered to customer, bridge superstructures for the second line of the bridge across the Kazanka River were manufactured, the keel-laying of six sea-class passenger vessels (project A-145) for the country’s home market was performed, and the work on the state defensive order continued.

OAO Zelenodolsk Works n.a. Gorky was selected as a per-former of the contract for supply of 20 multi-purpose coast guard boats (project А-106) to the People’s Democratic Re-public of Algeria and the performer of the contract between FGUP Rosvooruzhenie and Naval Forces of Vietnam for supply of two Gepard-3.9 vessels (project 11661) which were laid in late 2007.

ICL-KME CS is a leading Russian company providing inte-grated solutions in the field of information technologies and services of consulting, designing, adaptation, warranty and after-sales services to information systems of any scale. The amount of work and services rendered today is over US$ 40 million.

3.7. LIGHT, FOOD-PROCESSING, AND WOODWORKING INDUSTRIESLIGHT INDUSTRY

In 2007, the industry delivered products to the total amount of US$ 131.41 million, including the products in textile and garment manufacture in the amount of US$ 88.74 million, in leather manufacture, leather products, and manufacture of footwear in the amount of US$ 42.67 million.

With an aim of creating conditions for the attraction of in-vestments into the industry and formation of competitive, hi-tech manufacture of the light industry in Tatarstan, the repub-lic adopted the Concept of Light Industry Development in the Republic of Tatarstan for 2007-2010.

FOOD-PROCESSING INDUSTRYIn 2007, the enterprises making food stuffs delivered prod-

ucts in the amount of US$ 1.81 million, the corresponding in-dustrial production index reached 106.7 %.

Changes in Production of Dasic Foodstuffs

in 200-2007 and Expexted Production till 2010 (’OOO MT)

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Investor’s Guide


Growth of production volumes in this industry was achieved owing to the development of productive forces, first of all, through investments into up-to-date technologies and equip-ment, which make it possible both to raise the output per worker and to enhance the competitiveness of products. The investment into fixed capitals of industrial enterprises in 2007 is estimated at US$ 120 million.

WOODWORKING INDUSTRYWoodworking industry of the Republic of Tatarstan is pre-

sented by two kinds of economic activities, processing of woods and wood products and pulp-and-paper production.

Production volumes in natural terms in the period of 2000–2007

Product 2000 2001 2002 2003 2004 2005 2006 2007

Paper, ‘000 MT 39.9 41.8 44 47.1 49.1 51.1 52.4 54.8

Cardboard, ‘000 MT

86.5 98.7 108.2 118.8 131 136.6 153.9 158.7

Plywood, ‘000 cubic metres

72.8 79.9 83.9 85.3 95.2 99.3 103.7 107.5

Sawn timbers, ‘000 cubic metres

251.4 120.9 180.2 227.4 242.5 247.4 257.6 264.5

Commercial timber, ‘000 cubic metres

28.5 282.7 300.2 267.4 287.7 244.1 207.9 188.1

The flagship of the pulp-and paper industry is ZAOR Peo-ple’s Enterprise Naberezhnye Chelny Cardboard and Paper Works manufacturing corrugated cardboard and container-board. The supporting sector for woodworking industry is for-estry. The available inventory of wood in the republic is 21.9 million cubic metres. Large woodworking enterprises, namely OAO Zelenodolsk Plywood Plant and ZAOR People’s Enterprise Volga Plywood and Furniture Works and, export abroad up to 85 % of their products. At the industrial site of Alabuga, ZAO DSK of Glued Modular Wood Structures introduced a com-plete woodworking cycle rated at the processing of 50,000 cubic metres of lumber and manufacturing of 250,000 square metres of dwellings. In 2007, the woodworking industry raised investments in the amount of over US$ 28.52 million.

In 2008, a preparation began to conduct tenders for the handover of Tatarstan forest areas for commercial processing. Attraction of investments into these enterprises would pro-mote the renovation and enhance the competitiveness of the industrial companies.

Recycling of secondary raw materialsSome 12 million MT of production and utility waste has

been generated each year in the Republic of Tatarstan. With an aim of collecting and treatment of secondary material re-sources, the «environmental» sector has been created in the Republic of Tatarstan which consists of enterprises engaged in

waste collection, sorting, storing, transportation, processing, and recycling.

A rather urgent problem in the republic is the recycling of the most large-scale kinds of waste, i.e. those from livestock breeding, food-processing waste, and sewage. An important direction in waste handling sphere is the switchover to low-waste technologies.

Further development of the waste recycling sector is only possible when new conditions would be created for encour-aging the organisation of facilities designed for the collection and processing of waste, investments be attracted, and com-petitive environment in this sphere be developed.

3.8. INTRODUCTION OF QUALITY MANAGEMENT SYSTEMS

Upon completion of the Programme “Improving the Quality of Products and Services in the Republic of Tatarstan for 2004-2006” (Programme “Quality”), the Republic of Tatarstan has fi-nalised the stage of evaluating the approaches to the use of ISO 9000 standards in the systems of management of repub-lic’s economic entities. As a result, more than 269 republic’s en-terprises and organisations have confirmed the compliance of their quality management systems to the ISO 9000 standards. Environmental management systems in compliance with ISO 14000 standards were certified by ten organisations of the republic. Six republic’s enterprises producing foodstuffs have introduced a quality system based on HACCP principles; six enterprises are working on the introduction of HACCP system and two other, on food safety management system under ISO 22000 standard. Four enterprises introduced integrated man-agement systems.

Number of Tatarstan enterprises with a Quality Management System certified under GOST К ISO 9001–2001

To carry out the work on the certification of products, ser-vices, and management systems, corresponding infrastructure has been created in the republic. In 2006, the following or-ganisations were created and accredited: the republic’s body for certification of quality management systems Rossert, body


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Investor’s Guide

for certification of integrated quality systems ZAO RSMC Test-Tatarstan, and a regional office of Russian Register Certification Association — OOO Russian Register-Volga Region. A total of 4 bodies registered in the republic carry out certification of man-agement systems, and 13 bodies certify products.

3.9. BUSINESS SUPPORTSmall business support in the Republic of Tatarstan is one

of the priorities of the Ministry of Industry and Trade of the Republic of Tatarstan. The small businesses are basically con-centrated in the sphere of trade.

One of the main tasks in the business development in the Republic of Tatarstan is increasing the contribution of small businesses to the total industrial production.

Subject to matched funding conditions at the expense of re-public’s and federal budgets, small businesses making goods for exports were indemnified for a part of their loan interest payments, for certification, and for participation in exhibition and fair events abroad.

A significant direction of activities in the sphere of small business support is the creation and development of business incubators. Following the participation in the federal tender in 2005, three business-incubators have been created: Sviyaga, Volga Region Innovation-Technological Centre of Light Indus-try, and a business incubator in Yelabuga. The amount of fed-eral grant was US$ 1.86 million.

As of today, the work is conducted on the improvement of mechanisms of small business support and development in the information, consulting, and property directions, and first of all through enhancement of business incubators’ efficiency and their coordination with industrial parks and technoparks.

3.10. AGRICULTUREPlant growing

In 2007, the production of all grain crops in agricultural or-ganisations and farming enterprises totalled 5,145,900 MT in the initially recorded weight (4,733,500 MT in weight after pro-cessing), which is a 13.8 % increase compared to 2006. Produc-tivity of grain and leguminous crops in weight after processing was 28.9 centners per hectare of the area under crops, which exceeds the 2006 figure by 2.0 centners.

Agricultural organisations and farming enterprises gath-ered 227,300 potato (with an average productivity of 198.8 centners per hectare), which is an increase by 0.1 % compared to 2006.

The gross yield of industrial sugar-beet was 2,002,900 MT (with productivity of 283.8 centners per hectare), which is a decrease by 5.7 % compared to 2006.

Vegetables (with allowance for protected ground) were pro-

duced in agricultural organisations and farming enterprises in the volume of 62,200 MT, which is a decrease by 27.5 % com-pared to 2006. The average productivity of vegetables in the open ground was 188.7 centners per hectare.

Livestock breedingAs of 1 January 2008, the cattle stock of agricultural organi-

sations, large and medium-sized farming enterprises totalled 806,300 (including 260,000 cows); other livestock was 659,700 pigs, 20,500 sheep and goats, and 7,954,100 poultry. The cat-tle stock was reduced in 2007 by 1.5 %; the pig stock grew by 0.6 %; and the poultry stock grew by 9.7 %.

In 2007, agricultural organisations, large and medium-sized farming enterprises recorded the meat production of 209,600 MT, which is an increase by 13.4 % as compared to 2006. Milk production totalled 1087,900 MT, or 107.0 % as compared to 2006. Average milk yield per cow in agricultural organisations was 4,146 kilograms, which is an increase by 489 kilograms (up 13.4 %) as compared to 2006. Egg production was 771.5 mil-lion eggs. Egg yield per laying hen remains at the 2006 level with 297 eggs.

In 2007, agricultural organisations sold 875,000 MT of milk and 726.3 million eggs. A total of 205,000 MT of cattle and poultry was dispatched.

3.11. CONSTRUCTION AND REAL ESTATEIn 2007, the amount of construction work was US$ 5.07 bil-

lion, or 119.0 % to the 2006 level. The total floor space of dwell-ing units put into commission in the territory of the republic by enterprises and the organisations of all patterns of ownership (including individual housing) was 2,041,000 square metres in 2007, which constitutes 114.8 % to the 2006 level.

Changes in the volumes of construction work performed by the organisations engaged in all kinds of activities (2007 in % to preceding year)

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Investor’s Guide


Total floor space of dwelling units put into commission in the territory of the republic by enterprises and the organisations of all patterns of ownership and by individuals at the expense of their own funds (In % to the preceding year)

Kazan holds a lead in the volumes of civil work and is among top three leaders in the rates of growth of this indicator. The construction sector of the republic continues to develop and Tatarstan retain its investment attractiveness.

Tatarstan construction sector currently involve some 5000 organisations with corresponding licenses; of them, some 4000 are contractor and subcontractor organisations, 290 are design and exploration organisations, 230 are enterprises of the building materials industry. The privatisation process is basically completed in the sector, the percentage of the or-ganisations with private and mixed patterns of ownership are over 95 % of the operating organisations. The number of those employed in the sector with allowance for road and civil work and working in the sphere of servicing the crude oil produc-tion is 153,000.

Considering the forecasts of social and economic develop-ment of districts and estimated number of population, the Tatarstan Cabinet of Ministers adopted the sub-programme “Steady Development of the Construction Sector of the Re-public of Tatarstan for 2006-2008”. The sub-programme speci-fies economic regions and cities which demand investments into the development of construction industry base with real satisfaction of demand for new building materials.

The Republic of Tatarstan is currently of good interest for foreign companies working in the world market of building materials. Some of them intend to attract their own invest-ments into the production of up-to-date building materials in the territory of the republic. For example, the Austrian-based Wienerberger began the construction of a new brick-making plant rated at 140 bricks a year in the Vysokaya Gora District of the republic.

Forecasted demand in the republic by 2010The demand for concrete and reinforced concrete products

will total 1,547,000 cubic metres plus 385,000 cubic metres of products for large-panel housing construction.

The real deficit of capacities for the production of facing ce-ramic bricks is estimated at a level of 50 million (providing that the existing level of its annual importation of some 40 million bricks will be maintained) and wall ceramic bricks, some 200 million. There is a need in the up-to-date manufacturing tech-nologies and new cellular and porous ceramics.

The demand for roofing materials will total some 2 million square metres. The designed capacities of the republic’s enter-prises cover the demand of the construction sector. There is a need in the production of ceramic and soft tiles, corrugated roofing sheets based on bitumen, and in the long-term, the production of translucent sheet polymeric materials and cel-lular panels from polycarbonate.

The demand for heat insulation materials by 2010 will be 329,600 cub metres, and the deficit of 201,000 cubic metres is expected of mineral wool warmers heaters with an excess of capacities for foam polystyrene production at 12,000 cubic metres.

Summary of Kazan Land MarketThe lands of settlements are mostly characteristic for Kazan.

In addition, there are lands of specially protected territories which are used for special scientific, historical, cultural or other valuable purposes. These lands are basically characteristic for the centre of Kazan.

The market land rent for a land lot which is owned by the state and municipal bodies — for the aim of holding tenders for it — is established following the results of the tenders for sale of the right to rent this land lot. The procedure for hold-ing such tenders is specified in accordance with the “Rules for Organisation and Holding Tenders (Competitions, Auctions) for Sale of Land Lots Being the State or Municipal Property or Rights to Sign Rent Contracts for Such Land Lots”, approved by the Resolution of the Government of the Russian Federation No. 808 dated 11.11.2002.

Since 2006, the cadastral value of land lots became the basis of the city zoning. The entire territory of Kazan has been divid-ed into 3,562 cadastral blocks which, in turn, reflect the cost of lands for 14 kinds of use. So, for instance, the cost of 1 square metre of the land in the cadastral block No. 16:50:01:01:01 is as follows:

— under multi-storeyed houses — US$ 668.57 / square metre;

— garages and parking areas — US$ 609.34 / square metre;

— under premises of trade, public catering, and con-sumer services — US$ 839.69 / square metre;

— under industrial facilities — US$ 506.30 / square metre;— under administrative and public premises —

US$ 840.83 / square metre.The cost of land lots (meaning the asking price) in the city


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Investor’s Guide

centre in 2005 did not usually exceed US$ 130-150 / square me-tre. In 2006-2007, the asking prices grew considerably, up to US$ 300-350 / square metre.

A characteristic feature of production and warehouse areas is that the land lots offered for sale usually have a large area (up to several hectares) and have smaller prices as compared to other areas of the city. For these areas, a distinctive feature is the offers of property complexes including a land lot and a number of buildings and structures. In general, the land value in these zones does not usually exceed US$ 50–70 / square me-tre.

3.12. TRANSPORTThe Republic of Tatarstan enjoys the unique transport geo-

graphical position in the European part of Russia, its territory is crossed by key railways and waterways, highways and air routes providing transportation of goods and passengers in all directions.

Such position is unique due to four available factors:• The shortest transcontinental railway in the West-East

direction and the railway connecting large industrial cities of Volga region in the Northwest-South direction;

• Navigable waterways of the Russia’s main European rivers: Volga and Kama, and the rivers Belaya and Vyatka, which provides water connection not only with the north-western and southern, but also with north-eastern and Urals industrial regions;

• Passage of highways of federal importance to three directions, such as West-East, West-Southeast, and Northwest-South;

• Air routes to all directions.The junction point of the said main transport routes is the

Kazan transportation hub. The Kazan railway junction is con-nected with river cargo port which allows intermodal trans-ports.

The transportation system of the Republic of Tatarstan is composed of six types of transport (automotive, urban elec-tric, inner water, air, pipeline, railway), and road facilities.

In 2007, freight-carrying vehicles of the republic’s enterpris-es of all kinds of activities (with allowance for small haulage contractors and entrepreneurs engaged in commercial cargo transportation), transported 13,738,200 MT of cargo on a com-mercial basis (132.2 % to the level of January-December 2006), total freight turnover was 1,700.8 million tonne-kilometres (123.5 %).

Pipeline transport in 2007 pumped over 28.7 million MT of recorded crude oil which is 102.4 % as compared to the level of January-December 2006. The run of oil has increased over the same period by 2.7 %.

In 2007, the enterprises (including small businesses) per-

forming the automotive carriage of passengers along the gen-eral use routes transported some 391 million passengers on a commercial basis. The passenger turnover was 4,124.5 million passenger kilometres.

In total, there are 3,086 settlements in Tatarstan, of which 1,545 have access roads with asphalt concrete pavement; 549 have intermediate type of pavement; and 992 settlements have earth roads. A total of 10,500 kilometres of asphalt-paved roads, 2,200 kilometres of macadam roads, and 1,100 kilome-tres of earth roads are operated in the republic.

This year, US$ 100 million were allocated to the provision of rural settlements with access roads. With such level of fi-nancing, all settlements of the republic will be provided with hard-surface roads within 10 years. In 2008, it is supposed to involve the funds of the World Bank (some US$ 130 million) to the implementation of this plan.

Transportation infrastructure improvements are promoted by the development of Kama Industrial Hub, Complex of Refin-ing and Petrochemical Plants in Nizhnekamsk, and the Special Economic Zone Alabuga.

3.13. INFORMATION AND COMMUNICATIONSThe information and communications sector of Tatarstan in-

corporates over 400 companies with a total number of 20,000 employees.

In 2007, the entire block of social tasks in communications was completed 100 %: provision with universal services, pro-vision of settlements with telephone exchange communica-tions, lowering the number of queuers for the installation of telephones down to the currently planned figures; first of all, in rural areas.

Incomes in the sector of information and communication technologies in Tatarstan, according to expert estimations, to-tal some US$ 1.2 billion a year, while IT account for a consider-able proportion of ICT (some 60 %).

The sector has been intensively developing, which resulted in its increased contribution to the growth of Tatarstan econo-my. Gross revenues grew in 2007 by 18.2 % compared to 2006. The revenues were supported by all sub-sectors of commu-nications. Cellular operators were the best contributor to the total revenues of the sector with 41.1 %.

In the period from 2003 to 2007, the gross revenues of the communication sector has grown by a factor of 2.5.

The growth in revenues was resulted from the attraction of investments to the development of the sector in the total amount of over US$ 130 million which became possible due to the implementation of the public-private partnership models allowing to achieve the annual investments of enterprises in the amount of over US$ 80 million in last 3 years and the ef-ficient results in the implementation of the governmental pro-

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grammes for the development of communication infrastruc-ture, television and radio broadcasting, and postal services with the least possible government expenditures. Investments into the sector grew by 27 % compared to 2006.

High development rates of the sector are expected to be sustained through 2008; it is planned to spend not less than US$ 180 million of investments in the sector.

Investment into the electronic communication develop-ment grew by 60 %. In connection with implementation of new projects such as the Electronic Government, creation of the technopark, introduction of projects in the sphere of edu-cation, the investments growth rates will step up in this direc-tion.

CommunicationsIn 2007, some 655,800 subscriber numbers were commis-

sioned in the republic, or 124 % of the planned targets; of these, 585,000 were radiotelephone subscribers and 70,800 were wire telephone subscribers, including 197 rural automat-ic telephone exchanges with total installed capacity of 18,900 subscribers. A total of 1022 kilometres of fibre-optic communi-cation lines were laid, including 556 kilometres in rural areas.

The total capacity of the subscribers’ base in the republic was brought up to 5.49 million subscribers, including 1.114 million of wire subscribers, and 4.376 million of cellular sub-scribers.

The general telephone penetration for republic’s wire net-works in the period of 2003 to 2007 from 23.48 phones to 31.1 phones per 100 persons, including the increase from 27.8 phones to 35.8 phones of urban telephone communications (40.74 phones in Kazan, which corresponds to the European level of development), and from 11.1 phones to 17.2 phones in rural areas.

In 2007, the number of Internet broadband access users in the republic increased to 100,000.

Further expansion of the range of information and commu-nication services is planned based on the digital network, in-troduction of new Triple Play services such as transfer of voice, data, video-on-demand, IP-TV, broadband cordless access to the Internet with the use of WiMAX technology, gradual transi-tion to the new generation networks (NGN) which provide the wide range of new infocomm services based on new packet switching networks.

3.14. TOURISMTourism activities are mainly concentrated in the capital. In

the city, the tourist services are rendered by about 200 firms. A total of 42 hotels are currently operated in Kazan with a to-tal of some 4,000 beds. In 2004, Kazan was visited by 345,000 tourists and sightseers; in 2005, this figure was 550,000, while

in 2006 it was over 600,000. In 2007, this figure reached some 1 million tourists. Leisure and trading infrastructure is inten-sively developing in the city. Regular flights from Kazan are performed by 14 airlines to 25 cities of Russia, 9 cities of the CIS countries, and 5 cities of the non-CIS countries. Each year, there are tens of additional charter flights to foreign countries. New flights are also opened, thus expanding the network of flights both in international and inland directions. Recently, Tatarstan was given the opportunity to carry out daily transits through Kaliningrad to the majority of European cities. This is one more window to Europe, facilitating the increase in the number of foreign tourists. Implementation of actions of the programme of tourism development in Kazan adopted at the federal level is aimed both at the development of the infra-structure of tourism sector and specific directions of tourism and at the promotion of Kazan in the inland and international tourist markets.

3.15. REPUBLIC’S BUDGETARY POLICYOver-fulfilment of the basic macroeconomic parameters in

2007 made it possible to mobilise to the consolidated budget of the Republic of Tatarstan a total of 106.1 billion roubles (US$ 4.32 billion, по среднему курсу 24,54 руб. за 1 долл. США) which constitutes 102 % to the specified plan.

The budget of the Republic of Tatarstan received 86.5 billion roubles (US$ 3.52 billion), of which 72.8 billion roubles were own revenues of the republic’s budget and 13.7 billion roubles were targeted funds of the federal budget.

А total of 19.59 billion roubles were mobilised to local bud-gets, implementation was 104 % to the plan. Local budgets of settlements received 937 million roubles, or 114 % to the plan.

The revenues of the consolidated budget in 2007 were based on profits tax, individual income tax, and corporate property tax.

The most important one, the profits tax, was collected in 2007 in the amount of 29.87 billion roubles (US$ 1.22 billion). The increase in the tax was 30 % or 7 billion roubles as com-pared to 2006.

The growth of tax revenues was basically generated in such industries as crude oil production (2 billion roubles), trade (0.8 billion roubles), chemical and petrochemical sectors (0.6 billion roubles), financing activities (0.5 billion roubles), and transport and communications (0.4 billion roubles).

In 2007, the individual income tax was received in the amount of 26 billion roubles; the increase against 2006 was 7 billion roubles.

The corporate property tax totalled 6.22 billion roubles. Grow-ing investment into fixed capital had a positive impact on the re-ceipt of this tax in 2007, which was 161 billion roubles according to statistics, a 10 per cent increase as compared to 2006.


39


Investor’s Guide

The total receipt of land fees in 2007 was 4.9 billion roubles, which is an increase by 22 % compared to 2006.

The collection of individual income tax has a noticeable growing trend (151 million roubles in 2005, 195 million rou-bles in 2006, and 259 million roubles in 2007).

Non-tax revenues totalled in 2007 some 12 billion roubles.The republic’s 2007 budget considered two targeted foun-

dations. These are the Road Traffic Safety Foundation and the Road Foundation. The targeted budget foundations collected 5 billion 235 million roubles.

Planned expenditures of the consolidated budget and the budget of the Republic of Tatarstan in 2007 were drawn down to 98 %; local budgets, to 99 %; cash disbursements of the con-solidated budget totalled 108.5 billion roubles; the republic’s budget, 89.1 billion roubles; and local budgets, 19.4 billion roubles.

3.16. FINANCE AND BANKING SYSTEMIn 2007, the consolidated financial result of the enterprises

and organisations of all kinds of activities totalled US$ 5,568.37 million.

The banking sector of the Republic of Tatarstan is one of the largest and most steadily working ones in the bank ser-vices market of the Russian Federation. The capital raised by all banks located in the territory of the republic from enterprises and organisations for the period from 2004 to early 2008 grew over three-fold. Deposits attracted by the banks from individu-als grew by more than 2.5 times.

Since 2004, the banks have been intensively increasing their credit facilities in the territory of the republic; in 2007, some US$ 13.76 billion of credits was granted, which is an increase by a factor of 1.6 compared to the previous year.

The banking sector of Tatarstan, as well as the banking sys-tem of Russia in general, is developing at quite a fast pace. The number of large local banks in Kazan yields to the Russia’s capi-tal only, even outperforming St. — Petersburg. Of 26 indepen-dent financial establishments operating in the republic, there are 25 banks. Furthermore, there are branches in Tatarstan whose head banks are located outside the republic; in par-ticular, 41 branches of Sberbank, 2 branches of Zenit Bank, and one branch each of Impexbank, Alpha Bank, Uniastrum Bank, Rosselkhozbank, Bank of Moscow, Solid Bank, Volga-Credit Bank, Uralsib, VTB-24, Rus-Bank, and Absolut.

The credits provided by Tatarstan banks increasingly take the investment format. Owing to the credits provided to small businesses within the framework of the governmental pro-gramme of small business support, businessmen of the repub-lic hold the lead in the Volga Federal District and are second in the Russian Federation in terms of fixed capital investments.

The activity level of clients asking mortgage credit lend-

ing facilities in the regions (including the same in Tatarstan) is growing now and these trends will survive irrespective of toughening bank conditions.

Alongside with granting of traditional bank services, one of the interesting trends of 2007 in the banking sector of Ta-tarstan was a development of Islamic financial products. As is known, Islamic banking uses the forms of financing that refuse credit interests, because the usury is forbidden by Shari’ah. Considering the presence of BTA-Kazan bank (a daughter com-pany of the leader of Kazakhstan banking sector) in the capital of Tatarstan, one may expect that in the foreseeable future, based on the memorandum signed between the Kazakhstan’s largest bank TuranAlem (BTA) and the Emirates Islamic Bank, these rather original and attractive Islamic services become ac-cessible to business structures and individuals in our republic.

3.17. RATESfor Electric Energy Being Supplied by the Guaranteeing Supplier OAO Tatenergo within the Limits of Its Scope of Activities and Energy Suppliers of the Republic of Tatarstan in 2008 (средний курс 24,54 руб. за 1 долл. США)

No. of con-sumer group

Groups of con-sumers

Unit of mea-surement

Voltage ranges

From

pow

er st

a-tio

n bu

ses

High

vol

tage

(110

kW

and

hig

her)

Firs

t med

ium

vol

t-ag

e (3

5 kW

)

Seco

nd m

ediu

m

volta

ge (2

0–1

kW)

Low

vol

tage

(0.4

kW

and

low

er)

3. Other consumers (rates are indicated without VAT)

One-part rate co-pecks / kWh

105.1 126.8 163.8 214.8 275.1

Two-part rate

— demand charge RUR / kW-month

182.4 189.0 366.0 486.8 644.8

— energy rate co-pecks / kWh

79.2 99.9 111.8 146.4 183.5

Rates differentiated for times of the day:

For three day times

One-part rate

Peak co-pecks / kWh

131.4 158.5 204.7 268.5 343.9

Intermediate co-pecks / kWh

105.1 126.8 163.8 214.8 275.1

Night co-pecks / kWh

89.4 107.7 139.2 182.6 233.8

Two-part rate

— demand charge RUR / kW-month

182.4 189.0 366.0 486.8 644.8

40


Investor’s Guide

— energy rate

Peak co-pecks / kWh

99.0 124.9 139.7 182.9 229.4

Intermediate co-pecks / kWh

79.2 99.9 111.8 146.4 183.5

Night co-pecks / kWh

67.4 84.9 95.0 124.4 156.0

NOTES:

1. Electric energy supplied for organisations for heat-ing and hot water purposes, in case the differentiated energy metering devices are available, is paid for in the night-time (from 11 p.m. to 7 a.m.) at a rate of corre-sponding consumer groups with a 50 % discount; in the day-time, at a rate of corresponding consumer groups, with a 25 % surcharge.

2. Consumers of group 3.5, in case the separate energy metering is available, can pay at the rates differentiated for times of the day, at the rates for consumers of group

Rates for Heat Energy Being Supplied by OAO Tatenergo to the Consumers in the Republic of Tatarstan in 2008

No. o

f con

-su

mer

gro

up

Kinds of heat carriers Unit of measure-ment

Rates for heat taken from headers

Rates for heat taken from heat-ing grids

2. Other consumers (without VAT):

2.1. Industrial consumers and their equivalents:

Hot water from thermal power plant RUR / Gcal 680.8 734.3

Bleed steam with pressure of:

— from 2.5 to 7.0 kg / cm2 RUR / Gcal 606.6 633.5

— from 7.0 to 13,0 kg / cm2 RUR / Gcal 628.6 671.2

— over 13 kg / cm2 RUR / Gcal 644.2 0.0

Direct and reduced steam RUR / Gcal 714.5 0.0

When establishing own generating facilities, the enterprises should have an approval of the kind of fuel to be used.

Gas SupplyThe interregional gas selling company, OOO Mezhregiongas

(a 100 % daughter company of OAO Gazprom), sells natural gas in the domestic market through independent legal enti-ties named regional gas companies (RGCs) being its subsidiar-ies. This RGC in Tatarstan is ZAO Tatgazinvest.

Water SupplyWater to the republic’s settlements is supplied through

centralised and decentralised systems operated by state-run enterprises of GP Vodokanal, GUP RPO Tatselzhilkomkhoz, and municipal unitary enterprises (MUP Vodokanal Kazan, ZAO

Chelny-Vodokanal) and their equivalents, large city-forming enterprises OAO Tatneft, OAO Nizhnekamskneftekhim, OAO Kazanorgsintez, OOO Tattransgaz, etc.

The centralised water supply systems are operated in the cit-ies and towns of Kazan, Naberezhnye Chelny, Yelabuga, Chis-topol, Aznakayevo, Zelenodolsk, Almetyevsk, Leninogorsk, Bugulma and several rural settlements.

Public utility companies supplying water:MUP Vodokanal Kazan, ZAO Chelny-Vodokanal; ZAO Voda

Prikamiya; OAO Zelenodolsk-Vodokanal; OAO Urussu-Vodo-kanal; OAO Almetyevsk-Vodokanal; OAO Bugulma-Vodokanal; OAO Buinsk-Vodokanal; OOO Zainsk-Vodokanal; OAO Tetuyshi-Vodokanal; OOO Vodokanal Leninogorsk; OAO Nurlat-Vodoka-nal; OAO Chistopol-Vodokanal; OAO Alekseyevsk-Vodokanal; OAO Mamadyshsky Vodokanal; GP Mendeleyevsk-Vodokanal; and OAO Bavly-Vodokanal.

3.18. EMPLOYMENTTotal workforce potential in the Republic of Tatarstan in 2007

was 2,399,000. Number of employed persons was 1,795,000 (74.8 % of the total workforce); of these, 1,377,000 was working by hire on all kinds of enterprises, including large, medium-sized, small enterprises, joint companies, and public organi-sations. Some 430,000 are employed in small businesses; of these, 212,000 are employees of small enterprises (included in the number of employees working on enterprises), 17,000 are employed in peasants’ (farmers’) establishments. In addi-tion, over 203,000 are working in private households produc-ing goods and services for sales. Unoccupied population was 604,000, which includes the unemployed (according to ILO methodology), pupils, students, post-graduate full-time stu-dents, persons occupied with children’s and sick relatives’ day care, persons who have no need to work (irrespective of the sources of their incomes), and unemployed retirees of active working age. As of the end of September 2007, some 20,200 jobless citizens were registered in the bodies of the public placement service, which accounted for 1.068 % (estimate) economically active population of the republic (at the end of September 2006 this figure was 1.327 %).

The demographic situation in 2007 preserves its positive trends. Increase in birth rates and decrease in death rates re-sulted in the positive changes in natural losses; they were re-duced by 31.2 % compared to the same period of 2006.

Structure of employment broken down by industries is as follows: manufacturing activities, 27 %; agriculture, 9 %; con-struction, 6.5 %; public administration, 4.5 %; health care ser-vices and social sphere, 8 %; transport and communications, 7 %; trade, 9 %; other, 16 %.



4. CONSUMER MARKET OF THE REPUBLIC OF TATARSTAN

4.1. CONSUMER MARKET INDICATORSThe consumer market of the Republic of Tatarstan in 2007

enjoyed continuous stability and high degree of commodity saturation. Consumer goods in the amount of US$ 11.21 billion were sold to the republic’s residents in 2007; the growth of the retail trade turnover constituted 20.9 %.

Growth of Retail Turnover in Trade Outlets of Tatarstan (US$ billion)

In terms of the retail trade turnover volumes, the Republic of Tatarstan is among top ten regions of the Russian Federa-tion and is high in the list of regions of the Volga Federal Dis-trict in the general rating.

42

Consumer Market Of The Republic Of Tatarstan

Investor’s Guide


The good indicators of the retail trade turnover bear witness of the high proportion of expenses connected with consumer goods in the structure of individual money expenditures. Con-sumer goods were sold in 2007 in the amount of US$ 2,980 per one republic’s resident.

The increasing living standards of people have a positive impact on the patterns of consumption. The turnover of non-foods grew at a faster pace. In 2007, non-food sales recorded higher contribution to the structure of the retail trade turnover as compared to foodstuffs, with their percentage being as fol-lows: 46.9 % (foodstuffs) and 53.1 % (non-foods).

Structure of Trade Turnover of Tatarstan

The turnover of public catering in 2007 totalled US$ 640 million, which is 116.6 % to the 2006 level. Personal services in 2007 were estimated at US$ 620 million.

Provision of Sales Premises per 1,000 Residents (square metres)

In 2007, the sales area per 1000 residents in the republic in general was 535 square metres (494 square metres in 2006), the average figure for urban areas was 670 square metres (813 square metres in Kazan), and for rural areas it was 260.2 square metres.

Growth in Proportions of Republic’s Manufacturer Commodities in the Range of Products Sold by trading Chains (%)

The trend of an outstripping growth of sales by trading organisations and individual businessmen who are engaged in activities in the stationary trading network (instead of mar-ketplaces) sustained through 2007. Enlargement of sales areas is responsible in many respects for the dropping sales at the food, ware and mixed markets from 38 % in 2000 down to 8.3 % in 2007 of the total retail trade turnover. This bears evidence, on the one hand, of the saturation of stores with a diversified range of quality goods with a wide price range; on the other, of the increasing dissatisfaction of the buyers with the quality of goods and conditions of their sale at the marketplaces.

To encourage the activities of the republic’s enterprises aimed at improving the quality of goods and enhancing the competitiveness of the manufactured products and rendered services, the Ministry of Industry and Trade of the Republic of Tatarstan, jointly with FGU Tatarstan Centre for Standardi-sation and Metrology and other ministries and agencies, has been holding the republic’s competition The Best Goods of the Republic of Tatarstan for successive four years. In 2007, the Re-public of Tatarstan for the first time took the honourable first place in the all-Russian competition 100 Best Goods of Russia.

The Republic of Tatarstan, while currently producing the entire volume of agricultural produce needed for food security purpos-

Consumer Market Of The Republic Of Tatarstan

43


Investor’s Guide

es, enjoys low prices for socially important foodstuffs, ranking 3rd to 4th in the Volga Federal District in this parameter.

4.2. PROSPECTS OF CONSUMER MARKET DEVELOPMENT

With a view to best satisfy people’s demand in the goods and services by ensuring their territorial accessibility and price affordability, the Programme for Development of Trade and Services in the Republic of Tatarstan for 2008–2010 was adopt-ed. Programme actions are aimed at the development of sec-tors and infrastructure of the consumer market, increase in the territorial accessibility of enterprises, development of socially important services, and creation of conditions for enhancing the efficiency of the governmental regulation in this sector. Implementation of the programme will allow the republic to increase the retail turnover of its trading enterprises from es-timated US$ 1,121 million in 2007 up to US$ 1,942 million in 2010, or by 168 % in current prices.

Growth of Retail Turnover in Trade Outlets of Tatarstan (US$ billion)

Implementation of the programme actions to further de-velop the trade chains and improve the quality of services ren-dered by public catering and personal services establishments

would promote the further growth in the volumes of paid services rendered to consumers. For example, the republic’s public catering turnover will grow (by estimate) from US$ 640 million in 2007 to US$ 1,070 million in 2010 or by 162 % in cur-rent prices, while the volumes of personal services will grow (by estimate) from US$ 620 million in 2007 to US$ 1,060 million in 2010 or by 165 % in current prices.

Personal Services Rendered to Individual Customers (US$ million)

One of the tools for increasing the territorial accessibil-ity of trading enterprises and services to the customers is the Programme for Creation and Development in the Republic of Tatarstan of Retail Outlets, Public Catering and Consumer Ser-vices Establishments within Walking Distance.

In the municipality of Kazan, the Executive Committee is currently working out the programmes for the creation and development of the “walking-distance establishments” and determining the locations for such establishments.

As of today, local programmes have been developed in four municipalities of the republic: Almetyevsk, Leninogorsk, Nur-lat, and Chistopol. These districts adopted plans for construc-tion of “walking-distance establishments” in 2007-2010.


Technoparks

5. TECHNOPARKSINNOVATION PRODUCTION TECHNOPARK IDEAThe Technopark Idea was opened on 5 February 2004. It was

created by the Resolution of the Tatarstan Cabinet of Ministers No. 640 dated 12 November 2002.

The mission of the company is the commercialisation of innovations through setting up and further development of small-sized companies.

Available advanced infrastructure allows the company to render for small businesses located there a full range of ser-vices needed for the establishment and development of their science-intensive operations.

The company’s concept is the combination of a venture management companies for start-ups interlaced with infra-structure of administrative project and support. For the most part, Technopark managers take part in the day-to-day opera-tion of the innovation businesses.

InfrastructureThe Technopark is one of the largest ones in Europe in the

areas occupied (a total of 30,000 square metres in the centre of Kazan).

45

Technoparks

Investor’s Guide

The infrastructure of Technopark consists of 3 main subdivi-sions:

• Business Incubator — office premises for start-up in-novation projects (2,500 square metres);

• Innovation Technology Centre — production facilities for new innovation companies (14,200 square metres);

• Business Park — office facilities for servicing companies and companies under development (4 buildings with a total floor space of 10,300 square metres).

KAMA INDUSTRIAL PARK MASTERKAMA Industrial Park was founded on 29 July 2004. Its au-

thorised capital is equal to US$ 19.6 million. OAO KIP Master was established on free premises of RemDiesel Plant (KAMAZ subsidiary) which is its shareholder. The second shareholder is the Republic of Tatarstan that invested funds to establish the park infrastructure.

KIP Master’s mission is to lease out production and office premises and assist its lessees in organising and developing business.

KIP Master is attracting partners to real sector of economy. The Park may accommodate not only businesses who are en-gaged in automotive industry; its sphere of interests is not limited by mechanical engineering only. KIP Mater offers its production and office premises for all businessmen.

KIP Master is the only operated industrial park which is oriented towards mechanical engineering. Such an industrial production-oriented park for Naberezhnye Chelny is a really unique facility. KIP Master acts as a tool for the interaction of large, medium-sized and small businesses.

The creation of the park was due to the necessity of prompt establishing up-to-date, cost effective facilities for the produc-tion of automotive components, the manufacture of which is unprofitable within a large company.

A work is underway to attract lessees and to elaborate the

interaction programmes between the KIP Master participants and OAO KamAZ.

The management of OAO KAMAZ and OAO KIP MASTER provide the most beneficial conditions for arranging the pro-duction on the park premises.

OAO KAMAZ recognised the park participants as privileged partners, which enjoyed a number of preferences:

• ensuring guaranteed orders to its participants;• providing the lessees with technical documentation and

workpieces of KamAZ manufacture for its orders placed with them;

• providing the participants with services of KamAZ own retail and distribution outlets;

In addition to all the said advantages, the Park boasts of the lowest rentals in the region which remains the same within the period of the Park activities.

Since mid-2005, the Park started to lease its premises and that was the beginning of its commercial work.

To date, KIP Master accommodates 126 enterprises of vari-ous forms of ownership. The spheres of activities of OAO KIP Master lessees (including foreign ones) are different, mostly they are associated with the automotive cluster and primarily with a work for OAO KamAZ.

The number of persons employed on the lessees’ premises totals 1,821; the estimated aggregate output of all lessees is about US$ 70 million.

Innovation activity of the project is in the unique character of the united interests of business structures, city administra-tion and Republic’s authorities.

OAO KamAZ benefits from the transfer of its non-core as-sets, supporting flexible production processes, the opportuni-ty of concentrating its investment resources on key products, testing and approving new designs while introducing new products, vehicle components’ cost saving, and from the qual-ity control of the outsourcing components.

Participant companies benefit from obtaining long-term or-ders, flexible lease terms, lowering production costs and sales expenses.

For the city and the republic, the success of the Park guar-antees new jobs and partial legalisation of “gray” market of la-bour and wages. Businessmen who transfer their production lines to the Park from neighbouring regions also create new jobs, and their taxes are received by the city’s and republic’s budgets.

KIP Master is a special form of a technopark suggesting clear interaction of small, medium-sized, and large businesses for the benefit of all its participants.

IDEA SOUTH-EASTThe basic aim of its creation is the assistance, support and

implementation of business projects within the framework of

46

Technoparks

Investor’s Guide

the Tatneft Corporate Programme for the Support and Devel-opment of Small and Medium-Sized Businesses.

The mission of the Technopark is the organisation of new production facilities in the city of Leninogorsk by means of at-tracting the ideas of small and medium-sized business com-munities for the creation of new, promising enterprises. When working with businessmen, the innovation approach of Tech-nopark activities is introduced with its basic direction being the implementation of projects from an idea to the start-up of a new enterprise. The Technopark keeps a record of arriving projects, analyses and studies them, carries out business plan-ning, and renders legal, book-keeping, marketing, and tech-nical consulting services during all phases of the production formation and development.

HI-TECH IT PARKIt is planned that the following facilities will be located in

the territory of the IT Park:1. Technological Centre for IT developments of embedded

systems in the spheres of mechanical engineering and petrochemical sector;

2. Centre for innovation and technological business education;

3. Centre for multiple access to the computing cluster;4. Premises for resident companies.

PETROCHEMICAL PARK KHIMGRADIt is planned that the following facilities will be located in

the territory of the Petrochemical Park:1. Centre for multiple use of pilot petrochemical plants;2. Centre for biotechnologies;3. Laboratory for supercritical technologies;4. Corporate university;5. Premises for resident companies, including production

facilities.

Technoparks


6. FOREIGN ECONOMIC AND INTERREGIONAL ACTIVITIES OF THE REPUBLIC OF TATARSTAN 6.1. BASIC INDICATORS OF FOREIGN ECONOMIC

ACTIVITIES OF THE REPUBLIC OF TATARSTANTrade and economic relations of Tatarstan with foreign

countries and regions of the Russian Federation are of great importance for its economy. We can speak today of a wide range of republic’s international links. Their scope is consid-erably widened, geography expanded, and content became richer.

Trade Turnover of Tatarstan

48

Foreign Economic And Interregional Activities Of The Republic Of Tatarstan

Investor’s Guide


The trend toward the growth in the foreign trade turnover of the Republic of Tatarstan (FTT RT) observed from 2002, also persisted in 2007. According to official statistics, the foreign trade turnover of Tatarstan in 2007 totalled US$ 16.1 billion (including exports of US$ 14.4 billion and imports of US$ 1.7 billion), which exceeds the figures of 2006 by 26.8 %.

The balance of Tatarstan foreign trade is traditionally posi-tive and tends to absolute growth figures (due to the outstrip-ping growth of exports over imports). Following the results of 2007, the balance of foreign trade was US$ 12.7 billion (growth by 20.9 % or by US$ 2.2 billion).

Key Indicators of Foreign Trade Turnover of the Republic of Tatarstan, US$ million

2000 2001 2002 2003 2004 2005 2006 2007

FTT RT 3,165.6 3,108.1 3,649.4 4,709.8 6,452.5 10,083.4 12,688.2 16,087.1

Exports 2,802.7 2,750.5 3,274.4 4,220.4 5,871.7 9 373.2 11,589.3 14,382.7

% of exports

to FTT RT 88.5 % 88.5 % 89.7 % 89.6 % 91.0 % 93.0 % 91.3 % 89.4 %

Imports 362.9 357.6 375.0 489.4 580.8 710.2 1,098.9 1,704.4

% of imports

to FTT RT 11.5 % 11.5 % 10.3 % 10.4 % 9.0 % 7.0 % 8.7 % 10.6 %

Balance 2,439.8 2,392.9 2,899.4 3,731.0 5,290.9 8,663.0 10,490.4 12,678.3

% of balance

to FTT RT 77.1 % 77.0 % 79.4 % 79.2 % 82.0 % 85.9 % 83.7 % 78.8 %

Imports coverage by exports

7.72 7.69 8.73 8.62 10.11 13.20 10.55 8.4

In the last seven years, the contribution of exports to the foreign trade turnover of the Republic of Tatarstan constituted 90±3 % (in 2007, roughly 89.4 %), while of imports it was 10±3 % (in 2007, roughly 10.6 %).

Export of the Republic of Tatarstan 2007

The imports coverage by exports in 2007 was roughly a fac-tor of 8.4, which is a decrease compared to the similar period of the previous year (10.55).

In 2007, growing export volumes were recorded for all major republic’s commodities, including products with high degree of processing. For instance, deliveries of technical ma-chinery products increased by 29 % in 2007 compared to the relevant period of 2006, deliveries of rubbers grew by 18.9 %; deliveries of plastics by 90.9 %; those of tyres grew by 18.8 %. This had a positive impact on the increase in contribution of these groups of goods to the export structure of the Republic of Tatarstan.

In 2007, a weakening fuel and raw trend was observed in the structure of republic’s exports, which declared itself by the decrease of crude oil proportion in the commodity structure of exports down to 63.5 % (65.3 in 2006) and oil products propor-tion down to 13.3 % (13.6 % in 2006).

Export of the Republic of Tatarstan

As this takes place, the proportion of technical machinery products grew in the structure of exports up to 7.2 % (as com-pared to 7.0 % in January-December 2006), plastics and plas-tic products grew to 2.3 % (1.5 %), alongside with other highly processed products.

The proportion of wood and wooden products remained constant (0.2 %), as well as that of tyres (1.3 %). The propor-tion of synthetic rubber decreased, although insignificantly, to 4.0 % (from 4.2 %), so do cyclic hydrocarbons with 1.4 % (from 1.7 %).

At the same time, crude oil remained a major contributor to the republic’s exports. Growing world prices for crude oil resulted in the increasing values of its deliveries abroad in January to September 2007 by almost 20.6 %, with a growth of physical volumes by only 6.2 %. The contribution of crude oil to the structure of exports in 2007 was 63.5 %.

As this takes place, exports to the CIS countries grew by 17.3 % in the excess of US$ 4.1 billion and exports to the non-CIS countries grew by 27.1 % totalling US$ 10.2 billion. So, the 2007 volumes of export deliveries to the non-CIS countries re-


49


Investor’s Guide

corded outstripping growth rates as compared to deliveries to the CIS countries. As a result, the contribution of the non-CIS countries in the republic’s exports has increased, and that of the CIS countries correspondingly decreased. The CIS countries in 2007 accounted for 28.7 % of exports (in January to Decem-ber 2006, this figure was 30.4 %), and the non-CIS countries ac-counted for 71.3 % (in January to December 2006, 69.6 %).

The main countries that consumed republic’s exports in 2007 were Ukraine with 15.5 %, Hungary (12.0 %), Turkey (9.3 %), Netherlands (9.0 %), Poland (8.4 %), and Belarus with 7.3 %.

In the last three years the Republic of Tatarstan is still among top five Russia’s regions in the volumes of exports and current-ly holds the lead in the Volga Federal District of the Russian Federation.

Import deliveries to Tatarstan play a considerably smaller role in the foreign trade of the republic than exports from it. At the same time, a persistent growth of the republic’s imports is observed in recent years.

The considerable increase of imports in 2007 (by 55.1 %) became a consequence of the trends currently existing on the global commodity markets which influence the rates of imports of major goods and growth of domestic demand (re-sulted from increasing incomes), the creation of new produc-tion facilities and updating of a fixed capital at the republic’s enterprises. These exerted a stimulating effect on increase in the growth rates of commodity imports, especially imports of mechanical engineering products, ferrous metals, and ferrous pipes.

Import of the Republic of Tatarstan 2007

The value of imports increased by US$ 605.5 million (or by 55.1 %) as compared in 2006 and totalled US$ 1.7 billion.

As this takes place, imports from the non-CIS countries grew by a factor of 1.7 totalling US$ 1,386.8 million; imports from the CIS countries grew by 6.9 % to the amount of US$ 317.6 million. The contribution of the CIS countries to imports fell to 18.6 % (in 2006 it was 27 %), while contribution of non-CIS countries grew to 81.4 % (from 73 %).

Four basic importer countries accounted for over half of to-tal imports to Tatarstan (Germany, 23 % of the total republic’s import; Korea, 15 %; Belarus, 9.8 %; Turkey, 7.9 %).

In 2007, the increase of imports in all basic commodity groups was recorded.

Import of the Republic of Tatarstan

The group of technical machinery products was the main contributor to the republic’s imports with 74.3 %. Deliveries of mechanical engineering products which grew by a factor of 1.5 allowed this commodity group to strengthen its leading positions. Petrochemical products (plastics, products of or-ganic chemistry) held the second place with 4.5 %. Metals and metal products come third with 2.3 %.

In terms of import volumes, the Republic of Tatarstan ranks 15th among the regions of the Russian Federation and 2nd among the regions of Volga Federal District yielding to Nizhniy Novgorod Region.

EXPORT SUPPORTOne of the major directions in the implementation of the

state policies in the sphere of foreign trade activities is the sup-port of export-oriented manufacturers and, first of all, those which make products with high degree of processing that are competitive not only in the domestic Russian market, but out-side Russia as well.

Since 2005, the Republic of Tatarstan takes an active part in the federal programs of financial support to exporting en-terprises. So, in accordance with the Resolution of the Rus-sian Government No. 357 dated 06.06.2005 “On Approving the Rules of Indemnification from Federal Budget to Russian Industrial Product Exporters of a Part of Expenses for Interests Payable for Credits Received in Russian Crediting Organisa-tions” the republic’s export-oriented enterprises received over US$ 10.2 million in 2005-2007.

At the regional level, a support is also rendered to repub-lic’s export-oriented manufacturers through involvement of the republic’s enterprises to the participation in events held with an aim of developing trade and economic cooperation

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(trade and economic missions, business forums, round table discussions, international conferences, visits of Tatarstan del-egations to the CIS and non-CIS countries). Furthermore, the enterprises participate in the exhibition and fair events which receive partial funding from budgetary sources.

For the purpose of promoting the republic’s products to for-eign markets, catalogues of Export Products Manufactured by Enterprises of the Republic of Tatarstan and Investor’s Guide are published which, together with presentation and informa-tion materials about the republic and its commodity produc-ers are distributed during the visits of delegations from the Republic of Tatarstan abroad.

With the aim of encouraging the republic’s exporters, the participation of republic’s enterprises is annually organised in the contest entitled “Best Exporter of the Russian Federation”. In this contest held by the Ministry of Economic Development of the Russian Federation in 2007 (following the results of 2006), the republic’s winners were as follows: in automotive in-dustry, OAO KamAZ; in chemical industry (organic chemistry), OAO Nizhnekamskneftekhim; in the category of “The Most Vigorously Developing Russian Exporter”, OAO Kazan Plant Elektropribor.

6.2. FOREIGN TRADE PARTNERS OF THE REPUBLIC OF TATARSTAN

In the geographical structure of foreign trade, the non-CIS countries still hold the priority over the CIS countries despite the growth of trade turnover with the latter. In 2007, the turn-over with the CIS countries accounted for 27.7 % of the total Tatarstan foreign trade turnover, and the turnover with the non-CIS countries, 72.3 %.

In 2007, over half of the foreign trade turnover of the Repub-lic of Tatarstan was formed owing to the trade with Ukraine, Hungary, Turkey, the Netherlands, and Germany.

Key Foreign Trade of the Republic of Tatarstan in 2007

The list of foreign trade partners of Tatarstan is headed by Ukraine in the last 3 years; the foreign trade turnover with this country exceeded 14.4 % of the republic’s FTT in 2007. Hun-gary (ranked 3rd in 2006) moved to the second place (10.8 % of FTT). The proportion of Turkey (now the 3rd place) was esti-mated in 2007 at some 9.1 %. The Netherlands ranked 4th with a proportion of 8.2 %; Poland is 5th with 7.8 %.

The foreign trade turnover with the major trading partners of Tatarstan is traditionally being formed for the most part due to deliveries of republic’s crude oil, oil products, organic chemistry products, trucks, aircraft, and imports of technical machinery products.

6.3. INTERREGIONAL AND INTERNATIONAL COOPERATION

Interregional activities of the Republic of Tatarstan play an increasingly important role in the economic development of our republic and take increasingly diverse shapes. The authori-ties of the republic aspire to create favourable conditions to al-low republic’s manufacturers to enter the Russian market and to build their business there.

Following the results of 2006, the interregional turnover of the Republic of Tatarstan totalled US$ 6.83 billion (US$ 5.02 billion in 2005, a growth by 28 %), including exports in the amount of US$ 3.83 billion and imports in the amount of US$ 3 billion (there was a growth both in exports of products to the regions of the Russian Federations and in imports from them).

According to the Ministry of Industry and Trade of the Re-public of Tatarstan, the interregional commodity turnover in 2007 will total over US$ 7.6 billion.

Ten leading regions engaged in trade and economic activi-ties with our region are Moscow, Republic of Bashkortostan, Chelyabinsk, Samara, Moscow, Sverdlovsk, Nizhniy Novgorod, Tyumen and Rostov Regions, and St. — Petersburg. These regions together account for about 60 % of the total interre-gional turnover of the Republic of Tatarstan (the interregional commodity turnover was US$ 3.88 billion). In general, the co-operation is carried out with 81 regions of the Russian Federa-tion.

International cooperationThe active work is underway on the expanding of trade and

economic relations between the Republic of Tatarstan and for-eign countries.

With this purpose, about 100 visits of delegations from the Republic of Tatarstan to foreign countries, foreign delegations and 10 business missions to the Republic Tatarstan were or-ganised and held, as well as a number of events in the field of the international economic relations (business forums, semi-nars, conferences, discussions, exhibitions, etc.).


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The work on the coordination of international relations and foreign economic activities of the Republic of Tatarstan was carried out in the interaction with federal authorities (Ministry of Economic Development and Trade of the Russian Federa-tion, Ministry of Foreign Affairs of the Russian Federation), with diplomatic and trade missions of Russia abroad and foreign countries to Russia, with representative offices of the Republic of Tatarstan in the non-CIS countries, and with foreign organi-sations and agencies.

In 2007, visits to the Republic of Tatarstan of foreign del-egations were organised with participation of Ambassadors Extraordinary and Plenipotentiary and commissioners from diplomatic missions of foreign countries to Russia including those from Belarus, Islamic Republic of Pakistan, Republic of Iraq, Republic of Afghanistan, Islamic Republic of Iran, People’s Republic of China, Federal Republic of Germany, Kingdom of Sweden, Switzerland, Hungary, Czech Republic, Republic of Slovenia, Australia, Colombia, Canada, etc.

Work in structure of intergovernmental commissionsWith a view of implementing the tasks in the field of foreign

economic activities of Tatarstan specified in its inter-govern-mental agreements, the work was conducted in 2007 to ensure the participation of representatives from the Republic of Tatar-stan at the meetings of the intergovernmental commissions on economic cooperation and sessions of working groups.

Tatarstan working groups for development of trade and economic activities with foreign countries

One of the high-priority directions of the work on the co-ordination of international and foreign economic activities of the Republic of Tatarstan is the activities of Tatarstan working groups for the development of trade and economic relations with an aim of strengthening the cooperation and represent-ing interests of the republic’s enterprises.

Throughout 2007, the working group for the cooperation with the countries of the Organization of the Islamic Confer-ence (created in early 2006) was successfully functioning with-in the framework of joint actions with Islamic states.

With a view of strengthening the cooperation ties of the Re-public of Tatarstan with the Islamic Republic of Iran in 2007, the Draft Plan for the development of trade and economic, sci-entific, technological, and cultural cooperation between the Republic of Tatarstan and the Islamic republic Iran was worked out and proposals were made on the creation of the Tatarstan part of the joint Tatarstan-Iranian working group.

Cooperation of the Republic of Tatarstan with international financial organisations

Extension of cooperation with the European Bank for Reconstruction and Development

The development of cooperation with the EBRD follows the line of attracting credit resources from the Bank to the imple-

mentation of development projects in the Republic of Tatar-stan.

On 17 April 2007, an agreement was signed on the acquisi-tion by EBRD of a 28.25 % share in the capital of AKB Spurt. This transaction has been approved by the EBRD Board of Directors in September 2006 in the framework of its long-term strategy for rendering support to regional bank development and as-sistance in crediting small and medium-sized businesses, be-ing a key to the economic diversification of Russia.

On 19 May 2007, an agreement was signed on the opening by the EBRD of a US$ 5 million credit line to OAO Bank Kazan-sky to cover trade financing contracts.

On 20-21 May 2007, the 16th EBRD Annual Meeting of the Board of Governors and International Business Forum were held in Kazan. The Meeting was attended by official delega-tions from 61 Bank shareholder countries and delegations of two international Bank shareholder organisations, the EIB and the European Commission. The total number of attendees at EBRD events totalled 2,364 persons from 69 countries.

On 19 May 2007, the International Investment Forum “Rus-sian Regions: Strategy of Growth” was held as dated to the 16th Annual Meeting of the EBRD. The primary goal of the forum was to discuss the strategies of the investment and innova-tion development of Russia and Tatarstan, issues of interaction between the authorities and the business under conditions of economic globalisation.

On 2-3 September 2007, the delegation from the Eur-asian Development Bank headed by its Chairman of the Board I. V. Finogenov visited the Republic of Tatarstan. On 3 September, the meeting with Tatarstan Prime Minister Rustem Minnikhanov took place; the discussions included an oppor-tunity of implementing joint promising projects (manufacture of Tu-334 airplanes planes at OAO KAPO n.a. Gorbunov; re-construction, renovation, construction, and modernisation of heating facilities in small towns of Tatarstan; construction in Mendeleyevsk of a new production complex of OAO Ammo-nium; participation in the implementation of the sub-project “Sustainable Development of Construction Sector of the Re-public of Tatarstan in 2006-2008” as adopted by the Tatarstan Cabinet of Ministers (under the national project of “Affordable Comfortable Housing to Citizens of Russia”); and the Coopera-tion Agreement and Protocol of Intents between the Govern-ment of the Republic of Tatarstan and the Eurasian Develop-ment Bank were signed.

Improvement of investment climate, protection of creditors’ rights and expansion of general segment of financial services

For the purpose of carrying out of the study of the invest-ment climate in the Republic of Tatarstan in comparison with other Russia’s regions under the Doing Business methodology, the Republic of Tatarstan was visited on 2-9 June 2007 by the Programme Coordinator for Europe and Middle Asia in the

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Foreign Investment Advisory Service (FIAS) of the World Bank Group (Washington, USA) Igor Artemiev and FIAS expert Gul-mira McHale. During the visit, FIAS experts had meetings with representatives of 25 public and private institutions for filling a questionnaire on the following Doing Business procedures:

— Creation of a new company, a limited liability society;— Procedure for reception of permits, for example, con-

struction permits and occupancy permits;— Registration of title to real property and transactions

with it;— Conduct of export-import transactions.Also analysed were the changes in the investment climate

constituents in the Republic of Tatarstan in the interaction with commercial organisations of the Republic of Tatarstan with foreign investments.

6.4. INTERGOVERNMENTAL AGREEMENTSThe Republic of Tatarstan currently has contractual relations

with 67 regions of the Russian Federation. As of 1 May 2008, Tatarstan has signed 22 Protocols to the agreements and con-tracts with Russia’s constituent entities.

6.5. ACTIVITIES OF REPRESENTATIVE OFFICES AND TRADING HOUSES OF THE REPUBLIC OF TATARSTAN

Representative offices of the Republic of Tatarstan

A total of 19 representative offices of the Republic Tatarstan are currently operating in the Russian regions and foreign countries.

In 2007, a special attention was devoted to the strengthen-ing of the economic constituent of representative offices and coordination of their work in such basic directions as rendering assistance in the promotion of products of Tatarstan commod-ity producers to foreign markets and attracting investments into the Republic of Tatarstan.

Another important direction of activities of the Representa-tive Offices in 2007 was the work on the attraction of invest-ments and newest technologies to the economy of Tatarstan. Innovation investment projects supported by the Representa-tive Offices were implemented in the various spheres of Re-public’s economy, such as construction sector, petrochemical industry, and agriculture.

Jointly with the Bashkortostan-based OAO Belstal, the con-struction project of an iron and steel works in Yelabuga is be-ing worked out (investments will amount to US$ 200 million).

The Tatarstan-based ZAO TAIF-Gazservis and Czech-based ADAMOV-System a.s. reached an agreement on the purchase of three complete gasoline service stations for the Repub-lic of Tatarstan, the work is underway with Czech-based CKD Nove Energo a.s. and FAVEA spol. s ro on the implementation of large joint projects (construction of gas turbine power sta-tions at Minnibayevo Gaz Processing Plant and construction of a first-aid hospital in Kazan) through attracting the preferential credit resources.

Jointly with Bersey Limited Company and Starwood of Tur-key, the project of creation of MDF panel production is being worked out in the Republic of Tatarstan. The amount of invest-ments raised with assistance of the Representative Office in 2007 totalled over US$ 5 million (increase in capacities of the Efes-Krasny Vostok, and investments into the expansion of manufacturing activities of OOO ZASS-Alabuga).

Agreements were reached between OAO Tatneft and Preiss-Daimler on the creation of a joint venture company for the fibreglass production in the SEZ Alabuga (total amount of in-vestments is EUR 71.5 million).

The Republic’s Oncologic Dispensary, jointly with US organi-sations and companies, has worked out a project of creating the International Centre for Nuclear Medicine with the use of nanotechnologies in the Republic of Tatarstan (amount of in-vestments will make US$ 16 million). An agreement on coop-eration was reached between OAO Tatneft and US-based Hy-perion in the field of well reworking in Tatarstan (the amount of investments will be US$ 200-500 million).

Commodity Turnover of Tatarstan Trading Houses in 2007 (US$ million)


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In 2007, the commodity turnover of Tatarstan Trading Hous-es totalled over US$ 250 million (against US$ 160 million — worth products sold through them in 2006). The leading Trad-ing Houses in terms of commodity turnover are those in the Republic of Turkey, Saratov Region, Samara Region, Republic of Kyrgyzstan, Republic of Azerbaijan, Republic of Bashkor-tostan, Ukraine, and in Moscow.

Alongside with the development of trade and economic co-operation, Trading Houses render support to the development of cooperation with representatives of national and cultural Tatar autonomies in regions of the Russian Federation and for-eign countries. With an aim of preserving and developing the Tatar national culture in the regions of the Russian Federation and abroad, Trading Houses finance the opening of Sunday schools, construction of mosques, take part in celebrations of national holidays, arrange tours of Tatar artistic groups, and participate in the implementation of projects in the field of education.

Representatives of national and cultural autonomies of Ta-tars in constituent entities of the Russian Federation and in the CIS countries are involved in the work of Trading Houses, which allows them to attract the potential of Tatar diasporas in pursuance of the corresponding clauses of agreements. Rep-resentatives of diasporas’ business communities take part in the promotion of Tatarstan products to the markets of other regions by studying the needs of economies of their respec-tive regions.

6.6. CHAMBER OF COMMERCE AND INDUSTRY OF THE REPUBLIC OF TATARSTAN

The Chamber of Commerce and Industry of the Republic of Tatarstan was founded in 1993 and is one of the leading es-tablishments of this kind in the Russian Federation. Today it has its branches and Representative Offices in all cities of the republic.

Closely interacting with bodies of state administration, the Chamber of Commerce and Industry of the Republic of Tatar-stan assists organisations and enterprises in their foreign eco-nomic operations.

The Chamber of Commerce and Industry of the Republic of Tatarstan has a rich experience in the support of small and medium-sized businesses in what refers to the introduction of their products to external markets.

The basic trends of its activity are: information support, ac-countant’s and legal consulting services, training of personnel, exhibition and fair activity, attraction of investments in the re-public, preparation and support of investment projects, assist-ing in the development of foreign economic relations.

In order to organise a prompt and quality finding of busi-ness partners, the Chamber of Commerce and Industry of the Republic of Tatarstan keeps the register of entrepreneurial structures participating in foreign economic activity in the ter-ritory of the Republic of Tatarstan.


Reference Information

7. REFERENCE INFORMATION

7.1. BODIES OF STATE POWER OF THE REPUBLIC OF TATARSTANPRESIDENT OF THE REPUBLIC OF TATARSTAN

Mintimer Shaimiev420014, Kazan, Kremlin, Presidential PalacePhone: +7 (843) 567-89-01, 292-70-88E-mail: [email protected]://www.tatar.ru / president

Office of the President of the Republic of TatarstanYury Kamaltynov

Chief of Staff420014, Kazan, KremlinPhone: +7 (843) 567-89-12E-mail: [email protected]

Department for Foreign Affairs under the President of the Republic of Tatarstan

Timur AkulovDirector

State Advisor to the President of the Republic of Tatarstan for Foreign Affairs

Phone: +7 (843) 567-87-26Fax: +7 (843) 292-00-92E-mail: [email protected], [email protected]

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7.2. STATE COUNCIL OF THE REPUBLIC OF TATARSTAN

1, Svoboda Sq., Kazan, 420060

Chairman of the State Council of the Republic of TatarstanFarid MukhametshinPhone: +7 (843) 267-63-00Fax: +7 (843) 267-64-89E-mail: [email protected]: / / www.gossov.tatarstan.ru

Deputy Chairman of the State Council of the Republic of Tatarstan

Alexandr GusevPhone: +7 (843) 267-63-21, 267-63-20E-mail: [email protected]

Deputy Chairman of the State Council of the Republic of Tatarstan

Rimma RatnikovaPhone: +7 (843) 267-63-31Fax: +7 (843) 292-45-64E-mail: [email protected]

Secretary of the State Council of the Republic of TatarstanValentina LipuzhinaPhone: +7 (843) 267-63-51Fax: +7 (843) 292-18-51E-mail: [email protected]

7.3. COMMITTEES OF THE STATE COUNCIL OF THE REPUBLIC OF TATARSTAN

1, Svoboda Sq., Kazan, 420060For Issues of State Building and Local GovernmentAleksandr FedorovChairmanPhone: +7 (843) 267-64-21

For Issues of Legislation, Lawfulness, Regulations and Deputy Ethics

Zyamil YagudinChairmanPhone: +7 (843) 267-64-11Fax: +7 (843) 292-75-81E-mail: [email protected]

For Budgetary, Tax and Financial IssuesIlsour SafiullinChairmanPhone: +7 (843) 267-64-31Fax: +7 (843) 292-86-53E-mail: [email protected]

[email protected]

For Economy, Investment, and BusinessMarat GaleyevChairmanPhone: +7 (843) 267-64-44Fax: +7 (843) 292-75-59E-mail: [email protected]

For Ecology, Natural Resources, and Land UseRinat AbdullinChairmanPhone: +7 (843) 267-64-71Fax: +7 (843) 292-72-96

For Social PolicyChingiz MakhmutovChairmanPhone: +7 (843) 267-64-61

For Culture, Science, Education, and National IssuesRazil ValeyevChairmanPhone: +7 (843) 267-64-51. Fax: +7 (843) 292-87-07E-mail: [email protected],

[email protected]

7.4. CABINET OF MINISTERS OF THE REPUBLIC OF TATARSTAN

1, Svoboda Square, Kazan, 420060http://prav.tatar.ru /

Prime Minister of the Republic of TatarstanRustam MinnikhanovPhone: +7 (843) 264-77-02, 292-85-51Fax: +7 (843) 264-32-64E-mail: [email protected],

[email protected], [email protected], [email protected]

First Deputy Prime Minister of the Republic of TatarstanRavil MuratovPhone: +7 (843) 264-77-41Fax: +7 (843) 264-40-00E-mail: [email protected]

First Deputy Prime Minister of the Republic of TatarstanBoris PavlovPhone: +7 (843) 264-75-94. Fax: +7 (843) 264-63-08E-mail: [email protected]

Deputy Prime Minister of the Republic of Tatarstan, Minister of Culture of the Republic of Tatarstan

Zilya ValeyevaPhone: +7 (843) 264-74-01. Fax: +7 (843) 292-07-53E-mail: [email protected], [email protected]

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Deputy Prime Minister of the Republic of Tatarstan, Minister of Agriculture and Foodstuffs of the Republic of Tatarstan

Marat AkhmetovPhone: +7 (843) 292-03-82, 292-05-09Fax: +7 (843) 292-05-38, 291-90-08E-mail: [email protected], [email protected],

[email protected]

7.5. MINISTRIES OF THE REPUBLIC OF TATARSTANMinistry of Interior of the Republic of Tatarstan

Asgat SafarovMinister2a, Fuchs Street, Kazan, 420111Phone: +7 (843) 291-32-17Fax: +7 (843) 291-32-17E-mail: [email protected]://www.mvdrt.ru

Ministry of Health of the Republic of TatarstanAirat FarrakhovMinister11 / 6, Ostrovsky Street, Kazan, 420111Phone: +7 (843) 231-79-98Fax: +7 (843) 238-41-44e-mail: [email protected]://minzdrav.tatar.ru

Ministry of Land and Property Relations of the Republic of Tatarstan

Valery VasilyevMinister26, Vishnevsky Street, Kazan, 420043Phone: +7 (843) 264-24-50Fax: +7 (843) 236-27-71E-mail: [email protected], [email protected]://mzio.tatar.ru

Ministry of Information and Communications of the Republic of Tatarstan

Farit FazylzyanovMinister8, Kremlyovskaya Street, Kazan, 420111Phone: +7 (843) 292-72-00Fax: +7 (843) 264-51-42E-mail: [email protected], [email protected]://mcrt.tatar.ru

Ministry of Culture of the Republic of TatarstanZilya ValeyevaMinister, Deputy Prime Minister of the Republic

of Tatarstan66 / 33, Pushkin Street, Kazan, 420060Phone: +7 (843) 264-74-01Fax: +7 (843) 292-07-53E-mail: [email protected]://mincult.tatar.ru

Ministry of Education and Science of the Republic of Tatarstan

Nail ValeyevMinister9, Kremlyovskaya Street, Kazan, 420111Phone: +7 (843) 292-75-41Fax: +7 (843) 292-93-51, 292-44-80E-mail: [email protected], [email protected]://mon.tatar.ru

Ministry of Civil Defence and Emergency Situations of the Republic of Tatarstan

Rafis KhabibullinMinister50, Gubkin Street, Kazan, 420088Phone: +7 (843) 291-57-02(843) 272-91-24, 291-57-02Fax: +7 (843) 273-67-54E-mail: [email protected]://mchs.tatar.ru

Ministry for Youth Affairs and Sport of the Republic of Tatarstan

Marat BariyevMinister12, Peterburgskaya Street, Kazan, 420115Phone: +7 (843) 264-32-84, 264-31-32, 264-29-52Fax: +7 (843) 264-31-47, 264-32-58E-mail: [email protected], [email protected]: / / www.tatminmolsport.ru

Ministry of Agriculture and Foodstuffs of the Republic of Tatarstan

Marat AkhmetovMinister, Deputy Prime Minister of the Republic of TatarstanPodyezd 1, Kremlin, Kazan, 420014Phone: +7 (843) 292-05-09, 292-03-82Fax: +7 (843) 292-05-38, 291-90-08E-mail: [email protected], [email protected],

[email protected]://agro.tatar.ru


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Ministry of Labour, Employment, and Social Protection of the Republic of Tatarstan

Airat ShafigullinMinisterbldg. A, 81, Dekabristov Street, Kazan, 420034Phone: +7 (843) 522-87-55Fax: +7 (843) 543-95-14E-mail: [email protected]

Ministry of Construction, Architecture, and Utilities of the Republic of Tatarstan

Marat KhusnullinMinister10, Dzerzhinsky Street, Kazan, 420111Phone: +7 (843) 231-14-01Fax: +7 (843) 231-15-55E-mail: [email protected],

[email protected]

Ministry of Industry and Trade of the Republic of Tatarstan

Aleksandr KogoginMinister4, Ostrovsky Street, Kazan, 420111Phone: +7 (843) 299-10-07Fax: +7 (843) 292-16-45E-mail: [email protected]://mpt.tatar.ru /

Ministry of Transport and Roads of the Republic of Tatarstan

Ildus FaskhutdinovMinister31a, Yershov Street, Kazan, 420045Phone: +7 (843) 291-90-10Fax: +7 (843) 291-91-42E-mail: [email protected]: / / mindortrans.tatar.ru

Ministry of Finance of the Republic of TatarstanRadik GaizatoullinMinister37, Pushkin Street, Kazan, 420015Phone: +7 (843) 264-79-06, 264-37-45, 264-78-33Fax: +7 (843) 264-36-55E-mail: [email protected], [email protected]://minfin.tatar.ru

Ministry of Ecology and Natural Resources of the Republic of Tatarstan

Aglyam SadretdinovMinister75, Pavlyukhin Street, Kazan, 420049Phone: +7 (843) 267-68-01, 267-68-69Fax: +7 (843) 267-68-70E-mail: [email protected]://eco.tatar.ru

Ministry of Economy of the Republic of TatarstanMarat SafiullinMinister55, Moskovskaya Street, Kazan, 420021Phone: +7 (843) 264-46-23Fax: +7 (843) 264-46-33, 264-46-23E-mail: [email protected]://mert.tatar.ru

Ministry of Justice of the Republic of TatarstanMidkhat KurmanovMinister16, Kremlyovskaya Street, Kazan, 420503Phone: +7 (843) 292-42-02Fax: +7 (843) 292-48-83E-mail: [email protected]://minjust.tatar.ru

Ministry of Forestry of the Republic of TatarstanZufar AbdullinMinister59a, Kosmonavtov Street, Kazan, 420061Phone: +7 (843) 291-04-38. Fax: +7 (843) 291-04-37E-mail: [email protected]://minleshoz.tatar.ru

Directorate of Federal Registration Bureau of the Republic of Tatarstan

Acting Manager: Vladimir A. Bushkov74, Avangardnaya st., Kazan, 420054Tel.: +7 (843) 278-88-04 (receiving office),

278-88-08 (for consulting services)Fax: +7 (843) 278-88-06

Agency for Entrepreneurship Development of the Republic of Tatarstan

Gulnara SergeyevaDirector General50, Peterburgskaya Street, Kazan, 420107Phone: +7 (843) 570-40-01Fax: +7 (843) 570-40-02e-mail: [email protected]

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Main Directorate for Maintaining and Development of Transport and Roads of Tatarstan under the Ministry of Transport and Roads of the Republic of Tatarstan

Roustam ZakirovDirector67a, Iskra Street, Kazan, 420073Phone: +7 (843) 264-66-60Fax: +7 (843) 264-62-60E-mail: [email protected]

GUP Agency for State Contracts, Investment Activity and Interregional Relations of the Republic of Tatarstan under the Ministry of Economy of the Republic of Tatarstan

Yakov GellerDirector55, Moskovskaya Street, Kazan, 420021Phone: +7 (843) 292-95-77, 264-50-93, 293-53-79Fax: +7 (843) 292-95-77E-mail: [email protected], www.agzrt.ru

7.6. BODIES OF FEDERAL POWER IN THE TERRITORY OF THE REPUBLIC OF TATARSTANChief Federal Inspector in the Republic of Tatarstan

Marsel Galimardanov61, K. Marx Street, Kazan, 420012Phone: +7 (843) 292-93-34 (public reception),

292-55-24 (press service), 264-25-52 (reception)Fax: +7 (843) 264-25-02E-mail: [email protected]

Board of the Federal Security Service of the Russian Federation in the Republic of Tatarstan

Yevgeny VdovinHead of the Board23, Dzerzhinsky Street, Kazan, 420111Phone: +7 (843) 292-71-40, 231-45-55, 264-22-03Fax: +7 (843) 264-66-66E-mail: [email protected]

Board of the Federal Antimonopoly Service in the Republic of Tatarstan

Alexandr GrunichevHead of the Board26, Vishnevsky Street, Kazan, 420043Phone: +7 (843) 236-89-22Fax: +7 (843) 238-19-46E-mail: [email protected]

Territorial Body of the Federal Service for State Statistics in the Republic of Tatarstan

Valery Kandilov55, Moskovskaya Street, Kazan, 420021Phone: +7 (843) 292-94-82Fax: +7 (843) 292-94-82E-mail: [email protected]

Board of the Federal Tax Service in the Republic of Tatarstan

Midkhat ShagiakhmetovHead of the Board13a, Teatralnaya Street, Kazan, 420111Phone: +7 (843) 235-11-01, 235-11-02, 235-11-03Fax: +7 (843) 235-13-11, 235-11-04

Board of the State Committee of the Russian Federation for Control over the Turnover of Narcotics in the Republic of Tatarstan

Ilgiz MinnoullinHead of the Board50, Gubkin Street, Kazan, 420088Phone: +7 (843) 272-94-33Fax: +7 (843) 272-94-65E-mail: [email protected]

Board of the Representative of the Ministry for Economic Development and Trade of the Russian Federation for the Republic of Tatarstan

Rustam Karimov1, Akhtyamov Street, Kazan, 420021Postal address: 420021, Kazan, Kremlin, P. O. B.16Phone: +7 (843) 293-24-01Fax: +7 (843) 293-24-01E-mail: [email protected]

Department of Consular Service under the Ministry of Foreign Affairs of the Russian Federation, Moscow

Phone: +7 (495) 244-45-81, 244-91-39

Representative Office the Ministry of Foreign Affairs of the Russian Federation in Kazan

Phone: +7 (843) 292-01-27Fax: +7 (843) 292-01-57Spasskaya Tower, Kremlin, Kazan

Board of Passport and Visa Service under the Ministry of Interior of the Republic of Tatarstan:

8 / 2, Chekhov Street, KazanPhone: +7 (843) 291-20-93


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7.7. ORGANISATIONS THAT SUPPORT FOREIGN ECONOMIC ACTIVITYMinistry of Industry and Trade of the Republic of Tatarstan

4, Ostrovsky Street, Kazan, 420111Phone: +7 (843) 299-10-07Fax: +7 (843) 292-16-45E-mail: [email protected]

Board of the Representative of the Ministry for Economic Development and Trade of the Russian Federation for the Republic of Tatarstan

1, Akhtyamov Street, Kazan, 420021Phone: +7 (843) 293-24-01Fax: +7 (843) 293-24-01E-mail: [email protected]

Department for Foreign Affairs under the President of the Republic of Tatarstan

9, Kremlin, Kazan, 420014Phone: +7 (843) 567-87-46, 567-87-26Fax: +7 (843) 292-00-92E-mail: [email protected]://www.tatar.ru / append85.html

Volga Customs Board — Tatarstan Customs House56, Korolenko Street, Kazan, 420094Phone: +7 (843) 5437302, 291-92-28Fax: +7 (843) 543-71-83, 291-92-29Teletype: 224313 TULPA RUE-mail: [email protected]

State Registration Chamber under the Ministry of Justice of the Republic of Tatarstan

74, Avangardnaya Street, KazanPhone: +7 (843) 278-88-04Fax: +7 (843) 278-88-06

Committee for External Relations and Tourism of Kazan2a, Kremlyovskaya Street, Kazan, 420014Phone: +7 (843) 2926121. Fax: +7 (843) 2929672E-mail: [email protected]

GUP Agency for International Cooperation Development under the Cabinet of Ministers of the Republic of Tatarstan

35 / 2, Pravo-Bulachnaya Street, Kazan, 420111Phone: +7 (843) 292-79-02Fax: +7 (843) 292-87-76E-mail: [email protected]

Chamber of Commerce and Industry of the Republic of Tatarstan

18, Pushkin Street, Kazan, 420111Phone: +7 (843) 264-62-07, 238-24-76, 236-08-04Fax: +7 (843) 236-09-66E-mail: [email protected]://www.tpprt.ru

RosOEZ (Russian Special Economic Zones) BoardTerritorial Board of the Federal Agency for Special Economic Zones Administration in the Republic of Tatarstan (TB RosOEZ in the Republic of Tatarstan)Legal address: Street 14, Industrial Site Alabuga, Yelabuga,

Republic of TatarstanPostal address: Yelabuga 423602, P. O. B. 161 / 1;Phone / Fax: (85557) 5-90-00Phone / Fax: +7 (843) 570-39-20E-mail: [email protected]; www.alabuga.rosoez.ru

OAO SEZIPT AlabugaPhone: (85557) 5-90-05Fax (85557) 5-90-04E-mail: [email protected];http: / / www.oao-oez.rosoez.ru / subsidiaries / alabuga /

7.8. REPRESENTATIVE OFFICES OF THE REPUBLIC OF TATARSTAN IN THE REGIONS OF THE RUSSIAN FEDERATION, CIS AND FOREIGN COUNTRIESNON-CIS COUNTRIES

USAPermanent Representative Office under the Trade Repre-

sentation of the Russian FederationRavil Nigmedzyanov2001 Connecticut Avenue В. W. Washington, D. C.20008

USAPhone: 1 (202) 232-59-88Fax: 1 (202) 232-29-17

TurkeyPlenipotentiary Representative Office in the Republic of

TurkeyRadik Gimatdinov№. 10 Ataolgac Sokok, Emirgan, Istanbul, TurkeyPhone: (90212) 323-10-30, 323-10-31,

323-10-28, 323-10-29 Fax: 323-10-32E-mail: [email protected]

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FrancePlenipotentiary Representative Office in the French

RepublicIskander Yusupov45, rue de Lourmel, 75015 Paris, FrancePhone: (33) 14-622-30-03. Fax: (33) 14-622-30-04E-mail: [email protected]

Republic of CubaTrade and Economic Representative Office in the Republic

of CubaLeila TazetdinovaPhone: (537) 20-498-66. Fax: 204-56-65

Czech RepublicPermanent Representative Office in the Czech and Slovak

RepublicsZufar AbdulgaleyevSibirske nam., 1027, 16000 Praha 6 CRPhone: (4202) 243-112-68Fax: 333-254-52E-mail: [email protected]

FinlandTrade and Economic Representative under the Trade

Representation of the Russian FederationAvubaker MagzhanovNeovostoliiton Kaupallinen Edustusto Suomessa,

Tehtaankatu 1 C 00140 Helsinki 14 FinlandPhone: +35 (84) 0554-33-83. Fax: +35 (89) 65-24-35

SwitzerlandTrade and Economic Representative Office in the Swiss

ConfederationGuzel Salikhova17, Rue de la Rotisserie, 1204 GenevaPhone: +41 223-108-558. Fax: +41 223-108-557CIS COUNTRIES

AzerbaijanPermanent Representative Office in the Republic of

AzerbaijanNail Zaripov84, Gasan bek Zardabi Pr., AZ 1122, BakuPhone: +994 (12) 433-27-91Fax: +994 (12) 433-28-93, 432-87-70

BelarusTrade and Economic Representative Office in the Republic

of BelarusIrek Gafiyatullin15, Revolutsionnaya Street, Minsk, 220037, BelarusPhone: 810 (37517) 211-01-34. Fax: 810 (37517) 226-00-35

KazakhstanPlenipotentiary Representative Office in the Republic of

KazakhstanIldus TarkhanovOffice VP-2, 6, Pochenbai Batyr Pr., Sary Arka District,

AstanaPhone / Fax: 3272 79-09-29Branch: 23, Dosmukhamedov Street, AlmatyPhone: (3172) 23-64-03, 23-64-04, 23-64-05, 23-60-62Fax: (3172) 23-64-03, 23-64-05E-mail: [email protected]

UzbekistanPermanent Representative Office in the Republic of

UzbekistanIldar Nigmetzyanov30A, V.Vakhidov Street, Tashkent, 700031Phone: (99871) 152-40-22. E-mail: [email protected]

UkraineTrade Representative Office in UkraineRostislav Vakhitov28 / 2, Grushevsky Street,Kiev, 252021Phone: +38 (044) 253-02-35, 253-92-05, 253-56-37Fax: +38 (044) 253-02-35

RUSSIAN FEDERATION AND REGIONS

Russian FederationPlenipotentiary Representative Office in the Russian

FederationNazif MirikhanovBuilding 1, 13 / 15, 3d Kotelnichesky Pereulok, Moscow,

107813Phone: 8-55 (495) 915-58-02, 915-53-71Fax: 915-34-87, 915-06-10E-mail: [email protected]

St. -Petersburg and Leningrad RegionPermanent Representative Office in St.-Petersburg and

Leningrad RegionShamil AkhmetshinOffice 2, 14 / 39, 11th Line, Vasilyevsky Ostrov,

St.-Petersburg, 193060Phone: 8-55 (812) 323-12-27, 323-61-39Fax: (812) 323-12-27, 323-61-39E-mail: [email protected]

Sverdlovsk RegionPermanent Representative Office in Sverdlovsk RegionRavil Bikbov24, Sacco and Vancetti Street, Yekaterinburg, 620077Phone: 8-55 (3433) 71-43-19, 371-14-89. Fax: 71-14-89E-mail: [email protected]


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Khanti-Mansi Autonomous OkrugTrade and Economic Representative Office in the

Khanty-Mansi Autonomous OkrugFanis Gataoullin23, Zapadnaya Street, Surgut, 62-84-14Phone: 8-55 (3462) 55-57-17Fax: 55-55-30

Nizhny Novgorod RegionTrade and Economic Representative Office in Nizhny

Novgorod RegionVil Ibragimov9, Nesterov Street, Nizhny Novgorod, 603155Phone: +7 (831) 436-79-84, 419-58-00Fax: +7 (831) 419-57-81E-mail: [email protected]

Saratov RegionTrade and Economic Representative Office in Saratov

RegionKamil Ablyazov75, Moskovskaya Street, Saratov, 410600Phone: 855 (8452) 27-92-00, 50-92-48Fax: 855 (8452) 27-15-60E-mail: [email protected]

Republic of BashkortostanTrade and Economic Representative Office in the Republic

of Bashkortostan77, Oktyabrya Pr., Ufa, 450075Phone: 855 (3472) 35-41-11E-mail: [email protected]

7.9. REPRESENTATIVE OFFICES AND CONSULAR INSTITUTIONS OF FOREIGN COUNTRIES AND REGIONS OF THE RUSSIAN FEDERATION IN THE REPUBLIC OF TATARSTANGeneral Consulate of the Republic of Turkey in Kazan

Ahmet ErginConsul General23 / 27, Gorky Street, Kazan, 420015Phone: +7 (843) +7 (843) 299-53-10, 264-25-11Fax: 264-25-11E-mail: [email protected]

General Consulate of the Islamic Republic of Iran in KazanReza Baghban Kondori6, Spartakovskaya Street, KazanPhone: +7 (843) 526-58-49, 526-58-51Fax: 526-58-56

Representative of the Chechen Republic in the Republic of Tatarstan

Nazarbek Samkhanov23, Ostrovsky Street, KazanPhone: +7 (843) 292-16-00Fax: +7 (843) 269-42-84

Representative Office of Ivanovo Regional Administration in the Republic of Tatarstan

Fyarit LyapinRepresentative29, Oktyabrskaya Street, KazanPhone: +7 (843) 543-81-01, 543-81-11

Representative Office of the Republic of Dagestan in the Republic of Tatarstan

Malachidibir MalachidibirovRepresentative4-19a, Mushtari Street, KazanPhone: +7 (843) 264-21-42

Trade Representative Office of the Kabardino-Balkarian Republic in the Republic of Tatarstan

Ramazan ZhaboyevHeadPhone: +7 (843) 557-91-20

7.10. MUNICIPALITIES OF KAZAN AND NABEREZHNYE CHELNYCity of Kazan Municipality

Ilsur MetshinMayor1, Kremlyovskaya Street, Kazan, 420014Phone: +7 (843) 299-18-18, 299-16-60Fax: +7 (843) 299-15-46E-mail: [email protected]

Executive Committee of Kazan MunicipalityRafis BurganovHead1, Kremlyovskaya Street, Kazan, 420014Phone: +7 (843) 299-18-81Fax: +7 (843) 299-16-60E-mail: [email protected]://www.kzn.ru

City of Naberezhnye Chelny MunicipalityIldar Khalikov23, Toufan Prospekt, Naberezhnye Chelny, 423805Phone: (8552) 34-94-43Fax: (8552) 34-16-17E-mail: [email protected], [email protected]://www.nabchelny.ru /

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7.11. EXHIBITION ENTERPRISES AND ORGANISATIONSOAO Kazanskaya Yarmarka

Nail KhusnutdinovDirector General8, Orenburgsky Trakt, Kazan, 420059Phone: +7 (843) 570-51-11. Fax: +7 (843) 570-51-15E-mail: [email protected]: http://www.expokazan.ru

OOO TatexpoGalina SinyakovaDirector18, Pushkin Street, Kazan, 420111Phone: +7 (843) 264-62-61, 264-59-35Fax: +7 (843) 264-62-71, 264-62-51E-mail: [email protected]: http://www.tatexpo.com

National Culture Centre KazanRinat ZakirovDirector86, Pushkin Street, Kazan, 420060Phone: +7 (843) 236-78-01,238-33-51, 238-33-61Fax: +7 (843) 236-55-63

OOO «ERG» Exhibition EnterpriseVladimir NikolayevDirectorOffice 227, 10, Yamashev Street, Kazan, 420044Phone: 541-34-27, 523-61-17, 518-05-03,

518-05-04, 518-07-41Fax: +7 (843) 541-34-27E-mail: [email protected]: http://www.erg-expo.ru

Exhibition Hall of Artists’ UnionAbrek AbzigildinChairman57, Karl Marx Street, Kazan, 420015Phone: +7 (843) 236-65-41, 236-10-71Fax: +7 (843) 236-65-41E-mail: [email protected]

7.12. CUSTOMSTatarstan Customs House

56, Korolenko Street, Kazan, 420094Phone: +7 (843) 543-73-02Fax: +7 (843) 543-71-83E-mail: [email protected]

Kazan Customs Post144, Orenburgsky Trakt, KazanPhone: +7 (843) 268-00-27Fax: +7 (843) 291-93-29

Customs Point at Kazan AirportAirport, Kazan, 420017Phone: +7 (843) 267-87-99Fax: +7 (843) 267-87-94

Almetyevsk Customs Post6, Industrialnaya Street, Almetyevsk, 423400Phone: +7 (8553) 25-35-74

“Begishevo” Customs PostAirport, Nizhnekamsk-13, 423570Phone: +7 (8555) 79-68-58

Bugulma Customs Post66, Musa Jalil Street, Bugulma, 423230Phone: +7 (85514) 4-11-96. Fax: +7 (85514) 4-11-96

Customs Clearing and Customs Control Department №2 of the Naberezhnye Chelny Customs Post

1a, Belyaeva Street, Tukayevsky District, Naberezhnye Chelny, 423814

Phone: +7 (8552) 51-03-59

Naberezhnye Chelny Customs Post112, Sh. Usmanov Street, Naberezhnye Chelny, 423826Phone: +7 (8552) 51-03-59Fax: +7 (8552) 61-64-12E-mail: [email protected]

Zelenodolsk Customs Post1a, Korolev Street, Zelenodolsk, 422530Phone: +7 (84371) 3-32-73. Fax: +7 (84371) 3-32-73

Nizhnekamsk Customs Post13, Vokzalnaya Street, Nizhnekamsk, 423570Phone: +7 (8555) 38-10-56, 38-10-52Fax: +7 (8555) 38-10-52

7.13. BANKSBulgar Bank

Marat FatykhovChairman of the Board8, Lukovsky Street, Kazan, 420107Phone: +7 (843) 269-81-04, 269-97-14,

270-59-80, 270-59-99http://www.bulgarbank.ru

AB Devon Credit (Almetyevsk)Nafis GumarovPresident, Chairman of the Board77, Lenin Street, Almetyevsk, 423450


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Phone: +7 (8553) 32-57-77. Fax: +7 (843) 31-75-13E-mail: [email protected]://www.devoncredit.ru

AB Devon Credit (Kazan)Damir TalipovVice-President, Kazan Branch Manager58, Karl Marx Street, Kazan, 420015Phone: +7 (8553) 264-51-82. Fax: +7 (843) 264-55-43E-mail: [email protected]://www.devoncredit.ru

AKB Ak BarsRobert MinnegalievChairman of the Board1, Dekabristov Street, Kazan, 420066Phone: +7 (843) 519-39-99. Fax: +7 (843) 519-39-75E-mail: [email protected]: http://www.akbars.ru

AKB ZarechyeNatalya DevyatykhPresident2, Luknitsky Street, Kazan, 420032Phone: +7 (843) 549-99-03, 554-94-13Fax: +7 (843) 555-75-60E-mail: [email protected]: http://www.zarech.ru

AKB SpurtYevgeniya DautovaChairman of the Board2, Spartakovskaya Street, Kazan, 420107Phone: +7 (843) 291-50-00, 291-50-15Fax: +7 (843) 238-94-00E-mail: [email protected]: http://www.spurtbank.ru

AKB TatInvestBankAlevtina GaleyevaChairman of the Board24, Vishnevsky Street, Kazan, 420043Phone: (8432) 238-03-39, 238-75-83, 238-49-01, 238-37-38Fax: +7 (843) 238-07-56E-mail: [email protected]: http://www.tib.ru

AKB EnergobankDmitry VagizovChairman32, Sadykova Street, Kazan, 420021Phone: +7 (843) 231-60-01, 293-27-37Fax: +7 (843) 231-60-04E-mail: [email protected]: http://www.energobank.ru

Joint Stock Mortgage Bank Ipoteka-InvestGeorgy AgadzhanovChairman of the Board58, Vosstaniya Street, Kazan, 420039Phone: +7 (843) 542-46-37, 542-49-60Fax: +7 (843) 519-13-71E-mail: [email protected]: http://www.ip-bank.ru

AKB BTA-KazanMudaris IdrisovChairman of the Board58, Ibragimov Street, Kazan, 420066Phone: +7 (843) 525-74-11, 525-74-74Fax: +7 (843) 525-74-11E-mail: [email protected]: http://www.bta-kazan.ru

Joint Stock Commercial Mortgage Bank AKIBANKIldar GalyautdinovChairman of the Board88a, Mira Pr., Naberezhnye Chelny, 423818Phone: +7 (843) 77-33-33Fax: +7 (8552) 72-23-77E-mail: [email protected]: http://www.akibank.ru

Almetyevsk Branch of Zenit BankNafis MukhametshinBank Manager6, Mira Street, Almetyevsk, 421461Phone: +7 (843) 30-60-90, 25-58-18Fax: +7 (8553) 25-82-62Internet: http://www.zenit.ru

AOZT TatsotsbankLyudmila KitaitsevaChairman of the Board18 / 23, Chernyshevsky Street, Kazan, 420503Phone : +7 (843) 29-271-94, 292-61-74Fax: +7 (843) 292-22-80E-mail: [email protected]: http://www.tatsotsbank.ru

ZAO Avtogradbank, Almetyevsk Branch of GKBLandysh Mirvalieva-KaveyevaBank Manager80a, Gerzen Street, Almetyevsk, 423450Phone: +7 (8553) 22-44-00, 23-09-43Fax: +7 (8553) 22-44-01E-mail: [email protected],

[email protected]

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ZAO AKB Kara AltynRinat AbdullinChairman of the Board15, Amirkhan Street, Kazan, 420126Phone: +7 (843) 545-57-52, 520-54-20Fax: +7 (843) 545-61-17E-mail: [email protected]: http://www.altynbank.com /

ZAO GKB AvtogradbankVenera IvanovaChairman of the Board43, Kh. Toufan Street, Naberezhnye Chelny, 423831Phone: +7 (8552) 32-50-00Fax: +7 (8552) 32-50-80E-mail: [email protected]: http://www.avtogradbank.ru

Kazan Branch of Zenit BankDamir MukhametshinBank Manager21-1, Telman Street, Kazan, 420012Phone: +7 (843) 230-40-05, 230-40-06E-mail: [email protected]: http://www.zenit.ru

KB Impexbank (OOO)Liliya BogachevaDirector of Kazan Branch35A, Yershov Street, Kazan, 420061Phone: +7 (843) 299-09-09Fax: +7 (843) 272-37-63

KB KamComBankRozaliya GabdullinaChairman of the Board21, Gidrostroitelei Street, Naberezhnye Chelny, 423807Phone: +7(8552) 704-99-18Fax: +7 (8552) 42-24-36E-mail: [email protected]: http://www.kamkombank.ru

KBER Bank of KazanAidar KhamidullinChairman of the Board1, Soldatskaya Street, Kazan, 420066Phone: +7 (843) 518-98-98Fax: +7 (843) 516-88-80E-mail: [email protected]: http://www.bankofkazan.ru

National Bank of the Republic of TatarstanYevgeny BogachovChairman37, Bauman Street, Kazan, 420013Phone: +7 (843) 235-05-00Fax: +7 (843) 236-90-80

OAO Bank KazanskyTakhir GainutdinovChairman of the Board61, Yamashev Pr., Kazan, 420126Phone: +7 (843) 517-43-71Fax: +7 (843) 517-43-79E-mail: [email protected]: http://www.bik.ru

OAO AIKB TatfondbankIldus MingazetdinovPresident43 / 2, Chernyshevsky Street, Kazan, 420111Phone: +7 (843) 291-98-84Fax: +7 (843) 29-16-25E-mail: [email protected]: http://www.tfb.ru

OOO KB IntekhbankKonstantin TimofeyevChairman of the Board24, Marjani Street, Kazan, 420021Phone: +7 (843) 221-17-00Fax: +7 (843) 221-17-01E-mail: [email protected]: http://www.intechbank.ru

Branch of Bank Tatarstan No.8610 of the Russian Sberbank

Gennady ZakharovVice-Chairman of the Board, Manager of Bank Tatarstan44, Butlerov Street, Kazan, 420012Phone: +7 (843) 264-49-00, 264-64-10Fax: +7 (843) 264-47-00Internet: http://www.vvb.sbrf.ru

Tatar Joint-Stock Bank for Economic Development Tatekobank

Evilina FilinaChairman of the Board47, Br. Kasymovykh Street, Kazan, 420101Phone: +7 (843) 229-34-43, 229-05-06Fax: +7 (843) 229-79-52E-mail: [email protected]: http://www.tateco.ru


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Tatarstan Agro-Industrial Bank TatagroprombankRafael GalimovChairman of the Board4, Zinin Street, Kazan, 420097Phone: +7 (843) 519-32-00Fax: +7 (843) 519-33-33E-mail: [email protected]: http://www.tapb.ru

7.14. INVESTMENT COMPANIESOOO TAIF-Invest

6, Vishnevsky Street, Kazan, 420043Phone: +7 (843) 236-97-50, 236-33-42, 236-33-45

ZAO Investment Company Elemte3, Rakhmatullin Street, Kazan, 420503, P. O. B. 258Phone: +7 (843) 264-41-20, 264-50-55, 264-50-35

OOO Dialog-Invest57, K. Marx Street, Kazan, 420015Phone: +7 (843) 236-95-61, 236-95-41

Investment Company TATINKBldg A, 2, Chuikov Street, Kazan, 420094, P. O. B. 55Phone: +7 (843) 516-80-40

OAO Tatneftekhiminvest-Holding29, Yershov Street, Kazan, 420045Phone: +7 (843) 272-41-74

OOO Investment Company TDT-Invest25, Oktyabrskaya Street, Kazan, 420057Phone: +7 (843) 543-80-52

ОАО National Holding Company of the Republic of Tatarstan

2, Stolbov Street, Kazan, 420097Phone: +7 (843) 526-95-10, 526-95-34, 526-95-40

OOO Managing Company Zolotoi Kolos6, Orenburgsky Trakt, Kazan, 420059Phone: +7 (843) 277-59-15, 277-80-08

OAO Central Depository of the Republic of Tatarstan26, Vishnevsky Street, Kazan, 420043, P. O. B. 37Phone: +7 (843) 264-62-33, 236-94-96

ZAO Investment-Financial Corporation of the Republic of Tatarstan

9 / 4, Kremlyovskaya Street, Kazan, 420111, P. O. B. 27Phone: +7 (843) 243-99-37

Branch No. 4 of ZAO Interregional Registration Company in Nizhnekamsk

1, Korabelnaya Street, Nizhnekamsk, 423570Phone: +7 (8555) 42-73-10, 42-72-20Fax: +7 (8555) 42-72-20

7.15. INSURANCE COMPANIESZAO SK Chulpan

66, Pushkin Street, Almetyevsk, 423450Phone: +7 (8553) 25-05-15

OAO NASKO-Tatarstan2-B, Chuikov Street, Kazan, 420094, P. O. B. 255Phone: +7 (843) 298-88-21, 272-15-21, 260-66-44

OOO Insurance Group Asko24, Vakhitov Prospekt, Naberezhnye Chelny, 423800Phone: +7 (8552) 39-03-33, 39-23-92, 39-73-05

Kazan Branch of OAO ZhASO13, Yakhin Street, Kazan, 420202Phone: +7 (843) 231-25-42, 292-14-96

7.16. MASS MEDIAOAO Television and Radio Company Novy Vek

9, Sh. Usmanov Street, Kazan, 420095Phone: +7 (843) 570-50-00. E-mail: [email protected]: http://tnv.ru /

ZAO STS-Kazan34, Gladilov Street, KazanPhone: +7 (843) 554-25-08

State TV — and Radio-Broadcasting Company «Tatarstan»9, Sh. Usmanov Street, KazanPhone: +7 (843) 554-71-70

Efir TV Company17, Proletarskaya Street, Kazan, 420032Phone: +7 (843) 519-30-00, 519-30-09Fax: +7 (843) 554-20-42E-mail: [email protected]: http://www.efir.tv

Domashny-Kazan TV Company6, K. Zetkin Street, KazanPhone: +7 (843) 519-31-22

Respublika Tatarstan Newspaper, Editorial Office2, Dekabristov Street, Kazan, 420066Phone: +7 (843) 292-37-00, 541-37-87Fax: +7 (843) 292-37-00E-mail: [email protected]: http://www.rt-online.ru

Vremya i Dengy Newspaper, Editorial Office35a, Yershov Street, Kazan, 420111Phone: +7 (843) 292-97-20, 292-96-94. Fax: +7 (843) 299-88-13E-mail: [email protected]: http://www.e-vid.ru

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Vechernyaya Kazan Newspaper, Editorial Office2, Dekabristov Street, Kazan, 420066Phone: +7 (843) 543-51-14Fax: +7 (843) 543-27-13E-mail: [email protected]: http: / / www.evening-kazan.ru

Tatarstan Magazine, Editorial Office2, Dekabristov Street, KazanPhone: +7 (843) 292-36-35Fax: +7 (843) 292-36-35E-mail: [email protected], [email protected]

Kazanskie Vedomosti Newspaper, Editorial Office5, Chistopolskaya Street, Kazan, 420066Phone: +7 (843) 542-98-16Fax: +7 (843) 542-98-76E-mail: [email protected]: http://www.kazved.ru /

7.17. TRAVEL AGENCIESInturcentr

46, Profsoyuznaya Street, Kazan, 420111Phone: +7 (843) 299-41-11, 299-42-22Fax: +7 (843) 264-41-73E-mail: [email protected]: http://www.intour.ru

Vera-TourOffice 1, 14 / 31, Shchyapov Street, Kazan, 420012Phone: +7 (843) 230-49-80, 230-42-58Fax: +7 (843) 230-49-80E-mail: [email protected]: http://www.vera-tour.ru

Sputnik-Trans-Service-Kazan4, Kirovsky Pereulok, Kazan, 420202Phone: +7 (843) 292-55-95, 292-74-22, 292-07-33Fax: +7 (843) 236-56-93E-mail: [email protected]: http: / / www.sputnik-kazan.ru

Elin-Tour127, Dekabristov Street, Kazan, 420034Phone: +7 (843) 542-16-36, 542-70-74Fax: +7 (843) 542-16-36E-mail: [email protected]

Volzhskie Puteshestviya74a, Dostoevsky Street, Kazan, 420097Phone: +7 (843) 299-41-75, 299-41-85, 299-42-41Fax: +7 (843) 299-41-85E-mail: [email protected]: http://www.volga-travel.ru

Obyedineniye Tourist55b, Peterburgskaya Street, Kazan, 420107Phone: +7 (843) 238-14-76, 238-14-87, 253-87-87Fax: +7 (843) 238-14-76, 238-14-87E-mail: [email protected]: http://www.turist-kzn.ru

Stolitsa16, Levobulachnaya Street, Kazan, 420111Phone: +7 (843) 292-69-26, 292-95-59, 292-62-62Fax: +7 (843) 292-62-62E-mail: [email protected]

Granada3, Chistopolskaya Street, Kazan, 420066Phone: +7 (843) 518-33-47Fax: +7 (843) 518-33-47E-mail: [email protected]

Kazan-Intour28, Levobulachnaya Street, Kazan, 420111Phone: +7 (843) 292-05-55, 292-80-90Fax: +7 (843) 292-05-55E-mail: [email protected]

Sacvoyage42, Pushkin Street, Kazan, 420111Phone: +7 (843) 238-73-16, 264-33-30Fax: +7 (843) 264-33-30E-mail: [email protected]

7.18. INFORMATION FOR VISITORS TO THE REPUBLIC’S CAPITAL

When planning a visit to the Republic of Tatarstan, please, note the following:• The Republic of Tatarstan is on Moscow time (Greenwich

time plus 3 hours);• If you want to use credit cards in the territory of the

Republic of Tatarstan, it is advisable to previously look through the list of credit cards acceptable at the ex-change counters of the republic’s banks.

7.19 HOW TO OBTAIN ENTRY VISAObtaining visas

Recommendations for making the invitations for foreign partners.

Any organisation (legal entity) in the Republic of Tatarstan in-viting its foreign partners and counterparts should execute the corresponding invitation through the Consular Service Depart-ment of the Ministry of Foreign Affairs of the Russian Federation (MID RF) or through regional Representative Offices of MID RF.


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Investor’s Guide

The Ministry of Foreign Affairs of the Russian Federation executes an invitation within a period not exceeding 30 days from the date of application (submission of all duly executed documents).

To visit the defence industry enterprises, foreign citizens should make previous arrangements with, and obtain the authorisation of, the competent federal authorities, in accor-dance with regulations of the Russian Federation.

Passports of foreign citizens staying in the Russian Federation (the Republic of Tatarstan) for the period exceeding 3 days (except for holidays and days off) should be registered as established.

The accepting organisation registers the passports of for-eign citizens arrived by invitation of this organisation for the period not exceeding three months and submits relevant in-formation to the competent interior affairs authorities. Infor-mation should be submitted to the interior affairs authorities in writing within 3 days from the date of arrival.

When registering, the period of stay of foreign citizens in the territory of the Republic of Tatarstan should be indicated. The accepting organisation may extend the registration valid-ity for the period not exceeding three months. Prolongation of the registration validity for the period exceeding three months and renewal of visa to foreign citizens is carried out by the competent interior affairs authorities. To obtain an advice on inviting the foreign citizens, please, contact the Board of the Federal Migration Service of the Russian Federation in the Re-public of Tatarstan.

Regulatory acts governing entry, exit and stay of foreign citizens in the Republic of Tatarstan are as follows:

• Federal Law No. 114-FZ «On Procedure for Exit from the Russian Federation and Entry to the Russian Federation» dated 15 August 1996 (as amended on 24 June 1999);

• Federal Law No. 115-FZ «On Legal Status of Foreign Citizens in the Russian Federation « dated 25 July 2002 (as amended on 30 June, 11 November 2003, 22 August, 2 November 2004);

• Resolution of the Cabinet of Ministers of the USSR No. 212 «On Approval of the Rules of Stay of Foreign Citizens in the USSR « dated 26 April 1991 (as amended on 4 November 1991);

• Resolution of the Government of the Russian Federation No. 459 «On Introduction of New Procedure for Execution of Invitations to Foreign Citizens in the Territory of the Russian Federation» dated 15 May 1995;

• Resolution of the Government of the Russian Federation No. 1142 «On Implementation of Certain Norms of the Federal Law “On Procedure of Departure from the Russian Federation and Entry into the Russian Federation» dated 1 October 1998 (as amended 23 September 1999, 3 Octo-ber 2002, 24 March, 24 April 2003);

• Order of the Ministry of Foreign Affairs of the Russian Fed-

eration No. 1833 «On Approval of Rules for Execution of Invitations for Entry into the Russian Federation of Foreign Citizens and Stateless Persons» dated 12 February 2004.

CONTACT PHONES:

Consular Service Department of MID RFPhone: +7 (495) 244-40-96, 244-45-81

Representative Office of MID RF in KazanSpasskaya Tower, Kremlin, KazanPhone: +7 (843) 291-77-38

Board of the Federal Migration Service of Russia in the Republic of Tatarstan

8, Chekhov St., Kazan,Phone: +7 (843) 291-20-93

7.20. EMERGENCY TELEPHONE CALLSFire............................................................................................. 01Police ........................................................................................ 02Ambulance ............................................................................. 03Gas Service ............................................................................. 04

7.21. HOTELSTatarstan, Hotel Complex

4, Pushkin Street, KazanPhone: +7 (843) 238-83-79, 264-68-43

Duslyk Hotel49, Pravobulachnaya Street, KazanPhone: +7 (843) 292-60-35

Bulgar-Meta Hotel21, Vishnevsky Street, KazanPhone: +7 (843) 236-21-51, 236-75-83, 236-23-01

Mirage Hotel1a, Moskovskaya Street, KazanPhone: +7 (843) 527-95-00

Safar Hotel1, Odnostoronnyaya Grivka, KazanPhone: +7 (843) 543-97-43

Kvart Hotel21, Prospekt Pobedy, KazanPhone: +7 (843) 224-38-39

Novinka Guest House30, Korolenko Street, KazanPhone: +7 (843) 544-09-21, 516-83-16, 520-99-21

Volga Hotel1a, Said-Galeyev Street, KazanPhone: +7 (843) 292-45-47, 292-45-57, 231-63-49


Reference InformationReference Information

7.22. THEATRES AND MUSEUMSKachalov Grand Drama Theatre

48, Bauman Street, KazanPhone: +7 (843) 292-34-83, 292-37-51

Karim Tinchurin Tatar State Theatre of Drama and Comedy3, Gorky Street, KazanPhone: +7 (843) 236-68-86, 264-35-38, 236-53-43

Kazan Tatar State Young People’s Theatre49, Gladilov Street, KazanPhone: +7 (843) 554-11-56

Kazan State Young People’s Theatre10, Ostrovsky Street, KazanPhone: +7 (843) 292-48-82

Gabdoullah Tukay Tatar State Philharmonic Society73, Pavlyukhin Street, KazanPhone: +7 (843) 277-19-12, 277-19-91, 277-19-61

Musa Jalil Opera and Ballet Theatre1, Svoboda Square, KazanPhone: +7 (843) 231-57-02

Galiaskar Kamal Tatar State Academic Theatre1, Tatarstan Street, KazanPhone: +7 (843) 293-06-38, 293-00-56, 293-03-74

Tatar State Puppet Theatre Ekiyat21, Lukovsky Street, KazanPhone: +7 (843) 238-94-71, 238-92-72

Salikh Saidashev State Grand Concert HallSvoboda Square, KazanPhone: +7 (843) 292-17-36, 238-33-80

National Museum of the Republic of Tatarstan2, Kremlyovskaya Street, KazanPhone: +7 (843) 292-71-62

Kazan State Circus2, Tash Ayak Street, KazanPhone: +7 (843) 292-14-12

Gorky Literary and Memorial Museum10, Gorky Street, KazanPhone: +7 (843) 238-47-78, 238-51-49, 238-53-73

Sharif Kamal Memorial Apartment15, Ostrovsky Street, KazanPhone: +7 (843) 292-31-88

E. A. Boratynsky Museum25 / 28, Gorky Street, KazanPhone: +7 (843) 236-13-22

Gabdoullah Tukay Museum74, G. Tukay Street, KazanPhone: +7 (843) 293-17-50, 293-17-66

Musa Jalil Memorial Apartment17-27, 28, Gorky Street, KazanPhone: +7 (843) 238-50-48

Salikh Saidashev Museum13a, Gorky Street, KazanPhone: +7 (843) 238-56-96, 238-48-16

Nazib Zhiganov Memorial ApartmentApt. 11, 14, M. Krasnaya Street, KazanPhone: +7 (843) 236-12-84

Baki Urmanche Museum20, Shchapov Street, KazanPhone: +7 (843) 236-99-62

Fine Arts Museum of the Republic of Tatarstan64, K. Marx Street, KazanPhone: +7 (843) 236-69-31

Lenin Memorial House58, The Ulyanovs Street, KazanPhone: +7 (843) 236-90-12

7.23. RELIGIOUS INSTITUTIONSMoukhtasibat of Kazan

17, K. Nasyri Street, KazanPhone: +7 (843) 250-32-91

MOSQUES

Al-Marjani17, K. Nasyri Street, KazanPhone: +7 (843) 293-00-35, 293-45-93

Nouroulla74 / 15, Moskovskaya Street, KazanPhone: +7 (843) 292-53-83, 292-59-70

Trans-Kaban26, Khadi Taktash Street, KazanPhone: +7 (843) 278-00-30

Azimov15, Fatkoullin Street, KazanPhone: +7 (843) 278-29-80

Iske-Tash34a, M. Gafouri Street, KazanPhone: +7 (843) 293-38-18

Bornay7, Akhtyamov Street, KazanPhone: +7 (843) 293-07-38

Soultan14 / 19, Toukay Street, KazanPhone: +7 (843) 292-78-81


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Investor’s Guide

Apanayev27, K. Nasyri, KazanPhone: +7 (843) 293-42-92

Nur-Islam36 / 56, 2nd Armavirskaya Street, KazanPhone: +7 (843) 571-30-11

Bolgar10, Musin Street, KazanPhone: +7 (843) 522-33-14

MUSLIM RELIGIOUS ASSOCIATIONS

Rizvan48, Mavlyutov Street, KazanPhone: +7 (843) 234-38-47

Koul SharifKremlin, Podyezd 1, KazanPhone: +7 (843) 292-76-38

Din Islam17a, Chishmyale Street, KazanPhone: +7 (843) 262-30-88

ORTHODOX RELIGIOUS ASSOCIATIONS

Kazan Eparchy31a, Chelyuskin Street, KazanPhone: +7 (843) 571-08-60

Orthodox Religious Association of the St. Peter’s and Paul’s Cathedral

21, Musa Jalil Street, KazanPhone: +7 (843) 292-13-58

Orthodox Religious Association of the Saint Great Martyr Varvara

67, K. Marx Street, KazanPhone: +7 (843) 236-46-63

Orthodox Religious Association of the St. Nicholas’ Cathedral

5, Bauman Street, KazanPhone: +7 (843) 292-57-51

JUDAIC RELIGIOUS ASSOCIATIONS

Judaic Religious Community15, Profsoyuznaya Street, KazanPhone: +7 (843) 292-06-89

CATHOLIC RELIGIOUS ASSOCIATIONS

Roman Catholic Association of the Exaltation of the Holy Cross

25a, Yershov Street, KazanPhone: +7 (843) 236-04-87

PROTESTANT RELIGIOUS ASSOCIATIONS

Lutheran Church of St. Katharine26, K. Marx Street, KazanPhone: +7 (843) 238-59-94, 238-96-26

7.24. RESTAURANTSMaison Grise

35 / 98, Esperanto Street, KazanPhone: +7 (843) 277-37-49, 277-17-79

Opera1a, Moskovskaya Street, KazanPhone: +7 (843) 278-05-05

Tatar Culinary House31 / 12, Bauman Street, KazanPhone: +7 (843) 292-70-70, 292-35-20

KRK Pyramid3, Moskovskaya Street, KazanPhone: +7 (843) 570-07-00

Venezia24, Hadi Taktash Street, KazanPhone: +7 (843) 277-97-36

Lancelot7, Iskra Street, KazanPhone: +7 (843) 272-12-64

Timerkhan58a, Korolenko Street, KazanPhone: +7 (843) 243-70-54

Arena17, Pushkin Street, KazanPhone: +7 (843) 238-77-76

Tango68, Br. Kasymovykh Street, KazanPhone: +7 (843) 229-22-67

Bulgar21, Vishnevsky Street, KazanPhone: +7 (843) 236-23-01

Pivnoy Dvor93, Prospekt Yamasheva, KazanPhone: +7 (843) 517-18-27

Mziuri92a, Prospekt YamashevaPhone: +7 (843) 515-30-48

Afrodita3 / 2, Tatarstan Street, KazanPhone: +7 (843) 292-41-30, 292-37-59


Meat Kick10 / 48, Univesrsitetskaya Street, KazanPhone: +7 (843) 292-93-32

Tandu12c, Esperanto Street, KazanPhone: +7 (843) 264-36-51

Tatarstan2, Peterburgskaya Street, KazanPhone: +7 (843) 231-67-65

Zolotaya Podkova112, Pavlyukhin Street, Kazan HippodromePhone: +7 (843) 260-23-13

Medved9, Universitetskaya Street, KazanPhone: +7 (843) 292-69-16

Safar-Hotel1, Odnostoronnya Grivka Street, KazanPhone: +7 (843) 527-95-00

Sakhara47a, Pravobulachnaya Street, KazanPhone: +7 (843) 292-43-16, 292-43-81

7.25. LEISURE AND ENTERTAINMENTKRK Pyramid

3, Moskovskaya Street, KazanPhone: +7 (843) 5-700-700

Youth Centre Ak Bars1, Dekabristov Street, KazanPhone: +7 (843) 292-11-36

Mirage1a, Moskovskaya Street, KazanPhone: +7 (843) 278-05-05

Korston-Kazan1, Yershov Street, KazanPhone: +7 (843) 279-30-00

7.26. INQUIRIES-INFORMATIONRiver port ........................................................................231-07-40Railway station .............................................................231-23-00Kazan International Airport .....................................267-88-07Bus Terminal ..................................................................293-04-00Taxi .................................................................................................057 .........................................................................................................082 .........................................................................................................086 ............................................................................................542-42-43 ............................................................................................277-57-75 ............................................................................................264-88-88 ............................................................................................264-44-00 ............................................................................................517-01-70 ............................................................................................515-30-30Lufthansa (booking office) .......................................625-90-51 ................................................................................... Fax: 272-91-00Pharmacy Information ...........................................................003Long Distance Calls Directory Inquiries ..........................078 ..................................................................................................... 8 188Ordering trunk calls .................................................................811City Telephone Network Referral Service........................... 09



CONTENTS1. Overview of the Republic of Tatarstan .........................5

1.1. Geography................................................................................5

1.2. Climate.......................................................................................6

1.3. Population ................................................................................6

1.4. Religion .....................................................................................6

1.5. Official languages ..................................................................6

1.6. History .......................................................................................7

1.7. Capital ........................................................................................7

1.8. Large cities ...............................................................................8

1.9. Culture .......................................................................................9

1.10. Education and science.................................................... 10

1.11. Leadership of the Republic of Tatarstan ...................11

2. Investment climate in the Republic of Tatarstan ......13

2.1. Attraction of investment .................................................. 13

2.2. Commercial organisations with foreign investments ........................................................ 16

2.3. Special economic zone of industrial production type in the Yelabuga district of the Republic of Tatarstan .................................................... 16

2.4. Alabuga industrial site ...................................................... 19

2.5. Innovation activities in the Republic of Tatarstan .................................................... 19

2.6. Investment legislation of the Republic of Tatarstan .....................................................21

2.7. Rights of investors and their protection .....................21

2.8. Privileges granted to foreign investors and commercial organisations with foreign investments in the Republic of Tatarstan .................................................... 22

2.9. Foreign companies working in the region ................ 25

3. Economy of The Republic of Tatarstan ...................... 26

3.1. Economic overview ........................................................... 26

3.2. Natural resources ................................................................ 27

3.3. Basic indicators of manufacturing industry .............. 28

3.4. Fuel and energy sector ..................................................... 28

3.5. Oil-gas-chemical sector ................................................... 29

3.6. Mechanical engineering and metalworking .............31

3.7. Light, food-processing, and woodworking industries ................................................. 33

3.8. Introduction of quality management systems ........ 34

3.9. Business support ................................................................ 35

3.10. Agriculture .......................................................................... 35

3.11. Construction and real estate ....................................... 35

3.12. Transport ............................................................................. 37

3.13. Information and communications ............................. 37

3.14. Tourism ................................................................................ 38

3.15. Republic’s budgetary policy ........................................ 38

3.16. Finance and banking system ....................................... 39

3.17. Rates ..................................................................................... 39

3.18. Employment ...................................................................... 40

4. Consumer Market Of The Republic of Tatarstan .......41

4.1. Consumer market indicators ...........................................41

4.2. Prospects of consumer market development .......... 43

5. Technoparks ................................................................ 44

Innovation production technopark IDEA ................... 44

Kama industrial park Master ........................................... 45

IDEA south-east ................................................................... 45

Hi-tech IT park ...................................................................... 46

Petrochemical park Khimgrad ........................................ 46

6. Foreign Economic And Interregional Activities Of The Republic of Tatarstan ............................ 47

6.1. Basic indicators of foreign economic activities of the Republic of Tatarstan ................................. 47

6.2. Foreign trade partners of the Republic of Tatarstan .................................................... 50


6.3. Interregional and international cooperation ........... 50

6.4. Intergovernmental agreements .................................... 52

6.5. Activities of representative offices and trading houses of the Republic of Tatarstan ............ 52

6.6. Chamber of commerce and industry of the Republic of Tatarstan .................................................... 53

7. Reference information ............................................... 54

7.1. Bodies of state power of the Republic of Tatarstan .................................................... 54

7.2. State council of the Republic of Tatarstan ................. 55

7.3. Committees of the state council of the Republic of Tatarstan .................................................... 55

7.4. Cabinet of ministers of the Republic of Tatarstan ... 55

7.5. Ministries of the Republic of Tatarstan........................ 56

7.6. Bodies of federal power in the territory of the Republic of Tatarstan .................................................... 58

7.7. Organisations that support foreign economic activity ....................................................... 59

7.8. Representative offices of the Republic of Tatarstan in the regions of the Russian Federation, CIS and foreign countries ................ 59

7.9. Representative offices and consular institutions of foreign countries and regions of the Russian Federation in the Republic of Tatarstan ..............61

7.10. Municipalities of Kazan and Naberezhnye Chelny .........................................................61

7.11. Exhibition enterprises and organisations................ 62

7.12. Customs ............................................................................... 62

7.13. Banks..................................................................................... 62

7.14. Investment companies................................................... 65

7.15. Insurance companies ...................................................... 65

7.16. Mass media ......................................................................... 65

7.17. Travel agencies .................................................................. 66

7.18. Information for visitors to the republic’s capital ............................................................. 66

7.19. How to obtain entry visa ............................................... 66

7.20. Emergency telephone calls .......................................... 67

7.21. Hotels ................................................................................... 67

7.22. Theatres and museums .................................................. 68

7.23. Religious institutions ...................................................... 68

7.24. Restaurants ......................................................................... 69

7.25. Leisure and entertainment ........................................... 70

7.26. Inquiries-information...................................................... 70

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