Murtaza Rakhimov: “The crisis confirmed the vitality of economics RB”

The article of President RB Murtaza Rakhimov “Investment foundations”, dedicated to the aspects of economic development and realization of investment projects, is published in the federal publication of “The Russian Newspaper” from November 24, 2009. The abstracts from this article are given shortly below.

In accordance with the results of the rate of investment attractiveness of Russian regions, made by the agency “Expert PA”, Bashkortostan stands in the Top3 of Russian regions by the minimal economic risk and legislative provision of investments.

At present time Bashkortostan possesses the long-term credit rates, given by the rate agencies “Standard & Poor’s” and “Moody’s” at the level of “BaL” with the forecast “stable” and “BB+” and with the forecast “stable”, thus yielding just to Moscow, Saint-Petersburg and Khanty-Mansiysky autonomous district.

Stable social-economic development and investment attractiveness of the region are based on the accumulated potential and certain competitive advantages. Republic of Bashkortostan is different with the high level of political and social-economic stability and here the wide-scaled normative base, regulating the investment processes, was formed. We turned out to be ready for the crisis, thanks to our cautious financial policy and low level of the debts accumulated. The financial system of Bashkortostan confirmed its vitality.

Bashkortostan actively develops international relations and we are interesting for the partners with our natural resources, well-developed infrastructure, powerful multi-branch economic potential, modern technologies and wide education system. Growing quality of the level of life and dynamic development of scientific-research activity provided a good margin for development of science-intensive innovational productions.

Our step-by-step financial and industrial policy contributed to positive dynamics of inflow of external investments to economics of the region during the last decade. These investments are filled up with high rates of growth of capital investments due to the internal resources. In 1999-2008 the volume of investments to the fixed capital RB increased 2,8 times.

This policy allowed keeping the substantial volume of investments to the fixed capital this year too. Due to all sources of financing this volume in January-September 2009 is estimated at more than 90 billion rubles or 80% of the level for the same period of time in 2008.

The existing tendencies in Republican economics allow us to say with assurance that more than 80 large investment projects for the sum of more than 600 billion rubles will become a reality by 2020.

We activated our programs on modernization of productions in such branches of industry as chemistry, oil-chemistry, machine-building, metallurgy, glass industry, agriculture and some others already now.

The systematic approach with the usage of the principles of private-state partnership to large investment projects prevails here and these projects have to become new points of growth in sphere of industrial production. Thus, we successfully develop the projects with participation of French, Austrian, Dutch and Italian capitals, aimed at opening of competitive productions and the rise of the region’s investment potential. The French concern “Saint-Gobain” erects the plant for production of gypsum plasterboards in Ufimsky region RB, the Austrian company “LASSELBERGER” has put the plant for production of ceramic tile into operation in February 2009, JSC “NEFAZ” started production of passenger buses jointly with the Dutch company “AVL” and production of grain harvesters jointly with the Italian company “LAVERDA” in the staff of the international corporation “AGGO”. The construction of the turkey poultry farm is also considered one of the most wide-scaled projects.

The authorities of Bashkortostan are certain the investments, attracted today, should contribute to innovational development of economics and to the rise of the share of products with high added value and to appearance of new enterprises in the branches, which haven’t yet exhausted their development potential in our region.