Rustem Khamitov has held Public Council meeting for investment climate improvement

Alexander Smirnov

UFA, 28 October 2016. /Bashinform News Agency, Alexander Smirnov/. On October 27, a meeting of the Public Council on Investment Climate Improvement under the Head of Bashkortostan was held by the Head of the Region Rustem Khamitov. Investment activity results of the republic in the first half of 2016 were summed up with identifying priorities in this direction.

“We need to keep positive trends in investment activity development. So far we go with some delay - about two percent compared with the last year. Of course, at the end of the year we should reach plus values”, Rustem Khamitov said. “We occupy the second place in the Volga Federal District in volume of investments and the 11th - in the country. We have good financial results of enterprises this year. Profits increased by nearly 40 percent in the first eight months, the loss decreased by nearly 90 percent. That means that companies have funds. But our industry professionals are cautious biding their time. Our common goal is to give confidence to investors regarding the prospects of development, in particular, of the regional economy.”

The Minister of Economic Development RB Sergey Novikov delivered a report on the investment activities of municipalities of the region in the first half of 2016.

Today, 472 investment projects are implemented in the republic with a total investment volume of 662 billion rubles. Major projects are located in major industrial centres. The first place is occupied by Ufa with a total investment volume of 191.8 billion rubles with refineries, power generating companies and mechanical engineering companies’ projects. The second place went to Salavat with a total size of investment 136.8 billion rubles. Projects in the chemical and petrochemical industry are implemented here. Major projects are available in Haybullino, Kugarchi, Ufa districts.

The Head of Bashkortostan drew attention to the highly uneven distribution of investment in the region and instructed the heads of municipalities to revise approaches to the implementation of investment activities.

The Deputy Minister of Industry and Innovation Ildar Shakhmaev told about the measures taken to improve performance in "Connecting to Power Grid" sector. According to him, over the past three and a half years timing of consumer connections to the power grid significantly decreased (from 291 days in 2013 to 41 days in 2016). However, as noted by the deputy of the State Duma of Russia Rafael Mardanshin, with a decrease in terms of connection the entrepreneurs now incur an additional burden of financial expenses on approval process before connecting to the electricity supply network.

The Chairman of the State Committee for Entrepreneurship and Tourism RB Vyacheslav Gilyazitdinov made analysis of statistical data on number of employed in small businesses. According to this index (31 per thousand inhabitants) Bashkortostan now occupies the 75th place out of 85 regions of the country. The Head of Bashkortostan ordered the head of the Committee to find reserves to remedy the situation.

Following the meeting, the Head of Bashkortostan said that in general the climate for business in the republic became softer, but largely due to administrative measures by the authorities. At the same time it is still necessary to form an opinion in society about the benefits of small business for the citizens of the republic, and the future and first-time entrepreneurs - should raise their level of education and knowledge.

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