Radiy Khabirov: In terms of direct investment we are at lowest level in 10 years

UFA, 27 December 2018. /Bashinform News Agency, Azat Gizatullin/ translated by Tatiana Aksyutina/.

The foreign trade turnover of Bashkortostan in January-October 2018 amounted to 4.5 billion dollars. In the first half of the year, the economy of the region received $ 39.3 million of foreign direct investment. These figures were announced at an “Investment Hour” session by Ruslan Mirsayapov, the Chairman of the State Committee for Foreign Economic Relations. According to him, Latvia, Belarus, China, Germany, Kazakhstan, India, the Netherlands, Turkey, Finland and Poland were among the top ten countries-partners of Bashkortostan. Economic relations with them provided three-quarters of the republican trade turnover. For example, this year trade with Latvia amounted to more than one billion dollars, the Baltic country mainly bought oil products produced in Bashkortostan.

In the near future, eight new agreements on international cooperation are being prepared in addition to the twenty-one already in force. In addition, in 2019-2020, it is planned to open republican representative offices at the trade missions of Russia in a number of foreign countries, in particular in Austria and Turkey.

Oleg Golov, General Director of Bashkortostan Development Corporation, JSC, explained that foreign companies are interested in implementing joint projects in the field of road infrastructure and social facilities, agricultural production, and engineering based on public-private partnership.

Radiy Khabirov was not completely satisfied with the figures announced on foreign trade turnover rates and foreign direct investment in the economy of Bashkortostan.

“If we talk about foreign economic activity, there are two indicators that determine its state - a volume of trade and direct investments,” said Radiy Khabirov. “We are at the lowest level in the last ten years. In fact, this is a very disturbing situation. This is an unsatisfactory assessment of our work”.

In 2008, for example, the republican foreign trade turnover amounted to more than $ 9 billion, and this year it has not reached even 5 billion so far. If 10 years ago, the republic managed to attract $ 178 million in direct investments in the economy, then in the first six months of 2018 a little more than $ 38 million.

The head of Bashkortostan instructed the economic department to conduct a detailed analysis of the work of the leading regions of Russia and their indicators, including the rates and structure of trade, their major foreign partners. According to the results of the comparative analysis, a list of measures for the intensification of foreign economic activity should be prepared.