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Bashkortostan

Bashkortostan is one of the largest republics within the Russian Federation, covering 143,600 square km to the mouth of the Ural mountains. It became a sovereign republic in October 1990 and is now a fast developing industrial and agricultural country with great potential for foreign investors. As more investment in Russia goes outside the golden triangle of Moscow and St.Petersburg, Bashkortostan offers foreign businesses an excellent base from which to penetrate the larger Federation market as well as export goods. Bashkortostan borders Tatarstan, the Udmurt Republic and the provinces of Perm, Yekaterinburg, Chelyabinsk and Orenburg.

Ufa, the capital city, was founded in 1574 and became the capital in 1922 when Bashkortostan incorporated into Russia. Ufa is a large industrial and cultural centre with a population of over 1 million. About 40% of the Republic’s production capacity is concentrated here. The Republic has 20 major cities and a total population of over 4 million. As part of the Russian Federation, Bashkortostan suffered during the economic recession that effected all of Russia, but its relative independence did protect it to some degree. The Federation treaty cedes to Bashkortostan all state property on its territory and grants it control over processing, extraction and sale of natural resources, especially oil and oil products. Bashkortostan is also shaping its own legislative system, although Russian law remains binding in cases under federal jurisdiction.

Over 70 nationalities are represented in the Republic. There have been no signs of ethnic conflict and little reason to expect it in future.

Foreign trade has grown significantly with over 200 Bashkortostan companies trading internationally. Experts estimate that the Republic’s export potential is well over 2 billion dollars. The Republic’s main trading partners are Finland, Germany, Austria, Turkey, the USA, Japan, India, China, etc. The main foreign investment projects include the extraction of minerals, oil production and oil refining, the assembly of computers and communication devices, petrochemicals, textiles, engineering and the food industry.

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