26 November 2014, Wednesday, 13:45

Increase in investment activity is expected in Bashkortostan due to the SCO and BRICS Summits


UFA, 26 November 2014. /Bashinform News Agency, Rozaliya Valeeva/. “Holding the summits is an element of investment attractiveness of the region,” the deputy head of the investment policy department of the Ministry of Industry and Innovation Policy RB Niyaz Fazylov considers.

Prospects awaiting Bashkir business due to the SCO summits and BRICS were discussed at a roundtable organized by the publishing house "Kommersant" in Bashkortostan.

According to Niyaz Fazylov, in January-September exports of goods in the republic amounted to 9.9 billion dollars and increased compared to the previous year by 18.5 percent. Bashkortostan actively exports to the Netherlands, Italy, China and India. The largest importer is Japan (engineering and chemical products are imported), followed by China. Export volumes grow. Over the past three years, the growth rate of investment ranged from 7.2 percent to eight percent. In the first nine months of 2014 growth rate amounted to six percent.

“The trade turnover with the SCO countries is steadily increasing”, the Minister of Bashkortostan Republic Ruslan Mirsayapov said. “There are certain negative trends, but as a whole the situation is stable”.

According to him, in the year of Russia's presidency at the Summit the issues of the transit potential development of the SCO countries will be among priorities.

Also it was marked at the round table that domestic and foreign investors were given equal rights, and the origin of capital was irrelevant. Promised preferences to foreign investors are valid only if the company is registered in the republic. Roundtable participants also learned about business opportunities due to Bashkortostan joining the Business Council of the SCO and BRICS.

“Business Councils meetings will be held two days prior to the political Summits. The heads of the chambers of commerce and business associations of the SCO and BRICS will arrive. In addition, in July three events in the banking sector will be held: the Interbank Council of SCO, Financial Council of BRICS and Financial Forum of BRICS where more than 100 participants are expected. It was proposed to develop a format for inter-regional cooperation, with participation of governors, businessmen. Currently contacts are established with the regions of India, China and Kazakhstan. If we manage to gain a foothold, we will try to make it a permanent platform. During 2015 we will try to work to the maximum at the preparatory events to the SCO and BRICS Summits. These are two major events — an International Forum "Big Chemistry" on May 21-22, 2015 and the exhibition "Gas.Oil.Technology", which will be held from May 19 to 24. The organizing committee has been already created. Also, representatives of Bashkortostan will take part in the St. Petersburg Economic Forum on June 18-19 2015, where an exposition of Bashkir projects planned for implementation in the republic will be presented”, the vice-president of the Chamber of Commerce RB and the Deputy Chairman of the National Part of the Business Council of the SCO and BRICS Azat Fazlyev said.

Director of the Office Group of the SCO and BRICS Nikolay Fadeev informed about infrastructure projects implemented by the Summits. In particular, it is construction of a new terminal and runway, increase in passenger traffic in Ufa airport from 200 people per hour to 800. Also several pedestrian crossings on the route Ufa — Airport are under construction, Chesnokovka interchange is commissioned. Hotels are also not overlooked.

“In Ufa, hotels are closed for renovation. With opening of new hotels the hospitality bed availability will increase by 30 percent”, Nikolay Fadeev said. In addition, cellular coverage will be maximized in Ufa by the Summits. Soon after the renovation the Bashkir State Opera and Ballet Theatre will be opened.

As to cultural and excursion program at present work is conducted with local guild guides. Summits will be held in Ufa on July 9-10, 2015. It is expected arrival of about 3.5 thousand guests.