Economic DevelopmentOverview The Udmurt Republic is one of the most dynamically developing regions in the Russian Federation. Its economy is highly diversified, Udmurtia possesses a huge industrial potential and highly qualified workforce, well-developed agro- and construction industries, abundant natural resources, and dynamically developing financial, science and technologic systems. Gross Regional Product The main portion of the gross regional product, 87 per cent, is formed in manufacturing industries, agriculture, construction, transportation and telecommunications, and trade.
Gross regional product (estimate) of the Udmurt Republic in 2007 amounted to 184,560 million rubles. Foreign Economic Relations Foreign Trade In 2007 foreign trade turnover of the Udmurt Republic amounted to USD 1.052 billion.
Udmurtia maintains trade and economic relations with 93 countries, in 2007 trade with CIS countries accounted for 15.6 per cent of Udmurtia’s foreign trade turnover.
Udmurtia’s Principal Export Partners in 2007
Udmurtia’s Principal Import Partners in 2007 Udmurtia’s primary exports include defense products, machinery, metallurgy and petrochemical industry products. Primary export products are radios, railroad locomotive complex safety systems, ground transportation machines and their parts, plain and alloy steel bars, calcium metal and casein. Udmurt Republic Export Structure in 2007 Imports into the Udmurt Republic include mostly machinery, ferrous metals and products, petrochemicals. Interregional Relations The Udmurt Republic is actively promoting establishment and development of trade and economic, science and technology, and cultural relations with both foreign countries and Russian regions. It maintains trade and economic relations with 75 federal subjects of the Russian Federation. The largest amounts of Udmurt products are shipped to Moscow, Saint-Petersburg, Samara, Sverdlovsk and Chelyabinsk Oblasts, and the Perm Krai. The principal products are passenger cars and trucks, rolled ferrous metals, household furniture, meat and poultry. The Udmurt Republic buys a wide range of products that are not produced locally, or produced in non-sufficient amounts, such as gasoline, diesel fuel, steel pipes, and products of metallurgical plants. Small Business Development Small business is one of the most important sectors of Udmurtia’s economy. Today small business significantly influences economic growth rates, the structure and quality of the gross regional product and the solution of social problems in the Udmurt Republic. Every year the Government of the Udmurt Republic increases the amount of finance allocated for financing activities aimed at small business support and development. In 2007 it provided over 750 million rubles in financial support and granted guarantees and warranties to small business enterprises for the amount of over 220 million rubles. Within a program designed to help small enterprises principal elements of the required infrastructure have been established in the Udmurt Republic. They make a network consisting of 24 specialized organizations: the Udmurt State Foundation for Small Business Support, municipal foundations, the Republican Business Incubator, the Udmurtia Techno Park, the Udmurt Leasing Company, the Republican Center for Assistance to Foreign Economic Activities, the Udmurtia-Moscow Interregional Marketing Center, and the Republican Center for Assistance to Entrepreneurship and Insurance Market Development, and other organizations. Small business is promoted at the municipal level as well. In 2007 programs (plans) aimed at supporting small business were adopted in 24 municipalities. A network of entrepreneurs’ public associations is being developed. The Republican Business Incubator was established in the city of Izhevsk. In 2007 reconstruction of a building for the Glazov business incubator was completed. The incubator will create conditions for the development of producing and food processing enterprises in the northern part of the Udmurt Republic. For the last three years the Udmurt Republic has participated in federal competitions organized by the Ministry for Economic Development of the Russian Federation in support of small business. As a result, the republic obtained significant financing (80 million rubles). After the adoption of the Federal Law “On Small and Medium Entrepreneurship” the development of the Republican target program of state support and development of small and medium entrepreneurship in the Udmurt Republic in 2009-2013 began. Fixed Capital Investments Developed potential of industry, infrastructure, labor force and natural resources, and the regional legislative base ensure a favorable and attractive investment climate in the Udmurt Republic. Investment into fixed capital in 2007 amounted to 44.5 billion rubles. The bulk of the investment is made in transportation and telecommunications, processing enterprises, development of natural resources, agriculture and construction. In 2007 the Moody’s Interfax Rating Agency assigned the Udmurt Republic the Aa1.ru credit rating that shows Udmurtia’s high creditworthiness as compared to other subjects of the Russian Federation. In order to provide informational support to investors and help local enterprises to find investors for the implementation of their investment projects, a State Register of investment projects in the Udmurt Republic is maintained, an interactive Internet site providing information on investments has been established, mechanisms have been established for providing budget credits and state guarantees to enterprises for the implementation of socially significant innovation and investment projects. In order to improve investment climate in the republic, the implementation of the “Creating Favorable Conditions for Bringing Investments to the Udmurt Republic in 2007-2009” program began in 2007. Foreign Investment As of January 1, 2008, the total amount of accumulated foreign investment in the Udmurt Republic amounted to 210.4 million US dollars, including 58.7 million dollars in direct investment. Foreign investment has been used mostly for the development and modernization of oil producing enterprises, telecommunications, construction and trade. Innovation Development Udmurtia has a significant science and technology potential for the development of the nanoindustry. Udmurtia is implementing the target program “Development of Innovation Activities in the Udmurt Republic in 2005-2009”; the innovation infrastructure is being formed within the framework of this program. Its principal element, the Center for Innovation and Technologies of the Udmurt Republic, has been established. It provides informational, patent and legal, consulting and organizing support to the activities of innovatively active enterprises. Business incubators were launched in Izhevsk and Glazov with the support from the Government of the Udmurt Republic; they offer good conditions for the implementation of innovation business plans, from an original idea through its implementation. In most major higher educational institutions and research institutes technology transfer centers have been established to organize efficient use of science-and-technology knowledge. In 2007 the Regional Center for Nanoindustry was established, co-founded with the Nanoindustry concern (Moscow). The purpose of the center is to combine the efforts of scientists and experts at industrial enterprises for the development of nanotechnologies in the Udmurt Republic. Also, financial support to innovation project is provided from the funds of Udmurtia’s budget. Over three years 15 projects were granted credits on favorable conditions. For the implementation of these projects 34 million rubles has been provided from the republic’s budget. This will provide for the production of innovation products for the total sum of 1 billion rubles and create about 200 jobs. New forms of state support to innovative activities, such as providing subsidy support to research and patenting, have appeared. In 2007, with the support from the Government of the Udmurt Republic, innovative nanotechnology projects of Udmurt enterprises were presented at the IV Specialized Exhibition of Nanotechnologies and Nanomaterials “NTMEX-2007” held in Moscow. The Regional Center for Nanoindustry of the Udmurt Republic was awarded an Honorary Diploma; three innovative projects were awarded Gold Medals. |
