The following is part of a series of posts about key investment and business regions in Russia.
1. General Information: The Republic of Tatarstan is a democratic constitutional state of the Russian Federation located in the Volga district. While Tatarstan has traditionally been known for its wealth in natural resources, the region is also highly developed in automotive and other industrial sectors and is quickly becoming a haven for high tech development The region has a population of more than 3.7 million people and its key cities include Kazan (capital), Alabuga (Special Economic Zone) and Naberezhnye Chelny.
2. Government support for innovation: Tatarstan’s government developed a comprehensive proposal through 2015 aimed at making the region a center for innovation and investment. Part of the proposal focused on the development of a wide range of technoparks that have sprung up during the past decade. Now, with 14 technoparks, Tatarstan is a driving force in the scientific sector throughout Russia.
3. Innovative Technopark Idea, which opened in Kazan in February 2004, is a business incubation technopark dedicated to cultivating small and start-up businesses in Tatarstan. The business incubator offers a range of detailed support for these nascent businesses, including offices and production areas, consulting support, project monitoring and investment services.
4. The Technopolis Chimgrad was set up in 2006 with the express purpose of providing full support to small-and medium-sized companies in the chemical and polymer conversion industries. In 2010, Technopolis Chimgrad housed 70 companies and employed more than 2,500 people. At the end of 2009, Chimgrad companies reported a collective profit of 3 billion rubles ($95.8 million).
5. IT Park, based in Kazan and set up in collaboration with Cisco, has been a driving technology powerhouse in the region and throughout the country. The IT Park functions as a business incubator and aims to consolidate the region’s profound IT talent and potential. Firms based in the IT Park are primary developers of GLONASS and infomats, electronic machines that allow citizens to easily access a variety of government services (e.g. applying for a passport, paying a parking ticket).
6. Investment opportunities: Tatarstan has transformed into one of Russia’s foremost centers for foreign investment. In 2008, more than $2.5 billion in foreign capital was invested in Tatarstan’s economy. Some of the things fueling this transformation include:
• The Investment and Venture Fund of the Republic of Tatarstan (IVF RT): The IVF RT was established by a Cabinet of Ministers Resolution in November 2004 with the express purpose of situating the region as a center for investment, innovation and production within the Russian Federation. The fund also promotes the overall image of Tatarstan in foreign markets. IVF RT identifies its main priorities as:
- To manufacture top-of-the-line products with the most export potential
- To find financing for local companies
- To focus on industries with the highest potential for investment and economic growth, including petrochemical, chemical, building materials, light, furniture manufacturing and food
• The Alabuga Special Economic Zone (SEZ): Created in December 2005, Alabuga is Russia’s largest SEZ focused on industrial production. Companies who invest in Alabuga SEZ get various tax privileges, including:
- 20 percent profit tax
- 2.2 percent property tax; SEZ residents living in the region for 10 years pay no property tax
- No land or transport taxes
• The Automotive Industry: Tatarstan is one of the centers of Russia’s automotive industry. The recent Ford-Sollers joint venture includes plans for a plant in Tatarstan. Isuzu has invested in Alabuga and Kamaz, while Russia’s largest truck manufacturer, is located in Naberezhnye Chelny.
7. Foreign companies in Tatarstan:
• Automotive Sector: Ford, Isuzu
• IT Sector: Intel, IBM, Cisco
• Other: IKEA, Johnson & Johnson, Marriott, PricewaterhouseCoopers, Ernst & Young Raytech, Sisecam, Air Liquide, Foster Wheeler
8. Educational Infrastructure: Due to its highly developed network of educational institutions, Tatarstan has on average a more educated labor pool than many other regions in Russia. It is home to more than 50 higher education institutions and 73 scientific research institutes and design centers. Kazan was also chosen as the site for the 2013 Universiade, an international university athletic event similar to the Olympics. Around 60 percent of university athletes who compete in the Universiade go on to compete in the Olympic Games.
9. Interesting Government Programs: According to Information and Communications Minister Nikolai Nikiforov, Tatarstan launched its “Electronic Education” program in 2011. The program will purchase more than 20,000 laptops for teachers, 6,000 computers for schools, and set up 6,700 Wi-Fi hotspots in schools throughout the region. Tatarstan’s continued focus on education and students’ technological literacy is a marker of the region’s overall modernization drive in recent years.
10. Culture: Tatarstan has a thriving Muslim population. The Qolsharif Mosque in Kazan is a UNESCO World Heritage Site, and the region’s geography is home to scenic mountains and rivers, as well as a host of archaeological sites and architectural attractions, making the region an attractive tourist destination.
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