By Alexander Gordienko
The Saratov oblast is located in the Russia’s Lower Volga Valley, about 450 miles southeast of Moscow. The region has a population of 2.7 million, while its capital city, also called Saratov, has approximately 900,000 residents. In the Soviet era, Saratov was closed to foreigners because many enterprises of the military-industrial complex were located in the region. It was opened in 1993. Other large cities in the region include Balakovo (207,000 inhabitants) and Engels (185,000 inhabitants).
The Saratov oblast is crossed by the Volga river. Saratov is one of the largest river ports on the Volga. Waterways provide access from Saratov to Moscow, the western Urals, the Black Sea, the Baltic Coast, and the White Sea.
The oblast also features abundant energy resources. The Balakovo Nuclear Power Plant and Saratov Hydroelectric Plant alone produce one-quarter of the power in the Volga Valley and 3 percent of energy in Russia. Oil and gas are the most significant natural assets of the region. Average oil output is 1 million MT annually, the bulk of which is processed in Saratov. The oil/gas and energy generation sectors account for 37.3 percent of regional industrial output.
Major Companies of Saratov
The Saratov Aircraft Plant manufactures various modifications of YAK-42 aircraft for commercial and training purposes. The Saratov Trolleybus Plant is a major supplier of trolleybuses in Russia. It also exports them to Europe, Asia, and Latin America. The Saratov Bearing Plant specializes in producing a broad line of roller bearings. Litiy-Element is the only Russian supplier of lithium batteries. Rubber products made by Balakovorezinotekhnika are widely used by such Russian automakers as VAZ and KAMAZ. The region is also the largest Russian producer of chemical filaments and fibers, and local companies produce acrylic acid, methyl acrylate, phenol, sulphuric acid, and fertilizers.
Foreign Trade and Investment
Saratov oblast’s principal foreign trade partners are the United States, Great Britain, Italy, Holland, Turkey, and Germany. The region’s main exports consist of electronic devices, electrical equipment, vehicles, crude oil and oil products, mineral fertilizers, and chemicals/petrochemicals. Imports include machinery, medical equipment, nonorganic chemicals, metals, plastic wares, paper, and food.
During the past three years, the Saratov oblast Duma, in conjunction with the Regional Government, adopted a number of laws to stimulate and guarantee private investments in the Saratov region. Under these laws, investors are entitled to exemptions from local taxes on profits, property, and vehicles for 3 years. Furthermore, they allow land for investment projects to be leased (for up to 49 years) or purchased by individuals or commercial entities (including foreign ones).
In 1998, over 80 companies with foreign capital were operating in the Saratov oblast. The majority of them have German partners, including a joint venture with Bosch that manufactures automotive spark plugs and a joint venture with Henkel that produces detergents. Large-scale investment projects currently under way include the modernization of the oil-processing company Kreking, involving U.S. and Spanish companies; a joint venture between the U.S. Grace corporation and the Kalininsk Rubber Products Plant, and the construction of a furniture factory in Balakovo with the French company Seribo. In addition, the Saratov Aircraft Plant is negotiating with U.S. company Case regarding the possibility of assembling harvesters in its facility.
Alexander Gordienko is a BISNIS representative in Nizhny Novgorod, Russia.
For more information on the Volga region, visit BISNIS Online at www.bisnis.doc.gov/bisnis/country/regions.html#VolgaUrals.