REGIONAL CORNER: YAROSLAVL OBLAST, RUSSIA

 

by Olga Ananina

 

Yaroslavl oblast is situated 175 miles northeast of Moscow at the crossroads of important Russian auto and railroads, river ways, and air routes. Nearly 1.5 million people inhabit the region, which is the size of Massachusetts, Connecticut, and Rhode Island combined. The oblast is abundant in forests and lakes. The oblast has a major water reservoir, is a source of fertilizer, quartz, sand, gravel, peat, mineral waters, limestone, and clay, and is an industrial center.

 

Although Yaroslavl=s telecommunications need significant improvementConly 16 out of every 100 homes have a telephoneCthe transportation system is adequate. The region=s transportation infrastructure and convenient location facilitate connections and business with the rest of Russia and beyond. Vehicle transportation is the most popular mode of freight traffic, but rail and river routes are also used.

 

Industrial Activity

In 1997, Yaroslavl Oblast achieved 7 percent industrial growth and its industrial output per capita was the largest among the Central Russian regions. Located on nonfertile lands, the oblast is famous for its heavy machinery (diesel engines and electrical equipment), refined petroleum products, textiles (one of the oldest and largest textile mills in Russia is located in Yaroslavl), aviation equipment, and synthetic rubber and tires. 

 

The region=s machine-building sector plays an important role in Russia=s economy. Leading subsectors of the local machine-building industry include chemical and petrochemical machinery (polymeric machines, refrigerating equipment, and gas-purifying equipment), machine tools (wood-processing and metal-cutting equipment), instruments (for defense, aviation, and shipbuilding, and radio equipment), diesel engines, and road machinery. 

 

The chemical and petrochemical industry and the fuel sector (oil and gas refineries) are also of major importance for the regional economy.

 

Investment Activity

The Yaroslavl administration has taken steps to promote the oblast as an investment friendly region. The regional law AOn State Support of Investments on the Territory of the Yaroslavl Oblast@ provides various tax breaks to companies operating in the region. The regional Duma is currently working on the creation of an investment guarantee fund. A local organization, the International Investment Center (IIC), led by a former Russian Federal Duma deputy and U.N. consultants, is very active in supporting local businesses.

 

The United States and Sweden are reportedly the leading investors in the Yaroslavl Oblast, but Denmark, Italy, and Germany also have a presence in the region. General Electric (USA) and Aero Support Corporation (Canada) have set up joint production of airplane engines together with Rybinsk Motors company. Baltic Beverages Holding (Sweden) is participating in the reconstruction of a brewery. French company Eurobach is jointly producing environmentally safe varnishes and paints with local company Lakokraska. A Belgian company is involved in milk processing.

 

Olga Ananina is a BISNIS representative in Moscow.

 

For more information on Yaroslavl Oblast, including contacts, visit BISNIS Online at www.bisnis.doc.gov/bisnis/country/regions.html#Central. Additionally, BISNIS distributes news updates on Central Russia to interested U.S. companies. To receive this information, send an email with name, company, and address to bisnis@ita.doc.gov.