The Chuvash Republic (Chuvashia) is one of 83 regions of Russia and a part of the Volga Federal District of the Russian Federation.
The Republic is comprised of 21 municipal districts, 9 cities, 8 towns and about 1700 villages. The population of the Chuvash Republic as of January 1, 2012 equals to 1247.0 thousand people, including city and town dwellers - 740.4 thousand people (59,4%), rural population - 506.6 thousand people (40,6%). Population density of Chuvashia is 68.4 inhabitants per square kilometer. This ratio is one of the highest in Russia.
The Chuvash Republic is a significant transportation connection point linking railway, water and main Russian motorways. National motorways are M-7 "VOLGA" (Moscow – Vladimir – Nizhny Novgorod – Cheboksary – Kazan), А-119 "VYATKA" (Cheboksary – Yoshkar-Ola - Kirov – Syktyvkar), А-151 (Tsivilsk – Ulyanovsk). Cheboksary has motorway connection with all municipal districts of the Republic.
Economy. The Chuvash Republic has stable economic growth during recent years. Growth rate of production index in the Chuvash Republic during 2010 and 2011 is higher than in the Russian Federation and in Privolzhsky Federal district.
Foreign economic activity. The Chuvash Republic maintains commercial and economic relations with more than 70 countries of the world.
Volume of export of the Chuvash Republic in 2011 made up USD 129.6 mln. Commodity structure of export deliveries are products of machine-building industry – 45.9%, chemical and rubber products (fertilizers, organic chemical compounds, rubber goods) - 26.7%, minerals - 14.3%, ferrous and non-ferrous metals, metal ware – 7%, foodstuffs - 3.6%, others – 2,5%.
The volume of imported goods in 2011 made up USD 565.1 mln. Commodity structure of import deliveries are machines, equipment and transport vehicles (mechanical devices, electrical equipment, ground vehicles, tools and optical devices) – 68.5%, chemicals, rubber goods – 19.85%, ferrous and non-ferrous metals, metal ware – 6.4%, others – 5,25%.
Mechanical and electrical engineering of the Chuvash Republic
Chuvashia is one of Russia's centers for electrical engineering research and manufacturing.
Major Goods: steel, nonferrous metal, heaters and convector heaters, heating boilers, bulldozers, loader, centrifugal pump, low- and high-voltage equipment, power transformer, cable production, fractional motors, electricity counters, control equipment, relay equipment, computer-based systems and accounting systems of electric energy, vans and tankers, trailer and semitrailers for lorries, main line freight cars, details of connection joint for airplanes and helicopters.
The biggest companies:
«Research and production complex «ELARA», «CHEBOKSARY ELECTRIC DEVICES PLANT» (ChEAZ) , «ZEIM», «Elektropribor, «Promtractor», «Textilmach», The Cheboksary foundry («Promtractor – Promlit» Ltd, a daughter company of the «Promtractor» JSC)
Major Goods: inorganicic products, organicic products for industry, organicic dyes, plant protection chemicals, polishing and painting materials, house hold chemicals, organicosilicon products, poliol mixtures of «poliur» type and their components, chemical reagents for oil production, intermediate products for pharmaceutical industry and medicine, heat insulating materials, technical rubber and pyrotechnic products, etc.
The chemical manufacturing industry, which makes up approximately 22% of the republic’s industrial output, is dominated by Khimprom (JSC), located in Novocheboksarsk.
With the purpose of regulating investment activity in the Chuvash Republic the following acts of legislation have been adopted and are constantly worked at:
- Law of the Chuvash Republic “On State Support of Investment Activity in the Chuvash Republic”;
- Government Regulations “On the Non-financial State Support of the Investment Activities in the Chuvash Republic”, etc.
State support of investment activity in the Chuvash Republic according to the current legislation is performed in the following ways:
- exemption from tax and duties paid to the budget of the Chuvash Republic;
- extension of investment tax credits in the part of taxes paid to the budget of the Chuvash Republic;
- allocation of the budgetary funds of the Chuvash Republic for financing of investment projects;
- direct participation of the state in investment activity by developing, approving and financing with the budgetary funds of the Chuvash Republic of investment projects.
The Chuvash Republic developed more than 300 investment project for realization in the Chuvash Republic. The biggest investment projects are the following:
- Roadside complex on the federal highway М-7;
- Сonstruction of logistics centre in Cheboksary;
- Peat processing and production of soil modificator for agriculture;
- Recreation area on the shore of the Volga river, etc.
The Chuvash Republic has a number of projects implemented with participation of foreign investors:
- production of dry transformers (Russia - Italy);
- acrylic and hydromassage baths production -Roca Group (Spain);
- wholesale center - Metro Cash & Carry;
- brewing company InBev;
- equipment and systems for power industry – АВВ;
- Plant for sauces and ketchups production – Develey (Germany).
Advantageous geographic location and high population density, favorable climate and environmental conditions, developed social and cultural infrastructure (high number of different mass events all year round) are favorable for development of tourism, sports and health infrastructure, recreation areas in the Chuvash Republic.