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The Udmurt Republic is a sovereign republic within the Russian Federation. It is situated in the Western part of the Middle Urals between the Kama and Vyatka rivers, which allows river shipment to the Volga River and to the sea. The distance between Izhevsk, the capital of the Udmurt Republic, and Moscow, the capital of the Russian Federation, is 1,325 km. Distances to other cities are St. Petersburg - 1,904 km; Ekaterinburg - 800 km; Kazan - 395 km. The republic covers an area of 42,100 sq. km which equals 0.25% of the total area of the Russian Federation. In the West and North, the Udmurt Republic borders on the Kirov region; in the East, the Perm region; in the South, Bashkortostan and Tatarstan.

Population and Labor Resources
On January 1st, 1995 the population of Udmurtia was 1.64 million people (urban population - 70%, rural - 30%). The density is 38.7 inhabitants per sq. km. 57% of the population are able to work, 25% are under and 18% are over working age. There are 5 cities and 25 districts in the republic: Izhevsk - 654,400 people, Votkinsk - 103,900 people, Glazov - 106,700 people, Mozhga - 48,200 people, Sarapul - 109,900 people 28% of the working population is involved in industry and 11% in agriculture. The total percentage of the working population involved in the regional economy is 78%.

Climatic Conditions
The climate of the republic is temperate continental with cold winters and rather warm summers. The average temperatures in January range from -15.50 C in the North to -14.20 C in the South, July ranges from 17.50 C to 19.00 C accordingly.

Precipitation (400-600 mm per year) is unevenly distributed between the seasons. In the Udmurt Republic the most treasured areas are valuable tracts of forest, nature reserves and land plots with natural medicinal factors. There are 19 health clinics, 10 holiday resorts and hotels, a balneological mud-cure health resort in Vartzi-Yatchi, a tourist center and 3 tourist clubs. Local forest animals include the fox, marten, ermine, badger, wolf, rodents (squirrel, hare, field-voles etc.). Muskrats have been acclimatized to the local conditions and beaver reserves have been created. Among game-birds are hazel-grouse, wood-grouse, heath-cock, partridge. Bream, perches, tenches, ides and burbots are found in local rivers.

The main natural resources are timber and oil. As of January 1st, 1996, 79 oil-fields have been discovered in the republic. A total of 379.543 million tons of oil are estimated as available resources. By January 1st, 1996 total accumulated production of oil had reached 213,241 million tons. Out of the whole volume of produced oil, 93% is sold outside the Udmurt Republic. Annual consumption of forest resources (main estimated wood-cutting area) make up 2,8 million cubic meters. The republic is also rich in peat and nitric methane deposits, building materials (pit sand, clay, limestone) and mineral water springs.

Transport Infrastructure
The Udmurt Republic has all forms of transportation (railway, motorway, waterway and air) with the other regions of Russia. The Izhevsk airport is certified for the first category of ICAO. An international gateway is under construction for both passengers and freight. The transportation network is comprised of 878 km of railways (504 km of which are electrified), 4,469 km of paved roads and 178 km of inner navigable waterways. The main wharves are at Sarapul and Kambarka. Kama River navigation to the Volga river and the Black Sea is possible for over six months of the year along the Kamaz the 162 km stretch within Udmurtia. The republic is crossed by 2 oil pipelines and 12 gas pipelines. There are no nuclear power stations in Udmurtia.

Industrial Complex
The history of Udmurtia as "an arms smithy" dates back to the early 16th century when the first factory shops were built on the banks of the Izh and Vyatka rivers. Udmurt industry has developed into a unique production complex supplying a vast range of arms: from small arms and combat guns to missiles and space equipment. Along with the military production, civilian products are manufactured, making Udmurtia one of the leading manufacturers in Russia for some commodity goods: sporting and hunting guns - 82%, motorbikes - 53%, washing machines - 5%, medical equipment - 8 %, automobiles - 3% of the Russian market. There are more than 200 industrial enterprises in the republic. Most of them are well-equipped and incorporate high-skilled labor. High production efficiency was required while fulfilling military orders which, as elsewhere in the world, have the highest quality requirements.

The largest enterprises of the republic are mostly concentrated in its capital, Izhevsk. Izhevsk produces automobiles and motorbikes, sporting and hunting guns, metal-cutting machines, structural, alloy and stainless steel rolled stock, rocket and space equipment, microelectronics and communications manufacturing, medical equipment, machines for cellulose and paper industry, various reduction gearboxes, geological survey equipment, drilling and other equipment for the oil industry, various bearings and consumer goods (garments, cassette recorders, motorized units, personal computers, microwave ovens etc.).

Construction
The construction complex of the Udmurt Republic includes a number of building contractors, enterprises producing building materials, organizations involved in development and research activity and others. There are 21 enterprises producing pre-fabricated ferro-concrete structures with a total output of 867,7 thousand cubic meters. The total output of enterprises producing piece wall materials is 478.8 million bricks. Udmurtia produces 187,000 cubic meters of gravel and 200,000 square meters of facade ceramic tiles are produced in the republic. Besides gravel, sand, construction metal structures, sanitary and technical items, Udmurtia also manufactures half-finished assembly parts, lime, timber, wooden cabins and other construction materials.

Three major enterprises of the gas industry in Udmurtia are "Udmurtneftegazstroi", "Udmurtgazstroi", "Udmurttruboprovodstroi." A number of private construction firms have been formed lately to implement low pressure gas pipeline and supply houses with gas. All these firms together are able to construct and put into operation up to 400 km of gas pipe-lines per year. The state enterprise "Udmurtavtodor" is the main road construction company which constructs, reconstructs and maintains roads. The joint stock company "Agropromdorstroi" was formed for constructing roads in rural areas. These companies are able to construct up to 500 km of paved roads per year.

Agricultural Complex
The climate and nature of the Udmurt Republic allow it to successfully develop multi-branch agriculture and agricultural raw materials for processing. Local topsoil is rather diverse but most of the arable lands are turf and podsol.

The main agrarian crops grown in the republic are grain forage, potatoes and other vegetables, flax-fibre and forage grasses. The production branch of agriculture is cattle-breeding. Its share in the gross volume of agricultural production amounts to 68%.

By administrative layout, the Udmurt Republic is split up in 25 rural districts where by January 1st, 1996 there were 169 collective farms, 22 state farms, one enterprise serving several farms (a hot-house complex in Zavyalovo), 239 new cooperative foundations (partnerships, farmers' associations, agricultural cooperatives etc.), 3604 private farms and 30 farming divisions of industrial and other non-agricultural enterprises.

The food industry is represented by bakeries and macaroni plants, 8 meat-packing plants, 10 milk, butter and cheese factories, 15 factories producing liquor, soft drinks, beer, starch and syrup.

Financial and Banking System
In Udmurtia, there are 23 independent commercial banks with 24 affiliates. As well 24 affiliates of commercial banks based in other republics and regions of Russia have been opened. The largest banks are: Euro-Asian Bank of Economic Development: "Evrazia" (12 affiliates, foundation capital of 30 billion rubles), an agent bank of the Government of the Udmurt Republic; Ural Trust Bank (foundation capital of 20 billion rubles), authorized by the Government of the Udmurt Republic to operate with securities and develop investment programs, Investment Landing Bank "ILB" (5 branches, stock capital of 32,7 billion rubles). Udmurt Universal Commercial Bank first bank of Udmurtia which introduced client services with plastic cards and "GOLD CROWN" cards. There are 30 insurance companies with 11 branch offices, including 7 medical insurance companies. The largest ones are: Inter-bank Regional Insurance Company; Euro-Asian Insurance Company. There are 30 investment institutions (investment companies, brokers, consultants), 3 investment funds, 1 exchange. The biggest is the Central Voucher Investment Fund with foundation capital of 11.5 billion rubles.

Scientific Potential
About a third of the people involved in the economy of the republic are experts with higher and specialized secondary education. In the past, the top engineering graduates from the Urals of Russia were sent to Izhevsk to work in the various defense plants. Five higher education institutions provide training of experts in 61 specialties: Udmurt State University, Izhevsk State Technical University, Izhevsk State Medical Academy, Izhevsk Agricultural Academy and Glazov Teachers' Training Institute. Almost 28,000 students study in these institutions. In 1995, higher education certificates were given to 3,585 students (22 people per 10,000 people). These schools are staffed by 2,300 professors and teachers out of which 1,800 have science degrees and titles. There are four academic and four branch research institutes incorporating 1,200 scientific research experts, including 18 Doctor's of Science and 128 Master's. A number of self-sustaining educational and consultative institutions were opened for training and consulting on market economy, about 100 people work in these and more than 400 people are enrolled. They are: Business School (founders: Izhevsk State Technical University and the consulting firm SIBEK, Germany); Business Academy and the Higher Jurisprudence College (The Udmurt State University); and Courses for managers and accountants for agriculture are available (Izhevsk Agricultural Academy). Some non-state educational institutions include International East Europe University (the main specialties are: economics, finance, pedagogy, jurisprudence, foreign languages, organization of international exchange programs), the firm "Mitra", the school for training managers of the society "Knowledge", "Izh-engineering", "Speaker", etc. Experts of the Government of the Udmurt Republic took part in several meetings with representatives of a Belgian educational firm where they discussed the possibility of establishing a business training center in Udmurtia.

Foreign Economic Relations
More than 430 participants of foreign trade departments cooperate with foreign partners from 71 countries. The main and traditional items exported from the Udmurt Republic are oil, timber, sporting and hunting guns, cars and motorbikes, rolled constructional, alloyed, stainless and other steels, microelectronics and communications equipment, different kinds of bearings and casein. The Republic exports mainly to 71 countries, including the U.S., Germany, Ireland, France and Egypt. Oil deliveries make up 46% of the export structure, produce of ferrous metals 18%, machines and equipment 10%, sporting and hunting guns 5% Machines and equipment, medicines, medical equipment and consumer goods and food products are the main imports to the Republic. Udmurtia's main foreign partners are Ukraine, Germany, Hungary, the U.S. and Kazakhstan. The largest companies with foreign investment are Russian-German Joint Venture "IZHTEL" - manufacturing and distribution of modern digital communication systems, Izhevsk Radio Plant exporting products to Motorola, Russian-Czech Republic Joint Venture Ural Invest Oil Corporation" (UOIL) - workings of oil-fields, Russia-Finnish Joint Venture "Sarabella" - footwear manufacturing, British enterprise "Furniture International" - furniture production, Russian-American Joint Venture "IZHCOM" - developing of telecommunication systems, Russian-American Joint Venture "UVIMEX" - jewelry production.

Opportunities for Tourism Development
There are many historical and cultural landmarks in Udmurtia. Its flora and fauna are very interesting. People are proud of the fact that genius Russian composer Pyotr I. Chaikovski was born in Udmurtia. The Pyotr I. Chaikovski's House-museum - a unique memorial architectural ensemble - is in Votkinsk (40 km from Izhevsk). The Chaikovski family relics are presented there. The museum of Mikhail T. Kalashnikov, the general designer of the world-renowned submachine-gun AKM, is currently being built. Hunting of wood-grouse, heath-cocks, wild ducks, wild bears and wolves is permitted. There are 26 hotels in Udmurtia. All kinds of communication are available in the Republic: 453 telephone stations, telegraph (automatic connection), international telex communication, E-mail (Global One/Sprintnet, Internet, Global Fax) and Federal Express delivers mail to all cities in the world.

Directions of Investment Policy
In accordance with the Program of economic and social development of the Republic of Udmurtia for 1995-1997 priority directions were defined as food production, conversion from military to civilian production, usage of natural resources, fuel and power, housing, transport, communication and information. One of the priority goals is to increase oil production mainly by means of developing new oil fields and improving the operations of existing ones. To achieve this, the Republic of Udmurtia is counting on attracting foreign investors and partners for mutually beneficial cooperation.

Last Updated: 8 June 1999.
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