# **DISCOVER CHUVASHIA**

 

ByPhilip H. de Leon

 

Russia’s Republic ofChuvashia is located 400 miles east of Moscow in the Volga-Vyatka region. TheRepublic has 1.36 million inhabitants, with 458,000 living in the capital,Cheboksary, and 123,800 in the second largest city, Novocheboksarsk. Cheboksaryis situated between the cities of Nizhny Novgorod and Kazan. Many businessopportunities exist in Cheboksary, some of which are already being takenadvantage of by European companies. 

 

Certain industrial sectorsare well developed, such as engineering, metalworking, electric powergeneration, food processing, and chemicals. Chuvashia mostly exports rawmaterials, textiles, and consumer goods. Its main imports are organic andinorganic chemicals, electronic equipment, and electrical measuringinstruments.

 

Electronicsand Machinery

The Electronics and Mechanics Plant **ZEIM PLC** (www.zeim.ru) is a majorcompany specializing in manufacturing electronic devices and controllingequipment, such as electric actuating mechanisms, microprocessor controllers,water flow and heat meters, transducers, and controlling devices for automatedprocess control systems, electric stop and control valves. ZEIM PLC, as aproduction and financial holding, employs several thousand people both directlyand through its subsidiary and affiliated companies.

 

Chemicals

**Khimprom,**one of the largest chemicalplants in Russia producing consumer goods and goods for different branches ofindustry, is a key producer of cationic dyes and methylenechloride. In a 1999Chuvash Republic investment guide, called *Handshake*,Khimprom said it was looking for investment to introduce polycrystal siliconproduction to satisfy the needs of the home electronic industry, to establish afacility to satisfy the needs of the technical rubber production andtire-making industries, and to introduce specialized production ofpharmaceutical preparations and substances.

 

HeavyMachinery

Anyone visiting Cheboksary can only beimpressed by the size of the **Promtraktor**plant, which produces tractors for agricultural and industrial purposessimilar to Caterpillar’s equipment and machinery. Promtraktor also producesseveral versions of tracked and wheeled bulldozers, pipe layers, and mechanicallift trucks.

 

Agribusiness

Chuvashia has huge potential in beerproduction as the region grows two-thirds of Russia’s hops. Cheboksary brewery **Buket Chuvashii** is a major producer ofbeer, as well as of nonalcoholic beverages. The company is interested increating a joint venture to install new equipment to increase beer output. Thebrewery **Yantar**has a similar goal.The Association of Hop Growers of Russia, founded in 1994 and based inCheboksary, aims to increase production and processing of hops. 

 

Bankingin Cheboksary

One of the largest banks in the region is theChuvash branch of the Savings Bank of Russia, **Chuvashsberbank**. Chuvashsberbank benefits from the widest network of branches availablein Russia. Another major bank is **Chuvashkreditprombank**,which is an independent regional bank with branches throughout theRepublic.  It works closely withthe Chuvash Republic Government. Both banks have correspondent relationshipswith major foreign banks.

 

TravelTips for Cheboksary

One can fly to Cheboksary from Moscow onAeroflot three times a week (via Bykovo and Domodyedovo airports). There is adirect train from Moscow five times a week (via Kazansky train station).

 

Cheboksary is also about a two-hour drivefrom Nizhny Novgorod. A car with a driver is recommended for this trip and foraround the city to save time. It can also be used to reach neighboring citiessuch as Nizhny Novgorod and Kazan, which also offer good investmentopportunities.

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There are no hotels meeting internationalstandards in Chuvashia at this time. However, the **Atal**(meaning Volga in Chuvash) hotel in Cheboksary is very nice,and its room prices are reasonable.

 

A unique tourist experience in Cheboksary isthe Beer Museum, which serves as a showcase for the Cheboksary brewery BuketChuvashii. Beware that if you go for a beer tasting, the standard serving is1.5 liters of beer.

 

LocalAssistance

The Republic has been proactive in compilinguseful information for potential investors, some of which can be found on theInternet, including on the website of the Presidential Administration of theChuvash Republic (www.chuvashia.com). The site contains local companies’business proposals listed by industry sectors, although they are mostly inRussian.  

 

A strategic approach to doing business inRussia’s regions is to closely interact with the local **Chamber of Commerce and Industry** (CCI) ([email protected]) andthe local city administration, especially the Department of Foreign Relations([email protected]). Both usually have close contacts with local companies andwould be able to discuss your interests, study your business proposals, andarrange meetings for you with the right decisionmakers.

 

The CCI provides a wide range of servicessuch as certification of goods, organization of events, and company matchmakingservices. It also acts as a trade facilitator by compiling a database of“Commercial Proposals” consisting of business proposals submitted by localcompanies.

 

*For contact information for Cheboksary companies and additionalinformation on the Volga region of Russia, visit www.bisnis.doc.gov/bisnis/country/Volga.htm.*

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*Philip de Leon covers the Volga Region for **BISNIS**in Wash., DC.*