# REGIONAL CORNER: SARATOV OBLAST

 

By Alexander Gordienko

 

The Saratov oblast is located in the Russia’s Lower VolgaValley, about 450 miles southeast of Moscow. The region has a population of 2.7million, while its capital city, also called Saratov, has approximately 900,000residents. In the Soviet era, Saratov was closed to foreigners because manyenterprises of the military-industrial complex were located in the region. Itwas opened in 1993. Other large cities in the region include Balakovo (207,000inhabitants) and Engels (185,000 inhabitants). 

 

The Saratov oblast is crossed by the Volga river. Saratov isone of the largest river ports on the Volga. Waterways provide access fromSaratov to Moscow, the western Urals, the Black Sea, the Baltic Coast, and theWhite Sea. 

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The oblast also features abundant energy resources. TheBalakovo Nuclear Power Plant and Saratov Hydroelectric Plant alone produceone-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 oiloutput is 1 million MT annually, the bulk of which is processed in Saratov. Theoil/gas and energy generation sectors account for 37.3 percent of regionalindustrial output.

 

Major Companies of Saratov

The **Saratov AircraftPlant** manufactures various modifications of YAK-42 aircraft for commercialand training purposes. The **SaratovTrolleybus Plant** is a major supplier of trolleybuses in Russia. It alsoexports them to Europe, Asia, and Latin America. The **Saratov Bearing Plant** specializes in producing a broad line ofroller bearings. **Litiy-Element** isthe only Russian supplier of lithium batteries. Rubber products made by **Balakovorezinotekhnika**are widely usedby such Russian automakers as VAZ and KAMAZ. The region is also the largestRussian producer of chemical filaments and fibers, and local companies produceacrylic acid, methyl acrylate, phenol, sulphuric acid, and fertilizers. 

Foreign Trade and Investment

Saratov oblast’s principal foreign trade partners are theUnited States, Great Britain, Italy, Holland, Turkey, and Germany. The region’smain 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, inconjunction with the Regional Government, adopted a number of laws to stimulateand guarantee private investments in the Saratov region. Under these laws,investors are entitled to exemptions from local taxes on profits, property, andvehicles for 3 years. Furthermore, they allow land for investment projects tobe leased (for up to 49 years) or purchased by individuals or commercialentities (including foreign ones).

 

In 1998, over 80 companies with foreign capital wereoperating in the Saratov oblast. The majority of them have German partners,including a joint venture with **Bosch**thatmanufactures automotive spark plugs and a joint venture with **Henkel**that produces detergents.Large-scale investment projects currently under way include the modernizationof 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**, andthe construction of a furniture factory in Balakovo with the French company **Seribo**. In addition, the **Saratov Aircraft Plant**is negotiatingwith U.S. company **Case**regarding thepossibility of assembling harvesters in its facility. 

 

*Alexander Gordienko isa **BISNIS** representative in NizhnyNovgorod, Russia.*

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*For more informationon the Volga region, visit **BISNIS Online**at www.bisnis.doc.gov/bisnis/country/regions.html#VolgaUrals.*****