**REGIONAL CORNER:YAROSLAVL OBLAST, RUSSIA**

 

by Olga Ananina

 

Yaroslavl oblast issituated 175 miles northeast of Moscow at the crossroads of important Russianauto and railroads, river ways, and air routes. Nearly 1.5 million peopleinhabit the region, which is the size of Massachusetts, Connecticut, and RhodeIsland combined. The oblast is abundant in forests and lakes. The oblast has amajor 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 significantimprovementConly 16 out of every 100 homes have atelephoneCthe transportation system is adequate. Theregion=s transportation infrastructure andconvenient location facilitate connections and business with the rest of Russiaand beyond. Vehicle transportation is the most popular mode of freight traffic,but rail and river routes are also used. 

 

**IndustrialActivity**

In 1997, YaroslavlOblast achieved 7 percent industrial growth and its industrial output percapita was the largest among the Central Russian regions. Located on nonfertilelands, the oblast is famous for its heavy machinery (diesel engines andelectrical equipment), refined petroleum products, textiles (one of the oldestand largest textile mills in Russia is located in Yaroslavl), aviationequipment, and synthetic rubber and tires.  

 

The region=s machine-building sector plays an importantrole in Russia=s economy. Leading subsectors of the localmachine-building industry include chemical and petrochemical machinery (polymericmachines, 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 roadmachinery.  

 

The chemical andpetrochemical industry and the fuel sector (oil and gas refineries) are also ofmajor importance for the regional economy. 

 

**InvestmentActivity**

The Yaroslavladministration has taken steps to promote the oblast as an investment friendlyregion. The regional law AOn State Support of Investments on the Territory of the YaroslavlOblast@ provides various tax breaks to companiesoperating in the region. The regional Duma is currently working on the creationof an investment guarantee fund. A local organization, the InternationalInvestment Center (IIC), led by a former Russian Federal Duma deputy and U.N.consultants, is very active in supporting local businesses. 

 

The United Statesand Sweden are reportedly the leading investors in the Yaroslavl Oblast, butDenmark, Italy, and Germany also have a presence in the region. **GeneralElectric**(USA) and **Aero Support Corporation** (Canada) have set upjoint production of airplane engines together with **Rybinsk Motors**company. **Baltic Beverages Holding** (Sweden) is participating in thereconstruction of a brewery. French company **Eurobach**is jointlyproducing 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 moreinformation on Yaroslavl Oblast, including contacts, visit **BISNIS Online**atwww.bisnis.doc.gov/bisnis/country/regions.html#Central. Additionally, BISNISdistributes news updates on Central Russia to interested U.S. companies. Toreceive this information, send an email with name, company, and address to[email protected].*