Regional Overview of the Autonomous Republic of Buryatia, Russia


September 1998

Provided courtsey of Rural Enterprises International
Bill Mueller
1427 4th Street SW
Cedar Rapids, Iowa, 52404
Tel: (319) 366-4230,
Fax: (319) 366-2209
E-mail: REAP@reapintl.com


The Autonomous Republic of Buryatia is a region of opportunity in Russia. Its location on the Mongolian border, and in conjunction with Lake Baikal has provided a history of protectionism under the Soviets. Buryatia was a buffer zone with Mongolia. The presence of advanced avionics for Russia's military aircraft industry further restricted exposure with the West. Its distinction as an Autonomous republic has inhibited growth in value added production, as the Central system preferred to export raw materials out of Buryatia for processing in locations where they had more political control. Still, Buryatia has vast amounts of mineral resources, and the greatest source of high quality water-- Lake Baikal, and mineral waters, found in the world. Given the beauty of Buryatia, its friendly and open people and strategic location, it can be said to be an area of great potential for foreign investment.

GEOGRAPHICAL LOCATION AND CLIMATE

Buryatia is located in south-central Asia stretching along the eastern shore of Lake Baikal. Five time zones separate Buryatia from Moscow. The capital, Ulan-Ude, is 5,519 kilometers from Moscow and 3,500 kilometers from the pacific ocean. To the south Buryatia borders Mongolia, and to the east Chita. Lake Baikal creates a natural border to the Irkutsk Oblast. To the far west is a relatively small border with the Tuva Republic. Buryatia covers 351,300 square kilometers, excluding Lake Baikal, which makes up 2.06% of all Russian territory. Comparative area: nearly corresponds to the size of united Germany and a bit larger than England.

The climate in Buryatia is sharp continental, tempered by the presence of Lake Baikal, the world's largest lake. In January the average mean temperature dips to -24 C, but with very little snowfall. In July the temperature can reach the 80s and 90s (Fahrenheit), with a mean temperature of around 65 F. Baikal is situated on one of the great rift zones of the world, with considerable seismic activity. Here converge the inner Asian steppes and agricultural lands to the south (13% of land mass), the subHimalayas and desert ground (about (15%), and the Siberian boreal forest (70%). These ecosystems all enjoy favorable conditions because of the presence of the lake, which moderates temperatures and has been directly responsible for the sustaining of numerous unique plant and animal species (approximately 1600 are found nowhere else on earth) In addition, the area is one of the world's greatest sources for minerals. Finally, the lake itself is a vast supply of exceptional drinking water and around Baikal are an abundance of extraordinary mineral water springs with special qualities.

Buryatia and the Buryats

Buryatia was part of Mongolia, and Buryat people are descended from Mongolians. Ghengis Khan is reputed in many accounts to have been born in the Barguzine Valley of Buryatia. Nomadic agriculture in the Steppe tradition of Mongolia predominated prior to Soviet Collectivization. Llamanism and Shamanism have persisted in the Buryat culture despite Soviet efforts to severely restrict their influence. They remain important to Buryats. Since 1991 there has been a rebuilding campaign to restore local temples (Datsan) and various sacred places. This trend is part of a larger effort to revitalize Buryat nationalism in very constructive ways.

In 1996 the population of Buryatia was 1,049,000, including 29% Buryats and 71% Russians and small numbers of other ethnicities, including Baltics, Tartars, Kazaks, Evenks (Inuoyuet people), Yakut, Germans, Ukrainians, Poles and Belorusse. The population of the republic has a 98% literacy rate.

The capital of Buryatia is Ulan-Ude, with 362,400 inhabitants (1991 census figures). It is situated at the confluence of the Uda and Selenga rivers. It was founded in 1668 by Russian Cossacks, who built a small fortress there. In the 18th Century it became important as a site on the Far East Tea Road. Then in 1899 with the opening of the Trans-Siberian railway it became even more economically important.

Modern Ulan-Ude is an industrial center in the Republic, having car, aircraft, locomotive car, meat packing factories, glass making, construction, concrete, avionics (fighters and helicopters) agricultural machinery and forest products.. The city also possesses several high-level educational, cultural and arts facilities, including a state university, an opera house and several drama theaters. There are approximately 600 settlements, villages and towns where 70% of the Republic's population reside.

Government of Buryatia

In February 1992, Russian legislation designated the Buryat Sovereign Socialist Republic (SSR) the Republic of Buryatia-- also referred to as the Buryat Republic. As an autonomous republic of the Russian Federation, it has its own constitution and parliament, known as the Khural, and elects its own president, giving it greater autonomy from Moscow's central government. Mr. Leonid Potapov (the former Chairman of the Supreme Soviet of Buryatia) has been elected President twice, most recently in July 1998 for a 4-year term..

ECONOMIC HIGHLIGHTS

Economically, Buryatia is in the East-Siberian Economic Region. Other territories of the economic region are Irkutsk and Chita Oblasts, Krasnaarsk, Tyva, Khakasia, Tajmyr and Evenkia Republics, and the Ust-Ordynsk Autonomous Oblast. Buryatia was third in the region in growth in industrial goods output. The economy of Buryatia is based on food production, paper, automobile and aircraft construction industries, forestry and agriculture.

The process of privatization . State enterprises with regional ownership have been transformed into joint-stock companies between 1994 to 1997. The process of privatization began in mid-1992. Two hundred enterprises were privatized in the course of three years. By the end of 1994, the share of nonstate sector in the industry was 85.5%. This translates into 80% of the total volume of the finished goods and 74.8% of the number of employees.

Land use: wood forestry economy (77.68%), agriculture (13.22%), state reserve (6.37%), parks and protected landscapes (1.18%), industry (1.5%), transportation (0.09%) (1989)
GDP (1993) industry - 44.2%, transport and communications - 20%, agriculture - 15.1%, material-technical supply - 13.1%, construction - 12.9%, trade and public catering - 5.8% In 1997, for the first time since reforms, output of finished industrial goods was 105.5%

At present, there are the following parameters of Buryatia:
-the rate of profitability of the state treasury bonds - 34-45%
-refunding rate of the Central Bank -31%
-profitability in the production sphere -5-7%
-employment of the production capacities in the industry -40%
-rate of unemployment including hidden unemployment -10-15%
-inflation rate -10%

The share of forms of enterprise ownership, based on % of GDP is::
- state owned enterprises -51.4%
including:
-federal ownership - 43.4%
-republican ownership - 8.0%
- enterprises of mixed ownership -20.2%
- private enterprises - 12.1%

At the end of 1994, the non-state sector share of industry was 85.5%, or 80% of the total volume of the finished goods, and 74.8% of the number of employees.

Industry - The share of industry in the structure of the economy of the Republic of Buryatia decreased from 39% in 1992 to 26.4% in 1996. This decline effected such important sectors in the industry as engineering, chemical manufacturing and light industry - from 48% in 1992 to 22% in 1996.

The industrial share of the Republic economy decreased from 39% in 1992 to 26.4% in 1996. Most effected were engineering, chemical manufacturing and light industry-from 48% in 1992 to 22% in 1996.

The share of the energy sector n the gross volume of the republic's work provides a significant window of opportunity for the Russian forest industry, now poised to profit from recent boosts

The timber and timber processing industry plays an important role in the economy of the republic. This branch's production constitutes 7.6% of the cost of the republic's industrial production.
The amount of processed timber (in thousands of cubic meters):
- export - 185.4
- production of timber 148.3
- production of sawn timber 58.1


Production of the Selenginsk pulp and paper mill:
- cellulose - 8646 tons
- cardboard - 32291 tons
production of cardboard boxes 31785 sq.m.

The Forest Ministry is responsible for developing regulations for forestry activities and issuing
appropriate permits. The third level is the forestry enterprise, either private or collective, which conducts timber harvest and/or sawmilling. It is these enterprises, developing as private industries, that are seeking joint venture investments and modernization.

B. Agriculture and food industries

Today agriculture contributes 18% to total output in Buryatia, second to industry with 55%. Agriculture has always been a significant part of Buryat life. Agricultural production occupies 3,105,000 hectares, or 9% of Buryatia. The main agricultural production is cattle, sheep, potato and vegetable growing. Buryatia is a net importer of food.

Agricultural enterprises of different forms of management work in the republic:
- collective farms - 74
-Sovkhoz -35
- agricultural enterprises of new - 103

Last year stabilization of production in agriculture was reached. Gross production exceeded the level of 1996 by 4%. For the first time since 1990, there was a 2% growth in paid agricultural services, or 450 new jobs.

Total number of livestock produced (thousands of heads).
- cattle - 87,7
- pigs - 18,7
- sheep and goats - 21419
- poultry - 479,8

Processing of agricultural prodducts (thousands of tons):
- meat (cattle and poultry) - 5,0
- milk - 22,4
- eggs (millions of pes) - 44,9
- gross yield of grain - 8,4

The meat and milk producing industry dominates the food industry. The leading companies "Buryatmyasoprom" and "Moloko". Flour and grain are used by the mixed fodder producing industry, with leaders Zaudinski flour mill, Shalotski mixed fodder plant. The fish processing industry is represented by Ust-Barguzin, Yuzhnobaikalskii and other fish processing plans.
Volumes of production:
- food fish products, including canned fish -1071 tons
- meat, including subproducts of the 1st category -937 tons
- whole milk products -3474 tons
- butter -152 tons
- bread and bakery products -11128 tons
- vodka and other spirits -229 thousand dekaliters
- flour -34181 tons
grain -172 tons
- mixed fodder -9077 tons

C. Construction manufacture

Volume of production of the building materials' industry:
cement 179 tons
- bricks 14.8 million pcs
- asbestos-cernent sheets - 29.9 slabs
-assembled reinforced-concrete - 18.2 thousand sq.m.

D. Metullergy

Buryatia occupies a foremost position in Russia in mineral reserves. The largest Russian deposits are found here for lead, gold, silver, molybdenum, tungsten, fluor-spar, and asbestos. There are over 500 known deposits; including 300 state-registered. This includes beryllium and chrisolite-asbestos, tin and a number of apatite, phosphorite, boron, graphite, zeolite, bentonite, perlite, etc. Buryatia has enormous deposits of iron ors, potassium, and nepheline-syenite ores. Deposits of Green and black nephrite are found nowhere else in Russia. Such semi-precious stones as cornelian, agate, chalcedony and chrysolyte are found here. Exploitation of tin, beryllium, tantalum, niobium, strontium and other rare minerals are planned for the future.

Buryatia has 48% of zinc and 24% of lead reserves of Russia. Large deposits- Kholodninskoye and Ozernoye polymetallic ores deposits-are explored and are ready for development to commercial level. Quartz sandstone deposits which are the raw materials for manufacturing products of "silicon revolution" according to the experts amount to 40.7 million tons. Exploitation of these deposits is very promising as the content of silicon oxide in the raw materials is up to 99.94%. Production of quartz materials in Buryatia is a Federal priority, because the Ural deposits which are now used for industry are on the verge of exhaustion.

Of great potential are the phosphorites deposits in the Hubsugul basin. Plans include production of double superphosphate, yellow phosphorus, and fodder phosphates. There are large deposits of non-metallic minerals: phlogopite mica, chemically pure limestone used in the production of highly efficient paint fillers (a substitute for expensive titanium oxide), cement marbles, sand-gravel mixtures, brick clay, and other building materials.

Tungsten-Buryatia's share of known Russian reserves of tungsten is 27%, with current exploitation at 15% of the Federal output. The Djidinsky Molybdenum and Tungsten Processing Factory is Russia's third largest facility of this kind in production of tungsten concentrates. Extraction of molybdenum and tungsten in Buryatia is important for Russian industry in need of polymetals for alloys.

Molybdenum. The republic processes 30% of all molybdenum in Russia, including 20% of high grade ores. The Erdenetiin-Obo copper-molybdenum deposit has an annual ore production of 12.5 million tons. Fluor-spar. Buryatia's share of Russia's reserves of flour-soar is 16%, with production 10.4% of the Federation's total. Uranium. Buryatia has large reserves of uranium, which rank among the richest deposits in the world.

Gold. There are 205 placer and 13 ore gold fields. There are six regions of Buryatia involved with gold-mining. The total output of gold in 1994 was 4,080 kilograms, of which 37% came from ore deposits and 63% from placer deposits. Over 40 enterprises deal with gold mining in the republic. The major gold mining enterprise is Buryat Zoloto joint stock company.

E. Ship and electric locomotives and car works, aircraft and technics

Light industry takes up the second position in the total volume of production. The total production of this field constitutes 19%. In 1997 the enterprises of the field produced:
- AC electric engines -1325 pcs.
- civil helicopters -24 pcs.
- locomotives and railroad carriages repaired -350 pcs.

F. Energy Industry

The fuel and power industry of Buryatia is a major part of the overall economy. The regional companies produce 6 percent of all the energy produced in Russia. The fuel and power industry of Buryatia is based on the use of coal. The republic has significant reserves of both hard and brown coal. Eight enterprises in Buryatia are engaged in coal extraction. The major ones are the Tugnuisky annd Kholbodzhinsky open casts, and Gussinoozerskaya coal mine. Gussinoozersky economic complex is the center of the coal-mining industry of Buryatia. Here, based on a large lignite deposit the Gussinoozerskaya Power Station was constructed, which was designed intended to supply the needs not only of the Republic but of the neighboring Chita Region and Mongolia. The large reserves of this coal field have the potential for increased output in the future.

The Okino Kiyuchevskoye, Daban-Gorkhon, Sangin, Zatulak, Gusinoozersk, and Tugnui coal deposits have reserves of brown coal of 1.7 billion tons; and bituminous coals at 2.2 billion tons. All of this coal is used regionally. Part of the Tugnui coal production is exported to Japan.

Buryatia's location and climate make it ideal for exploitation of alternative energy, including wind, water and solar energy. There are nearly 300 sunny days in Buryatia in a year, and about 1,000 small and large rivers.

II. Water Resources

Lake Baikal is an enormous natural reservoir of pure, continuously renewed potable water. Of its 23 kM3 of water, about 12,000 km3 meet the most rigorous international standards of potable water in all characteristics. Lake Baikal meets the modern international criteria for the highest quality water and the WHO standards for microbiological, organoleptic and chemical parameters. The Secchi white disk to estimate water clarity can be seen in Baikal to a depth of 40 m, whereas the water clarity the Caspian Sea does not exceed 25 m, and that of Lake Sevan, 20 m.

Mineral Waters

Baikal rivals the world's great resort areas in its mineral springs. Medicinal waters from Baikal equal those of the 'Narzan" and "Vichy", '7skhattubo' and "Budapest", "Staraya Russa" and "Belokurikha', "Naftusya" and "Matsesta" type, and waters of Hochrhein Graben and West Czechia, Pyatigorsk, and Wiesbaden are found here. The underground waters are mainly sweet hydrocarbonate magnesium-calcium waters with a mineralization that seldom exceeds 0.5 g/l. The underground waters are mainly sweet hydrocarbonate magnesium-calcium waters with a mineralization that seldom exceeds 0.5 g/l. The mineralization of underground waters increases with depths up to 3 g/l, and their composition changes to chloride-hydrocarbonate, and even chloride-sodium. Certain of these mineral water resources can be used for extraction of industrially valuable components and as a source of thermal energy.

Baikal and mineral water is produced and packaged at the "Akvabur" enterprise: Baikal water - 10 million plastic 1,5 liter bottles a year, mineral water (7 sorts) - 5 million plastic 1,5 liter bottles a year. Cost: Baikal water - 40 cents/bottle; mineral water - from 25 to 40 cents/bottle.

III. Tourism

Buryatia has the necessary infrastructure for development of foreign tourism. The Ulan-Ude airport has connections to most major cities in Russia, including Moscow. Accommodations range from bed and breakfast to hotels, camps and village homes. A number of companies operate in Buryatia with English-speaking guides. Total recreational capacity of the coastal strip of Lake Baikal is estimated as approximately 1-1.2 million persons per year. According to the estimates, the potentials for recreation and tourism are currently used only for 3-15%, although recreation facilities satisfy only 30 % of potential tourists.

Buryatia is rich in well known health resorts, usually with hot and mineral springs and therapeutic mud baths. The Arshan resort in Tunka region is well known in Russia. The unique mineral water and mountain air offers excellent possibilities for curing and resting.

IV. Small Business

Today, there are 4,578 small business in Buryatia, which provide 30,000 jobs and account for 18% of GDP and 15% of tax revenues. The majority (47%) are involved in trade. 17% are industrial, 31% are involved in commerce, and 24% in construction. The others were involved in the service sector or agriculture.

The Consolidated Programme of the State Support and Promotion of Small Business in the Republic for the Period from 1997 to 1999 is intended to facilitate further development in the private sector of the economy. The objective of this program is to improve economic and organizational conditions for successful development of the private sector of the economy of Buryatia and providing financial support by means of providing loans and investments.

According to the program, priorities for state support will be granted to small businesses dealing with:
-processing of agricultural products
-production of food stuff and consumer goods
-construction of buildings for residential, industrial and social sectors
-manufacturing of export goods
-providing communal and household services
-production of medicine products from medicinal herbs
-innovation activity

V.. Investment Outlook

There are indications for overcoming the decline of investments. The rate of decrease of the volume of investments in fixed capital is down from 1996 by 23% to 25%. The main sources of investments remain internal funds of the enterprises which make up 54.5% of the total volume of investments. Budget investments ranged up to 23%.
More than half of the total trade turnover in Buryatia last year came from small businesses.

TRANSPORTATION SYSTEM

The basic modes of transport in the republic are railroad and automobile transport, Length of roads (kms):
- railroads -1270
- automobile roads -6297
paved roads -5820
Rail

The two railroad lines which service Buryatia are the Baikal-Amur Mainline (BAM) and Trans Siberian Railroad. The TransSiberian passes through Irkutsk, skirts the southern end of Baikal, then Ulan-Ude, Chita and on to Vladivostok. Other lines connect Buryatia to Mongolia and China. To the North, BAM ties the north end of the lake at Severobaikalsk to the timber regions of Chita and on to the ports of Sovetskaya Gavan and Vanino on the Pacific coast. The Ulan-Ude railway station is a major railroad hub of East Siberia for cargo and passengers. These lines maintain and operate 1,216 kilometers of track in Buryatia.

The geographic location and availability of a well established transport network allows Buryatia to be considered as a transport gate of Russia to the northeast and far east, and to the Asian mainline (BAM) cross Buryatia, linking it to the Eastern and Eastern regions in Russia and also to Mongolia and China via branch lines. The Ulan-Ude railway station is one of the major railroad hubs of the East Siberia through which cargo and passenger trains pass. The Ulan-Ude Branch of the East-Siberian Railway and the North Baikal Branch of the Baikal-Amur Mainline are responsible for maintenance and operation of 1,216 kilometers of railroads in Buryatia.

Roads

The road system of Buryatia includes State and Federal Highways. This includes the Federal highway between Ulan-Ude and Irkutsk and the Kyachta highway, connecting Buryatia to Mongolia. The Bargouzin paved road is the only road passed along the eastern coast of Lake Baikal. The Republican specialized enterprise Buryatavtodoor deals with construction and maintenance of roads.

Water

Navigation is possible on the Selenga and the Uda rivers and Lake Baikal, The waterways are used to transport sand, gravel, petroleum products, timber. Passenger transportation on Baikal is done between the ports Ust-Barguzin, Nizhneangarsk, Severobaikalsk.

Air

The local Buryat Airlines provides passenger and cargo transport in the Republic and to Moscow, Irkutsk and other Russian cities. The Ulan-Ude airport has international airport status. It is located 20 kilometers from the center of the city, with bus and taxi services available.

TELECOMMUNICATIONS

The telecommunications network of the republic is tied to the Russian network through "Rospak" "Rosnet". Between 1992-1997 the new automatic telephone stations were opened. They include intercity and internal stations as well as a cellular one. As of the 1st of January there were 116.5 thousand telephones in the network of a common use, and 194 thousand radiotransmitting points.

BANKING SYSTEM

In the republic there exists a two-level banking system. The first level-the Bank of Russia, operates the National Bank of Buryatia. The second level is commercial banks. The National Bank is in charge of regulating the activities of credit making organizations which operate in the republic, provides functioning for the systems of payment and settlement, and controls the status of the money conversion system in the republic. The activities of the National Bank of the Republic of Buryatia are governed by laws passed by the Russian Federation and by the policies of the Central Bank of Russia. In accordance with the concept for the development of the payment system in the Bank of Russia network, the network of the National Bank is working on optimizing its payment system.

The development of the commercial banks' network began in 1990, when the independent commercial banks were formed from former specialized banks. At present there are 10 independent banks operating in Buryatia , as well as branches of Russian banks. Five commercial banks have licenses to carry out the currency operations outside Russia, The leading branches of the Russian central commercial banks are "SBS Agro," Mosbiznesbank, etc. At the same time 2/3 of all savings of the local population are kept in Siberbank of the Republic of Buryatia. The capital of independent commercial banks comes to 86.5 million rubles.

Credit organizations lend money to and manage payments from clients in accordance with the laws of the Russian Federation. They are independent to determine credit limits. In 1997 credit investments amounted to 345.9 million rubles. One third of the loans were for companies involved in the production of materials.

All of the banks of the republic can buy and change foreign currency. 37 exchange offices operate throughout the republic, 21 in the city of Ulan-Ude and 16 in other regions of the republic. Bikombank, Buryat Bank of the Russian Federation and the Buryat Directorate of the Moscow Business Bank conduct operations with traveler's checks, such as those issued by Visa, Thomas Cook, American Express, Bank America and Citicorp. Banks in the republic allow you to make withdrawals with credit cards. Accepted credit cards include: Gold Crown, Sberbank, STB Card, Cirrus, Maestro, and Visa Electron.

Today clients have the option to make electronic payments in 51 local regions. The Central Bank is doing electronic banking. An internal system for electronic payments is functioning.

SCIENCE AND EDUCATION

In Buryatia there are 55 higher and 13 specialized educational establishments, 44 vocational technical schools, 563 secondary schools, lyceums and gymnasias. Specialists in medicine, forestry, trade, construction and other industries are trained in 44 technical and specialized colleges. The East Siberian State University of technology has the most students (5,860) and teaching staff (550). The university actively participates in realizing international programs on sustainable development of Baikal region, do research on environmental protection of the Baikal region.

The Buryat Scientific Center of the Siberian Branch of the Academy of Science with its specialized research departments, 4 universities, and over 20 secondary technical and specialized schools will provide the large scientific base helping to determine the future economic development of Buryatia. The Buryat Research Center is one of the biggest scientific centers in Siberia where about 150 doctors and 1000 candidates of science do research in different fields of science and technique. The Business and Management Institute "SEICY" and the Siberian Institute for Finance and Banking produce experts for banks, insurance companies, stock exchanges and investment funds, including post graduate study.

There are five theaters in the capital of Buryatia: Buryat State Academic Opera and Ballet Theater, Buryat Academic Theater, Russian State Academic Theater, Youth Theater-Studio and Buryat State Republican Puppet Theater. Russians, Buryats, Old Believers, Cossacks, and Evenk folk groups regularly perform at a professional level.

FOREIGN ECONOMIC ACTIVITY

Import of finished goods exceeds export by 1.8 times. Half of imports are consumer goods. 130 types of imports are not produced in Buryatia. Buryatia has capability to produce many of these imports with improvements in facilities and personnel training, from household goods to ecologically pure food. Leading imports include machine building and construction (38.8%) and foodstuffs (49.2%). The machine imports include irrigation equipment, wood processing machines, cars and trucks, transformers and accumulators, and airplanes. Food products include meat, grain, vegetables, fruits and meat by-products are the most frequently imported.

Industry in Buryatia is oriented towards export. 70% of trade transactions involve exports, including wood products, cellulose, wool, crops, gold, silver, metals (zinc, tin, nickel, wolfram, molybdenum, beryllium) coal, marble, furs, leather, electromotors, tools, glass, furniture parts. Machinery and equipment make up 46.3% of Buryatia's exported goods. Fuel and energy products account for 21% and forest products 18.8% Leading goods are coal (300,000 metric tons), wooden boards (130,000 cubic meters), cellulose (10,000 metric tons), cardboard (20,000 metric tons), furs, skins, helicopters, electronic engines, and parts for answering machines.

Export goods: wood and forestry materials, cellulose, wool, crops, gold, silver, metals (zinc, tin, nickel, wolfram, molibdene, beryllium) coal, marble, furs, leather, electromotors, tools, glass, furniture parts. Machinery and equipment make up 46.3% of Buryatia's exported goods. Fuel and energy products are next in line at 21% and forest products are in third place at 18.8%

In 1996 the export from the republic amounted to 109500 thousand USD, while imports were 54900 thousand USD. This consists of the following

China - 41170 thousand USD (export), 9450 thousand USD (import)
Mongolia - 171 00 thous. USD (export), 2674 thousand USD (import)
Pacific region - 17830 thous. USD (export), 5126 thous. USD (import)
Export:
Machines and equipment - 491 00 thousand USD
Raw materials, other materials, consumer goods - 461 00 thousand USD Import:
Machines and equipment - 2980 thousand USD
Raw materials, other materials, consumer goods - 6500 thousand USD
Food products and grain - 26290 thousand USD

Buryatia's largest trading partners are China and Mongolia. Between 1993 and 1996 trade has increased with other Asian and Pacific rim countries by almost ten times.

The largest exporters of the republic are: Selenginsk Pulp and Paper Mill, ulan-ude Aircraft Plant, "Arig Us" concern, Felt Manufacture,

The main importers: Trade house "MAV", Severobaikalsk joint stock company "Gilyui", Tugnui Coal Mining Section.

Main imports are for machine building and construction (38.8%) and foodstuffs (49.2%). The machine imports include irrigation equipment, wood processing machines, cars and trucks, transformers and accumulators, and airplanes. The most frequent food product imports are meat, grain, vegetables, fruits and meat by-products are the most frequently imported.

Foreign Investment

The accumulated volume of the foreign investments in 1997 was 10,4 million USD. The geography of investments includes 22 countries (China, Mongolia, the Pacific region, Ireland, Netherlands) 103 joint enterprises were registered on the territory of the republic. From this amount about 40 are fully operational. These are primarily carried out with China and the Pacific region.

External trade of the Republic of Buryatia (in thousands of dollars)

Countries       1993           1994          1995           1996 
TOTAL
Transactions   95800          160700         182530         164400
Export         53400          76800          109500         109500
Import         42400          83900          73030          54900

Countries of Asia and the Pacific region
Transactions   80534          66100          78820          93350
Export         47100          43200          54020          76100
Import         33434          22900          24800          17250

China
Transactions   64800          43800          37300          50620
Export         37500          29500          24650          41170
Import         37300          14300          12650          9450

Mongolia
Transactions   13634          15980          19520          19774
Export         8200           7900           18170          17100
Import         5434           8080            1350          2674

Countries of the Asia Pacific region
Transactions    2100         6320           19520          22956
Export          1400         5800           18170          17830
Import           700          520            1350          5126

Joint Venture Potential

There are 65 joint ventures operating in Buryatia. Foreign partners include China (26), Mongolia (7), U.S. (6), Korea (6) and countries of the Commonwealth of Independent States.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)