Bashkortostan – is one of the most developed regions of the Russian Federation. Transition to the market economy from the beginning of 90-s of the ХХ century supposed searching for new ways, providing high efficiency of management. As a result, Bashkortostan managed to save the position in the first ten subjects of Russian Federation on the indicative indexes of social-economic development: the gross regional output, volume of industrial production, agricultural production, investments in the fixed assets.

The economy of Bashkortostan, being one of the largest industrial centers of Russia, has the diversified structure and is notable for high concentration of production. Industrial enterprises made over 1300 names of products, thus half of them are in stable demand both in other regions of Russia and abroad. In the structure of industrial production, a considerable part falls to the share of fuel and energy complex. On volume of oil production Bashkortostan is in the lead in our country. Moreover, the republican oil-refining complex – is one of the largest in Europe. In Bashkortostan, a considerable part of Russian oil is refined and different types of motorcar petrol and diesel fuel are made.

Besides fuel energy, Bashkortostan is distinguished by highly developed chemical and petrochemical industries, powerful machine-building. Traditionally high indexes are registered in the agro industrial complex. The natural climatic conditions of the region allow developing successfully different industries of agricultural production. 

The developed economy and stable political situation made Bashkortostan one of the most investment attractive regions of Russia that is confirmed by high estimations of leading world ratings agencies. Active foreign economic activity of our republic serves a proof to that. Year by year volume of external commodity turnover grows, thus an export exceeds an import considerably. Today about 90 countries of the world are in the number of the states-partners of our republic.

The republic — is the centre of chemical industry and mechanical engineering. Its predominant economic activity is fuel industry, chemistry and petro-chemistry, electric power industry, metallurgy, mechanical engineering, agriculture, timber processing, light and food industries. The region specializes in grains growing, meat and diary products. Horse breeding and poultry farming are developed also.

In 2007 the gross regional product of the republic made 645 billion roubles (more than 18 billion euro), the growth for 8 % in comparison with 2006. The gross regional product per capita made about 160 thousand roubles (4,5 thousand euro). The profitable part of the budget of Bashkiria for 2008 makes 79,1 billion rbl. (more than 2,2 billion euro), expenditure items — 84,1 billion rbl. (2, 4 billion euro).

The republic is the absolute leader in the country in oil raw materials processing. Here it is annually processed about 26 million tons of oil, 17 % of the all-Russian volume of automobile gasoline, 15 % — of diesel fuel. Issued mineral oil ­is competitive in­ the internal and external markets and corresponds to the quality standards «Euro-3» and «Euro-4». ­ Depth of oil raw materials processing reaches more than 80 % while the average Russian ­ indicator is 72 %.

The republic is ranked among Russian leaders on manufacture of metal-cutting machine tools, aviation engines; it takes the first place — on manufacture of high-discharge mixers, the third place — on production of trolley buses and helicopters,­ the fifth — on production of buses.

Bashkortostan actively carries out investment policy. Priority directions of investments are development of natural resources, upgrading of production facilities, especially in a petrochemical complex and conversion enterprises, ecological activity, introduction of high technologies in agriculture, development ­ of social infrastructure.

Using its internal funds, the republic provides additional, besides of the federal ones, measures for population social protection. Here priority directions are strengthening of public health services system and education system, construction of high quality roads, modern schools, hospitals, and sanatoria.

The region has a high investment rating, belonging to the subjects of Russia with the least investment risk. Having the powerful economic, scientific and technical potential Bashkortostan can carry out international and foreign economic relations independently.

The total amount of the involved foreign capital in the republican economy following the results of 2007 is estimated as about 650 million US dollars. Bashkortostan is included into the ten of the largest subjects of Russia on volume of the republican foreign trade turnover. The foreign trade turnover for January-November, 2007 made 6,8 billion dollars, including export for 6,0 billion dollars for the same period.

Bashkortostan supports foreign economic relations with 90 countries of the world. The largest trading partners traditionally are the Great Britain, Germany, the Czech Republic, the Netherlands, Kazakhstan, China, Liechtenstein, Italy, Finland, Uzbekistan and other countries.

Since 2002, Bashkortostan prepares for carrying on business activity in conditions of Russia’s joining the World Trade Organization. Within this period issues of increasing competitiveness of the economy, introducing the international standards on production quality, ecology, accounting and its transparency, training of enterprises personnel and state employees have been solved. Preparation for the WTO joining boosted the economy modernization, having mostly innovative features. For the present, republican enterprises are ready to the Russia’s accession to the World Trade Organization.

A final goal of proceeding market transformations is prosperity of people, therefore in the conditions of the economic growth of the last years the greater volume of investments is directed for the decision of social tasks.