Republic of Mordovia

General information about the Republic of Mordovia

The Republic of Mordovia is a constituent entity of the Russian Federation. It is located in the centre of the European part of Russia. It borders with Ryazanskaya oblast, Nizhegorodskaya oblast, Ulyanovskaya oblast, Penzenskaya oblast and the Chuvash Republic. Approximately 40 million people live within the 500 km radius from the capital – Saransk.

Territorial subdivision: the republic comprises 22 municipal districts (17 urban and 375 rural settlements), 1 urban district of Saransk, 6 towns (Ruzayevka, Kovylkino, Krasnoslobodsk, Ardatov, Temnikov, Insar).

Territory: 26.1 thousand sq. km.

Main natural resources: Among natural resources deposits of construction materials are of the utmost importance. The republic possesses the largest deposits of marly-cretaceous mining and gaize used for production of high quality cement (known reserves exceed 360 mln. cu. m.).

A spacious deposit of diatomite has been discovered (total reserves are estimated by 7 mln. cu. m.).

There are deposits of sands, clay, black fumed oak, peat (500 known deposits of peat of the total area of 9.2 thousand ha with the reserves of 28.7 mln. tons).

The Republic of Mordovia possesses significant forest raw-material resources. The stock of wood makes 110.5 mln. cu. m., including 27.5 mln. cu. m. of exploitable and declining wood.

Administrative centre: Saransk.

Largest towns: Saransk, Ruzayevka, Kovylkino, Krasnoslobodsk, Ardatov.

Perspectives for the development of the region:

The republic is distinguished by quality roads and communication, large railway junction, airport, wide network of financial and insurance companies, developed social infrastructure, large number of high-level sports facilities for different sports. The territory of the republic is fully gasified and has 100% coverage by digital television broadcasting. Comfortable conditions for living and business-operating are created. The republic is rich with cultural traditions. Leading Russian experts consider local capabilities in stimulating investment activity to be ones of the best. It determines modern industrial image of Mordovia and promotes realization of perspective science-intensive projects.

The largest higher educational institution in the republic – Mordovia State University (30 thousand students, 72 specialties) – is given a category “National research university”. Over 40 thousand people are occupied in the sphere of science and education. There are 500 students for every 10 thousand residents.

Industry plays leading role in the economy of Mordovia. Almost 90% of the industrial production is manufacturing activity of multiple types.

Active modernization and development of production are strategic directions of economic policy in the republic.

Federal technopark in the sphere of high technologies is at the final stage of construction. Technopark will create new possibilities for developing highly efficient productions, providing their scientific and research support, including energy-saving optical, electronic, information technologies.

Close cooperation is established with the following federal development institutions: OJSC “Rusnano”, Vnesheconombank, Investment Fund of the Russian Federation, Russian Venture Company, etc.

Package of documents is being prepared in order to establish Special economic zone of industrial production type in the Republic of Mordovia. Its potential residents are being attracted.

Web resources about the Republic of Mordovia (in English):

Ministry of economics of the Republic of Mordovia –

http://mineco.e-mordovia.ru/en/

Business-catalogue of the Republic of Mordovia –

http://catalogue.mordovia-business.ru/en/index.php

Investment passport of the Republic of Mordovia –

http://rmeconomics.e-mordovia.ru/eng/default.htm

Preferences for foreign investors

The rights of the investors are guaranteed by Law of the Republic of Mordovia “On state support of the investment activity in the Republic of Mordovia”. Regulatory and legal framework provides investors with maximum possible privileges and preferences:

1. Providing tax privileges:

reduction of profit tax rate paid to the republican budget of the Republic of Mordovia down to 13.5 %;

exemption from property tax and land tax (competence of local self-government bodies);

2. Granting subsidies:

to partially compensate interest for using credits from Russian credit organisations, if received credits are used to finance investment projects;

to partially compensate leasing payments by contracts, signed with Russian leasing companies;

3. Providing state guarantees in different forms (pawning of state property; state guarantees of the Republic of Mordovia; guarantees and/or loans).

Besides tax privileges and other preferences for realization of investment projects, investors can get assistance in allocating and/or reserving necessary land plots with infrastructure. Government Committee dealing with problematic issues of investors is organized to break down administrative barriers and resolve conflicts between state authorities and investors.

A number of large investment projects are realized in the republic.

Large investment projects.

Ministry of economics Republic of Mordovia

http://mineco.e-mordovia.ru/

mineco@e-mordovia.ru , msrm@inbox.ru