The Bashkortostan Republic is a highly developed stable region of Russia with a socially oriented market economy. Among the majority of the Russian Federation subjects the republic's economy is distinguished by its diversified structure, by its powerful industrial potential, well-developed agriculture, abundant natural resources. The republic contributes considerably into the federal budget and into economic development of the country.
Bashkortostan is included in Top 10 of the Russian Federation regions in terms of Gross Regional Product.
The Bashkortostan Republic possesses a highly developed fuel-and-power production complex including a number of the Russian Federation's largest oil production and oil refining enterprises, chemical and petrochemical production units, energy-generation, oil, oil products and gas transportation units. Bashkortostan ranks first in Russia in terms of oil refining capacity and of light oil products production, refining every eighth ton of Russian crude oil and producing every fifth ton of automobile petrol and every sixth ton of diesel fuel.
The cumulative capacities of oil processing of Bashkortostan refineries make 60 mill. ton per year. The oil refinery depth reaches 80%. Various types of petrol, kerosene, diesel mineral oils, coke, bitumen and black oil are produced at oil-refining plants of the republic. The oil products meet world standards in terms of environmental safety.
Bashkortostan is a large center of chemical and petrochemical industry. The Republic is an all-Russia's leader in the production of certain products ranking first in the production of synthetic resin and plastics, soda ash, butyl and isobutyl alcohol, ranking top three in caustic soda and plants protection chemicals production, top four in polyethylene and synthetic rubber production amongst Russian regions. The majority of large and medium-size enterprises support oil and gas extracting and refining industries, chemical and petrochemical, mining industries. Electrical engineering and instrument making are highly developed. Manufacture of aviation engines is established and is being constantly improved. The republic is one of the three leaders amongst Russia's subjects in trolleybuses and helicopters manufacture and ranks top five in buses manufacture.
Bashkortostan has favorable conditions for the development of ferrous metallurgy. The enterprises of this branch produce steel, cast iron, rolled products of ferrous metals, hardware, steel ropes.
Non-ferrous metallurgy is represented by enterprises for the production and dressing of cop-per-pyrite ores and gold.
Highly advanced in the republic are pharmaceutical, light, forestry and wood processing industries (plywood, wood fiber slabs and wood laminate, matches, cardboard). Food-processing industry complex comprises over a thousand factories and production units. It includes major sugar production units, a number of meat, milk packing factories, meat and milk canneries as well as bakeries, groats, macaroni, bear, alcoholic and non-alcoholic beverages, mineral water etc. manufacturing plants. The alcoholic production and the unique Bashkir honey are well known both in the republic and outside it. Bashkir honey is a visiting card of the republic. Beside all kinds of honey packing a lot of baked goods and confectionery with the addition of this product are manufactured, honey-containing medications, cosmetics and other products start to be manufactured.
Bashkortostan is a major agricultural region of the country, in terms of agricultural products output the republic keeps being included in top three among the regions of the Russian Federation. Occupying 3.7 % of farming lands and 3.2 % of plowed fields the republic produces 4 % of gross agricultural product of the Russian Federation.
Among the regions of Russia Bashkortostan is notable for having a well-developed, effectively operating banking system. In terms of the total number of bank offices the republic ranks top six and in terms of bank assets – top eight in the Russian Federation. Trade branch of the Bashkortostan Republic is represented by 20 thousand enterprises of wholesale, retail sale and catering, and by more than 55 thousand private businessmen. As regards the amount of retail turnover Bashkortostan is among top ten regions of Russia.
About 15 % of economically-active population of the republic are engaged in the sphere of small businesses. Most of them are involved in trade and catering, construction and other industries.
The economic stability and favorable investment climate of Bashkortostan have made it attractive for foreign investors and domestic capital. The investment attractiveness of the republic is confirmed by a constant growth of its credit ratings that are annually assessed by "Standard & Poor's Ratings Group" and "Moody's Investors Service Limited" international rating agencies.