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Czech firms sign two contracts worth EUR130m in Tatarstan

Kazan, Russia - Czech firms signed two contracts worth a total of EUR130m (roughly Kc3.7bn) in the Russian region of Tatarstan today in the presence of Czech President Vaclav Klaus and his Tatarstan counterpart Mintimer Shaimiev.

At the Czech-Tatarstan Business Forum, both presidents appreciated the dynamic development of mutual business and economic cooperation and said there should be further intensive contacts.

"The interesting thing about Tatarstan is that it is one of the richest Russian regions. It has oil and gas deposits and is also important from the industrial point of view. There are car makers and the aviation industry here. The living standard is the third highest behind Moscow and St Petersburg and the purchasing power is also good here," Czech Industry and Trade Minister Martin Riman told CTK.

He added there was a lot to improve in mutual trade in goods, as the turnover with Tatarstan was $360m, compared with $7.5bn with Russia.

At the business forum, attended by some hundred representatives of Czech companies, a framework contract was signed between CKD Nove energo and Tatarstan's oil company Tatneft on a project to build a co-generation unit worth EUR45m.

Czech bank Komercni banka and the Kazan town hall signed a EUR85m contract to build a hospital. These contracts are not as fundamental as those signed in Moscow where Czech companies agreed on contracts worth roughly EUR1bn, Riman said.

However, the expansion of Czech firms in Tatarstan continues, said Riman, adding there were opportunities in modernisation of pharmaceutical plants and in bus supplies, for instance.

On his visit to Russia ending today, Klaus is accompanied by Finance Minister Miroslav Kalousek and Industry Minister Martin Riman, lower house deputy chairwoman Miroslava Nemcova and Senate deputy chairman Jiri Sneberger, many deputy ministers and about hundred entrepreneurs.


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