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Rustem Khamitov: Ufa and Bashkortostan are ready to host summits (the interview to RBC TV channel)

On 9th of June Mr. Khamitov, the Head of the Bashkortostan, has answered the questions of Leonid Davidov, the presenter of “Davidov.Index”, in a live television broadcast of RBC TV.


Mr. Davidov: Hello! The RBC TV and Leonid Davidov are on air. As usual on Tuesdays we cover the issues about regions, welcome their leaders and discuss problems with them. Today our guest is Rustem Khamitov, the Head of the Republic of Bashkortostan. Mr. Khamitov, thank you very much for coming.

Mr.Khamitov: Hello!

Mr. Davidov: Recently we start our teleview with communication with social nets. Today I have tried to collect all the information, because the main questions for the moment are people’s infrastructure impression. What can you say to our audience?

Mr.Khamitov: Do you mean roads by infrastructure?

Mr. Davidov: Perhaps, roads in the first instance.

Mr.Khamitov: It is an everlasting theme. Another matter is that nowadays we work harder as other regions of the Russian Federation to fulfill the President’s assignment considering doubling of Roadway Network and its up-keep. We have succeeded in some spheres but in another we haven’t.  We have a breakthrough in quality. On the other hand, we keep on dealing with resistance of roadworkers who sometimes build defective roadways, use low-quality materials which infringe technology.

Mr. Davidov: Are you to control them?

Mr.Khamitov: We have services which control them, although about 2-3 years ago they were absent. Now we renew all these labs. We control what asphalt, special clothes and etc are made of. This task is very important, difficult and can’t be solved at once. But I hope that the major part of Road Net will be rebuilt by 2018-2019.

Mr. Davidov: For this goal investments should be attracted. Except for Federal Road Fund have you any other investors?

Mr.Khamitov: First of all, it is Federal Road Fund. In our republic it amount to 11,5 billion rubles.  In the beginning of 2010 the sum was much less, 2-4 billion rubles. Nowadays it comes to more than 11 billion. Whole sum is spent to road building, its renew, up-keep and repair. To be frank, it is great andtroublesome work. Moreover, we try to attract non-budget resources, for instance, we would like to use possibilities of such companies as “Bashneft” especially in oil producing municipalities.

Mr. Davidov: Yes, the Republic receives the block of shares, is it so?

Mr.Khamitov: Yes, it is, the decision is already reached. Its formalization is in progress now.

Mr. Davidov: Will you take part in administration or will you be a dormant shareholder who receives dividends?

Mr.Khamitov: Two representatives from our republic are in the court of directors. They have already started working. By the way, one of them is the head of Finance Committee of the company. I can say that we will cooperate with Bashneft. Previously we cooperated too, but now this work will be closer and more productive and also directed to construction of new manufactures, investments attraction, rendering assistance and support in social sphere in oil refining municipalities. We have about 20-25 municipalities which are included in Bashneft sphere of influence.

Mr. Davidov: Do these municipalities produce and refine oil?

Mr.Khamitov: Oil is produced there, but refined in Ufa. 20-25 our municipalities produce it. There are 2 gas processing plants in our municipalities. In other words, Bashneft sphere of influence is quite big and we would like it to influence our republic’s social spheres, too. Of course, Bashneft helps in sports events, maintain different teams and that is also social issues.

Mr. Davidov: We will renew this subject later, Mr. Khamitov. Another guest of our “Ararat Park Khayatt” studio today is Konstantin Kostin, the Head of the Fund of civil society development. Mr. Kostin, do you hear us?

Mr. Kostin: Yes, I do. Hello!

Mr. Davidov: Thank you for joining us. Today an important event has happened: the 9th rating of effectiveness of governors has come out. Tell us please in details about that, because, as far as I know, here we have the representative of the first group of this rating.

Mr. Kostin: I would like to tell about the rating itself in brief. This is the first time during the researches when the fourth group, which included governors with low effectiveness measure, was out of need.  So we can talk about effectiveness of Federal Centre Policy, aimed on rotation andsubstitution of heads of subjects whose anti-rating measures are lower than trust measures and those activities was not estimated by the society. Also, this issue is connected with introduction of different mechanisms of social control in the work of subject's administrations. It helped to raise rating measures of 3 subjects which earlier were in 4th group; and I congratulate subject’s administration. We also have 2 new subjects: Crimea reunited with Russia, and Sevastopol city. And they had good positions at once: Republic Crimea administration entered the 1st group and Sevastopol administration entered the 2nd one. Thatsaboutthemainresults.

Mr. Davidov: Can you say a few words about Bashkortostan?

Mr. Kostin: In a few words, according the rating history of the republic and its Head, I can say that Mr. Khamitov started from the 2nd group. He was at the top position last year in final rating. Since this year he crossed the border in 8th outcome and now he is among other Heads with very high effectiveness level. That is the result of some circumstances. First is the fact that republic will get the stock of Bashneft shares, because the oil production and refining have a sensible percent in republic industrial construction share. It also has to be mentioned that the region took effective antirecessionary measures and anti-crisis effectiveness was presented. This is the case ofprice control, control of unemployment, business stimulation. That is why in the last 9th rating Mr.Khamitov has kept his 22nd position and appreciably increased his points. In our rating to keep your position you should improve your work constantly. To be at a stop you should run, to go upwards you should runin double-quick time. We estimate the situation in the region as stable and trust and estimation to its Head as very high one.

Mr. Davidov: Thank you, Mr.Kostin. It was Konstantin Kostin, the Head of the Fund of civil society development. No less than complimentary point of view of the expert.

Mr.Khamitov: Thank you very much. I want to add that our confident positions in ratings are the results of the work of the Republic in whole, not only mine. Our nation is hard-working as well as in crisis situations. That’s true. And I always say that even if crisis affects our republic it happens only after all the others. Diversified economy…

Mr. Davidov: Let’s get down to holidays.

Mr.Khamitov:… on the other hand we are preparing for holidays.

Mr. Davidov: They will take place in one month exactly, won’t they?

Mr.Khamitov: On 8th of July the summits of BRICS countries and the Heads of SCO countries will start. Of course, this is a global event.

Mr. Davidov: Can you say that you are ready?

Mr.Khamitov: Absolutely, Ufa is preparing, the Republic is preparing. Today organization committee of summits preparation has taken place in Moscow. I was asked to speak. And I said: “I will be brief: Ufa and Bashkortostan are ready to host summits.” I interpreted it later that today we had modern airfield structure. The works we planned considering the meeting guests in airport are finished. We built new international terminal in the airport. It is already working and guests of the republic use it. The road infrastructure is also renovated. Moreover, Confress-Hall, the revenue for summits, was renovated. It was built 7-8 years ago, but weren’t used in compliance with its power. Today, it is modernized and turned into the holding centre for summits, forums and other great events.

Mr. Davidov: What other infrastructure innovations has been made? What will be left to people?

Mr.Khamitov: Everything we have done will be left for people. We renovated the Opera and Ballet Theater. We created new concert acoustic hall. We built the Nesterov museum storage; after all, Nesterov museum huddled in a small building. Nesterov was born in Ufa and.

Mr. Davidov: So, these are places which guests of the summits will visit?

Mr.Khamitov: The guests will be everywhere. They will see everything. Of course, these are new objects for the Republic.Besides that Ufa became better and nicer and not only Ufa.  Sterlitamak, Salavat, Uchali and Sibai have made their outlook better. All our towns have good appearance.

Mr. Davidov: And what about investments? Did private business take an interest in summit preparation? Was there anything besides government grants and public finance?

Mr.Khamitov: We are to thank private traders, as they built hotels. 7 newhotelsareputinuse.

Mr. Davidov: All 7 hotels were built by private sector?

Mr.Khamitov: These funds are private. These are our republican businessmen. In sum they channeled about 10 billion rubles for these facilities. Of course, we helped them with legalization of documentation, there were no barriers.

Mr. Davidov: Is that new facilities?

Mr.Khamitov: Yes, it is. Only one hotel was reconstructed: new bulk was attached to the main building. The rest ones are green field. It is absolutely new hotels which have been put in use not so long ago.

Mr. Davidov: Were they built in habitable area?

Mr.Khamitov: In the centre of Ufa exactly. Frankly speaking, of course, it is breakthrough for our city in that now Ufa and Bashkortostan are able to hold events of different level and standard.

Mr. Davidov: Hotel room capacity wasn’t enough?

Mr.Khamitov: Undoubtedly. Now there are Sheraton, Hilton and Holiday Inn. There is a whole line of famous brands. Ufa entered the list of the cities of the Russian Federation which can host the largest events. Believe, there are not so many cities which can do that. I think, not more than 5.

Mr. Davidov: Taking in account that fact that inner tourism has a rapid growth?

Mr.Khamitov: We work upon that, of course. But the inner tourist sometimes needs something simpler or, perhaps, to spend time outside. It is a separate matter. But, speaking aboutbusiness communication, we are ready to host all of these events on the highest level. We have forums, hotels, infrastructure and transport, in other words, everything that can be necessary to work on the highest, qualified level.

Of course, we also look ahead in the context of use of this infrastructure. I can say that after SCO and BRICS summits Ufa will host the “Russia-Kazakhstan” forum headed by the presidents of Russia and Kazakhstan in September - October. Besides, the heads of our and Kazakhstan regions will come to Ufa. This is a huge event, too. The number of participants is a few hundreds of people. We are preparing for this event; the organization committee is already created.

Mr. Davidov: I have heard about some other region ideas.

Mr.Khamitov: In October we will host inter-region summit of SCO and BRICS countries. It means that the representatives of regional structures will take part. Governors, heads of provinces, states and etc will come to us. Each of them will bring representative delegation consisting of members of small and medium business. Our goal is to introduce small business, to connect its efforts to create mutual platform for communication of experience and ideas.

Mr. Davidov: So, you want to “bring it down to land” to make it a standing structure?

Mr.Khamitov: We want to use this format in future. And we succeed in it. All society supported us: interpreters, republicans in the country, CCI and other noncommercial associations. The All Russia Public Organization “Delovaya Rossiya” (Business Russia) will also take part. Moreover, our partners from SCO and BRICS countries want to try this format.

Mr. Davidov: We do not quite understand, how effective will it be?

Mr.Khamitov: The point is that there is a good cooperation between the heads of the governments, good cooperation at a level of heads of big companies. But small and medium businesses often don’t even know about existence of each other. Despite the fact, there are many of them, they don’t see each other. These informational flows should be structured. They have to meet and be told about each other. It is not a secret that we know only few cities in China, India,Pakistan. The same thing is with our foreign friends. They don’t know Russian remote places very well. So the work potential is rather huge. We could create a platform for such cooperation and it would be right from all points of view. In other words, these small business-structures, entrepreneurs would strengthen global projects existing under SCO and BRICS.

Mr. Davidov: It looks like capillarity. And the hotels would be in full use.

Mr.Khamitov: You know, there is no problem in hotel occupancy. I have read recently: “What will happen with the hotels after summits?” They will work. First, hotels are not perishable products. Second, hotels are always long-perspective oriented from the point of payout. 10 years minimum, and usually even 15-20 years.

Mr. Davidov: Did city infrastructure get any profits from this?

Mr.Khamitov: We rebuilt considerable quantity of roads. Of course we have taken not all the areas of the city, but we need just couple of years of such intensive work to cover all of them. It is not ostentation. It is a priority for us to act consistently and rebuilt everything which is in need of it.

Then, not only Ufa, but the entire Republic should feel the effect that we host such important international events.

As Ufa has appeared on political world map, an interest from investors will also appear. We will take important guests during SCO and BRICS summits. Each country will bring business delegation headed by large businessmen.

Mr. Davidov: Mr. Khamitov, I am told that out time is out.

Mr.Khamitov: And I would like to keep on and on about that.

Mr. Davidov: Thank you for coming.

Mr.Khamitov: Thanks.

Mr. Davidov: Here was our guest Mr Khamitov, the Head of the Republic of Bashkortostan. We have talked about SCO. We are waiting for SCO and BRICS summits in a month, and the further life in the Republic will be better.

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