The ratings on the Russian Republic of Bashkortostan are constrained by the republic's low budget predictability and limited flexibility, owing to federal controls; the economy's concentration in the oil-processing industry; long-term expenditure pressures; and low wealth in an international context. In our view, Bashkortostan's low debt, strong liquidity, and prudent financial policies mitigate these constraints. The predictability of Bashkortostan's financial position remains constrained by federal controls over revenues and expenditures and the evolving nature of interbudgetary relations. Furthermore, the major tax contributors to the regional budget are concentrated in the oil and oil-processing industry. The few largest oil-related taxpayers (and their subsidiaries) contributed about 20% of Bashkortostan's consolidated budget tax revenues in 2010, leaving the republic exposed to the policies...
Companies mentioned in this report are: Bashkortostan (Republic of)
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