This chapter presents all basic political, economic, and demographic data on a territorial unit of the Russian Federation, Republic of Bashkortostan. The Bashkortostan has one of the highest concentrations of chemical, petrochemical, and military industries in the Russian Federation. Bashkortostan President Murtaza Rakhimov handily won reelection on 14 June 1998. In the fall of 1997 he had announced that he would not run for reelection, but would allow the republic’s youth to take the reins of the administration. Bashkortostan’s agreement gave the republic exclusive rights over its property and mineral resources, special privileges regarding foreign trade, and an independent system of legislative and legal institutions. Bashkortostan has rather extensive foreign economic relations. Germany is the republic’s primary trading partner and is also involved in 20 joint venture projects in the region.