8 September 2022

The Unique Kurils: Investment Opportunities

KEY CONCLUSIONS

Tourism is key to the development of the Kuril economy

“This location [the Kuril Islands – Ed.] is attractive for many. It is a dream for hundreds of thousands of people living in the Russian Federation and abroad. But they are very hard to reach. <...> For investors, they are also difficult to reach. But there are no problems you cannot solve – we have already seen this exemplified by the rest of the Far East. <...> [The Kuril Islands could develop – Ed.] gastronomy and ecotourism, and besides, it is possible to develop fish processing and fishing, waste processing, which is absolutely unnecessary there,” Nikolay Zapryagaev, General Director, Corporation for the Development of the Far East and the Arctic.

“Tourism definitely should be one of primary employers but it yet is not,” Elena Lysenkova, Deputy Head, Federal Agency for Tourism (Rosturizm).

“As for investments: most of it went into tourism, which is probably right. It will only be possible to invest in the Kurils and develop anything with the help of [preferential – Ed.] regimes – and only tourism will work. Other activities – fishing, fish processing, exporting products – are dense, tight, the "admission ticket" to the industry is extremely expensive, so nothing new will happen there,” Konstantin Korobkov, Chief Executive Officer, “Yuzhno-Kyrilsky Fish Factory” LTD (YKRK).

“We realized what makes the Kuril Islands so unique: you can visit them for four or five days and see all [the natural sights – Ed.] In Kamchatka or Sakhalin it would take several weeks. We believe that the Kuril Islands have huge potential, they fit into our philosophy and our concept,” Aleksandr Tertychnyy, General Director, Anterra.

 

PROBLEMS

High cost of travel to the Kurils and lack of tourist infrastructure

 

“In order for this dream [to visit the Kurils – Ed.] to come true it has to be attainable. Visiting Kurils, staying there, getting around – it should cost realistic amounts of money people are able to pay,” Elena Martynova, Deputy Head, The Federal Service for State Registration, Cadastre and Cartography (Rosreestr).

“Nature does not always allow us to take full advantage of all the possibilities of the territory, even if we flew several thousand kilometers. <...> At the same time, it can be noted that traveling to the Kurils is expensive for many. <...> The territory has no hotel infrastructure [at all – Ed.] Particularly missing are hotels with a unique thermal component. Those are a must for a territory where the land itself is bubbling and breathing, where it lures tourists with its possibilities and its beauty,” Elena Lysenkova, Deputy Head, Federal Agency for Tourism (Rosturizm).

“Lack of hotel rooms, lack of eateries in the Kuril Islands: this should also be taken into account. <...> We should not forget that 10–12 years ago the Kuril Islands were the border zone. Partially this regime was loosened. <...> Still, the lack of a pass can lead to a conflict with the border patrol, which happens from time to time,” Konstantin Korobkov, Chief Executive Officer, “Yuzhno-Kyrilsky Fish Factory” LTD (YKRK).

 

SOLUTIONS

Increasing the number of sea routes, creation of new ports, and state support for investors

“In order for the investment or operational phase of the project to start, you first need to bring people to the Kuril Islands. You need to buy equipment, start construction, choose a land plot, and so on. <...> As for logistics, especially sea logistics [it is necessary to increase. – Ed.] the number of voyages, the number of ports. Sea logistics near and in the basin of the Kuril Islands is quite complicated. We need synergy of business and state instruments,” Nikolay Zapryagaev, General Director, Corporation for the Development of the Far East and the Arctic.

“Investment in hotels requires additional resources, because tourism is the most man-intensive industry. <...> Rostourism is working on support measures for investors,” Elena Lysenkova, Deputy Head, Federal Agency for Tourism (Rosturizm).

“Rosreestr creates a tool to make this land [the Kuril Islands – Ed.] work, and stories about how beautiful this land is were not limited to just pretty clips. Because the land needs to be sold and bought,” Elena Martynova, Deputy Head, The Federal Service for State Registration, Cadastre and Cartography (Rosreestr).

 

For more information, visit the Roscongress Foundation’s Information and Analytical System roscongress.org.

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