Programme

The Russian Far East is a global leader in rough diamond production. The region contains 81% of the diamond deposits present in the Asia-Pacific region. However, nearly every rough diamond mined is exported and cut in another country. In 2016, the Eurasian Diamond Centre was opened in Vladivostok to provide infrastructure for launching new gem-cutting and jewellery manufacturing facilities. 2017 saw the launch of the first investment projects in diamond production and jewellery manufacturing. Alrosa has announced the start of a programme to provide financial assistance to diamond cutters. What are the factors that determine the global competitiveness of a location for attracting investment in diamond-cutting? How can the Russian Far East succeed in competing for investors in this sector? How will the programme of financial support for diamond cutters operate? What impact could eliminating duties and other financial restrictions have on Russian diamond-cutting enterprises and their investors? Could Russian diamonds as an international brand provide a competitive advantage for Russian diamond cutters?

Only 27% of proven coal reserves in the Russian Far East have been made available to investors. A full range of major coal extraction and enrichment projects has now been launched in the region. Having demonstrated resilience during a period of low prices, recovering Russian market players are starting to increase exports to countries in the Asia-Pacific region. However, there is a need to modernize railway networks and optimize transportation tariffs, which are creating bottlenecks within the sector. What unoccupied niches and viable projects in the Russian Far Eastern coal sector could be of interest to investors from the Asia-Pacific region? What are the prospects for coal exports in the Russian Far East? What do coal producers in the Russian Far East expect from modernization of the Baikal–Amur Mainline (BAM) and Trans-Siberian Railway? What is the potential for increasing the effectiveness of investment in coal extraction by developing logistics?

The Russian Far East is home to 51% of forest resources in the Asia-Pacific region. Of some 90 million cubic metres of timber available for processing, however, only 16 million cubic metres, or 18%, are harvested. Around 75% of timber is exported in the form of logs; only 25% is processed into lumber and plywood. As for waste and substandard timber, this is permanently lost. In 2016, Vnesheconombank announced the creation of a forestry cluster in the Russian Far East, and in 2017 a major Chinese investor declared their interest in constructing a pulp mill. In which regions of the Russian Far East would investment in forestry bring the most gain? How can a forestry cluster and a complete cycle of timber processing be established in the Russian Far East? What solutions must the government provide in order for this to be achieved? Could raising duties on log exports assist in the development of deep processing enterprises? What impact will the construction of a pulp mill have on the sector regionally?

Thirty percent of gold deposits in the Asia-Pacific region are located in the Russian Far East. More than 20% of proven reserves, or one thousand tonnes of gold, are held within an unallocated state fund, whereas more than 500 deposits require additional exploration and could be introduced into its investment turnover. What gold deposits and investment projects for gold extraction are in need of Russian and foreign investors? How can the government assist in establishing the infrastructure required for the development of new gold deposits? How can the introduction of small and medium-sized deposits into the turnover be accelerated? What financial, tax and administrative initiatives must be created to ensure the flow of capital into the projects of junior companies?

According to the estimates of scientists from the Russian National Scientific Centre of Marine Biology, more than 2 million hectares of the marine area of the Russian Far East are suitable for cultivating mariculture products which are especially valuable and sought-after on Asia-Pacific markets. Only 1% of this area is presently being made available to business for these purposes. In 2017, the Russian Government introduced new procedures for allocating marine areas in the Russian Far East to marine farmers. Marine plots will be created in response to applications from interested investors using a specialized online service, and assigned by electronic auction. It is planned that 100% of available marine plots will be provided for the use of business by 2020. The Russian Far East is also home to the world’s most extensive wild salmon natural spawning grounds. The scientific and business communities believe that more than 200 fish farms could be established in the region to breed various species of salmon. In which regions of the Seas of Japan and Okhotsk can marine aquaculture be developed? How is the online service used to establish marine plots for aquaculture? Could this mechanism be expanded to incorporate plots for salmon farming? What support measures is the government offering marine farmers?

There is growing consensus that substantive gender equality in the labour market is both a prerequisite for economic growth and a response to challenges posed by demographic changes in ageing societies, as well as mirrors new societal understanding of shared family responsibilities between men and women. However this consensus has not yet translated into substantial improvements in female participation in the labour market or in the quality of women's employment and earnings. Women as employees often are faced by significant disadvantages such as lower wages as compared to men, higher share in informal employment and lower-paid employment as well as working conditions discouraging reconciliation of work and family responsibilities. Some of these differences even remain when accounting for structural factors such as choice of education and occupation or differences in the level of employment. The session seeks to demonstrate how increasing female labour force participation can generate growth, stabilize communities and contribute to social innovation. Panelists are invited to share global experiences and views on ways to increase employability and competitiveness of women, promote women’s entrepreneurship and access to finance, close gender participation and pay gaps (including at corporate boards), improve the work-family-balance, develop skills to harness opportunities of digital economy and promote women’s leadership through entrepreneurship, education and economic empowerment.

27% of gas reserves and 17% of oil reserves in the Asia-Pacific region are concentrated in the Russian Far East, and the level of development of known oil and gas deposits is extremely low and does not exceed 12%. In 2016, 25.5 million tonnes of oil and 26.7 billion cubic metres of gas were extracted in the region, the majority of which was exported in its raw state. The state has expressed its interest in plans for the deep processing of hydrocarbons in the Russian Far East. A number of Russian companies have announced the launch of major projects relating to the chemical utilization of oil and gas in Russia, including the construction of the Amur Gas Processing Plant, the Amur Gas Chemical Complex, and the Far Eastern Petrochemical Complex. The appearance of such projects fulfils preconditions for the creation of full-scale gas- and petrochemical clusters, which will be able to accommodate dozens of processing facilities. What is the existing potential for the production and consumption of the products of gas- and petrochemical companies in Russia and the Asia-Pacific region? Is the Russian Far East a competitive location for the development of the gas and petrochemical industry? Are Gazprom and Rosneft well positioned to create full-scale chemical clusters in the Russian Far East? What gas and petrochemical facilities are the most attractive for localization in the Russian Far East from financial and market perspectives? How can the formation of new value chains in the Russian Far Eastern gas and petrochemical industry be initiated?

Thirty percent of the aquatic bioresource reserves of the Asia-Pacific region are concentrated in the Russian Far East. In 2017, the Russian Government launched a fishing quota mechanism, under which fisheries are obliged to build either new fishing vessels in Russian shipyards or new seafood processing plants. A tryout for investment projects has also been announced. At the start of 2018, the winners of the competition will be awarded long-term licences to fish the Russian Far East for more than 500,000 tonnes annually of the most in-demand seafood resources on the Asia-Pacific market. To launch new investment projects for the existing players and for the entrance of new investors it is vital to facilitate the growth of companies' value in the industry. Which aquatic bioresources will be represented under the investment obligations, and how can interested parties become participants in the investment project competition? In which Russian shipyards can the construction of new fishing vessels be ordered? Do these have sufficient capacity to satisfy fishing industry demand, and would it be forward-looking to build new shipyards? Where in the Russian Far East will the construction of seafood processing plants bring the greatest benefit? The economics of investment projects for seafood processing in the Russian Far East – what role will be played by the ASEZ programme and the Free Port?

Optimizing budget expenditure on major infrastructure projects in the Russian Far East is an important challenge facing both federal ministries and regional administrations. Public-private partnership (PPP) projects are already being implemented in eight out of the nine regions in the Far Eastern Federal District: 324 projects altogether, representing total private investment of RUB 57 billion. At the same time, the additional investment that needs to be attracted in order to develop and modernize public infrastructure in the Russian Far East is estimated in the hundreds of billions. According to a number of experts, available private capital for financing infrastructure projects is in the region of RUB 700 billion. However, investors often disregard PPP mechanisms due to a lack of well-structured projects. At the present time, only 15–20% of the total number of PPP projects initiated progress from the idea stage to implementation. This is linked first and foremost with a lack of preliminary planning, which requires considerable labour and financial resources. As a result, promising projects which have enormous significance for their local regions and are potentially interesting to investors never make it off the page. Which regions in the Far Eastern Federal District are ‘open’ to private investment in PPP projects? Who has created the right conditions for projects to be launched? In which regions are the most effective measures for stimulating investment being applied? What are the barriers to attracting private investment into regional infrastructure?

Every year more than 170 million tourists from China, Japan, and South Korea travel abroad, where they spend more than USD 250 billion collectively. The Russian Far East possesses a unique selection of recreational resources capable of attracting a significant part of the tourist flow from the Asia-Pacific region. In order to support investment in tourism, advanced special economic zones have been created, an electronic visa was introduced in 2017 for citizens from 18 Asia-Pacific countries and the Middle East entering the Free Port of Vladivostok, entrance to Russian Far Eastern harbours has been significantly simplified for foreign cruise vessels, and special tax incentives have been introduced for tourism organizations operating in the macroregion. Investing in hotel and recreational infrastructure in the Russian Far East – where is there the greatest demand and where are the best economic prospects? How do investor support mechanisms in the tourism sector of the Russian Far East operate? What further steps can the government take to develop incoming and domestic tourism?

Neighbouring leading Asia-Pacific countries, the Russian Far East has the opportunity to be first among Russian regions in attracting and adopting new technological solutions, developing digital skills, and laying a foundation for Russia’s future development. In order to succeed, public and private sector companies will need to join forces. Which are some of the sectors where a digital cluster in the Russian Far East could be competitive, what partners are needed to create it, and how can they be attracted? What experience acquired by its ‘eastern neighbours’ – China and Japan – would be of most benefit to the Russian Far East? What can the government do to make accessible and good-quality electronic services available to the population and to increase the effectiveness of the work of governmental bodies? What steps should be taken to complete the last mile to the consumer, develop e-learning platforms, and improve access to digital healthcare systems?

Russky Island, which throughout its history has been an impregnable fortress protecting Russia’s eastern shores, is becoming a symbol of Russia’s openness to neighbourly and mutually beneficial relationships with the countries of the Asia-Pacific region. In 2017 the Russian Government adopted a programme for the development of Russky Island as a centre for international collaboration and cutting-edge technologies in the Asia-Pacific region. The island will become the location of an exhibition and convention centre, a new university city, a techno-innovation park, a centre for nuclear medicine, a centre for shipbuilding engineering, a centre for the export of electricity, and a biotechnopark. What investment projects could be implemented on Russky Island? What plans for projects on the island which have already been announced by investors require government support? What conditions should the government create on the island in order to attract investment from cutting-edge technology companies?

The successful development of small business community ensures sustainable economic growth. Much is being said about the need to support small businesses, yet its share in the gross value added amounts to around 20%. This means that since the adoption of the Federal Law No 209-FZ ‘On the Development of Small and Medium Business in Russia’ there has been no significant growth of this segment. In line with the 2030 SME Development Strategy, 2018 should be designated a Year of Entrepreneurship in Russia. What is to be done to achieve a meaningful result, in the Far East as well as elsewhere in Russia? What do entrepreneurs expect from federal and regional authorities, large companies and banks? How to make small-scale entrepreneurship more popular?

Russia’s national park network is celebrating its 100th anniversary this year. Specially protected natural areas (SPNAs) are an effective means of preserving Russia’s unique biodiversity. At the federal level, 103 state nature reserves, 51 national parks, and 58 state wildlife reserves are classified as SPNAs. According to Russia’s Ministry of Natural Resources, nine new nature reserves, 12 national parks, and two federal wildlife reserves will be created by 2020. The largest SPNAs in Russia’s Far East are the Lazovsky, Sikhote-Alinsky, Komandorsky, Kronotsky, and Kedrovaya Pad nature reserves and the Beringiya and Zov Tigra national parks. These protected sites are intended to serve conservational, educational, scientific, and cultural goals. Ecotourism has been experiencing rapid growth in recent years, but there are a number of issues in this area that require special attention. Are we willing to open Russia’s national park network up to business and tourism? How can we make tourism accessible in SPNAs? What risks do protected sites face if tourist numbers increase? Public–private partnership: what steps does business expect the government to take in order to spark more active involvement in these projects? Cross-border areas in the Russian Far East: intergovernmental cooperation mechanisms to protect ecosystems and rare species. International cooperation: what useful lessons can be learned from the experience of countries in the Asia-Pacific region (Mongolia, India, Thailand) to help develop SPNAs in Russia’s Far East? How can foreign tourists be attracted to SPNAs in Russia’s Far East?

The Russian Far East is located closer than any other region of the country to the largest and fastest growing market of the Asia-Pacific region, which has a population 20 times the size of Russia’s and 470 times larger than that of the macroregion. The Asia-Pacific Region is home to a rapidly growing middle class, which is the source of an enormous demand for quality and environmentally friendly food products. With its unique geographical location and environment, the Russian Far East could become one of the key suppliers of foodstuffs to the Asia-Pacific region. What trends are there in the demand for food products in the Asia-Pacific region from a medium and a long-term perspective? What food products for the Asia-Pacific region could be produced the most advantageously in the Russian Far East? How can lobbying opportunities be secured for Russian agricultural producers in the Asia-Pacific region? What steps must be taken at a government level to transform the Russian Far East into a key supplier to the highly competitive Asia-Pacific foodstuffs market?

The 5.6 thousand miles of the Russian Far Eastern coastline are home to 32 trade and fishing seaports, as well as 300 small ports and port facilities. Together, these account for approximately 35% of all cargo turnover through Russian seaports. However, technical standards at seaports in the Russian Far East do not conform to modern requirements. Only 19% of the total quayside length of these ports is equipped with specialized mooring installations, and only 23% of them have a depth of more than 11 metres. The degree of wear and tear on the majority of mooring installations exceeds 70%. The majority of these facilities remain in state ownership. Amendments to legislation have already been prepared which will make it possible to transfer mooring installations in Russian Far Eastern ports into private ownership. What plans exist for the development of major marine harbours in the Russian Far East? Which ports in the Russian Far East offer the most interesting investment opportunities? What impact will the transfer of quayside installations into private ownership have on the investment attractiveness of Russian Far Eastern ports? How will this mechanism operate? What economic impact have new customs clearance regulations in the Free Port of Vladivostok had on seaports? What further steps should be taken by the government to increase cargo turnover in Russian Far Eastern ports?

At the plenary session of the Eastern Economic Forum (EEF) on 3 September 2016, the Russian President stated that Russia’s Far Eastern regions should be taken as a case study of best practice in the work of business support institutions. The session will include a presentation of best practices used in the Business Agent project, and an overview of the results of the ‘mystery shopper’ operation run by the non-profit organization Leaders’ Club, aimed at assessing the quality of the efforts undertaken by institutions in the Russian Far East to attract investment and support business, and evaluating existing development zones. The discussion will focus on problems encountered by Russian and foreign investors in Russia’s Far Eastern regions. Are the Far Eastern regions ready to welcome investors? What are the most effective tools for attracting investors to the Russian Far East?