Investment Agreements Worth 3.5 Trillion Roubles to Be Signed at the Eastern Economic Forum 2018

24 April 2018

Investment Agreements Worth 3.5 Trillion Roubles to Be Signed at the Eastern Economic Forum 2018

A round table of experts 'Investment Growth in the Far East in 2017 was 17.1%. How did we do it and what’s next?' took place in Moscow on 24 April in the run-up to the 4^th Eastern Economic Forum. Representatives from the Ministry for the Development of the Russian Far East, institutes for the Far East development and business community discussed investment prospects of the region as well as improved mechanisms for attracting new investors.

In 2017, the Russian Far East became the leading region in private investment. The investment growth reached 17.1%, while the average growth across Russia is 4.4%. More than half of these investments come from residents of advanced development territories and the Free Port of Vladivostok. According to round table speakers, this breakthrough was achieved with private rather than public investment.

The speakers highlighted the adoption of 30 new special laws and over 160 government orders since 2013, when the new Far East economic development policy was launched. The new legislation helped create a competitive environment for entrepreneurship in the region. These instruments have boosted investment, bringing the number of current projects to over 1,280, worth a total of over 3.8 trillion roubles in private investment. These projects will also help create around 123,000 new jobs. Residents of territories of advanced development and the Free Port of Vladivostok have registered 108 new enterprises, with a total worth of 123 billion roubles. 200 more enterprises are expected to start operating before the end of this year.

The competitive environment of the Far East is constantly changing, and instruments for development are being improved. New regulatory mechanisms will be presented at the 4^th Eastern Economic Forum, which will take place on 11–13 September in Vladivostok.

"The main idea of EEF 2018 is ‘industries of the future’; they will provide economic growth for the region in the next 5–6 years. Among them is oil & gas, extracting industries, agriculture, aquaculture, forestry and tourism. Development roadmaps will be presented for each of these sectors. We expect to hear ideas on improving preferential tax conditions and loans and issuing long-term visas for foreign residents. We also look forward to the presentation of the Far Eastern financial centre and investor e-profile. The traditional business dialogue with Asia-Pacific countries is expanded to include entrepreneurs from Europe, India, Vietnam and South Africa. At EEF 2018 we hope to sign new agreements to achieve a record volume of investment, around 3.5 trillion roubles," says Alexander Krutikov, Deputy Minister for the Development of the Russian Far East.

Director of the Far East Investment and Export Agency Leonid Petukhov noted that the agency’s investment portfolio currently numbers over 1,000 investment projects.

"The Agency has branch offices in China, Japan, South Korea and India. Our projects have drawn the interest of European investors, and we have decided to open a new office in Vienna," Leonid Petukhov says.

Business community representatives discussed how the new development instruments influence investment projects in the Far East.

"A new concentrating plant 'Denisovskaya' will be launched on advanced development territory ‘Yuzhnaya Yakutia’ on 26 April. The coke coal plant was built in only 10.5 months. We have so far invested 23 billion roubles in different projects in the Far East. By 2021, total investment will amount to over 110 billion roubles. New normative regulations adopted in the region facilitate the completion of such major projects in very short timeframes," says Anna Tsivileva, Chair of the Board of Directors at Kolmar Sales and Logistics.

Director of VaninoTransUgol Yury Tyamushkin told the participants about the progress made in developing new infrastructure for a coal terminal in Vanino. The first units will be launched in 2019. Investment in the project amounts to a total of 33 billion roubles.

"Tax preferences are very helpful in terms of the project’s payback, stability and attractiveness for investors and banks. We also need to constantly improve our instruments, including those relating to developing infrastructure in the Far East," says Yury Tyamushkin.

Discussion of the social and economic development of the Far East and integration with Asia-Pacific economies will continue at the 4^th Eastern Economic Forum.

Investment Agreements Worth 3.5 Trillion Roubles to Be Signed at the Eastern Economic Forum 2018

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