Eastern Russia Economic Development

Transcription

Eastern Russia
––– Ministry for the development of the Russian Far East –––
economic development
Official Newsletter
JAN–2016
Vladivostok . Khabarovsk . Yuzhno-Sakhalinsk . Petropavlovsk-Kamchatsky . Blagoveschensk . Birobidzhan . Anadyr . Magadan . Yakutsk
CONTENTS
NEWS DIGEST ...... p1–p3
FOCUS // INTERVIEW OF
THE RF MINISTER ALEXANDER
GALUSHKA ................. p4–p5
NEWS DIGEST
II Eastern Economic Forum
to be held on 2-3 September
2016 in Vladivostok
This is an official newsletter of the Ministry
of the Russian Federation for the Development
of the Far East
22.01.2016 The first Eastern
Economic Forum, that took
place in September this year,
attracted more than 2500 participants from 32 countries in
Asia, Europe and Latin America. The Russian President Vladimir
Putin participated in the forum. Investors signed 109 agreements
amounted to 1.8 trillion rubles. 750 billion rubles out of them are
projects with participation of foreign investors.
The second Eastern Economic Forum in Vladivostok is expected to gather at least 3,500 attendees this year among which representatives of the global business community interested in cooperation with Russian companies and the development of Russia’s
Far East, foreign governments, business associations and the
expert community. Russian participants will include officials from
both chambers of the Federal Assembly, federal departments and
agencies and regional leaders.
Additional information –> http://www.forumvostok.ru/en/
CONTACTS
Investment opportunities of the of
the Russian Far East presented at the
WEF in Davos
WHAT IS THE RUSSIAN
FAR EAST NOW? .. p6–p8
REFERENCE
MINISTRY FOR DEVELOPMENT
OF RUSSIAN FAR EAST
For investors:
Tel: +7 (495) 531-06-44 (ext.4100)
Fax: +7 (495) 531-06-55
e-mail: iec@minvr.ru
For press:
Tel: +7 (495) 531 06 39
e-mail: press@minvostokrazvitia.ru
Offices of the Ministry are located
in Moscow, Khabarovsk and Vladivostok
22.01.2016 Deputy Prime Minister Yuri
Trutnev, who headed the Russian delegation at the World Economic Forum
in Davos, presented the agenda of the
Far East in the business session “The Outlook for Russia”.
One of the issues of the business session “Regional Business
Council of Eurasia: new Sources of Growth” was discussion of
the idea of the economic belt of the Silk Road and Russian
participation in the project.
–> followed at the next page
SEE ALSO
map.minvostokrazvitia.ru
–– 1 ––
––– Official newsletter of the Ministry for the development of the Russian Far East ––– JAN–2016 –––
–> followed from the previous page
According to Alexander Galushka, specific projects of combining the Russian Far East and the economic belt of the Silk Road
are developing. First of all these are projects of the development
of cross-border infrastructure and transport and logistics corridors. Such approach can be advantageous for the Chinese side,
since Chinese partners significantly reduce costs, as well as for
the Far East, that is earning on service of a traffic.
The financial and economic model of transport corridors “Primorye-1” and “Primorye-2” are developed in cooperation with an
international company McKinsey & Company. The first project
drafts were presented to Chinese partners during the meeting
of the twentieth regular summit of the heads of the Russian and
Chinese governments. Now the possibility of creation of the joint
project team and joint management company are the subject of
the bilateral negotiations.
A MEMORANDUM OF UNDERSTANDING IN THE AREA OF
INVESTMENT COOPERATION
IN THE ENERGY SECTOR IN
RUSSIAN FAR EAST WAS
SIGNED. THE DOCUMENT WAS
SIGNED BETWEEN THE MINISTRY FOR THE DEVELOPMENT OF RUSSIAN
FAR EAST AND TATA
POWER COMPANY
LIMITED.
24.12.2015
Russia interested in investors from India
14.01.2016
First investment agreement signed in ASEZ “Kamchatka”
During the 16th edition of the annual summit in Moscow in the
presence of Russian President Vladimir Putin and Indian Prime
Minister Narendra Modi a memorandum of understanding in the
area of investment cooperation in the energy sector in Russian
Far East was signed. The document was signed by Minister of
the Russian Federation for the development of the Far East Alexander Galushka and CEO of Tata Power Company Limited (Tata
Power) Ashok Sethi.
Tata Power is India’s largest
integrated power company with
significant international presence. The company operates
in all segments of the electricity
sector (thermal, hydro, solar
and wind power) and is a part
of the largest industrial groups
in India - holding «Tata Group»,
which has offices in more than
120 countries. The holding also
includes 114 companies and branches in 8 business sectors. The
annual revenue of the company is 108.78 billion dollars, 68% of
revenue are generated by its international operation.
In ASEZ “Kamchatka” the first investment agreement was
signed by the Corporation for the Development of the Far East
and “Krasnoyarsk Ltd”. The project envisages construction of the
complex for storage of oil products with a capacity of 18 thousand
tonnes. The total volume of investment is 280 million rubles. Advanced special economic zone “Kamchatka” has two main specializations: port and industrial and tourist and recreational.
SEE ALSO
–– 2 ––
Russia-china agricultural fund to invest up to 10 bln USD into
projects under the guidance of FEDF
Memorandum of Understanding between Ministry for Development of
Far East of the Russian Federation and
National Development and Reform Commission of the People’s Republic of China
was written in the presence of the Chairman of Russian Government Dmitry Medvedev and Premier-Minister of PRC State Council Li Keqiang. The document was signed
by the Minister for Development of the Russian Far East Alexander Galushka and the Head of the National Development and Reform Commission of the People’s Republic of China Xu Shaoshi.
Initial capital of the fund will be 13 billion rubles, 1.3 billion
rubles of which will be invested by the Far East Development
Fund, and 11.7 billion rubles will be invested by Asian-Pacific
Food Fund Management Company. At that in the agreement the
Chinese party specified, that it would strive to capitalization of
the fund in the amount of 10 billion USD, i.e. 700 billion rubles
according to the current rate of exchange. Far East and Baikal
Region Development Fund will receive 51% in the management
company of the fund and invest 10% of financial resources, the
rest of the capital will be provided by the Chinese partner.
Key goal of the Fund will be development of export-oriented
projects at Russian Far East with attraction of available long-term
financing from APR. Operators of efficient agricultural projects of
the Far East in the spheres of production, processing and realization of products (including crop farming, cattle breeding, and
mariculture), development of agricultural infrastructure may bank
upon RCFAD support.
Agricultural Fund will become a tool of practical realization of
arrangements, reached between the Ministry for Development of
Russian Far East and National Development and Reform Commission of the People’s Republic of China on Russian-Chinese
collaboration in the sphere of agricultural production development.
17.12.2015
THE CAPITALIZATION OF
THE FUND WILL RISE TO THE
AMOUNT OF 10 BILLION
USD. FAR EAST DEVELOPMENT FUND WILL
RECEIVE 51% IN THE MANAGEMENT COMPANY OF THE
FUND AND INVEST 10% OF
FINANCIAL RESOURCES, THE
REST OF THE CAPITAL WILL BE
PROVIDED BY THE CHINESE
PARTNER.
Investment opportunities of the Russian Far East presented at
the Asian Financial Forum
19.01.2016 New investment opportunities in the Far Eastern regions were discussed at the Asian Financial Forum in Hong Kong.
Deputy minister Kirill Stepanov presented advanced special economic zones and the free port of Vladivostok as a factor in the
development of international cooperation.
SEE ALSO
–– 3 ––
FOCUS // INTERVIEW OF THE RF MINISTER ALEXANDER GALUSHKA
eign partners. We are interested
in investors from India.
Russia is interested in investors from India: Alexander
Galushka
– Can you share some details of the
MoU with Tata Power. What would this
project want to achieve in Russian Far
East.
– Yes, indeed. Tata Power
signed a memorandum of understanding in the area of investment
cooperation in the energy sector in Russia’s Far East. Along
with obvious economic benefits
of this project we would like to
and logistics opportunities. It
demonstrate the Indian business
is a huge area of northeastern
Eurasia and it is twice the size of community the seriousness of the
Russian government’s intentions
India. Russian government has
to provide full support to Indian
proposed a model for the Far
East that has favorable and com- investors as well as to demonstrate new, safe, convenient and
petitive advantages for investeconomically attractive operating
ment and business in compariprinciples in the Russian Far East.
son with the Asia-Pacific region
– What do Russia offers in its Far
countries. 2015 was the year
East
for Indian companies? What are the
of creation and launch of new
sectors that can be explored by Indian
practical mechanisms for the
companies?
formation of favorable business
1. One-stop desk for the investor.
environment in the region.
2. Short terms for all the necFirstly we developed the advanced special economic zones essary administrative procedures
including licensing.
where the state is concerned
3. Any check of the investor
about the creation of infrastrucby
Russian monitoring and audit
ture for industrial activity.
bodies can be set up only on the
Another mechanism is to inapproval of the Russian Ministry
crease attractiveness of doing
for the Development of the Far
– At the annual summit last Thursbusiness to create a network of
day (Dec 24) India and Russia decided
free ports to follow up on the idea East.
4. In case of any dispute into join hands for investments in Russia’s of advanced special economic
volving
Russian monitoring and
Far East. Can you share some details of zones and gives wider range of
audit bodies, interests of the Indithe cooperation that is being planned
benefits and advantages.
for Indian presence in Far Eastern part
In 2015 we have received more an investor may be defended in
court by state-run Corporation for
of your country.
than 100 applications, including
– The Russian Far East is the applications from foreign partners, the Development of the Far East
- 100% controlled by the Russian
reserve to the country’s natural
for residency in the areas of adgovernment.
resources providing Russia with vanced special economic zones
5. The regime of the free ecodirect access to large markets
and the Free Port of Vladivostok
nomic
area: no import or export
and dynamically developing
with the investment of $5 billion.
economies of the Asia-Pacific
For the areas of advanced devel- customs duties are collected,
customs procedures are fast and
region. It has unique transport
opment we intend to attract forWhen PM Narendra Modi
met President Vladimir Putin at
the 16th edition of the annual
summit in Moscow one of the
key decisions was forging a partnership for Indian investments
in Far Eastern Russia. Indian
companies hitherto had limited
presence in Far Eastern Russia,
where China has made inroads
to tap vast natural resources
there.
However, a beginning was
made when Tata Power signed
an agreement with the Russian
government to invest in Far Eastern Russian energy sector at the
annual summit in Moscow on
December 24. Alexander Galushka, Minister for Development
of Russian Far East, who signed
the agreement on behalf of Moscow explained ET’s Dipanjan
Roy Chaudhury in an email interview on the economic potential
of the vast region and opportunities for the Indian entrepreneurs.
SEE ALSO
–– 4 ––
FOCUS // INTERVIEW OF THE RF MINISTER ALEXANDER GALUSHKA
convenient.
6. The regime of bringing in
foreign work force in case of the
shortage of local work force.
7. An option of co-financing the
investor on behalf of the Foundation for the Development of the
Far East.
8. During the first five years
of implementing the investment
project, no profit, property or land
taxes are paid. During the first ten
years, social tax on salaries is reduced to 7.6% from 30%. Income
tax is 13%.
9. No value added tax and no
import duties for the processing
are collected.
10. Up to 60% discounts for
using land and infrastructure.
– Have any other Indian company
apart from Tatas shown interest for Russian Far East?
– A number of Indian companies are showing interest in the
Far East. For example Russia’s
largest oil company Rosneft and
the Indian ONGC Videsh Limited
are cooperating in the region.
There is a project of a leading
Indian construction company and
the Russian state corporation to
construct a carbamide plant in the
Russian Far East; the Indian industrial conglomerate Enso Group
has studied a number of investment projects. Following suggestion of our Indian colleagues, we
plan to hold a business session to
invite India’s entrepreneurs to the
region in the spring of 2016.
We are willing to tell all the
interested Indian companies the
details of unique new business
opportunities in the Russian Far
East. So I would like to invite all
the interested entrepreneurs to
the Eastern Economic Forum
2016, which will be held in Vladivostok on September 2-3. This
forum will give a detailed presentation of a new economic policy
of the Russian government in the
Far East as well as invite our foreign colleagues for mutually benefitial and effective cooperation in
the region.
There are only two such forums in Russia - one is St. Petersburg Economic Forum, the other
- Eastern Economic Forum in
Vladivostok. Both enjoys support
of President Vladimir Putin.
30.12.2015
http://articles.economictimes.indiatimes.
com/2015-12-30/news/69402787_1_energy-sector-indian-companies-indian-investments
ARE YOU INTERESTED IN GETTING CLOSE TO INVESTMENT IN
RUSSIAN FAR EAST?
Follow map.minvostokrazvitia.ru
SEE ALSO
–– 5 ––
«Developing Siberia and the Far East
is our national priority for the entire
21st century»
President of the Russian Federation Vladimir Putin
WHAT IS THE RUSSIAN FAR EAST NOW?
The Far Eastern regions of
Russia occupy 30% of country’s
territory. Its area is 6169,3 th.km².
Nature and climate of these
lands vary from the Arctic deserts
to the subtropics. The Russian
Far East is very rich in raw materials resources. 98% of Russian
diamonds, 80% of tin, 90% of
raw boron, 50% of gold, 14% of
tungsten, 40% of fish and marine
products, 80% of soybeans, 1%
of wood, and 7% of cellulose are
extracted in the Far East.
Besides the Far East provides
Russia with direct access to large
markets and dynamically developing economies of the Asia-Pacific region. It has unique transport and logistics opportunities.
Today the development of the Far Eastern
region is the priority for the Russian Federation.
To this end a special regional ministry was created by the Decree of the President on May 21,
2012. The Ministry for the development of the
Russian Far East is authorized body, which is
responsible for the implementation of new economic policy in the Far Eastern region. Since
September 11, 2013, the Minister for the development of the Russian Far East is Alexander
Galushka.
SEE ALSO
The key instruments of the new economic
policy for the Russian Far East are:
– Advanced special economic zones,
– Free port of Vladivostok.
There are some other mechanisms such as
State infrastructural support of investment projects and the possibility of co-financing of the
investment projects on behalf of the Far East
development fund if they meet some necessary
conditions.
–– 6 ––
Advanced special economic
zones (ASEZ)
Advanced special economic
zones (ASEZ) are to become
the main driver for development
in the Far East. An important
factor here is the ASEZ export
orientation, because, at the moment, the market capacity of the
Far Eastern region is very small
and the capacity of the Russian market, considering heavy
transportation expenditures, is
incomparable to the capacity of
Asia-Pacific region markets.
A special mode of running business in ASEZ presupposes a
range of preferences, including practical implementation of a “onestop” principle for investors due to the possibility of performing control and supervision within ASEZ by means of specially created federal executive authorities.
Currently, the government of Russian Federation established 9
ASEZ.
TODAY 97 APPLICATIONS
FOR THE IMPLEMENTATION OF
ACTIVITIES IS ASEZ, FOR THE
TOTAL INVESTMENT OF $4,5
BILLION ARE FORMALLY
MADE
FREE PORT
OF VLADIVOSTOK
The federal law on the Free
port of Vladivostok came into
force on October 12, 2015. The
project is aimed at enhancing
cross-border trade, the development of transport infrastructure and the inclusion of the
Primorsky territory in the global
transport routes, as well as to
attract investment, create a network of logistics centers with
special conditions for transporting, storing and partial cargo
handling, organize non-resource export-oriented industries and increase in high value added productions.
The government also plans to establish a free customs zone regime in the port area, where the imported equipment will be exempt
from import duties and VAT. Special operating conditions can be
implemented for the educational and medical institutions, as well as
for other companies, including fishing enterprises.
SEE ALSO
–– 7 ––
TODAY 9 RESIDENTS OF
THE FREE PORT OF VLADIVOSTOK ARE APPROVED, ANOTHER 21 APPLICATIONS FOR THE
TOTAL INVESTMENT OF $1
BILLION ARE MADE
Eastern Economic Forum
Russia’s first ever Eastern Economic Forum (EEF) is unique in its
scale and the level of expertise of its participants as a platform for
constructive dialog between representatives of the international investment community, business, and the governments of both Russia
and the countries of the Asia-Pacific Region (APR).
OBJECTIVES OF EEF:
– To improve relations between the international investment community, Russian business, and Federal and local governments
– A comprehensive expert assessment of the economic potential
of East Russia, as well as the improvement of the competitiveness
and investment attractiveness of the region, both at the Russian and
international level
– The presentation of new conditions for investments and doing
business by means of exclusive procedures created for East Russia –
the Advanced special economic zones and the Free Port of Vladivostok
The forum will be held from the 2nd through the 3rd of September 2016
on Russky Island in Vladivostok in accordance with Decree No. 250 of the
Russian President of May 19, 2015.
Photos on this page by TASS Agency
OFFICIAL WEB-SITE: www.Forumvostok.ru/en/
The first Eastern Economic Forum, that took place in September
this year, attracted more than 2500 participants from 32 countries
in Asia, Europe and Latin America. The Russian President Vladimir
Putin participated in the forum. Investors signed 109 agreements
amounted to 1.8 trillion rubles. 750 billion rubles out of them are
projects with participation of foreign investors.
SEE ALSO
–– 8 ––

Eastern Russia Economic Development

Transcription

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