The Far East Development Fund Energy tariffs for will participate in the industrial consumers implementation of will be reduced three new projects Russia welcomes For Japanese Japanese business The Eastern Port is now companies, Russia a resident of the Free is a new frontier for in the Far East Port business opportunities EAST RUSSIA No. 2 | JAN 2017 ECONOMIC AGENDA EVENTS FACTS AND OPINIONS LAW ENFORCEMENT PROJECTS • The boundaries of • 421 projects, the new • FAW trucks will be • The construction the Komsomolsk ASEZ mechanisms give manufactured in the of a fertilizer plant will be extended 1225 billion rubles Free Port • The construction of • ASEZ will be created in • Development of the • Cashew nuts will be the thermal insulating Nikolayevsk-on-Amur Far East: map produced in the Free paint production plant Port Chinese investors hone in on projects A new coal terminal is in Primorye to be built in Vanino 10 facts about the Yakut winter Contacts: The investor of the Free www.investvostok.ru What life is like in the coldest region Port will build social +7 (495) 540 41-63 of the Far East housing [email protected] Official Bulletin of the Ministry for development of the Russian Far East. This document was prepared by The Far East Investment and Export Agency, an autonomous non-commercial organization. Distributed by subscription. When using materials, reference to the source is required. JAN’17 EASTERN RUSSIA ECONOMIC AGENDA EVENTS 6–7 September6–7 September 2017 2017 Official Bulletin of the Ministry for development of the Russian Far East. This document was prepared by All published information is relevant as of January 17, 2017. Distributed by email subscription. The Far East Investment and Export Agency, an autonomous non-commercial organization. 2 When using materials, reference to the source is required. EVENTS FACTS AND OPINIONS LAW ENFORCEMENT PROJECTS JAN’17 EASTERN RUSSIA ECONOMIC AGENDA EVENTS MAJOR ECONOMIC EVENTS in the Far East for December 2016 DECEMBER 16 Federal Law on the Electric Power Industry energy subjects and use the funds earned THE LAW ON THE REDUCTION in its second and third readings. The law from such a markup. Thus, the tariff will OF ENERGY TARIFFS will come into effect January 1, 2017, and go down as a result of a slight growth in FOR INDUSTRIAL CONSUMERS provide for the gradual reduction of energy the tariff for end consumers in the rest of OF THE FAR EAST WAS ADOPTED costs for industrial consumers in the Far Russia (about 1.8%). The State Duma of the Russian East to the average level in Russia. Tariffs will be alligned gradually. The Federation considered the draft law On The law authorizes the Government average indicator for Russia should be the Introduction of Amendments into the of Russia to establish a markup for reached within two years. ENERGY TARIFFS FOR INDUSTRIAL CONSUMERS OF THE RUSSIAN FAR EAST WILL BE REDUCED -65% -50% THE AVERAGE TARIFF FOR RUSSIA: -34% 3.19 R./KWH -20% -5% -5% -46% -17% COST OF IN THE FAR EAST: ELECTRICITY -21% UP TO 9.2 FROM 3.34 R./KWH Reduction of tariffs R./KWH in the regions of the Far East TARIFF Chukotka Autonomous Okrug – 65% Primorskiy Krai – 21% Yakutia – 50% Kamchatskiy Krai – 20% REDUCTION ON Sakhalinskaya Oblast – 46% Jewish Autonomous Oblast – 17% AVERAGE FOR Magadanskaya Oblast – 34% Amurskaya Oblast – 5% THE FAR EAST 30% Khabarovsky Krai – 5% Official Bulletin of the Ministry for development of the Russian Far East. This document was prepared by All published information is relevant as of January 17, 2017. Distributed by email subscription. The Far East Investment and Export Agency, an autonomous non-commercial organization. 3 When using materials, reference to the source is required. EVENTS FACTS AND OPINIONS LAW ENFORCEMENT PROJECTS JAN’17 EASTERN RUSSIA ECONOMIC AGENDA EVENTS DECEMBER 20 ADVANCED SPECIAL ECONOMIC struction project of 5.7 thousand apart- Advanced special economic zone will ZONE WILL BE CREATED IN ments for the purpose of housing at the be created in Nikolayevsk-on-Amur NIKOLAYEVSK-ON-AMUR Zvezda Ship-Building Complex (Bolshoy The Governmental Sub-Commission Kamen ASEZ). The total cost of the pro- for the Implementation of Investment ject is 11 billion rubles. The funds are Projects in the Far East and Baikal Re- allocated at the rate of 4.5% per annum The Far East Development Foundation gion chaired by the Vice-Prime Minister in rubles, with a loan term of 23 years will participate in the implementation and Russian Presidential Envoy in the and grace period of 8 years. of three new projects Far Eastern Federal District Yury Trut- Thirdly, the Foundation will co-fi- nev, made the decision to create the fif- nance the purchase of small aircrafts teenth Advanced special economic zone, for passenger operations in the Far the Nikolayevsk ASEZ (Nikolayevsk-on- East. The first partner of the Foundation Amur, Khabarovsky Krai). will be Aurora Airlines JSC, Konstantin Budgetary investments in the cre- Sukhorebrik. The pig-breeding complex in ation of the new ASEZ will be focused Khabarovskiy Krai will be granted an on building the necessary energy infra- THE PIG-BREEDING COMPLEX IN infrastructure subsidy. structure. Nine companies have already KHABAROVSKIY KRAI WILL BE declared their intention to build and GRANTED AN INFRASTRUCTURE develop manufacturing capacities in the SUBSIDY new ASEZ. The total volume of private The Governmental Sub-Commission investments exceeds 3 billion rubles, for the Implementation of Investment The Komsomolsk Development Priority and about 2.5 thousand new jobs will Projects in the Far East and Baikal Re- Area is extending its boundaries be created. The projects are connected gion approved a state infrastructure mainly with fish processing and ship subsidy for the investment project of repairing. the construction of a pig-breeding The Nikolayevsk ASEZ will be offi- complex in Khabarovskiy Krai with a cially formed from a legal perspective capacity of 70 thousand heads per year. after the issue of the appropriate Regu- The investor SKIFAGRO-DV is planning lation of the Government of Russia. to invest 1.9 billion rubles in the pro- ject. A state subsidy in the amount of THE FAR EAST DEVELOPMENT 124 million rubles will be used for the FOUNDATION WILL PARTICIPATE IN construction of the gas pipeline, electric THE IMPLEMENTATION OF THREE power line and roads. NEW PROJECTS The Governmental Sub-Commission THE KOMSOMOLSK ADVANCED for the Implementation of Investment SPECIAL ECONOMIC ZONE IS Projects in the Far East and Baikal EXTENDING ITS BOUNDARIES Region approved the Far East Develop- The Governmental Sub-Commis- ment Foundation to participate finan- sion for the Implementation of In- cially in three investment projects. vestment Projects in the Far East and Firstly, the Foundation will invest Baikal Region approved an extension 5 billion rubles in the construction of the boundaries of the Komsomolsk of a pig-breeding complex in the ASEZ. The new boundaries will also Mikhailovsky ASEZ (a Rusagro Group cover the territory of the location and project). The total cost of the project prospective development area of the is about 40 billion rubles (including Kholdomi Tourist Complex, around the development of fodder supplies). which the regional authorities propose The funds will be earmarked for the to create a tourism and recreation clus- construction of industrial buildings, the ter. purchase of equipment, and the devel- As part of the project the ski in- opment of stock-breeding and plant frastructure will be extended and the growth. length of paths will be 60 kilometers. Secondly, the Foundation will pro- In the future, the cluster will be able vide a target loan in the amount of 3.3 to host up to 240 thousand visitors per billion rubles to co-finance the con- year. Official Bulletin of the Ministry for development of the Russian Far East. This document was prepared by All published information is relevant as of January 17, 2017. Distributed by email subscription. The Far East Investment and Export Agency, an autonomous non-commercial organization. 4 When using materials, reference to the source is required. EVENTS FACTS AND OPINIONS LAW ENFORCEMENT PROJECTS JAN’17 EASTERN RUSSIA ECONOMIC AGENDA EVENTS RUSSIA WELCOMES JAPANESE BUSINESS IN THE FAR EAST As part of the visit of Russian President Vladimir Putin to Japan, 23 partnership agreements were entered into in the Far East On December 15–16, Russian President fishing, tourism, aquaculture, medicine Vladimir Putin visited Japan. On the first and the environment. day of the visit, a meeting between the On the second day of the visit an- Russian President and Prime Minister of other round of negotiations took place Japan Sindzo Abe was held. The main areas at the highest levels. In particular, future of bilateral relations were discussed, in par- prospects for the development of trade, ticular, international issues in the Asia-Pa- economic and investment cooperation cific Region, security issues, the cooperation were discussed. On that day the Russian of Russia and Japan in the UN, the situation and Japanese Business Forum also took in Ukraine, and ways to continue the battle place in Tokyo. The leaders of the coun- against international drug traffic. tries participated in the plenary session Separately, future prospects for the of the forum. In total, during the visit 81 joint economic activities of the two coun- documents were approved and signed, 23 tries on the southern Kuril Islands were of which directly relate to international considered in respect of such fields as economic cooperation in the Far East. Official Bulletin of the Ministry for development of the Russian Far East. This document was prepared by All published information is relevant as of January 17, 2017. Distributed by email subscription.