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p. 18 p. 21 p. 24 p. 28 The Far East success story The Indian diamond of The tasty result of Investments showcase of the Korean way the Free port Japanese investments the Far East EAST RUSSIA No. 9 | AUGUST 2017 ECONOMIC AGENDA Read also: Free Port of Vladivostok turns to the first results ....................................................................... p. 10 Energy of Natalka. The largest gold-mining project is set up .................................................... p. 14 Welcome to the Russian Far East! 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 email subscription. When using materials, reference to the source is required. 6–7 September6–7 September 2017 2017 2 AUGUST 2017 GREETING DEAR COLLEAGUES! The Far East is a territory with a great Thirdly, investors in Far East get an advan- economic potential. More than a half of for- tage due to low costs. Price of electricity in estry reserves and a third of fresh water re- the region is currently just below $0,06 kWh, serves of Asia-Pacific are to be found on its water supply —$0,62 per cubic metre, gas six m square km, as well as 27% of gas, 17% supply — $80,3 per thousand cubic meters. of oil, above 30% of gold and almost all di- Fourthly, the region offers investors a amond deposits. Offshore zones here are preferential tax treatment for 10 years. abundant with fish resources and there are Zero corporate income, corporate property major world railways onshore. and land taxes rate for the first five years. Development of this land full of riches Only half of full tax rates in Russia for the is a national policy priority for the President next five years. Insurance premiums in Ad- of our country, Vladimir Putin. vanced Special Economic Zone and Free Important changes to the Far East in- Port of Vladivostok are set at 7,6% of sala- vestment environment are being imple- ry. Moreover, VAT and import duties are not mented with the aim to make the region payable for importation of equipment and competitive among other Asia-Pacific re- raw resources for processing. gions. Fifthly, The most important step has First of all, we developed, using the best been taken to open the Far East for foreign practices, and implemented a number of investors. Starting August this year citizens services for investors, to make administra- of 18 countries are allowed to visit Vlad- tive procedures faster and more favora- ivostok with eight-days electronic business Alexander Galushka ble. An online information system was be- visa. For the first time in Russian visa histo- Minister for the Development come available in the beginning of August, ry a foreign citizen can obtain an entry visa of the Russian Far East so today investor need not visit hundreds of to our country with just his computer. agencies and authorities but uses just one It is quite obvious, nonetheless, that personal member area to get support. The there is still much to be done. The process services would eventually become a single of developing a competitive investment en- point of contact portal for investor to get in vironment is not finite, it requires incessant touch with supporting institutions as well search for new solutions. We will continue as tax and regulation agencies. Far East In- to work on creating a friendly environment vestment and Export Agency is responsible for doing business in the region and to sup- for maintaining the portal. port investors who work in the Far East. Secondly, the state provides investors Dear colleagues! We are happy to dis- with ready to use infrastructure. A resident cuss all those subjects with business com- of the Advanced Special Economic Zone munity during the Third Eastern Econom- is well informed now of the conditions of ic Forum. The Far East is open to coopera- connecting to gas, water and energy supply tion. You are welcome to invest in develop- networks, and of the use of a plot of land ment of one the most promising regions of and roads. our country! 3 EASTERN RUSSIA ECONOMIC AGENDA EEF-2017 RECOMMENDED FREE PORT OF PLENARY SESSION VLADIVOSTOK: SUCCESSES AND CHALLENGES. «THE FAR EAST: THINKING TOGETHER 6 September, 12:45 – 14:15 » More than 300 investors became residents CREATING NEW REALITY of the Free Port of Vladivostok, more that 20 new enterprises started. How successful is the modern porto-franco in the opinions of the residents of the Free Port of Vladivostok? Sin- gle tax for the residents of the free port: how businesses’ tax and administrative burden is going to change? ADVANCED SPECIAL ECONOMIC ZONE 2.0. 7 September, 14:00 – 16:00 INVESTORS SPEAK Speech by the President of Russia Vladimir Vladimirovich Putin 7 September, 9:00 – 10:30 Speech by the President of Republic of Korea Moon Jae-in 18 ASEZs have been created since 2015, Speech by the President of Mongolia Khaltmaagiin Battulga involving capital from Russia, China, Japan, Speech by the Prime Minister of Japan Shinzō Abe Australia, Singapore and other counties, more Moderator: Ronnie Chan Chi-chung — Chairman, Hang Lung Properties than 300 investments projects are being im- plemented there and more than 20 manufac- HOW TO DO BUSINESS IN THE FAR EAST tures established. What do investors think of ASEZ regime effectiveness and its influence COAL AND LOGISTICS: EX- AQUA- AND MARICULTURE: on projects’ economics? To what extent the ASEZ regime is competitive compared to pref- PORT POTENTIAL LOOKING AT THE NEW erential regimes in Asia-Pacific countries most 6 September, 10:30 – 12:00 INDUSTRY attractive to investors? Investors have access to just 27% of IN THE FAR EAST known coal reserves in the Far East. What INFRASTRUCTURE available niches and ongoing projects in the 6 September, 12:45 – 14:15 SUPPORT FOR LARGE way of coal could be interesting for investors There are more than 2 m ha of offshore from Asia-Pacific countries? What are the pros- zone suitable for growing highly valued and INVESTMENT PROJECTS. pects of coal exports in the Far East? popular on Asia-Pacific markets mariculture WHAT NEXT? products. 1% of that area is available for such 7 September, 9:00 – 10:30 WOODS AND WOOD PRO- businesses. How to use the internet-service to Targeted infrastructure support mecha- lay out sea areas for mariculture? nism was developed and implemented in 2015 CESSING: FROM “LOGS” TO for Far East investors. Essentially it means that PULP-AND-PAPER MILLS AGRO-INVESTMENTS. HOW public funds are provided for construction of 6 September, 10:30 – 12:00 TO FEED THE ASIA-PACIFIC? new infrastructure facilities necessary for new 51% of forest reserves in the whole enterprises. 14 investors have already used Asia-Pacific are in the Far East. Just 16 m of 7 September, 11:30 – 13:00 that mechanism to start their projects. Does cubic metres of timber is currently being har- The Far East, thanks of its unique location the infrastructure subsidy mechanism live up vested annually in the macroregion, i.e. 18% and ecology, could become one of the key sup- to investors’ and state’s expectations? How it of the maximum allowed set at 90 m of cubic pliers of food to the Asia-Pacific. What are cur- has influenced returns on private investments metres. What projects are being implemented rent mid and long term trends in demand for so far? and what niches are still available? food products in the Asia-Pacific? 4 AUGUST 2017 EVENTS BUSINESS–DIALOGS INVESTMENT PROJECTS PRESENTATIONS RUSSIA — INDIA ects in the Far East involving Chinese capital 6 September, 10:30 – 12:00 have already been realized and proven their It was 2017 when the first investments viability and which are at their starting stage? 34 investment projects, which are from India were made into non oil-and-gas What mechanisms could become additional being implemented in the Far East, will businesses in the Far East — the first stage of drivers for growth of investments from China hold presentations during the EEF-2017. Russian-Indian cooperation for creating a di- in the Far East? Sessions will be held at the exposition stand amond and jewelry cluster in Vladivostok is «Development of the Far East» in the building about to start. A number of Indian companies — A, level 6. are close to making decisions on investments RUSSIA JAPAN in engineering and coal mining. Which proj- 7 September, 09:00 – 10:30 ects of Indian companies are already being im- A year has passed since the start of a joint 6 SEPTEMBER plemented in the Far East and what is the key realization of an eight-items plan of economic to their success? cooperation proposed by Japanese Prime Min- 10:00 - 11:00 Investment projects ister Shinzō Abe, and it is possible now to talk in transportation and logistics — of a significant improvements in the area of co- RUSSIA ASEAN operation between businesses of the countries. 11:15 - 12:25 Investment projects 6 September 15:15 – 16:45 Which projects by the Japanese companies are in agriculture and food The current year is marked with a start of a already being realized in the Far East? What is industry number of projects in the way of engineering, the key to their success? What reservation do agriculture, wood processing, transportation Japanese companies have that stop them from 12:40 - 13:10 Investment projects and tourism in the Far East involving compa- investing in the Far East? in fishing industry nies from ASEAN countries. But there is still a sizable investment potential awaiting realiza- — 13:25 - 13:55 Investment projects tion.
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