Khabarovsky Krai Government

Khabarovsky Krai Business Climate and Long-term Development Trends

www.adm.khv.ru E-mail: [email protected] E-mail: [email protected] ZINKIN Valery Alexandrovich

Deputy Minister for Economic Development and Foreign Relations of Khabarovsky Krai Chukotsky Autonomous Okrug

Magadanskaya Location Oblast Kamchatsky Republic of Sakha Krai of (Yakutia)

Khabarovsky KHABAROVSKY Krai KRAI Sakhalinskaya Oblast Amurskaya Oblast

JAR Primorsky Krai China JAPAN

Mongolia DPRK

Khabarovsky Krai Mineral Resources Khabarovsky Krai - structure of industrial production in 2008

Generation Petroleum and distribution products of electric energy, manufacture gas and water Metallurgical 8,9% 20,7% production 17,6% Other 8,8%

Food products Machine building 11,5% Mineral and metal processing extraction 17,3% 15,2% Far Eastern regions investment potential ranking according to Investment Rating for `s Regions in 2007-2008 (issued by «Expert RA» rating agency) 19th rank – Republic of Sakha (Yakutia)

21st rank – Primorsky Krai

28th rank – Khabarovsky Krai

53rd rank – Sakhalinskaya Oblast

56th rank – Amurskaya Oblast

67th rank – Kamchatsky Krai

70th rank – Chukotsky Autonomous Okrug

73rd rank – Magadanskaya Oblast

80th rank – Jewish Autonomous Oblast

Overseas investments inflow in Khabarovsky Krai (mln US$)

245,5 248,8 240,2 217,6

96,2

33,3 27,4

2002 2003 2004 2005 2006 2007 2008 De-Kastri Oil Export Terminal, Sakhalin-1 Project Overseas investments inflow in Khabarovsky Krai, breakdown by regions (mln US$)

EU countries 159,0 South and North- 127,2 East Asia countries 91,7 93,1 77,3 55,4

16,7 20,2 14,0 16,6 13,1 8,5 14,0 12,6 2002 2003 2004 2005 2006 2007 2008 Japanese investments inflow in Khabarovsky Krai (mln US$)

3,9

3,0

2,2 1,8 1,4 1,04

0,06

2002 2003 2004 2005 2006 2007 2008 Investment projects with the participation of Japanese capital in Khabarovsky Krai

Expansion, reconstruction and retrofit of sawmill plant

«Vanino-Tairiku» Ltd

Construction of a veneer mill

JSC «Komsomolsk Forest Products»

Commercial production of organomineral fertilizers for export sales «Biotex Agro» Ltd

Geographic structure of Khabarovsky Krai foreign trade in 2008 15,8% 2,8% 2,6% 42,4% 2,4% 5,7%

14,3%

14,0% China Cyprus Germany Republic of Korea Vietnam Other Japan USA Khabarovsky Krai-Japan foreign trade (mln US$)

583 531 472 Total turnover 357 374 426 395 247 Export 198 292 269 258 Import 169 180 141 157 116 136 88 57 78 2002 2003 2004 2005 2006 2007 2008 Business environment 1 Foreign Investment Promotion Agency Direct contacts with investors, Russian overseas 2 trade and diplomatic missions Law «On Investment Activities 3 in Khabarovsky Krai» Governor’s Advisory Board on foreign 4 investments International forums, conferences, overseas 5 business missions in Khabarovsky Krai, presentations of Khabarovsky Krai business opportunities overseas Sourcebooks: «Khabarovsky Krai Investment 6 Projects» and «Foreign Investor Guidebook» Khabarovsky Krai Government major guidelines 7 on foreign economic policy for the period of 2006-2010 Trend of overseas businesses registration in Khabarovsky Krai

105 88 78 58 61 62 35

2002 2003 2004 2005 2006 2007 2008 Khabarovsky Krai competitive advantages

High industrial potential

Substantial mineral resource potential

Availability of highly-skilled labor

Economically favorable location of the region

Developed transport infrastructure

Modern means of communication Diagram of Trans-Siberian Container Land Bridge Service from Europe to Asia Pacific

Russia Kotka St. Petersburg 18 days Moscow Sovetskaya-Gavan

Vladivostok

Busan

33 days

Diagram of new trans-shipment complexes in Vanino - transport-industrial hub

ОАО Mechel

Sakhatrans Ltd ОАО SUEK Prichal Ltd

JSC Transbunker JSC Vanino Commercial Sea Port JV “Arkaim” Ltd

Group of companies Petropavlovsk PORT SPECIAL ECONOMIC ZONE LAYOUT A nascent port special economic zone (PSEZ) is located on the eastern shore of the Sovetskaya Gavan Bay and stretches for about 8 km from Vyacheslav cape in the north to Maria cape in the south.

The total area is about 4,5 square kilometers. Development of the Far Eastern Railways, a branch of JSC “Russian Railways” utilizing public private partnership Implementation of the project “Upgrade of the Oune- Vysokogornay rail section including the construction a brand new Kuznetsovky tunnel at Komsomolsk-on- – Sovetskaya Gavan railway section”

Implementation of the project “Strategic Program of BAM Development till 2020” A testing ground for high-speed passenger operations in the Far Eastern Federal District

High speed operations up to160 km/hour

Khabarovsk airport development project

Guidelines for the motorways development Yugoryonok «Khabarovsk-Lidoga-Vanino» motorway Nelkan with access to Komsomolsk-on-Amur

«Selekhino-Nikolaevsk-on-Amur» motorway Ayan «Komsomolsk-on-Amur-Beryozovyi- Amgun-Mogdu-» motorway

«Ayay-Nelkan-Yugoryonok» motorway Nikolaevsk-on- Amur

Beryozovyi Chegdomyn De-Kastri Komsomolsk-on-Amur Selikhino Lidoga Uktur

Khabarovsk Vanino Diagram of a new border-crossing point at Bolshoi Ussuriysky Island

Border-crossing point Attractive investment opportunities in timber industry Lumber production up to 200,000 м3 and veneer production up to 190,00 3 м per annum in Kharpichan settlement (by 2012) Rotary-cut veneer production up to 300,000 м3 per annum, lumber 3 production up to 230,000 м per annum, MDF board production up to 3 150,000 м per annum in (2009-2012) Pulp production facility with the capacity of up to 500,000 tones per annum in Amurk (2015) Kharpichan Particle board production up to 140,000 м3 per annum (2009) and 3 lumber production up to 600,000 м Amursk Amursk per annum in Oktyabrskiy settlement Oktyabrsky (2009-2015) Khabarovsk MDF/THDF board production with the capacity up to 300,000 м3 per annum Khor in Khor settlement (2009-2014)

Khabarovsky Krai Government

Khabarovsky Krai Business Climate and Long-term Development Trends

www.adm.khv.ru E-mail: [email protected] E-mail: [email protected]