East Russia Economic Agenda
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SEPTEMBER '18 p. 12 p. 20 p. 28 p. 29 Mining Industry: Fish and Aquaculture: Finances and innovations: Street of the Russian projects Investors are getting Offshore + Hitech = Far East: and investment the right to fish The Far East Where to Go EAST RUSSIA #19 | SEPTEMBER 2018 ECONOMIC AGENDA Also read: Head of the Ministry for Development of the Russian Far East Aleksandr Kozlov on expectations of the Eastern Economic Forum 2018 p. 8 From EEF-2017 to EEF-2018: Main Decisions for Development of the Far East p. 3 Welcome to the Russian Far East! Official Bulletin of the Ministry for Development of the Russian Far East. The document was prepared by the Far East Investment and Export Agency. Distributed by subscription. Reference to the source is required when using the materials. Dear participants and guests of the 4th Eastern Economic Forum The Russian Far East has huge economic po- tential. More than half of the timber resources of the entire Asia-Pacific region, more than a third of its freshwater supplies, 27% of its gas, and 17% of its oil are concentrated in the more than six million square kilometres of the Russian Far East. Our region has abundant gold deposits, and its seas are well stocked with fish. The longest rail- way lines in the world run across the Far East, and the shortest route by sea from Northeast Asia to Europe also passes through the region. Developing this fantastically valuable territory is a priority of the national policy which our Presi- dent, Vladimir Putin, is currently pursuing. My task is to offer you a detailed presentation of the com- petitive advantages of the Russian Far East. The first significant steps have already been taken. First, a new economic model for the develop- ment of the Far East has been enshrined in cur- rent legislation. More than 30 laws have been passed to create a competitive environment for pursuing investment projects in the region. Second, special economic zones have been cre- 18 nations have been permitted to enter our re- ated in the Far East where taxes are the lowest in gion on an electronic visa. As things stand, more Russia and administrative procedures are quick than 30,000 visas have been granted, and this fig- and painless. These include our advanced special ure is increasing every day. economic zones and Vladivostok Free Port. As a result of all this, over the past four years Third, the state can now offer investors a de- the Russian Far East has attracted more than RUB veloped infrastructure. A business based in a Far 3.8 trillion in investment, and 1,375 projects are Eastern advanced special economic zone will at various stages of implementation. By 2025, know exactly when they will be connected to more than 127,000 jobs will have been created. In mains water, gas, and electricity, and can be con- 2017, 30% of foreign investment in Russia went fident that access roads to their factory will be in to the regions of the Far East. place. At the same time, there is clearly still much to Fourth, we have created a support system for be done. We will continue to work on creating a investors based on best practice from around the welcoming environment for business in the Far world. We work with every investor individually East, supporting investors’ projects, and finding and provide assistance at every stage of a pro- new ways to meet the challenges ahead of us. I ject. The state has a vested interest in ensuring intend to discuss all of these questions with the that investing in the development of the Far East business community at the 4th Eastern Economic is profitable. This is our aim in organizing Inves- Forum. I look forward to seeing you at the biggest tor Days, which are held regularly in the region, event in Russia’s East. and setting up meetings between businesses and senior government officials. Yury Trutnev Fifth, we have taken a vital step towards mak- Deputy Prime Minister of the Russian Federation ing the Far East as accessible as possible for our and Presidential Plenipotentiary Envoy to the Far foreign partners: since August 2017, citizens of Eastern Federal District 2 SEPTEMBER '18 FROM EEF-2017 TO EEF-2018 2017 2017 SEPTEMBER NOVEMBER // September 6–7, 2017 // November 12, 2017 The Government of Russia decided to increase export duties on round timber from the Far East 25% 40% 60% 80% 2018 2019 2020 2021 The 3rd Eastern Economic Forum For those with the minimum 20% share of processed product in the export More than 6,000 participants from 62 countries (from 2021 — minimum 35%), Signed 217 agreements for a total of RUB 2.5 trl the interest is 6,5% 2017 2017 NOVEMBER DECEMBER // November 27, 2017 // November 27, 2017 // December 12, 2017 Federal law to prolong tax Federal law The borders of the Mikhailovsky preferences for the major to prolong the zero mineral ASEZ were expanded for the investors of the Far East is signed extraction tax for the lead project of the Vietnamese investor extraction industry in the Far East — TH Group of the Far East until 2022 is signed Investment Validity period volume of preferences 0,5+ 15 years Objective: increase lead extraction up to Project — construction of a dairy RUB bn 7,000 tons per year (needs of the Russian farm and a dairy plant economy) 1+ 16 years RUB bn From 2010 to 2016 the volume of lead 14,5 bn 600 100+ 19 years extraction grew from 75 tons a year to to be invested new jobs will RUB bn 1,000 tons a year in the project be created 2017 DECEMBER // December 8–16, 2017 // December 18, 2017 The borders of the Kamchatka ASEZ were expanded for the project of the Indian investor Tata Power in exploration of the Krutogorovskoe coal deposit Days of the Far East in Moscow RUB 30 bn 1000 to be invested The goal — promotion of the Far East new jobs will in the project be created 20 thousand people visited the events of the Expocentre 74 thousand people visited the trade fair on the Tverskaya Square 1.5 m people took a ride in the Far-Eastern Express in the Moscow metro 3 EEF 2018 Participant Guidebook 2017 DECEMBER 2017 // December 18–19, 2017 // December 25, 2017 To facilitate the development of the Far East, they passed: Days of Japanese and Chinese The Government of Russia investors in the Far East approved the projects federal of the Far East and Baikal Region 10 laws, 46 companies with the total revenue Development Fund including e-visa acts, over RUB 550 bn participated preferences for tourism industry acts Underway in the Far East: In total: 22 federal laws 1 Construction of a new terminal in the 32 projects Khabarovsk airport in cooperation with Chinese com- decrees of the Gov- panies with total investment of 2 Construction of infrastructure for the ernment of Russia, 68 USD 4.2 bn Sakhalin Regional Power Plant 2 including the Complex plan of development for Svobodny 7 projects 3 Construction of two new In total: 121 acts of the government of Russia in cooperation with Japanese motor and railway companies with total investment ferry complexes for the Vanino- Expansion of the Free Port of Vladivostok of USD 215 m Kholmsk ferry landing (to include Uglegorsk, Sakhalin Region) 2018 2017 MARCH Results: // March 4–5, 2018 new plants 117,1% Day of Korean investors 87 launched Investment growth by 2016 in the Far East (average in Russia — 104.4%) plants under Share of investments 75 companies with the total revenue construction in the GRP of the Far 130 over USD 180 bn participated % East In progress: 25 investment projects 2013 2017 1100 Underway in the Far East: with a total cost of >> 6 projects 2% 30% in cooperation with Korean Share of the Far East in direct foreign companies with total investment 3,7RUB trillion investments in Russia of USD 50 m 2018 2018 2018 APRIL MAY JUNE // April 3, 2018 // May 25, 2018 // June 18, 2018 Regions of the Far East made The Government of Russia allocated a breakthrough in the National RUB 55.8 bn for social support of the Rating of Investment Climate new centres of economic growth in the Far East Leaders in growth: 2017 2018 priority First Contracts for “Fish Quotas” measures Khabarovsk Territory 40 18 +22 197 Signed in Far East including the construction of: Kamchatka Territory 68 32 +36 In total during the 1st stage: Amur Region 47 35 +12 26 7 10 new fish-processing plants with total Sakhalin Region 79 37 +42 schools cultural investments of and kindergartens centres +13 RUB 12.4 bn Magadan Region 57 44 9 new vessels of the fishing fleet with 21 28 total investments of medical sports RUB 41 bn institutions objects 4 SEPTEMBER '18 2018 2018 JULY AUGUST // July 3, 2018 // July 19, 2018 // August 3, 2018 Federal law to extend the e-visa The President of Russia Vladimir Putin mechanism to all international signed the Grandfather Clause Act airports of the Far East is signed is the period of guaranteed no- regression of tax conditions, starting from the moment the 10 investors of the Far East obtain years tax preferences Federal law to grant Sovetskaya >40 000 Also, the insurance preferences for the residents Gavan the status of the Free Port is e-visas issued to foreign citizens of ASEZ and the Free Port of Vladivostok were signed prolonged up to 10 years starting from obtain- ing the resident status (7.6% instead of 30%) E-visas are China 15 investment projects are planned for im- The law was drafted to execute the orders of the most popular plementation with total private investments Japan the President of Russia Vladimir Putin given fol- among of more than RUB 54 bn.