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Nikolay Pegin: "The horizons of international corporation cooperation are expanding"

Director General of the KRKK on the experience of successful negotiations with foreign investors in Kamchatka

The first experience of the WeChat conference, in which the Agency for Investments and Entrepreneurship of the Region and the "Kamchatka Development Corporation" (KRCS) 15 of November got the opportunity to communicate with more than two hundred Chinese entrepreneurs, proved successful. Upon its completion, several companies from the PRC expressed a desire to get acquainted in detail with the projects that were discussed in the framework of the online-dialogue. The Russian participants in the conference were not surprised by the interest shown by foreign partners in investing in the economy of Kamchatka. More and more foreign companies are becoming players of the regional investment market. One of the communication mechanisms that provides communication between foreign entrepreneurs and economic initiatives implemented in the region is JSC KRKK. Corporation CEO Nikolay Pegin tells EastRussia about the development of international contacts.

Nikolay Pegin:
- WeChat conference was an effective tool for communication?

- In addition to representatives of the Development Corporation, Irina Kaftaylova, adviser of the Agency for Investment and Entrepreneurship, took part in the conference. We introduced the partners in the negotiations with the investment potential and resource base of Kamchatka, talked about business preferences created in the region based on federal and regional legislation. Usually it is from such a conversation that contacts with foreign businessmen begin, which escalate, excuse me for the pun, into contracts. Investment.

The letter received by the Corporation after the completion of the Wechat conference from Lichankhenyuan, states that “several Chinese investment organizations do not exclude the possibility of investing in agriculture, tourism, mining, construction of hotels and resorts” . It is proposed to hold a re-conference with "specific individuals interested in cooperation with the Kamchatka region".

- Judging by press reports, recently the contacts of Kamchatka Development Corporation with foreign partners have become intense and productive ...

- Indeed, in 2018, the company holds numerous meetings with foreign companies that show a substantive interest in investing in the economy of Kamchatka, in familiarizing with its industrial, agricultural and resource potentials, with the conditions for doing business in the region.

With full responsibility, I can say that the attention of foreign business to the region is not idle, as well as the fact that to a certain extent it is the result of the work of the Corporation. Using our capabilities inherent in the institute of regional development tools, we carry out a lot of activities aimed at promoting the image of the Kamchatka Territory addressed to the international business community, familiar with the conditions of doing business in our territory, implemented by investment projects. This work actively uses the possibilities of congress and exhibition events. Last year, our representatives conducted work on 63's such sites. We do not reduce its intensity in the current year.

Only in the last two weeks, representatives of the Moscow office of the KRKK were given the opportunity to promote the image of Kamchatka at the Russian-Korean and Russian-Bulgarian business councils, the business forum "New Era of Russian-Turkish Business Relations" and other international events.

Today, the Corporation focuses its activities on the countries of the Asia-Pacific region, which is due to a number of obvious reasons. They are our neighbors, logistics and communications are more accessible. Among the countries of the Asia-Pacific Region, the business of the Republic of Korea and the People's Republic of China shows the greatest interest in Kamchatka.

Entrepreneurs of these two countries started to create companies in the Kamchatka Territory. They have decided on projects in which they intend to invest. The volume of their investments can be very significant for the economy of Kamchatka.

Among the industries that are of interest to foreign entrepreneurs, one of the first places is the mineral and raw materials sector with investment initiatives that are both in the pre-project implementation stage and already running, in which investments are needed to intensify the development of production and the use of innovative technologies.

The second most important in the gradation of the interests of foreign business is the relatively young for the peninsula economy - tourism. Investments are needed in the creation of the hospitality industry, in the formation of a wide infrastructure of the industry, in the organization of new tourism products, and in an increase in the flow of foreign visitors.

The interest of our foreign partners extends to the processing of seafood, to the various components of the transport and logistics system - warehouses, refrigeration facilities. Such a huge layer of Kamchatka investment initiatives are in demand by foreign business.

Today the corporation has signed dozens of agreements with foreign partners. We have contracts that are in the active implementation phase.

- Is it possible, without violating the principles of business confidentiality, to talk about some of the projects on which agreements have been concluded with foreign entrepreneurs?

- Among them is a cycle of contracts with Korean companies to increase the tourist flow of their compatriots to the peninsula. Within the framework of the signed agreements, the Corporation, next week, in conjunction with the regional Agency for Tourism and External Relations and with one of the largest Russian air carriers, conducts a road show for Korean tour operators. We intend to acquaint them with the conditions of winter holidays in Kamchatka. Under this program, a large group of Korean tourists are already scheduled to arrive on the peninsula for March.

With one of the Korean companies, the Corporation has signed agreements to attract investments in the mineral and raw materials sector. With the Korean firm Dong-In Fa Co. Ltd. A contract has been concluded for the development and construction of a sanatorium-type hotel complex in the Paratunka tourism and recreation cluster, which is included in the territory of advanced socio-economic development Kamchatka.

With Chinese investors, we are exploring the possibility of creating an international transport and industrial park and a business incubator on the territory of the region.

In late October, the Corporation, together with the Regional Center for Energy Development and Energy Conservation, held consultations with the Chinese investment company Harbin ZhongJiGuo Investment Corporation. Their result was the signing of an agreement on the development of the concept and construction of the Zhupanovskaya HPP. It will begin to be implemented next year.

- The Corporation emphasizes the vector of international cooperation on contacts with entrepreneurs from the Asia-Pacific countries. Does this mean that entrepreneurs, say from Europe, are outside your professional interests?

- Of course no. In the near future, for example, we look forward to the arrival in Kamchatka of the president and general director of the famous French architectural and design group “Dianeige” Louis Gili. For the first time, he visited the peninsula in the autumn of 2014. At the same time, an agreement was signed with him to create a network of ski resorts in Kamchatka.

The subsequent political events caused by the sanctions policy of the West forced the KRKK and Dianeige to take time out in the development of relations.

This year we resumed consultations with French partners. A new contract has been signed with Dianeige to carry out pre-project work to formulate a strategy for the development of year-round tourism and winter recreation in Kamchatka. Our French partners are committed to formulating a business concept for the creation of ski resorts and other sports and recreation facilities on the territory of the region. It is hoped that our French colleagues will start field work in the very near future.

Summing up, I can say that those horizons of international cooperation of the Corporation are expanding. These positive results of the KRAC can be achieved against the background of a favorable investment climate and unique conditions for business development created by the regional government in the region.
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