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A whole range of new mechanisms of social and economic development of the Far East has been created

Minister of the Russian Federation for the Development of the Far East Alexander Galushka in his interview to Interfax told about the results achieved in two years in the development of the Far Eastern Federal Districts

The territory of the Far East from a certain time has become a place of serious verification of new economic instruments of regional development. Here there is a test of "strength" and actively created TORES (territories of advanced social and economic development), and stimulation of regional investment projects, including tax breaks to business and reduction of regional energy taxes.

A whole range of new mechanisms of social and economic development of the Far East has been created
"In two years, we have passed what is called start-up in business. It was not always a simple period. There was a lot of pessimism. But we broke the unbelief. Formed a legislative base and started an active phase of the practical implementation of all initiatives. A whole range of new mechanisms for social and economic development of the Far East has been created: a network of advanced development territories, a free Vladivostok port, support of investment projects outside the TOP, tax breaks, and profile development institutions. The East Economic Forum was held for the first time.

Together with Yuri Trutnev created a professional team of like-minded people. There was a strong belief that new models could successfully develop our Far East, "the minister said.

Our neighbor is a successfully and dynamically developing Asia-Pacific region (APR). It is logical to focus on this economic power and convert the economic potential of the APR into the development of the Far East.

How to do it? The answer is to create competitive conditions for investment and business in our country. Apply best international practices. To ensure that the Russian offer to investors can compete at the global level. It is this logic that underlies such a tool as the territory of advanced development (TOR).

This is a fundamentally new type of special economic zones. Their goal is practical - to reduce the risks of investments and increase their profitability. These are universal criteria that interest investors from any country in the world.

"Development Corporation of the Far East" - the management company of TOR

The key subject in this work is the Far East Development Corporation JSC, established by the government of Russia, is the ToR managing company and the main counterparty for residents. The corporation is already accepting applications from residents, helping to choose one or another TOR, accompanying the work of enterprises, providing businessmen with everything they need and, importantly, are entitled to defend their interests in court in disputes with the authorities, said Alexander Galushka.

He also noted that appeals to the Corporation for the Development of the Far East are constantly taking place. Applications began to be accepted from 17 August. In just two and a half months since the beginning of this work, 71 has officially filed an application from potential TOR residents for the amount of 262,9 billion rubles of direct investment. Of these, the first 6 investment agreements have already been signed for 15,7 billion rubles. Every day new appeals come.

Active development of TORs in the regions of the Far East

A number of new territories are under development. The largest of the TORs will be created in the Amur Region for the projects of Gazprom and Sibur for gas processing and gas chemistry. These are projects of national scale, the volume of planned investments is significant for any economy of the world. On the part of Gazprom, 690,2 billion rubles will be invested, on the part of Sibur - 694,2 billion rubles. It is planned to create 4,5 thousands of new high-performance jobs. These industries - gas processing and gas chemistry - have a large amount of value added, a large multiplier effect, create high-paying jobs and related production. I will note that the provision of an ABP mode for future plants has become decisive for the project participants in making an investment decision on the launch of the project.

In addition, in the Jewish Autonomous Region, it is planned to create a TOP of industrial-logistic orientation. In the Sakhalin region there will be three TOPs: agricultural, industrial and tourist destinations. In the Khabarovsk Territory, it is planned to create a TOP on the island of Bolshoy Ussuriysk, in the immediate vicinity of Khabarovsk, on the border with neighboring China.
Serious plans in the Primorsky Territory. Here, and TOP in the Great Stone - on the basis of the shipbuilding complex "Star". The volume of estimated private investment will amount to 145 billion rubles. TOP of the Eastern petrochemical complex (VNKhK), which the head of state Vladimir Putin marked at the Eastern Economic Forum. In September, it was decided in Beijing that the Chinese partners will enter the control share of this project. The volume of the project's investments is more than 1,3 trillion rubles. And one more TOP - on Russky Island. To create this TOP is a direct instruction of the President of Russia.
It is planned that these TORs will be created in 2016 year. The combination of projects implemented in the network of PDA in the macro-region is actually a new modern industrialization of the Far East.

Support of investment projects

There are two directions. First, there is a specially developed methodology for targeted infrastructure support of investment projects. Any investor whose project meets fairly transparent criteria can take part in the selection of projects for granting state subsidies for the construction of the necessary infrastructure for his project. Practice showed a high interest of investors in the new mechanism: in the first selection more than 30 applications were submitted, of which the six most effective were selected. The first funding for projects is already in the current year; In total, state infrastructure support is 13,8 billion rubles. This will allow private investors to implement projects with a total value of over 128 billion rubles.

This experience seems successful, there is a direct instruction of the Russian president to extend this mechanism further. A new round of selection of investment projects announced 19 October, the results will be summed up in mid-November. We assume that we will receive formal orders 20-30 applications for projects in the field of mining industry, processing, agriculture and fisheries, tourism and other industries.

Far East Development Fund

The Far Eastern Development Fund has earned this year, selected the first three projects. Now gives long money at 10,5% per annum, is working to reduce the rate. By the end of the year, it is planned to approve five more projects for 111 billion rubles, of which 8,5 billion are investments of the fund, the rest are private money.

Another 16 projects for 293 billion rubles (of which 24 billion is the fund's investment) are currently in the portfolio of the fund, they are subject to a comprehensive examination. In addition, now the foundation and the Sakhalin Region are creating a "Fund for Future Generations".

Capitalization of the Development Fund for the Far East

Minvostokrazvitiya drafted a bill on capitalization due to additional taxes in the Far East, now it is being discussed with the Ministry of Finance, a meeting is being prepared by the country's leadership. Forecasts on the timing we do not, but the president twice - in a message to the Federal Assembly and the Eastern Economic Forum - appealed to this proposal.

Investment Promotion Agency and Human Capital Development Agency in the Far East

The agencies are created by the Russian government, the core work is already under way - simultaneously with the solution of organizational and technical issues. The work of organizations like the Investment Promotion Agency is the best world practice, more than in 100 countries such national structures have been created. Most serious international investors are used to this form of attraction. In our case, the agency gathers competencies to target investors, investment marketing in the Far East, promote TORs, investment projects, attract financing.
The President of the Eastern Economic Forum spoke about the creation of the Agency for the Development of Human Capital. The creation of the agency solves, first of all, two issues: personnel "service" for new economic projects and attraction of new residents to the Far East. To this end, all government support measures for labor mobility, housing acquisition, vocational education programs are systematized and integrated one-stop support for those who move to the Far East is provided.

By the way, in conjunction with the Human Capital Development Agency, another promising and, in many ways, innovative project in the humanitarian sphere - the network social platform "Eastern Vector", designed to stimulate the formation of an active and active civil society in the Far East. Organizational "core" of the project was the Commission of the Ministry of Regional Development of Russia on the development of public-state cooperation and social partnership, established in September this year. The commission includes representatives of state bodies, public figures, and entrepreneurs. The task of the commission is to support socially significant initiatives in the Far East, as well as to people who offer and implement them.

The interaction between the Agency for Human Capital Development and the "Eastern Vector" project has already borne fruit - a service for the adaptation and support of migrant workers has been created, which has begun to process applications of citizens wishing to find employment in the Far East.

15 areas of Primorye officially received the status of a free port

The law on the free port of Vladivostok came into force on 12 October, and as of early November, there have already been six official applications from potential residents for a total of more than 40,3 billion rubles. Again, the process is dynamic, you can apply through the website of the Corporation for Development of the Far East, the response, like in the TOPs, is guaranteed within 24 hours.

In accordance with the instruction of the President, we have prepared a bill to expand the zone of free ports in the Far East. The key ports on which the regime of the free port law are proposed to be extended are in the Khabarovsk Territory (Sovetskaya Gavan, Vanino, Nikolayevsk-on-Amur), it is also Petropavlovsk-Kamchatsky on Kamchatka, the ports of Chukotka and Sakhalin.

Goals and objectives of the Free Port of Vladivostok

First of all, this is the realization of the transport-logistic and tourist potential of the region. Attracting us to the international flow of goods, capital and people. Now the ministry has developed a technical task and announced a competition for the development of international transport corridors "Primorye-1" and "Primorye-2", these are arteries that will connect the provinces of Northeast China (whose GRP, by the way, is close to 1 trillion US dollars) our ports on the Pacific. A very serious job is being prepared, which we plan to complete in April 2016.

On this issue, we work with both Chinese partners and world-class consultants, because this project requires an international framework. Interest in these transport corridors, in addition to China, is also in Japan and the Republic of Korea.

Financing of the Far East from the federal budget

The President of the country instructed to strictly adhere to the priority of the development of the Far East in various state programs. The Prime Minister identified a specific list of 27 government programs, which must necessarily form a special Far Eastern section filled with activities that ensure the accelerated development of our eastern territories in one direction or another.

First of all, this is the development of health, housing, transport infrastructure, social support of citizens, development of industry, agriculture, education, culture, sports in the Far East.

Minvostokrazvitiya has the authority to coordinate such state programs and coordinate among themselves state investments in various areas. Equally important for the integrated development is the fact that we are endowed with the authority to coordinate investment programs of state corporations in relation to the Far East.

Volumes of financing

In 2015, financing of the Far East within the framework of the federal targeted investment program (FTIP) excluding funds for the infrastructure of the spaceport Vostochny amounted to 32,9 billion rubles. If we proceed from the per capita calculation, more investments are directed to the Far East than the average for Russia in 1,3. This is already quite an important reserve, as recently in a number of significant areas (for example, healthcare, tourism, culture), funding has not been even a fraction of the national average.

Moreover, the plan for 2016 envisages an increase in the volume of budget investments directed to the Far East, 2,3 times relative to the volumes of 2015. For example, through the efforts of the Ministry of Economic Development of Russia, the previously envisaged amounts of funding for the construction and reconstruction of federal highways Amur, Lena, Kolyma, Ussuri, and Vilyui in excess of 11 billion rubles were increased.

Far Eastern business incurs high transport costs

The President instructed the Russian government to develop a set of measures to reduce the transportation costs of business entities operating in the Far East. This work should be carried out by the Federal Antimonopoly Service by March next year, it will be based, inter alia, on an analysis of the reasonableness of the relevant tariffs and prices. We hope that effective solutions will be formed.

Extraction and processing of fish in the Far East

The Far East is 82% of the entire resource base of Russian fisheries. At the same time, 2,7 million tons per year are actually produced, although we can produce 3,9 million tons. After the state measures of support introduced in 2007, the situation in the sector improved, but there was no more fish in the country. The fact is that many fish are exported, and 90% of products are frozen fish, that is, a product with low added value. At us fishing fleet is worn out, and incomes of the budget from branch have fallen from 2007 year in 1,5 times up to 5,8 billion rubles.

In October, the president at the meeting of the State Council supported our proposals to improve the situation. In particular, we proposed the principle of "quotas for fishing in exchange for investment", while the construction of a fishing fleet, new processing capacities, and a logistics infrastructure are designated as priorities for capital investments.

We propose the same principle for forest resources, which in the Far East are many (25% of all Russian timber reserves or 20,5 billion cubic meters): to give access to their development in exchange for timber processing on the territory of the country.

We have developed a draft law that provides for the provision of forest plots in the Far East without holding auctions on the basis of investment agreements, and also offer preferential import duties on untreated timber to wood processing enterprises.

The financial and economic model of development of the Northern Sea Route

The model will be ready for 1 July next year. Undoubtedly, we will attract the best world experts on this topic. We work with partners from China, Korea, Japan, Europe. One of the tasks is to determine how to form a global competitive transit route, primarily for container transportation.

The data sounded two weeks ago by international experts at a conference in Dalian (China) are interesting. Based on the real voyage of the COSCO-shipping company from Dalian to Varberg (Sweden) along the Northern Sea Route, international experts concluded that in this way at least 10-15% It is more economical to conduct vessels than through the Suez Canal, and in the long term the profit is 20-30%. Identified the main problems and shortcomings, over which it is necessary to work, that would reveal the potential of the Northern Sea Route.

Nizhneleninskoe - Tongjiang Bridge in the Jewish Autonomous Region

The Chinese side is already under construction. By agreement, our neighbors are building about 1800 meters, the Russian side is responsible for a little more than 300 meters of the bridge and the approaches to it. By the end of the year, construction will start from our side. Let me remind you that from the Russian side, investments will amount to 10 billion rubles, of which 2,5 billion rubles will be financed by the Development Fund for the Far East.

The bill on the allocation of free hectares of land to anyone who wishes in the Far East

The bill is coordinated, 12 November will be considered by the government for inclusion in the State Duma. We will start plotting the land next year. The information portal Nadaliy Vostok.RF and the round-the-clock hotline have been launched.

There are many lands in the Far East, it is empty. It is necessary to give this land to people as an opportunity to realize themselves and do everything on it that is not forbidden.

A poll by VTsIOM showed that 20% of citizens are ready to consider the possibility of moving to the Far East, provided that the land is provided free of charge. Among young people up to 35 years - 30%. Obviously, this will not happen in a year or two. I am sure that this will be a long-term project. But even if it is not 30 million people, and an order of magnitude less, then this is a good start.
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