Irkutsk
Ulan-Ude

Blagoveshchensk
Chita
Yakutsk

Birobidzhan
Vladivostok
Khabarovsk

Magadan
Yuzhno-Sakhalinsk

Anadyr
Petropavlovsk-
Kamchatsky
Moscow

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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 for a serious test of new economic instruments for regional development. Here are being tested "for strength" and actively created TORES (territories of advanced socio-economic development), and the stimulation of regional investment projects, including tax incentives for business and a reduction in regional energy tariffs.

A whole range of new mechanisms of social and economic development of the Far East has been created
“In two years we have gone through what is called a start-up in business. This was not always an easy period. There was a lot of pessimism. But we overcame disbelief. We have 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 priority development territories, the free port of Vladivostok, support for investment projects outside the TOP, tax incentives, and specialized development institutions. The Eastern Economic Forum was held for the first time.

Together with Yuri Trutnev, they created a professional team of like-minded people. There is a firm belief that new models can successfully develop our Far East, - the minister noted.

Our neighbor is the 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 international best practices. Ensure that the Russian offer to investors can compete globally. It is this logic that underlies such an instrument as advanced development territories (TORs).

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 are of interest to an investor from any country in the world.

Far East Development Corporation - TOP management company

The key subject in this work is the Far East Development Corporation, created by the Russian government, which is the TOP management company and the main counterparty for residents. The corporation already now accepts applications from residents, helps to choose one or another TOP, accompanies the work of enterprises, provides businessmen with everything they need and, importantly, is entitled to defend their interests in court in disputes with authorities, '' said Alexander Galushka.

He also noted that appeals to the Corporation for the Development of the Far East are ongoing. Applications began to be accepted on 17 August. In just two and a half months from the beginning of this work, 71 applications were officially submitted from potential residents of TOPs in 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. New requests are received daily.

Active development of ASEZs in the regions of the Far East

A number of new territories are under development. The largest of the ASEZ will be created in the Amur Region for the projects of Gazprom and Sibur for gas processing and gas chemistry. These are projects of a national scale, the volume of planned investments is significant for any economy in 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 thousand new highly efficient jobs here. These industries - gas processing and gas chemistry - have a large amount of added value, a large multiplier effect, and create high-paying jobs and related industries. I would like to note that the provision of the TOP regime for future plants became decisive for the project participants in making an investment decision to launch the project.

In addition, in the Jewish Autonomous Region, it is planned to create an industrial and logistic ASEZ. Three TOPs will appear in the Sakhalin Region: agricultural, industrial and tourism. In the Khabarovsk Territory, the TOP is planned to be created on the island of Bolshoi Ussuriisky, in the immediate vicinity of Khabarovsk, on the border with neighboring China.
Serious plans in the Primorsky Territory. Here is the TOP in Bolshoy Kamen - on the basis of the Zvezda shipbuilding complex. The volume of anticipated private investment here will be 145 billion rubles. TOP of the Eastern Petrochemical Complex (VNHK), which the head of state Vladimir Putin noted at the Eastern Economic Forum. In September, it was decided in Beijing that the Chinese partners would become the controlling share of this project. The volume of investments in the project is more than 1,3 trillion rubles. And one more TOP is on the Russky Island. To create this TOP is a direct order of the President of Russia.
It is planned that these ASEZs will be created in 2016. The set of projects implemented in the TOP network in the macroregion is actually a new modern industrialization of the Far East.

Support of investment projects

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

This experience is seen as successful; there is a direct order from the President of Russia to further expand this mechanism. A new round of selection of investment projects was announced on October 19, we will sum up the results in mid-November. We assume that we will officially receive the order 20-30 applications for projects in the field of mining, processing, agriculture and fishing, tourism and other industries.

Far East Development Fund

The Far East Development Fund started working this year and selected the first three projects. Now he gives long-term 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 is private money.

Another 16 projects worth 293 billion rubles (of which 24 billion are the fund's investments) are now in the fund's portfolio, and a comprehensive examination is being carried out on them. In addition, the Fund and the Sakhalin Region are now creating the Future Generations Fund.

Capitalization of the Development Fund for the Far East

The Ministry for the Development of the Russian Far East has prepared a bill on additional capitalization due to additional tax receipts in the Far East, now it is being discussed with the Ministry of Finance, and a meeting with the country's leadership is being prepared. We do not make forecasts on the timing, but the President twice - in his message to the Federal Assembly and at the Eastern Economic Forum - addressed this proposal.

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

The agencies have been created by the Russian government, and specialized work is already underway - simultaneously with the solution of organizational and technical issues. The work of organizations like the Investment Promotion Agency is the best world practice, in more than 100 countries such national structures have been created. Most serious international investors are used to this form of attraction. In our case, the agency collects competencies for targeted attracting investors, investment marketing of the Far East, promoting TORs, investment projects, and attracting funding.
The President spoke about the creation of the Human Capital Development Agency at the Eastern Economic Forum. The creation of the agency is primarily aimed at solving two issues: personnel "service" for new economic projects and attracting new residents to the Far East. To this end, all government support measures for labor mobility, housing acquisition, vocational education programs are systematized, and comprehensive support is provided in the "one window" mode for those who move to the Far East.

By the way, in conjunction with the Human Capital Development Agency, another promising and, in many ways, innovative project in the humanitarian sphere is functioning - the Eastern Vector network public platform, designed to stimulate the formation of an active and active civil society in the Far East. The organizational "nucleus" of the project was the commission of the Ministry for the Development of the Russian Far East for the development of public-state cooperation and social partnership, created in September this year. The commission includes representatives of state bodies, public figures and entrepreneurs. The tasks of the commission include providing support to socially significant initiatives in the Far East, as well as to people who propose and implement them.

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

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

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

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

Goals and objectives of the Free Port of Vladivostok

First of all, this is the implementation of the transport, logistics and tourism potential of the region. Attracting to us international flows of goods, capital and people. Now the ministry has developed a technical task and announced a tender for the development of the 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 approaching $ 1 trillion) with our ports in the Pacific. A very serious work is being prepared, which we plan to complete in April 2016.

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

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 a variety of state programs. The Prime Minister identified a specific list of 27 state programs, in which a special Far Eastern section must be formed, filled with measures to ensure the accelerated development of our eastern territories in one direction or another.

This is, first of all, the development of healthcare, housing, transport infrastructure in the Far East, social support for citizens, the development of industry, agriculture, education, culture, and sports.

The Ministry for the Development of the Russian Far East was empowered to coordinate such state programs and coordinate public investments in various areas among themselves. Equally important for integrated development is the fact that we are empowered to coordinate investment programs of state corporations in relation to the Far East.

Volumes of financing

In 2015, the financing of the Far East within the framework of the federal targeted investment program (FAIP), excluding funds for the infrastructure of the Vostochny cosmodrome, amounted to 32,9 billion rubles. If we proceed from the "per capita" calculation, 1,3 times more investments were directed to the Far East than the average in Russia. This is already quite an important groundwork, because quite recently, in a number of significant areas (for example, health care, tourism, culture), funding has multiple times failed to even reach the average Russian level.

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

Far Eastern business incurs high transportation costs

The President instructed the Russian government to develop a set of measures to reduce transport costs for economic 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, among other things, on the analysis of the feasibility of the corresponding tariffs and prices. We hope that effective solutions will be formed.

Fishing and processing of fish in the Far East

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

In October, at a meeting of the State Council, the President supported our proposals to rectify the situation. In particular, we have proposed the principle of "fish catch quotas in exchange for investment", with the construction of a fishing fleet, new processing facilities, and logistics infrastructure designated as priorities for capital investments.

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

We have developed a bill that provides for the provision of forest plots in the Far East without holding auctions on the basis of investment agreements, and we also propose to give timber processing enterprises preferential import duties on unprocessed timber.

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

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

Interesting is the data announced two weeks ago by international experts at a conference in Dalian (China). Based on the real voyage of a COSCO-shipping vessel 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 navigate ships than through the Suez Canal, and in the long term the benefit is 20-30%. We identified the main problems and shortcomings that need to be worked on in order to unlock the potential of the Northern Sea Route.

Bridge Nizhneleninskoe - Tongjiang in the Jewish Autonomous Region

The Chinese side is already under construction. Under the agreement, our neighbors are building about 1800 meters, the Russian side is responsible for just over 300 meters of the bridge and the approaches to it. By the end of the year, construction will begin on our side. Let me remind you that the Russian side will invest 10 billion rubles, of which 2,5 billion rubles will be financed by the Far East Development Fund.

Bill on the allocation of a free hectare of land to anyone in the Far East

The bill has been approved, on November 12 it will be considered by the government for submission to the State Duma. We will start issuing plots next year. The information portal NaDalnyVostok.RF and a XNUMX-hour hotline were launched.

There is a lot of land 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 prohibited.

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