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Significant contribution

On which investors does the stake Primorsky Krai

Significant contribution

About foreign investments in Primorye was told by Andrey Aksenov, director of the Investment Agency of Primorsky Krai.

- Andrey Anatolyevich, what is the structure of investments in the Primorsky region? What is holding back their influx?

- In 2013, the structure of investment in fixed assets has changed in Primorye. Now commercial enterprises make up 72%, including 52% are investments of large and medium-sized enterprises. Budget investments in fixed assets decreased to 28%. The sectoral structure of investment is changing in favor of manufacturing industries.

The volume of foreign investment is increasing. Last year, they amounted to 1712,7 million dollars - an unprecedented increase in 4,1 times. Including foreign direct investment reached 1104 million.

We expect that investments in the region will be mixed - public and private, when projects are implemented on the principle of public-private partnership (PPP). Private investments will be represented by foreign capital and Russian investments. The basic partners of the region are Japan, Germany, China, and the Republic of Korea. The bulk of these investments - 67,9% - accounted for manufacturing and financial services - 25,7%.

Japanese investors are very active. As a result of 2013, the volume of Japanese investments in the economy of Primorye amounted to 1171,7 million dollars. Another key partner is Germany with an investment of 439,9 million dollars. China and South Korea are stepping up their efforts. Last year the investments of these countries amounted to 55,5 million dollars.

As factors that somewhat restrain the inflow of foreign investment in Russia (and in Primorye in particular), it is worth highlighting the infrastructural constraints, including transport problems, the vastness of the territory and some difficulties in managing business processes. In addition, investors are afraid of risk. It's clear. But if investors understand that laws exist in the region that promote business development, conditions for project implementation are created, high economic growth rates are observed, there are service structures that will help solve investors' problems as soon as possible, then the investment risk will automatically decrease.

- How exactly are foreign investors lured into Primorye?

- I want to note that the Governor of Primorsky Krai V.V. Miklushevsky pays special attention to the creation of a positive investment climate in Primorye. A lot is being done in this area. In Primorye, the implementation of the Standard of the Executive Authorities of the Subject of the Russian Federation on Ensuring a Favorable Investment Climate has been successfully completed. This is already a guarantee that the basic conditions for conducting business and attracting investors have been created.

In the region, the Investment Strategy has been adopted before the year 2018, in which priorities, tasks and development prospects are defined simply and clearly. There is a pool of state programs in the Primorsky Krai in various sectors of the economy that clearly define goals, objectives, target indicators, volumes and sources of funding for the program, as well as the conditions for participation in them. Laws on tax privileges granted at the regional level have been adopted.

When entering the region, it is important for the investor to understand on which platforms he can implement the project. Currently, Primorye has a full set of proposals for creating areas of advanced development. In total, there are eight. They will become the pivot for the development of Primorye, industrial parks, port and scientific and educational zones will be concentrated in them. Work on the creation of concepts for the development of a number of zones is already underway. For example, the Nomura Research Institute is implementing a project to create a fishing industry complex in Primorye. Presumably, it will be located on the territory of Shkotovsky municipal district, where a multifunctional port is planned.

The procedures for entering the region and organizing business there should be understandable and simple. To provide services to investors in support of investment projects in Primorsky Krai, an investment infrastructure has been created and successfully functioning: the Investment Agency, the Development Corporation, the Council for Attracting Investments under the Governor of Primorsky Krai. Such development institutions create the most comfortable conditions for investors. It becomes clear who to turn to to get answers to all questions about the investment process in the region. The Investment Agency is a "single window" for the investor, by contacting which it is possible to obtain a full range of services to support the investment project.

- What programs have the Primorsky Krai Investment Agency already implemented in almost a year and a half of its work? Have the priorities that were initially chosen remained valid?

- The Primorsky Territory Administration is the founder of our Agency. In 2013, the Agency together with the executive authorities of the Primorsky Territory formed a plan for the creation of investment objects and infrastructure facilities in the region. According to the plan in the region, it is planned to implement more than 160 investment objects worth more than 4 trillion rubles and more 280 infrastructure facilities for a total amount of more than 300 billion rubles.

In 2013, 23 companies applied to the Agency, which submitted investment applications. The total amount of investments is more than 67 billion rubles, including more than 26 billion rubles - these are investments that the organizers of investment projects who are ready to invest in the economy of the region. Among them is worth mentioning LLC "Grand Development", intent to build a cottage village "Raduzhny". This project is planned to be implemented in full before the year 2020. In fact, this project is a project of integrated development of the territory, where not only the construction of housing is envisaged, but also the creation of a modern recreation zone, a zone for the prospective development of business buildings. Another project is the construction of the production and logistics complex "Yankovsky", organized by LLC "VL-Park". The meaning of the project is to create high-quality warehouse space of a large area.

Together with the executive authorities and development institutions, we have established procedures for interaction with investors, taking into account the requirements of the Standard for the Activities of the Executive Authorities of the Subjects of the Russian Federation on Providing a Favorable Investment Climate in Primorye. One of the procedures that an investor is going through is a public examination of the investment project in the profile public expert councils. In 2013, with the participation of the Agency for discussion on public expert councils, 13 projects for a total amount of more than 250 billion rubles have been submitted, more than 193 billion rubles from them are investments that the organizers of investment projects are ready to invest in the region's economy. Among these projects are those organizers who applied to the Agency with the investment application, and those who announced their project before the creation of the Investment Agency. Here are a few projects that, with the Agency's participation, were submitted for public review: "Modernization of the sugar factory" Primorsky Sugar "LLC's processing of sugar beet in the amount of 6000 t per day and 850 t per day of raw sugar (organizer of the project" Primorsky Sugar "LLC ); "The phased construction of a group of pig complexes with a total capacity of about 500 thousand heads per year, including the organization of related industries (organized by LLC Management Company" Mercy Invest Group "); "Creation of the Center for Ecological and Recreational Tourism" ECOTERRA "(the organizer of the project LLC" Engineering Consulting Company ") and others. According to the projects listed by me, the necessary amount for the implementation of the project is available, that is, these companies are essentially investors.

The agency is also involved in the process of creating concepts, feasibility studies and other documentation for the formation of industrial sites and technology parks. The first in a series of such projects was the construction of a fishing industry complex in Primorsky Krai. 31 January, we signed a contract with the Nomura Research Institute (a branch in Moscow) for the development of a concept, preliminary feasibility study and an investment proposal for the construction of a fishing industry complex in the framework of the creation of a fisheries cluster in Primorsky Krai. In 5 months after the start of work, we will receive the necessary package of documents. However, this is only the first stage of creating a cluster. Then follow the design and construction work.

- How many projects are “in work” at the moment, which of them do you consider the most ambitious and promising? In which regions, except Primorye, will they be implemented?

- The Agency was "inherited" in the creation of a number of projects that accompanies, and acquired new ones. Now such projects are more than 80. For 1 quarter 2014 year investment applications to the Agency filed another 11 companies.

So, in early April this year, a business visit of the leadership of South Korean companies Ph Holding Ltd. And IL Jin International Co., Ltd. In the Primorsky Territory. Investors are expressing their intention to build a new sea port in the south of the Primorsky Krai with a container terminal that allows multimodal transport by up to 7 million containers per year. In addition, the South Korean company Ph Holding Ltd. Considers Primorsky Krai as the best site for the creation of an innovative agricultural complex for the cultivation of potato seeds. At present, memorandums of cooperation have been signed between the agency and the companies to facilitate the implementation of the project for the construction of a new port and the creation of an innovative agricultural complex for the cultivation of potato seeds in Primorye.

OOO "Oil Extraction Plant" Yug Rusi "plans to build an oil extraction plant with an output of 2000 t per day. The volume of investments is about 2 billion rubles. All the funds necessary for the implementation of the project are available. We need a plot of land with a suitable infrastructure. His selection is handled by the Agency.

- Does the Agency have recipes for fighting bureaucracy, which so scares potential investors, especially foreign ones?

- It is to reduce administrative barriers, an investment infrastructure is created. Including our Agency. Our task is to do everything possible to ensure that the system of interaction between the investor and the government is as clear and simple as possible. The introduction of the Standard for the activities of the executive authorities of the constituent entities of the Russian Federation to ensure a favorable investment climate in Primorye, the improvement of legislation in favor of protecting the interests of the investor, working with the investor on the principle of "one window" - this is far from the final set of measures that can reduce administrative barriers and make stay Investor in the region as comfortable as possible.

- In your opinion, are the regions of the Far East capable of making a breakthrough in the foreseeable future (as the first persons of the country designated this task)?

- I am by nature optimistic and I am confident that the Far Eastern region will become an important industrial and cultural center of Russia in the east. Well, if we look at the facts, we all are witnessing that the Government of the Russian Federation is currently undertaking a number of important steps to develop the Far East. This is in his program statements the President of the Russian Federation V.V. Putin. In particular, in the message to the Federal Assembly, he voiced the idea of ​​creating territories for advanced development with special conditions for the organization of production, including those oriented to export.

A number of quite concrete practical steps are being taken aimed at the development of the Far East and Siberia. In each subject of the FEFD, the territories of priority development are determined, which will become the basis of the new economy of the Far East. As far as I know, 23 ТОР can be created in the Far East region. Even for such a large region, the region is a sufficient number of zones that, if effectively managed, can become points of economic growth.

- On what foreign investors should you bet not only Primorye, but the whole of the Far East?

- China, the Republic of Korea, Japan show great interest in cooperation with the Russian Far East. We clearly observe this in the Primorsky Territory. Territories of advanced development, which are proposed by Primorsky Krai, already have anchor investors. For example, Melco and Naga Corporation have already signed an investment agreement on investing in the Integrated Entertainment Zone Primorje more than 1 billion. An anchor investor of Agroinvest LLC with an investment of 12 billion rubles has been identified in the Mikhailovskoye agro-industrial park, and the potential owner of the park is OOO Rusagro Group of Companies with a project to create a meat-breeding complex and a volume of investments of 15 billion rubles. Potential investors may be Sumitomo Mitsui Rus Bank in the transport-logistic and industrial park in Nadezhdinsky district; Daewoo International Corporation; Sumitomo Corporation; Bank of Tokio-Mitsubishi. And these are just a few examples.

Regarding the development of other subjects of the FEFD, I can say that everyone has potential. For example, in the Khabarovsk Territory there are opportunities for the creation of an aviation cluster and the Vanino-Sovetsko-Gavansky transport and industrial hub. In the Amur Region, the Amur Agrarian-Industrial Zone has good prospects, as well as the development of the space industry. Sakhalin Oblast is likely to use its competitive advantages in the field of fisheries and mariculture. Another project is an industrial park, including a timber processing complex and peat processing. The Republic of Sakha (Yakutia) traditionally specializes in diamond production. The issue of creating a jewelry-polishing park on the territory of the republic is being discussed. In general, each subject of the FEFD has its own perspectives and with the proper use of existing competitive advantages can achieve tangible results.   

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