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Alexander Khoroshavin offered Korean investors new opportunities for cooperation with Sakhalin Oblast
The Governor of the Sakhalin Region, Alexander Khoroshavin, as part of the official Russian delegation headed by Deputy Prime Minister of the Russian Federation - Plenipotentiary of the President of the Russian Federation in the Far Eastern Federal District Yuri Trutnev, takes part in the Russian-Korean Economic Forum "Invest in the Far East!" ... This was reported by the press service of the Sakhalin Region Administration.
Today at the plenary session of the forum, Governor Alexander Khoroshavin said: Sakhalin today provides about a third of the total volume of Russia's foreign trade turnover with the Republic of Korea, this year it will exceed 7 billion US dollars.
According to the head of the region, South Korea is one of the strategic partners of the island region. "At the heart of mutually beneficial cooperation lie territorial proximity, direct cargo and passenger shipments by air and sea, the availability of an economically active Korean diaspora, as well as the complementarity of our economies," the governor emphasized.
Sakhalin exports to Korea at 95% consists of mineral resources - fish products, oil, liquefied natural gas, coal. In the region, cars, equipment, metal products, as well as materials used in offshore projects are imported from the neighbors.
"At the beginning of 2014 year in the economy of the island region, about 130 million US dollars of Korean investments have been accumulated. Korean capital is involved in construction, coal mining, fishing industry, wholesale and retail trade, manufacturing and transportation. We are talking about the work of the order of 100 enterprises, including branches and representative offices of large companies of the Republic of Korea, "said the governor.
In the oil and gas industry, Korean business is actively participating in the offshore projects of Sakhalin-1 and Sakhalin-2 as contractors and subcontractors. In June of this year, the largest in the world sea platform Berkut was commissioned at the Arkutun-Dagi field developed under the Sakhalin-1 project. Its upper structures were erected at the South Korean shipyards "Daewoo Shipbuilding".
Today, Alexander Khoroshavin offered new opportunities for cooperation to Korean investors, speaking at the plenary session of the forum "Trade and Investment" on the topic: "Sakhalin Oblast-the Republic of Korea: Priorities for Bilateral Cooperation".
In his message, the governor noted that foreign partners of the Sakhalin region can take part in the implementation of 75 investment projects and initiatives currently available in the region's assets. Their total cost is about 50 billion US dollars.
7 projects are aimed at increasing the production and export of fuel and energy resources. In particular, we are talking about the construction of the 3 line of the LNG plant within the Sakhalin-2 project, the new LNG plant on the western coast of Sakhalin by Rosneft and Exxon, the largest power station on the island, Sakhalinskaya GRES-2, and development of offshore projects under the general name "Sakhalin".
According to him, investment in the development of coastal infrastructure, processing of fish and seafood can also become another promising area of cooperation with Korean partners. In total, in the fishing industry of the Sakhalin Oblast, 13 investment projects for the total amount of about 70 million US dollars are planned for implementation.
- As for the effects from their implementation, we forecast a significant increase in the volume of production and export of liquefied natural gas, coal, the commissioning of new energy capacities, including for the organization of electricity supplies abroad within the energy bridge or as it is called - the Asian energy super ring, - said Alexander Khoroshavin.
A number of business projects are related to the modernization of transport infrastructure. The joint venture SASCO International Shipping, founded by the Sakhalin Shipping Company on the Russian side, allowed the organization of sea container transportation along the routes Busan-Korsakov and Busan-Nakhodka. This allowed increasing the freight turnover between the Far Eastern regions of Russia and South Korea. And Kemto Construction became the first South Korean company to take part in the construction of a deep-water jetty on the island of Iturup as a subcontractor.
Now Korean companies are designing a new airport complex for Yuzhno-Sakhalinsk. Korean investors are also likely to invest in the construction of the terminal. There are already examples of the participation of Korean business in the construction sites of the capital of Sakhalin: this year two residential complexes and one multifunctional office center were put into operation; continues to build a new residential quarter.
Another sphere of mutually beneficial cooperation can be the sphere of processing and utilization of solid household waste. As noted by Alexander Horoshavin, Korean best practices could be used on island land.
- We attach special importance to the development of the tourist potential of the Sakhalin region. We have every opportunity to make the region a popular sports and recreational area of the international level, "the governor said, formulating the following proposal to investors. - The sports and tourist complex "Mountain air" is successfully operating on Sakhalin. To date, there is all the necessary infrastructure for mountain skiing and snowboarding. We plan to go further and create on the basis of this object a tourist cluster. This will provide even better conditions for recreation of residents of the Sakhalin region, nearby regions, as well as foreign tourists. In addition, Sakhalin is the optimal platform for training Russian athletes for major competitions in Asia, including the 2018 Olympics in Korea. The Korean business has a lot of experience in implementing similar projects. I think that it can become a good basis for the development of investment cooperation in this direction.
Alexander Khoroshavin noted that the search and attraction of foreign capital is one of the key tasks of the regional government. From 85 of the constituent entities of the Russian Federation, the Sakhalin Oblast is currently among the top five in the investment climate.
A system of incentive measures for investors, including foreign ones, has been formed in the region, which is implemented through a number of preferences for business: tax incentives, state guarantees, budget investments and subsidies. Another effective instrument that stimulates the attraction of foreign capital is the Sakhalin Oblast Investment Fund in the amount of more than 2 billion rubles. Its funds are intended for the implementation of large projects on the principles of public-private partnership.
- I would like to especially highlight such a direction in our work as the formation of territories for advanced development. They are created on the initiative of the Government of the Russian Federation and are called upon to ensure economic and social recovery in the Far Eastern regions. The Sakhalin Oblast, along with other Far Eastern subjects, has become actively involved in this process. Together with the Russian Ministry of Territorial Development we are considering sites for the creation of TORs, "said the governor.
He added that the Republic of Korea has tremendous experience in this direction, which is of interest in the creation and operation of the free economic zone of Incheon. Thanks to the implementation of this project, the city became the most important transport hub of the country, turned into an international business center centered around the high-tech project of New Songdo City.
- We want to learn more about this best practice. Next year we plan to sign the Cooperation Agreement with the Incheon City Hall and intensify our work in this direction, - said Alexander Khoroshavin.
The governor emphasized that today it is necessary to use more actively the existing prerequisites for building up and expanding cooperation between the Government of the Sakhalin Oblast and the Republic of Korea in various spheres of the economy. The authorities of the island region, he added, will be doing this in a substantive manner.
Today Alexander Khoroshavin also took part in the meeting of the Deputy Prime Minister of the Russian Federation - Plenipotentiary Representative of the President of the Russian Federation in the Far Eastern Federal District Yuri Trutnev with the leadership of the Korean Agency for Trade and Investment Promotion (KOTRA).