MONTHLY INFORMATION DIGEST

ECONOMIC DEVELOPMENT OF
THE FAR EAST
August 2020

KEY TOPICS• “VOSTOK” All-RussianYouth EducationalForum•Mikhail Mishustin:launch of Baimsky plantand mine raised copper
production volumes 15–20%•Federal support led toalmost 60 thousand
new jobs in the FarEast

EASTERN ECONOMIC FORUM EVENTS
31 August 2020, OTV“Vostok” All-Russian Youth Educational Forum took place in Vladivostok
This year, the Forum offered two formats – the online one on the special Vostok platform on 3–17 August
and the offline one in the Far Eastern Federal University on 22–29 August. Participants of the latter one included
150 young people from all over Russia, who scored most in the online event rating system.
otvprim.tv/society/primorskij-kraj_31.08.2020_89063_molodezhnyj-forum-vostok-zavershilsja-vovladivostoke.html

17 August 2020, Vesti Primorya

EEF and Kim Jong-un’s visit to Vladivostok spurred media interest to Primorye
Dow Jones and Smyslografia analytical agency (part of the AGT Consulting Group) published the rating ofRussian regions as perceived by leading global media in 2019. Primorye Territory joined Top 10. Traditionally,
positive newsworthy events related to Russian regions include news about the fuel and energy complex, speechesof the Russian President, as well as a whole range of international athletic events. Primorye Territory’s position in
the rating was driven by the EEF 2019 involving Prime Ministers of India and Japan, as well as negotiations between
Vladimir Putin and Kim Jong-un in Vladivostok.
vestiprim.ru/news/ptrnews/95719-vjef-i-vizit-kim-chen-yna-vo-vladivostok-podnjali-interes-zarubezhnyh-smi-kprimorju.html

6 August 2020, Business FMRoscongress Foundation and Far East Development Corporation signed a cooperationagreement
In the Far Eastern Federal District and Arctic Zone of the Russian Federation, partnering organizations will
establish cooperation with representatives of Russian regions, authorized regional authorities and promote
promising investment and business projects that require external financing. A permanent working group will
systemize these efforts. Cooperation results will be published in news outlets and presented annually at the EEF
in Vladivostok. This cooperation agreement became effective on 6 August 2020 and is valid until 31 December2021.

bfm.ru/news/450186

STATE POLICY IN THE FAR EAST
19 August 2020, Novosti Vladivostoka

Primorye Territory government and Synergy Corporation signed a cooperationagreement
The signing ceremony was attended by Deputy Chairman of Primorye Territory government Konstantin
Shestakov, Acting Deputy CEO of the Far East Export and Investment Agency Alikhan Khashiyev, and Vice
President for Investment Policy and Government Relations Olga Grishchenko.
This agreement provides for cooperation in developing economic and human resources potential of the Far East,
social and youth policies, secondary and higher education, and retraining. The parties also agreed to join efforts inpromoting entrepreneurship and increasing awareness about government measures to support business.

vladivostok-news.net/society/2020/08/19/218527.html
18 August 2020, TASS

Mikhail Mishustin announced an upcoming approval of the Far East Development
programme until 2035
Russian Prime Minister noted that the industrial growth in the Far Eastern Federal District is twice as high as
on average in Russia. Mikhail Mishustin emphasized competitive advantages of the Far Eastern regions. They
include unique geography and nature, large mineral deposits, opportunities to develop large industrial centres andlarge logistics corridors across Eurasia.

tass.ru/ekonomika/9223873
13 August 2020, TASS

Mikhail Mishustin announced copper production volumes in Russia went up 15–20% after
the launch of Baimsky Processing Plant and Mine
Prime Minister of Russia emphasized that this zone is among the five largest copper deposits in the world
and contains significant reserves of gold, silver, and molybdenum. Exploration of the deposit will support thedevelopment of the whole Chukotka Autonomous District. It will help speed up achievement of federal goals, suchas increasing the cargo turnover of the Northern Sea Route and the development of the Arctic zone as a whole.
The agreement on the investment project entitled ‘Exploration of deposits in the Baimsky Ore Zone’ was signed at
the EEF in September 2018. The project includes a mining and processing plant, as well as all the necessary
infrastructure.

tass.ru/ekonomika/9188441
7 August 2020, Regnum News Agency

Kamchatka asks the Government to keep energy tariffs in the Far Eastern Federal District
down to Russia’s average“Without this programme, today most of our operations would pay for electric energy based on its generation
cost, which is roughly RUB 15 per kWh,” said Dmitry Korostelyov, Acting Deputy Chairman of Kamchatka Territory
Government. Presently, Kamchatka’s operations pay RUB 6.78 per kWh. Local agricultural companies get aregional compensation for electric energy in the amount of RUB 300 million annually. The energy tariff for local
residents has been stable since 2016 and is RUB 4.68.
Russian President ordered to develop the national programme for the Far East Development until 2025 in
September 2018.

regnum.ru/news/3030817.html

ECONOMY OF THE FAR EAST
18 August 2020, TASS

Almost 60 thousand new jobs created in the Far East through federal support
As of today, state support measures helped create almost 60 thousand new jobs at 330 new facilities, while
the total amount of investment exceeded RUB 1 trillion. Over the last five years, the cumulative industrial growth inthe Far East reached 32.4%, while it’s 13.9% on average in Russia. The forecasts of the Ministry for theDevelopment of the Far East and Arctic indicate that by 2025 the number of new facilities will go up to at least 1.2
thousand, with over 100 thousand new jobs and over RUB 3 trillion of investment.

tass.ru/ekonomika/9223985

18 August 2020, RIA Novosti

Amur Gas Chemical Complex: the project commenced
The first test pile went into the ground at the complex construction site. The project provides for constructing
a base polymer complex in Amur Region. Its total capacity will reach 2.7 mln. tonnes annually: 2.3 mln. tonnes ofpolyethylene and 400 thousand tonnes of polypropylene. Total budget of constructing Amur Gas Chemical Complexis estimated at USD 10–11 billion.

ria.ru/20200818/1575918466.html
14 August 2020, TASSFar East small and medium businesses can get up to RUB 1 mln. for online export trade
On top of that, entrepreneurs will be able to get online consultations on entering international online platforms.
“Products of many Far Eastern businesses comply with high quality standards and can be competitive in many
international markets, especially in Asia. I hope that these new options will help small and medium businesses
expand their supply geography and go beyond the Far East and the Arctic,” noted Alexei Chekunkov, CEO of theFar East Development Fund.

tass.ru/msp/9197379
3 August 2020, RIA PrimaMedia Vladivostok

A cruise company will be created to develop tourism in the Far East
New cruise itineraries will include Kamchatka, Sakhalin, Kuril Islands, Commander Islands, Wrangel Island,and other Far Eastern territories. Regions of the Far Eastern Federal District are preparing their suggestions forregular cruises organization.

primamedia.ru/news/978964/

NEW MECHANISMS FOR THE FARDEVELOPMENT: SUCCESS STORIES

EAST

17 August 2020, Lenta.Ru

The Far East intends to launch unmanned aerial services
Sakhalin Region will be the first region to launch unmanned aerial services. It was announced by the Far
East Investment and Export Agency. The plan is to start aerial services for pollination and watering, as well as forproviding FPL services to federal postal and e-commerce services. If this project proves to be successful, it will belaunched in other Far Eastern regions.

lenta.ru/news/2020/08/17/dvcifr/
5 August 2020, TASSA ferry line between Primorye, the Republic of Korea, and Japan will be launched before
2021The project targets Korean tourists that would like to visit Vladivostok. At the same time, the ferry will also be
used for cargo transportation. Hanchang Ferry Cruise (Korea) plans to launch a new ferry line before 2021. It willconnect Primorye Territory with Sokcho-si (the Republic of Korea) and Hokkaido (Japan). Earlier, this plan wasendorsed by the leadership of the three countries.

tass.ru/v-strane/9125491
4 August 2020, TASS

Ministry for the Development of the Far East and Arctic will develop innovation potential ofthe Far Eastern Federal District together with the Cluster Association
These cooperation efforts target competitiveness improvement and development of research, technical,innovative and industrial potential of the Far East. This agreement provides for cooperation in creating anddeveloping clusters, technology parks, and industrial infrastructure in the Far Eastern Federal District, including in
territories with preferential conditions for entrepreneurship. The agreement also aims to improve investment
potential and attract investment for developing clusters, technology parks, and industrial infrastructure.

tass.ru/ekonomika/9119901
The Roscongress Foundation – a socially oriented non-financial development institution and a major organizer of international conventions,congress, exhibitions, business, social and sporting, public, and cultural events.
The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its nationalinterests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on
the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting
investment, and helps foster social entrepreneurship and charitable initiatives.
Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working
on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working inRussia and abroad. In addition, it works in close cooperation with 128 economic partners; industrialists’ and entrepreneurs’ unions;and financial, trade, and business associations from 69 countries worldwide.
roscongress.org
ORGANIZER OF THE EASTERN ECONOMIC FORUM