MONTHLY INFORMATION DIGEST

ECONOMIC DEVELOPMENT OF
THE FAR EAST
April 2020

KEY TOPICS
Ministry for theDevelopment of theRussian Far Eastbrought a draft decree
on FEFD development
before the Government•Nuclear-powered
icebreaker Leader is tobe built in Primorye•New residents ofYakutia ASEZ willbuild vessels anddevelop logistics in theArctic

EASTERN ECONOMIC DIGEST
24 April 2020, TASS

Three sporting venues to be constructed in Vladivostok
The construction of the curling centre is to begin in September 2020. 34 million roubles have been
allocated for this project. The decision about the construction of the curling centre was made in
September 2019 during EEF. The corresponding agreement was signed by Governor of Primorye Oleg
Kozhemyako and president of regional curling federation Marina Mikhailova.
The second venue will be a regional hockey development centre, and the third one – a roofed footballarena in Vladivostok. 24 million roubles have been allocated for this project.
https://tass.ru/ekonomika/6845198
21 April 2020, Rambler FinanceExperts presented a 2020 rating of FEFD regions’ potential
The Far East is among the most interesting Russian federal districts from the investment point ofview. That is why, for the third consecutive year, experts of the Centre for Regional Policy Development
do research and present a rating of development of Far Eastern regions’ potential.
The development of Arctic territories and, through them, the recovery of the Northeast Passage
transport corridor, is the key indicator for unlocking the potential of Far Eastern regions in 2020–2030.
Kamchatka Territory and the Republic of Sakha (Yakutia) are the most attractive regions for investors,
followed by Primorye Territory.
Last year the Centre’s rating was presented as part of EEF 2019 business programme.
https://finance.rambler.ru/other/44055026-eksperty-sostavili-reyting-potentsiala-regionov-dfo-2020/

16 April 2020, TASS

Yakut government expects increasing interest in tourism in the Republic
According to the Yakut authorities, when the epidemiologic situation in the country improves, theRepublic will see a growing number of tourists, particularly those travelling to remote locations. Ministerof Entrepreneurship, Trade and Tourism Irina Vysokikh thinks that ecological tourist routes might become
more popular.
At EEF 2019 Vladimir Putin set a strategic goal: to ensure harmony of economic activity, accessibilityof nature for people, tourism and conservation of the ecosystem. The whole Far Eastern region is tobecome an experimental platform for this. Development of ecotourism in FEFD must be in line with theregime of conservation of natural reserves.
https://tass.ru/v-strane/8256393
3 April 2020, TASS

Ministers have two months to approve the programme for the development of the Far East
According to the decree, by 2024 the quality of life in the Far East should demonstrate faster growththan Russian average. Over the period of two months the Government of the Russian Federation should
adopt the National programme for socioeconomic development of the Far East. The Ministry for theDevelopment of the Russian Far East worked on it over 2019 and presented it to Vladimir Putin in
September at EEF 2019.
https://tass.ru/politika/8159877

STATE POLICY IN THE FAR EAST
16 April 2020, EastRussia

Ministry for the Development of the Russian Far East brought a draft decree on FEFD
development before the Government
The draft implies the implementation of the Programme for socioeconomic development of theRussian Far East until 2025 and up to 2035 which is aimed at reducing death rates, increasing birthrates, raising the number of cultural venues and sporting facilities, improving mechanisms of state fundingof medical institutions taking into account low population density and remoteness of certain localities.
https://www.eastrussia.ru/news/minvostokrazvitiya-vneslo-v-pravitelstvo-proekt-ukaza-o-razvitii-dfo/
27 April 2020, RIA Novosti

Mikhail Mishustin approved the development plan for the town of Bolshoy Kamen inPrimorye
Bolshoy Kamen is among the most important centres of economic development in the Far East.
Since the beginning of the project implementation, over 5,600 jobs have been created, and by 2024 morethan 15,300 jobs are to be produced. According to forecasts, due to employment the population of thetown will grow from 39,000 to 53,000. The project is implemented by the consortium led by Rosneft.
https://ria.ru/20200427/1570616005.html
21 April 2020, IA Yakutskoye – Sakha‘Far Eastern mortgage’: the number of issued loans grows while rates decrease
According to the Agency for Human Capital Development in the Russian Far East, 13 banks
participating in the ’Far Eastern mortgage’ programme signed 7,132 agreements totaling 24.8 billionroubles. Yakutia is the leading region with 1,928 credits worth 7.5 billion roubles. In Primorye 1,938
preferential agreements were signed amounting to 7.1 billion roubles.
http://ysia.ru/dalnevostochnaya-ipoteka-rost-vydannyh-kreditov-prodolzhaetsya-pri-snizhenii-stavokipoteki/11 April 2020, RIA PrimaMedia

Hospital in 41 days: Primorye shows the construction of a new infectious diseases centreOn the instruction of Vladimir Putin and Minister of Defence Sergei Shoygu, specialists of the Military
Building Complex are building 16 multi-purpose medical centres in different regions. There will be four
such centres in the Far East. In Primorye a multi-purpose medical centre is under construction inUssuriysk. The total area of the facility will be 4,320 square metres.
https://primamedia.ru/news/931305/
2 April 2020, Parlamentskaya gazeta

Visas for foreign investors and employees in the Far East to be extended to three years
The Federation Council has approved the law that simplifies the application process for the multiple
working visa for foreign nationals that are residents of an ASEZ in the Far East or of the Free Port ofVladivostok (FPV) and increases its term to three years.
The visa will be issued for up to three years to foreign nationals that have signed an employment
agreement with an FVP or ASEZ resident in the Far East with the aim of implementing investment
projects. Members of their families will be able to receive the same kind of visa.
https://www.pnp.ru/politics/srok-viz-dlya-inostrannykh-investorov-i-rabotnikov-na-dalnem-vostokeprodlyat-do-tryokh-let.html

ECONOMY OF THE FAR EAST
23 April 2020, Interfax

A plant for waste tire processing and production of road modifying agents andpavements is to be constructed in the Far East
KOLTECH company plans to build a plant for waste tire processing and production of road modifying
agents and pavements. The investor is supported by the Far East Investment and Export Agency. The
expected amount of investment in the project is 500 million roubles.
https://www.interfax-russia.ru/far-east/news/gruppa-koltek-planiruet-vlozhit-500-mln-rub-v-stroitelstvo-vdfo-zavoda-po-pererabotke-shin
17 April 2020, TASSFEFD does not expect a geology exploration slowdown due to the coronavirus andplunge in oil prices
According to Far-East PGO (a subsidiary of Rosgeologia State Holding Company), this year
geological exploration will be carried out mainly at gold and copper occurrences. Exploration works will
be held in prospective areas in Amur region and Khabarovsk and Primorye Territories. The Far East has
a rich resource potential: deposits of oil, gas, coal, gold, diamonds, iron ore, nonferrous metals, as wellas rare and rare-earth metals.
https://tass.ru/ekonomika/8266979
10 April 2020, TASS

Khabarovsk Territory to receive over 548 million roubles on social facilities of theVaninsky transport hub
57 economic development centres have been identified in the Far East, accounting for 80% ofregion’s population, or 6.6 million people. Vaninsky-Sovetsko-Gavansky transport and industrial hub isamong five economic development centres of Khabarovsk Territory.
https://tass.ru/ekonomika/8208147

2 April 2020, IA Neftegaz

New residents of Yakutia ASEZ will build vessels and develop logistics in the Arctic
Zhatayskaya Shipyard and Nizhny Bestyakh cargo terminal have become residents of Yakutia
ASEZ. Investors will create a shipyard to build a modern river fleet and a transshipment terminal and will
invest 8.2 billion roubles in their enterprises. Over 780 jobs are to be created.
The shipyard is going to build river vessels. Renewal of the river fleet will help ensure uninterrupted
transportation of cargos in the Lena River basin and in the northeastern part of the Arctic region, including
along the Northeast Passage.
https://neftegaz.ru/news/finance/540303-arktika-prodolzhaet-razvivatsya-novye-rezidenty-tor-yakutiyavlozhat-v-svoi-predpriyatiya-8-2-mlrd-r/

NEW MECHANISMS FOR THE FAR EAST
DEVELOPMENT: SUCCESS STORIES
25 April 2020, Argumenty i Fakty

Leader nuclear-powered icebreaker is to be built in Primorye
The Zvezda shipyard received this commission from Rosatom state corporation. The plan is tocomplete it in seven years. Leader will be equipped with two RITM-400 nuclear reactors. Due to its totalpower, the vessel will be able to break more than four metres of ice.
When the icebreaker is launched, Rosatomflot will be able to carry out regular voyages in the easternpart of the Arctic. Navigation along the Northeast Passage will become year-round, and this will pave theway for commercial high-latitude routes.
https://vl.aif.ru/society/v_primore_postroyat_sverhmoshchnyy_atomnyy_ledokol_lider
2 April 2020, Rambler Finance

Ministry for the Development of the Russian Far East suggested expanding theKamchatka ASEZ to accommodate three new projects
The Ministry for the Development of the Russian Far East suggests expanding the area of theKamchatka ASEZ to implement three new projects. Two of them will be building fish processing plans,
and the third one – a hi-tech plant for a major pork producer.
They are expected to provide no less than 383 new jobs and attract over 1.1 billion roubles of private
investment. Total revenue to the consolidated budget from taxes and charges (with tax deductions) forthe period from 2020 to 2029 will exceed 450 million roubles.
https://finance.rambler.ru/other/43948392-minvostokrazvitiya-predlozhilo-rasshirit-tor-kamchatka-dlyarealizatsii-treh-novyh-proektov/
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ORGANIZER OF THE EASTERN ECONOMIC FORUM