ALEXANDER GALUSHKA: BUSINESS SEES THE FAR EAST THROUGH THE PRISM OF INVESTMENT PROJECTS
27 August 2015
There is only one week left till the start of Eastern Economic Forum in Vladivostok. Alexander Galushka, Minister of the Development of the Russian Far East spoke about the preparations for EEF and its rich programme at a press conference for the news agency Interfax.
According to the Minister, the Forum will focus on questions of Far East development issues in terms of integration with APR countries. “Our task is to fully represent all aspects of the new economic policy. In this sense the Forum shall become a project development tool for the macro region”, emphasized the head of the Ministry for the Development of the Russian Far East.
A lot of interest has been shown in Eastern Economic Forum by the business community. About 4,000 businessmen fr om 24 countries expressed their desire to participate in it. The majority of demands are from representatives of China, Japan, Korea, Singapore and Malaysia. As mentioned by the head of the Ministry for the Development of the Russian Far East, the list of people willing to participant in the event was four times above the lim it. The organizers cooperate with the applicants on an individual basis in order to optimize the total number of participants proceeding from technical opportunities of the site. “At the moment there are 1,100 accredited participants, including 400 ones from foreign countries”, said Alexander Galushka.
A wide circle of officials will be represented at the Forum. Among the guests expected to arrive in Vladivostok are: Wang Yang, Vice Premier of the People’s Republic of China; Sok An, Deputy Prime Minister of Cambodia; Yoon Sang-jick, Minister of Trade, Industry and Energy; Hong Yong-pyo, Minister of Unification of the Republic of Korea; Ri Ryong Nam, Minister of Foreign Trade of North Korea; Vũ Huy Hoàng, Minister of Industry and Trade of the Socialist Republic of Vietnam.
The Primorsky Krai is preparing for the visit of the heads of transnational corporations and largest foreign companies. Wang Yilin, Chairman of the China National Petroleum Corporation (CNPC) and Guo Ping, President of Huawei Technologies Co., Ltd. confirmed their visit. Japanese business will be represented by the President of Kawasaki Heavy Industries, Ltd. Shigeru Murayama, President of Marubeni Fumiya Kokubu and General Director of Mitsubishi Corporation, Minoru Furusawa. The Republic of Korea will be represented by the President of Samsung Electronics Park Sang Jin, President of LS Networks Kim Seung Dong, President of Daewoo Shipbuilding & Marine Engineering Co., Ltd. Jung Seong Rip, President of Hyundai Motor Company, Jung Jin Haeng, President of K-water Choi Gyewoon, and the President of Korea Electric Power Corporation (KEPCO) Cho Hwan-Ik.
The objective of the Forum programme is to allow business to consider the Far East through the prism of investment projects. There will be over 250 projects represented to investors. The most attractive projects for investors include 200 projects with the total amount of investments of 4.7 trillion rubles. They are investment projects in various economy sectors: civil construction and infrastructure, mineral production and processing, forest industry, agriculture, transport infrastructure and logistics. The Forum will also represent projects of creating industrial and technical fleets. Some projects will be introduced to investors by their developers. According to Alexander Galushka, they selected 90 of the most attractive projects for this purpose with a total amount of investment of about 1 trillion 463 billion rubles.
During three days of the Forum it is foreseen that 72 letters of intent and memorandums of cooperation will be signed. Among them there are about 20 agreements in the field of electric power industry. In particular, RusHydro and Korea Water Resources Corporation will be signing an agreement on the development of Primorsky Energy and Water Facilities.
About 10 agreements will be associated with the development of agricultural facilities. The signature of the memorandum of understanding between the Ministry for the Development of the Russian Far East, Chinese Association of Industrial International Development and Planning, Jinggong International Cp., Ltd and Far East Development Corporation will become one of the significant steps. The parties plan to create a Russian – Chinese Fund of Agricultural Development to stimulate agricultural production in the Far East Okrug.
Projects in the oil and gas sector draw much attention. At EEF the Ministry for the Development of the Russian Far East and Gazprom will sign an agreement as part of the investment project of Amursky Refinery. As mentioned by Alexander Galushka, this refinery with an investment volume of 800 billion rubles will become the largest plant in Russia and one of the largest in the world.
The Minister believes that much attention will be paid to the participation in EEC by one of the financial institutions of macro region development, the Far East Development Fund. The Fund will sign over a dozen of investment project agreements at the Forum. The total amount of these agreements will exceed the sum of 100 billion rubles, 10 billion of which is to be allocated by the Fund. At first, it concerns the projects for creating transport and logistic infrastructure, and the co-investment agreements with Far Eastern regions.
Alexander Galushka specifically emphasized the agreements associated with the formation of priority social and economic development areas. During the Forum, Jiangsu Baoli International Investment Co., Ltd., “Zhou Dehong”, Ministry for the Development of the Russian Far East, and the Far East Development Corporation are to conclude an agreement on creating an industrial fleet for producing aviation parts and components in the PDA (priority development area) Komsomolsk. Another cooperation agreement is to be signed by the Government of Chukotka, the Far East Development Fund, and Tigers Relm Coal Limited for the purpose of field development in the Bering coal field and construction of transport infrastructure. This agreement will be implemented as part of the PDA Beringovsky (priority development area) at Chukotka.