20 June 2016

    During his visit to Beijing, Head of the Ministry for the Development of the Russian Far East Alexander Galushka discussed investment, trade and economic cooperation with Xu Shaoshi, according to a department press release.

    The talks centred on attracting Chinese investment into Free Port of Vladivostok and priority development areas established in the Far East. “Russia is interested in attracting quality Chinese investment, construction of modern enterprises and creation of new jobs for citizens of the Russian Federation in the Far East. That is the angle from which we are interested in increasing volumes and sphere of investment coming from China,” Alexander Galushka announced during the meeting with Xu Shaoshi.

    According to the Minister, the Chinese share in the over RUB 1 trillion investments in the Region is at least 12%.

    In turn, the Chinese representative noted that China took a positive view of the first results of the new economic policy in the Far East which have appeared as a result of the new instruments (advanced special exonomic zones, Free Port of Vladivostok). Launch of the first projects in the region makes cooperation between the two countries more promising and China is currently engaged in preparing reciprocal systemic proposals for possible investment projects in ASEZs and Free Port of Vladivostok and these will soon be presented to the Minister for the Development of the Russian Far East.

    During the talks, the parties also touched on development of the international transport corridors Primorye-1 and Primorye-2, which could link the north-eastern provinces of China with the ports of the Far East. The Head of the Ministry for the Development of the Russian Far East announced the results of analysis and assessment of these projects by international experts, according to which the potential freight base for ITC-1 and -2 is 45 million tonnes of additional freight for the Far East ports every year, a minimum 4% increase in the Primorye economy, benefit to the north-eastern provinces of China from cutting the distance to ports to the tune of USD 1 billion and returns on investment in the transport corridor infrastructure of at least 10% per annum.

    The ITC project is currently being elaborated by the Ministry and will soon be presented to the Chinese partners.

    Among the other matters discussed by the meeting participants were launch of the joint Russia–China Agricultural Foundation. Alexander Galushka provided his Chinese colleague with a list of the first ten Far East agro-industrial projects to a sum of over RUB 80 billion that are currently being prepared by the Fund for financing and told him about the plans to launch the first of them within the scope of the Eastern Economic Forum in September this year.

    At the end of the meeting, the Minister expressed his confidence in further co-operation with the PRC. “Before us we have obvious and long-term prospects for mutually beneficial cooperation. And the link between the Eurasian Economic Union and the Silk Road Economic Belt, and between projects in Russia’s Far East and north-east China are capable of being sources for forming new and stable factors for global economic growth,” he announced.

    The parties agreed to hold regular meetings and maintain regular working contacts between representatives of the Ministry for the Development of the Russian Far East and the National Development and Reform Commission of China and to prepare joint events on the sidelines of the Eastern Economic Forum.