10 steps for development: how to turn the far East into a prosperous region

The rise and rapid development of the Far East is one of the main tasks of the Russian government. The revival of the region has already begun and goes in all directions – in medicine, education, economy and international cooperation.

It is expected that as a result of implementation of programs of development of macroregion of the far East will increase the volume of attracted investments, including foreign ones, to integrate in the economies of the Asia-Pacific region and will significantly improve the quality of life of the local population.

What measures need to be in special material

Support at the state level

The development of the Far East and the Baikal region is overseen by the Deputy Prime Minister – presidential Plenipotentiary envoy in the far Eastern Federal district (FEFD) Yuri Trutnev. In addition, for effective district development in Russia created a number of institutions for control and coordination of work of regional authorities, assistance in attracting investments and training:

  • created by the RF Ministry of Far East development, which coordinates the work on implementation of state programmes and Federal targeted programmes for developing the Far East, manages Federal property, supervises the work of subjects of the Far East;
  • created “Corporation of development of the Far East” (CRDW) a management company managing territories of priority socio-economic development (TOR) is a Free port of Vladivostok;
  • created “development Fund of the Far East” (FRDW) is a state financial development institution with an authorized capital in the amount of 15.5 billion rubles, which invests in the creation of new enterprises and infrastructure, with significant socio-economic effect for development of economy of region;
  • the Agency on attraction of human capital, which is responsible for searching and attracting competent and qualified personnel for new production facilities in the Far East;
  • established the Agency on attraction of investments, whose main purpose is the involvement of residents in the top and direct investment and support export

The establishment of TOR

The creation of areas of advanced development will help to create the most attractive investment climate in the far East

TOR provide the residents with a number of tax concessions, preferential allocation of land, provision of free infrastructure under the project.

  • at the beginning of 2016 it was decided to establish 12 THOR in the Amur and Sakhalin areas, the Kamchatka, seaside, Khabarovsk Krai, Yakutia and Chukotka Autonomous district;
  • in 2016 it is planned to create in the far East three TORUS, including in the Jewish Autonomous region, which will be the first in the region;
  • at the moment of PDA residents received 105 applications for 312 billion of direct private investment.

The establishment of Free port of Vladivostok

Mode is created to expand cross-border trade, development of transport infrastructure, creation of network of logistics centers. In this zone, the mechanism for duty-free import and export of goods.

  • the regime of the Free port of Vladivostok in October 2015 is distributed throughout 15 municipalities of Primorye: Vladivostok, Artem, Bolshoy Kamen, Nakhodka and Partizansk, Ussuriisk, Spassk-distant, Nadezhdinsky, Shkotovsky, Oktyabrsky, Partizansky, Border, Khasan, Khankaisky and Olginsky districts, including their sea areas;
  • the Russian government is currently studying the issue of providing the regime of free ports and other municipal formations of the Far East;
  • at the moment Free port of Vladivostok received 43 bids from potential investors by 147.4 billion rubles of investments.

“Far ha”

The bill provides for the allocation of the Russians plot up to 1 hectare, first in free use, then the property free of charge, if the land is cultivated.

  • this bill is still before the deputies of the state Duma of the Russian Federation. It is planned that the law will come into force on 1 may.

Attracting qualified personnel to the far East

Search, the relocation of qualified personnel to the far East, as well as their fixing on this site by the Agency on attraction of human capital. By now the list of donor regions that will be able to provide qualified specialists for construction and further work created in the far East industries. As a result, the far East will upgrade the housing stock will be upgraded existing and built new objects of household infrastructure.

  • it is expected that by 2017, the far East appears more than 100 thousand new jobs;
  • now the population of the Far East is about 5% of the total number living in Russia, while the far East accounts for a third of the entire country.

The creation of the medical cluster

Now the Ministry prepares legal base for creation of a medical cluster in the far East.

  • it is planned that medchester will be located on the territory of Free port of Vladivostok;
  • to improve the quality of medical services in the Primorsky territory it is planned to attract specialists from South Korea.

The establishment of the Russian-Chinese agricultural Fund

At the end of 2015 in Beijing was signed a Memorandum of understanding between the Ministry of the Russian Federation for Far East development and the State Committee of China development and reform Commission, in which the parties have agreed on the principles of Russian-Chinese agricultural Fund.

  • the initial capital of the Fund will amount to 13 billion rubles, of which investment Fund development of the Far East will amount to 1.3 billion rubles, and investment management company Asia Pacific food facility – 11.7 billion rubles;
  • it is planned that the Fund becomes operational in 2016. In the result, the far East can provide themselves with vegetable and meat products, and to import it into China;

The development of tourism

Centre of tourism development in the far East can be Sakhalin. To increase the attractiveness of the region it is planned to create a ski resort “Mountain air” is located within Yuzhno-Sakhalinsk. To coordinate the concept development of the resort is planned before the end of February.

  • Sakhalin region by 2020 may increase the number of tourists visiting the island, up to 400-500 thousand people per year against the current 260 thousand;
  • to implement the first stage of the ski complex “Mountain air” is planned by the beginning of the winter season of 2017-2018, doubling the length of slopes of up to almost 45 miles;
  • the first step in creating the ski complex “Mountain air”, according to preliminary data, will require 2.5 billion rubles of financing from the regional budget, and at the expense of investors.

The creation of the far Eastern Federal University

FEFU was established in 2010-2011 by combining four leading universities of the Russian Far East — far Eastern national University (FENU), far Eastern state technical University (FESTU), Pacific state University of Economics (tgeu) and Ussuriisk state pedagogical Institute (uspi). FEFU is now:

  • the total campus area of 800 thousand square meters;
  • 33 thousands of students;
  • Almost 2 thousand doctors and candidates of Sciences;
  • 468 majors;
  • 300 higher education programmes.

The establishment of the Eastern economic forum

The first East economic forum, whose main task is to talk about the potential of the Far East, state measures of support of investors and attraction of investments took place in 2015. According to the results there was signed a number of agreements about the interest for a total amount of 1.8 trillion rubles. Ministry intends to make WEF a traditional venue for meetings of business and government. The forum will be held in early September in Vladivostok.