As the far East became the leader on attraction of investments


TASS, may 23. The economy of the Far East in 2017 for the first time showed unprecedented growth in private investment and has overtaken on this indicator the rest of Russia. According to Rosstat, investment in fixed assets in the far Eastern Federal district amounted to 1,217 trillion rubles, or of 117.1% by 2016, while the national average, this indicator amounted to 104.4%.

As specified in Ministry among the main reasons for the “far Eastern economic miracle” – the introduction of new economic mechanisms, such as the modes of the territories of advanced development (TOR) and Free port (TCCs), which provide significant benefits to investors. On investment by residents of those areas who have invested in the economy of the far Eastern Federal district, more than 90 billion rubles, accounted for 9% increase of 17.1 per cent.

The reasons for the improvement in the investment climate and prospects for attracting new investors to the region will devote a special session of “far East breakthrough. How to become the leader of growth of private investment”, which will be held on may 24 at the St. Petersburg international economic forum (SPIEF).

Before this discussion TASS correspondent in the Far East learned from representatives of local authorities, experts and private investors, as it was succeeded to achieve high results in attracting investments, and how it works in the new economic mechanisms for entrepreneurs.

Leaders and development tools

Among the far Eastern regions of the uneven flow of investment, both in absolute and in relative terms. The leaders among the regions in 2017 began the Amur region 186 billion 624,1 million (+36,6%), Yakutia – 384 billion 853,3 million (+35,4%) and Sakhalin oblast – 299 billion 467,1 million (+17.3 per cent). The inflow of money is “pulled” up and the whole economy: growth in industry DFO also exceeded the national average, however, is only 2.2%, reported the Ministry.

Its share of investments in the common Fund and brought the residents of Tor and SPV. Today the far East has 18 TOR, and the law on the free port covers 21 municipality in the Primorsky, Khabarovsk and Kamchatka territories, Chukotka AO and Sakhalin oblast.

According to the development Corporation Far East (CRD), in the regions of FEFD thanks to new development tools business initiated by 1200 investment projects to the amount of 3.7 trillion rubles, which will create 120 thousand new jobs.

Among all the declared investments into the project SPV and THOR in 2017, more than a third enrolled in the establishment of manufacturing industries. About 30% – in transport and logistics projects, 8% was invested in agriculture and construction business. According to the former Minister for Far East development Alexander Galushka, the Torah and the SPV have completely changed the economy of the region: now 90% of investments not related to mining.

In particular, in the top “Free” in the Amur region, Gazprom is building Russia’s largest gas processing plant. In October 2017, was launched production of the “MK Reftrans”, which has been supplying frozen fish on the route Vladivostok – Moscow. In the Magadan and the Jewish Autonomous region there are two largest of these regions of production – ore mining and processing enterprises on the basis of natalkinskoe gold and Kimkano-Sutarsky iron ore deposits.

The participation of the state

The success of the investment policy experts explain the broad introduction of modes of TOR and the Free port. Created in the far East special economic zones of today are quite competitive in the Asia-Pacific region, the Deputy Director of Expert-analytical center of the far Eastern Federal University (FEFU) Dmitry Shelest. This, coupled with other efforts of the government, and helped to increase the attractiveness of the region.

Mode TOR in the far East implies a significant reduction for resident tax on mining, property and profit within the first years of operation, preferential connection to the infrastructure, a special procedure of land use, preferential rates on rent and much more. Free port of Vladivostok also suggests vacation on the income taxes, property and land, a quick border crossing for international trade, simplified visa regime, a significant reduction of terms of carrying out fiscal audits and other preferences.

“First of all, the inflow of investment in Russia’s far East has affected the state’s involvement in the transformation of the far Eastern regions. The interest of Moscow was expressed in political and administrative decisions, ranging from the adoption programs of development of the Russian Far East with the formation of special economic zones to the declarations from the foreign Ministry to interested countries and foreign business, infrastructure projects with maximum participation of the Federal budget”, – said Rustle.

This approach, according to the expert, to give confidence to foreign investors in the stability of the political course. Also, though not in full, but he improved the infrastructure of the region has attracted large Russian business, which updated the industrial and mining base, plus created the legal basis for the entrance of interested companies from the Asia-Pacific region.

Businesses need payback

Entrepreneurs are also positive about their experience in the framework of preferential regimes. One of them, Sergey Dmitriev, managing Director of the company “Honoka Sakhalin”, which under the Japanese “Marusin, Evadere” builds on the island of balneal complex “Honoka”. It will be several outdoor and indoor pools, saunas, relaxation rooms, massage and treatment rooms, including a hot stone loungers.

“Modes of TOR and SPV are beneficial to project Economics. Today we have in the long term (in the foreseeable horizon of 10 years), those preferences, which are set out in the TOR with ISL. This is promising, because it reduced the cost of project and return on investment. When investors come and see what the return of investment will be in the range of four to seven years, it fits into their understanding, because at home they such a return will never be,” – said Dmitriev.

It is gratifying, in his opinion, the fact that the regions add their preferences: subsidize reimbursement of expenses on technological connection, according to the Bank interest in the case of obtaining loans. This view is shared by the head of the “Agrokhim” DV, who is also a resident of TOR, Dmitry Malyshev. His company is building a modern logistics center for the storage of pesticides and agrochemicals in the Ivanovo region of Amur region.

“If it were not TOR, such large-scale construction, we would not have undertaken. If there are no benefits from the state, then the business would be a long payback period. For example, in our project – about 15-17 years, due to the fact that we in the Torah – the payback will be in five or six years”, – told TASS entrepreneur.

Bottlenecks

Despite these good results, and now experts wonder how to keep the growth rate of the economy. And here in themselves of special economic zones may not be enough, the Vice-President for development of the region’s largest forestry company RFP Group Roman Romanovsky. The point here, as often happens in DFO, it rests on the transport.

“The capacity of the Railways is one of the pronounced bottlenecks in the Far East, that is, the creation of new industries and the subsequent transportation of production to markets inevitably faced with the question of power and the cost of delivery by rail. A significant portion of power occupied by the coal. The region needs to develop a system of Railways, it is restraining the development factor,” said Romanovsky.

RFP Group has implemented two investment projects in the framework of the TOR Komsomolsk in the Khabarovsk region – launched plants for the production of peeled veneer and lumber worth about 12 billion and began construction of a factory on manufacture of fuel granules.

To increase investment and the economy in General, DFO continued, it is also important not to reduce the pace to create energy and municipal infrastructure, said the Minister of economic development of Sakhalin region Alexey Uspenskiy.

“Today we solved one of the key problems hindering the development of the macro-region – the high cost of electricity. From the beginning of 2017 in the far East had reduced electricity tariffs to the national average. And this is a huge support for industrial enterprises of Sakhalin and the far Eastern region as a whole. Also important and relevant issue is the availability of qualified personnel in the macro-region”, – TASS said the Minister.

Figures figures alike

Although the figures announced by Rosstat, the investment growth are encouraging, some experts do not tend to their unambiguous interpretation. According to the head of the Department of international studies, North-Eastern Federal University (NEFU) Marina Velizhanin, between the estimates of the Ministry and those figures that come from the regions, there are some contradictions.

“It all depends on the methodology chosen for the study of these processes. The Ministry uses a single methodology, in particular, to determine the volume of foreign investment in the FEFD, researchers use other methods, and therefore very difficult to realistically assess what investment in the economy”, – told TASS Velizhanin.

The number of active enterprises is still far from the stated 1200. By the end of 2017 in the far East worked 107 new enterprises created by residents of TOR and SPV. By the end of 2018 will be implemented about 200 projects, and by 2020 it is planned to open 350 projects.

According to experts, there are also objective reasons for the fact that the processes of creation of new enterprises are in regions with different speeds.

“We have the regions of the South, where a more diversified economy, where manufacturing and agriculture developed. And there is the North-Eastern regions such as the Republic of Sakha (Yakutia), Chukotka Autonomous district, Kamchatka Krai, Magadan oblast, where single-industry economy, where the large space and very few people, infrastructure is not developed and, accordingly, the production is much more expensive,” – said the Agency interlocutor.

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