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Regional Benefits - EastRussia |

Irkutsk
Ulan-Ude

Blagoveshchensk
Chita
Yakutsk

Birobidzhan
Vladivostok
Khabarovsk

Magadan
Yuzhno-Sakhalinsk

Anadyr
Petropavlovsk-
Kamchatsky
Moscow

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Regional advantages

Investment strategies of the Far East

Regional advantages

The development of the FEFD is a strategic goal and our national priority for the whole XXI century. To accomplish this task set by the president of the country, it is important to attract investments, increase the tax base, open new production. And all this is possible only with the creation of favorable conditions for doing business. Each region of the FEFD, as well as experts, politicians, entrepreneurs, has its own point of view, due to which the Far East must increase its economic potential.

The abundance of strategies for short and long term outlines the general trends in the development of the regions of the Far Eastern Federal District, but key issues are addressed through various forums involving federal officials and representatives of big business. Regional initiatives and projects are often waiting for approval "from above," which slows down the pace of regional development. However, attracting investments and actively involving the business in the implementation of regional projects is the main condition for the development of the Far Eastern Federal District, therefore the initiative and attractiveness of each region of the Far East should be developed independently, taking into account its own competitive advantages.

The role of the state in creating an attractive investment climate is of exceptional importance. The main interests of foreign (primarily Asian) investors in the Far East are related to participation in commodity projects. Such factors of regional investment attractiveness, such as the developed infrastructure, intellectual and professional potential of the population, research and production complexes and experimental production that could become the basis for the creation of competitive companies, are absent. Many projects that need to be implemented in the regions of the Far Eastern Federal District face the problem of unconstrained territory, and the creation of infrastructure can exceed 20% of the total cost of the project - for a foreign investor this is a very weighty argument not to invest in Far Eastern projects, even under preferential interest rates. Accordingly, only state financing in conjunction with private business can develop the economy of the region, but the economic hegemony of the state can not be a positive factor in the formation of investment competitiveness of the regions of the Far Eastern Federal District.

The main document approving the priorities of the investment policy of the region is the investment strategy, which is part of the approved investment standard in the Far Eastern Federal District. The essence of the strategy is to find a regional competitive advantage that would allocate the region for the investor and improve the socio-economic situation.

The investment climate is well evaluated. Sakhalin Oblast - only located on the islands of the region of Russia. The Sakhalin region has a positive dynamic in various socio-economic ratings, for example, the region has always been in the top of the regions for the inflow of foreign investments, although recently this indicator has been deteriorating. This can partly be explained by the growth of internal competition in the eastern regions. Creation of economic development agencies, development of investment strategies, formation of industrial parks and clusters with all the necessary infrastructure, presentations of investment opportunities of regions on international platforms, holding business forums - today many people follow this path, and foreign companies have the opportunity to choose that region, conditions doing business in which they are most acceptable. The leading sectors of the economy of the Sakhalin Region are the oil and gas industry and the fishing industry, in which the main projects are actually carried out. Projects such as Sakhalin-1 (development and operation of three offshore fields on the northeast shelf of Sakhalin) and Sakhalin-2 (development of two offshore fields and construction of an LNG plant near Korsakov) have already been implemented, over the long term, the implementation of the Sakhalin-3 project (4 of the field unit) is likely. As for the competitive advantages of the region, these include the presence of rich reserves of basic natural resources (oil, gas, coal, hydrobionts, forest resources, common minerals, etc.), the presence of biological resources unique in their quantity and quality, only national, but also of global importance, advantageous geographical position. It is because of its unique geographical position that the Asia-Pacific region is a traditional sales market - more than 95% of the region's foreign trade turnover accounts for the Asia-Pacific countries.



В The Amur Region The investment strategy up to 2017 should help the region cope with the main socio-economic problems of the region through the establishment of several large enterprises that will create tens of thousands of new jobs. One of such projects was the Vostochny cosmodrome, from which more than half of all Russian space launches are planned. More than 15 thousand specialists of a different profile are involved in the construction of the cosmodrome, and in peak (pre-launch) periods up to 30 thousand people. The advantages of the region include large reserves of deposits, forests, hydropower resources, developed agriculture and the border position (border with China). The disadvantages include undeveloped infrastructure, the inaccessibility of some fields, and especially the climatic factor, when an investor risks losing his investments due to floods, droughts and forest fires.

In the Amur region, it is planned to create seven clusters: mining and metallurgy, which means the emergence of new mining and processing enterprises, tourist (investment projects "Golden Mile" with cable car, ice palace, water park and cathedral, park of the Cretaceous period, complex "Ethnic" Russia "with the installation of settlements of first-way Cossacks," Evenki Village ", the Museum" Space Odyssey "), oil and gas processing cluster, space and biopharmaceutical (with a plant for production in vitamins and medications) and others. Each project implies the need for appropriate development of its infrastructure.

Concerning Jewish autonomous region и Chukotka Autonomous Region, these two regions are lagging behind in the implementation of the investment standard developed by the Agency for Strategic Initiatives, stronger than the rest of the FEFD regions. Despite the different geographical and economic situation, both of these regions fall into the category of “low potential - high risk”. For example, the JAR has priority in developing a legislative framework and tax incentives for entrepreneurs, and in the Chukotka Autonomous Okrug - a kind of preservation of the existing situation, continued cooperation with already established companies (Polymetal, Kinross Gold). It is planned to attract investments in geological exploration, power engineering, coal, transport - the launch of the production of coking coal near the Bering port (project of the Australian company Tigers Realm Coal) is expected. Currently, there are five gold mines in the region, and by 2018, seven more mines are planned to be commissioned. Despite this, the most northeastern region of the continent, in which about 10% of the proven reserves of Russian gold and many other minerals are concentrated, has been among the problematic regions of the Russian Federation for the last twenty years.

So, in the investment policy, those regions of the FEFD that do not have a clear strategy cannot compete even with their neighbors. Due to the specifics that cause most of the problems in these regions, even the fulfillment of investment standard prescriptions does not contribute to an increase in efficiency in the proper amount.