The Chairman of the Government of the Russian Federation Dmitry Medvedev at a meeting of the Government Commission on the socio-economic development of the Far East and the Baikal region noted that in the Far East they are working systematically to improve the business climate radically.
"We began systemic work to radically improve the business climate in these regions more than 4 years ago or even earlier, knowing that without new investment, without creating modern jobs it is impossible to develop the Far East and to solve social and demographic problems. For 4 years we have managed to achieve annual economic growth. It exceeds the national rate," he said.
And the Head of the Ministry of the Russian Federation for Far East development Alexander Galushka, in his turn, explained that for the past four years annual economic growth in the Far East has exceeded the national average level.
"With observed in the whole country decrease of construction volume it increased in the Far East by 12% in the first half of the year. Industrial production has increased by 3.1%, agriculture - 4.8%. The total volume of the investment projects amounts to 3.5 trillion rubles," - said Alexander Galushka.
In his opinion, all these significant strides that ensure sustainable growth are based on the creation and development of areas of priority development (APD) and Free port in the region.
According to the information of the Ministry of the Russian Federation for Far East development, there have been created 18 areas of priority development in the Far East. The investors can take advantage of this regime in eight regions of the Far East. A Free port (Porto Franco) operates in five regions of the Far East – Primorye, Khabarovsk Krai, Sakhalin region, Kamchatka and Chukotka.
The Ministry of the Russian Federation for Far East development is also considering extending the regime of the Free port for Blagoveshchensk in Amur region.
14 investment projects will get state infrastructure support. For 2015 and 2016 the amount of provided subsidies amounted to about 12 billion rubles.
"Behind all this there is a new model of development of the Far East, based on international integration with Asia-Pacific countries, the establishment of the global competitive environment of economic development, investment climate for doing business, the wager on private investment, small and medium business, development of competition", – said the Minister.
The residents of areas of priority development get help from "Corporation of the Far East development", which acts as a management company and maintains the administrative support of investment projects on the principle of "one window".
"The work front is increasing rapidly; the number of residents is growing. All businessmen, regardless of how large is the company they represent, call the appearance of areas of priority development and Free port very reasonable and beneficial. First, due to expanding the list of services provided to investors, due to development and introduction of new mechanisms of business support in the Far East of Russia", - said General Director of JSC "Corporation of the Far East development" Denis Tikhonov.
Thus, according to Corporation of the Far East development, since the adoption of the laws on areas of priority development and Free port of Vladivostok, the Corporation has received about 1 thousand applications from those who wish to enter into agreements on investment activities in areas of priority development and Free port of Vladivostok.
Over the past year the number of applications from business for implementation of projects in areas of priority development and Free port of Vladivostok has increased more than five times. Investors - residents of areas of priority development already are certain of the obvious advantages of working in special areas.
For today the effectiveness of the areas of priority development and Free port of Vladivostok is estimated 1 to 10, i.e. 1 ruble of the state investments in infrastructure accounts for actually invested 10 rubles of private investment. And by 2025 this figure will have reached 1 to 40.
Meanwhile, the General Director of the plant for the production of acrylic paints, OOO "BIGE" Andrey Neustroev believes that the preferences that give the areas of priority development, allow increasing the profitability of the project that affects the cost of production and its competitiveness on domestic and foreign markets.
As reported by Interfax-Russia.ru in the Corporation of the Far East development, the investor that came with the project of a plant for the production of acrylic paints, was "preincubated" at Technopark "Yakutia" and then became an acting resident of the area of priority development, started the plant and plans to expand production.
Now the plant supplies the paint to all construction firms in the Republic and even sells it to other regions of the Far East. As the builders note, to buy paint from the "BIGE" is profitable and convenient. The company is benefiting ratio "price-quality", focusing on the specific climate of the Far East.
"The advantages of the areas of priority development are obvious. The first is a free connection to the infrastructure. Last year we started construction, and this year we finished it and were immediately connected to gas and electricity networks to start working," said Andrey Neustroev to Interfax-Russia.ru.
As additional bonuses, which allow business to expand and join the ranks of the residents of the areas of priority development, an entrepreneur called tax privileges on pension payments, privileges on income taxes, serious information support to residents in the media.
"There are certainly disadvantages. Permits for the construction and commissioning of the facility are legalized for a long time. There not fully worked out the distribution in sanitary zones, what is carried out in accordance with the expertise, what is legalized without expertise, because of this time is lost," he said.
Creation of the areas of priority development gives a powerful impetus for business development, says another source of Interfax-Russia.ru – General Director of LLC "Mercy Agro Primorje" Oleg Zubakhin, whose company has become an anchor investor of the area of priority development "Mikhaylovsky" in Primorye.
"The attention of Deputy Prime Minister – presidential envoy in the Far East Yuri Trutnev and of the Ministry of the Russian Federation for Far East development and gives more simple and comprehensible conditions of access and connection to resources – electricity, gas, infrastructure. Tax privileges also allow the successful and quickly developing of enterprises, and the reduction of the payroll tax allows paying decent wages to employees, which is also a huge plus," - said Oleg Zubakhin.
He cited the example of his own company, which, leaving the growth stage went not only to the development of infrastructure for industries, but also to the construction of social infrastructure.
"We are building schools, creating the infrastructure for settlements. Without people all the rest will not be viable. All our appeals to the Ministry of the Russian Federation for Far East development and to the Agency for the development of human capital do not remain without attention", - said the source to Interfax-Russia.ru.
In his opinion, the mechanism of the areas of priority development is effective and will solve the problems of single-industry towns.
"In the creation of the areas of priority development there is the important concept that is also seriously supported. But, of course, development depends on the residents. They are given great opportunities, but how to dispose of them, everyone decides for himself", - said Oleg Zubakhin.
In his turn, the General Director of group of companies (GC) "Sumotori" Vitaly Verkeenko noted that speaking of the high efficiency of the areas of priority development one should not forget about Free port of Vladivostok.
"We have repeatedly said that the regimes of the areas of priority development and Free port of Vladivostok do not just open new possibilities, including projects that have low profitability, and demonstrate this by their actions. That is, the group of companies "Sumotori" is implementing three projects in the framework of Free port of Vladivostok and three projects in the framework of the areas of priority development. We see the effectiveness and see the potential of projects in different fields, from tourism to manufacturing," explained the General Director of GC "Sumotori" to Interfax-Russia.ru.
According to Vitaly Verkeenko, Free port of Vladivostok has preferences similar to the preferences in the areas of priority development, in the field of taxation and customs regulation.
"In the context of the areas of priority development, we get additional land under favorable terms with utilities. But with requirements of the higher level of investment, which is true. And within the Free port of Vladivostok we also have the opportunity to develop large-scale projects obtaining conditions on the whole territory of Southern Primorye," - said the general director of the company.
He also mentioned the collaboration with the Agency of the Far East to attract investment and support of exports (the Agency).
"We are working productively with the Agency. We have participated in joint ventures a few times, including in the presentation of investment opportunities in China and Japan. There are similar territorial institutions on development but due to the fact that the Agency has a Federal level, its possibilities and competency to attract investors and companies from all over the world are higher and successfully used," said Vitaly Verkeenko.
It is worth noting that currently the portfolio of the Agency includes new investment projects worth 1 trillion rubles.
According to the Agency's General Director Leonid Petukhov, they have done a lot to systematize the investment potential of the Russian Far East.
"In fact, for each region there are identified those projects which are the most interesting in terms of attracting investment. In the portfolio of our Agency there are such projects at total amount of 1 trillion rubles. These projects cover such sectors as agriculture, aquaculture, oil and gas and others," he said.
Leonid Petukhov also noted that some of these projects already have local investors; in some cases these projects have initiators, who are willing to attract new investors from abroad.
According to the Corporation of the Far East development, for two and a half years 73 new businesses have been launched in the areas of priority development and Free port of Vladivostok in the Far East. In their creation and development there have been invested 114 billion rubles. 6.5 million new jobs were created. By the end of the year these figures will increase to 87 new enterprises with an actual investment of 130 billion rubles, and created 8.5 million new jobs.
As an example of operating enterprises we can call two businesses in Magadan region and in Jewish Autonomous region, they are the largest investment projects for these regions. There started working a mining and processing plant on the basis of Natalkinskoe gold deposits with actual investment of 58 billion rubles and Kimkano-Sutarsky mining and processing plant with investments of 24 billion rubles.
In addition, there are factories for the production of heat and sound insulating materials and wood processing in Khabarovsk Krai, the production and logistics center, a comprehensive platform for the development of all types of motor racing from karting track that hosts already the stages of the World Championships in drifting, motocross and Enduro in Primorsky Krai and the production of diamonds.
Out of the most ambitious projects under construction one can call the Amur gas processing plant with a cost of 950 billion rubles, the construction of the largest Russian Eastern petrochemical complex worth 650 billion rubles, the design of which has been completed and this week the final environmental assessment has been done. It is necessary to say about the upcoming modernization of the Baikal-Amur Mainline Railway and Trans-Siberian Railway with a total investment of 560 billion rubles, and the second stage with an investment of 493 billion rubles by 2023.
For today the Corporation of the Far East development has launched the digital format of work with potential investors - online via the website of the Corporation any investor who wishes to begin investment activity in the areas of priority development or the Free port has the opportunity to apply for an agreement on investment activity.
Also, the Corporation has the call center where each resident can turn to for advice.
To support each investment project on the territory of the Russian Far East, the Agency on attraction of investment has established an information system representing a uniform window through which the investor receives quick feedback on any issues that might arise. Today 587 residents of areas of priority development and Free port of Vladivostok and 14 infrastructure projects receiving a Federal subsidy for the construction of external infrastructure have been introduced into the system of information support of investment projects.
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