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200-plus agreements worth $27 billion at forum to 'open up Russian Far East'

05 September 2016

Session seen as a significant step towards improving economic prospects for vast priority region including eastern Siberia.

Japanese premier Shinzo Abe called on Russian President Vladimir Putin to work together to end the 'abnormal situation under which a peace treaty has yet to be signed relating to the end of World War II more than 70 years ago. Picture: Kremlin.ru

Major agreement reached at the Eastern Economic Forum on Russky Island, Vladivostok, included:

* the intention to proceed with a $7.67 billion Amur gas and chemical complex investment project between the Far East Development Ministry and Sibur 

*a $5.68 billion  agreement to construct a mineral fertilizers production facility in the Primorsky region, a project linking the Far East Development Fund and the National chemical group

* a $1.5 billion agreement to develop Natalka gold deposit in Magadan region between the ministry and Polyus, with the potential of producing 15 tonnes a year

* agreement on developing Verkhne-Munskoe kimberlite field between the ministry and Alrosa in a $967 million investment scheme. 

Meeting with investors

The forum was attended by more than 3,300 people, including 207 heads of Russian companies and 94 heads of foreign companies. Picture: Kremlin.ru

In another deal, Britain's Amur Minerals corporation and the US-Canadian IG Copper signed an agreement of intent for a mining and processing plant that will unite the Malmyzhskoye gold and copper deposit in the Khabarovsk region and the Kun-Manie copper and nickel deposit in the Amur Region, with investment over five years expected to reach $1.5 billion.

Senior Russian officials stressed after the forum that they have overcome a 'stagnation' in economic relations with Japan. Economic Development Minister Alexei Ulyukayev said: 'The situation changed after four months.

'In April we talked about the fact that we are in stagnation with Japan, now it has changed. I think this is a historic opportunity for us, and the parties understand that, in order to compensate for this stagnation and return to the positive trend in our relations.'

Amur gas and chemical complex

It was decided to proceed with a $7.67 billion Amur gas and chemical complex investment project. Picture: Gazprom

An agreement was reached to enhance loan arrangements by the Japanese to major Russian projects such as Arctic LNG, and the third stage of Sakhalin-2 oil and gas project.

'State-owned banks under the Japanese have the right to provide loans only in conjunction with private partners, but no more than 60%,' he said. 'In ordinary life, it is certainly correct, we also try to use that way, this is an option for public-private partnerships - but now it is not about normal life.

'Therefore we have agreed with the Japanese partners that this will be an exception, and state-owned banks will be able to provide 100% of loans for Russian projects.'

Deputy premier and presidential envoy to the Far Eastern Federal District, Yuri Trutnev, said: 'The Second Eastern Economic Forum has proved that it is in demand. We see that the business is willing to come here, and this leads to a revival of the business environment. 

Natalka deposit

Natalka gold deposit in Magadan region has the potential of producing 15 tonnes a year. Picture: assoc.khv.gov.ru

'That means that the forum is held in the right place at the right time. As a result, new projects and enterprises emerge in the Far East.' He promised: 'We will definitely go further than the package of proposals and laws for the Far East, which were presented at the forum.'

New 'mechanisms of development will certainly emerge next year'.

Japanese premier Shinzo Abe called on Russian President Vladimir Putin to work together to end the 'abnormal situation under which a peace treaty has yet to be signed relating to the end of World War II more than 70 years ago.

'If things go on as they have, the same discussions could continue for decades. If we let things lie, we will not create better possibilities for future generations,' he said.

Russia and South Korea signed memorandums

Russia and South Korea signed memorandums between their respective ministries of industry and trade. Picture: Kremlin.ru

He proposed annual meetings in Vladivostok between the leaders to review progress on his eight point plan for deepening economic relations between the countries covering energy, developing the Russian Far East and other areas. 

Russia and South Korea signed memorandums between their respective ministries of industry and trade. The Russian state corporation Roscosmos and the Korea Aerospace Research Institute (KARI) agreed to intensify bilateral cooperation in space activities.

The forum was attended by more than 3,300 people, including 207 heads of Russian companies and 94 heads of foreign companies.

'In total, there were more than 1,500 business representatives,' said Far East Development Minister Alexander Galushka. 'Foreign participants represented 56 countries. The delegations with most people were Japan - 246 people, China - 227, South Korea - 128 people."

Comments (1)

Congratulations Russia, Japan , Korea et.al. It is great that start economic projects in Russia specificly Siberia and the Far East. It is cooperation, good business for everyone, jobs for people and it further peace.
William McLean, Copenhagen, Denmark
24/09/2016 22:37
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