At the macro-regional level (i.e., in the entire Federal District), Far East and the Baikal Region Development Foundation OJSC, Ministry of the Far East Development operate.
Function of the Far East development institutes
Far East and the Baikal Region Development Foundation OJSC, established at the initiative of the President and the Prime Minister of the Russian Federation in November 2011, invests in new companies and infrastructure projects. Vnesheconombank is a shareholder of the foundation. The foundation focuses on projects with a high multiplier effect. One of its objectives is to attract foreign partners with professional competences to the region. Priority sectors for the foundation include transport and energy, agriculture and bio-resources, industry, tourist and recreational areas, development of natural resources. In addition, the foundation supports projects implemented in the priority development territories. Wood processing, chemical and petrochemical industry prevailed in the foundation's loan portfolio in late 2013.
Foundation's loan portfolio as of 1.11.2013., %
The total value of projects approved by Far East and the Baikal Region Development Foundation to comprehensive examination is over RUB 23 bln.
In March 2015, Khabarovsk Airport OJSC and Far East and the Baikal Region Development Foundation OJSC signed an agreement, where the Foundation expressed its interest in investing in the construction of a new passenger terminal. The project is expected to attract both international financial and industry partners.
In March 2015, the Foundation signed an agreement of intent with "Petropavlovsk-Ferrous Metallurgy" GC to acquire 100% stake in Rubicon LLC, which builds a part of the Russian border railway bridge across the Amur River, Nizhneleninskoye-Tongjiang on the border of China and Russia.
Ministry of the Russian Federation on the Far East Development coordinates the implementation of state programs and federal target programs. In addition, the Ministry is engaged in the selection of priority investment projects. Its objectives include attraction of the foreign and domestic private investment, creation of the favourable investment climate, development of small and medium enterprises, formation of the legal framework for the macro-region development.
Establishment of Autonomous Nonprofit Organization "Agency for Strategic Initiatives for New Projects Promotion" and Autonomous Nonprofit Organization "Agency for Human Capital Development" is being discussed at the moment. The first will promote the region and work with the investors. The objectives of this agency will include creation of the favourable image of the Far East, known in the business community. The agency will ensure the implementation of the "single window" principle in work with the investors. In addition, its functions will include the organization of various activities aimed at disseminating the information on the Far East as an investment attractive macro-region and participation in similar events held by other organizers. Promotion of the Far East will take place in the media as well.
Agency for Human Capital Development should be established to provide human resources in the priority development territories created in the Far East, including organizing relocation of the specialists from other regions. The agency's objectives also include the formation of Far East positive image.
Association of Economic Interaction of the Russian Federation Constituent Entities "Far East and Trans-Baikal", created in 1990, works with federal authorities, international organizations and foreign governments. The Association contributes to solving urgent problems, including taking part in the development and implementation of the state programs. It is also involved in the promotion of the Far East regions through the organization of international and inter-regional forums, conferences, workshops and exhibitions. The Association comprises the coordination councils on economic affairs; foreign economic activity; industry, science and innovation technology; transport and transport infrastructure; agribusiness; social policy; tourism; The Committee for Sustainable Development of the Amur River basin.
Regional development institutes are specialized agencies for attracting investments and supporting investors of Russian Federation constituent entities:
- SFI "Investment Promotion Agency of the Republic of Sakha (Yakutia)";
- Development Corporation of Kamchatka Territory OJSC;
- ANO "Agency for Attracting Investments in Primorsk Territory";
- ANO "Investment and Development Agency of the Khabarovsk Territory";
- Regional Budget-Funded Institution "Sakhalin Agency of Development Projects"
- Commission for Priority Investment Projects and Investment Climate Improvement at the Government of the Amur Region
- NC "Magadan Regional Foundation for Assistance to Entrepreneurship"
- Investment Fund of the Jewish Autonomous Region
- Investment Council of the Jewish Autonomous Region
Regional specialized organizations identify and support promising projects, provide advisory support to the investors and support projects based on "single window" principle. Furthermore, their functions may include popularization and formation of the region attractive image by engaging in business activities, publishing materials in the media. In addition to the specialized organizations, investment projects may be supported by the Ministry of Economic Development (such as in the Amur region).
Far East and the Baikal Region Development Foundation and the regional authorities of the Russian Federation constituent entities included in the Far Eastern Federal District signed the cooperation agreements which provide for the establishment of working groups for the implementation of investment projects, promotion of regional investment sites (including PDA), organization and conduct of business missions of Asia-Pacific countries' representatives.
Results of the development institutes' activities
In late 2014, Investment and Development Agency of the Khabarovsk Territory supported 9 investment projects based on the "single window" principle, provided information and consulting support to 12 projects. The volume of investments stated in the framework of these projects is RUB 17.6 bln/, the estimated amount of tax payments to the Khabarovsk territory budget for the period until 2018 – RUB 1.7 bln., number of jobs created – 1,871. The database of investment sites was created.
In 2014, NPO "Magadan Regional Foundation for Assistance to Entrepreneurship" consulted 23 companies. It concluded 64 agreements on the provision of subsidies/grants/guarantees. The total amount of grants and subsidies in 2014 amounted to RUB 42,920 thou. . The Fund has powers of Magadansky agro-industrial park managing company. A preliminary concept of the agro-industrial park development was developed.
Since 2011, Regional Budget Institution "Sakhalin Agency of Development Projects" developed 12 pre-design concepts, of which 5 investment projects were granted the status of "priority investment project of the Sakhalin region", and another 4 projects are discussed in order to provide the support measures. The total cost of projects is estimated at RUB 20 bln., of which RUB 14 bln/ at the expense of private capital. The planned number of jobs created is over 2,000 jobs. The tax yield is about RUB 15 bln.
In 2013, SFI "Investment Promotion Agency of the Republic of Sakha (Yakutia)" organized financing of two investment projects of local significance and one project of the republican importance.