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Results of the Russian Far East’s development presented and new plants launched

September 4, 2024, Primorye Territory, Russky Island

Vladimir Putin heard reports by Deputy Prime Minister and Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev and Minister for the Development of the Russian Far East and the Arctic Alexei Chekunkov. He also familiarised himself with an interactive presentation of results of the Russian Far East’s development and took part, via video link, in the opening of new plants launched by residents of priority development territories.

The Ozyorny mining and refining facility, a modern plant specialising in mining and processing ores based on the polymetallic, mostly lead and zinc, deposit of Ozyornoye in the Republic of Buryatia, has been put into operation. It can produce up to 6 million tonnes of ore per year, including up to 600,000 tonnes of zinc concentrate per year and 82,000 tonnes of lead concentrate per year. Up to 1,300 new jobs will be created when it reaches its full production capacity. The plant will produce about 4.5 percent of world zinc concentrate output. The project has been implemented by the Ozyornoye Company. Ozyornoye Company General Director Vladislav Sviblov narrated about the company.

The Port of Sukhodol, a maritime complex specialising in receiving, storing and loading coal to sea ships in the southern Primorye Territory, has reached full production capacity. Following the introduction of additional capacities, its freight turnover will amount to 12 million tonnes of coal per year and prospectively to 20 million tonnes. Among other things, the project has been implemented to ease access to port infrastructure for small and medium-sized coal producers. The port is equipped with two shiploaders, each capable of handling 3,500 tonnes of coal per hour. Four stacker-reclaimers have a capacity of 3,500 tones per hour each.

The infrastructure includes a coal storage facility for 915,000 cubic metres, a cargo handling rail terminal (14 tracks), and a railway station (20 tracks). The explanations were provided by General Director of Seaport of Sukhodol Sergei Kropotov.

The first stage of the Primorye plastic pipe plant has been launched. It produces 20 to 1,200 mm single- and multi-wall polyethylene pipes for water- and gas-supply systems. Its manufactures are noted for their long service life (over 100 years) and will be in demand in the context of gas distribution programmes and housing and utilities upgrade projects.

The first stage includes four high-technology lines for a total of 18,000 tonnes of products per year. After the second stage becomes effective in 2026, this figure will rise to 35,000 tonnes per year. The plant has been built by Polyplastic Group, a resident of the Primorye priority development territory. Explanations were given by Chairman of the Board of Directors Lev Gorilovsky.

* * *

Deputy Prime Minister – Plenipotentiary Presidential Envoy to the Far Eastern Federal District Yury Trutnev: Mr President,

First, I would like to report that we have created an integrated governance framework for promoting development on a macroregional level in Russia’s Far East as part of the objectives you have set forth. In includes 81 laws and almost 500 government acts for ensuring that investors feel safe here and can generate profits in the Far East. Of course, there is an ongoing effort to further improve this framework. This year we have been drafting a law creating an international priority development territory. In 2023, we adopted a law governing deliveries of essential goods to the northern territories – people there really needed it.

What have we achieved with this solution? This macro region has been above the national average in terms of its main development indicators for a third year in row. These indicators include fixed capital investment, construction volumes, housing construction, corporate revenue and minerals extraction.

Over the past 10 years, the macro region attracted 4.2 trillion rubles in private investment, including 800 billion since the previous Eastern Economic Forum in 2023, and also launched 152 enterprises and created 18,000 jobs.

The international environment has changed, creating new challenges, as well as new development opportunities for Russia’s Far East.

Developing the Eastern Operating Domain within our national railway system has primary importance in terms of developing the Far East and national development in general. On the one hand, this requires a lot of work and substantial funding. On the other hand, the 3.7 trillion rubles we need for upgrading the Eastern Operating Domain will also contribute to developing the Far East.

Having more businesses and new investment project means that the region needs more electricity. Even today, the power grids in Primorye and Trans-Baikal territories, Buryatia, and the Jewish Autonomous Area undermine investment. Mr President, the Energy Minister will present proposals during today’s meeting resulting from your instructions to the federal Government.

At the same time, we need to do more to ensure that investment keeps growing. For that, we believe that we need to carry out a sectoral review in order to examine all the key sectors which contribute the most to developing the Far East in order to identify their potential and what needs to be done to attract more investment.

We must support the effort to establish two metallurgy clusters in the Khabarovsk Territory. In keeping with your instructions, we will carry out master plans, build shipyards, and expand deposit extraction sites by carrying out additional mineral surveys in the Far East.

In agriculture, land reclamation efforts will enable us to use more land.

Mr President, last year I reported on our plans to reach 10.5 trillion in investment by 2030. Today, I would like to tell you that we believe that we need to go beyond this point. This is why I am asking you to set this objective at 12 trillion. We will deliver.

Vladimir Putin: I can just as well set it at 15 trillion or higher, but we must proceed from what these projects actually represent and the support measures the Government can offer.

Yury Trutnev: Of course, Mr President.

Vladimir Putin: Do you think this 12-trillion goal to be realistic?

Yury Trutnev: We can do it.

Vladimir Putin: Great.

September 4, 2024, Primorye Territory, Russky Island