Investors from Asia are highly welcome in the Russian Far East. Last week a company from China signed Protocol of Intentions with Sakhalin to upgrade Poronaisky Sea Port. Investors from Singapore might also soon participate in the operations of another port – Sovetskaya Gavan. Learn more in the weekly review of important events by FederalPress.
p { margin-bottom: 0.21cm; }strong { font-weight: bold; }Investors from Asia are highly welcome in the Russian Far East. Last week a company from China signed Protocol of Intentions with Sakhalin to upgrade Poronaisky Sea Port. Investors from Singapore might also soon participate in the operations of another port – Sovetskaya Gavan. Learn more in the weekly review of important events by FederalPress.
Chinese companies invest in Sakhalin
Inner Mongolia KingHo Group signed Protocol of Intentions with Sakhalin Region about modernization of Poronaisky Sea Port located in the south-eastern part of the island. The port’s upgrade project is worth 1.5 billion US dollars. Investors expect profits since the port will be servicing oil and gas production in Arctic shelf. Initial value of the project was 400 million dollars.
Investors from China also plan to build an oil and gas equipment plant on the Sakhalin Island. Their financial interests include a coal deposit in the central part of the island and creation of a timber processing facility.
Sakhalin reaches out to Japan
Power generating company “RAO ES of the East” makes plans to start a seven years project to export electric power from Khabarovsk Region and Sakhalin to Japan. Two thermal power plants working on coal and producing one gigawatt of electricity each, and underwater cables connecting Russian territories with Japan are worth 187 billion rubles. The first stage of construction will take 2 years, all works will be completed in seven years.
Some of the experts voice skeptical opinions regarding the project’s perspectives. It is likely that Japan will restore its energy system damaged by the natural disasters in March this year much sooner.
However, RAO ES of the East says this initiative will at least unite power grids of Sakhalin with greater network of the Far East. Khabarovsk Region authorities promise allotting one billion rubles to the construction of a thermal power station in Sovetskaya Gavan.
RAO ES of the East board of directors offer to make an additional issue of 3.64 billion shares of the holding. Registered capital of the company today comprises of 41.04 billion common shares and 2.08 billion preference shares. Funds gained via additional emission will be invested into new projects including Sovetskaya Gavan power station.
Gas pipes routes
President of Yakutia Egor Borisov announced Prime Minister Putin was supporting Yakutia in a long-term dispute with Gazprom. Prime Minister spoke of the necessity to connect gas pipeline Yakutia-Khabarovsk-Vladivostok with ESPO (Eastern Siberia – Pacific Ocean) because this would be financially wise.
Originally, Gazprom wanted to build a 24- kilometers shorter pipeline. But the project caused strong opposition of ecology activists and indigenous Evenk people on whose territory the pipeline was designed to go.
Sea routes to America
Government of Khabarovsk Region made an unexpected statement last week telling of a greater advantage of the region’s ports (Sovetskaya Gavan and Vanino) against the ports in Primorsky Region. The preference is found in the fact that the way to Northern America is 1000 kilometers shorter from Khabarovsk area.
Following this provocative statement, authorities of Khabarovsk Region made an offer to investors from Singapore to participate in Sovetskaya Gavan operations. Another advantage derives from the port’s status of a special economic zone.
Football advances
Administration of Primorsky Region will allot 830 million rubles out of 1.5 billion for the construction of a new soccer stadium for 15 thousand viewers. Football Club “Luch-Energia” will most likely become the resident of the new sports facility. The club is looking to return to Russia’s Prime League and participate in the European football championships.
Political changes in Kamchatka
Governor of Kamchatka Vladimir Ilyukhin dismissed old government on March 21 and appointed new vice-governors on March 24. Deputy Plenipotentiary in the Far East Vladimir Romanov will most likely to be commissioned to represent Kamachatka in Moscow.