«Investment Russia» – news for April 2017

Strengthening cooperation with ASEAN

Last month the Vice-President of the public organization "Investment Russia", the head of the working group on investing in tourist and recreational facilities and cooperation with the ASEAN countries Amelin Arkady Vladimirovich visited Southeast Asia. For a little more than a year Arkady Amelin was with business visits in Thailand, Singapore and, for the third time, Indonesia.

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The purpose of the activity of LLC “Investment Russia” is, first of all, assistance to entrepreneurship in attracting investments to the Russian Federation. At the same time, our organization has always very sensitively captured the most relevant areas of state economic policy. One of the main political and economic trends of recent years is the “turn to the East”, the development and deepening of business cooperation between Russia and the ASEAN countries (Association of Southeast Asian Nations). It is clear that such cooperation is a two-way road, it involves the movement of goods, services and capital in both directions, as they say, at the oncoming courses.

The main place in the business interaction of Investment Russia with the ASEAN countries is the development of tourism, including the development of resorts, as well as attracting investments in various projects in agriculture, energy, infrastructure, etc.

It should be noted that the last year was a special year. It marked the twentieth anniversary of the Russian Federation’s cooperation with the ASEAN organization, which unites 10 countries of this region of the world with a combined population of 630 million people. The Association includes the Sultanate of Brunei Darussalam, Vietnam, Indonesia, Cambodia, Laos, Myanmar (Burma), Malaysia, Singapore, Thailand and the Philippines.

Commemorating the significant date, the third anniversary Russia-ASEAN summit was held in Sochi on May 19-20, which became the largest international event on the territory of the Russian Federation in 2016. The summit was attended by the top management of each of the ten participating countries of the forum. Russia was represented by President Putin V.V., who in one day was able to meet with the head of each delegation, most often the first person of the state, and discuss the most pressing issues of bilateral cooperation. The summit was held under the general slogan “Towards a strategic partnership for the common good”.

In parallel with the summit these days, in Sochi, a business forum was held, which brought together experts and businessmen from all participating countries. Representative of Investment Russia, Vice President Arkady Amelin, who participated both in the summit and in the forum, held a series of business meetings with business representatives of several ASEAN countries, which resulted in further business contacts in Russia and abroad, the signing of agreements on cooperation, and gave start to cooperation on a number of joint projects.

At the moment, Investment Russia actively cooperates with Indonesia, Cambodia, the Philippines, establishes a business partnership with Singapore, Laos, Myanmar and other countries in the region.



Vice-President of Investment Russia spoke at the round table

On April 13, the Round Table “Prospects for the Development of Industrial Real Estate at the Stage of Growth of Industrial Investments: State-Business Interaction” was held in «Business Russia».

The event was attended by Vice-President of the All-Russian Public Organization “Investment Russia”, Head of the Joint Working Group on Foreign Investors Support, Commercial Director of Tenzor Consulting Group Sergei Orekhanov.

Initiators and moderators substantive discussion on the development of industrial development in the capital region became a Department of the city of Moscow for competition policy and member of General Council of Business Russia, Business Ambassador to Spain Edward Gulian. The business event was supported by the RF CCI and “OPORA of RUSSIA”. In addition to the Department for Competition Policy, three other specialized structures of the Moscow Government took part in the round table: the Department of Science, Industrial Policy and Entrepreneurship, the Department of Economic Policy and Development – the State Agency for Management of Investments, the City Property Department. The entrepreneurial community was represented by professionals in the real estate markets, production and consulting, business associations, industry experts.

The participants of the roundtable identified and discussed the problems that create obstacles to the progressive development of the production business and, as a result, the development of industrial development. And, also, suggested ways of possible solutions to these problems. Chairman of the Committee on Entrepreneurship in the real estate economy of the RF CCI Alexander Kanshin asked the relevant vector: “In the current economic conditions, business should start looking closely at the true development of industrial real estate and its most promising component – the creation of industrial parks.” Also, he dwelled on the complexities that owners of industrial parks today give: in terms of access to energy resources, it is the need to obtain loans for the development of the infrastructure of technological connection systems; In terms of tax policy – as before, a significant burden is the combination of land tax and property tax.

The business ombudsman in Moscow, Mikhail Vyshegorodtsev, expressed the opinion that developers will be more actively involved in the construction of industrial real estate, if the city’s demands are discussed with them, and mutually acceptable terms for the requirements to residents are found in the dialogue, for example, to ensure the level of salaries for employees of resident companies. Also, the Business Ombudsman recalled his earlier proposals on reviving the market of land assets in Moscow.

Representatives of the Government of Moscow actively participated in the discussion. Vasily Kalinkin, the head of the department for attracting and supporting investments of the Department for Competitive Politics, informed the audience about the Unified Standard of Trading, adopted in 2016, based on the principle of “one window for business”. The presentation of the Deputy Director for Strategy of the City Investment Management Agency, Vladimir Chernyavsky, “The Moscow Investment Portal: Functional for the Industrialist and the Investor” was devoted to the expansion of opportunities. Deputy Head of the Industrial Policy Department of the Department of Science, Industrial Policy and Entrepreneurship Dmitry Litvin spoke about “Regional measures to support the development of industry in the city of Moscow.” Together with the speakers on numerous questions of the professional community, Igor Ledehov, the head of the department for preparation of tenders of the Moscow City Property Department, answered.

Experts of the business event were Lyubov Tsvetkova, Chairman of the Board of the Moscow Investors Association, Dmitry Lipchak, President of the Association of Real Estate Market Experts, Mikhail Shaposhnikov, Director of the Strategic Consulting Department of RealJet. They noted the systemic problem in the partnership interaction between government and business: there is a lack of continuity of decisions, which hinders the development of any business, but especially industrial one.

Entrepreneurs – managers of manufacturing companies from various industries, developers, consultants supported the Chairman of the RF CCI Committee, the Business Ombudsman in Moscow and experts. In particular, the member of the General Council of Business Russia, the chairman of the branch office for sports construction, Maxim Grishin said: “We forget about technology and technology in the continuity and, as a result, do not look beyond the horizons, do not plan for at least 10 years ahead”. Natalia Volkova, Deputy General Director of Orstomoda LLC, and General Director of TECHPROPLIT LLC Elena Smirnova focused on the difficulties of applying existing tax benefits: the law was adopted, but the mechanisms for its implementation are poor. Analyzing the state of the Russian industrial development, Vice-President of the Investment Promotion Company of the Russian Federation Investment Russia, Head of the Joint Working Group on Support of Foreign Investors, Sergei Orekhanov concluded: the development of industrial development is determined by the availability of benefits, which is formed, including conditions Business, which forms the power: the project will be profitable – there will be also an industrial development.

In conclusion, the moderators of the round table – Member of General Council of “Business Russia”, Eduard Ghulyan and head of the Department for public relations and media prep Tatiana Semenova summarized the discussion and voiced the General solution of the need to continue the dialogue of representatives of business and government in the form of direct dialogue at the site of the round table.


Head of Investment Russia in Primorye Viktor Akulin took part in the Russian-Korean Forum

South Korean business was invited to Primorye. Entrepreneurs and functionaries from the Republic of Korea responded. April 19, Vladivostok hosted the 7th Far Eastern Russian-Korean Forum.

Representatives of the authorities, diplomats and businessmen – only 200 people discussed at the forum prospects for cooperation between the two countries – Korea and Russia. South Korean investors invited the governor of the province and stressed their initiatives here will support.

Vladimir Miklushevsky, Governor of Primorsky Krai:

– Today, like in the whole Far East, qualitative changes in the investment sphere are taking place. We have unprecedented measures to support business. Here I am referring to the areas of priority development and the Free Port of Vladivostok. These mechanisms are very in demand among investors. In Primorye, there are four territories of advanced development. They employ 32 residents. A hundred more at the Freeport of Vladivostok.



Vice-President of “Investment Russia” Arkady Amelin took part in the work of Rosturizm

The Federal Agency for Tourism of the Russian Federation in early April hosted a series of meetings of the working group to develop a draft concept for the Federal Target Program for the Creation of Tourist Clusters on the Territory of the Russian Federation (FTP) for the period 2019-2025, in which the Vice President of “Investment Russia “, The head of the working group on investing in tourist and recreational facilities, the general director of” Dimars Group “Arkady Amelin.

The current Federal target program “Development of domestic and incoming tourism in the Russian Federation (2011 – 2018)” was approved by Government Decree No. 644 of 02.08.2011 and expires next year.

The program was adopted with the aim of increasing the competitiveness of the tourist market of the Russian Federation, satisfying the needs of Russian and foreign citizens in quality tourist services, which is achieved by solving the following main tasks:

  • development of the tourist and recreational complex of the Russian Federation;
  • improving the quality of tourist services;
  • promotion of the tourist product of the Russian Federation in the world and domestic tourist markets.

Based on the results of the Program, tangible results were achieved on the development of the Russian tourist and recreational complex, and it received a positive assessment in the government, having entered the top five most effective federal targeted programs.

Thus, within the framework of the Program, 45 tourist-recreational and auto-tourist clusters are being built in 35 regions of the Russian Federation (which, as of March 1, 2017, corresponds to more than 500 tourist infrastructure objects, 212 of which are put into operation, 172 objects of the providing infrastructure, 93 of which commissioned, 29 completed construction, 50 are under construction). About 18 thousand additional jobs were created, and the number of people employed in tourism in 2015 was 596 thousand people.

Out of the federal budget, about 17.666 billion rubles have been allocated for the construction of a providing infrastructure for tourist, recreational and auto tourists’ clusters. In 2017, co-financing from the state budget will amount to 3.4 billion rubles and 3.3 billion rubles in 2018.

The system of public-private partnership that has developed in the implementation of FTP has contributed to increasing the attractiveness of tourism in the eyes of private investors. As a result, about 2.3 rubles of extra-budgetary investment were provided for one ruble of federal budget funds under the Program.

All these measures taken by the state had a direct impact on the development of the domestic tourist complex and the growth of Russia’s popularity as an attractive tourist destination among, first of all, its own citizens. Only in the past two years domestic tourism has grown by more than 30%, giving an average annual growth for the period 2015-2016 of 18%. The internal tourist flow by the end of 2016 amounted to about 50 million people.

The development of domestic tourism is of great importance for the country and is one of the tasks of import substitution, and the development of inbound tourism is one of the promising ways of solving the problem posed by the President of Russia V.V. Putin’s tasks to increase the share of non-primary exports in the country’s total exports. Today, tourism forms 3.4% of the country’s GDP, affecting 53 related industries, creating one workplace in the tourism sector entails the creation of up to 5 jobs in related industries.

According to the UN World Tourism Organization (UNWTO), the Russian Federation for the first time in 2016 for the first time entered the top ten most frequently visited by tourists.

The new Federal target program for the creation of tourist clusters in the territory of the Russian Federation for the period 2019-2025. Should continue the case, taking into account the experience gained and the analysis of errors.

The Russian President Vladimir Putin drew attention to the miscalculations and shortcomings committed during the implementation of the FTP, on 22.11.16, at the meetings of the All-Russian Popular Front “Forum of Actions”. In particular, it was noted that local authorities often fail to fulfill their obligations to attract a contractor and a private investor to the announced project, with funds from the federal budget being spent in full. The President of the Russian Federation set the task to strengthen control over the efficiency of using funds, and also to involve representatives of public organizations more widely in the monitoring mechanisms at all stages of the Program implementation.

In addition, when developing the new FTP, the task was to improve the mechanisms for interaction with investors.

This is what the Deputy Head of the Federal Agency for Tourism Nikolai Korolev drew attention to, opening the meeting of the working group on drafting the concept of the Federal Target Program for the creation of tourist clusters on the territory of the Russian Federation for the period 2019-2025. With representatives of each of the 15 priority tourist destinations (destinations) of Russia. The regions were represented by the Vice President of Investment Russia, Arkady Amelin, and it was recommended that the IR and similar organizations be more widely involved in order to more successfully ensure the participation of private investors in financing projects.

Amelin A.V. On behalf of OOO “Investment Russia” came to an agreement with the leadership of Rosturizma to carry out interaction on an ongoing basis. The Vice President of the Republic of Iran also held talks with representatives of a number of republics, territories and regions of Russia and reached an agreement to strengthen cooperation, including at the local, regional level.