Putin pledges help for Far East infrastructure to bring in FDI

Far East infrastructure: Russian President Vladimir Putin this week vowed to turn the country’s Far East into a “locomotive of the world economy”, to encourage its development and to attract inward investment by reducing  transport and energy costs.“It is necessary to prepare specific measures that would lead to the lowering of transport and energy costs of doing business in the Far East,” he told delegates at the inaugural Russian Eastern Economic Forum in Vladivostok. “Our main priorities [for the region] are the expansion of economic freedom, and the provision of better business conditions for domestic investors, so that there is an effective capital flow [that will allow] the Russian Far East to compete successfully with leading [world] business centres.” 
Several major initiatives were confirmed during the course of the Forum, including:

  • A $19bn investment by Rosneft to create 100,000 jobs
  • The granting of free port status to Vladivostok
  • A $7.4bn upgrade to the Trans-Siberia and Baikal-Amur Mainline (BAM) rail networks 
  • A commitment of $100m from the Japan Bank for International Cooperation (JBIC)y to develop the  infrastructure for the new cosmodrome at Vostochny 
  • An investment of between $10m and $50m in from South Korea’s Joeun Mulsan in a fish and seafood processing factory in Vladivostok
  •  A new  IT Park in the Republic of Sakha funded by China’s Huaqing Housing 
  • A series of new nuclear plants across the region