Putin Flies to the End of Russia: Chukotka Part Two

In the article reporting on development plans for Siberia, a few of the photos presented were of Anadyr and some more follow:

As mentioned in Part One, the city’s airport is across the bay that has no bridge.

Pevek is a port on the Arctic Ocean and gateway to many resources.

At the end of his trip to the Chukotka Autonomous Okrug, Vladimir Putin held a meeting with the region's Governor Vladislav Kuznetsov:

Vladimir Putin: How are you, Vladislav Garievich?

Vladimir Kuznetsov: Vladimir Vladimirovich, thank you for such a detailed conversation with people – so effective at the same time. If I may, I'll tell you about the economy of the Chukotka Autonomous Okrug.

Vladimir Putin: Of course.

Vladimir Kuznetsov: I visualized it a bit [in the presentation]. The first slide is just a few macro figures from the economic point of view.

Our economic development plan has now been drawn up until 2030. I have taken 2028 here as a five-year plan. From the point of view of the gross regional product, we will grow significantly.

Our main development vector is the development of industrial production. We are currently implementing major investment projects. One of our biggest projects is Baimsky [GOK], a copper mining and production project. It increases copper production in the Russian Federation by a quarter. It is in a good state of implementation, the project is very large-scale, because it requires the construction of a large infrastructure. A terminal in the port of Pevek is being built for it. We are seeing an increase in industrial production.

The only thing is that in 2028 there is a slight decline, but it is due to the fact that one of our gold-bearing deposits will exhaust its reserves by this time. But just from 2029, we will start to increase industrial production from the Baim project, that is, copper. And we have the second major project that we are implementing, a tin mining project, [the deposit] "Pyrkakayskie shtokverki", also near Pevek. And here, too, we will have significant growth beyond 2029.

We also have growing investments in agriculture, including in the cultivation of vegetables. We see a fairly large increase in closed ground. You know that most of the products are imported to us. This is expensive, and from the point of view of agricultural products, it is also not very convenient, because people want fresh food.

Vladimir Putin: Of course.

Vladimir Kuznetsov: So for us, the option that you saw today with greenhouses is the right direction. And as part of the development of the Anadyr agglomeration, we plan to triple the production of vegetables.

I have already started talking about our economy, that is, what we currently have and use. This is traditional gold mining for us. Large projects "Kekura", "Maiskoe" – 54 tons of gold. Coal. We mine coal. We have very good coal in the Bering basin. This is coal for metallurgy, coking coal with a very low sulfur content.

We are also diversifying our economy. As I have already said, we currently have three greenhouse complexes in operation, and several more complexes will start operating in the near future, which will triple production. Now we have about 21 percent of our own vegetable supply. We see that it will be about 65 percent in a year.

Vladimir Putin: Do they produce boats?

Vladimir Kuznetsov: Yes, this is a very interesting thing. This is our manufacturer, this is the production of ramp boats that we need for river navigation. For us, this is a solution to many issues in this short period of logistics. That's why we support this company. It produces the correct vessels adapted for our region for navigation.

And, of course, our clean energy sector. Here we are working in several directions. On the one hand, we are a leader in terms of nuclear energy. We have our first floating block, the Akademik Lomonosov, in Pevek. And as part of the Baim mining project for copper production, four floating power units of 50 megawatts each are being built by Rosatom. Two of them are already in the build.

Akademik Lomonosov in Pevek

I would like to say that we would not have had such industrial production and development if it were not for probably one of the best investment climate in the country. The three preferential regimes are the territory of advanced development, the free port of Vladivostok, and we are completely located in the Arctic zone. On the one hand, this reduces budget revenues at the initial stage, and on the other hand, in our harsh climate, it allows attracting investors. Therefore, I would like to express my deep gratitude to you, the Ministry of Economic Development, and Yury Petrovich Trutnev for these decisions.

I have already mentioned that alternative energy is developing in our country. This is indeed a very correct path for us from the point of view of nuclear energy, because it is sometimes difficult for us to implement traditional energy projects.

Vladimir Putin: You provide up to 100 thousand people with electricity, right?

Vladimir Kuznetsov: Yes. It is also an interesting project, and we have signed an agreement with Rosatom that a reactor that does not yet exist will be installed there as part of Atomredmetzolot's development of the Sovinoe field. This is the Shelf-M small reactor with a capacity of 10 megawatts. This is practically a battery that connects the infrastructure, it feeds such small areas. This is, of course, an innovative solution. It is very correct for us, because the infrastructure is very expensive.

Vladimir Vladimirovich, as I have already said, the Baimskoye field, the Pyrkakai Stockworks, the tin production facility, and the Sovinoye field are all going to be launched in the near future.

From the point of view of traditional support, traditional crafts of indigenous peoples of the North. This is very important, because along with language, it is the basis of culture. For example, coastal residents are primarily engaged in fishing and St. John's wort. These are communities, and here we support them by the fact that now, when they are engaged in mining, 25 percent of the animal is taken from the point of view of the useful component. We have now started to set up workshops for deep processing of sea St. John's wort and reindeer husbandry products. This allows you to significantly increase the useful return, which takes you to another level.

And here, of course, the second issue was that reindeer herders have very low salaries. It does not allow attracting young people. Actually, the growth of the reindeer population is limited not by natural conditions, but by the fact that young people do not enter the profession.

That is why we have been making the salary more competitive since February this year, and we are significantly increasing it. Plus, through deep processing, we will improve the efficiency of the industry and will also increase the staff here.

Vladimir Vladimirovich, the areas where we are moving are crop production, which I have already mentioned, and poultry farming.

Vladimir Putin: Fish processing?

Vladimir Kuznetsov: Yes, fish processing.

The situation here is quite difficult, because due to natural conditions, the number of fish is decreasing. Therefore, we are now moving on to what we will do, including breeding and processing plants. This will allow us to fully provide for ourselves, and, perhaps, already enter into sales outside.

Of course, housing construction. This is necessary – it is necessary to ensure living conditions, to attract new specialists.

Vladimir Putin: Your dilapidated housing is also a problem, right?

Vladimir Kuznetsov: Emergency housing is definitely a problem. But we have a plan for implementation, and we are currently actively building. We have built a lot this year.

We have quite high prices – what we talked about when we talked with the Far Eastern governors. But now the Ministry of Construction is solving this problem, because when we co-financed, say, two percent, because of this difference in prices, our co-financing reached 65 percent. We don't have such budget sources, but it's getting easier now.

And of course, the program " HOME.RF " on rental housing is also a good help for us. Last year, we were among the first in the Far East to launch such a house in Anadyr.

Vladimir Putin: Modular?

Vladimir Kuznetsov: No, it wasn't a modular house. We have built a house with 46 apartments and have already commissioned it as part of this rental housing program. We have laid another house, and we will do the same next year. This is a very good support program for attracting specialists.

Vladimir Vladimirovich, what we see in terms of results by 2028, the image of the future, I wrote [in the presentation], is the next page. Attract investment in five new explored large deposits of gold, silver, and copper. Three projects on indigenous and small-numbered peoples of Chukotka should be brought to self-sufficiency for deep processing. Increase vegetable production by 3.5 times. Increase the availability of poultry meat by at least 30 percent. In a full year, we will close ourselves to the need for an egg. To revive the export of fish products, he talked about the factories. And provide at least 40 percent of the assortment with own-made food products.

Of course, we are developing a tourism program, as you mentioned earlier today. There are several key tasks here. First of all, it is infrastructure. We have now built and rented a 40-room hotel in Pevek, because people who fly to these base points need somewhere to live.

Starting next year, we will also start building a 40-room hotel in the Coal Mines. We are supported by the Ministry of Eastern Development. Under the concession agreement, the hotel will be built.

We are planning to build several logistics complexes in the Northern Sea Route's main cities. Without this, the economy will not function normally, and logistics hubs are needed.

And I said that we will expand the production of passenger ramp boats [a particular type of auto ferry]. This is the basis of our river navigation [Crossing the river to get to airport and other facilities].

Vladimir Vladimirovich, if we talk about the social sphere and creating comfortable living conditions, I would like to mention several factors that, in my opinion, are key. This is medicine first of all, because it is the basic level of human protection. And here I would like to thank you that at the defense of the Anadyr agglomeration plan, you drew attention to medicine not only from the point of view of the Anadyr agglomeration, but also spoke about Chukotka as a whole, about the staffing of our specialists. Together with Mikhail Murashko, we are currently developing a program, and we are close to completing the roadmap for full, one-hundred-percent staffing of specialists, especially narrow specialists. In principle, we have a good staffing level, under 90 percent, but there is a big problem with narrow specialists.

The second issue is housing. That is, we need to build, we need to reduce prices. We are now actively doing this, including telling you that with " DOM.Russian Federation " making rental housing projects. Plus in terms of [development] In the Anadyr agglomeration, we have – and the budget will already be laid – the construction of the corresponding housing stock. Also, in terms of the Anadyr agglomeration, we have the construction of several infrastructure facilities that are extremely important for us. For example, a gym in the Coal Mines in Anadyr. As you rightly said, people should play sports, and it will be possible.

Separately, I would like to express my gratitude for speaking about two other things that are of fundamental importance to us. This is a matter of the Internet. Modern development is simply impossible without it. Since last year, we have high-speed Internet in Anadyr. And since you said that it is necessary to develop the Internet in Chukotka as a whole, we have already worked with the relevant ministry, with Maksut Igorevich Shadaev, and are close to signing a roadmap for the development of the Internet in the Bilibino agglomeration. We will connect to Yakutia, and by 2026 we will have the Internet in the part that will allow us to redistribute the released satellite resources and make a good connection to the Internet in the entire Chukotka Autonomous District.

And the second issue, the one you raised, is also extremely important for us – this is the issue of transport logistics, because for us, stable logistics means planes and helicopters, and here both external and internal [logistics]. In other words, our task is to ensure that at least three flights fly to Moscow.

Vladimir Putin: I read this.

Vladimir Kuznetsov: And we flew to the nearest logistics hubs in the Far East, because sometimes you have to get to the cities of the Far East via Moscow. This is counterproductive.

Vladimir Putin: Of course.

Vladimir Kuznetsov: Domestic flights are also getting easier here. Next year we will purchase two helicopters for leasing at our ChukotAVIA enterprise, and we will have a fundamentally different flight schedule. Our goal is to make it possible to fly from any locality to Anadyr once a week. Now this is not the case in some localities – two weeks or more. We will strive to make it once a week.

Here, of course, we have quite large expenses for subsidizing domestic air travel, because reasonable fares are much higher than people can afford. Unfortunately, at the level of the Russian Federation, there is no program that would adequately support domestic flights. Mr Putin, if possible, I will ask the Ministry to think about this too.

Vladimir Putin: There are programs, but a regional company has been created.

Vladimir Kuznetsov: Yes, but the costs are very high, and the subsidies that make it possible to bring tickets to an acceptable economic level for people fall entirely on the budget.

Vladimir Putin: Do you have a piece of paper there?

Vladimir Kuznetsov: Yes. Vladimir Vladimirovich, there are still some problematic issues.

Vladimir Putin: Let's talk.

Putin the administrator at work. He does more than just kick the tires and listen to the engine. Optimization is an oldie when it comes to tech terms, but that’s what Putin is—an optimizer. Rosatom is rolling with all sorts of nuclear generators for the Arctic. All the mines mentioned have websites and online photos for those interested. The development of small ports like Pevek is essential to support the Northern Sae Route. And as mentioned in an earlier item about the Russian Arctic, there’s the massive continental shelf that connects to Russia’s and is thus its domain to develop. As revealed in Part One, Putin loves to govern; it’s what turns him on; it’s his Bliss, as Dr, Joseph Campbell would put it. And his team members seem to share that trait.

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