The Presentation of Results & Meeting on Development of Russia's Far East

As previously noted, these are two separate sessions.

The Ozerny mining and processing plant.

Russia’s Far East contains a massive trove of mineral riches and will see the establishment of many modern mining facilities to do the extraction work while impacting the environment as little as possible and then to return the location to as close to its initial condition as possible, which is the opposite of the Soviet and Western Capitalist methods where the externality of the destroyed ecosystem was never considered. Russia learned the very hard lessons from its Soviet Era as the health of all Soviet citizens was harmed by those excesses along with the environment, which is why Putin commissioned the national project to build a nationwide series of oncology facilities to deal with the massive spike in cancers caused by that Soviet Era malpractice.

The Presentation of the results of the development of the Far East and the launch of new enterprises that follows is outlined by the Kremlin:

Vladimir Putin heard reports from Deputy Prime Minister - Plenipotentiary Presidential Representative to the Far Eastern Federal District Yury Trutnev and Minister Alexey Chekunkov, got acquainted with an interactive presentation of the results of the development of the Far East and took part in the opening of new enterprises of residents of the territories via video link advanced development.

Production was launched at the Ozerny Mining and Processing Plant – a modern enterprise for the extraction and processing of ores on the basis of polymetallic, mainly lead-zinc deposit Ozernoye, located in the Republic of Buryatia. Capacity of the mine for the production of zinc and lead concentrates - up to 6 million tons of ore per year. The volume of zinc concentrate is up to 600 thousand tons per year, lead - up to 82 thousand tons per year. When reaching production capacity, up to 1300 new jobs will be created. It is planned that the enterprise will produce about 4.5 percent of the world's zinc concentrate. The project was implemented by the Ozernoye company. About the company said Vladislav Sviblov, General Director of Ozernoye LLC.

The port of Sukhodol, a specialized marine complex in the south of the Primorsky Territory for the acceptance, storage and loading of coal on sea vessels, has reached full capacity. With the commissioning of additional capacities, the cargo turnover will amount to 12 million tons of coal per year, in the future it will grow to 20 million tons. The project has been implemented, among other things to facilitate access to port infrastructure for small and medium-sized coal mining enterprises. The port is equipped with two ship loaders with a capacity of 3500 tons per hour each. The performance of the four stacker-reclaimers – 3500 tons per hour each. Infrastructure complex includes a coal warehouse with a capacity of 915 thousand cubic meters, a railway freight front (14 tracks), railway station (20 tracks). Explanations were given by the general Director of Sukhodol Sea Port LLC Sergey Kropotov.

Running the first stage of production of the Primorsky Plastic Pipe Plant - enterprises for the production of single-layer and multilayer pipes made of polyethylene for water and gas supply with a diameter of 20 to 1200 mm. service life (more than a hundred years) and will be in demand for sale programs for gasification and modernization of housing and communal services. Within the framework of the first stage, four high-tech lines with a total capacity of 18 thousand tons of products per year, upon completion of the second stage by 2026, this figure will be 35 thousand tons per year. The plant was built by a resident of the Primorye Advanced Special Economic Zone - Group Polyplastic", explained by the Chairman of the Board of Directors Lev Gorilovsky.

The need for these three enterprises is very high, particularly the pipe plant as the region needs to produce its own products to supply its infrastructure needs and not have the shipped from European Russia. I’m curious about the longevity of coal exporting and what the port facilities will be used for when that activity ceases. The ceremonies marking the opening of these three facilities weren’t included in the transcript making it much shorter and limiting the discussion to the main topic:

Y.Trutnev: Dear Vladimir Vladimirovich,

First of all, I would like to report that within the framework of the tasks set by you, a complete system of managing the development of the macroregion has been formed in the Far East. 81 laws and almost 500 government acts ensure the safety of investors and the ability to invest profitably in the Far East. Naturally, the system is developing. This year, the law on the international territory of advanced development is in the works, and last year the Law on Northern Importation was adopted, which is also very necessary for people.

What are the results of the system? For the third year in a row, the macroregion's basic development indicators have significantly exceeded the national average. These are indicators such as investment in fixed assets, the volume of construction work, housing commissioning, revenue of organizations, and the volume of mineral extraction.

Over the past 10 years, the macroregion has received 4.2 trillion rubles of private investment. Since the eighth Eastern Economic Forum last year, 800 billion rubles have been received, 152 enterprises have been commissioned, and 18 thousand jobs have been created.

The changed international situation has created both new challenges and new opportunities for the development of the Far East.

First of all, the development of the Eastern Railway Polygon is of great importance for the development of our country's Far East and the whole of our country. On the one hand, a lot of work and significant funds will be required. On the other hand, the 3.7 trillion rubles it costs to modernize the Eastern landfill will also make a big contribution to the development of the Far East.

The growing number of enterprises and new investment projects require a new amount of electricity. Today, in Primorye, Transbaikalia, Buryatia, and the Jewish Autonomous Region, the state of the energy system is already holding back the flow of investment. Vladimir Vladimirovich, today the Minister of Energy will report to you at a meeting on the proposals made on your behalf by the Government of the Russian Federation.

At the same time, new steps are needed to ensure that investment inflows continue to increase. We believe that this should be an industry analysis, in which we will look at each of the main sectors of the development of the Far East, what reserves are available and what needs to be done to ensure that more investment comes to these sectors.

We will need to support the creation of two metallurgical clusters in the Khabarovsk Territory. We will implement master plans on your behalf, build shipyards, and increase the volume of deposits used through more advanced exploration of mineral deposits in the Far East.

In agriculture, we have the opportunity to introduce new volumes of land into circulation through land reclamation.

Mr President, last year we reported to you that by 2030 we plan to reach the volume of attracted investments of 10.5 trillion rubles. Today I want to report to you that we don't think this goal is sufficiently intense, and I want to ask you to set us a target of $ 12 trillion. We can handle it.

Vladimir Putin: I am ready to set a target of 15 or more, but we should only take into account the reality of the projects that are being proposed and the support measures that are possible from the Government.

Yu.Trutnev: That's right, Mr Putin.

Vladimir Putin: And you think it's real, right? 12?

Yu.Trutnev: We can handle it.

Vladimir Putin: Excellent.

Yu.Trutnev: I would like to give the floor to .

Vladimir Putin: Please.

Alexey Chekunkov: Dear Vladimir Vladimirovich,

In our work on social development and improving the quality of people's lives, we rely on the priorities set by the residents of the Far East themselves. Over the past year, the main issues were: the cost of living, the quality of healthcare, education, a comfortable urban environment, a decent salary and interesting leisure time.

In terms of creating new jobs, already launched projects have created 142 thousand new jobs, and, importantly, the average salary of residents of the TOP [territories of advanced development] and SPV [free port of Vladivostok] is 35 percent higher than the national average. At the same time, we continue to experience a shortage of qualified personnel.

One of the most important needs that people articulate is a high – quality living environment, and not only the apartment where the family lives, but also the whole city: the urban environment, streets, landscaping.

The tools we use to solve this problem are master plans, which I will focus on separately. This is the Far Eastern mortgage, which is perhaps the most popular tool for supporting people and young families. Thank you very much, dear Vladimir Vladimirovich, for extending this measure to the Arctic zone. At the same time, this tool allows you to attract new specialists to the Far East and the Arctic.

We ask you to consider keeping the Far Eastern and Arctic mortgage rates at two percent. In the total volume of mortgage programs, they occupy only four percent. At the same time, living conditions in these regions are difficult.

The Far Eastern mortgage allowed us to disperse the construction sector a lot. Over the past five years, we have doubled the volume of housing under construction. This result was also supported by the programs "Far Eastern Quarter", a separate contest of Far Eastern cities for improvement, and "Affordable Rental Housing". All these programs are run on your behalf.

Also, as part of the implementation of the master plan of the Vladivostok agglomeration, the issue of creating a satellite city of Vladivostok is being worked out. Two words about him.

In 1984, the Council of Ministers of the USSR decided to build a satellite city of Vladivostok, as it was called, in the Nadezhdinsky district. But the opportunity to implement this vision has only now appeared thanks to the infrastructure created for the APEC summit. This area can be reached from the city center in half an hour via a low-water bridge. Seaside businesses are already taking advantage of this proximity. More than a million meters of new housing are being created in Nadezhdinsky district. This is the fastest growing district in Primorye in terms of population and population growth – it has grown by seven percent in three years. Prepared a master plan, documentation of the territory planning. Our leading financial institutions are involved in the project: Sber, VEB. RF. We are currently working on forming a pool of developers.

The implementation of the master plans has begun. Already in 2024, 70 objects will be commissioned. In total, almost 1,000 new facilities are planned to improve the quality of Far Eastern cities by 2030.

We closely monitor the implementation of our plans. Here [in the presentation] are the leaders of the rating for the implementation of activities for which they are responsible by region and by ministry.

Of the 4.4 trillion rubles of necessary funding, 2.2 trillion is extra-budgetary. As of today, 27 percent of all activities are funded from the state budget. We believe that this is a good result for getting started. We have completed one year out of seven years of the project.

We are working on prioritizing master plans in government programs, national projects, and debt instruments.

The Far East is ahead of the national average in terms of the birth rate and the number of large families. This is largely the result of the Far Eastern demographic package, which you launched here at the Eastern Economic Forum in 2018.

Also, on your instructions, this year the program of payment of one million rubles [About $11,250] for mortgage repayment at the birth of the third and subsequent children has been expanded to seven more regions.

Vladimir Vladimirovich, I would like to tell you about another non-material measure. The Patriarch of Moscow and All Russia supported the proposal to baptize all third and subsequent children personally by the ruling bishop of the Far Eastern Diocese. We looked at how this practice exists in Georgia, and offered His Holiness options: either with the fourth child, or with the third to start. The Patriarch unequivocally said: from the third. Therefore, not only material incentives for having many children…

In terms of healthcare, new medical facilities are being repaired and built: from FAPs to high-tech ones. On your behalf, additional resources are directed to providing medical services in hard-to-reach and remote areas. But not only by financial measures. The example of Sakhalin and Yakutia: good results were achieved due to a different organization of the medical process, through the use of mobile teams. The population's coverage of medical examinations has increased, and the burden on emergency medical care has decreased.

We adjust the education system to meet the needs of the economy. Today, 70 percent of the staffing needs are working specialties. In colleges, together with our employers, we create production clusters where students study in conditions that are as close as possible to real production. Such clusters have already been established in the shipbuilding, aircraft, transport, and agricultural sectors. A total of 17 clusters were created. Next year there will be 28 of them.

In terms of higher education, together with the Ministry of Education and Science, we are implementing a strategic initiative of the Government, adopted following the results of the strategic session led by Mikhail Mishustin , on a separate competition "Priority-2030" for Far Eastern universities. That is, Far Eastern universities do not compete with the whole country, they compete with each other. This made it possible to allocate more than six billion rubles to 12 winning universities. The student numbers speak for themselves: 12 percent more students enrolled in 2023 than a year earlier. If this program continues, by 2030 the number of students in the Far East should reach plus 40 thousand to the current level.

We also fulfilled your request to introduce a special scholarship to the best school graduates, not only from the Far East, but from all over Russia, who enter Far Eastern universities. These are hundred-point winners of the Olympic Games. This scholarship was named after the great discoverer Gennady Nevelsky.

On your behalf, an innovative scientific and technical center (INTC) is being created on Russian Island. The Russian Government has decided to build it under the Far Eastern concession mechanism. The first building is already under construction in Primorsky Krai. Now the concrete is pouring. It will have an area of 7500 meters. All the squares have already been dismantled by future residents of this first building.

What is important: we also agreed with the Ministry of Education and Science on a program to attract leading scientists to the INTC. In other words, it will not just be the construction of beautiful buildings here, opposite FEFU, but it will be a program to attract up to a thousand scientists, including world-renowned scientists, so that Russian Island, together with FEFU, together with the megasience facility, will become an advanced scientific center of federal significance and a convenient platform for interaction with the scientific community of the Asia-Pacific region.

Of course, the Far East should be interesting, interesting for young people. In our master plans, we prioritize creating new museums, supporting cinematography, and creating creative clusters.

Dear Vladimir Vladimirovich, in Yakutsk this summer you met with cadets and graduates of the Muravyov-Amursky program. These are guys who have chosen to serve the development of the Far East as their path.

Two issues have already been released by almost 100 people. 67 people have already been employed in government agencies and development institutions in the Far East.

Thank you for the decision to extend this program to the Arctic. It is very popular. The competition for the third stream was 80 people per place, and by 2030 at least 300 new strong civil servants, who are united not only by common knowledge, but, most importantly, by common values, will work in the Far East and the Arctic.

All demographic measures and measures to improve the quality of life have reduced the rate of migration outflow, ensured the influx of young people in the 20-24 age category for seven years, and achieved a higher birth rate and large families than the average in Russia. Three regions of the Far East experienced population growth in 2023.

Vladimir Putin: In my opinion, there was an absolute influx in 2021.

A. Chekunkov: In 2021, there was an absolute influx throughout the Far Eastern Federal District, this is true, and in 2023 in three regions: Yakutia, Kamchatka and Chukotka.

Vladimir Putin: Maybe.

A. Chekunkov: Population growth. Of course, our task is to overcome the demographic cycle and ensure the influx of population. This should be supported by master plans. The key performance indicator in their preparation was the effect on the population of the respective cities.

Dear Vladimir Vladimirovich, we thank you for your continued support for the development of the Far East.

The report is over.

Vladimir Putin: Thank you. [My Emphasis]

The Plan. The Plan. Yes, the masterplan. Must follow up on the plan and constantly stay on top of it to ensure its proper progression. And the public participates in its capacities as workers, students, businesspeople, and government. China’s process is similar but not nearly as transparent to outsiders. And now, the meeting on infrastructure development in the Far Eastern Federal District, which has its attendees in two different locations:

Vladivostok

Primorsky Krai

Again, the meat of the discussion isn’t provided for the cameras, so we must rely of what Putin says in his opening remarks to anticipate what was discussed further. I would also assume some of what’s suggested will appear in the plenary session which has reached its conclusion and its transcript’s completed:

Vladimir Putin: Dear colleagues, good afternoon!

Today we will discuss issues that are crucial for our long-term systemic plans for the development of the Far East, for the confident operation of enterprises, and for the implementation of investment programs. And of course, to improve the quality of life of citizens who live in this huge macro-region.

First of all, we will focus on strengthening the energy and transport infrastructure.

Let's start with energy. We will consider here not only promising tasks, but also acute current problems.

Everyone is well aware that in August of this year in the Primorsky Territory there was a serious technological disruption in the operation of high – voltage equipment-500 kilowatts. Its effects were felt by almost two million people. I hope to hear what conclusions were drawn from this situation and what concrete solutions are planned to be implemented in the near future.

By the way, due to the prolonged heat wave in the south, we also had corresponding problems, blackouts, and people there also felt this for themselves. Yes, of course, to a certain extent this is a natural anomaly, but they happen, and we must also be prepared for this. Such operational actions should be linked to our systematic work.

In this regard, I would like to note that electricity consumption in the Far East is steadily growing. Well, thank God, of course, because what does this mean? This suggests that the economic growth rate here is higher than the national average. If in general, electricity consumption in the country increased by 1.4 percent last year, then in the Far East – by 3.5 percent. This reflects, as I have already said, the growth of business activity in the Far Eastern regions. Production facilities are developing dynamically here, housing is being built, and social facilities are being built.

It is expected that on the horizon until 2030, electricity consumption in the Far East will increase by an average of about five percent per year, that is, this rate will be twice as high as the national average.

This means that it is necessary to increase the volume of generation in the Far Eastern regions with the same rapid and high dynamics. Taking into account the specifics of energy systems, the projected demand of businesses and citizens for electricity, it is necessary to build stations and networks and develop the supporting infrastructure.

The relevant decisions are currently being worked out by the Government. In general, I note that by 2030, generation facilities with a total capacity of 2.6 gigawatts should be built in the Far East.

But what would you like to draw your attention to, dear colleagues? First of all, of course, this concerns the Ministry of Energy and other departments. We have a fairly large amount of outdated equipment in this region, and it will be taken out of operation, out of order. Therefore, in order to provide the necessary volume, it is necessary to keep in mind this circumstance.

Among the priority projects are the construction of the Yuzhno-Yakutsk TPP, as well as an almost fourfold increase in the capacity of the Svobodnenskaya TPP in the Amur Region. In addition, 270 diesel-powered stations should be upgraded, including in Yakutia and Kamchatka. At the same time, of course, we need to look further and make up plans for a more distant future right now.

Let me remind you that following the results of last year's Eastern Economic Forum, an order was given to prepare a long-term program for the development of the electric power industry in the Far Eastern Federal District, calculated until 2050. These are all long-term plans. The main thing is that we do all this on time.

It should be based on the General Layout of Russian electric power facilities. That is, where and in what time frame will thermal, nuclear, and hydroelectric power stations and renewable energy generation facilities be built? When I mentioned nuclear power plants, I was referring, of course, to the Far Eastern region as well. Why not? This is a promising area. If we are building so many objects abroad-how many already, I don't remember, twenty, or something? – and we finance these facilities to a large extent, we must implement the corresponding plans to increase nuclear generation in the country as well.

It also requires extensive power lines. This document must be approved by the Government before December 1 of this year. There isn't much time left. Today I am waiting for reports on how the work in these areas is progressing.

Further. Another topic of our meeting concerns improving logistics, improving the transport accessibility of the Far East and connecting its regions with each other. The task, as we understand, is not an easy one, given the vast territory of the Far Eastern Federal District. Here, first of all, the development of air transportation and the formation of new routes that are more convenient for citizens are among the priorities.

I would like to note that the volume of air traffic to Far Eastern destinations is also growing steadily. Passenger traffic has doubled in ten years, reaching a record 10.5 million passengers last year. Almost a quarter of them – 2.4 million passengers-used flights between the Far Eastern regions.

Last year, the Eastern Economic Forum set a goal for passenger traffic on domestic flights in the Far East to grow to at least four million people a year by 2030. To solve this problem, it is necessary to build and modernize the airfield infrastructure, expand the route network between the regions of the Far East, develop the fleet of aircraft and increase the availability of air tickets.

We need a regional plane. Yuri Petrovich Trutnev reported, and I, in fact, know from other sources: we are delaying and delaying everything to the right and again to the right awaiting the construction and appearance of this regional aircraft, which is so necessary for us.

I would like to ask our colleagues today to tell us in detail how the relevant plans and projects are being implemented, with particular emphasis on supporting air transportation along socially significant routes in the Far East, as well as on plans to build domestic aircraft for regional and small aircraft. Naturally, new cars should be competitive both in terms of their technical characteristics and price.

Further. We pay great attention to the development of highways in the Far East. Their condition plays in many ways a key role for efficient logistics, strengthening the economy of the region as a whole. And of course, to improve the quality of life, as I said.

Among the largest and most significant road objects built in the Far East in recent years is the bridge crossing over the Zeya River in the Amur Region. We must also implement another important and long-awaited project for people-the construction of a bridge across the Lena River in the Yakutsk region. Moreover, this is no longer a dead-end direction.

Let me remind you that we have established clear guidelines for the state of roads. At least 85 percent of the road network of agglomerations and at least half of the roads of regional significance should be, as they say, in a standard state by the end of this year.

Please tell us today how this work is progressing, as well as how the road infrastructure is developing as part of the implementation of the Far Eastern master plans. At the same time, of course, it is known that in some Far Eastern regions there is a risk of not achieving previously set goals within the specified time frame. In this regard, I hope to hear a report on how it is proposed to catch up with the backlog. And in the future, we need to keep this issue under special control of the Government and regional authorities.

Separately, I would like to focus on what is planned to be done to provide high-quality access roads to automobile checkpoints on the state border. We are rapidly developing their infrastructure, and it is very important that these works are synchronized with road construction plans.

Finally, a strong competitive advantage of the Far East is its proximity to international logistics routes and its inclusion in the global system of commodity flows. Therefore, all our plans for the development of transport corridors in the Far East should also be linked to projects for the development of the Northern Sea Route. We often, if not constantly, talk about this.

Far Eastern seaports play an important role for our access to foreign markets. They already account for a quarter of the cargo turnover of all Russian ports, and this indicator will continue to grow objectively. This is an absolutely obvious thing.

I know that business, together with the regions and federal authorities, is implementing big plans to modernize and build berths and other port infrastructure facilities. It is absolutely necessary to support these projects. At the same time, it is important to expand access roads to seaports and increase the transportation capacity of railways.

We are systematically and continuously "expanding" the bottlenecks of the BAM and Trans-Siberian Railway. By the end of this year, their carrying capacity should increase to 180 million tons.

This year, the third stage of modernization of the Eastern Railway Polygon has started. It provides for an increase in carrying capacity to 270 million tons by the end of 2032, as well as a more efficient distribution of cargo flows to the ports of the Primorsky transport hub Vanino and Sovetskaya Gavan.

Please tell us in detail today about how this large-scale, systemically important project is being implemented.

Let's start with energy. The floor is given to Sergey Tsivilev, Minister of Energy. [My Emphasis]

Energy production facilities and fundamental infrastructure are clearly the two most important legs for all plans, and in the Far Eastern region both are hampered by many variables, one of which is the climate. I read a veiled jab at Rosatom to expand its operations. And IMO it’s clear that Russia’s Energy Strategy to 2030 is already in need of a rather generous adjustment. I know Rushydro has plans but they’ll take time to implement. Same goes for Rossetti. Thermal power plants are easiest to build but need distribution systems. As for the small regional airplane, I recently read a short blurb on its progress to becoming certified but couldn’t find it for inclusion here. And roads. And all this construction work takes people, often trained technicians. Even if the SMO was concluded tomorrow and the troops demobilized, they wouldn’t be enough to solve the problem. So, it’s one thing to plan and another for those plans to be realistic given fiscal and personnel restraints.

*
*
*
Like what you’ve been reading at Karlof1’s Substack? Then please consider subscribing and choosing to make a monthly/yearly pledge to enable my efforts in this challenging realm. Thank You!