Russia's 100 BILLION Far East Development MEGA PLAN "Mission of all Russians" -Putin

100 BILLION Boost:

Moscow region, Russia
November 29, 2012

-Video from RIA Novosti
(Видео с Российское агентство международных новостей)

President Vladimir Putin met with regional government officials on Thursday to discuss the development of Russia's Far East.

Putin stressed that the Far East development ministry "has not been fulfilling its purpose so far", and that Russia needs to "create a management system that would help us reach the goal of accelerated development of Russia's eastern territories."

The president proposed a tax break for new companies that invest over $16 million in the region.

He also said the new state fund for the development of the Far East could have its capital increased from the starting level of around $490 million to $3.2 billion(100 billion rubles), if it proves to be effective.

1.Various of the meeting. 00:00 -- 01:52

2.Vladimir Putin, President of the Russian Federation:

The Far East Development ministry has not been fulfilling its purpose so far. For example, the Regional Development Ministry transferred federal programs for our eastern territories to the Far East Development Ministry only on November 13th, 2012. As a result, there are misunderstandings as to who is responsible for what, and work fails. We need to create a management system that would help us reach the goal of accelerated development of Russia's eastern territories. For example, we have discussed the idea of creating a state corporation. I know that not everyone agrees with this approach, but I don't mind revisiting the issue.
01:52 -- 02:32

I propose a tax adjustment for new companies, the so called green fields. We could set their state profit tax at zero during the first ten years. Of course, I am talking about industries with the investments in the amount of at least 500 million rubles.
02:32 -- 02:55

It (the Far East and Baikal Region Development Fund) supports investment projects on terms and conditions of the public private partnership. We have already passed the decision to decapitalize its equity capital in the amount of 15 billion roubles. We'll keep analyzing its performance, and if the fund proves to be efficient, we shall be increasing its capital to reach the target 100 billion roubles.
02:55 -- 03:17

I want to make a special emphasis on the issue of developing natural and mineral resources of our territories in the East. First, we need to check how terms and conditions of the license agreements to develop resources are observed and withdraw licenses from those violating the terms. Second, we need to introduce a licensing program for major deposits that are part of the unallocated reserve fund. The program must include mandatory conditions for the contractors to build and develop relevant processing facilities on sites. It should also include terms and conditions facilitating mineral resources development and processing clusters as points of escalated growth. Third, we need to increase multiple times the share of the high-technology processing enterprises, to develop a powerful advanced processing infrastructure, as well as make a good use of the region's transit and recreational potential. Creating a network of transportation infrastructure and production facilities is the key to the region's development.
03:17 -- 04:23


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