Growth Areas in Russian Business and Economic Security in the Russian Far East
The Far East and Baikal Region Development Fund, Kolmar and the State Transport Leasing Company (STLC) discussed the growth areas in Russian business and the basis for interaction with the Asian-Pacific Region countries. New developments mechanisms for the Far East and the integration of the region in the Asian-Pacific Region (APR) economy are currently under way in Russia. Economic integration in the APR countries is one of the most important factors of the Far East's economic security.
Kolmar plays an active role in building economic relationships with the APR countries. In particular, China, Japan, India and Korea. In September 2016, the first trial lot of coal concentrate was sent as part of the previously signed agreement with the Japanese company, JFE Steel.
Kolmar effectively uses state tools of financial support, for example we entered into a private-public partnership scheme for the construction of the Inaglinskiy Coal Complex. Federal budget funds were used to build a railway branch line and a high-voltage power transmission line with electric substation there.
«Kolmar’s investment projects play a strategic role in the development of South Yakutia and the positioning of Russian coking coal on the international market. The FEDF (Far East Development Fund) is assessing the possibility of granting a loan to Kolmar for the comprehensive project to increase coal production at the Chulmakanskoye and Denisovksoye fields. The project stands out for its high level of elaboration which means the prospects of its implementation can be meaningfully estimated," said the Deputy to the CEO of the Far East and Baikal Region Development Fund Mr. Denis Askinadze.
Moreover, the Far East Development Fund is considering the possibility of taking part in the construction of infrastructure facilities of a dedicated coal sea terminal in the Khabarovsk Territory.
«A three-party agreement between Kolmar, the Far East Development Fund and the STLC was signed for the implementation of an investment project for the construction of infrastructure facilities of a dedicated coal sea terminal within the existing Vanino sea port in Muchke bay in the Khabarovsk Territory," said the Adviser to the CEO of STLC PJSC Mr. Stanislav Multakh.
In 2017, Kolmar plans to increase the output of marketable coal products by 56.7% in comparison to that of the current year. In 2018, the Company expects to produce 9.5 million tons of coal products. In 2019, Kolmar plans to produce 14 million tons of coal products, of which 12 will be for shipping (7 million tons will be coking coal concentrate and 5 million tons will be power generating coal).
«Our Company shows by example that in spite of all economic difficulties, Russian business has growth areas. We are implementing our projects in the territory of the Neryungri District of the Republic of Sakha (Yakutia) in really difficult conditions. We have constructed and continue to develop all the necessary infrastructure and support social and cultural facilities. Our Company has performed the first trial delivery of coking coal to Japan and China and we have no intention to stop there. Our plans include the further development of relations with Japan and the Asia Pacific Region countries," the CEO of Kolmar, Mr. Sergey Tsivilev, pointed out.
It bears remembering that an agreement on the delivery of South Yakutian coal was signed between the governments of the USSR and Japan in 1974. Thanks to the collaboration between the two countries, infrastructure was built and Neryungri town was established, which is currently the second in terms of significance in South Yakutia, and the production of coal with some of the best properties in the world was launched.