First of all, we
would like to congratulate you with your new position.
In your last interview you told us about your goals.
As you are now the new Vice-Governor for foreign
Affairs what are your new ones for 2003?
If we talk about all my duties, the goals I mentioned
in the first interview remain the same, i.e. the
zone of my responsibility is the same. Additionally
I am responsible for the Department of Transport
and Communications and The Committee for Tourism.
There are two main positions that will be interesting
in 2003. First of all, is the increasing role taken
by the different regions of the Russian Federation,
which share borders with other countries. Some time
ago there was a meeting of the State Council of
the Russian Federation devoted to Russia's international
activity. One of the main aspects of this meeting
was the necessity of increasing the role of boundary
regions of Russia and their influence on the foreign
economic activity of this country.
We prepared a proposal for the Government of the
Russian Federation and the Special Consulting Council
that follows the instructions of the State Council
and collects the proposals of the regions. There
were a lot of proposals regarding developing relations
with China, North and South Korea, Japan, the United
States of America and other countries of the Asian
Pacific Rim.
It is very important for us to raise the profile
of our transportation systems in the international
exchange and flow of cargo. It is no coincidence
that we are expecting Mr Frank, Minister of Transport
of the Russian Federation, as this is one of the
main aspects of the general policy as we declared
transport corridors from Nakhodka and Vladivostok
to the western part of Russia. The former Vice-Governor
Ivanov told you about the transport corridors in
his interview. It means developing the activity
in this direction, increasing the efficiency of
the work of our ports, also connected with Sakhalin
projects, as Vostochny port will be considered as
a base port for accumulating cargoes meant for Sakhalin.
Secondly, we have already started our work, and
I am responsible for this, on creating the Pacific
Centre of Strategic Developments. This centre was
created according to the instruction of Governor
Darkin by analogy with similar organisations existing
under the Ministry of Economic Development and Trade
of the Russian Federation (Mr Gref) in Moscow, in
Saint Petersburg and the Volga river region (Mr
Kiriyenko). Last year we were considering this matter
from different points of view, studying the experience
of the mentioned centres. Governor Darkin made his
decision and signed an order to launch this project
on the 31st of December 2002. This centre is somewhat
symbolic. It will unite people working in the Academy
of Sciences, higher education institutions and representatives
of the real sector of the economy to accumulate
efforts to shape the strategy of the development
of Primorsky krai up to 2010. Last week I was in
Moscow and we concluded a cooperation agreement
with Mr Gref's centre since they were the first
and the general ideology comes from them. This task
is very important and we are to introduce our proposals
about the budget of the development by September
2003. Thus we have to divide the budget of Primorsky
krai into two parts - the budget for the functioning
and the budget of the development that will allow
us to move forward.
We have interviewed some foreign investors here
in Vladivostok and in the region and we understand
that there is still concern of investing money in
Primorsky krai because the legislative base is not
developed enough. What guarantees can the Administration
of Primorsky krai provide to convince them that
their investments will be safe?
Unfortunately it is true. We know the opinion of
businessmen and would-be investors. In November
2002 Governor Darkin and I attended the Annual Economic
Forum held in Harvard University, Boston, the USA.
We met some businessmen interested in the Russian
Far East and Primorye and they were talking about
the same problem as well. We are working at this
issue. However it is not easy as it is connected
with change in mentality of our society and the
mentality of those who work within police, military
organisations and law-enforcement authorities in
particular.
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Is the Administration doing anything to change
the tax policy regarding foreign investors? What
protection can they count on?
From our point of view it is not taxes frightening
off investors. The main problem for them is the
problem of the security of their money and their
personal security. We are trying to solve this
matter but it is far from being an easy one. One
of the problems is that in Russia there is a huge
gap between the poor and the rich. It encourages
infringements of the law. It is an abnormal situation
and the government understands it as the difference
between incomes of the rich and the poor can be
multiplied by up to 40-50 times, which is an enormous
gap. This is a basic reason for social tensions
in general.
On the other hand, there is also a question of
the efficiency of the work of special services.
I mean police forces and other law-enforcement
authorities. Their low salaries have influenced
a decrease in their professionalism as structures
maintaining surveillance, providing public security
and order. However it does not mean that we have
given up. We are continuing to build a system
of working with police and military structures
and businesses.
The image of Primorsky Krai is significant
for its future development. Are you planning to
hold event such as the APEC Forum again?
I think that we will not hold such a large-scale
forum in the nearest future as it takes a lot
of effort. But certainly we will conduct various
campaigns. We are planning to have the International
Cinema Festival in September and a conference
with the participation of customs services of
South-East Asian countries in October where we
will discuss the place of our customs service
as Russia is going to become a WTO member. This
question is a question of time; sooner or later
it will happen. The commission I head is involved
in analysing various circumstances connected with
Russia's entrance to WTO. We are considering different
aspects of life in Primorye: fishing and timber
industries, marine transportation, tourism, financial
sector etc.
Many directors we have met were talking about
importance and potential of the development of
the tourism sector here. Are there any plans to
boost tourism projects in Primorye?
Certainly this sector is very promising. We are
developing it. We have a program for coming years.
Unfortunately, we have got less money than ideas.
First of all, we should create proper tourism
infrastructure: hotels, tour services and attractions.
On the other hand, there is another issue worrying
us for example the cost of air tickets as the
prices are extremely high. Therefore when the
competition question arises, for example, Tokyo
- Shanghai or Tokyo - Vladivostok, we are losing.
We are working on this problem - to make air ticket
prices comparable with the world ones.
Last week there was a meeting of travel agencies
of Primorsky Krai. We appealed to them to invest
in the improvement of the customs and tourist
infrastructure. To be frank, there are companies
that would like only to make money and not to
invest it back into the infrastructure.
In the Ministry of Economic Development and
Trade are there any plans to encourage this infrastructure
development? Is there enough money to allot to
the Krai for this purpose in the federal budget?
Or you are counting on foreign investors' capital?
We rely on our own forces and possible investments.
We are looking forward to meeting Mr Frank, the
Minister of Transport, and hoping he will allocate
the Krai with a part of his funds for developing
transportation infrastructure in the Russian Far
East.
What questions will be discussed with Mr Frank?
We will talk about port infrastructure, increasing
efficiency of marine and air transportation, roads.
In particular, we are interested in the road in
Khasan district with exits to the boundaries with
Korea and China.
What will your message be to the readers of
our magazine many of which could be potential
investors in Primorsky krai?
We are waiting for them. We will do our best within
the limits of our authorities for those who will
need our help. We will do our best to assist their
business to develop successfully. We have a good
example: a diamond-processing plant will be opened
in March and it is a result of our successful
and mutual work.
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