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PRIMORSKY KRAI
Where Russia meets Asia





Gorchakov Victor.V.

Interview with Gorchakov Victor.V.
Vice-Governor for Foreign Affairs of Primorsky krai





11 February 2003

Gorchakov Victor.V.
Vice-Governor for Foreign Affairs of Primorsky krai


 
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.

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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