First of all, thank
you very much for meeting us today. It is an honor
for us. As we represent one of the leading business
magazines in Asia, could you, please, share your
opinion about importance of Asia for Nakhodka city?
We always understood especial importance of Pacific
Rim for Nakhodka because our city is a part of Asia.
It became possible to speak about wide integration
of Nakhodka into Pacific Rim in the middle of 1980th,
when there still was Union of Soviet Socialist Republics
and Nakhodka became a leader in development of free
economic zone.
We created a concept of development of Nakhodka
free economic zone based on the sample of free economic
zones in China and other socialist and capitalist
countries. Taking into account importance of development
of Russian Far East, we tried to keep pace with
our neighbors - Pacific Rim. Unfortunately, during
Perestroika our government only talked about necessity
of integration into Pacific Rim but did not undertake
real actions. Though when free economic zone was
established in 1992 there were approximately 540
joint ventures in Nakhodka, whish was more than
in the rest of Russian Far East in whole. Unfortunately,
Supreme Soviet of Russian Federation, precursor
of current State Duma, adopted customs code, which
did not include the term "free economic zone"
and free economic zone "Nakhodka" was
on the paper only but terminated de facto on the
1st of July 1993.
I believe that had the government assisted us -
Far East, Primorsky Krai, probably the situation
with the region economy would have been absolutely
different. Let us take for example work of our ports.
Nakhodka processed up to 35 million tons of cargo
in 1991; there was a celebration of 1-million Japanese
container processed in Vostochny port in 1992. Million
containers processed during a year was a good index.
However, our ports processed only 12 million tons
of cargo and about 30 thousand containers in 1998.
The situation became better only after Primakov's
government and later Putin assumed office. Thus,
25 million tons of cargo and about 100 thousand
containers were processed in 2001, so the growth
was obvious.
Lately Putin visited Primorye twice - first when
he was a Prime Minister, then when he became a President.
Today Kremlin pays close attention to its eastern
territories because Far East is 40 % of Russian
territory, which contains half of its natural resources,
with population of 7 million people only. So federal
authorities are not satisfied with the situation
when people leave Russian Far East for more prosperous
regions of the country because of difficult living
conditions and feeling of isolation from civilization.
Seeing President's and federal authorities' interest
in the Russian Far East, our major business also
"went to the East". Today "Severstal"
company became an owner of public company "Vostochny"
port, the biggest enterprise; "Eurasia Holding"
controls public company "Nakhodka Commercial
Seaport"; "Alliance" took control
over public company "Nefteport"; "Rosneft"
company owns public company "Rosneft-Nakhodkanefteproduct",
major petroleum storage depot. By the way, now this
petroleum storage depot is being reconstructed and
it will allow to process up to 12 million tons of
petrochemicals there annually.
What are the leading sectors in Nakhodka? Where
can foreign investors invest their money?
First of all, they can invest in fish industry,
transportation industry such as development of our
ports, ship repairing industry and timber processing
industry. I believe that good roads building is
a perspective field as today the number of cars
exceeds many times the capacity of roads available
in Primorye.
Tourism is one more industry that is still at the
initial stage of development. There are unique opportunities
for tourist business development in Primorye and
Nakhodka. There is rest at the beaches, scuba diving
and trips on the boat in summertime, ski mountaineering
in wintertime and hunting and fishing during almost
the whole year. Unique Ussuriisk Taiga is the main
pearl of Primorye, where rare plants and animals
can be found, for example, Ussuriisk tigers and
leopards.
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But this is the question,
if I am an investor, should I invest my money in
Vladivostok or Nakhodka? And if in Nakhodka, then
why?
Vladivostok has all the natural advantages - it
is Krai center, major city with better-developed
infrastructure. On the other hand, Nakhodka is the
major economic and transport center of the country
in the Far East - the most important ports, ship
repairing plants and fishing enterprises are situated
here. We have a free territory and advanced economical
experience, highly qualified labor and special people
of Nakhodka living here, valuing their independence
and believing in their own potential. Finally, we
have better ecological situation and lower criminal
level.
You are fond of gardening. In order to grow the
harvest you need water and fertilizers. What "water"
and "fertilizers" do you need if we imagine
that Nakhodka is a garden?
Water is investments, and fertilizers are people,
who will invest. Then this "garden" will
flourish. There is an old saying: the more water
the better life.
Are there examples of successful business with
foreign investment here in Nakhodka?
Yes, of course. For example, there is joint venture
"Sonica" - kolkhoz "Pacific Ocean".
They made good investments in fish processing in
1991 - 1992. As a result, I saw their fish products
in New York in 1993. But there are more examples
of Russian successful businesses so far. Like 27-year
old Alexander Mechetin's company "Synergy",
which became an owner of "Nakhodka Meat Plant"
that is considered to be one of the best in Primorsky
Krai. They have their own well-known brand and dairy
foods production business; recently they became
an owner of "Ussuriisk Balsam" plant,
a major wine and vodka producer in the Far East.
In addition, "Synergy" opened "Coliseum",
a major supermarket in Nakhodka.
There are a lot of conditions necessary for foreign
business development - long distance communication,
insurance and reinsurance companies, time-proved
banks, Russian Ministry of Foreign Affairs office,
customs office, etc. As I have already mentioned,
there are many highly qualified specialists with
higher and secondary professional education, who
are able to work at the modern technological level,
in Nakhodka. In addition, Nakhodka is dynamically
developing students' city - we have 5 thousand students
per 185 thousand people. We managed to retain all
vocational schools.
However, a lot has to be done in order to create
normal city infrastructure and draw foreign investments
here. I mean roads, good hotels and utilities; but
the most important thing is State guarantees for
foreign businessmen.
Victor Semenovich, you have been working in the
administration for more than 15 years already, it
is a long time. What inheritance would you like
to leave behind you after you retire?
Nakhodka is my life. During difficult years of Perestroika
and "post-reform" Nakhodka, as many other
Russian cities, had to overcome great problems,
but we managed to save Nakhodka from a global crisis.
I happened to be a Mayor in the "period of
transition". I want, no matter how paradoxical
it may sound, the time when I was a Mayor to be
the most difficult for Nakhodka so that new Mayor,
new administration and most importantly Nakhodka
citizens will not face such problems as we have
today. Nakhodka has all the prerequisites to become
flourishing, rich and happy Russian city, which
deserves to be called "godsend" of Pacific
Rim region.
You last message to our readers.
I am very grateful to "Far Eastern Economic
Review" magazine for an enormous amount of
positive work that you do especially regarding issues
of Pacific Rim economies development and integration.
I am sure that your publications about Russian Far
East will help your readers to better know and understand
life and situation in Russian Far East, which is
an integral part of Pacific Rim.
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