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PRIMORSKY KRAI
Where Russia meets Asia





Mr. Sergey Removich Sherstiuk

Interview with Mr. Sergey Removich Sherstiuk,
Chief Federal Inspector in Primorsky Krai


November 13, 2002

Sergey Removich Sherstiuk,
Chief Federal Inspector in Primorsky Krai

 
Many people say that Primorsky krai cannot develop without federal support. Do you agree with this point of view?

Yes, I agree with this statement, though potential of Primorky krai is significant. It is so because today conditions are good enough for development - krai has good ports and advantageous geographical location; it is rich in minerals and very attractive for tourists.

However, there is one problem. There are not enough people living on rather big territory of Primorsky krai. Its total area is 165,9 thousand square kilometers and its population is 2 million 150 thousand people according to last population census data. If we do not count pensionaries, who are more than half of a million in number, and children, then educated and able to work and develop various fields population has decreased immensely during stagnation period in our country.

Secong issue is financing of Primorsky krai as an integral part of its development. Our financing is insufficient, that is why we tried to show potential of krai at APEC forum in order to attract foreign investors' attention. Most of investment projects and financial inflows come from Russia. Russian capital prevails over foreign one.It is so because today we have insufficient normative base. Good laws could provide investors with an opportunity to invest in business development without risks and it would make Russian regions attractive for foreign investors.

Does federal government and your team help krai to develop by means of financing, providing with credits and loans or by management personnel assistance and expert judgements?

Our support includes all above-mentioned factors. If we talk about management, we are good managers ourselves. Each of us has economic education and we try to hire highly qualified personnel and improve education process.

When Boris Nikolaevich Eltsin was a president, governors, in particular, Eugeniy Ivanovich Nazdratenko, former governor of Primorsky krai, had vast authorities and the structure was totally different. Nowadays vertical line of authority is being built in accordance with Russian and krai laws. Region, in particular, Primorsky krai works according to Primorsky krai charter. Municipal bodies also abide by the laws. Region does not influence federal structures now. For example, recently chief of Domestic Affairs Department in Primorsky krai was appointed by minister of Domestic Affairs under agreement with governor. Today chief of Domestic Affairs Department is appointed by president's decree under agreement with Konstantin Borisovich Pulikovskiy and I write a conclusion. That is governor does not take part in it.

Building vertical structure of authority, we work with more than 60 federal structures nowadays, for example, with Domestic Affairs Department, central office of Civil Defence Affairs, Foreign Affairs Ministry, Taxation Police Department and Taxation Inspectorate. However, it does not mean that we do not cooperate with city and Primorsky krai administrations, as development of krai will also depend in many respects on authority and people that will administer business.

We have more than ten programs, which are called "Financing of federal target investment programs in Primorsky krai". I have reports about financing of "Modernization of Russian Transport System" program, federal housing program, "Children of Russia" program, "World Ocean" program and many other such programs. That is federal government allocates substantial sums in order to finance these programs. It makes a significant part of Primorsky krai budget. Of course, we have some difficulties with financing of the programs, especially with financing of "Far East - Transbaikalia" program. Everything would have been easy had there been much money in our treasury like in treasury of USA.

Despite your efforts to develop the region, there is still critique that federal authority supports krai insufficiently. Many people give an example of APEC forum - only one minister of science and technology came there and Mr. Pulikovskiy was not present at the forum opening ceremony. How can we be persuaded that it is really a priority krai for the whole Far East?

As for minister Klebanov's arrival to APEC forum, he was a head of national committee, so he came not only because of his rank.

In spite of the fact that Konstantin Borisovich Pulikovsky was not at that forum, he paid much attention to its preparation and conducting. Upon plenipotentiary's request I headed a special team that came to evaluate preparedness for APEC forum. I gave a big report at the meeting where the governor and all officials were present. We really influenced preparation for the forum. I believe that Vladimir Vladimirovish Putin's arrival a few days prior to the forum had an effect. He also supported Primorye from his part.

As regards the second part of the question, I can say that APEC forum was the first indicator that krai is a priority one. Political situation also stabilized. Primorye is rarely mentioned even in mass media. Recently we could hear only about Primorye, Chechnya, natural disasters and Primorye again in news programs…
As to the form and methods of work of plenipotentiary representation, today we have the Far Eastern investment company under the auspices of K. B. Pulikovskiy. Important governmental structures became the founders of this company. The company is young, but I think that we will see the results of its work soon. The multimedia communication project, development of a number of structures in tourist sector project presented by "Dalincomp" at the exhibition in Hyundai hotel as well as some other projects are very promising.

I would like to discuss situation in Primorsky krai because it borders upon China, North Korea and Japan. It used to be a strategical center from the military point of view and now it is a strategical center from the economic point of view. For example, you already have relations with North Korea. How are you going to develop and strengthen these relations?

Russian government carries out a policy in order to develop relations with China, Democratic People's Republic of Korea and Korean Republic. These are rather big projects. As to Democratic People's Republic of Korea, I participated in negotiations in Pyongyang in February. Konstantin Borisovich Pulikovskiy was a head of Russian delegation on the instructions of Vladimir Vladimirovich Putin. We discussed the whole complex of questions concerning agriculture, energy, industry as well as the Trans-Korean and Trans-Siberian Railways, which are attractive and profitable for us. These questions are also important and we can develop these fields pursuing our reciprocal economic interests. International question is very important for us. That is tendency to reunite in Korean Republic and Democratic People's Republic of Korea is also very important for citizens of Primorsky krai.

What can you say about development of China and Japan and relations between them? We know, for example, that prime minister of Japan is going to come to Primorsky krai next year.

Li Lan Tsin, vice premier of Council of State of China, visited us in July this year. We discussed a lot of interesting questions. For example, Russian Federation will be one of 21 countries with tourism priority in January 2003. The number of tourists will grow immensely because of migratory and tourist flows between China and Russia today. We have dynamic relations with China and Japan. We have active relations with China regarding both economic issues and tourism. The level of our relations with Japan does not improve, but the process does not stop at least. Our collaboration with China and Japan has the same format as it had in Soviet times - we export timber and saw-timber to Japan and Russian metal to China.

Major Russian metallurgical works invest a lot of money in the development of Russian ports. For example, major company "Severstal" bought "Vostochny" port and "Eurasia holding", invested a lot of money in Nakhodka port. "Severstal" is one of three major metallurgical companies in Russia. Two other companies are "Novolipetskiy metallurgical industrial complex" and "Magnet" - Magnitogorsk metallurgical industrial complex. "Eurasia holding" is also a very big West-Siberian metallurgical industrial complex.

The question about whether Vladivostok or Khabarovsk should become the capital of the Far East was asked many times and at the forum as well. What is your opinion?

Above-mentioned minister Klebanov said that Vladivostok is the Eastern capital of Russia, but today the president made Khabarovsk a center of the Far Eastern Federal District. I carry out president's order, but I would like Primorsky krai also to become a capital with time, though historically Khabarovsk always was a capital of Federal District.

It will be interesting for our readers to hear from you personally how you became a chief federal inspector in Primorsky krai and what preceded it.

My ancestors-migrants from Belaya Tserkov city in Ukrain moved to Primorsky krai in 1893. They cut through taiga and built two villages here - Khmelnitskaya and Brovnichaya. My genealogy in Primorsky krai started here and Primorsky krai history is not long.

I was born in Zarubino village in Khasansky region. I finished school and graduated as a "mechanical engineer, production engineer and mechanician" from the Far Eastern State Technical University in Vladivostok. I worked as an engineer-designer at an armament factory, built helicopters, taught, volunteered at youth organization and worked at territorial inspectorate of krai administration. Being a head of Legislative Assembly, I was writing the laws of Primorsky krai for five years.

When K. B. Pulikovskiy became president's plenipotentiary in the Far East, he offered me to become a federal inspector in Primorsky krai. At the beginning I was a federal inspector and now I am a chief federal inspector in Primorsky krai. I graduated from Russian Academy of Public Service under the auspices of president and completed my post-graduate study in Russian Academy of Public Service in Moscow. I lived here most of the time except for the period when I studied in German Democratic Republic in 1989 and travelled abroad a lot.
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