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VLADIVOSTOK/ PRIMORSKY KRAI
Where Russia meets Asia
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.