Mikhail KAYKOV President Railway Constructors Union Vienna, 26 February 2013 Social and economic development of the Far East and Baikal region 1

2 21st Asia Pacific Parliamentary Forum January 2013 With the participation:

3 Presentation of projects of the Far East and the Baikal region has become one of the key points of 21st Asia Pacific Parliamentary Forum (27-31 January 2013 ) Mega-projects were presented with significance for Russia and the Asia-Pacific region, including related to the construction the spaceport, the pipeline, the federal highway that linked the eastern borders with the western part of the country, branches of aircraft and shipbuilding. Development of FE and BR within the framework Asia-Pacific region

4 Russia at major international forums In Russia is Leader in international forums  In “G20" - in 2013  In “G7” - in 2015  In BRICS – in 2015 Infrastructure projects in the transport sector Relevant to the discussion at these venues: Industry (mechanical engineering, shipbuilding, aviation, military-industrial complex)

5 Potential and Constraints Potential Unique natural resource potential: Mineral resources base The availability World Ocean resources Free area for agricultural development Hydropower Resources Reserves of clean fresh water Unique tourist and recreational potential Closeness to markets of the Asia-Pacific region Transit transport connections APR - EU Unique Technical Innovation platform: possibility of realization of industrial, agricultural and infrastructure projects "from scratch" using modern high-tech Degradation of the economic structure - mainly industrial feedstocks Undeveloped transport, energy, housing, social infrastructure - infrastructure investment restrictions Extreme climatic conditions, remoteness and difficult accessibility the territories Small size and localized nature of settlement Large volumes and long payback periods of infrastructure investment Increased engineering reliability requirements and special environmental requirements for life support systems The specific conditions of agricultural V

6 Country leaders’ decisions The country’s leadership has taken a number of important strategic decisions for the Far East and Baikal region on their development and better integration with the Asia-Pacific Region (APR) «In the XXI century, the vector of Russia's development is the development of the East. Siberia and the Far East are our enormous potential. This is an opportunity to take a worthy place in the Asia- Pacific region, the most energetic and dynamic region of the world». Address to the Federal Assembly on Approved Strategy for social and economic development of the Far East and the Baikal region in the period up to Fund for Development of the Far East and the Baikal region was established 2. Ministry of the Russian Federation on development of the Far East was formed In preparation until 01 April 2013 Government program «Social and economic development of the Far East and the Baikal region in the period up to 2025.»

7 Conditions for investment attractiveness of the Far East and the Baikal region Special economic zones: the simplification of their creation and management, the introduction of their specialization, facilitating coordination of construction and obtaining licenses for different types of activities, the use of various forms of PPP, etc. Removal of income tax and VAT for existing manufacturing businesses Tax holiday for newly established enterprises manufacturing and food industry, engineering Revision of electricity tariffs and rail transportation

8 United System of pipeline of Sakhalin- Khabarovsk-Vladivostok Construction of the pipeline system "Eastern Siberia - Pacific Ocean" Significant projects

9 Unified Energy System of the Far East

10 Europe – Russia - APR In the frame of 21st Asia Pacific Parliamentary Forum was held a Round Table «Asia Pacific – Europe: New Horizons of Co-operation” Round Table Discussion» Asia Pacific Parliamentary Forum Inter-Parliamentary Assembly of the CIS member nations Inter-Parliamentary Assembly of EurAsEC Parliamentary Assembly of the OSCE Parliamentary Assembly of the Council of Europe Parliamentary Assembly of the Black Sea Economic Cooperation «… Note the special role of the Russian Federation in the dialogue of civilisations as a country with a unique geographical position that possesses exceptional opportunities to act as an economic and transport bridge between Europe and the APR, and with experience of inter-faith and inter-ethnic cooperation ; Call for greater and more intensive exchange of law- making practices between the parliaments of the APR and Europe …» PARTICIPANTS: Final statement of the participants

Mikhail KAYKOV President of Railway Constructors Union 11 THANK YOU FOR YOUR ATTENTION