The Minister of Regional Development of Russia Igor Slyunyaev met with the Ambassador of the Republic of Singapore in the Russian Federation Ms. Lim Kheng Hua

25.02.2014

03Regional Development Minister Igor Slyunyaev held a working meeting with the Ambassador of the Republic of Singapore in the Russian Federation Ms. Lim Kheng Hua, during which they discussed the prospects of cooperation of Ministry of Regional Development and the National Investment Agency “Invest in Russia” with the Investment Agency of the Republic of Singapore “Singapore International Enterprises “. The meeting was also attended by the Deputy Minister of Regional Development Michael Krouk , Executive Director of the National Investment Agency “Invest in Russia” Yury Voicehovsky, Regional Director for Europe of the State Agency “International Enterprises Singapore» Ho Chi Hing, Director of the Moscow branch of the State Agency “International Enterprises Singapore” Gwyneth Tang, directors of relevant departments of the Ministry.

Opening the meeting Igor Slyunyaev noted that one of the main functions of the Ministry of Regional Development is to improve the investment climate in the Russian regions and to render assistance in attracting foreign investors in Russia.

According to the Minister, at the moment the efforts of federal authorities, development institutions, regional management teams in Russia are not coordinated properly, that is why most investors often do not see the true potential of Russian regions.

 

Igor Slyunyaev said that in order to resolve these issues at the initiative of Ministry of Regional Development and the National Council for Investment Climate Development under the auspices of the Ministry of Regional Development Russian Investment Agency was established, which in terms of extra-budgetary funding will allow potential investors to quickly get accurate information about the conditions, procedures and options of conducting investment activities in the regions, and will coordinate particular development institutions at the regional level.

Welcoming the establishment of the Russian Investment Agency, Ms. Lim Kheng Hua stressed that Singapore companies are showing great interest in the implementation of projects in the Russian regions in various industries.

The Ambassador said that currently several projects involving Singapore investors are conducted on the territory of Russia and supported by “International Enterprises Singapore”.

One of the largest projects is the program of development of dairy livestock and crop production in Penza region. Within its framework on January 30, 2012 Singapore-based Olam International and the Russian company “Rusmoloko” signed an investment agreement under which the financing of the first phase of the program up to 2015 will be about U.S. $ 400 million (75% of the amount – Singaporean investments). The plans include the formation of the dairy herd of 20 thousand heads, as well as to increase the area of cultivated land up to 106 hectares. It is assumed that the second phase of the project investment will be increased up to U.S. $800 million (an increase of dairy herds – up to 50 thousand heads, expansion of arable land – up to 130 thousand hectares).

Ms. Lim Kheng Hua said that Singaporean companies have shown interest in the field of urban development and spatial planning. Key areas for Singapore investors are the construction of ports, airports, logistics centers. Among potential areas for projects are large Russian cities with a population of over 1 million people, for example, Tyumen, Novosibirsk and St. Petersburg.

Ms. Lim Kheng Hua said that in the summer of 2014 it is planned to make a trip of the representatives of “International Enterprises Singapore” and Singaporean investors to the Far East, during which there will be meetings with the heads of Far East Federal District as well as representatives of large companies that have investment projects that are ready for implementation.

Igor Slyunyaev assured that the Russian Ministry of Regional Development and National Investment Agency “Invest in Russia” are ready to render any assistance in providing Singaporean investors with information about the investment potential of Russia and its regions, support programs for investors as well as about priority investment sectors of the Russian economy and the specifics of investing in each region and sector.