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Sakhalin Region Development Corporation Becomes an Investor of East Mining Company

Sakhalin Region Development Corporation, JSC (of which Sakhalin Region is a shareholder) will implement major investment projects in the region, Governor Oleg Kozhemyako said at the meeting of the Regional Duma.

 According to him, the main tasks of the corporation consist in efficient investment of state funds and increase of investment attractiveness of the region in the "non-oil and gas sphere".

"The financial resources will be consolidated within the framework of one professional organization, which has no other tasks, except for the efficient investment of state funds and creation of new enterprises,” - he stressed. As he said, the most part of corporation operations will be built based on a principle of return of money resources that will enable to invest significant funds in the economy of the region for many long years". He recalled that next year the regional budget revenues were expected to be reduced as a result of the dropped global prices on oil.

"We turned to be in a difficult situation. This is a serious lesson. No one can rely solely on revenues from hydrocarbon production. It is necessary to develop other branches of the economy. It is important to increase the tax return from the enterprises that do not belong to the oil and gas sector", - O. Kozhemyako said. The corporation will already next year start a number of large investment projects. The governor named some of them. This is a project for the construction of two mini-plants for the production of compressed gas and a network of automobile gas stations; creation of a vertically integrated agro-industrial holding company with a closed cycle of production and processing of commercial pork; creation of a wholesale-logistics cluster in the port of Korsakov as a part of the project for the development of a fish market; development of a coal production and transshipment complex (the project is being implemented by East Mining Company).

In cooperation with Energy Systems of Russia, RJSC, a large-scale modernization of the electric grid economy of the region will be carried out. As well as creation of a complex of wood processing plants and a plant for processing of solid household waste. As part of the import substitution, Vaida LLC will build a lime flour plant and a cement plant. The further work of the corporation in cooperation with the Far East Development Fund will be connected with the search for new projects with an investment volume of at least 500 million rubles "with all questions worked out on a turn-key basis." Earlier it was reported that through the corporation, inter alia, priority investment projects implemented on the basis of public-private partnership (PPP) would be considered. The corporation will become an owner of the shares of companies participating in these PPPs. 

Source: http://www.eastrussia.ru/news/korporatsiya-razvitiya-sakhalinskoy-oblasti-vozmet-na-sebya-krupnye-regionalnye-investproekty-/eastrussia.ru