Foreign investments in Russia: Review of the Russian Media from 01.01 to 05.02, 2016

Foreign investments in Russia: Review of the Russian Media from 01.01 to 05.02, 2016
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Last week, foreign investments in the Russian Far East became the most discussed topic in the domestic media.

“Vedomosti” reported on February 1st that the “Rosneft” Group of Companies and American General Electric, within the framework of a long-term cooperation program announced their intention to construct two plants in the Far East. The new enterprises will provide the Zvezda Shipbuilding Complex with ship-steerable thrusters and marine electro-technical equipment. They also plan to launch their products on the world market. “Implementation of the program, co-signed with one of the world’s leaders in technology, means that our cooperation is moving up to a new level – industrial cooperation”, “” said on February 2nd, following the “Rosneft” head, Igor Sechin’s, signing of the document with the American partners.

On February 2nd, “Kamchatka-Inform” reported a meeting between the Korean “CDS-Kamchatka” company president, Yang Yeon Ho, and the government of the Kamchatka region. The South Korean businessman declared his intention to take part in regional tenders for the construction and renovation of medical and social facilities. This involves Kamchatka’s “Zhemchuzhina” health center and the “Voskhod” children’s sanitary camp.

The Sakhalin Media agency reported a meeting between the Sakhalin regional governor, Oleg Kozhemyako, and Japan’s general consul in South Sakhalin, Akira Imamura. The parties discussed the Japanese companies’ participation in Sakhalin’s tourist projects.

In particular, the investors from Japan have proposed projects for hotels, restaurants and other construction within the framework of the “Gorny Vozdukh” sport and tourist complex modernization.

“By the end of the month we will have set up working groups specializing in cooperation in the fields of road building, disposal of waste and water supply. We have a desire to work with you on balneology and well-equipping with composite materials, which are rust-resistant in an acidic environment. We invite the Japanese companies to participate in the realization of the “Rybnaya Byrzha” project as well”, said the governor during the course of the meeting.

“We are pinning great hopes on our participation in your projects. We could begin with infrastructure”, responded Akira Amamura.


Austria has promised to lobby for the “Northern Stream-2” project

On February 3rd, “Kommersant” told its readers that the “Northern Stream-2” project for gas pipeline construction from Russia to Germany gained support from Austria.

According to the paper, energy was one of the key subjects under discussion in a closed session of the negotiations between Reinhold Mitterlehner, who came to Russia, and the Prime Minister, Dmitry Medvedev. The Austrian guest has emphasized that his government would make every effort to promote the “South Stream-2” project’s realization. The existing problems are of a “legal and political nature”.

To remind you, the Austrian OMV company, with the government as the largest shareholder, is taking part in the “South Stream” project, with 10% of the shares.


Iranian investors are coming to Crimea

The “Federal Press” website reported on February 3rd on the meeting that took place in Simferopol between the leadership of a multidisciplinary Iranian holding and the deputy president of the Council of Ministers of the Crimean Republic, the permanent representative of the CR to the president of Russia, Georgy Muradov. The delegates discussed investment prospects in the area of oil production and petroleum refining, as well as construction material production. “Today the guests have voiced a series of interesting proposals, which will be discussed at meetings with the relevant ministries in Crimea”, commented Mr Muradov.


IKEA expands its trade areas

“Kommersant” reported on February 3rd that in Chelyabinsk the 25-hectare construction site for the MEGA trade center with IKEA has been determined as being in the Iva-1 micro-district in Agatova Street. The construction work on the building site is to be completed by 2020.

On February 4th, the RBC agency announced that the “IKEA Mos” company will double its trade areas in Adygeya. Within the framework of the project, worth 9 bln roubles, the company will construct a new building of 111 thousand sq.m. for rent, as well as other trade objects. The construction is planned to be completed by 2018. “The trade center’s expansion will allow us not only to significantly increase the number of shops, but also to create space for leisure, entertainment and commercial usage”, commented an “IKEA Mos” official. To remind you, “IKEA Mos” belongs to the IKEA Group of Companies and owns the MEGA trade centers in Russia.

Foreign investments in Russia: Review of the Russian Media from 01.01 to 05.02, 2016

Investment project in the Central Federal District of Russia

As RIA Novosti said on February 2nd, Egyptian investors have received an offer to finance a project for a tramway system reconstruction mand construction of new lines in Moscow. It was initiated by the Board of the Moscow Transport Hub. A modernized tram will differ in its higher speed and will be more comfortable, in particular for passengers with baby carriages, for invalids and for old people.

“Ves Yelets” website reported on February 1st that the tobacco factory “JT Yelets” has invested more than 300 mln roubles in the construction, in the Lipetsk region, of a cogeneration plant which will generate energy and heat from natural gas. The USP of the new, ecologically friendly thermo-power station lies in the fact that the heat generated goes not into the air, but is used for production purposes.

“Such plants are being successfully exploited in some JTI enterprises in Europe, and now the experience of workers from the European plants is being exploited in Yelets”, commented the “JTI Yelets” representative, Alexander Bogatikov, who added that a cogeneration plant is a very rare phenomenon in Russia. The “JTI Yelets” plant is a part of the JTI company, which belongs to the Japan Tobacco Group of companies.


Italian Domina network opens its second hotel in Russia for 1.5 bln roubles

“RIA Real Estate” announced, on February 5th, the opening of the Domina network’s second Russian hotel, in Novosibirsk. The investment in the construction of the 17 thousand square meter object totaled about 1.5 bln roubles. The 11-storey building of the Domina Hotel Novosibirsk was executed by the Italian architectural office with the participation of Russian experts. It’s assumed that the investor will recoup their costs in 10 years.

To remind you, at present there are 4 more Domina network hotels under construction in Russia. In particular, construction works in Kaliningrad are planned to be completed by the end of 2017. Construction of the hotel complex, of 160 rooms and 50 apartments, has started in Tyumen, whereas in Lipetsk the zero phase has been completed on the construction site. Besides this, Domina is planning to build one more 137-room hotel in Tomsk.

This review was prepared by Tatyana KANUNNIKOVA