2019 SPIEF: what ‘Russian Davos’ brings to Tatarstan
The Republic of Tatarstan will get an LNG plant, a representative office in Germany and contracts worth 75 billion rubles
The Cabinet of Ministers of Tatarstan has summed up the results of 2019 SPIEF, where a record number of deals was concluded — 650 contracts worth 3,1 trillion rubles. The Republic of Tatarstan has signed dozens of agreements totalling more than 75 billion rubles. Besides, the Tatarstan authorities agreed to open its representative offices in Germany and Japan. The heads of the ministry of industry and trade of Tatarstan, Tatarstan Investment Development Agency and the deputy minister of economy of the Republic of Tatarstan shared the results of the “Russian Davos” for Tatarstan with journalists. The correspondent of Realnoe Vremya also attended the meeting.
In pursuit of records
The St. Petersburg International Economic Forum, as expected, has broken its own records. In 2019, the congress and exhibition complex gathered more than 19,000 people, including more than 3,500 foreigners from 145 countries. On these days, the participants concluded 650 deals worth 3,1 trillion rubles. More than 170 events of various formats were united by the motto: “Forming the agenda of sustainable development”.
“This forum is the most useful event in Russia from the point of view of investors. The highest concentration of Russian and foreign investors,” Head of Tatarstan Investment Development Agency Talia Minullina described the “Russian Davos” during a briefing in the cabinet of ministers.
Indeed, one of the most representative delegations at 2019 SPIEF was from Tatarstan — President Rustam Minnikhanov, members of the government, leaders of large companies, journalists. At the SPIEF sites, the republic signed 31 agreements totalling more than 75 billion rubles and signed 19 documents on the development of industrial, trade and economic relations. There were also meetings with heads of Russian regions and foreign states, international corporations and diplomats.
One of the most important deals was the agreement with Haier on the construction of a “smart” plant for the production of household appliances.
Getting closer to the Germans, Japanese and Turkmen
Deputy Prime Minister — Minister of Industry and Trade Albert Karimov was the first to report to journalists about his work in the Northern capital. He told about his meeting with Egyptian Minister of Industry and Trade Amr Nassar. By the way, Tatarstan's foreign trade turnover with the Arab Republic in 2018 amounted to more than $20 million. The meeting with the official from Egypt resulted in an agreement on the visit of the business delegation to the Arab Republic. Thus, in October 2019, the international industrial and technological exhibition-forum Big Industrial Week is going to be held in Cairo for the first time. And Kazan is interested in participating in this event.
The minister of industry and trade of Tatarstan also met with Deputy Prime Minister and Minister of Foreign Affairs of Turkmenistan Rashid Meredov. The foreign trade turnover with the Central Asian Republic last year amounted to 23,9 million dollars (export — 10,2 million dollars, import — 13,7 million dollars).
As for other relations with foreign countries, Karimov told about the results of the meeting of Rustam Minnikhanov with Prime Minister of Saxony Michael Kretschmer. According to the results of agreements with the federal land of West Germany, a Tatarstan representation office in Saxony is going to open in Leipzig.
“We have reached the final stage of the agreement. The work is underway at the ministry of foreign affairs of the Russian Federation and the ministry of industry and trade. I think in a month or two we will go through all the procedures and open a representative office,” said the minister, answering the question of the correspondent of Realnoe Vremya on the timing of opening a representative office in Germany. At the same time, he refused to give the name of the person who would head the diplomatic department. At the same time, according to him, the representative of the republic had begun to work in Japan.”
Besides, Minnikhanov met with three Russian governors with whom he signed agreements — with Radiy Khabirov (acting head of Bashkortostan), Anatoly Artamonov (Kaluga Oblast) and Alexander Uss (Krasnoyarsk Krai). The partnerships with these regions will be developed in a number of areas — economy, culture, education, etc.
Karimov himself held a meeting with First Deputy Prime Minister of Penza Oblast Andrey Luzgin. The turnover between the regions is 4,2 billion rubles a year. It is expected a business mission of business circles of Penza in Tatarstan.
LNG in Tatarstan
Negotiations were held with the heads of major companies and departments — with Sberbank, Rosgeology, Ozon (Internet Resheniya), Yandex.Market, Magnit, MTS, Ericsson, TVEL (owned by Rosatom), Agency for Development of Professional Communities and Workers Young Professionals (WorldSkills Russia), Sibur holding, Gazprom. Among foreign corporations — Hyundai Corp., Schneider Electric, Yokogawa Electric, RockWool, Siemens, Google, CNCEC, Saint-Gobain Rus. Realnoe Vremya wrote about the transactions of TAIF with foreigners in the special material.
Separately, Karimov focused on the construction of a plant for liquefying natural gas in Chistopol and Tyulyachi, on what Minnikhanov agreed with Head of Gazprom Aleksey Miller.
“The question remains: what to build earlier — plant or infrastructure,” the minister emphasized. “This is a step-by-step process. Concerning the LNG, we are being at the starting point. The investor's determination is crucial here. Both projects are viable and have their own niches. We are planning to move to achieve results. Now the company can invest, and Tatarstan is preparing a programme aimed at expanding the vehicles operating on LNG.”
In addition, Gazprom is going to expand the network of filling stations in Tatarstan.
“We have created the best environment for entrepreneurs”
Talia Minullina, in her turn, drew attention to the national rating of the regions on the investment climate. In this list, in 2019, Tatarstan has been rated the second, conceding to Moscow 0,3 points (283,3 and 283,6 respectively) and considerably outstripping Tyumen Oblast. The head of the Investment Development Agency noted that over the past 5 years the republic has always been in the top three. From 2015 to 2017, it was rated the first. Over the year, Tatarstan has risen one position up.
“It shows our stability. Tatarstan is always the leader in investment attractiveness. This rating is convenient for investors,” Minullina said. “We have to be in touch with investors all the time. They should understand that in Tatarstan we have created the best environment for entrepreneurs in the Russian Federation.”
The rating was estimated by 44 points and in 4 areas: regulatory environment, institutions for business, infrastructure and resources, support for small businesses. The most successful indicator was the direction associated with the efficiency of organizational mechanisms for business support and business security.
Deputy Minister of Economy Indira Kireeva added that in order to develop investment attractiveness in each district and city of Tatarstan, it has been adopted its own action plan to improve the business climate. Much attention was paid to feedback and adjustment of work on its basis.
To increase the investment attractiveness of the regions, 12 target models have been developed. In 2018, Tatarstan fulfilled these models by 96,2%, and 9 models were fulfilled at 100%: “Presence and quality of regional legislation on mechanisms for protecting investors and supporting investment activities”, “Effectiveness of feedback and direct communication channels of investors and the leadership of the subject of the Russian Federation”, “Effectiveness of the specialized organization to attract investment and work with investors”, “Quality of the investment portal of the subject of the Russian Federation”.