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Sakhalin Government Seeks $2.1B in South Korean Investments

Sakhalin Government Seeks $2.1B in South Korean Investments
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YUZHNO-SAKHALINSK. April 15. VOSTOK-MEDIA – More than 700 Russian and Korean politicians, lawmakers and businessmen gathered in Seoul Wednesday to take part in the Russia Sakhalin Government Investment Conference. The Russian delegation was led by Sakhalin Governor Aleksandr Khoroshavin.


“We attach a particular importance to the cooperation with South Korea because Korea is Russia’s close neighbor and is one of the most rapidly growing economies worldwide,” the Governor said addressing the investment conference. “We are able and should move our cooperation further to a higher level. Therefore, we selected the most interesting and promising projects covering all sectors of economy and invite the Korean government and business community to participate in these projects.”


Aleksandr Khoroshavin said that Sakhalin Oblast is the fast developing region and provides great opportunities for business. The Republic of Korean plays a major role in the Sakhalin’s foreign trade. In 2008, South Korea imported over 5.5 million tons of crude and 88,000 tons of fish and seafood produced in the region. In its turn, Sakhalin buys Korean machinery and equipment, ferrous metals, ships, boats and polymeric materials. All this clearly indicates the complimentary nature of the two economies and the interest of Russian and Korean business community to each other.


Around 140 companies have opened and successfully operated their subsidiaries in Sakhalin. Many of these companies take an active part in such international oil and gas projects as Sakhalin-1 and Sakhalin-2. In addition, Korea produces tankers for export of crude produced in Sakhalin; the bilateral cooperation in the coal sector, tourism, trade, and food market is making a good headway.


Among the promising areas of the mutually beneficial cooperation outlined by the Governor was the construction of a fuel-and-energy complex on the west coast of Sakhalin island. The project provides for the construction of a power plant with a total electric power of 330 MW, transport infrastructure, sea ports and terminals. Other investment opportunities discussed at the conference were projects in the sphere of construction, tourism and entrepreneurship, including facilities for processing aquatic biological resources, waste treatment facilities, and construction of shopping mall in Yuzhno-Sakhalinsk. Altogether, the Sakhalin delegation presented 15 investment projects in the hope of attracting $2.1 billion from Korean investments.


 “I’m proud that Sakhalin has the largest Korean community in Russia and I highly appreciate its contribution to the development of our region,” Khoroshavin said. “I believe that it is at the crossroads of such multifaceted and unique cultures as Russia and Korea that a great business success can be achieved. Therefore, strengthening of cultural and educational ties is of particular importance for us,” he said.


“We are proposing to focus on to the establishment of ties between universities and research centers of Sakhalin and Korea. We need to expand academic exchange programs and other educational initiatives.”


Closing his speech, Aleksandr Khoroshavin stated that the Sakhalin Government Investment Conference should advance the bilateral cooperation, both economic and cultural, to a new level.

 
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