Investment Climate
Kamchatsky Krai is an unique place and one of the most amazing and beautiful corners of our planet, which despite its young age, develops with active economic development pace.
Kamchatsky Krai is the territory with huge investment potential, based on rich natural resources: aquatic biological resources, mineral resources of the Peninsula and shelf, amazing natural complex.
Kamchatsky Krai is a unique tourist and recreation area. Thermal and mineral springs, volcanoes and glaciers, famous Valley of geysers diverse, pristine flora and fauna, untouched by civilization, creates excellent opportunities of the development for all types of tourism.
According to experts, due to its geographical position, Kamchatka able to become a logistic hub in the world transport system in the areas of Europe-America, Europe- South-Eastern Asia, Southeast Asia and America.
Kamchatsky Krai prepares and implements projects for the development of strategic directions: fisheries sector, extractive industries, tourism and sports, construction, infrastructure (energy, transport, communication).
Perspective directions of investments:
- Fishery;
- Mineral complex;
- Energy;
- Tourism;
- Shiprepair and shipbuilding;
- Agriculture.
Fishery
Fishing industry is traditionally dominant in the economics of Kamchatskiy krai, it determines the directions and dynamics of the development of many others sectors of regional economics.
Fishery is the urban-and-suburban-forming industry of social importance for Kamchatka and its residents.
Manufacturing facilities of regional fishery are represented by fish-harvesting, fish-processing, and transport vessels, research ships, and also auxiliary fleet (total – 1700 units), 190 fish-processing plants and work-shops, refrigerating facilities and plants for reproduction of water biological resources.
Plant total daily capacity: 12 thousand tons of frozen production, 1 million and 200 thousand standard cans. Volumetric capability of container for keeping frozen production, including refrigerating facilities of shore-based plants is 120 thousand tons. Annually the enterprises of Kamchatskiy krai output in average more than 700 thousand tons of food fish production, including canned fish. Over 2008-2011 years output of food fish production increased from 673 till 826 thousand tonns, average per capita of fish production use in year in Kamchatskiy krai increased from 27 kg till 34 kg per year.
Share of fishery of Kamchatskiy krai in a total volume of industrial production of the subject is more 50%. Employees who engaged in fishery are about 17 thousand people.
During the last years, Kamchatskiy krai has taken the first place in harvest of water biological resources and output of products among all regions of the Far East.
The volume of harvest (catch) worked out 24% from the total harvest (catch) of water biological resources in the Russian Federation and 36% from the total harvest (catch) in the Far-Eastern Federal District.
The most capacious target species in terms of commercial harvest (catch) quotas and real catch are such species as walleye pollack, cod, flat fish, greenling, navaga, herring, Pacific salmons, and squid.
Substantial part of fish products manufactured by regional fish companies are exported. Herewith the main export items are frozen fish, frozen shell fishes, and mollusks. The main exporters of Kamchatskiy krai production are: the Republic of Korea, China, Japan, and the USA. Annually Kamchatka exports from 235 to 280 thousand tons of fish products.
Kamchatskiy krai caters fish products into home market. It delivers fishery products into such federal cities as Moscow and Saint-Peterburg, the Primorskiy Krai, the Khabarovskiy Krai, and the Krasnoyarskiy Krai, the Sakhalin Oblast, the Novosibirskaya Oblast, the Moscow Oblast, the Magadan Oblast, the Nizhegorodskaya Oblast, and the Samarskaya Oblast.
In 2011, it was the first time in the history of country when the fish production of Far Eastern producers was sent to the central regions on the Northern sea route. Three vessels with fish production of Kamchatka producers at the board delivered about 27 thousand tons of Pacific salmon to Saint-Petersburg. The transportation on the Northern sea route is one of the viable alternatives, which make possible to manage with the expected increase of transportations between Europe and Asia. The role of Kamchatka in the development of the Northern sea route is evident.
Fish industry is still being an object of a high investment attraction for investors. The main part of the projects are big medium-term investment projects. Mainly, it is projects on introduction of cutting-edge technology for deep fish and sea products processing.
The perspective investment projects in bioresources complex:
- Construction and modernization of fish canning plant in the JSC “Ozernovskiy RKZ № 55” in the Ozernovskiy village of Ust-Bolsheretskiy district of Kamchatskiy krai;
- Modernization of high-technological fish processing complex with capacity of 170 tons per day on the Khailyulya river of Karaginskiy district of Kamchatskiy krai (with perspectiive construction of plants for deep processing, fish processing waste and production of dried and frozen laminaria);
- Reconstruction and modernization of fish processing seasonal base on the Oblukovina river of Sobolevskiy district of Kamchatskiy krai;
- Construction of high - technological factory with capacity of 280 tons of finished products per day in the Ivashka village of Karaginskiy region of Kamchatskiy krai.
Mineral resources and raw material complex
Mineral raw material base of Kamchatskiy krai is characterized by the presence of the wide range of mineral deposits – energy feedstock, raw materials for metal mining and chemical industries, construction materials and ground waters.
Energy feedstock of Kamchatka is presented by the deposits and prognostic resources of gas, mineral and brown coal, geothermal waters and stem-and-water thermo fields, and prognostic oil fields. Hydrocarbon potential of the firm ground is estimated at 1,4 billion tons in the oil equivalent including the extracted 150 billion tons of oil and 800 billion m3 of gas. 50% of them could be viable for commercial exploitation.
Explored and preliminary estimated reserves of natural gas are localized in one middle and three small gas fields of Kolpakovskiy petroleum district of Okhotsko-Western-Kamchatka petroleum region and totally, on the date 01.01.2012, comprises 22,46 billion cubic meter. According to the data of All-Russian Research Gas and Oil Exploration Institute the resources of natural gas and liquid hydrocarbons of Kamchatskiy krai, without regard to shelf areas comprise correspondingly 719 billion m3 and 924 million tons.
The construction of the gas pipeline to Petropavlovsk-Kamchatskiy of the total length 392 km has been finished. The prognostic resources of natural gas of Kolpakovskiy petroleum district for various 3 assessments exceed 50 billion m3.
The explored and preliminary estimated reserves of coals in Kamchatskiy krai are equal to 275,164 million tons, the prognostic resources exceed 7,01 billion tons. 7 deposits and more than 10 coal manifestations were investigated with various details.
16 thermal and heat energy water fields, 3 mineral water deposits are explored in Kamchatskiy krai. 16 of them are exploited.
At present in Kamchatskiy krai there were discovered and studied in various extent 10 deposits and 22 perspective sites of gold with the explored and preliminary estimated reserves of the metal equaled about 206,68 tons and prognostic resources more than 1000 tons.
The reserves of associated silver are registered in the total volume about 630,2 tons, the prognostic resources exceed 6,7 thousand tons. The reserves of placer gold are registered in 52 small deposits in the volume about 3,66 tons.
The remaining reserves of placer platinum are about 642,3 kg. Besides, there were investigated the ore occurrence of bedding platinum with the prognostic resources equaled 30 tons.
Kamchatka is one of the biggest nickel-bearing provinces. For various estimations it takes the 3d–4th place in the world among the same kinds of sulphide deposits in the measure of mineralization.
The balance reserves of Shanuch deposit equal about 38,36 thousand tons of nickel and 5,51 thousand tons of copper and 1047 tons of cobalt.
The prognostic resources of nickel, copper and cobalt comprise about 925,0 thousand tons, 905,0 thousand tons, and 25,2 thousand tons.
Kamchatskiy krai is provided with all kinds of construction materials (except raw materials for cement production): sand-gravel aggregate, mortar sand, volcanic tuff, building stone, various brick aggregates, expanded blast furnace slag, pumice, brick clays, mineral paints, perlites, zeolites.
The Ilyinskoye pumice deposit is the biggest unique one in the Far-East, its reserves according to the industrial categories are equaled 191 million m3 and it is a multiproduct of local and export importance. The perlite of Nachikinskoye deposit is also the export feedstock for the production of unique heat insulating non-combustible material with the volume of the bulk weight equaled 50-60 kg/m3.
For the production of construction materials on the territory of Kamchatskiy krai there were prospected more than 78 deposits.
Mineral raw material base of Kamchatka is able to provide a long-term production of gravel, chips, mortar sand, clay brick, building stone, various brick aggregates and active mineral additives.
The production of construction materials is oriented towards the deposits compactly located in the target consumer units inclining the prognostic mining areas and other territories practicing or assuming the construction of civil and industrial sites.
One of the widely used mineral in Kamchatskiy krai is ground waters, according to its chemical content it can be divided into: cold fresh waters, thermal (heat-and-power) and mineral waters. Fresh ground waters are used in water supply economy, heat-and power engineering, thermal and mineral waters – for generation of electricity, heat supply for separate populated area, in balneological and recreational purposes. The recent tendency in the use of the cold fresh waters of Kamchatka is related to the export of bottled water into the regions with water shortage. Therefore the project of the production of clear potable water from the Russkaya Bay ground fresh water deposit deserves particular attention.
At present on the base of Aginskoye and Asachinskoye gold-ore deposits in Kamchatskiy krai function two ore mining and prosessing enterprise of the same name, which mine about 3 tons of gold per year. According to the Stragedy of mineral and raw materials resources minig and processing development in Kamchatskiy krai till 2025 year, by 2018 it is planned to introduce 6 deposits in experimental-industrial and industrial exploitation, such as: Zolotoe (2012), Ametistovoye (2014), Ozernovskoye (2014), Baranevskoye (2015), Rodnikovoe (2015), Kumroch (2017). The production of ore gold will reach 18 tons per year.
Extraction of copper-nickel ores in the mine Shanuch implemented in terms of test production. Since 2014 it is expected to switch the mode to industrial development of the deposit. In the border of Kvintum-Kuvalogorodskoi nickel-bearing ground by 2017-2018 is planned to end geological prospecting works and approbation of the nickel’s reserve.
In 2011 JSC “Gasprom” began exploratory works for the hydrocarbon raw material on the Kamchatka – West shelf. The potential of the shelf deposits is preliminary estimated in amount of 800 million tons of hydrocarbon according to the oil equivalent.
The perspective investment projects in mineral resources and raw material complex:
- Natural Drinking Silver Water of Kamchatka in the "Russkaya Bay";
- Creation of transport and energy infrastructure for the formation of long-term mineral and raw material complex in Kamchatskiy krai;
- Creation of production of nanodispersed silica dioxide based on natural hydrothermal solutions;
- Industrial development of Yagodninskiy deposit natural zeolites;
- Commercial development of the Krutogorovskoye deposit of mineral coal;
- Production of heat insulating materials using local raw (perlite);
- Construction of a timber processing enterprise to produce fire-wood pellets;
- Organization of complex processing of raw wood at LLC “Kamchatskiy Timber Industry”.
Tourism
The territory of Kamchatskiy krai is one of the richest territories of the world in its natural and recreational resources. Thermal and mineral springs, volcanoes and glaciers, the eminent Valley of Geysers recognized as one of Seven Miracles of Russia in 2008, diverse flora and fauna mainly unaffected by civilization enable the development of mass tourism.
Thanks to the climatic conditions and topographic features the most popular sports and tourism directions in Kamchatskiy krai such as mountaineering, ecological tourism, mountain skiing, snowmobiling, snowboarding, trekking, volcano ascending, rafting, kayaking, heli-skiing, biathlon, ethnographic tourism, dogsledding, sea travelling, diving, hunting, and fishing won the popularity in Kamchatskiy krai.
The pride of Kamchatka is its volcanoes. There are more than 1000 of them in the peninsula; 30 of them are active.
In Kamchatskiy krai there was founded one of the most developed in Russia systems of protected territories (PAs) of various types (federal, regional, local).
The total area of Kamchatka’s protected territories is 5,2 million ha, (11,3% from the territory of Kamchatskiy krai), besides, 2,4 million ha of Kamchatskiy krai’s lands are occupied with the water-marsh grounds which are under the protection of the Ramsar Convention.
In the Russian Federation Kamchatka takes:
- the 1st place in the total area of reserves;
- the 2nd place in the territory of nature parks (after Republic Sakha (Yakutiya).
The total number of PAs in Kamchatskiy krai is equal to 124 sites. Among them are:
- 6 federal PAs (3 reserves, 1 refuge and 2 therapeutic areas (resort Paratunka and Malkinskoye mineral water deposit);
- 116 regional PAs (4 nature parks, 15 refuges, 97 nature monuments);
- 2 local PAs (1 nature landscape park, 1 refuges).
Six PAs of Kamchatka including four regional nature parks (“Nalychevo”, “Bystrinskiy”, “Yuzhno-Kamchatskiy”, and “Klyuchevskoy”) are counted in UNESCO Nature World Heritage List in the united nomination of “Volcanoes of Kamchatka”.
One of the tourism trends is the development of winter sports and tourism – ski touring, ski mountaineering, snowboarding, and biathlon. Climatic conditions and mountain scenery allow to develop this trend practically all-the-year-round.
The concept of development of mountaineering tourism and sports in Kamchatskiy krai has been worked out, providing the construction of all-year-round international ski resort on the base of the following sites: Moroznaya and Sedlo Hills; Avachinskiy volcano Zone; Topolovy Mountain Ridge; Petrovskaya Hill. The construction of modern hotel complexes, trails and lifts, as well as the following infrastructure is provided at each site.
Also, the project documentation on the construction of Park for winter sports at the territory of Kamchatskiy krai is being prepared, which includes hotels of tourist and premium class, an indoor ice arena, biathlon complex, residential complex “Olympic Village” and other facilities.
For the development of tourism it is necessary to establish the relevant infrastructure including the mechanisms of state-and-private partnership.
The perspective investment projects in tourism:
- Establishment of "Tourist recreational cluster "Paratunka";
- Construction of hotel complex "Parus";
- Arrangement of recreation zone of Malkinskoye mineral water deposit;
- Reconstruction and modernization of the Sanatorium-Resort Complex “Nachikinskiy”;
- Establishment of Child and Youth Health Center (CYHC) “Alye parusa”;
- Construction of all – year - round international ski resort on the basis of the following areas: Moroznaya and Sedlo Hills; Avachinskiy volcano Zone; Topolovy Mountain Ridge; Petrovskaya Hill;
- Sports and ecological complex "Vorobinoye Svetloye Lake";
- Construction and development of balneological center "Zelenovskiye lakes".
Residential development
In 2011 the use of housing was exceeded 19 percent to the level of 2010 year and formed 68,82 thousand square meters (2010 year – 57,76 thousand square meters and 2009 year – 63,35 thousand square meters). 42 domestic buildings for 1196 flats were built in Kamchatskiy krai in 2011 (2010 year – 783 flats), the population of Kamchatskiy krai built 17 houses for 18 flats (2010 - 11 flats).
One of the main mechanism of attracting investments in residential housing is the activities of a long-term state programm "Stimulate of residential housing in Kamchatskiy krai in 2011-2015", federal programm "Increase stability of dwelling houses, main objects and survival system in seismological districts of the Russian Federation in 2009-2014".
Among new big social infrastructure projects, realization of which will be in 2011-2013 years:
- Sports and fitness complex with swimming pool in Yelizovo town;
- Sports and fitness complex with ice arena in Petropavlovsk-Kamchatskiy city;
- Sports and fitness complex in Milkovo village;
- Kamchatka theatre of puppets (dolls);
- Registration of acts of civil status Palace;
- Kinder gardens in Petropavlovsk-Kamchatskiy city, Yelizovo and Vilyuchinsk towns, Kozyrevsk village of Ust-Kamchatskiy municipal district, school complex (school - kindergarden- boarding school) in Ust-Khairyuzovo village;
- School in Ozernovskiy village;
- Kamchatka state hospital.
The main aspects of the development of the residential housing in Kamchatskiy krai are:
- The presence of production capacity reserves.
- Sufficient quantity of territories for residential development within the precinct of the population aggregate.
- The presence of raw materials base of inert building materials.
- Keen demand for earthquake proof and comfort housing.
- Priority national project «Affordable and comfort housing for citizens of Russia», the main directions of which are directed to the satisfaction of needs for population in affordable and comfort housing.
Agriculture
In rural areas of the Kamchatsky krai at the beginning of 2014 lived 72.3 thousand people or 22.6 % of the total population of Kamchatsky krai.
Agricultural production of the Kamchatsky krai is functioning in a complex of natural and economic conditions, due to the peculiarities of the climate, geographic location, remoteness from other regions of Russia. Agriculture in the conditions of the Kamchatka region – strategic sector aimed at the needs of the population in agricultural products of high quality: crop (potatoes and vegetables) and livestock (milk, egg, meat). Priority objective in the field of animal husbandry - the provision of childcare facilities and institutions of social sphere of the diet products.
Agriculture of Kamchatsky Krai is the main factor of food security in the region, in view of the fact that today about 80% of food products of Kamchatsky Krai are imported goods.
Agricultural production in the region engaged in 18 agricultural enterprises of different ownership forms, and 78 enterprises of food and processing industry, 408 farms, 6.9 thousand private farms of citizens.
Industrial structure of agriculture was formed under the influence of climatic factors, and includes the following industry specialization of agricultural production:
- Crop (mainly vegetable growing);
- Dairy farming;
- Poultry (egg production);
- Pig farming;
- Northern reindeer breeding.
According to his natural capacity, technical capabilities, socio-economic and industrial infrastructure agriculture of Kamchatsky krai cannot compete on the world market. The exception here can be environmentally friendly deer meat and products of its processing, which in great demand on the foreign market. Comparing other agriculture products availability (price) with similar products from other regions of Russia, it should be noted that the cost of production, produced in Kamchatsky krai, will be slightly higher, and this is primarily due to the geographical position of the region, a complex transport logistics, adverse climate.
Livestock is a traditional activity of the rural population, and existing facilities are now almost form settlements. Each year the share of livestock production accounts for more than a quarter of gross agricultural output produces. Every year the share of livestock production contributes more than a quarter of gross agricultural output.
Industrial structure of agriculture includes dairy, meat, poultry, potato and vegetable industry. Industry of agricultural production consists of five main food markets, including eggs market, potatoes, and vegetables can fully satisfy the needs of Kamchatsky krai with their own products. Markets for dairy and meat products, due to technological reasons, not provided with their own products, dairy products - by 27 %, meat by 10 %.
The volume of the market of meat products is 23.2 tons, including local production - 2.5 tons.
The main producer of poultry products in the Kamchatka territory is a municipal agricultural unitary enterprise "Pionerskoe”. The company accounts for 92.5 % of the overall egg production in the region.
Major industry projects, which are included in the portfolio of the Corporation:
- Agro-industrial Park "Zelenovskie ozerki" (3.5 billion rubles);
- "The restoration of the greenhouses in p. Termalny with the use thermal energy of Verxne-Paratunsky field of thermal waters", initiator: JSC “Pauzhetka Agroterm" (658 million rubles);
- "Construction of a greenhouse complex with the use of hot thermal waters Paratunka field", initiator: JSC "Termalnoe" (1.4 billion).
Reindeer herding
Reindeer herding is the main traditional sector of the indigenous small-numbered peoples of Kamchatka. Over the centuries it is the basis on the formation of the economic order and the whole lifestyle of the "Northern people", creates the sphere of application of historical skills of these people, provides conditions for the preservation of their unique culture and is the main and almost the only source of livelihood of these people. This branch of agriculture has a significant influence on the formation of food supply for the population of the Kamchatka region.
Reindeer herding is particularly specificity which is conducted on the vast territory in extreme climatic conditions. Currently it partially meets the needs of residents in the meat and skins for the needs of the indigenous population, provides partial employment. Features of the climate, the remoteness of supply bases, limited availability and dispersion of farms on a large area, greatly increased costs for fuel and energy resources, transport, feed to a much greater extent than in Russia as a whole, negatively affected the economy of reindeer complex. Despite the stabilization of the economic situation in the region, agricultural enterprises continue to be unprofitable.
The income of agricultural producers makes it difficult to maintain and update the material-technical base of farms, in a timely manner to pay suppliers, banks for loans and workers’ wages. The lack of adequate conditions of life and labor, low wages (below subsistence level) are caused by the outflow of personnel from the industry. . Due to the insecurity of life and lack of livelihood women leave the teams, which leads to even worse living conditions. In this case, the traditional way of life of excluded children herders violated continuity and knowledge transfer.
The primary task of reindeer herding industry is:
- Improving the socio-economic conditions of the indigenous population of the region;
- Improving the economic conditions for the development of agricultural production;
- Establishment of an effective mechanism of state support for the industry;
- Preservation and enhancement reindeer.
Ship repair and shipbuilding complex
Shipbuilding objectively applies to industries with large scientific-technical and production potential in order to influence on the development of technology in adjacent industries. This is a significant reason that the world's leading countries, including the leaders of the Asia-Pacific region as the Republic of Korea and China pay special attention to the development of marine and shipbuilding technology in the provision of active marine activities, providing significant support to the national shipbuilding companies.
Until the early 90-ies of the last century ship repair industry of Kamchatka was sufficiently developed and provided repairs transport and the fishing fleet stationed on the Peninsula to a great extent. Ship repair companies served, in addition to the fishing fleet of Kamchatka, the court of Sakhalin region, Primorsky Krai, Magadan region, supporting fleet ships .
Then there was the reduction of the amount of customers shipyards and production volumes in the industry. A significant decline in industry was observed in 1992 (32%), the most significant in 1994 (2.5 times).
Itt`s obvious that relatively stable stagnation repair during this period was caused by following objective factors:
- significant reduction in the number of heavy and medium-duty fleet;
- high tariffs for heat and electricity;
- lack of spare parts and auxiliary materials.
In this case, shipyards often have excessive, wasteful production capacity, the need for the content which shall be additional burden on the cost of production and helped to reduce the competitiveness of enterprises. To reduce these costs businesses were faced with the need to disaggregate.
The appearance in the fleet of fishing vessels of the foreign construction introduced additional complexity in the activity of industrial enterprises due to the lack of specialists in the repair and maintenance of new equipment, technology, spare parts and materials.
The beginning of 2000 had a positive impact on the activities of the orders for repair of courts increased greatly, which had previously been carried out abroad. Since 1999, there was a relative stabilization of the shipyards, production growth amounted to 10% per year.
The volume of shipped goods of own production in processing industry in Kamchatka Krai in 2009 repair is 11% and takes second position after the food industry.
Today, stable and dynamic development of the ship repair industry prevent critical scientific and technical backwardness of industry from the level of the industrialized countries, a high degree of moral and physical deterioration of the main technological equipment of enterprises and fixed assets, low levels of investment in fixed capital, the shortage of qualified personnel. Technical re-equipment of the industry is hampered by the lack of financial resources due to, including, the lack of solvent demand for ship repairs and services companies in the region. Listed generates the high cost of ship repair works and services, and, consequently, their competitiveness in comparison with the works and services foreign shipyards offering more favorable terms.
In a such way, has a great potential to increase production, only in case of technical re-equipment of enterprises. Predominant position of ship repair provided due to the demand of the fisheries complex on the upgrade and repair of the fishing fleet, as well as due to the proximity to the fishing grounds, and with early development of the Eastern part of the Arctic zone of the Russian Federation with the use of the Northern sea route.
The necessity of timely update of the fishing fleet is the main driver of demand for the services of a private ship repair in the region. The development of ship repair of the Kamchatsky krai in the near future can be developed to meet the needs of the fishing enterprises of the region in the service repair.
The strategic goal of the development of ship repair sector in Kamchatka is the provision of stable development of the ship repair industry as a factor of competitive advantage of fisheries and transport systems of the region.
The development of ship repair sector takes particular importance for the region and for the country. This is not only an indicator of the technological, production and personnel potential of the shipbuilding industry, but also a strong incentive for the growth of related industries and suppliers; industry, metallurgy industry and applied research sector.
In 2010 on the territory of Kamchatsky krai was operating 171 ship repair and shipbuilding company (excluding individual entrepreneurs).
Currently, ship repair companies of Kamchatsky krai produce maintenance, current, average, preventive, emergency, dock repair of fleet, modernization and replacement of fishing equipment of all type vessels.
