14 



. Nuclear Power • Chutkotka 



Tha l«ad«n ct Iha Chulkolka Autonomous Araa have decided 

 to finance the construction of \ha second stage of the Bilibino 

 nuclear power station built here in 1 973. There is no record ol 

 damage to the air or water. There is a problem, however. More 

 than 170 lop specialists have announced their intention to 

 leave Chukotka. and there are currently no plans lor their 

 replacament. ( 1 2/ZZ/9 1 ) 



^FOREIGN RELATIONS/INVESTMENT^ 



External Relations Department In Prlmorye 



An external relations department has opened in the Pnmorsky 

 krai administration. Its head is the former deputy of chief of ad- 

 ministration Valeny Lozovoy. The department has three 

 sections: foreign investments and foreign trade, international 

 cooperatkin. and protocol service. (1/26/92) 



Development of Prlmorye 



The ehiel of Primoryes regonal admrninstralion. V. Kusnetsov. 

 recently returned from a trip to organize economic ties between 

 Primorye and British Columbia Businessmen from Bntish 

 Columbia became interested in a plan proposed recently by 

 Japanese speoalists for development of the area. Officials 

 from Bntish Columbia will visit Vladivostok soon to discuss 

 setting up a 'link' between the two areas. 



Kusnetsov is also meeting with officials from the European 

 Bank of Reconstrueton and Devetopment (EBRD) on whether 

 the bank wiU help set up market structures and economic 

 infrastructure. The bank is accepting the folbwing rasponsibili- 

 lies: to help estimate the natural resource deposits in Primorye. 

 10 invest in future economic devetopmeni ol Pnmorsky region 

 directly or to assist with k)ng-ierm loans, and to pnsvide 

 financial aid for inlrastruaure. (1 1/17/91) 



Japan To Open Consulate In Vladivostok 



A meeting was heW recently in Vladivostok to discuss the 

 opening of a Japanese Consulate in Vladivostok Ui Suzuki 

 Vaianabe. a vice-consul ol the consulate-general in Nahodka. 

 suted that he woukj prefer a location for the consulate in 

 do»mtown Vladivostok, since this summer a great number ol 

 tounsts and businessmen will visit the coy. (1/26/92) 



Taxation ol Foreign Investors In Prlmorye 



A draft decree issued by Russian President Bons Yeltsin re- 

 garding Pnmorye Ten-itory contained a section on taxation that 

 states that for foreign enterprises involved in mmmg. fishing. 

 and fish-processing, the proHt lax cannot exceed 20 percent. 

 For the enterpnses with foreign investments where the share of 

 a foreign partner makes up more than 30 percent, the profit 

 tax cannot exceed 10 percent. (12/29/91 ) 



Registration Costs lor Foreign Investments 



Chief ol the administration ol Magadan region adopted a new 

 order for the regotrauon ol enterpnses with foreign invest- 

 ments. Registration costs will be 3.000 rubles Enterprises 

 with investments up to 100 millon rubles registered belore 

 December 1. 1991 will be registered free of charge. (2/2«2) 



Vladivostok as Major Asian Trading Hub 



Japans major trading corporations expect the port of Vladivos- 

 tok to become the major trading hub (or cities in the Russian 

 Far East. An official ol Mitsubishi Corp has indicated that 

 Vladivostok 'will become the center for most business opera- 

 tions involving Japan and other Asian nations.' 



Russian authorities agreed to open the port cities of Vladrvos- 

 tok and Vostnoehny to Japanese commercial shipping. A 

 group ol Japanese trading companies called the Japan- 

 Russian Trade Association has agreed to provide devotopment 

 assistance (or the Port of Vanino. 



But the Japanese are not the only ones getting involved. In 

 June, a business delegation from Tacoma, Washington (lew to 

 Vladivostok and signed agreements establishing barking and 

 port ties between Vladivostok and Taooma. Under the banking 

 agreement, Puget Sound Bank will pay for training and 

 education costs for Vladivostok bankers who come to the 

 Pacific Northwest to leam about U.S. banking methods. 



Although Vladivostok lacks loreign exchange banks and 

 customs olfKes, the massive hart>or laalities give great 

 potential to the city's luture as a trading hub. The Mitsubishi 

 offcial said Vladivostok is bound to become tha most important 

 outlet lor Russian Far Eastern steel, fishery resources, oil, 

 natural gas, and forest products. 



A mission o( representatives of major Japanese commerea) 

 banks, trading corporations, and other private sector indusuies 

 toured six cities of the Russian Far East recently. The purpose 

 of the tour was to sunrey port and other infrastruaure facilities 

 to find out Russian plans lor improving the ability to handle a 

 substantial increase m port aaivrty. Another moson will teach 

 Russian authories how to turn Vladivostok into a commercially 

 viable hub. 

 (Journal of CommereB Intematinnal Prtitmn December 1991) 



Ctransportation^ 



Shipping Insurance In Far East 



Dalrosso. a Far East Russian insurance joint stock company, is 

 the first non-state company of its kind in the country. The 

 company was registered in Vladivostok, and its founders 

 inckide the Far Eastern, Primorye, and Sakhalin shipping 

 oempanias. Vostokrybkhotodftot fishing assoaatxjn, Kraip-. 

 otrabsoyur. and city executive committee Ingostrakh. 



Dalrosso has insured more than a thousand ships. It insures 

 cargoes (both in hart currency and rulJles), eonstructkjn, as- 

 sembly, adjustment and start-up risks, after-sun-up guaran- 

 tees, property interests of the pint ventures, state, cooperative, 

 and public organizatkins, cars, fixed and current asssals, and 

 other aspects of shipping. Dalrosso is reportedly different from 

 other Russian insurance companies in its guarantee - a policy 

 with the company ensures recoupment ol bsses. 



Dalrosso has represenutives in Vladivostok, Nakhodka. Khab- 

 arovsk, Vanino. Vostochnyi, Ittagadan, Petropavtovsk- 

 Kamchatski. Yakuts. Ulan-Ude, Novosibirsk. Scrutsk. and 

 Moscow. An agreement has been reached with several 

 Japanese companies (or Dalrosso to insure their companies in 

 Russia, while the Japanese insure the Russian company in 

 Japan. (12/29/91) 



