Khabarovsk Krai Overview

General Info on Khabarovsk Krai

Khabarovsk Krai is located in the central part of Far Eastern Russia. It borders on the People’s Republic of China in the south-west, on Primorsky Krai in the south, and Jewish Autonomous and Amurskaya Oblasts in the west, the Sakha (Yakutia) Republic in the north-west and north, on Magadanskaya Oblast in the north.

Khabarovsk city as the administrative center of Khabarovsk Krai and the Far Eastern Federal Okrug concentrates a great industrial, culture and research potential. The city is a largest transport hub of the region.



Municipal Entities233
Town Okrugs2
Town Settlements23
Municipal Rayons (Districts)17
Rural Settlements191
Krai Population1 338 300
Urban Population Share82 %
Khabarovsk City Residential Population607 200
Komsomolsk-na-Amure Residential Population253 000
image
Khabarovsk
agglomeration
Electric power engineering, oil processing, heavy engineering and metal working, wood processing, construction industry, agriculture, food industry, transport and telecommunications
Verkhnebureinsky
Industrial Node
Coal mining, mining, logging, wood processing
Komsomolsk —
Amursk — Solnechny
Industrial Zone
Aircraft and watercraft manufacturing, heavy engineering, defense industry ferrous metallurgy, non-ferrous ore mining, oil processing, electric power engineering, logging and wood processing, food industry
Vanino — Sovestko-Gavansky Transport
and Industry Node
Sea ports, harvesting and processing of water biological resources, logging and wood processing, construction industry, oil processing, vessel repair
1 780 km
from north to south of
the Khabarovsky krai
780 km
from west to east of
Khabarovsk Krai
787 600 km2
Khabarovsk Krai area, 4.6% of
Russia’s total

Biological Resources

Khabarovsk Krai has all kinds of natural resources: land, water, forest and others. In many of them the krai leads the Far Eastern Federal Okrug and overall Russia.



Krai Land Stock78.7 mln ha
Agricultural Land665.5 thous ha
Forested Area52.5 mln ha
Allowable Cut25.1 mln m3 a year
Total River Length584 thous km

Mineral Resources

Total Reserves
Platinum25 tons
Gold278.5 tons
Silver1922.5 tons
Copper290 thous tons
Tin360 thous tons
Cement Raw Materials992.7 mln tons
Tungsten Trioxide29.8 thous tons
Coal2.3 bn tons
Forecast Resources
Iron Ore8 bn tons
Complex Ore100–130 bn tons
Manganese Ore30 mln tons
Coking Coal4 bn tons
Estimated Oil And Gas Resources5 bn tons



639 mineral deposits
27 minerals found in Khabarovsk Krai, out of that 217 are common useful minerals and 422 solid ones

Labour Resources

Khabarovsk Krai is characterized by a rich labour potential and a system of developed professional training and advance training. The employed have a high level of professional education.





Wages in Khabarovsk Krai
Extractive IndustryР 58.7 thous
Processing IndustryР 33.3 thous
ConstructionР 30.5 thous
TradeР 23.0 thous
AverageР 36.2 thous

Transport and Telecommunications

Khabarovsk Krai is the key infrastructure node in the commodity exchange between Russia and APR states.


KhabarovskKrai is at the crossroads of international and national air corridors connecting Europe with APR and North America states. Khabarovsk International Airport Novy is one of the largest in the Far Eastern Federal Okrug and acts as a hub for inter-regional air communication.



Federal highways Amur (Chita — Khabarovsk), Ussuri (Khabarovsk — Vladivostok), Vostok (Khabarovsk — Nakhodka) cross the region and connect the national network of highways with Far Eastern ports of Russia.



There is an international high-speed fiber-optic cable line of high capacity betweenKhabarovsk and Fuyuan (PRC). The city telecommunication fixed lines employ fiber optic and offer comprehensive xDSL services. There are satellite information flows to northern hard-to-access krai areas.


Two national railway trunk lines, the Trans-Siberian and the Baikal-Amur Railwayssecure communication between the country`s eastern and western regions. Railway transport plays a leading role in cargo operations, including export and import ones that is determined by the exit to large Pacific sea ports and overland cross-border checkpoints.



Inland water transport of Khabarovsk Krai secures a cargo and passenger flow exit via a network of waterways southwest to the north-eastern PRC provinces, northwest to the Tatar Strait and over to the APR states. Khabarovsk, Komsomolsk-na-Amure and Nikolaevsk-na-Amure are large river ports. Large international sea ports Vanino, Sovetskaya Gavan and De-Kastri are located on the Tatar Strait sea shore.




Fourth-generation 4G mobile telecommunication is launched in Khabarovsk Krai. Now the users have access to a fast Russian mobile LTE network.

Business Infrastructure

Banking Sector

32 credit organizations are engaged in banking operations in Khabarovsk Krai, 2 of them are regional banks and 30 are branches of credit organizations from other country regions, including banks formed with the participation of foreign capital. International correspondent relations have been set up with over 30 banks; among them are Bank of New York, Bank of Tokyo, Eurobank, Deutshe Bank and Bank of China.

Russian banks
— Sberbank
— Gazprombank
— Alfa-Bank
— Rosbank
— Bank of Moscow
— Eastern Express Bank
— Rosselkhozbank
— MTS Bank
— VTB
— Ussuri
— Otkritie Financial Corporation Bank
Foreign banks
— Home Credit Bank
— Bank of China
— Uniastrum Bank
— OTP Bank



Insurance Sector

There are 42 insurance companies in the region, 6 of them are regional and 36 are branch offices of insurance companies from other RF regions.

Insurance companies
— Kolymskaya
— Ingosstrakh
— VSK Insurance House
— Dallesstrakh
— DalZhASO
— DAL-ROSMED
— Rosgosstrakh

Khabarovsk Krai Economy

The krai leading economy sectors are transport and telecommunications (23% of Gross Regional Product), industry (17.9%) and trade (13.8%). Processing takes over 61% in the overall production.

The main branches of specialization are the fuel and energy sector (23.4% of the total), heavy engineering (25%), and mining except fuel and power resources (15.4%), oil processing (13.4%), foods production (8.3%) and metallurgy (7.4%).


Investment Policies

Khabarovsk Krai is one of the most attractive regions for business in the East of Russia. The krai investment legislation, a system of financial and other preferences and an organizational support of investors allow the Russian and foreign businesses to effectively use the available regional economic and resource potential.




Public Private Partnership

Public private partnership (PPP) is a legally endorsed partnership of the krai authorities, on the one side and a private partner, on the other for a certain time term and based on pulling together resources and sharing risks, effected according to the agreement on public-private partnership in order to attract private investment into economy, to secure accessibility and improved quality of goods, works and services that are within the authority of the state authorities and local self-government.

There are legal, economic and organizational conditions in Khabarovsk Krai for utilizing the PPP instrument for meeting the socially viable tasks. The coordinator for such action of the krai executive authorities in PPP investment projects implementation is Ministry of Economic Development of Khabarovsk Krai. Now several pilot PPP projects are successfully being implemented in Khabarovsk Krai and a number of other projects are at the stage of preparation of terms for their implementation.

Benefits for the investor:

  1. Participating in the economy spheres that are exclusive authority of the executive power.
  2. Implementing the long-term project with a stable market and at the lowest commercial risk rate.
  3. Receiving state support to investment activity, developing the brand name and improving the investor’s image.

Benefits for the state:

  1. Enhancing the efficiency and quality of state services rendered.
  2. Attracting long-term investments in the state economy sector.
  3. Sharing risks and obligations between partners.

Territories of Advanced Social
and Economic Development

Territory of Advanced Social and Economic Development (TASED) is a part of the area of the Russian Federation constituent member territory with a special legal regime for entrepreneurial and other activity in order to shape a favourable environment for attracting investment, for accelerated social and economic development and nurturing the livable environment. Its legal status is set by Federal Law #473-FZ of December 29, 2014 “On Territories of Advanced Social and Economic Development in the Russian Federation”.

The following special legal regime is in force for entrepreneurial activity in TASED:

  1. Discounted profit tax rate
  2. Discounted real estate lease rate
  3. Streamlined state and municipal control (supervision) regime
  4. Prioritized access to infrastructure facilities built with federal funds
  5. Free customs zone regime (after a special decision of the RF Government)
  6. Corporate property and land tax benefits
  7. Discounted insurance payments
  8. Other special terms for operations (attracting foreign workforce beyond the set quotas).

Khabarovsk Krai – the First in Russia
to established TASED

Resolutions #628 and #630 of 2015.06.25 of the Government of the Russian Federation launched Territories of Advanced Social and Economic Development (TASED) “Khabarovsk” and “Komsomolsk”. The total over 20 investor applications were submitted for the above TASEDs and 13 of them were endorsed by the agreements with the Ministry of Development of the Far East of Russia. The investments total to about 45 bln roubles approximately, about 6 thousand jobs are to be generated.

TASED Khabarovsk

It is within the Khabarovsk agglomeration. Here is registered the highest investment activity related to the city central positioning and a great consumer demand of the agglomeration, a developed infrastructure. Three sites were identified: Airport, Avangard industrial park, Rakitnoye for the total of 14 896 ha under the cadastral blocks (at first stage according to the boundaries it is 587.3 ha).

The specialization of this TASED is metallurgy, agriculture, and foods production, industrial production, transport logistics, distribution, warehousing, related services, and also the construction project of a modern air hub with a diversified business infrastructure.

The private investment will exceed 33 billion roubles; the jobs generated will come close to 4.8 thousand.


TASED Komsomolsk

It is within the agglomeration of the krai industrial center of the city of Komsomolsk-na-Amure (including the city of Amursk). Its specialization is based on cooperation linkages with the operating high-tech facilities in aircraft- and watercraft manufacturing and also heavy engineering.

Three sites were identified with the total area within the cadastral blocks of 8 337 ha (at first stage according to the delineated borders it is 218.9 ha).

  1. Parus plant area of 59.4 ha with an option for expansion. Specialization is mechanical engineering, heavy engineering, composite materials, tool engineering.
  2. 2. Amurlitmash plant area of about 62 ha. Specialization is mechanical engineering and heavy engineering.
  3. 3. Site inthe city of Amursk of about 97.3 ha. Specialization is wood processing.

At first stage 5 investment projects are planned for the total of 12 bn roubles. The expected jobs are 1.1 thousand.

Perspective TASEDs of Khabarovsk Krai

TASED Sovetskaya Gavan

One of the perspectives is the TASED in the Sovetsko-Gavansky municipal rayon. It is close to the sea ports of Vanino and Sovetskaya Gavan and relates to stevedoring operations, logistics, fish processing and also ship repair and wood processing.


TASED Russian part of Bolshoi Ussuriysky island

The expected TASED area is 17 124.3 ha. Specialization is international tourism, recreation and organizing congresses and exhibitions.

Port Special Economic Zone

A special economic zone is an area identified by the RF Government as a part of territory with a special regime of entrepreneurial activity where also the customs procedure of a free customs zone is applicable. Port special economic zones (PSEZ) are formed in the areas close to the sea ports, open for international traffic and for foreign vessels calling at such ports, and can include parts of territories and (or) water areas of sea ports, river ports. Functioning of PSEZ is oriented at development of the port and transport infrastructure.

The total area of land sites registered within the PSEZ in Cape Mariya and Cape Muravyov is 290 ha. The expected expansion of the PSEZ area can take place due to the fish processing complex in Lososina settlement and activating the mechanism of PSEZ in a part of Vanino port for construction of dedicated terminals. The total area of land sites after the expansion of the PSEZ will make 1 630 ha.

For functioning of PSEZ, state support for the construction of the service infrastructure is granted.

The sole in the Far East was PSEZ formed in the territory of the Sovetsko-Gavansky municipal rayon and endorsed by RF Government Resolution #1185 of 2009.12.31.

Port Special Economic Zone

Located in one of the largest deepwater bays of the Russian shore of the Sea of Japan, the sea depth reaches 30 meters

The Bay area can receive vessels up to 50 000 deadweight and under the port infrastructure development up to 300 000 tons.

Year-round navigation — there is no solid ice formed in intense vessel traffic

Exit to larger railway trunk lines, the Trans-Siberian and the Baikal-Amur railways

Exit to the federal motor road network via the highway of Khabarovsk – Lidoga – Vanino with an access to Komsomolsk-na-Amure

There is Mai-Gatka airport that services regular flights to Khabarovsk

Proximity to the main deposits of minerals close to the BAM

Proximity to key mineral export markets, wood products, fish products or other cargo of North-East and South-East Asia.

A developed support infrastructure.

Specialization

— transport and logistics services
— ship repair
— reproduction, harvesting and processing
    of fish and mariculture

Planned infrastructure

— transshipment complexes (port terminals) in handling various cargo
— a fish processing complex with berths and refrigerators
— a ship repair facility
— customs zone infrastructure
— support transport, energy, engineering and other infrastructure
— administration facilities

Preferences and benefits

State guarantees — signing an agreement with the RF Government, stability of legislation (the zone is registered for 49 years)
Special administrative regime — lowering the administrative barriers, one-stop window regime
The required infrastructure — offices, water, electric power, heat, etc.
Minimal costs — low cost of land purchase, an opportunity for accelerated amortization

Industrial parks

An industrial park is the total of industrial infrastructure facilities designated for launching or modernization of industrial production and managed by the managing company, commercial or non-commercial organization registered in accordance with the Russian Federation legislation.

Khabarovsk Krai has the best well-developed base for industrial parks as compared to all other Far East regions. In Khabarovsk Krai industrial production, utility and engineering infrastructure is best developed. The region has the largest number of industrial sites suitable for industrial parks.

Active Industrial Parks




AVANGARD

Specialization — agribusiness and logistics

Park area — 47 ha

Park engineering infrastructure:

— electric power supply 1.5MW, planned up to 30MW (co-generation)
— gasification is complete in 2015
— water supply 1 200 cubic meters/day (wells)
— heat supply depends on gasification (co-generation), planned 14 GCal/h
— railway and motor ways are available

Location — Khabarovsk city


DALENERGOMASH

Specialization — electric power engineering, mechanical engineering and metal working, auxiliary production

Park area — 20.1 ha, office space, production and warehouse floor space — 65 thous m2

Park engineering infrastructure:

— electric power supply 3 MW, planned 6MW
— gasification is expected
— water supply 100 cubic meters/day
— heat supply depends on gasification
— motor rods are available

Location — Khabarovsk city



Projected Industrial Parks




INDUSTRIAL PARK CHEGDOMYN

The park is under the authority of the Ministry of Economic Development of Khabarovsk Krai

Specialization — forestry, innovative production and agribusiness, production of construction materials

Park area — 79.1 ha

Park engineering infrastructure:

— electric power supply 5 MW
— gasification is not planned
— water supply — 4 000 cubic meters/day

Location — Chegdomyn settlement

Contact Info

Khabarovsk Krai Government

56 Karl Marx St. Khabarovsk 680000 Russia
Tel.: +7 42-12 32-51-21, +7 42-12 40-20-02

Khabarovsk Krai Representative Office at the Russian Federation Government

R.2029 #19 Novy Arbat St. Moscow 127025 Russia
Tel.: +7 495 697-41-28, Fax +7 495 697-73-63
region27moscow@gmail.com

Ministry of International and Inter-Regional Cooperation of Khabarovsk Krai

56 Karl Marx St. Khabarovsk 680000 Russia
Tel.: +7 42-12 40-21-70
Tel. /fax +7 42-12 30-57-27
mic@adm.khv.ru

Far Eastern Innovation Support Agency

#52 Dzerzhinsky St. Khabarovsk 680000 Russia
Tel.: +7 42-12 47-31-15, +7 42-12 47-31-16, +7 42-12 47-31-18
office@dasi27.ru
www.dasi27.ru

Investment and Development Agency of Khabarovsk Krai

Off. 409 #22 Frunze St. Khabarovsk 680000 Russia
Tel.: +7 42-12 79-44-81
invest.agency@mail.ru
www.khabkrai-invest.ru

Export Support and Development Center of Khabarovsk Krai

#41 Dzerzhinsky str. Khabarovsk 680000 Russia
Tel.: +7 42-12 47-44-20, +7 42-12 47-44-18
info@khabexport.com