Timur Shagivaleyev aims at Chinese $6 billion
Residents from China are attracted to ‘’Alabuga-3’’
For the sake of early conclusion of the Russian-Chinese negotiations on joint venture between two largest economic zones, the SEZ Alabuga and Tianjin Economic-Technological Development Area, the head of the Ministry of Industry and Trade of Russia Denis Manturov ''persuaded'' the Chinese friend, the Minister of Industry and Information Technology of China Miao Wei to hold the second meeting of the subcommission on cooperation in the field of industry between Russia and China in Kazan. And for good reason! By the end of the year, the SEZ Alabuga will present for approval a business plan of the joint venture, focused on raising $6 billion for refining of petrochemical raw materials, Timur Shagivaleyev said to Realnoe Vremya following the meeting.
The second session of the subcommission on cooperation in the field of industry between Russia and China, formed only a year ago for joint development of key areas (aircraft engineering, oil refining, metallurgy), gathered in Kazan for the first time. By the time, the developed within it four thematic working groups during the year were elaborating project solutions in the format of intergovernmental dialogue, meeting mainly in Moscow. However, the minister of trade and industry at the suggestion of President of Tatarstan Rustam Minnikhanov offered to change the usual route and to go deep into Russia, to Tatarstan, to make a decision at a joint public discussion of the subcommission. So, in Kazan there arrived the impressive delegation consisting of over 100 representatives of various companies of national importance under the leadership of Minister of Industry and Information Technology of China Miao Wei.
At the meeting in the Kazan city hall, Miao Wei admitted that until that moment he had never been to the capital of Tatarstan, but driving through the streets of the city, he noticed from the car window that Kazan was the city with rich historical heritage. It would seem that ''duty'' words of the guests, but in the mouth of the Chinese official they can be regarded as a subtle Oriental compliment because in this country they are respectful of the ancient civilizations. What could be more valuable than a conversation of the wisest politicians? Or, what can be older than the Chinese civilization?
''Alabuga-3'' in Chinese profile
The first who took the floor was Minister of Industry and Trade of Russia Denis Manturov. Wasting no time, he immediately went to the main agenda. ''The largest industrial-economic zone Alabuga is located in Tatarstan. Today we make great efforts in order many Chinese companies became its residents in different industries,'' he revealed a ''road map'' of the Tatarstan-Chinese cooperation.
In unison with him, President of Tatarstan Rustam Minnikhanov added that the partner can be Tianjin Economic Area, with the participation of which it may be established a joint venture for development of the third phase of the SEZ Alabuga. According to him, in November of this year, he is planning to visit Shenzhen, where is located the industrial area of Tianjin economic area (TEDA).
Oil refining at $6 billion
Almost 19,000 resident companies with a total investment amount of more than $110 billion are registered in this economic area. It is managed by TEDA Holding, whose leadership came to Tatarstan for acquaintance with investment opportunities of the region. At the moment, the Russian side intends to develop a business plan and approve it with TEDA Holding, as well as to enter into a memorandum of intent. It was expected that it could be signed during the visit of the Chinese delegation to the SEZ Alabuga, it was scheduled for the second quarter of 2018, but there is a chance that the deadline can be changed. As Director General of the SEZ Alabuga Timur Shagivaleyev informed Realnoe Vremya, the business plan is being ''in output''.
''We had made huge work to create the business plan, where one of the partners is a company of TEDA Holding,'' he said. ''These plans define the basic infrastructure facilities, we understand them.'' He clarified that the business plan, in the result of which particular steps will be made, was developed together with the Chinese authorities.
The main area of Chinese investment is the processing of petrochemical products produced in Tatarstan.
''We aim at the objects at $6 billion,'' for the first time he called a preliminary volume of the expected investments. ''With the caveat that the exact parameters will be known at the end of the year. But it will be a long project over a period of 10-15 years of implementation. So we are starting now to get the result in 10 years.''
He stressed that the agreement process with China was long and difficult, but the effect can be expected long term. ''China is the country that looks far away, so no hurry and no fuss. We are also willing to play ''for a long time'' like China. He recalled that over the 11 years Alabuga has attracted 100 billion rubles of investments and earned 60 billion rubles of revenue. ''We know how to play '' for a long term,'' concluded Shagivaleyev.
China is invited to aircraft and helicopter engineering
In civil aviation, Russia invites China to establish industrial cooperation on construction projects of wide-body long-haul aircraft and heavy helicopter (both from scratch). ''An important milestone was the signing of Memorandum of cooperation on 20 September between UEC JSC and the corporation AEEC on production of power plant for the Comac C929,'' said Manturov. In the automotive industry, Russia offers China to open car assembly plants under the special tax regime SPIK. ''Since this mechanism has not been used by the Chinese partners yet, I ask the heads of the working groups to give details about its advantages,'' asked the minister of industry and trade of the Russian Federation. The government of the Republic of Tatarstan does not expect Chinese SPIK from the automotive industry yet but wants to get into aviation cooperation…
The federal agency intends to facilitate the development of the consolidated position of Russia and China on aluminium in relation to the Gulf countries and in the future to make joint proposal on establishment of a similar mechanism in the framework of the global initiative in the field of sustainable industrial development. ''By aluminium we see that Russian-Chinese partnership can be used to influence the processes of world trade amid a rising wave of protectionism,'' said Manturov. ''Amid a rising wave of protectionism, the spirit of our countries for openness and transparency of economies can be a long-term competitive advantage of industrial enterprises in Russia and China.''
However, over the last year the trade turnout between Russia and China increased significantly. But the more it grew up between Tatarstan and China. According to Rustam Minnikhanov, for the first six months of 2017, there was an increase at 75%. ''Last year, the Tatarstan-Chinese trade turnover grew by 40% to $372 million, in the first half of 2017 the growth was 75% and reached $280 billion,'' he said. Of course, Tatarstan President could not help but boast of the cooperation with Haier, which has ''a great importance for the development of business relations''.
At the final media scrum Denis Manturov presented another news that Chinese companies would participate ''in the construction of production of melanimin with the participation of Ammonia JSC''. He concluded that the subcommission remains an effective working body, ''which today enables our Chinese companies to lay terms for projects in the fields of metallurgy, chemistry, aerospace, shipbuilding''.
At the end of the meeting, the sides signed protocols of the working groups. In particular, the large Chinese manufacturer of measuring equipment China Electronics Technology Instrumentation Co. (CETC) plans to open an assembly manufacture in Russia. Besides, the parties agreed to increase the use of equipment of the Chinese company in the electronic industry of Russia. This document was signed in the presence of the head of KRET Nikolay Kolesov.