Rustam Minnikhanov: ‘For Japanese investors we are able to provide best conditions in the Russian Federation’

Arrived to the land of the rising Sun, Rustam Minnikhanov and Denis Manturov visited Waste Resource Recycling Plant of Mitsubishi Heavy Industries. The enterprise (24,000 square metres) is able to recycle up to 400 tonnes of solid waste per day.

The President of Tatarstan also visited a number of historical and cultural sites of the capital of Japan, including Atago Shrine, the Tokyo Imperial Palace and Rikugien Garden. He appreciated the exhibition of new car models and rare cars in the centre of Tokyo. And yesterday Minnikhanov participated in the work of the business mission 'Trade and Industrial Dialogue: Russia – Japan'.

President of the Republic of Tatarstan Rustam Minnikhanov's interview to a Japanese economic newspaper Nikkei Shimbun:

How do you assess the current economic potential of Tatarstan?

Tatarstan is one of the most economically developed regions of Russia, which makes a significant contribution to the national economy. Republic is located in the center of the European part of Russia, at the confluence of two rivers: the Volga and the Kama. Major air and waterways, roads and railways connecting the east and the west, north and south of the country intersect here. The Republic of Tatarstan has rich natural resources and strong industry, high intellectual potential and skilled labor force.

Tatarstan has a total area of about 68,000 square kilometers with the population of almost 4 million people. 1.2 million residents is the population of Kazan – the region's capital city, being the third largest city after Moscow and St. Petersburg. It is located 800 kilometers east of Moscow, and therefore it is closer to Japan.

The republic has repeatedly become the center of international and national events, including economic forums and summits, sports competitions. In 2013 Tatarstan welcomed the participants and guests of the World Summer Universiade, in 2015 it hosted the FINA World Championship, and in 2018 — World Cup matches will be held here.

By the end of 2015 republic GRP amounted to more than 1.8 trillion rubles (about 24 billion US dollars). The republic rank 3rd in the country in terms of capital investments, as for the agriculture Tatarstan holds 4th place and ranked5th in Russia for industrial production and construction.

Internationally-reputed companies like Ford Sollers, Air Liquide, Rockwool, Marriott, Sisecam, Hayat Group, Daimler, Fujitsu, Kastamonu, Haier, Wienerberger, 3M and many others established long-term partnership with Tatarstan.

The pillars of the economic development of Tatarstan are power industry, chemical and petrochemical production, agriculture and automobile manufacturing. We are actively working towards the diversification and modernization of the country's economy, attracting and developing new technologies. The industrial profile of the Tatarstan economy is dominated by petrochemical complex (oil extraction, production of synthetic rubber, tires, polyethylene and a wide range of refined petroleum products), large machine-building enterprises (heavy trucks and passenger cars, helicopters and airplanes, compressors and oil and gas piping equipment, maritime and river vessels) as well as the developed electric and radio equipment production.

Internationally-reputed companies like Ford Sollers, Air Liquide, Rockwool, Marriott, Sisecam, Hayat Group, Daimler, Fujitsu, Kastamonu, Haier, Wienerberger, 3M and many others established long-term partnership with Tatarstan.

What is the current status of cooperation between Tatarstan and Japanese companies?

Expansion of the collaboration between Tatarstan and Japan within the framework of Russian-Japanese relations is one of our priorities. Construction and commissioning of new Ammoni complex for production of ammonia, methanol and granulated carbamidewith the capacity of annual deep processing of natural gas up to 1 bln. cu m has become an emblematic milestone event.

Besides we have been working closely with a number of Japanese companies for many years: TAIF Group of Companies (TAIF-NK, Nizhnekamskneftekhim, Kazanorgsintez) cooperate with Mitsui company; Yokogawa Electric Corporation is actively involved in a number of projects on industrial automation of the largest Tatarstan enterprises. Local office of Yokogawa Electric was opened in Tatarstan in 2005, and in 2011 there was set up a company's laboratory in one of our universities (KNRTU).

In 2010, on the territory of Kama industrial park «Master», «KAMAZ» company and «Mitsubishi Fuso» established a joint venture to assemble and sell medium-duty trucks in Russia. «Eidos» company from Tatarstan, together with the «Riken» Japanese Institute have created a joint venture in the field of genetic diagnostics. For many years we have been successfully cooperating with the Japan Association for Trade with Russia and Eastern Europe — ROTOBO and the Japanese organization for the development of foreign trade — JETRO.

It shall be noted that the technologies and capital of many Japanese companies are used in Tatarstan in the construction of petrochemical plants, development of public health and agriculture, improvement of IT infrastructure of the Republic of Tatarstan and in other areas.

We support the development of scientific and educational cooperation with Japan. Kazan Federal University and other institutions have direct links with the leading Japanese educational institutions. Part of the work in this area relates to collaborative research, internships of students and teachers at the Kazan Federal University, a Center of Japanese Studies is established at the University and operates quite successfully.

In recent years, cultural cooperation is successfully developing. Last year, in October cities of Tokyo and Matsue hosted the Days of Tatar culture. Japanese Spring festival is traditionally held in Kazan. We are also interested in developing tourism cooperation with Japan.

In what sectors of the Tatarstan economy, in your opinion, can Japanese companies invest more?

The Republic of Tatarstan is one of the most economically developed regions of the Russian Federation and is very attractive for investment. Tatarstan is a leader in the development of industrial and agricultural production.

Currently, the Republic of Tatarstan identified a number of priority sectors for investment: petrochemicals, engineering, agriculture, medicine and pharmaceuticals, biotechnology, robotics, laser and information technology.

Besides we have been working closely with a number of Japanese companies for many years, including Mitsui company and Yokogawa Electric Corporation

We are ready to foster cooperation with Japanese colleagues in the development of a wide range of electronic and technological equipment, the implementation of projects for the development and introduction of information and 3D (additive) technology, the production of new high-quality organic products, establishment of waste treatment facilities, implementation and delivery of innovative educational services.

For Japanese investors we are able to provide the best conditions in Russian Federation: tax incentives, active administrative and financial support (grants, subsidies), the development of innovative infrastructure and all supporting mechanisms for investors on the territory of the Republic in the mode of «one window».

There are two special economic zones in Tatarstan:
1) Industrial production zone «Alabuga» and,
2) R&D zone «Innopolis».

We are actively developing various industrial parks and industrial areas, as well as engineering centers and accredited industrial sites at the municipal level.

Providing a favorable investment climate and supporting business ventures is an ongoing priority of our economic policy. Legal guarantees, socio-economic and political stability, well established mechanism of state support rendered to investment projects provide favorable conditions for companies operating in Tatarstan.

The Republic of Tatarstan is open.

Text of the interview is on the site of the business mission 'Trade and Industrial Dialogue: Russia – Japan' photo: prav.tatar.ru