Sanctions smothered the Kazan ‘Disneyland’
Tatarstan Investment Development Agency (TIDA) decided to drop a hint to its South Korean friends in order to push the French investors to make a decision on Futuroscope near Kazan
From 19 to 21 June, a Tatarstan delegation headed by President of the Republic of Tatarstan Rustam visited two countries at once – Mongolia and South Korea. A correspondent of Realnoe Vremya visited a press conference dedicated to these two business trips and knew about the development prospectives of commercial and industrial relationships, a deal on the construction of a factory in Almetyevsk for $10m, which has been almost made, and plans on the South Korean Lotte World game park.
Minnikhanov at desk and a Korean factory for $10m
From 19 to 21 June, the delegation of the Republic of Tatarstan visited Seoul in South Korea and Ulan Bator in Mongolia. Different ministries, departments of the republic and large enterprises like TAIF, Tatneft, Ak Bars, Metroelectrotrans and so on were included in the delegation of Tatarstan.
'Korea-Tatarstan' business forum took place within the scope of the visit to South Korea, which is in the 'top 10 countries on the Attraction of Direct Foreign Investments' and top 5 foreign investors. The first persons of the republic met with the administration of the largest Korean companies. There was organised a visit to Pangyo Techno Valley.
As head of the Investment Development Agency of Tatarstan Taliya Minullina told, the commodity turnover of South Korea with Tatarstan is $87,3m. South Korea takes the 30th position in the commodity flow of the republic.
Speaking about their targeted visits, the speaker noted a meeting with the administration of SK Group that provides services in alternative energy, petrochemistry, chemical industry. The company's turnover is $100bn.
'Both our oil workers and the host delegation found perspectives for cooperation. I think we can achieve something in this field,' the head of the IDA thinks. According to her, also there are opportunities with other companies that work in petrochemistry. In Seoul, the delegation visited an office of Samsung where they talked about possible common elaborations and its residency in Innopolis. A possible work on the preparation for the organisation of 2019 WorldSkills in Kazan was discussed with the centre of Samsung Skills.
In I-KAIST, a company that deals with scientific elaborations, President of Tatarstan, who sat at the first desk, was given a lesson on the Solar System and Maths. Touch-Play – a 47-inch touch sensor desk is one of the latest elaborations of the company. The TIDA signed an agreement on cooperation with I-KAIST. It is planned to work on common scientific elaborations and work in education.
In agriculture, they talked about the construction of greenhouses with the help of Korean entrepreneurs. There were also signed two agreements on the intention to create a production of electric and technical products in Almetyevsk District and production of water cleaning filters.
As the head of the TIDA told, there has not been any investment from Korea to Tatarstan in the last 10 years. This is why they do everything possible to change this situation. In April, the agency signed an agreement with Apollo Co., Ltd on the creation of a factory to produce check valves for the needs of the petrochemical industry. The estimated volume of investments is $10m. The signing of the agreement took place after when the company won Tatneft's tender on equipment supply. 'At present we planned to start with Tatneft. Assembly works have being carried out there now. Localisation is planned in the future,' the speaker comments. It is planned the project is to start until the end of the year. Tatneft will participate in the project as a buyer, the capital is Korean. The Korean side won't be given any additional concessions: the work will be done according to the usual tax regimen.
'Now we just dropped a hint…'
The visit to the Lotte World recreation centre and a 123-storey skyscraper Lotte World Tower in South Korea was an impetus to make a decision on a possible construction of the Kazan amusement park together with the Korean colleagues. 'Now President set a task to look for a suitable place for the park. And, undoubtedly, we actively do calculations: we think about potential tourist flows because it is not a charity but an investment project. One should do such calculations carefully,' head of the Tatarstan Investment Development Agency Taliya Minullina told.
It should be reminded there are talks about the creation of Futuroscope French game part in Tatarstan during many years. But the sides have not come to an agreement yet. It is unknown when it happens with the participation of French investors. For this reason, we need to be active and start to talk with other investors instead of waiting for their answer,' the head of the TIDA supposes. According to her, the negotiations with the French side are held. But if Tatarstan starts to talk about this topic with other investors, it can influence the French side that might make a decision quicker. However, Lotte World is not as active as the republic would like. This is why they will work on it separately.
'We just dropped a hint. Now we will continuously talk about this topic further on. They has not made a decision yet,' Minullina assured. She did not tell about the terms of the possible decision.
'They told about the creation of three factories, we advised them to create only one but powerful'
In Mongolia, the Tatarstan side had negotiations with President and PM of the country and business elite within the scope of the visit.
It is remarkable President and PM spoke with the delegation in Russian. The Tatarstan side visited Gobi, the largest factory in the world that produces cashmere. Then there was a demonstration of the manufactured goods. In May 2016, a shop of Gobi opened in Korston hotel.
'Mongolia-Tatarstan' economic forum also took place. There was organised a concert of the art masters of the Republic of Tatarstan. Minullina stressed the 95 th anniversary of the establishment of the Russian-Mongolian diplomatic relationships was the importance of the visit.
First Deputy Minister of Industry and Trade of Tatarstan Ruslan Kabirov told that expansion of sales geography of KAMAZ machinery and its spare parts in Mongolia, as well as cooperation in oil extraction, education of oil workers of Mongolia in educational institutions of the Republic of Tatarstan, delivery of pharmaceutical products and household chemical goods made in Tatarstan can be noted as one of the prospective areas for cooperation.
Kabirov reminded the turnover between two sides for the first quarter was almost $8,5m. This number was almost $12m for the whole year in 2015. So, this year the expectations of the republic are quite optimistic: it is planned to double last year's commercial turnover.
Answering a question asked by Realnoe Vremya, Taliya Minullina told that at this moment the Tatarstan business has not been represented in Mongolia yet. They are speaking about commercial and industrial relationships concerning the supply of petrochemical goods to both sides. A possibility of construction of a petrochemical factory is also under discussion.
'Mongolia plans to create petrochemical factories: they spoke about the creation of three factories. We advised them to create only one but powerful. Our petrochemical enterprises also want to invest there. A group of specialists is created now. They will go to Mongolia to study and discuss this issue in detail,' Taliya Minullina commented.
Answering another question asked by Realnoe Vremya about the relationships of the two cultures, the speaker remembered the Tatar and Mongolian raids and noted the necessity to activate tourism taking into account historical peculiarities.
Two Chinese factories more can come to Tatarstan after Haier
Now the colleagues from South Korea came to Tatarstan to pay their return visit: a delegation consisting of 30 entrepreneurs and Ambassador of Korea to the Russian Federation is in the republic. A forum in the Chamber of Commerce and Industry of Tatarstan is the key event. The programme also includes visits to IT-park, Innopolis and targeted meetings in the Tatarstan enterprises. This year it is planned to welcome a delegation from Mongolia too. But now there is not any agreement with the country on the visit yet.
The TIDA is also going to visit the U.S. Work with China is in the process too. Another two Chinese companies decided to invest after Haier. 'They are likely to choose the site in Tatarstan. They've already visited it,' the head of the agency told. One company produces plasma panels, another one manufactures Chinese road building machinery. The Tatarstan delegation is going to visit four Chinese cities in July.
Moreover, the TIDA presupposes to open two Chinese restaurants in Kazan and Naberezhnye Chelny. However, as Taliya Minullina explained Realnoe Vremya after the press conference, nothing has been decided yet. They mean only an attraction of investors.
A big delegation from Japan headed by the advisor of the PM of the country is expected in August in Tatarstan.