The investment strategy of the Magadan region

 

Resolution No. 186-pp of the Government of Magadan Oblast
“On approval of the Investment strategy of Magadan Oblast
for the period until year 2025”

dated March 6, 2014

In compliance with the Methodology for determination of target figures to evaluate performance efficiency of the principal officials (heads of the principal executive authorities) of the entities of the Russian Federation regarding creation of favorable environment for entrepreneurship and effecting comparative rating evaluation of performance efficiency of the principal officials (heads of the principal executive authorities) of the entities of the Russian Federation as approved by order No. 570-r of the Government of the Russian Federation dated April 10, 2014, the Government of Magadan Oblast resolves:
1. To approve the attached Investment strategy of Magadan Oblast for the period until year 2025.
2. To consider the following resolutions of the government of Magadan Oblast having lost their legal force:
– dated May 23, 2013, No. 459-pa “On approval of the Investment strategy of Magadan Oblast for the period until year 2025”;
– dated August 01, 2013, No. 728-pa “On making changes in resolution No. 459-pa of the government of Magadan Oblast dated May 23, 2013”.
Information regarding the changes:
By Resolution No. 1048-pp of the Government of Magadan Oblast dated December 11, 2014, clause 3 of this resolution is set forth in a new wording
See the previous wording of the clause

3. To charge T. Atanova, the deputy head of the Government of Magadan Oblast, with controlling the fulfillment of this resolution.
4. This resolution is subject to an official publication.

Governor of Magadan Oblast V.Pechyoniy

Investment strategy of Magadan Oblast for the period until year 2025
(approved by resolution No. 186-pp of the Government of Magadan Oblast dated March 6, 2014)
1. Investment strategy of Magadan Oblast for the period until year 2025 (hereinafter Investment strategy) is generated taking into consideration provisions of Law of Magadan Oblast No. 1241-OZ dated March 11, 2010, “On the strategy of social and economic development of Magadan Oblast for the period until year 2025” that set general objectives of the future development of social and economic system in Magadan Oblast for the regional authorities, business and prospective investors.
2. The main target of the Investment strategy is to instantiate the paths for the investment policy of Magadan Oblast for the period until year 2025 concerning intensification and incitement of the investment process, engagement and efficient use of investment resources for tackling tasks of the social and economic development of Magadan Oblast in order to ensure the dynamic progress of economy and the enhancement of wellbeing and living standards of the region’s population.
3. Key objectives of the Investment strategy:
– to enhance the investment appeal of Magadan Oblast;
– to mobilize internal investment resources and to increase the external ones’ inflow into the economy of Magadan Oblast;
– to expand investment sources for the business and projects initiated by the executive authorities of Magadan Oblast;
– to increase the investments’ efficiency; and
– to develop the regional infrastructure engaging the public-private partnership mechanisms.
4. The growth factors of the competitiveness of Magadan Oblast in terms of investment engagement must be:
– enhancement of the human capital’s quality;
– alteration of the regional economy’s structure and state;
– business performance (efficiency);
– investment active attitude of entrepreneurs and control bodies;
– improvement of the regional infrastructure; and
– development of the tertiary sector.
5. Priorities of the Investment strategy are combined into two groups based on the two key principles of the regional economy’s organization (sectoral and territorial).
5.1. Sectoral priorities of the Investment strategy are as follows:
– development of the mining industry through innovative and technological upgrade of the traditional gold-mining sector in order to consolidate and expand competitive advantages of the region in gold and silver mining, and creating new extractive and processing industries based on the engagement of unused mineral resources base’s items into the turnover;
– development of the electric power industry through elimination of infrastructural restrictions and construction of new power-generation facilities for the guaranteed satisfaction of the prospective aggregated demand of the economy and the region’s population for power;
– development of the transportation complex through elimination of the current territorial and structural disproportions, formation of supplementary transportation links and development of new transportation means in the region;
– development of the constructions industry due to the organization of new works and modernization of the existing ones in order to product modern hi-quality and competitive construction materials whose scope would satisfy the needs of both Magadan Oblast and the neighboring regions;
– development of the fishery complex due to the increase of the fishing resource base by means of artificial reproduction of valuable species of aquatic biological resources, efficiency enhancement of the aquatic biological resources’ procurement, expansion of the species composition of the procured aquatic biological resources, and introduction of new technologies for the aquatic biological resources’ processing;
– development of the agribusiness through promotion of production growth of the primary agricultural products and foodstuffs;
– development of the housing and utility complex, modernization of the major housing and utility funds based on the modern energy-saving technologies; and
– development of the social and tertiary sectors, specifically healthcare, education, culture, physical culture and sports, social support, commerce and tourism by creating an environment for the continuous demographic progress, reproduction and achievement of an optimal population structure, and forming conditions for the subsequent demographic growth by means of:
– enhancing the quality and accessibility of the medical care;
– satisfying the population’s needs for up-to-date education;
– creating an environment for enhancing the quality and variety of culture-related services;
– ensuring the accessibility of physical culture and sports services for the region’s residents;
– developing a system of social institutions and improving their service rendering quality;
– enhancing the goods affordability and accessibility for the consumers; and
– creating an environment for the use of the region’s unique natural resources.
5.2. Territorial priorities of the Investment strategy determine possible vectors of the spatial development of Magadan Oblast in the form of faster-growth zones — Western, Northern, Eastern, Southern and Magadan zones — whose social and economic advance will depend on the development rate of basic resources of the zones listed above.
Western zone covers the Central Kolyma region (southern part of Susuman district, entire Tenkinskiy and Yagodnoe districts, northern parts of Khasyn and Ola districts); its basic resources are deposits in Yan-Kolyma gold-bearing province.
Eastern zone consolidates areas of Srednekanskiy, Omsukchan and North-Evensk districts; its basic resources are deposits in Omolon ore region, Evensk ore hub and Rassoshinsk ore alluvial deposit region.
Northern zone is located in the northern part of Srednekanskiy district; its basic resources are deposits in Shamanikho-Stolbovskiy ore alluvial deposit region and Oroyok metallogenic zone.
Southern zone is a part of the Sea of Okhotsk called “Trans-Magadan Shelf” that is geographically adjacent to the borders of Ola district and Magadan city and promises oil and gas deposits.
Magadan zone is central of them all and includes the administrative center of Magadan Oblast. It is supposed to advance as a territorial system that is capable of initiating development of other territorial units and generating or engaging economic, production and managerial innovations, and coordinates the flows of commodities and traffic.
6. The lines of the Investment policy are:
– upgrade of the investment infrastructure and
– generation of the favorable investment environment.
6.1. Investment strategy’s objective achievement and tasks solving will be facilitated by the generation of a self-sustaining and self-developing investment infrastructure as a compound of inter-related structures that service and provide informational, analytical and administrative support to the implementation of investment processes.
The currently operating investment infrastructure includes:
– executive authorities of Magadan Oblast vested with powers to implement individual lines of the investment policy;
– consultative Council for the foreign investments engagement under the governor of Magadan Oblast; and
– Council for improvement of the investment environment under the governor of Magadan Oblast.
An important position in the investment infrastructure is taken by the ministry of economic development, investment policy and innovations of Magadan Oblast. It organizes investment activities in the region that are conducted by enterprises (organizations) regardless of their ownership form through engagement of all financing sources; arranges development and due approval of suggestions made by the Government of Magadan Oblast regarding the investment objects and scope; and handles distribution of funds allocated for the governmental programs fulfillment.
A unified protocol of the one-stop monitoring of investment projects is developed; it will enable to enhance the regional investment projects’ efficiency and ensure development of the market mechanisms for the investment infrastructure’s operation, as well as financial, consulting and other services in order to switch over to the market self-governing of the investment process with a minimal participation of the government.
Information regarding the changes:
By Resolution No. 33-pp of the Government of Magadan Oblast dated January 22, 2015, changes were made in sub-clause 6.2 clause 6 of this Investment strategy
See the previous wording of the sub-clause

6.2. Generation of a favorable investment environment within Magadan Oblast is the fundamental condition that helps engaging investments into the economy and determines the region’s convenience level for the investment activities.
Investment declaration of Magadan Oblast that was approved by resolution No. 15-p of the governor of Magadan Oblast dated February 03, 2014, “On the Investment declaration of Magadan Oblast” defines the principles of providing a favorable investment environment, namely: equality of the investment activities’ participants, involvement of the investment activities’ participants into solving of matters that affect their interests; transparency, meaning information availability (within the set limits) for the investment activities’ participants; efficient practice, that is, being guided by the most efficient forms of interaction between state authorities and investment activities’ participants.
Lines of the favorable investment environment generation are:
– creation of a competitive system of the governmental support to investment activities;
– reduction of investment risks;
– development of the investment potential;
– generation of a positive investment image of Magadan Oblast; and
– development of the active investment attitude.
A competitive system of the governmental support to investment activities must be created to stimulate Russian and foreign investments and to generate advantages of investing into the economy of Magadan Oblast.
Formation and updating of a legislative basis for investment activities holds an important place in the system of the governmental support to investment activities.
Throughout Magadan Oblast, investment activities are governed by the federal legislation, Law No. 1681-OZ of Magadan Oblast dated December 27, 2013, “On the investment policy in Magadan Oblast” and other regulatory legal acts of Magadan Oblast.
Intensification of the investment activities is supposed to be facilitated by introduction of the principle components of the operating standard of executive authorities of the Russian Federation entity as to provision of a favorable investment environment in the region as set forth in order No. 570-r of the Government of the Russian Federation dated April 10, 2014.
In the longer view, the work on securing guarantees of the investment activities participants’ rights and compliance with the forms of investment activities’ financial and organizational support facilitating the investment risks’ reduction must be continued.
Governmental program of Magadan Oblast “Economic development and innovative economy of Magadan Oblast for 2014–2020” approved by resolution No. 1146-pa of the Government of Magadan Oblast dated November 20, 2013, “On approval of the governmental program of Magadan Oblast “Economic development and innovative economy of Magadan Oblast for 2014–2020” is supposed to facilitate the Investment strategy’s objective achievement and tasks solving.
Generation of a positive investment image of Magadan Oblast will be effected on the following lines:
– formation of the area’s prestige with the assistance of mass media and other information and reference materials;
– using capabilities of the regional information system “Rendering Information about activities of the executive authorities of Magadan Oblast in Internet” (www.magadan.ru) and its website “International and foreign economic relations of Magadan Oblast” to post information about investment processes, specifically not only in Russian, but in English, Chinese, Korean and Japanese languages as well;
– active attitude of the executive authorities of Magadan Oblast in gaining certain publicity in Russian and global community; and
– popularization of the region’s achievements and investment opportunities at various trade shows, fairs and seminars both in Russia and abroad, and hosting Russian and foreign delegations in Magadan Oblast.
The scope of engaged Russian and foreign investments by types and sources will be indicative of the development level of investment activities in Magadan Oblast.
7. Mechanism of the Investment strategy implementation.
Social and economic development of Magadan Oblast in the period until year 2025 must be effected based on the systemic interaction between executive authorities, commercial and non-profit organizations and civil society engaging the public-private partnership mechanisms when fulfilling the key investment projects, and on the participation of federal executive authorities in elimination of infrastructural restrictions of the economic development and in solving social problems.
Investment strategy is supported by specific investment projects listed in the Nomenclature of items intended to be executed in Magadan Oblast within the period until year 2025 approved by resolution No. 124-p of the governor of Magadan Oblast dated October 10, 2007, “On approval of the Nomenclature of projects aimed to ensure national safety, acceleration of the social and economic development for the purposes of implementing decisions of the Security Council of the Russian Federation dated December 20, 2006”.
Governmental programs of Magadan Oblast act as instruments to implement the Investment strategy.
Participants of the Investment strategy implementation are economic entities that perform/intend to perform their operations in Magadan Oblast and executive authorities of Magadan Oblast.
Integrated management of the Investment strategy implementation is carried out by the Government of Magadan Oblast.
State executive authorities of Magadan Oblast stipulate actions for improvement of the investment environment when developing and implementing the governmental programs.
The Investment strategy implementation is monitored by the ministry of economic development, investment policy and innovations of Magadan Oblast that annually posts a report on the Investment strategy implementation for the reporting year in the regional information system “Rendering Information about activities of the executive authorities of Magadan Oblast in Internet” (www.magadan.ru), before June 30th of the year following the reporting year.