India will extend a $1 billion Line of Credit to Russia’s Far East, Prime Minister of India Narendra Modi announced at a plenary meeting of the Eastern Economic Forum. Indian PM said New Delhi will walk shoulder-to-shoulder with Russia in its development of the resource-rich Far East region.
“India will provide a $1 bln credit line. This is an unprecedented case, this is our launching pad in the Far East. The Government of India is very active in this region,” he said.
PM Modi stressed that this is a unique case when New Delhi provides such special credit line to another country. “I am also confident that this step will give new impetus to the development of economic diplomacy and the growth of ties between the regions of our friendly states. We will remain active partners in our priority cooperation,” he said.
India concluded around 50 agreements worth $5 bln at the EEF-2019, according to the prime minister. According to Modi, the Far East has great natural resources and potential for active development.
Investments in the economy of Russia’s Far East over the five years amounted to $9.27 Billion thanks to support measures, President Vladimir Putin said.
In general, thanks to the proposed support measures, starting in 2015, investors invested $9.27 Billion in the region’s economy, put into operation 242 new plants, created more than 39,000 jobs,” Putin stated. He noted that the growth of industrial production in the Far East over the past five years reached 23%, which is almost three times higher than the national average.
For its part, Russia plans to provide incentives to companies involved in advanced refining in the Far East, President Vladimir Putin went on to say.
“Obviously we plan to focus on boosting exports of highly refined products. That is also our principal position that I would like local and foreign investors, residents of advanced special economic zones and the free port of Vladivostok to pay attention to,” he said.
As an example of supporting advanced processing, the president mentioned an increase in export tariffs on round timber. “Meanwhile, we are ready to prop up those willing to invest in wood processing facilities, particularly to create the most favourable environment for exports of finished goods, including the markets of third countries,” he noted.
Aircraft construction, gas refining and petrochemical industry are being actively developed in the region now, Putin said, adding that the creation of the Zvezda Shipbuilding Complex is underway.