Chinese Power Companies Set to Invest in Russian Far East

The possibility of involving Chinese companies in the construction and upgrading of power plants in the Russian Far East was discussed during Russian Deputy Prime Minister Yury Trutnev’s visit to Beijing, according to an official Russian statement.

At the meeting, the participation of Chinese companies in the construction and modernization of power plants in the Far East and in the implementation of several other projects, was considered. In particular, China Energy Engineering Corporation is interested in the construction (upgrade) of power plants in the region as part of the program designed by Russia’s Energy Ministry, which provides for the modernization of about 40 GW of power capacity until 2035.

“Yury Trutnev instructed the Far East Agency to attract investments and export support to work out the possibility of involving private companies in the construction of power plants in the Far Eastern Federal District,” the report stated.

The Russian Far East is sparsely populated; however, it is known to contain huge energy and commodities reserves. The region comprises the Russian part of the Far East, being defined as the extreme eastern territory of Russia between Lake Baikal in Eastern Siberia and the Pacific Ocean.

The Far Eastern Federal District, which covers this area, borders with the Siberian Federal District to the west; it has land borders with China and North Korea to the south west and has maritime borders with Japan and the United States.

Although traditionally considered part of Siberia, the Russian Far East is categorized separately from Siberia. The region also includes the major port city of Vladivostok, which is being developed as a maritime gateway with access to Japan and the United States, and is becoming a major diamond processing center. It is also being developed as a free trade zone, hoping to attract Asian investors into the region.

Related Reading:

China Rail Targets Russian Far-East as a “Priority Market”

Russia, China Set up New RMB Investment Fund to Support Far East Russia and North-East China

Assisting Foreign Investors into Russia

Dezan Shira & Associates´ Russian investment brochure offers an overview of the services provided by the firm – both foreign investment into Russia and Russian investment into Asia. It is Dezan Shira´s mission to guide investors through Russia´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the…