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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on February 16, during the Russian Investment Forum 2018 in Sochi, a final agreement on formation of a joint venture company to promote Japanese investment in the Advanced Special Economic Zones*1 (ASEZs) and Free Ports*2 in the Russian Far East. This joint venture company, namely, the Japanese Project Promototion Vehicle in the Far East Limited Liability Company (Far East JPPV) *3, will be co-founded by JBIC, the Far East Investment and Export Agency (FEIA)*4, as well as JSC The Far East and Baikal Region Development Fund (FEDF)*5.
One of the activities included in "eight-point cooperation plan"*6 proposed by Japanese Prime Minister Shinzo Abe to Russian President Vladimir Putin at the Japan-Russia summit meeting in May 2016 is to "develop industries and export bases in the Far East". In light of this objective of the cooperation plan, Far East JPPV aims to promote Japanese companies' investments in the ASEZs and Free Ports in the Far East. The company will be engaged in the businesses of coordinating with Russian governmental authorities and providing advisory services to Japanese companies when they structure projects in various areas such as the manufacturing, logistics infrastructure and services sectors.
As the Russian government emphasizes the development and advancement of the Far Eastern region as a top priority in its policy, it is promoting investment into the ASEZs and Free Ports from foreign countries, including Japan. The establishment of Far East JPPV is in line with the policy of the Russian government. The company is also expected to contribute to maintaining and increasing the international competitiveness of Japanese industries by encouraging Japanese companies to make investments in the Far East region with high growth potential.
As a Japanese public financial institution, JBIC, in collaboration with Russian government agencies such as FEIA and FEDF, will support Japanese companies in starting their businesses in Russia and contribute to further deepening and expansion of economic relations between Japan and Russia.
JBIC signed a joint venture formation and corporate agreement regarding the formation of Far East JPPV on April 27, 2017. For details, please refer to the press release issued on April 28, 2017.
This is a bilateral economic cooperation plan between Japan and Russia, aimed at: (1) extending healthy life expectancies, (2) developing comfortable and clean cities easy to reside and live in, (3) fundamentally expansion medium-sized and small companies exchange and cooperation, (4) energy, (5) promoting industrial diversification and enhancing productivity in Russia, (6) developing industries and export bases in the Far East, (7) cooperation on cutting-edge technologies and (8) fundamentally expansion of people-to-people interaction.