USD 64.3455

+0.09

EUR 71.0503

+0.2

BRENT 59.89

+59.89

AI-92 42.27

+0.11

AI-95 46.03

+0.1

AI-98 51.83

+0.01

Diesel 46.13

-0.02

80

On November 23 the Governor of Sakhalin region Igor Farkhutdinov has answered questions of the Information Agency Neftegaz.RU

In general we have finished the third quarter well enough. Comparing to our neighbour's parameters, the Sakhalin development result is one of the best. The volume of industrial production for 9 months has made 114 % in comparison with a level of the last year, which is the highest parameter in region, and it is perhaps only higher in Chukotsky autonomous region. It is difficult to tell something concrete about the Gross Regional Product - as this parameter is calculated only by results of one year.

Which parameters of economic and social development were achieved to the end of the third quarter 2001 in Sakhalin area?
I.Farkhutdinov: In general we have finished the third quarter well enough. Comparing to our neighbour's parameters, the Sakhalin development result is one of the best. The volume of industrial production for 9 months has made 114 % in comparison with a level of the last year, which is the highest parameter in region, and it is perhaps only higher in Chukotsky autonomous region. It is difficult to tell something concrete about the Gross Regional Product - as this parameter is calculated only by results of one year. But we think, that the GRP is higher than a level of the last year. Certainly, in region there is an economic and social development. Within 9 months in comparison with the similar period of the last year, the investment in a fixed capital made 118 %, production of an agriculture - 136 %, transport services - 128 %, communication services- 111 %, volume of retail trade - 125 %. Unfortunately, the accommodation putting into operation is not on the best level, volume of contract works is lower than a level of the last year. The foreign trade turnover is 80 % to a level of the last year; it has a bit decreased. Nevertheless it is higher, than as a whole in Russia and the Far East. With this parameter we overtake practically all neighbours. It is natural, because we are the export - focused area and more than 40 % of industrial export in Russia belongs to Sakhalin.
The level of the registered unemployment was reduced -2% less. There used to be the time when the Sakhalin area headed the sad list of regions with high unemployment rate!
Real population income has grown in comparison with the similar period of the last year (111%). All set forth above figures give the basis to consider, that social and economic development of the Sakhalin area passes up to the mark and favorably differs comparing to our neighbours. The growth of parameters of the mainstream: petroleum industry, coal mining, fishing industry is felt in the region. The timber industry complex is unfortunately only marking the time today. But we make efforts to develop it also dynamically.
Could you please tell us more detailed, what is project "SAKHALIN"? All Russians, certainly, have heard something about it, but the information, which appears in media, covers only current development of these projects …
I.Farkhutdinov: The history of "Sakhalin" projects began long time ago. More then 10 years ago tenders on development of some deposits of the Sakhalin shelf (on special terms) were declared. Competitions were won by consortia which then have developed feasibility reports over "Sakhalin - 1" and over "Sakhalin - 2".
Then the governmental commission on preparation and agreements signing production-sharing agreement has started to work. The basic difference of oil-and-gas projects of "Sakhalin - 1" and "Sakhalin - 2" is that our projects are realized on essentially new economic basis on conditions of the unit of production. Thus the part of taxes is replaced with section of production. That is all the difference, nothing more. Many deposits in Russia basically develop in the usual tax mode; we apply the special tax mode named section of production. It is necessary to speak about this special tax mode cautiously, especially to those who do not understand the mechanism of tax gathering. You see how it is accepted? If someone does not understand something, he starts to criticize at once, to tell, that such special tax mode is strongly favourable to foreigners and for Sakhalin. Yes, it is favourable to Sakhalin! If it was not favourable to Sakhalin, I would not be the governor. A project of "Sakhalin" problem is as follows. One project was signed in 1994, the second - in 1995, i.e. before acceptance of the base law about the law was accepted in December 1995, and signed by the President of the Russian Federation in January 1996. Therefore after these two first projects no new project, no agreements were signed any more! It is interesting; that the State Duma has made the list of 28 deposits which development is possible on conditions of the unit of production.
Projects of "Sakhalin - 1" and "Sakhalin - 2" are pioneer projects. There are lots of opinions, that the Russian side could sign agreements on more favourable conditions. But, and if we ponder, could it?
The beginning of 90th, disorder, no investments. Nobody pronounce the word "investment", everyone thinks how to survive. Therefore, taking into account economic conditions of that time, it was possible to accept such agreements, thus still to involve foreign investors in the Russian economy. Today conditions have changed. The petroleum branch partially finances itself. The State became stronger. The State began to form the federal budget, pays external debts, and those years it only borrowed, borrowed and borrowed! Today everyone says, that it would be better to sign agreement on more favourable conditions for Russia. I offer to sign the project of "Sakhalin - 3". 7 years ago the decision included in the so-called project of "Sakhalin - 3", could be developed on conditions of the unit of production back was accepted. And 7 years this agreement remains not signed. Investors disagree to work on the conditions offered by the state, as they are not so flexible, and sometimes "enslaving". Clear, that while both sides will not come to the content, the project " Sakhalin - 3 " to work will not start! We are working on increasing feedback on existing projects now. We have good relations with German Greff, which are based on the joint teamwork with the Ministry of Economics and Trade of RF. It's known, that today the Ministry of Economics and Trade of Russia is a profile organization from the government on realization of the oil-and-gas projects sold on production sharing conditions. Recently German Gref came to Sakhalin, has visited a complex "VITYAZ" where there is an oil extraction. Therefore, when on November 8 German Gref made a speech at the government session, he spoke realizing all our problems! I think, that developing existing projects we have made some mistakes! But we have got invaluable experience and made what others still can'trealize.
For example, project "Samotlor" is also included in the list of production sharing agreement, but it is not signed yet.
The advanced transport network is the main condition of industrial development. What is current condition of a transport network of SAKHALIN? What are perspective projects on development of an infrastructure, including highways and bridges, aviation, water and railway transportation?
Correct, a transport network is the main condition of industrial development. I would say, that the transport infrastructure is a direct duty of the state. The state, in my opinion, has two duties: construction of a sufficient transport infrastructure and a reliable, I emphasize, not ruining, electric power industry. Everything else can do others.
What is the transport infrastructure of Sakhalin?
I.Farkhutdinov: Taking into account that Sakhalin consists of 59 islands, and Sakhalin is only largest of them we shall start with air transport. There are 7 airports in Sakhalin area: 5 on Sakhalin and 2 on Kuriles. The status "international" has only one - the airport in Yuzhno-Sakhalinsk. Air transportations are carried out only by 4 airlines. Planes make local flights, within the Russian regions, to Japan and Korea. It is natural, that islands mean also the sea correspondence. In the Sakhalin area there are 8 trading ports, 4 fish ports and big amount of ports - items, ports - ladles. All these constructions also represent a sea infrastructure of region. We have 4 sea companies, three of them are small, and one is the solid company, which is carrying out works on a ferry Sakhalin - Continent, this is "The Sakhalin Sea Shipping Company".
The railway transportation. The Sakhalin railway is the smallest one of 17 roads of Russia. It operates within the framework of the Sakhalin area; the ferry is not connected to a transport network of continent. Extent of the Sakhalin iron road makes about 1000 km. The main road includes 291 bridges. As well as on a ferry, it is transported about 2 million cargo on the Sakhalin railway per one year, though opportunities are much wider.
It is natural, that motor transport in the Sakhalin area occupies the important place. We are not the European part of Russia. We only have 112 km of federal roads built together with federal services. All other our roads are regional - more than 2000 km (local 2500 km). On these roads there are almost 400 bridges over Sakhalin and Kuriles. All federal roads are asphalted, they are, first of all, roads between two ports: Korsakov - Yuzhno-Sakhalinsk and Holmsk - Yuzhno-Sakhalinsk. 1700 km of regional roads are also asphalted. Other roads have an earth covering.
Pipeline transport. We deliver oil and gas from Sakhalin to continent. To Komsomol'sk-on-Amur we deliver gas to Habarovskenergo JSC (about 1 billion cu m a year) and oil (more than 1 million ton a year).
Transport Network Development Problems
As you can see, we have all existing in Russia types of transport. But it does not mean that the transport network corresponds to a standard of living and provides safe existence. Practically all airports require a very serious reconstruction; there are earth- takeoff-lines, which is an anachronism. There are many problems with replacement of an existing rolling stock, ferries etc. Therefore for us Transport Network Development Problem is extreme important. Without solving this problem, we cannot move forward. Also it is important to finish reconstruction of a take-off line of the main airport of Yuzhno-Sakhalinsk . It requires complete overhaul. Regional Budget spent 9 million dollars and we have finished its length up to 3400 m. (used to be 2700 m). Yes, we have overcome a short line problem, but we have to repair those old 2700 meters too! And major overhaul costs million dollars, since a takeoff line is difficult engineering construction. The Sakhalin trading ports require radical reconstruction. Unfortunately, during the Soviet authority and now they have not endured any improvements. If we want to send on export coal it is necessary to have a vessel worth 25-35 thousand tons, and the maximal weight of our vessel is 10 thousand tons. There are no depths, there are no berthing lines up to 300 meters in length where could be moored similar court. As consequence of these problems there is impossibility of competition, restraint of industrial development and integration.
Tell more in detail about construction of overland transition SAHALIN-EURASIA?
I.Farkhutdinov: The administration of the Sakhalin area supports the civil-engineering design of overland transitions "Sakhalin - Eurasia" and the railway bridge. October 4 at session of the government of the Russian Federation the question on construction of the bridge was examined. Construction of overland transition was recognized as a very important and necessary. And in spite of the fact that many people say about prematurely of construction, the President of the Russian Federation has expressed necessity of the project. I think, that construction of an infrastructure does not happen premature. First goes infrastructure, then everything else. How Roosevelt during the great depression, great crisis of 30th years lifted the economy of the USA? He began full scales construction of good roads. It is also necessary to repeat it here. If the States might be connected by means of roads, bridges can connect the Sakhalin area too. In due time Stalin made a decision on the beginning of construction of bridge " Sakhalin - Continent ". But after 1953 construction stopped. Why that happened? At that time construction of the bridge between Sakhalin and continent was dictated more by the military purposes. Today construction pursues two purposes. At first, to help the most remote regions to enter into the uniform economic space. And second, by prolongation of the trans-Siberian highway up to Sakhalin to create a new world transport corridor for cargo transportation from the European Union in Asian - Pacific economic commonwealth and back. Today freight traffics between these two economic blocks go, basically, offshore. And, if today we do not organize a new transport corridor, then China will do that.
Today China repeats experience of Russia of the end of XIX century; the trunk-railway from the east to the west through all China is being under construction with the help of a shovel, picks and wheelbarrows. Therefore Russia should hasten. Today Russia cannot be praised, that in the international division of labour we have achieved successes in the market of goods manufacture. We are obviously not leaders on the world market to supply the whole world with the goods. And to organize and render transport service is exactly what we can make! Thus we shall exchange the goods between two economic blocks not due to that we are able to do it so well. Simply the God helps us, and some also thank to the imperial government of the end of XIX century, which has constructed the Tran Siberian highway.
The SAKHALIN AREA consumes a plenty of resources made by other regions - metallurgy, petroleum mechanical engineering, the foodstuffs etc. It assumes adjustment of close contacts with various regions. What regions are the important for the Sakhalin AREA?
I.Farkhutdinov: We shall start with the foodstuffs. We completely satisfy the needs for a potato, for vegetables, eggs, and meat of a bird. The significant amount of milk and dairy products is produced on territory of the Sakhalin area. We do not grow grain at all due to he climatic specifications. Therefore we deliver a grain, huge amount of meat, sugar, vegetable oil and dairy products as sunflower oil, condensed milk and flours. Per one year we deliver approximately 50 thousand tons of flour. Yes, we have the plant, allowing us to have independent mill. But economically it is favourable to us to deliver available flour. We deliver flour from abroad and the nearest Russian regions. For example, this year more than 10 thousand tons was delivered from Altai territory, Omsk, Novosibirsk areas. We satisfy the needs for meat(70%), we made the others independently(30%). With vegetables - fruit we have less problem - we have good hothouse facilities which, I think, will develop.
The equipment. Today in territory of the Sakhalin area there are about 5 thousand super size automobiles in operation. This year we have delivered 80 more supersize automobiles, basically, Kamas. Thus we do not deliver the Russian cars at all. As you understand, there is a Japanese market here. Cheap or rather expensive, but cars are of perfect other quality. And not comparable to domestic automobiles. We traditionally deliver the petroleum equipment from petroleum regions is a Bashkiria, Tatarstan, Chuvashia. From the Russian regions we deliver a lot of the electro technical equipment. As for metallurgical branch it is difficult to become attached to one region. Practically we work with the whole Russia. Now in the Sakhalin area there is a scale construction of gas mains and oil pipelines. Therefore we deliver the big volumes of pipes. We cooperate with the Chelyabinsk area. Approximately with two tens regions of Russia (including Moscow) we have concluded agreements on cooperation in the field of economy, cultures, sciences etc. It is natural, that we cooperate and with our basic neighbours - with Seaside and Khabarovsk territories. With all other neighbours we are not connected economically. Also we have Agreements on economic cooperation with two foreign regions with Alaska (USA) and Hokkaidos (Japan). I am satisfied with last achievements. It turns out not bad with Alaska - we have similar economy and ways of development.
The SAKHALIN AREA is included into Far East federal district. What positive or negative moments for your work as the Governor were brought with the first year of President Representatives Institute functioning? How is plenipotentiary of the President Far East's Konstantin Pulikovsky district activity is reflected in work of administration of the Sakhalin area?
I.Farkhutdinov: Correct, we are Far East federal district. I shall tell, we do not have conflicts with Pulitkovsky. We normally share the power. I personally do not treat those people, which, so to say, try to show, that they are very independent. It does not make any sense live in the society and consider, that you - "center of the universe". You see, there are 89 subjects in Russia! If everyone in the confederation will pose himself the most important it already will be not federation. In the meantime we understand our rights in conformity with the constitution of the Russian Federation. Mr. Pulitkovsky is the understanding person. Thus everything in his competence, he manages quite fairly. Pulitkovsky was engaged in the analysis of the regional legislation in 2001. In my opinion, the Far East has passed all this quietly. And the Charter of our area is harmonized with the federal legislation. It is good. Thus the Representative does not try to rule the economy of the Sakhalin area, because this is my area. Certainly, if the help is required, I ask to Konstantin Borisovich. And I always meet both and understanding, and support. I hope our work will be going in the same way.
What is the role of extraction and processing of seafood for inhabitants of Sakhalin?
I think it is clear that a fishing industry of Sakhalin is one of the best in Russia; parameters show that. We get approximately 10 % of fish resources of all Russia. This year will be approximately getting 400 thousand tons of seafood. And there were times when extracted millions tons per one year! Why so? You see we can extract much more, than 400 thousand tons. The matter is that all depends on allowable fishing volumes, which the science allows to extract. Today our opportunities on extraction of seafood are 2-2,5 times bigger per one year then capacity of our courts and capacities of the enterprises. The biggest fish-breeding shop of Russia is here. From three tens fishing factories, first of all salmon, on the Far East two of ten are ours. Here we are absolute leaders. Compare: more than twenty fishing factories here, and on Kamchatka only four. On Sakhalin and Kuriles we have modern fishing factories. And we constructed them not now, and in difficult 90th years. Having constructed, reconstructed and we can be proud of them. We showed the President of Russia one of the factories, the most modern, but very decent factory. For last 5-6 years we have created full base on processing a fish and seafood and storage. Today we can catch seafood to process, freeze all caught fish up to necessary temperature and to store as long as necessary, we shall not send it on continent or abroad yet. Today the Sakhalin area has the largest and modern processing capacities at the order.
What is the role of extraction and processing of seafood for inhabitants of Sakhalin?
I.Farkhutdinov: I think it is clear that a fishing industry of Sakhalin is one of the best in Russia; parameters show that. We get approximately 10 % of fish resources of all Russia. This year will be approximately getting 400 thousand tons of seafood. And there were times when extracted millions tons per one year! Why so? You see we can extract much more, than 400 thousand tons. The matter is that all depends on allowable fishing volumes, which the science allows to extract. Today our opportunities on extraction of seafood are 2-2,5 times bigger per one year then capacity of our courts and capacities of the enterprises. The biggest fish-breeding shop of Russia is here. From three tens fishing factories, first of all salmon, on the Far East two of ten are ours. Here we are absolute leaders. Compare: more than twenty fishing factories here, and on Kamchatka only four. On Sakhalin and Kuriles we have modern fishing factories. And we constructed them not now, and in difficult 90th years. Having constructed, reconstructed and we can be proud of them. We showed the President of Russia one of the factories, the most modern, but very decent factory. For last 5-6 years we have created full base on processing a fish and seafood and storage. Today we can catch seafood to process, freeze all caught fish up to necessary temperature and to store as long as necessary, we shall not send it on continent or abroad yet. Today the Sakhalin area has the largest and modern processing capacities at the order.
Gifts of the sea, does it call budget enlargement?
I.Farkhutdinov: We sell fish and seafood both on the internal Russian market, and on external. Our production goes to France, England, Holland, Japan, Korea and Europe. We produce fillet and fish canned food of the highest quality. The last year one of our enterprises was visited by V.V.Putin. Finished goods going to the European countries were showed to Putin. As you understand to get on the market of France is not simply. It is necessary "to move" traditional suppliers and to sustain quality indicators! As a consequence- constant financial flows in treasury. In 2000 the fishing industry gave money to all budget funds 293 million rubles. And in 2001 of all for 9 months - already 307 million rubles! Naturally, the territorial budget will receive more this year, than in the past. The ton of water-biological resources (WBR) gives us the increasing tax feedback each year. For me as for the governor and the business executive, it is important not simply volume, not simply WBR tone. It is important for me that from each ton of caught fish; money flows in the budget would increase.
Which environmental problems does the region face? How the process of reduction of the centralized financing of nature protection services influence on maintenance of ecological safety of island of SAKHALINS, unique sea flora and fauna at planned scale extraction of hydro carbonic raw material on a shelf?
I.Farkhutdinov: We face all kinds of environmental problems, as well as other regions of Russia. First, we are dangerous seismological region with increased seismic activity.
It is natural danger. Second, oil is extracted in our region, it is always high risk. Today performance of requirements of ecological examination is obligatory for realization of any projects. Any project can be realized only according to requirements of ecological examination. Otherwise the project is simply not realized.
What kind of experts requires Sakhalin? How the personnel questions are solved at the enterprises of region?
I.Farkhutdinov: Experts? Yes, please. Sakhalin is a normal region where there are all branches of economy, perhaps, no defensive industry. We have six Universities, among them Sakhalin State university. I am the professor of this university, therefore I know, which experts should be taught here, and which are not. Therefore overproduction of experts does not present, but we have serious problems with preparation of some experts whom we now do not train. Once experts of all levels arrived to Sakhalin, there came also narrow experts. I am in due time have also arrived to Sakhalin for three years, but stayed much longer. I am considered, that we need to improve now preparation of experts of technical specialties. It is necessary to prepare oilmen, we don't have full program for them, only once a week. It is necessary to train fish facilities experts. Though we have college of a fish economy, but it is not enough. In other words, I emphasize we require all.
The most perspective region of Russia in your opinion?
I.Farkhutdinov: Certainly, the most perspective region is Sakhalin?
Your wishes to inhabitants of island of SAKHALINS?
I.Farkhutdinov: To live On Sakhalin is uneasy. Constant earthquakes, flooding. It is already an image of life when people get used to extreme conditions. Therefore I wish the fellow countrymen courage, stability and belief, that only we shall make all for own prosperity!

Source : Neftegaz.RU