MOSCOW, December 22. /TASS/. Investments in the Komi Region's economy will grow in the coming year by 13.5% to 134 billion rubles ($1.5 billion). The region plans to organize an advance-development territory with the investments similar to those available to the Russian Federation Arctic Zone's business residents, the region's Governor Vladimir Uiba said in an interview with TASS at the Russia EXPO international forum.

"[We have] 118 billion rubles ($1.3 billion) in investments in 2023 [which is comparable with the rate of 2022]," he said. "For our region, which is not big, this is a very big and good base, and next year we plan to reach 134 billion rubles ($1.5 billion), and we believe the amount would be bigger - this is clear from the current investment portfolio."

The region has offered to investors the conditions, where they come and see they are invited to a comfortable business space. In compliance with recommendations from the national Ministry of Economic Development and the Ministry of Industry and Trade, the region guarantees to investors an absolute transparency in the processes to register enterprises, to receive land plots, and at all the consequent stages, he continued.

"By the end of 2024 or in early 2025 we will organize an advance-development territory," the governor said. "Even if a business is not registered as the Arctic Zone's resident, it, by becoming a resident of the advance-development territory, will enjoy practically the same incentives," he added. "The advance-development territory in the region will begin working in late 2024."

About projects

The governor mentioned a ferroalloy and calcium carbide plant, which is due to be commissioned in early 2024 in the circumpolar city of Inta. The company undertakes the function of a city-forming enterprise. Inta used to be a company city until 2018, when the last coal mine was closed there. Besides, the plant's products will replace ferroalloys and calcium carbide supplies from China and Kazakhstan. The plant in Inta will satisfy about 30% of the country's demand in ferroalloys and calcium carbide. The investor uses a new scientific technology to produce ferroalloys and calcium carbide, and thus the products will be cheaper and the price will be much more attractive. The plant will produce more than 9,000 tons of calcium carbide per year. At the initial stage, 70 jobs will be created. Investments are planned at up to 1 billion rubles ($10.8 million).

Komi's one of the leaders in timber processing - the Luzales Company - plans to expand its deep processing capacity and to create additionally up to 600 jobs in 2024-2025. The company has acquired the Prigorodny agro-industrial complex and begins building there a huge livestock complex for more than 2,000 cattle, offering 200 jobs. The Pechora Sever Les Company will invest 2 billion rubles ($21.7 million) by 2027 in a completely waste-free timber processing plant.

Another investor designs a modern plant to produce potato starch, an important component in the pulp and paper-making process. Presently, starch is imported. "We have huge land areas to grow potatoes, and nearby would be a plant to process it into starch. A very short logistics leverage, and thus, the product will have a very high marginal cost," the governor said.

He also mentioned a global project to develop the Pyzhemsky titanium and quartz deposit, which contains half of Russia's titanium reserves. "Rustitan (The Russian Titanium Resources Company) will launch it by 2029. The total investments will exceed 300 billion rubles ($3.25 billion). Up to 5,000 jobs", he said.

The International RUSSIA EXPO is running from November 4, 2023 to April 12, 2024 at Moscow’s VDNKh Exhibition Center. Its goal is to showcase the country’s major achievements in various sectors of the economy. Russia’s all 89 regions have their exhibition stands. TASS is the forum’s general information agency.