RIA “Novosti”: “Beijing Program” – a sphere of common interests of the RF and PRC (2015-05-19)

According to RIA “Novosti”, “grain, milk and rabbits” – a sphere of common interests of Russia and China touches not only oil-gas and transport sector but also agriculture: Chinese companies intend to invest money in construction of the grain terminal, diary cluster and meat companies.

The President of the RF Vladimir Putin carried on negotiations with PRC Chairman Xi Jinping on 8th of May in Moscow. They signed near 40 joint documents. A Chinese leader visited Russian capital and took part in the ceremony devoted to May 9 VE Day.

In September 2014 there was the first conference of the Agricultural Sub-Commission in Beijing. Parties agreed on positive influence of strengthening of investment climate in agriculture and Far East development.

Co-projects in agriculture are implemented in Omsk, Tomsk, Voronezh, Zabaykalsky Krai, Primorkski Krai, Amur Regions and Buryatia.

Omsk and Tomsk regions

So called “Beijing Program” is implemented in the Omsk region (refer to http://barley-malt.ru/?cat=106&lang=en), approved in 2012. It is about creation of the largest barley and other crops production system for import to PRC.

Malting barley varieties, its regions of production, effective agro technologies, supply schemes etc will be gone thought within the program implementation.

China is amongst the largest beer producers but it is lack of malting barley. For this purpose, it is planning to implement the project in Priirtishye.

Besides, dairy cluster is planning to be created, together with China financial sector and producers in the Tomsk region. The first stage of the investment project is construction of the dairy farm for a thousand head.

Buryatia

It bears noting that several joint investment projects with China are implemented in the Republic. At the end of April 2015, authorities of Buryatia and representatives of Beijing International Trade Company “Jin Bei Yuan” signed an agreement for construction of production and logistics center for drawing and filling of Baikal juvenile water, involving near 1 billion rub. of investments.

The project provides construction of the filling plant with capacity of 2,5 million tons per year. The staff of the plant will be local citizens (approximately 70%); near 500 workplaces. Budget revenues are planning to be from 13 million rub. in 2017 to 45 million in 2020 annually.

Besides, it is planning to open a plant for crops cultivation, co-firm for separation of bull’s semen. Initiators of the project are Russian company “Buyan” and China company “Mennu”. According to this complex technology, you can sort material and use it for reproduction of dairy herd, consisting of cows or meat livestock.

“The project is in the implementation stage”, there are some proposals of LLC “Buyan” to China company” – informed Head of Investment Department of RIA “Novosti and Chief International Officer Damdin Namsarayev. He noted that by 2020 they are planning to reach 5 thousand head of breeding livestock.

Another project – a joint company for cattle breeding together with “Wanfu Shenke”. The project is under development.

Transbaikal

Near-border Russian-Chinese railhead in the transition point “Zabaikalsk-Manchuria” is panning to be constructed in Transbaikal. It is a part of the project complex for export of Siberian grain to PRC. There will be special transition quarantine elevators for grain transshipment near Inner Mongolia Autonomous Region. Transshipment volume will be 8 mln.t./year, opportunity for one-time storage of 80 thousand tons.

The second stage of project implementation is creation of line storage elevators for acceptance, processing, storing and shipment of grain by volume of 5 million tons.

Governor Spokeswoman Elena Fedorova told that, thanks to this project, they will be able to develop a prospective grain logistic and trade market, lift limits from export logistics, construct infrastructure for Siberian export grain to PRC and Asian-Oceanian countries and reduce logistic expenses.

“The project has unique competitive advantages as compared to Far East Port Terminals. Offered terminal is closer to 2 km. than others and there is no several thousand mil sea arm,” Fedorova noted.  

Voronezh region

In March 2013, Voronezh Company “Russian Rabbit” and China Company “Junhen Junxin” signed an agreement for construction of rabbit meat production with capacity up to 5 thousand tons per year. Investment volume is considered to be 100 million dollars.

Russian share was supposed to be 51% and China – 49%. It was assumed that the first part of the plant would start operating at the end of 2014 but at present the plant is not working. Last autumn, Chinese representatives asked Russia to help in settlement of all questions, in particular: land tenure, work permit, customs procedure and taxation.  

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