Projects Supported by the FEDF Top the Ranking of the Best-Performing Projects Compiled by the Russian Academy of Sciences

Every other Far Eastern project included by the experts of the Russian Academy of Sciences and Russian Foreign Trade Academy of the Ministry for Economic Development of the Russian Federation in the ranking of the best-performing projects for their multiplier effect on area development is supported by the Far East and Arctic Region Development Fund (FEDF, affiliated with VEB.RF).

In particular, TOP-10 of the ranking includes such projects as construction of Inaglinsky Mining and Processing Plant in the Republic of Sakha (Yakutia) (Rank 1), Sakhalinskaya GRES-2 (Rank 3), Nakhodka Fertilizer Plant (Rank 6), Malmyzh field mining and processing plant in the Khabarovsk Territory (Rank 7), and new passenger terminal in the Khabarovsk Airport (Rank 10).

All the projects listed above are supported by the Far East Development Fund and are supposed to ensure a total GRP growth of more than RUB 643 bln and a tax revenue growth of RUB 37.3 bln for the regions’ budget through 2028. The Fund provided their initiators with soft loans worth of RUB 24.5 bln, which made it possible to raise about RUB 425 bln in private investments (equity and bank financing) for the projects.

When compiling the ranking, the experts of the Far-Eastern Division of the Russian Academy of Sciences used an integrated index that takes the entire list of diverse features of each project into account. The survey accounted for the contribution of the project in the GRP, total expected tax revenue, number of jobs to be created, contribution to infrastructure development, and other parameters.

“The bulk of infrastructural and industrial projects in our investment portfolio are integrated projects. They have been initiated by the industry powerhouses, ensure guaranteed payback, and have a maximum multiplier effect on the Far Eastern economy. The investments made by the Fund in its capacity of a public development institution both provide an important financial leverage at the start-up stage and make it possible for our partners to attract additional blended financing on favorable terms, including from our shareholder VEB.RF, major Russian bank syndicates, and foreign investors”, said Alexei Chekunkov, CEO of the FEDF.

“Apart from the strong effects expected from their implementation, the leadership of the projects mentioned above is due to the fact that they address very important problems both at the regional and at the federal level. Regional investment projects implemented in the Far Eastern Federal District represent a viable tool to accomplish the national priority goals and have a visible positive effect on the social and economic development of the areas”, mentioned the authors of the ranking in the report titled Implementation of Investment Projects with a Multiplier Effect in the Regions of the Far East published on the official website of the Institute for Regional Studies.

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