Russia - Japan: Tatarstan as a point of entry

8 August 2016, Monday

The relations between Russia and Japan last for 300 years. Their beginning takes place since the 17th century when Russia, adding most part of Siberia came out to coast of the Sea of Okhotsk. There, subsequently, the first meeting between Russians and one of the shipwrecked Japanese took place, his name was Dembey. In other words, approximately in 1701 almost by chance Russia learned about existence of such country as Japan.

The active phase of trade and economic cooperation between two countries started countdown in December 9, 1957. At a meeting which took place in Tokyo, the Soviet-Japanese trade agreement was signed and in 1958 a regular cargo steamship service between Nakhodka and Japan was established. In October 1973, the first Soviet-Japan Summit was held in Moscow. As a result of active cooperation in 1979 the trade turnover between USSR and Japan amounted in 4.1 billion dollars. For comparison between Japan and China, the latter being the largest partner of Russia today, the same year turnover constituted 6,7 billion dollars.

Presently Japanese-Russian relations show positive dynamics due to frequent political dialogue. According to Rosstat, 86,4% of the Japanese cumulative investments in economy of Russia are capital investments in production and oil and gas refining, the others are in trade (2%), logging and processing of wood (3%), production of motor transport and spare parts (2%). The majority of the Japanese investments in 2009 (83%) are concentrated in Sakhalin.

Cooperation between Japanese companies "Mitsui" and "Mitsubishi" with Gazprom and English-Dutch "Royal Dutch Shell" in the Sakhalin-II project on development of Lunskoe and Piltun-Astokhskoe fields in the Sea of Okhotskshould should be noted among joint economic projects. In May, 2011 the Russian company "Rosneft" informed on intention to create two joint Japanese-Russian enterprises. One of them for development of Magadan-1, Magadan-2 and Magadan-3 areas on shelf of the Sea of Okhotsk, and the second for conduction of geological exploration in Eastern Siberia. In June, 2011 it became known that Russia offered Japan joint development of oil and gas fields located near the Kuril Islands.

Similar proposals were made both in Soviet and in Post-Soviet time. Japan treated them very cool, because their acceptance would mean "de facto" recognition of Kuriles as the Russian ones. The last similar proposal from our side was made during the recent visit of the Japanese prime minister to Russia and he met it with understanding, the Japanese partners allowed an opportunity to consider the Russian offer on joint economical activity. The break in 50 year-old negotiations blew up world information space, declaring the "new approach" on solving the "ubiquitous nauseam" problem of "northern islands".

Thus, during constructive dialogue in June this year the two sides agreed to move toward to the peace treaty by "new approach" through development of economic cooperation. Without shelving, in September in Vladivostok Japanese representatives are expected to participate in the East Economic Forum, during which investment opportunities in the Far East will be discussed. The plan of eight points of cooperation is prepared including the field of construction of infrastructure in the Far East, nuclear power and simplification of visa regime. Dialogue on a possibility of conducting joint agricultural activity in conflictual territories and creation of the special economic zones providing participation of the Japanese companies in economic and investment spheres is conducted. Mr. Vladimir Putin's imminent visit to Japan is also planned, expected before the end of the year, but the date has not yet been agreed. Both sides have very serious mindset, it is possible to say that they are trying to force events in every possible way, noting that joint activity of the states will be able to settle their issues and to sign the peace treaty.

On a ground of the changing climate in relations of two countries, Tatarstan has been actively developing cooperation with Japan. So, in 2007 the Agreement on the beginning of works on construction in Tatarstan of the second complex on production of ammonia, methanol and the granulated carbamide between JSC Ammony and the Japanese companies "Mitsubishi Heavy Industries" and "Sojitz Corporation" was signed. Two years earlier in 2005 the cooperation agreement between the Government of the Republic of Tatarstan and the Fujitsu ServicesLimited company was concluded. Among joint projects – cooperation of "KAMAZ" and "Mitsubishi FUSO" on production of commercial vehicles with volume of production 4100 vehicles per year; construction of a training center of automatic systems and CNC machine tools by the Japanese company «FANUC» in Naberezhnye Chelny; together with the company «Yokogawa Electric Corporation» carried out the work on the industrial automation of the largest enterprises of the republic. Also, Tatarstan Investment Development Agency is working on the issue of cooperation with the Japan Bank for International Cooperation «JBIC» in Japan. Commodity turnover of the republic and land of the rising sun reached 111 million dollars in 2015, having increased in comparison with previous year by 4,5%, and in 1 quarter 2016 already amounted in 39,8 million dollars.

5 joint visits at the highest level were performed in the last 2 years between Tatarstan and Japan. Among them it is worth noting the participation in the VI Russian-Japanese investment forum in 2014, a meeting between the President of the Republic of Tatarstan and the Prime minister adviser of Japan in 2015, participation of delegation of Tatarstan in the annual international forum "Science and Technologies in Society" in Kyoto. In February, 2016 the Business mission to Japan with the President Rustam Minnikhanov took place accompanied by the head of investment development agency of Tatarstan Ms. Talia Minullina. During the last visit, the delegation visited the factory of the Japanese company «Fanuc» on production of the equipment for industrial automation where she participated in a meeting with the head of Ministry of industry and trade of Russia and the president of the company. The meeting with the chairman of the board of directors of the company" Mitsubishi Heavy Industries" and the deputy head of the Sojitz Corporatio company was held.

From 7 to 9 August 2016 a business mission of representatives of 24 leading Japanese companies, the Government of Japan and the Japanese Embassy in the Russian Federation, with the participation of the Minister of Economic Department and Advisor to the Prime Minister of Japan, the Republic of Tatarstan will take place. The visit is organized by Tatarstan Investment Development Agency. The rich program is planned for delegation of the top officials and the highest business community of Japan including meetings with the President Rustam Minikhanov, bilateral meetings between the companies of the republic and branch ministries. An important milestone in the visit of high-ranking delegation from Japan is Business Forum: "Tatarstan - Japan: Investment Future" on August 9 at 11 am which will take place in the hall "Pushkin", "Corston" business center. The presentations of IT park, Alabuga and Innopolis Special economic zones are planned. The visit schedule includes also the cultural program with excursions to the island-city "Sviyazhsk", "Kazan" Family Center, “Kazan Arena” stadium, the Kazan subway along a route the Sukonnaya Sloboda – Kremlin, Kazan State Medical and Federal Universities.

“Japanese are difficult negotiators. They have unique culture, - Ms. Taliya Minullina pointed out. - Japan which economy is third largest in the world expects raising of GDP in 2020 up to 5,7 trillion dollars, at the present volume in 4,1 billion dollars. It is an advanced country with the progressive sphere of high technologies, and also transport mechanical engineering and machine-tool construction, robotics. We have prepared an interesting program in Tatarstan for them. Some members of delegation are already partners of the republic in projects on petrochemistry, machine-building and engineering. Those, who visit Tatarstan for the first time will be pleasantly surprised of quantity of the perspective directions of interaction. The Japanese investments are technologies and quality".

Join us on our social networks:

  

SUBSCRIBE FOR NEWS
All content on this site is licensed under
Creative Commons Attribution 4.0 International