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Deloitte participated in the Eastern Economic Forum 2018

Group photo

From left to right:
Sergey Lavsky, Head of Deloitte office at Vladivistok
Jacques Strydom, Managing Partner, Audit & Assurance, Deloitte CIS
David Cruickshank, Global Chairman, DTTL
Ian Colebourne, Chief Executive Officer, Deloitte CIS 
Elena Rakhlenko, Press Office , Deloitte CIS
Jung Hee Lee, CEO, Country Managing Partner, Deloitte Korea
J
ae Il Lee, Adviser, Clients & Industries, Deloitte Korea

 

Ian Colebourne, Chief Executive Officer, Deloitte CIS

Elena Rakhlenko, press office, Deloitte CIS

Jung Hee Lee, CEO, Country Managing Partner, Deloitte Korea

Jae Il Lee, Adviser, Clients&Industries, Deloitte Korea

Ian Colebourne, Chief Executive Officer, Deloitte CIS

Elena Rakhlenko, press office, Deloitte CIS

Jung Hee Lee, CEO, Country Managing Partner, Deloitte Korea

Jae Il Lee, Adviser, Clients&Industries, Deloitte Korea

Ian Colebourne, Chief Executive Officer, Deloitte CIS

Elena Rakhlenko, press office, Deloitte CIS

Jung Hee Lee, CEO, Country Managing Partner, Deloitte Korea

Jae Il Lee, Adviser, Clients&Industries, Deloitte Korea

Ian Colebourne, Chief Executive Officer, Deloitte CIS

Elena Rakhlenko, press office, Deloitte CIS

Jung Hee Lee, CEO, Country Managing Partner, Deloitte Korea

Jae Il Lee, Adviser, Clients&Industries, Deloitte Korea

Vladivostok in Russian literally means ruling the East. If not literally ruling the East, Vladivostok outshines other cities in the Russian Far East with its stellar economic performance . Besides an investment hotspot, the Free Port of Vladivostok established in 2015 has strengthened trading relations with its neighbouring countries. In 2017, total cargo volume handled by the port reached unexpected 7.5 million tons, a year-on-year increase of 33%, marking the busiest year ever in the Port’s 120-year history. On 11-13 September, Deloitte participated for the third time in Eastern Economic Forum (EEF) with the largest delegation ever. The forum this year aimed at continuing the strong momentum of trade growth and attracting more investment into the Far East. President Xi also attended the forum, delivering the message of building closer bilateral relationships between China and Russia.

The EEF, set up by Russian President Vladimir Putin in 2015, is a yearly event held in Vladivostok. The Forum played a major role in Russia's Far East development policies, engaging several neighbouring countries and offering vast opportunities for Asian-Pacific and European regions. In 2017, the Forum attracted more than 6000 participants from over 60 countries, resulting in 217 agreements worth RUB 2,496 billion.

The Forum, established on the principle of reciprocity, acts as a catalyst for maintaining multilateral business relationships, most notably between Russia and China, Japan, South Korea. China has been Russia's largest trading partner for eight consecutive years. Bilateral trade volume in 2017 reached US$84 billion, up by 20.8%. Growth momentum will remain strong in 2018 with trade volume expected to exceed US$100 billion. In terms of Far Eastern Federal District, China was the top source of import and second largest export destination in 2016, accounting for one fourth of the district's trading volume. Over 30 newly developed tourist lines have provided ample opportunities for both sides. And as the protectionism permeates around the globe, it is even more imperative to strengthen economic relationship with those supporting free trade and cross-border investment like Russia.

"We also see opportunities for enhanced cooperation between the two countries in implementing infrastructural projects. We hope that the construction of the Amur River international border crossing in the Jewish Autonomous Region will be completed. Russia and China also plan to implement initiatives to build the Eurasian Land Bridge,” Alexander Krylov, Deloitte Russia/CIS Chinese Services Group Director noted.

Vladivostok has not only been a hotspot for Chinese investors, but also for international capitals. The Japanese Project Promotion Vehicle launched in Vladivostok this April and the Russian-Japanese Investment Platform established in 2011 both aimed at developing the Russian Far East with the help of Japanese capitals. Also, Russia and South Korea has enjoyed a tight economic tie with Russian-Korean Investment Platform set up in 2013 to facilitate cross-border investment. Shortly after President Moon Jae-in was elected, he made a presence on the first EEF, which well displayed the importance he attached to Russia-Korea cooperation.

As for European investors, Deloitte believes that they should consider high-potential areas such as tourism and hospitality, which have been gaining considerable momentum in recent years. "According to the Ministry for the Development of the Russian Far East, the region has new European investors, but their projects are small. A high level of interest is demonstrated by businessmen from Austria, Germany and Belgium, though practically speaking, it does not go beyond visits of various business delegations,” Sergey Lavsky, Head of the Vladivostok office at Deloitte CIS stated. Therefore, Asian investors are more active in Far-East region.

Deloitte has an extensive network serving clients who wish to step up their presence in Russia, Kazakhstan, Belarus etc. Deloitte CIS has been present in the Russian market for more than 25 years, operating via offices in Moscow, Novosibirsk, St. Petersburg, Yuzhno-Sakhalinsk, Ufa and Yekaterinburg and employing more than 2,000 people. On 19 July 2018, Deloitte CIS opened an office in Vladivostok, its seventh in Russia. Ian Colebourne, Deloitte CIS CEO noted that: “Deloitte CIS’ newest location exemplifies our dedication to local growth in a strategically important region and the advancement of commercial ties between Russia and Asia Pacific. This important investment will enable us to make an impact that matters by developing talent and providing exceptional professional services that our clients need to realize their growth ambitions.”

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