Japanese Investors Presented With Unique Conditions in Russian Far East

Russian Ambassador to Japan Evgeny Afanasiev said that Russia has created unique conditions for Japanese investors in the Far East.

TOKYO (Sputnik) – Russia has created unique conditions for Japanese investors in the Far East, amid steady interest expressed by Japanese companies in Russian projects, Russian Ambassador to Japan Evgeny Afanasiev said at an investment conference in Tokyo.

"We are offering leading Japanese companies substantial tax breaks, cover the costs of infrastructure organization, including road access and water supplies, and file all the necessary documents," Afanasiev said on Friday.

According to the Russian ambassador, the development of the Far East and Siberia is of foremost importance to Russia and the unique conditions that Japanese investors can benefit from in the regions also apply to Russian investors.

Despite a reduction in mutual trade turnover, as compared to a record level of $35 billion in 2013-2014, Japanese investors maintain strong interest in Russia, Afanasiev stressed.

"In the first six months [of 2015] the inflow of Japanese capital amounted to $317 million, which is higher than the 2014 figures," the ambassador said, emphasizing that "the interest that Japanese investors express toward Russia is not decreasing, major Japanese businesses are not leaving Russia, but, on the contrary, are set on finding new mutually beneficial projects."

Japan followed the West in introducing sanctions against Russia over Moscow's alleged involvement in the Ukrainian crisis. Japan restricted the operation of several Russian banks and suspended work on several bilateral agreements.

Afanasiev claimed that despite the sanctions issue, the potential of Russia-Japan cooperation is great and bilateral relations are becoming more dynamic.

"Our goal right now is to intensify contacts at all levels and in all directions," the Russian ambassador said.

Speaking at the investment conference in Tokyo on Friday, Head of Moscow's Department for Foreign Economic Activity and International Relations Sergei Cheryomin said that there are over 360 Japanese companies working in Moscow.

According to Cheryomin, Japanese companies are in the sixth place in terms of foreign trade turnover with Moscow enterprises. Japanese businesses are particularly interested in investing in infrastructure development in the Russian capital.