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Primorsky Krai

Geographical location. Primorsky Krai lies in the south of the Far East, in the south-eastern part of the Russian Federation. Its northern neighbor is Khabarovsk Krai, the western neighbour is the People’s Republic of China, the south-western neighbor is the Democratic People’s Republic of Korea. The region is washed by the Japanese Sea from the south and the east. The border stretches 3 thous. km, of them about 1.5 thous. km goes along the sea. The total area of the region is 165.9 thous. sq. km.

Federal district: Far Eastern

Administrative centerVladivostok (622.5 thous. people), distance to Moscow – 9.3 thous. km

Major cities (figures of 2012): Ussuriysk (187.9 thous. people), Nakhodka (159.9 thous. people), Artyom (112.3 thous. people), Arsenyev (55.8 thous. people).

Population (2013): 1.95 mln people

Population density: 11.83 people per sq km (2013)

Gross regional product (2011 estimate): RUR 500.4 bln (USD 16.7 bln)

Per capita gross regional product (2011 estimate): RUR 270 thous. (USD 9 thous.)

Natural resources. Most part of the territory is occupied with the mountains of Sikhote-Alin (up to 1 855 m high), and the Ussuriysk and Prikhankayskaya plains lying in the south-west. The main river of the region is the Ussuri (flowing from the fall of the left tributary of the Sungacha River – along the Chinese border). Around 70% of the territory belonging to Primorsky Krai is covered with Manchu coniferous and mingled forests.

A number of unique large deposits of mineral resources have been discovered in the region, which has become the basis for the foundation of the Far East largest mining complex. Almost 100 coal deposits have been discovered in the region with the total forecasted reserves reaching 2.4 bln tons. The chief coal deposits are Bikinskoye, Pavlovskoye, Shkotovskoye, Artyomovskoye (brown coal field), Partizanskoye and Razdolnenskoye (coal field).

Primorsky Krai is rich in non-ferrous metals – almost 30 tin and 15 complex ores deposits (containing zinc, lead, copper, silver, bismuth, indium and rare-earth metals) are known, lying primarily in Kavalerovsky, Dalnegorsky and Krasnoarmeysky districts.

The largest in Russia opencast boron deposit (datolitic, boron-containing ores) lying at the territory around the town of Dalnegorsk, secures operation of the reprocessors at least for the 50 year period.

Construction materials are quarried in the region as well. The subsurface mineral springs and sources of sea muds have become the basis for foundation of the sanatory-healing complexes, including the largest in Russia Shmakovsky complex. Small quantity of the gold placer is mined for in the region (in general, over 50 gold deposits are known across the region), zeolites, bentonite clay and other mineral resources.

Commercial fields of both mineral resources conventional for the region and the new ones, to become the basis for foundation of large mining enterprises, can be discovered in Primorsky Krai. Gold and silver discovering perspectives are the most favourable ones; the following mineral resources have been discovered recently – antimony, mercury, manganese, baryte, kaolins and high quality quartz rock for glass production, lacked and highly demanded in Russia.

The recent years have proved perspectives to discover deposits of such precious stones as diamonds, corunds, sapphires (Vostretsovsky gold-field), opals (Raduzhnoye deposit within the Alchansky volcano-structure).

In 1999–2000 people refreshed their views of oil and gas prospects, the forecasted estimate of which balances making 10–150 mln tons. The developed infrastructure of the region and its far location from the oil producing regions of the country let us suppose that even small oil-field and gas-field development will be economically feasible.

The region possesses one of the world largest reserves of germanium, but the discovered deposits aren’t developed. Development of vermiculite, graphite, talc and some other mineral resources deposits can be launched in the nearest future.

Primary economic activities. The manufacturers of Primorsky Krai bring 1.24% to the summary gross regional product across Russia (2010). The regional GRP indicator puts the region to the place 22 compared to other regions of the country. In 2011 the GRP of Primorsky Krai amounted 500.4 bln rubles.

At the end of the first quarter of 2012, the index of industrial production grew (109% opposed to the level of the previous year) in generation and distribution of electric power, gas and water. Progress was notified in the following spheres: fishing (increase by 21.4%), wood harvesting (increase by 6.1%) and agriculture (increase by 4.5%).

Certain positive trends can be seen in small business. In 2011, the share of small business subjects in the GRP amounted 23.5%. The level of services and goods produced by the subjects of small business grew by 25% and amounted 119 bln rubles. The total number of entrepreneurs engaged with the regional small business is 349 thous.

Major branches of industry. The industrial complex is the most highly developed part of the regional economy, producing almost one third of the gross regional product. 30% of the basic production assets and 27% of the working population engaged in the economy of the region are concentrated in this sphere.

The key branches of industry include mining and processing of complex ores and tin ores, machinery and metalwork, aircraft industry and radioelectronics, chemical, light and food industries, production of construction materials. Coal mining is of a great importance for the regional economy.

Fishing industry is the leading industry of the region, influencing both the economy of the Far East and Russian economy, in general. 33% of the total national fish and marine products yield falls on Primorsky Krai, 30% of the national volume of eatable fish products, including canned fish, and 53% of fish flour is produced in the region. The fishing industry covers 29% of the regional volume of industrial production. The annual export figures amount up to over 400 thous. tons of fish products, the prominent consumers are Japan, the USA and South Korea.

Machine-building and metalwork are among the key branches of industrial complex in Primorsky Krai, manufacturing almost 8% of the industrial products in the region. About 20% of the basic production assets of industrial complex are concentrated at the enterprises. Key specializations: ship repair and ship building , machine-building and instrument-making, aircraft industry.

Mining industry is represented with the enterprises of nonferrous metallurgy, chemistry of rocks, coal-mining. Over 92% of the total national amount of fluorspar is produced in the region, 64% of tungsten concentrates, almost 100% of boric products, 73.6% of concentrated lead and 8.4% of refined lead, 18.2% of the national tin is mined in Primorsky Krai.

The non-ferrous metallurgy uses large deposits of complex ores, located in the northern regions of Primorsky Krai and the fields of fluorspar lying in Khorolsky district as a raw materials base. The raw materials base for coal mining industry is a procession of separate basins and fields, situated mainly in the southern part of the region, the largest of which are Bakinskoye and Pavlovskoye fields. Coal mined in Primorsky Krai is used only as a boiler and furnace fuel.

Food industry is a large complex of 13 branches, consisting of about 350 enterprises. The structure of industrial production is 38.4% filled with products manufactured by the food industry, of them the process industries give about 15%.

Timber and wood industry is one of the oldest economic industries of Primorsky Krai, which nevertheless lost its priority with the initiate development of a number of the large mineral resources deposits and intensive development of marine economy. The share of timber and wood industry in the overall volume of industrial production is 3.4%. More than 3/4 of forest products are exported.

Agriculture. Farm production is developed throughout the territory of Primorsky Krai, with the key facilities concentrated in the southern and south-western parts of the region. Climate conditions favour growing of almost all the known cultures, including the warm-season crops (rice, cucurbit crops, eggplants, pepper).

Milk-and-meat cattle-breeding, fur-farming (minks, black fox), deer-farming and bee-farming are spread throughout the region.

Crop growing shares 53.4% and cattle-breeding – 46.6% in the overall production scope.

Fuel and energy complex. Being one of the most important part of industrial infrastructure, power engineering occupies more than 1/3 of the structure of industrial production.

The electric power lines running across the southern densely populated part of the Far East are united into the power network working in a single regime. Industry and municipal housing economy are the chief electric power consumers.

Foreign trade turnover. The unique geographical location of Primorsky Krai predetermined its specific role in execution of strategic and economic interests of Russia in the Asian-Pacific region. The key trade partners of the region are China, Korea and Japan.

87% of the regional foreign trade turnover is shared between four largest countries of the Asian-Pacific region – the People’s Republic of China, the Republic of Korea , Japan and the USA. The export commodity pattern is formed mainly by food products and agricultural raw materials, mineral products, timber and timber articles. The import commodity pattern includes machines and vehicles, food products and agricultural raw materials, and other commodities (shoes, textile, leather articles).

In 2011, the volume of foreign investment into the region amounted USD 80.8 mln (+70.7% to the level of 2010), of them 66.6% were direct investments. The largest sums were invested into the manufacturing, retail and wholesale trade, repair works of automobile transport and household goods, operations with immovable property, rent and services, agriculture, hunting and forestry, transport and communication.

Considerable investments into the regional economy are carried out by China (USD 33.7 mln), Japan (USD 15.2 mln), Cyprus (USD 14.5 mln), the Virgin Islands (USD 10.7 mln).

Transport. With its vantage position in the transport-logistic system of the Russian Federation, Primorsky Krai is a region giving way to the transit trade routes running from Europe to Eastern Asia, from North-Eastern Asia and North America. It is the crossing point of all the transportation routes connecting the ports of the region, the ground border crossing points between Russia and China, Transsiberian trunk railway and public route from Vladivostok to Khabarovsk.

Favourable conditions for both inland and cross-border transport are predetermined by transport location of the Far Eastern region, which has direct railway access to the large seaports of the Pacific coast and to the ground border crossing points Pogranichny – Suifenhe, Khasan – Tumen river. There are 17 border crossing points in the region: 8 offshore posts, 5 automobile, 3 railway and 1 airline posts.

Primorsky Krai has the longest public roads in the Far East Federal District. Eight ice-free seaports and a number of port stations lie along the coastline which stretches far away.

Primorsky Krai is the key provider of sea transportation in the Far East. The transport complex of the region includes four transport hubs: in Vladivostok, Nakhodka-Vostochnaya, Khasan (southern), northern.

During the period 2002–2015, the total volume of investments into development of seaports transport infrastructure of Primorsky Krai will amount USD 162 mln.

Tourism. With its brilliant facilities for going in for various kinds of active sports, for adventure and eco-tourism, Primorsky Krai is one of the most interesting tourism centres of Russia. Here lie over 520 diverse unique natural objects (lakes, waterfalls, ancient dormant volcanoes, caves). The tourists are welcome to use hotels, camping sites, recreation centres and health resorts.

The natural treasures of Primorsky Krai are carefully preserved in multiple conservation areas of the region. Here lies the only one in Russia Far-Eastern Marinal Reserve, the main value of which is its collection of marine invertebrates species: star-fish, octopi, trepangs, crabs. One can see seals, whales, large killer whales here. Twelve islands belonging to the reserve became the nest-place for many seabirds.

One of the oldest public reserves of the Russian Federation lies next to Vladivostok – “Kedrovaya Pad” (“Cedar Pad”), with preserved subtropical forests, where the known ginseng grows.

The Sikhote-Alin public Natural Biosphere Reserve and the zoological sanctuary “Goraly” are included into the list of the UNESCO Global Heritage. The valuable parts of wild nature are preserved in this district, with the largest population of Amur tiger and a rare hoofed animal serow.

The following objects can be of interest for the tourists:

  • «Dragon Park» in the settlement Chistovidnoye – a natural rock park of the stone formations eight to one thousand meters long. The beautiful rocks are painted with many secret signs and unguessed messages.
  • «Sadgorod» – the zoo of exotic animals, only one in Vladivistok.
  • The beach «Black Sands», not far from a settlement Zarubino in the Aleut bay, covered with black volcanic sand, considered to be of therapeutic value.
  • The Ussuri Reserve named after Komarov, known for its virgin liane coniferous-broadleaf forests. A rehabilitation centre for the orphan bears is situated here.

In 2010, a project for foundation of a special economic tourist-recreation zone “Ostrov Russky” (“The Russian Island”) was launched in Primorsky Krai, which became the seventh in Russia. Several functional zones will be located at the territory 55 sq.km. in the area: park belt (tourist and ski routes, camps); multifunctional park zone (arboretum, zoo, safari park); zones of mass season-dependent recreation (recreation centres, motels, camps, winter sports complex, ski run); beach area (harbour, yacht clubs, boat hotel, floatel, float camps, boat camps, water sports objects); conservation area and historic-and-cultural areas (historic and tourist routes, memorial and museum objects, forest park). The project shall be fulfilled in 2013. The total sum of construction is estimated as much as 36 bln rubles. In 2012, the Russky Island housed the summit of APEC.

The gambling zone “Primorye” is created in the region, one of the four officially determined in the Russian federation. A modern entertainment infrastructure of an international level will be situated at the territory of Artyomovsky urban district in Muravyinaya bay. The overall area of the gambling zone is 620 ha. The plan considers allocation of hotels, multifunctional trade-exhibition complex, yacht club, winter sports centre, golf club, objects of recreation tourist infrastructure. The project period covers the period 2010–2025. The total cost – 35 bln rubles. In an infant state, the gambling zone will be targeted at the clients from the neighbouring countries of South-Eastern Asia (the People’s Republic of China, Korea, Japan). 

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