This is a business decision that could potentially encourage more Japanese companies to invest in the far Eastern Russian regions.

The Japanese Bank for International Cooperation (JBIC; Governor: Akira Kondoh) on February 16 signed a concluding agreement for the formation of a joint venture company to promote Japanese investment in the Advanced Special Economic Zones*1 (ASEZs) and Free Ports*2 in the Russian Far East. This agreement was signed at the Russian Investment Forum 2018 in Sochi. The joint venture company, named the Japanese Project Promotion Vehicle in the Far East Limited Liability Company (Far East JPPV) *3, will be co-founded by the JBI, the Far East Investment and Export Agency(FEIA)*4, and the JSC The Far East and Baikal Region Development Fund (FEDF)*5.

One of the activities included in "eight-point cooperation plan"*6 proposed by Japanese Prime Minister Shinzo Abe to Russian President Vladimir Putin at the Japan-Russia summit meeting in May 2016 is to "develop industries and export bases in the Far East." Given achieving establishing sustainable cooperation during this project, the Far East JPPV plans to promote investments made by the Japanese companies in the ASEZs and the Free Ports in the Far East. The company will focus on coordinating with the Russian government authorities and providing advisory services to the Japanese companies during project execution in various areas such as manufacturing, logistics, and infrastructure and the service provider sector.

The Russian government has emphasized its policies aimed at the development and advancement of the Far Eastern region which represent its top priority in promoting investments in the ASEZs and Free Ports from foreign countries which include Japan. The establishment of the Far JPPV is in accordance with the policy of the Russian government. The company is also expected to help Japanese industries remain competitive in the markets while achieving sustainability by encouraging the Japanese companies to invest in the Far East region which is characterized by immense growth potentials.

In collaboration with the Russian government, the Japanese public financial institution, JBIC, will work with Russian agencies such as FEIA and FEDF to support the establishment of Japanese companies in Russia and contribute to promoting the economic relations between Japan and Russia.