"Already in October there will be a number of important meetings, and in the first quarter of next year is scheduled a first round of talks with potential investors in projects of oil and gas".

At the September 29 London Stock Exchange and at a later presentation to Russo British Chamber of Commerce members,  of the investment potential of Yakutia , Mr. Borisov has invited business representatives in London to take part in the development of investment projects in the country.

Mr. Borisov said Yakutia has unique mineral resources of which only proven reserves are estimated to date at more than $ 3 trillion U.S. dollars.

The rapidly developing infrastructure in the region make attractive investment sectors such as mining and refining of oil, gas, and Yakutia is actively developing other natural resource deposits. The growth potential of Yakutia in the near future is rated higher than any developing country and regions in the world. If in 2010 the share of the republic in Russia's economy was only 0.9% by 2015 it is expected  fast growth to 1.5%, and by 2025 - up to 5-6% or more.

There is a kind of psychological unpreparedness of big business for the development of a UK investment market in Yakutia.

"We talk about the fact that the cost of raw inputs into the projects of Yakutia today is lower than not only in other developing countries, but also in comparison with other regions of Russia, " said  RIC's Fedotov. "Therefore, direct investors can expect a relatively higher return on invested capital. Especially promising for foreign investors to participate in the accelerated growth of the Asia - Pacific region, especially China's economy, where the projected long-term steady growth of energy consumption. The high yield on investments is achieved primarily due to low base effect of the economy, which is typical for emerging markets in general and particularly in Yakutia.

"Today, we are interested in intensive cooperation with foreign investors, in particular the UK, which have a low-cost capital and have the opportunity to make direct long-term investment in capital-intensive projects such as mining and processing of hydrocarbons. Of course, attracting long-term investment in the republic - is the main way for a significant number of new jobs and generally improve living standards in the region".

RIC presented in London projects in the mining and processing of oil, gas and mining of tin in concentrate . Today they are the key areas of industrial development in the republic that will in future have a significant impact on the economy as a whole. RIK oil projects basically have an agreement with OAO "Sakhatransneftegaz" and OAO NK "Tuymaada Oil",  which have a license on deposits with a volume of more than 30 million tons of oil with the possibility of developing new fields. According to preliminary estimates calculated going public in 2015 with capitalization of more than $ 11 billion project for the extraction of tin in concentrate-based company "Yanolovo" is in progress in the first half of 2012 over five years, scheduled to sell the product to the amount of $ 420 mn, or 22 tons of tin.

"We offer  projects that are simply destined to go higher on their profitability," said Fedotov.

"Today, the value of assets in Russia are greatly undervalued in comparison with other markets, the profitability of Russian companies from 2001 to 2010 amounted to more than 1,000%. And there is virtually no participation of global companies in Yakutia - a region with a substantial resource base. In the near term growth potential of the eastern part of Russia exceeds forecasts for emerging markets", Fedotov said.

(Edited from YASIA)

Construction of a bridge over the Lena river to carry a rail link to Yakutia capiotal Yakutsk