Earlier in September Russian businessman Oleg Derpaska told delegates to the 7th Baikal International Economic Forum (BEF), "A horse moves in the direction its head is facing. If Moscow's head is facing towards Europe, then we ... will not be able to move towards Asia", - said Deripaska , according to Interfax. The businessman is certain that the Trans-Ural regions need to be heading east, towards China.

Yakutia has approximately 600 gold deposits, 44 tin and 44 coal deposits, 34 oil and gas fields, 26 mica deposits, 7iron ore deposits, as well as a number of antimony, zeolite, and apatite deposits. The republic accounts for 47 % of explored coal reserves and 35 % of natural gas and oil reserves of Eastern Siberia and the Russian Far East. Sakha accounts for 100 % of Russia’s overall antimony mining, 98 % of rough diamonds, 40 % of tin mining, 15 % of gold mining, and 24 % of diamond cutting.

Deripaska’s Presentation at the BEF said that Siberia and the Far East hold over 70% percent of Russia's natural resources, yet combined, they account for only approximately 16% of the GDP. Deripaska, co-owner of En+ and UC RUSAL, thinks that this disproportion can be overcome by a special "development mode" plan, which he presented at the BEF.

He stated that China is the leader of the world economy, accounting for 48% percent of the world consumption of energy coal, 41% of copper and nickel, and 39% of aluminium in 2010.

He proposed providing incentives and benefits for companies developing projects in the region: an income tax remission for the first five years, and for the following five - refunds for half of taxes paid if they are re-invested into the region - as well as infrastructure and education deductions (not exceeding 2% and 1% of company turnover respectively). Unallocated production fields and deposits should be handed to the Far East and Zabaikalsk Development Foundation (the creation of which is accounted for in the  Far East and  Zabaikalsk region 2025 development strategy), which will in turn look for suitable investors.

People moving to Siberia and the Far East also need incentives: Deripaska is offering to absolve them of personal income tax for the first three years, reimburse their moving costs and provide settling allowance and mortgage loans.

Yakutia, with 3.1 mn sq kms territory, slightly less than India, is the largest member region in the Russian Federation and is planning to raise $154.8 bn of investment by 2020 in industrial development, transport and infrastructure and natural resource exploitation from new oil and gas fields to hydro-electric power generation. Only 8% of the republic’s area has been scientifically surveyed according to the state president, Yegor Borisov.

Since January this year, a crude oil pipeline between Russia and China is in operation, with 15 million metric tons of crude expected to move from Russia to China a year until 2030, according to Chinese state media. The Eastern Siberia Pacific Ocean (ESPO) pipeline passes through southern Yakutia, and according to RIC’s Fedotov, “provides direct access to the Chinese market.”

RIC, one the largest Russian investment companies with $1.5 bn capital, is promoting oil, natural gas and tin projects.

Fedotov says Russian assets are significantly undervalued in comparison with other markets. He points out that from 2001-2010 shares in Russian companies yielded a return in excess of 1,000%.

With substantial investment in converting Yakutia’s famed diamond mines from open cast pits to underground mining, development of new gold mines by London headquartered Polyus Gold and others and an emphasis on modernisation, the region is poised for a boom.

Siman Povarenkin, General Director of GPM Holding which is setting up production for a large silver-zinc-lead deposit in the east of Yakutia says the region has “one of the most efficient regional leaders in Yegor Borisov,” supported by an advanced management team.

Povarenkin credits Mr. Borisov with promoting Yakutia “on an international scale.”

While over 40% of Yakutia lies within the Arctic Circle, to the south it borders with the Chita and Amur oblasts with accessible borders with China.

Yakut children at a local festival