Chapter 592: Moving Interests (1/2)

Trutnev, the new head of the Russian Far East Development Ministry, took off from Moscow and spent most of the day before he arrived in the Far East.

"Avilin, I hope you have good news for me. Facing the assistant who came to pick up the airport, Trutnev didn't care about the old days, and asked about the situation here.

Avelin, assistant to the President of the Russian Federation in the Far Eastern Federal District, was born in the KGB and, like the president, was responsible for gathering intelligence on the Far East for the Russian federal government.

Avilin shrugged: "Your Excellency, what more do you expect to hear? lagging behind most social indicators of the country, the continued exodus of the local population, life expectancy below the national average, alcoholic people, decaying economy, corrupt bureaucracy ......"

Oh, and that last point shouldn't be bad news for the Far East, after all, the whole federation is pretty much the same, isn't it?

Trutnev was not unaware of these things, so he had a toothache on his face.

Although there is the right to appoint and dismiss, the population of the Far East is small, and people from Eastern Europe are reluctant to come to take up posts here. So, whatever you do is rotten. After all, there are only so many people, can you still choose a flower? And Moscow can't directly appoint some local officials, after all, officials are a whole system, so many times they change the soup but not the medicine, and what should be done.

The biggest problem is the exodus, and it is particularly worrying that 70 per cent of those who leave the Far East are of working age. In the final analysis, the outflow of population is a problem of backward economic development.

"Oh, and the biggest bright spot in the Far East is probably the soybean industry. Avelin added.

But that didn't give Trutnev any comfort.

Just think that it is a Chinese company that actually dominates the soybean industry in the Far East makes Trutnev breathe fragrant.

Avelyn was not surprised.

The decline of the Far East has made the Russian Federation more dependent on China.

Russia is a fragile resource country. It has a vast territory and abundant resources, but such a country, which is ostensibly open-minded and welcomes investors from all over the world, any resource development investor, like China's Jiagu, will be treated with solemnity and warmth when it first arrives in Russia.

However, once things progressed to the point of substance, politicians, officials and people of the Russian Federation began to worry about it for a long time.

In the eyes of Russians, foreign investors mining resources in Russia are like their own blood being taken and their own flesh being dug up.

Jiagu's large-scale soybean planting in the Russian Far East and sending them back to China is, to a certain extent, a "plunder" of the sunshine, water resources and land in the Far East, so that Trutnev can calm down?

But Avelin is not a nationalist, and he tells the truth: "It is not true to say that the Chinese 'took away' the land, because the Chinese do not have the will to move en masse." According to my survey, the number of Chinese in Russia is only between 250,000 and 300,000, which is ...... the number of Russians in China."

Trutnev breathed a sigh of relief and asked the most concerned question: "So, tell me, how much influence does the Chinese Jiagu have in the Far East?"

Avirin glanced at him and said: "Let's look at the area of Jiagu Farm first, as far as I know, China's Jiagu has developed more than 3 million hectares of cultivated land in the Russian Far East, of which more than 2 million hectares are reclaimed abandoned cultivated land and 1 million hectares are reclaimed wasteland, that is to say, except for Jiagu Farm, there is not much arable land available for large-scale development in the Far East. ”

It is not that there is no land in the Far East, on the contrary, there is so much wasteland in the Far East that grass cannot grow.

However, not all land is suitable for growing food crops.

Quite simply, the growth of crops requires accumulated temperature. For example, the growth cycle of soybeans is about 150 to 180 days, the growth cycle of corn is about 130 days, and the growth cycle of wheat even takes seven or eight months...... In the Far East, except for the southern region, where the plant growth period is 130~200 days, the frost-free period in other places is very short, which is not enough to grow a crop of corn.

In other words, in the Far East, with the exception of the arable land enclosed by the Jiagu farms, most of the land in other regions is only suitable for growing crops with short growth periods, such as vegetables.

Of course, this is not the key, after all, in terms of share distribution, Jiagu only owns 40% of the farm. The point is that the Far East gang will transfer all the land to the Chinese to operate, and let the Chinese bring their own equipment, seeds and pesticides, which is the danger. ”

Avelin said heavily: "In this way, the soybean industry in the Far East can no longer be separated from the Chinese." They control the entire production process ...... breeding, soil management, fertilization, pest and disease management, farmland irrigation and drainage."

"Are these Far Eastern guys in the brain?" said Trutnev.

Still shrugging helplessly, Avelin made a helpless fact: "Do you still expect these fellows to farm the land themselves, or rather, is there enough labor in the Far East to farm the land?"

For Lao Maozi, development is a great thing, but the common problem of human beings is that great things let great people do it, the uncle wants to drink vodka and soak the girl, how moisturizing it is.

"If you are not clear enough about Jiagu's influence in the Far East, let's put it this way, Jiagu's soybean industry in the Far East has leveraged nearly 10 billion US dollars in output value, and the people who carve up the benefits around this chain are all over the Far East, such as gangsters, who can tacitly turn a blind eye when they see Jiagu's employees. Avelyn shook her head.

What is the concept of an output value of nearly $10 billion in the Far East? The GDP of the entire Russian Far East is less than $60 billion, and the weight of the soybean industry in the Far East can be imagined.

As Jiagu's influence in the Far East grew, from officials to gangsters, they all had some tacit understanding with Jiagu. In the past, if you want to do things in the Russian Far East, the ubiquitous triad and the extortion of officials are the problems that Chinese businessmen have to face. Now, when I see the Chinese equipped with the Jiagu CI (Corporate Image Recognition) logo, Lao Maozi is all smiling.

It's not okay if the gangsters don't coax it. Those who dare to treat Jiagu employees as "fat sheep" are all held accountable to the end by the Far Eastern upper class who share profits in the soybean industry chain. Throwing it into prison is the gentlest thing, but throwing it into a private mine is worse than death.

Trutnev could not have imagined that Kaya would have such influence in the Far East, and he was speechless for a while.

"Do you have any knowledge of Jiagu's illegal behavior?" After a while, Trutnev reflected on his thoughts and pointed to the key point.

As a core member of Putin's leadership in bringing down the domestic oligarchs, Trutnev is familiar with the use of "illegal" behavior against opponents, and he does not believe that a company like Gaya will be completely law-abiding in the Far East.

Avelin smiled bitterly: "Chinese cunning place is here, they share the profits of the majority of the profits, and they don't need to do it themselves for illegal acts like bribery, these guys in the Far East have directly dealt with the upstream and downstream ......"

For example, the Far Eastern interest strata will do whatever it takes to annex land, and Avelin can take out a box of such black material at will, but on the bright side, Jiagu never mixes with this kind of thing, and it only takes over the "innocent" land from its partners for development, and if it starts from this aspect, it is only afraid that the entire Far Eastern interest strata will "collapse" first.

"Of course, if you have to grab the braids, it's not that you can't find them. For example, the soybean seeds imported by Jiagu from China, as well as labor visas, have been dredged, but there are still many loopholes ......"

"No, that's a mess. "Trutnev did not hesitate to cut off the plan to manipulate this.

After reading the information, there is one thing that he has to admit, that is, Jiagu can beat Russia in traditional soybean breeding.

The average yield of soybeans per mu in Russia is only 100 kilograms, that is, the yield per mu is less than 200 catties, which is far lower than the yield of 400 catties per mu of Jiagu soybeans......

Banning the import of soybean seeds from Jiagu is easy to say, but it could cut the Far East's soybean production by more than half.

The president sent him to develop the Far East, not to make it even more decaying.

What's more, as the nominal leader of the Far East, he seems to be able to say a lot. But if it touches everyone's fundamental interests, maybe someone will jump out and scold the mother.

No, it's not "uncertain", it should be said to be "definite". And in Lao Maozi's style, it's not as simple as scolding his mother, but it is more likely that he will be sent directly to see God.

"Didn't these guys in the Far East think about balancing the Chinese?" said Trutnev very dissatisfied.

The Russian Far East is very special, in addition to bordering China and North Korea, it is also facing the United States, Japan and South Korea across the sea.

What's more, as long as you are an old Maozi, you should have an understanding that although China and Russia have relatively the same interests, China's too strong is not what Russia expects.

Trutnev does not exclude foreign interest groups, because they cannot be avoided when it comes to developing Russia's resources. But he wanted to maintain the balance of power abroad, not the current one-sided Far East.

But Avelin said with a bitter face: "It should be said that there have been checks and balances. But under our agricultural system, to be honest, there are not many interested foreign investors, and even fewer can beat Jiagu......"

Russia is one of the most stringent regions in the world for agricultural products, the implementation of EU standards for agricultural planting, the prohibition of genetically modified, the use of pesticides, fertilizers, categories are strictly limited, once the violation will be imposed a huge fine and the implementation of industry bans.

Western grain merchants have their own set of technical systems, and it is difficult to fully fit the Russian system, so including Japanese and South Korean grain merchants, in the Far East choose to avoid concessions and shrink contractions, only Jiagu, which has a similar planting environment in northeast China, can do its best under the Russian system.

"If production can't be done, what about soybean trade? Soybean needs to be imported and Japan and South Korea, which have geographical advantages, are not tempted?"

"It's not tempting, but Jiagu's bid is 10%-15% higher than the international market price, and no one can grab Jiagu. ”

"Why can Kaya ......" Trutnev thought for a moment, and then came to an abrupt end.

He had forgotten that Jiagu itself had a stake in the soybean farm, which meant that it could afford to increase the price.

If Trutnev had any knowledge of the iron ore trade, he would have found that Jiagu's trick was properly learned from the people of the island country.

In the international iron ore price negotiations, the island country's steel companies have unilaterally reached price increase agreements with iron ore giants, forcing Chinese steel companies to accept this price. This is because the island consortium owns shares in the iron ore giants, and when the price of iron ore rises, they can make a profit, and then pass on the profits to their own steel companies when the iron ore is traded.

Jiagu is more convenient, whether it is production or sales, or processing, it is digested in its own system, and it is just a matter of turning the left hand into the right hand.

It's not that these guys in the Far East can't see it, but Jiagu Ken has increased the price, and they have gained more benefits, and who cares whether to contain the Chinese at this time.

Trutnev is fully aware of how tricky Gaya can beβ€”it's tricky, it's not greedy, or rather, it's only greedy for what it can afford.

If such a force is on the side of cooperation, of course, it is a good teammate, but if it is on the hostile side, it is the most troublesome existence.

It has never been easy to redistribute the tens of billions of dollars pie, and with such huge interests involved, it is only the beginning, and Trutnev is already feeling the cobwebs on his back.

"It seems that I am going to have a good talk with the person in charge of Jiagu, and I hope he is a smart person. Trutnev thought about it, if he weren't a smart man, he wouldn't have been in such a dilemma.

......