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President of Russia Vladimir Putin: Mr Nosov, we have been discussing current matters with you for quite some time now. What else did you want to say?

Governor of the Magadan Region Sergei Nosov: Mr President, I wanted to briefly report on the results. The economy remains stable. The gross regional product is growing at the nationwide average; I will not even cite per capita figures, as they are several times higher. The investment climate reflects our ratings. We rose from 52^nd place in 2024 to the seventh place at the St Petersburg forum this year.

Regarding investment, as I reported to you last time, we are not just maintaining the pace. Gold mining enterprises – those that received investments and benefited from preferential regimes – have achieved very high production levels. Given the current gold prices, this brings additional revenue to the budget. Importantly, and I consider this my primary task, we are stimulating a new cycle of investments in gold mining and gold extraction plants. These are major capital investments and, crucially, sustainable gold production within our territory. Major players, major investors are entering the market, with whom we are also signing social partnership agreements – this should be emphasised.

Vladimir Putin: Is production growing?

Sergei Nosov: It is growing, particularly in gold ore. The Polyus Gold company is on track to set a record – 18 tonnes.

Vladimir Putin: However, alluvial gold production is declining.

Sergei Nosov: Alluvial gold production is decreasing, and there are various reasons for this – some surmountable, some objective. We currently see that it is large-scale businesses – producing no less than 200 kilograms, often up to two tonnes, and in some cases even six tonnes – that fulfil social responsibilities, protect the environment, and pay taxes.

I also consider it an achievement that our security agencies – the Federal Security Service, the Prosecutor’s Office, and the Interior Ministry – have made progress in combating illegal gold mining and violations of law. Over the past year alone, five illegal gold extraction plants were shut down, equipment was seized, and criminal cases were initiated. In other words, order is being rigorously restored in this area.

A few words about energy. It is clear that significant prospects for energy-intensive gold extraction plants require confidence in stable energy supply. On the one hand, we have a closed energy system, which is quite unusual for the Russian Federation. There are specific features that do not fall under general rules and laws. We have encountered this. For instance, excess or underutilised capacity effectively burdens small businesses, the budget, and even the population.

However, in coordination with Energy Minister Sergei Tsivilev, and following instruction from [Deputy Prime Minister – Plenipotentiary Presidential Envoy to the Far Eastern Federal District] Yury Trutnev, we have conducted substantial inventory work. We are now confident that we can supply electricity to all projects in which we plan to invest or invite major investors to participate – particularly in mineral resources. Incidentally, interest extends beyond gold and non-ferrous metals, as rare earth elements are currently in high demand.

Vladimir Putin: Do you have rare earth elements?

Sergei Nosov: We do have rare earth elements – as the saying goes, we have the entire periodic table. We have a unique tungsten deposit, and zinc and lead have been extracted here since the war-time years. The only requirement is investment in exploration. And major businesses, precisely large business is willing to do this.

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