Far Eastern distance: why did Putin stop in Magadan before meeting with Trump

On his way to a meeting with US President Donald Trump, Vladimir Putin stopped in Magadan on August 15. Here he visited a unique fish oil processing plant, a new sports complex and other facilities that appeared in the city thanks to master plans - projects for the development of urban infrastructure. At the meeting, the president was told about how they are being implemented and what problems the local authorities had to face.

How is the economy of Magadan developing

The President began his visit to Magadan with a visit to the Omega-Si plant, which processes and refines fish oil. This is the first company in Russia that produces products from the white fish of the Sea of Okhotsk — sardines and herring. Following this, the Russian leader inspected another new facility in the region, the Presidential Sports Complex. On the ice, the head of the Russian Federation talked with the players of the children's hockey team.

Then he held a meeting dedicated to the implementation of master plans for the development of the city.

— I am very glad to be back here in Magadan. The city is changing, becoming more modern, attractive, convenient, and modernizing. In many ways, this is the result of the implementation of the master plan for the development of the city," said the leader of the Russian Federation.

During the meeting, Putin noted that the Mayak Park is actively developing in the region, as well as the territory of Nagayev Bay is being cleared — a marine logistics center will be created there. In total, from 2020 to 2023, 14 new facilities were built in the Magadan region, including those that the president managed to visit.

The Magadan development program involves the creation of 51 facilities worth 186 billion rubles. Of these, 15 have already been completed, and another 19 are still under construction.

At the same time, 72 billion rubles have been allocated from the regional budget for this program.

— Of the 56 billion rubles of extra—budgetary funds provided for in the plan, 22 billion rubles are the debt obligations of the subject, - said the governor of the region Sergey Nosov.

For the first time in many years, a new engineering school has appeared in the city, the reconstruction of the polytechnic has been completed, and construction of the new Gorokhovoye Pole microdistrict has also begun. It will help solve the housing problems of doctors, teachers and other workers who play an important role in the life of the region, the governor added.

The head of the region also asked Putin to help carry out coastal protection work in Magadan. According to him, since 1939, the coastline has retreated towards the land in Nagayev Bay by 56 m. As a result, the infectious diseases hospital, the private sector and the industrial zone located on the shore are almost on the edge of the cliff.

— The issue needs to be resolved now, especially given the situation that occurred in Kamchatka, the earthquake is very powerful, — said Nosov.

Another problem was the construction of an infectious diseases hospital, which could not be started due to difficulties with passing a state examination and determining the source of funding. The President instructed the Minister of Construction of the Russian Federation Irek Fayzulin to eliminate all formalities. In addition, Putin instructed Maxim Oreshkin, deputy head of the presidential administration, to work out solutions to both problems — strengthening the coastline and building a hospital.

During a personal meeting with the president, Nosov reported that new gold mining projects had become a priority for the Magadan Region. They provide the region with investments and form a sustainable gold mining and production industry. In addition to it, rare earth metals are also mined in the region. "We have, as they say, the entire periodic table," Nosov said.

The gold mining industry is indeed considered vital for the development of the Magadan Region, as it brings large revenues not only to the regional budget, but also to the federal budget, Georgy Ostapkovich, scientific director of the HSE Center for Economic Research and Economic Development, told Izvestia.

How are the plans for the development of cities in the Far East being implemented

In 2021, an instruction was given to prepare 22 master plans for the development of cities in the Far East, where about 4.5 million people live. To date, 165 facilities have been built and upgraded. The President recalled that a special monetary limit is now allocated for the implementation of master plans for cities in the Arctic and the Far East.

— I would like to note that in a number of our national projects, separate sections have already been formed for financing master plan events in Far Eastern cities. Also, at the suggestion of the Ministry of Finance, 5% of the budgets of sectoral government programs will be allocated for these purposes," the Russian leader stressed.

In addition, 100 billion rubles of treasury infrastructure loans were additionally allocated to fulfill the master plans of the Far Eastern Federal District (Far Eastern Federal District), said Alexey Chekunkov, head of the Ministry of Regional Development. Also in 2025, four regions of the Far Eastern Federal District want to issue national bonds in the amount of 2.2 billion rubles.

"Given the high interest and involvement of residents in the implementation of master plans, a number of regions of the Far East are working on issuing special national bonds so that people can financially participate in urban development projects while receiving market returns," the minister said.

A total of 875 new facilities will be built by 2030 thanks to master plans. At the same time, almost 20% of the activities have already been completed. Such a format makes great economic sense, as it helps to effectively mobilize forces for the development of the region's infrastructure, which has a positive effect on both the employment rate and the very appearance of urban space, says Georgy Ostapkovich.

At the end of his trip to Magadan, Vladimir Putin laid flowers at the memorial to the Heroes of ALSIB. The monument is dedicated to the feat of the pilots of the Alaska–Siberia airway, along which, during World War II, the Soviet and American militaries transported fighters supplied from the United States to the USSR under Lend-Lease. The memorial depicts Soviet and American pilots shaking hands against the background of an airplane wing. It is symbolic, given that the next stop on the president's way is the Elmendorf—Richardson military base in Alaska, where the main international event of this year will take place: the meeting between Vladimir Putin and Donald Trump.