Putin: Russia to create center for capital attraction in Far East

VLADIVOSTOK, Sep 3 (PRIME) -- Russia will form a center for attraction of capital and economy in the Far East and create a space of opportunities for individuals and businesses, President Vladimir Putin said on Friday during the Eastern Economic Forum (EEF).

“Russia is an integral part of the Asia–Pacific Region. We will form a strong center of attraction of capital and new economy in our Far Eastern regions, we will create space for self-realization … of citizens and for realization of the most daring business ideas and business projects,” he said.

Interest to the development of the Far East shows that the economy is recovering after the pandemic. Russia is open to mutually beneficial partnership with all countries of the Asia–Pacific Region, he said.

Russia needs to accelerate economic development of the Far East, to create competitive business conditions there. It will introduce an unprecedented tax regime for businesses on the Kuril Islands, and the regime should bring noticeable results and improve development of the islands, he said.

“We will create an unprecedented array of preferences and stimuli on the Kuril Islands, where we will relieve the business completely of the key taxes like the profit tax, the property tax, the land tax, and the transport tax for 10 years,” he said, adding that it will be applicable only for the companies that actually work on the islands instead of being just registered there, and that foreign investors will also be able to use the advantages.

Russia needs to create the best conditions in the Asia-Pacific region for businesses in the Far East, he said.

Foreign direct investment in Russia’s regions of the Far East almost doubled over the past six years to U.S. $80 billion, he said.

At the same time, there is deficit of construction materials in the Far East. Putin ordered the government, the Russian Railways, the Federal Road Agency, and other largest consumers of the construction materials to prepare proposals to increase production of building materials in the region, including creation of a construction material industry cluster in the Khabarovsk Region.

The government should also work on stimulation of housing construction in the region, and consider expansion of the cheap mortgage loan program to the region very soon. Healthcare spending in the region will be also raised by more than 6 billion rubles per year, Putin said.

The Arctic zone accounts for 18% of the territory of Russia, it holds world-scale mineral reserves, Russia is responsible for using the resources wisely, he said.

Russia needs to formalize environmental demands for its ports and to use the best and environmentally friendly technologies for cargo transshipment. The government and the regional authorities should provide maximum support to clean energy projects in the Far East, he said.

Putin also said that the government plans to develop the transport potential of the Far East, including raising the cargo transportation capacity of the Northern Sea Route to 80 million tonnes per year in 2024. The first regular container shipments from Vladivostok to St. Petersburg through the Northern Sea Route should be launched in 2022 in order to test the route, he said.

The government should also consider creation of a center for production of green hydrogen and ammonia in the Far East with participation of foreign partners, Putin said, adding that the government and he will discuss a regulatory base for trade in hydrocarbon units in October.

(72.8491 rubles – U.S. $1)

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