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361854
Tue, 03/31/2015 - 12:43
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Russian Far East prepares to host first Eastern Economic Forum in August

GORKI, March 30. /TASS/. Establishing a legal framework to implement innovative projects related to advanced development territories in Russia's Far East is one of the priorities for preparing the first Eastern Economic Forum this summer, deputy premier and presidential envoy to the region Yuri Trutnev said on Monday. The forum is scheduled to take place in Russia’s eastern coastal city of Vladivostok from August 12 to 15. Projects for potential investors in Asia envisage expanding economic ties while securing Vladivostok’s status as a free port and developing the Northern Sea Route, which runs along Russia's northern coast and links Europe with ports in East Asia. "Our neighbours are also interested in new forms of work [advanced development territories and others]. They want to participate in all of them," Trutnev said at a meeting held by Russian Prime Minister Dmitry Medvedev with deputy prime ministers. "Before holding the forum, we aim to come up with the law on a free port in Vladivostok, to continue work on advanced development territories, to launch the Far East Development Fund and to prepare a number of tools to stimulate investment activity in the Far East," he said. Earlier this month, Russian President Vladimir Putin backed the idea of holding the Eastern Economic Forum in August. In his annual address to the Federal Assembly in December, Putin ordered legal amendments giving Vladivostok the status of a free port, as well as drafting and approving a comprehensive plan for development of the Northern Sea Route. Officials in Russia’s Primorsky region, home to the port city of Vladivostok, said in early March the free port regime could be introduced there in 2016. The project was expected to facilitate development of logistics, ship repair and bunkering, along with manufacturing, export-oriented and import-substituting industries, and agriculture, Vice-Governor Sergey Nekhaev said. A draft law granting Vladivostok the free port status would pass through the parliament until the end of the year and would be later signed by the president, Nekhaev said, adding that "this will provide an opportunity to start implementing it [the law] already in 2016". The law envisages easing customs procedures and terms of stay for foreigners on the territory of a free port, giving them the right to import and export certain goods without customs and intensifying the Northern Sea Route shipping. Along with adopting the draft law on Vladivostok’s free port status, the authorities will have to make amendments to more than 20 federal laws. Meanwhile, Russia's Far East and single-industry towns will enjoy tax incentives to boost their social and economic development, according to a law on advanced development territories passed by the State Duma, the lower house of Russia’s parliament, in late December. The law stipulates that advanced development territories will be established for a term of 70 years, which may be prolonged, if necessary. Within three years after the law comes into force, advanced development territories will appear in the region, and also in single-industry towns with the tensest social and economic situation included in the government’s list. Subsequently, advanced development territories may be established in other Russian regions. Advanced development territories will offer privileged terms for entrepreneurial and other activity. Specifically, the law stipulates reduced rent rates, priority connection to infrastructure facilities and free customs zone procedures. Advanced development territories in towns that inherited single industries from the Soviet period will be offered special legal frameworks relating to tax incentives, state control and reduced social security tax payments. As of today, some 14 sites and 18 investment projects have been selected for advanced development territories in the Far East. Investment for these projects is expected to reach some $1.6 billion. Russia was looking forward to foreign investors in any spheres of the economy but would prioritise projects in power engineering, shipbuilding and infrastructure development, Trutnev said in December. Read more

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