China expects positive effect from Russia’s efforts to develop of Far East region

BEIJING, August 21 /TASS/ China expects a positive effect from Russia’s measures aimed at creation of advance development territories in Far East region and developing the free port of Vladivostok, head of the Europe and Central Asia Department of the Chinese Ministry of Commerce Lin Zhi told reporters on Friday. "The plans are ambitious. Numerous advance development territories have been defined and the port of Vladivostok has become a free trade port. The Russian law has never seen such practices before. Considering the current level of development of the Far East and its small population number these are ambitious tasks," he said. "The free trade port is an important factor for attracting investments, primarily Chinese ones. Negotiations are underway for the development of the port’s infrastructure and logistics facilities. Obviously all this creates more favorable conditions for doing business. I think in the short terms and in long term there will be an effect /from these measures /," Lin Zhi said. In July, President Vladimir Putin signed a bill on creation of the free port of Vladivostok into law. The document will come into force on September 12. The free port will comprise all the ports in the south of the Primorye territory of Russia’s Far East, the Knevichi airport and railway areas. According to the lawmakers, the free port will create almost 500,000 new jobs by 2034 and increase the gross regional product of Primorye to 1.106 trillion rubles ($16.172) by 2021. In late 2014, the State Duma, the lower house of Russia’s parliament, passed in the third and final reading a law on advanced development territories aimed at boosting the social and economic development of the Russian Far Eastern regions and single-industry towns. 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 Russian Far East 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. Read more