NOVO OGARYOVO, Moscow Region, August 7 (RIA Novosti) – Russia’s so-called advanced development zones in the Far East will start functioning in 2015, Russia’s Far East Development Minister told President Vladimir Putin on Thursday.
"We expect that after the passing of the bill, after the allocation of the necessary finances – we have calculated everything for every territory of the advanced development, including the necessary investment and the effects that may be reached – starting January 1, 2015, we can launch the project of creating advanced development territories and attracting new investors," Alexander Galushka said.
Advanced development zones are export-oriented territories with preferential conditions for businesses. Their creation signals Russia’s strategic Asian pivot that comes amid toughening penalties on its exports to Europe and Russia-imposed embargoes on imports from Europe.
The project was launched more than nine months ago, and Putin said it was time for results. Galushka said the task was difficult, but investors would show interest when the necessary conditions, such as tax preferences, are created. He said he planned to make the region a lucrative investment opportunity for foreign business, which could attract 1 trillion rubles ($27.6 billion) in investment across 14 platforms.
"What would the [advanced development zones] give us? In the 10-year perspective, the first 14 territories of advanced development chosen today and suitable for this – a ready-to-use product, so to speak – it is 1 trillion [rubles] in private investment, non-budget investment, which we can attract and which we would not be able to attract without such a tool," the minister said.
Galushka said 18 investment projects, worth 2.5 trillion rubles ($69 billion), have been already chosen out of 340 projects submitted. Those projects would form the basis of the Far East’s new economy, he said.
Last week, Galushka said a special committee in charge of the development project had drawn up a list of the region’s 4,400 largest companies that export $10 trillion worth of products to the Asia-Pacific region.
In June, the Far East Development Ministry unveiled a targeted support program for the region that is expected to attract some $65 billion in investment.
