An online conference entitled “Anti-Crisis Business Support Measures for Residents of the Advanced Special Economic Zones (ASEZ) and the Free Port Vladivostok (FPV)” was held. During the event, organized by the Far East and Arctic Development Corporation (FEDC) and PJSC FC Otkritie Bank, experts talked about how investors receive support measures from the Far East preferential treatment and the advantages and differences of existing programs and they gave recommendations on how to apply state support measures. More than 70 individual entrepreneurs and commercial organizations from the construction, manufacturing and retail sectors participated in the conference.
“The new measures developed by the Bank of Russia together with the Russian Government allow small and medium-sized businesses to receive loans at an interest rate of 13.5% per annum. Funds under the support programs will amount to 675 billion rubles,” Anton Baibekov, Head of Customer Engagement and Development at Otkritie Bank, commented.
Under the program of revolving concessional lending, small businesses will be able to receive up to 300 million rubles, and up to 1 billion rubles for medium-sized companies. The rates will not exceed 15% and 13.5% per annum respectively. SMEs can receive such loans to replenish working capital or to refinance earlier working capital loans.
Investment loans will be provided under an extended program to encourage lending to SMEs, which the Bank of Russia is implementing jointly with the SME Corporation. The interest rates will also not exceed 15% per annum for small businesses and 13.5% for medium-sized companies.
During the conference, participants also received full information about the types of guarantees available to residents of the ASEZ and the FPV, and the terms of preferential lending under the Ministry of Economic Development’s Program 1764, under which funds can be obtained for a period of up to 5 years.
“The measures being taken today by the Government of the Russian Federation together with lending institutions are aimed at increasing the resilience of businesses in the face of sanctions pressure. In addition to general federal support measures, a separate mechanism for reducing the lending rate for investment projects is being developed for residents of the ASEZ and the FPV. The work is being carried out by the Ministry for the Development of the Russian Far East and Arctic, with the participation of the FEDC, on behalf of the Deputy Prime Minister of the Russian Federation and Presidential Plenipotentiary Envoy to the Far Eastern Federal District, Yuri Petrovich Trutnev. The support measures are designed to help Far Eastern entrepreneurs implement their projects as scheduled, launch new production facilities that the country needs, including import-substituting ones, and provide jobs for people,” Sergey Skaliy, Managing Director of the Far East and Arctic Development Corporation, said.
It should be recalled that investors implementing projects in the Far East and the Arctic have been granted a deferral of obligations until the end of 2022. Until 31 December this year, the Far East and Arctic Development Corporation will not terminate agreements with residents of the Advanced Special Economic Zones (ASEZ), the Free Port Vladivostok (FPV) and the Arctic Zone of the Russian Federation (AZRF) in case investors fail to meet deadlines and other obligations under the agreements. This decision applies to all residents of preferential regimes. First and foremost, it aims to support active entrepreneurs who have already started projects but have encountered objective difficulties due to reasons beyond the residents’ control.
Since December 2021, the Free Port Vladivostok regime has also become attractive to small businesses. The Government of the Russian Federation has reduced the minimum capex threshold for obtaining FPV resident status by a factor of 10, from 5 million rubles to 500,000 rubles. Now, entrepreneurs investing a small amount of money can start their business with the help of the state – taking advantage of tax incentives and other preferences.
According to the FEDC, today there are 2,658 investment projects being implemented in the Far East by residents of the ASEZ and the FPV. A total of 1.8 trillion rubles has been invested in the region’s economy, and 80,200 people have found jobs at the newly created and already commissioned enterprises. The implementation of all the announced projects will result in the employment of more than 192,000 people, and the investment will exceed 5.7 trillion rubles.
