The Far East and Arctic Development Corporation (FEDC) hosted a presentation of the study "Far East: Industry. PPP. Support Measures." The study was conducted by FEDC, the law firms “Lidings and You & Partners” with the support of the Ministry for the Development of the Russian Far East, the Eastern Center for State Planning, and the Association of Infrastructure Investors and Creditors.
In the Far East, special conditions have been created for entrepreneurship: these are preferential regimes of the territories of advanced development (ASEZ), the free port of Vladivostok (FPV), the Arctic zone of the Russian Federation (AZRF), the Kuril Islands of the Russian Federation (KIRF), the Special Administrative Region on Russky Island (SAR), and the innovative scientific and technological center (ISTC). The FEDC provides residents of the Far Eastern and Arctic preferential regimes with a single window. Investors receive tax benefits and administrative preferences, land and infrastructure support, assistance in many issues related to the implementation of projects. This allows for the introduction of investment projects on schedule and significantly increases the efficiency of business, allowing both large investors and small and medium businesses to implement projects.
Martun Kirakosyan, manager of the investment department of the FEDC, compared the profitability of a logistics hub created in the Far East with the help of government support measures and a similar hub in Central Russia: “The profitability of the project in the Far East is 3.5 percentage points higher, and the payback period of the project is shorter by 1.5 years, since the costs of the supporting infrastructure are compensated by the state. In addition, as a resident of the priority development area, the investor is provided with tax and administrative benefits. This neutralizes the high capital intensity, high cost and distance, making the Far East more attractive for investors." He noted that work on fine-tuning the preferential regimes is ongoing.