Four preferential regimes operate in the Far East and the Arctic: priority development areas (ASEZs), the Arctic Zone (AZRF), the Free Port of Vladivostok (FPV), and the Kuril Islands (KIRF), as well as special economic zones and measures provided by Far Eastern Federal District entities as part of regional investment projects. Over the past ten years, these preferential regimes have proven their effectiveness. However, changes in the economic situation and the need to attract investors require continuous improvement of the preference system.
Following the instructions of Russian President Vladimir Putin following the plenary session of the Tenth Eastern Economic Forum, the Ministry for the Development of the Russian Far East is working to create a unified preferential regime throughout the Far East and the Arctic.
The main goals of the new preferential regime are to ensure accelerated investment growth and simplify and expedite the investor support mechanism. Specifically, under the new mechanism, tax incentives will be applied automatically, without lengthy approvals from federal executive authorities, if the profitability of a project in the Far East is below the Russian industry average, multiplied by a "heightening coefficient."
Support will be provided only to new investment projects, with priority given to technology and tourism projects. Mandatory requirements for investors include a minimum investment of 10 million rubles, a tax monitoring regime, and a ban on certain activities (oil and gas production, financial and excisable activities). Precious metal and coal mining projects will require securities placement on the stock exchange.