Federal Government establishes five areas of priority socio-economic development in the Far East
22 Aug 2015
On 22 August 2015, The Prime Minister of the Russian Federation approved the creation of five areas of priority socio-economic development in the Far Eastern Federal District. These areas are:
(1) the Mikhailovsky area on the territory of the Mikhailovsky, Spassky and Chernigovsky municipal districts of the Primorye Territory;
(2) the Kangalassy Industrial Park on the territory of the urban district of the city of Yakutsk in the Republic of Sakha (Yakutia);
(3) the Belogorsk area on the territory of the urban district of Belogorsk in the Amur Region;
(4) the Priamurskaya area on the territory of the Blagoveshchensky and Ivanovsky districts of the Amur Region and
(5) the Beringovsky area on the territory of the Anadyrsky municipal district and the urban district of Anadyr in the Chukotka Autonomous Area.
The establishment of these areas was done in reference to Federal Law No. 473-FZ of December 29, 2014 “On the Areas of Russia’s Priority Socioeconomic Development.” The law is aimed at developing certain regions of the country. Investors would benefit from a number of preferences such as: reduced profits tax rates (for the first five years of income-generating activity, the maximum profits tax rate applicable should be 5% (for the regional budget) and 0% (for the federal budget); for the following five years, the maximum profits tax rate should be no less than 10% and 2%, respectively), application of the reduced mineral extraction tax (MET) rates, etc.
Nature of measure:
Type:
-
Promotion and facilitation (Special economic zones)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
-
Russian Government official website, Establishment of five areas of priority socio-economic development in the Far Eastern Federal District, http://government.ru/en/docs/19369/, 22 Aug 2015
