Economy

The Eastern companies will invest in the Far East

Symbol of the company Dalenergostroy Vostok. Photo - minvostokrazvitia.ru

Minister of the Russian Federation on the development of the Far East A. Galushka told about how a state program of socio-economic development of this region is implementing , which will last until 2025. This initiative of the Russian Federation Government must allow to attract investments, accelerate development and improve the socio-demographic situation in the Far East.

In particular, it is planned to create 100’000 new jobs by 2030 and increase the population to 8.5 million people (currently 6.2 million). The objectives will be achieved also through the establishment of priority development territories (PDT) with favorable conditions for attraction of investments and free ports, using the special regime of customs, tax, investment, the adjacent control. From the federal budget for the development of the region it will be allocated 17 billion rubles in 2017 and 20 billion in 2018, 2019. In the case of a shortage of funds, the investors’ costs will be covered through targeted tax breaks.

Today in the Far East 21 projects has already implemented with participation of investors from China with an investment volume of more than 180 billion rubles. Also, negotiations are underway about investments of Japanese companies in the PDT and the free port of the region. For this purpose, before the end of 2016 a joint project company will be established. In the development plans is creating a large “energy ring” Russia-Japan-South Korea-China.

Another important project for the Far East is the implementation of the law “Far East hectare”, allowing any citizen of the Russian Federation to move freely and to receive a plot of land in the region. The law also includes government support of citizens in the development of new lands. Now only residents of the Far East can apply for participation in the project, and from February 1, 2017 it will be able to do all the citizens of the country. Studies show that about 10-20% of Russians are considering the possibility of 1 hectare of land and move to the Far East.