MOSCOW: Amidst the ongoing noise around the situation in Ukraine and Syria and the sanctions and counter-sanctions, there is a new Russian development initiative that seems to have slipped under the radar but is worthy of note – especially for potential investors in Russia’s Far East. This is even more important in the context of Russia’s recent proclaimed political and economic pivot toward Asia.
The Law on Territories of Advanced Development (ADT) was enacted in December 2014 and came into force this spring. And a number of first specific projects have already been announced. Further in July a “Free Port of Vladivostok” was established within the area of the Pacific city of Vladivostok and a few neighboring towns.
This provides for essentially similar benefits and incentives to investors as the ADT Law, with an enhanced exemption regime for customs clearance and immigration. The fiscal benefits of the Vladivostok free port come into force in January 2016, but some foreign investors, such as Samsung Electronics, are reported to be eyeing this opportunity already.
These advances may also be viewed in the context of Russia’s steady and continuing rise in the World’s Bank’s annual Doing Business rankings: from 62nd to 51st place over the past year alone, and well ahead of the other four BRICS (Brazil, Russia, India, China, South Africa) countries, according to the most recent report published in late October.
