The registered address will serve as the primary criteria for investment projects applying for preferences within the single priority development territory in Russia’s Far East and the Arctic, Deputy Prime Minister – Plenipotentiary Presidential Envoy to the Far Eastern Federal District Yury Trutnev told the TASS News Agency.

Addressing uncertainty when obtaining preferences is instrumental for investors, he pointed out.

“The Government takes decisions to create priority development territories taking into consideration the opinions of all the ministries, but they may not be on the same page on certain matters. For example, some may believe that that a given sector is sufficiently profitable and can generate revenue on its own. This creates a sense of uncertainty among investors who are ready to launch their projects,” he pointed out.

The effort to create a single preferential framework is expected to include a mechanism for shielding investors from low profitability, while also making sure that the budget is not affected by splitting tax preferences between investors and the budget in case investors start generating super profits. To qualify, investors must invest at least 10 million rubles and submit to a tax monitoring regime. In addition to this, this initiative includes a ten-year tax break with the rate determined based on project performance.