Alexei Chekunkov discusses the creation of a single priority development area for the Far East and the Arctic

© Government of the Russian FederationMinister for the Development of the Russian Far East and Arctic Alexei Chekunkov at an expanded meeting of the State Duma Committee for the Development of the Russian Far East and Arctic
Minister for the Development of the Russian Far East and Arctic Alexei Chekunkov at an expanded meeting of the State Duma Committee for the Development of the Russian Far East and Arctic
The proposed bill to create a single Priority Development Area (PDA) provides for expanding state support across territories and industries, unifying the requirements for obtaining resident status, and simplifying administrative procedures. This was reported by the Government press service following an expanded meeting of the State Duma Committee on the Development of the Far East and the Arctic.
The terms for existing residents will be preserved. Preferential regimes established in recent years for the development of the Kuril Islands and to attract foreign investors to high-tech projects will operate in parallel with the PDA.
Under the bill drafted by the ministry, new investment projects with capital investment of 100 million rubles or more will be eligible for state support. The bill also provides for profit, property, and land tax benefits, as well as reduced social contributions (15 percent instead of 30 percent), along with project support from the Far East and Arctic Development Corporation at all stages of implementation.
In addition, investors will have access to an alternative to the profit tax incentive – a federal investment tax deduction that allows them to reduce their overall tax burden for up to 10 years.
Corporate groups will be able to recover up to 10 percent of capital expenditures incurred in the operations of their Far Eastern or Arctic branches (at a five-percent rate).
The Far Eastern and Arctic regions will independently establish pilot legal regimes for projects in artificial intelligence, unmanned technologies, digital platforms, and other fields.
Minister Alexei Chekunkov noted that the aim of modernizing existing mechanisms is to sustain accelerated investment growth in the development of the Far East and the Arctic.
“Over the past decade, more than 7 trillion rubles have been invested in industrial and infrastructure projects in these geostrategic macroregions. By 2030, the total investment volume will reach 12 trillion rubles,” he emphasized.
View of the cable-stayed bridge over Zolotoy Rog Bay to Russky Island in Vladivostok
Ministry for the Development of the Far East and Arctic presents draft law on the creation of a unified territory of advanced development for the Far Eastern Federal District and the Arctic