© RIA Novosti. Natalia Seliverstova

The State Duma to draw up unified preferential zone bill for the Russian Far East and Arctic

In 2026, the State Duma will consider a bill on creating a preferential zone that will unify all business support measures in the Russian Far East and Arctic, Deputy Minister for the Development of the Russian Far East and Arctic Vitaly Altabayev told the Eastern Economic Forum.

The new preferential zone is due to comprise the existing regimes (Priority Development Area (PDA), Free Port of Vladivostok (FPV), the Arctic Zone of the Russian Federation (AZRF), and Kuril Islands). Resident status will be available online, after related organizations assess applicants’ projects.   

“We suggest introducing a 10-million-ruble minimal investment threshold, mandatory tax monitoring, and a set of support tools starting from reduced insurance contributions to stabilization clauses. Investors will be able to choose privileges subject to specific features of their projects,” he explained.

New residents will be entitled to tax privileges and an offer of land plots and infrastructure.  In addition, the zone will boast a free customs zone regime, a simplified monitoring procedure, and a possibility of quota-free use of foreign workforce.  

“Jointly with the Ministry of Economic Development and the Ministry of Finance, we are coming to the conclusion that privileges should hinge on the return on business ratio. The key in this regard will be granting tax privileges in a situation where a project’s ratio is lower than the average for Russia. We suggest raising this threshold by the difference in value of consumer baskets,” Vitaly Altabayev said.  

He also noted that the terms enjoyed by the existing residents would be maintained.