2016 June 15 12:22

Concept of Free Port of Vladivostok does not exclude establishment of an offshore zone

Concept of Free Port of Vladivostok does not exclude establishment of an offshore zone, IAA PortNews correspondent cites Deputy Prime Minister Yury Trutnev, Presidential Plenipotentiary Envoy to the Far Eastern Federal District, as saying at the 4th meeting of the Supervisory Board of the Free Port of Vladivostok.

When asked if the state was looking into attraction of the maritime industry's resources once moved offshore out of the region, Yury Trutnev said: “It’s a tricky question. Offshore is a generally recognized world practice. There are offshore companies in Europe, Asia and America, not only in Russia. Such companies provide benefit for the territory with the most favourable tax regime. Free Port of Vladivostok is not an offshore zone, of course. It is a territory with certain tax preferences and our task is to make it the most attractive for domestic and foreign investors. So the idea of an offshore zone within the Free Port of Vladivostok will quite possibly go further in the future. We are thinking about it”.

The Supervisory Board has approved 27 new investment projects totally estimated at more than RUB 14.3 bln. Under these projects, the region will get 1,697 new jobs at a water park, state-of-the-art yacht port, plastic crockery and diapers manufactures, coal mine, etc. Four companies are going to create logistic centers and three companies will build residential areas.

Zero land tax approved for the city of Vladivostok at the last meeting has been expanded for 32 municipalities and will be discussed in 12 more municipalities in the nearest future.

Federal Law of the Russian Federation (No 212-FZ) "On the Free Port of Vladivostok", came into force on October 12, 2015. Its territory covers 14 municipalities including all the key ports of the region, from Vostochny to Zarubino.

FPV is run by the Supervisory Board chaired by Deputy Prime Minister of the Russian Federation.

Far East Development Corporation JV was defined by RF Government as a company to manage Priority Socio-Economic Development Areas (PDAs) and the Free Port of Vladivostok, 100% of which is held by the Russian Government.

As of today the Corporation has received 81 applications from potential residents for total amount of over RUB 160.7 bln. More than 19,485 jobs are to be generated under those projects.

Free Port regime provides for a wide range of preferences and tax benefits.

To acquire a status of FPV resident a company must be incorporated within the territory of Vladivostok Free Port and invest at least RUB 5 mln within 3 years.