6– 7 September 2017

Vladivostok, Russia

News
  • EXPERTS DISCUSS RESULTS OF THE FREE PORT OF VLADIVOSTOK TWO-YEAR’S WORK

    12 July 2017

    On July 11, as part of the preparations for the Third Eastern Economic Forum, an expert panel discussion entitled “Second Anniversary of the Law ‘On the Free Port of Vladivostok’: Results and Prospects” took place in Moscow.

    Federal Law No. 212-FZ ‘On the Free Port of Vladivostok’ was signed by the President of the Russian Federation on July 13, 2015. According to the law, the Free Port of Vladivostok (FPV) operates as per a special legal regime for implementation of entrepreneurial and investment activities. Tenants of the Free Port obtain a number of preferences: tax reliefs, simplification of customs and visa procedures, and maximum reduction of administrative barriers.

    According to Andrei Fedotovsky, Director of the Special Advanced Economic Zones and Free Port of Vladivostok Department of the Ministry for the Development of the Russian Far East, the number of companies wishing to acquire the status of a tenant at the Free Port of Vladivostok is constantly growing.

    “To date, we have received 396 applications for acquisition of the status of a tenant at the Free Port of Vladivostok for a total sum of 374 billion rubles. They include 309 applications that have already been confirmed and 28 projects that are currently under consideration. Nearly half of the applied potential tenants intend to conduct sales in Vladivostok (191 applications), then comes Artemovsky Urban District (37 applications). The confirmed investment projects offer prospects of creating over 30 thousand new jobs,” said Andrei Fedotovsky at the panel discussion.

    The territory operating in the porto franco regime is growing steadily. On July 1, 2017, Russian President Vladimir Putin signed a decree on inclusion of the territory of Uglegorsk District of Sakhalin Region in the Free Port area. Thus, as of today, the special regime covers 21 municipalities in five regions of the Far East. Also, at the end of June, the Ministry for the Development of the Russian Far East submitted to the Government a draft bill on the extension of the Free Port regime to the international airports of Khabarovsk (Novy) and Petropavlovsk-Kamchatsky (Elizovo), as well as to Sovetsko-Gavansky municipal district.

    The territory of the Free Port of Vladivostok includes all the key ports of the south of the Far East, Knevichi airport, and international transport corridors Primorye-1 and Primorye-2. In 2016, the porto franco regime was extended to the key harbors of the Far East in Khabarovsk Territory (Vaninsky Municipal District), Sakhalin Region (Korsakovsky Urban District), Kamchatka Territory (Petropavlovsk-Kamchatsky), Chukotka Autonomous District (Pevek), and Primo

    EXPERTS DISCUSS RESULTS OF THE FREE PORT OF VLADIVOSTOK TWO-YEAR’S WORK

    rsky Territory (Lazovsky Municipal District).

    “Among the results of the two-years’ work implemented by the tenants we can name 10 fully completed projects with the amount of investments of more than 10 billion rubles and over 1.5 thousand jobs created. Before the end of the year, we expect completion of another 25 to 30 investment projects,” said Denis Tikhonov, General Director of the Far East Development Corporation.

    Heads of the FPV tenant companies shared their experience of working in the porto franco regime. They told about the benefits their enterprises have while working in the Free Port of Vladivostok.

    In particular, Konstantin Bogdanenko, Director of Aviapolis Yankovsky, said: “We conducted a thorough financial assessment of the prospects of participation in the Free Port of Vladivostok. What we found out was that, within 10 years of the factory’s operation, the FPV conditions will save us almost 200 million rubles. This is a significant sum if compared against the cost of the production building. This is the best demonstration of the benefits that the law on the FPV can provide to companies.”

    Special attention during the panel discussion was paid to the Eastern Economic Forum. The speakers noted the important role the EEF plays in promotion of the territory and the projects implemented there among international and Russian investors, as well as in the formation of the legislative framework for the Free Port of Vladivostok activities.

    “Each year, the Eastern Economic Forum holds special sessions devoted to the issues of the ASEZ and the FPV. All the initiatives related to Free Port of Vladivostok law amendments and expansions to the new territories have resulted from the work of the EEF sessions. For example, the request for the extension of the FPV area to the international airports of Khabarovsk (Novy) and Petropavlovsk-Kamchatsky (Elizovo), as well as to Sovetsko-Gavansky municipal district, which is currently under consideration by the Government of the Russian Federation, was also formed on the initiative of entities and entrepreneurs at the EEF 2016,” explained Andrei Fedotovsky.

    Also, during the panel discussion the experts touched upon the issues of introduction of a simplified visa procedure for entry to Russia via the checkpoints on the territory of the Free Port of Vladivostok and a single tax for the FPV tenants.

    In 2017, the Forum’s business program will include special sessions related to the territories of advanced development and the Free Port of Vladivostok. Presentation of the first success stories and discussion of new challenges faced by the Free Port of Vladivostok will be some of the key issues in the agenda of the business program and exhibition exposition of the Eastern Economic Forum to be held on September 6–7.

    Reference information:

    Eastern Economic Forum

    The Eastern Economic Forum is held annually to facilitate accelerated development of the Far East economy and expand international cooperation in the Asia-Pacific Region in accordance with Russian President Vladimir Putin’s Decree No. 250 of May 19, 2015.

    The Eastern Economic Forum 2017 will take place on September 6 and 7 in Vladivostok. The Forum’s site will be the campus of the Far Eastern Federal University (FEFU) on Russky Island.

    EEF official website: www.forumvostok.ru

    EEF 2017 is organized by the Roscongress Foundation – the largest organizer of congress and exhibition events.

    The Roscongress Foundation was founded in 2007 with the aim of helping to develop Russia’s economic potential and strengthen the country’s image by organizing congresses, exhibitions, and social events. The Foundation develops the substantive content for these events, and provides companies with advice, information, and expert guidance, as well as offers comprehensive evaluation, analysis, and coverage of the Russian and global economic agenda.

    Today, its annual agenda includes events held in locations ranging from Montevideo to Vladivostok, which bring together global business leaders, experts, the media, and government officials to create favorable conditions for dialogue and the promotion of new ideas and projects, and to assist in the creation of social enterprises and charity projects.