Far East: 19 Federal Laws Passed in 3 Years
The development of the Far East is being normatively fixed in the legal framework. Over the past 3 years 19 federal laws have been passed to improve investment climate and the socio-economic situation. This comment was given to the media by Alexander Galushka, the Minister of the Russian Federation for Development of the Far East concluding the work of the ministry in Beijing within the framework of the 22nd regular meeting between the heads of governments of the two countries.
‘Over the past 3 years 19 federal laws have been passed. They concern the development of the Far East. These are the laws giving benefits and preferences to investors and those enabling people to get land plots for free. These laws have brought down electricity prices and now electric power is cheap for businesses operating in the Far East. The electronic visa allows foreign tourists to visit the Far East. This is but an extensive list of the topical and important laws that have been passed’, - said Alexander Galushka, Minister for the Development of the Far East.
The minister also told about the initiatives soon to be drafted into laws. Now the Russian parliament is considering a law on prolonging tax benefits for major projects. ‘For those investors who have put in over USD 1.5 bln, the benefit term will be extended from 10 to 19 years. For capital-intensive projects we allow investors to use these benefits long enough to return the investment and improve the economy of the investment project. The draft was approved by the State Duma in the second reading and now the third reading is being prepared’ Alexander Galushka stated.
As the minister pointed out, the President of Russia has given a task to extend the application of the electronic visa beyond Vladivostok to other international airports of the Far East. ‘It implies that foreign citizens, including the Chinese citizens, will be able to use the electronic visa to arrive not only to Primorye but also to other Far East regions,’ he specified.
The head of the Ministry for Development of the Russian Far East stated that the President had given a task to work out a law that would ´guarantee the stability of investment and business conditions to investors, the so called “Grandfather clause”. This is due to the preservation of benefits and preferences for businesses that work in the Far East. If new laws are suddenly adopted that will change them for the worse, then for those investors who have already come, they will continue to remain unchanged," – commented the Minister.
In accordance with the instruction given by the President of Russia the benefits on social security contributions will be prolonged for the investors operating at TADs and the free port. ‘They have existed for 10 years for any investor coming to the Far East till 2025, meaning that lowered rates will be valid till 2025. The law is being drafted now’, – Alexander Galushka stated.
"The decisions of the country's leadership are aimed at improving the business environment in the Far East", concluded the Minister.
Let me remind you that on November 1, a two-day official visit to China of Chairman of the government of the Russian Federation Dmitry Medvedev ended in Beijing. During the visit, the Prime Minister met with President of China XI Jinping and held the intergovernmental negotiations, as the result of which a package of documents on cooperation in energy sphere and agriculture was signed. On November 1, Dmitry Medvedev and Premier of the State Council of the People's Republic of China Li Keqiang chaired the 22nd regular meeting between the heads of governments of both countries.
The Russian delegation included First Deputy Prime Minister Igor Shuvalov, and Vice-Premiers Olga Golodets, Arcady Dvorkovich, Yuri Trutnev as well as Sergey Donskoy, Minister of Natural Resources, Denis Manturov, Minister of Industry and Trade, Nikolay Nikiforov, Minister of Communications, Maksim Oreshkin, Minister of Economic Development, Alexander Tkachev, Minister of Agriculture, and Alexander Galushka, Minister for Development of the Far East.
On the margins of the 22nd regular meeting between heads of Russian and Chinese governments Yuri Trutnev, Vice-Premier and plenipotentiary envoy of the President of Russia to the Far East Federal District and Alexander Galushka, Minister of the RF for Development of the Far East had a number of meetings with Chinese investors.
By Evgenia Vassilieva
+7 (985) 269-77-02