The draft laws are designed to create favourable conditions to boost the socio-economic development of the Primorye Territory and the Far Eastern Federal District by expanding cross-border trade, developing transport infrastructure and integration into global transit routes, securing investment, creating a network of logistical centres with special conditions for the transportation, storage and partial processing of cargo, organising export-oriented non-commodity production facilities with high added value and the further integration of the Russian economy into the system of international economic relations in the Asia Pacific region. The draft laws provide residents of the free port of Vladivostok better conditions for entrepreneurial and investment activity compared to similar territories in the Asia Pacific region.
The draft federal laws On the Free Port of Vladivostok, On Amending the Tax Code of the Russian Federation following the adoption of the federal Law On the Free Port of Vladivostok, and On Introducing Amendments to Legislation following the adoption of the federal Law On the Free Port of Vladivostok (hereinafter, the draft laws) were submitted by the Ministry for the Development of the Russian Far East.
The draft laws were prepared pursuant to the Russian President’s directives to ensure the implementation of the Presidential Message to the Federal Assembly (No. Pr-2821 of 5 December 2014) to provide a legal regulatory framework and conditions for investment in existing and new enterprises, infrastructure, transport and logistic systems, including the creation and modernisation of seaports and other infrastructure in the Primorye Territory and the Far Eastern Federal District.
The draft laws are also designed to create favourable conditions to boost the socio-economic development of the Primorye Territory and the Far Eastern Federal District by expanding cross-border trade, developing transport infrastructure and integration into global transit routes, securing investment, creating a network of logistical centres with special conditions for the transportation, storage and partial processing of cargo, organising export-oriented non-commodity production facilities with a high added value and the further integration of the Russian economy into the system of international economic relations in the Asia Pacific region.
The draft laws define the conditions and procedure for the creation of the free port of Vladivostok. Relevant amendments will be introduced to the Tax Code to ensure its effective operation.
To coordinate the activity of national and municipal authorities and address fundamental issues related to the operation of the free port of Vladivostok, a supervisory board of the free port of Vladivostok will be established. The composition and statute of the supervisory board of the free port of Vladivostok will be approved by the Russian Government.
The draft laws provide for measures of state support for entrepreneurial and other forms of activity at the free port of Vladivostok, including general state support and special measures.
General state support measures will be in effect on all types of specialised territories of the free port of Vladivostok. They will take into consideration the specifics of:
- the labour activity of persons working for residents of the free port of Vladivostok;
- state and municipal control (supervision) on the territory of the free port of Vladivostok;
- entry into the Primorye Territory and exiting the territory by foreign citizens;
- medical activity on the territory of the free port of Vladivostok.
General state support measures also provide for priority connection to the infrastructure of the free port of Vladivostok.
Special measures of state support for entrepreneurial and other activity will be applied in accordance with the proposed legal framework depending on the type of economic activity of residents in the free port of Vladivostok, its character and conditions.
The draft laws provide residents of the free port of Vladivostok better conditions for entrepreneurial and investment activity compared to similar territories in the Asia Pacific region.
According to the developers of the draft laws, their adoption and implementation should ensure the following socio-economic results:
- factoring in the creation of the free port of Vladivostok, by 2021, Primorye Territory’s gross regional product (GRP) will amount to 1.106 trillion roubles (a growth of 70 per cent on 2015), by 2025, 1.402 trillion roubles (a growth of 120 per cent on 2015) and by 2034, 2.1577 trillion roubles (a growth of 240 per cent on 2015);
- factoring in the creation of the free port of Vladivostok, Primorye Territory’s GRP may grow by 470.1 billion roubles by 2021, 766.2 billion roubles by 2025 and 1.5218 trillion roubles by 2034.
- the number of new jobs: 84,700 by 2021, 108,000 by 2025 and 468,500 by 2034;
- factoring in the creation of the free port of Vladivostok, the Primorye Territory’s GRP may grow by 1.97 trillion roubles by 2025.
The draft laws were considered and approved at a meeting of the Russian Government on 4 June 2015.