EMEA News
Vladivostok to Become a Free Port
Russia has passed a bill to make Vladivostok a free port, local news reports.
The bill will make a customs-free zone in the port a reality, as well as tax incentives for companies operating in the zone.
The free port status, which is set to come into effect in 2016, will stand for 70 years and includes a provision for an extension.
Tax benefits of the new zone are said to include a reduction of 7.6 percent from 30 percent on all additional taxes by way of payments to non-budgetary funds, as well as a property tax exemption for all companies.
The flat income tax rate will also be lowered from 20 percent, to five percent for the first five years, and 12 percent for the following five years.
Numerous additional measures are also said to have been taken to provide safeguards for investors.
The free port zone will also cover and additional 15 municipalities near Vladivostok, as well as the ports of Nakhodka, Zarubino, and Posiet.
The Russian Ministry for the Development of the Far East says it expects that the free port regime will increase the Primorye Territory's gross domestic product (GDP) "threefold" over the next 20 years, and the the Russian Far East's GDP by 30 percent over the same period.
News of Vladivostok's possible switch to free port status was first reported by Ship & Bunker in March.
In April, it was reported that relatively low prices are moving bunker sales to Russia's Far East ports and away from China, Hong Kong, and Asian ports in general.
