Vladivostok to Become "Free Port" in 2016

Vladivostok will benefit from an "easy customs regime," said Putin

Russian Far East port of Vladivostok, is set to become a "free port," with implementation beginning in 2016, local media reports.

It is not yet clear whether bunkers will fall within the duty free regime.

However, Primorsky Krai governor Sergey Nekhaev, has said the focus of the port's new status will be on developing logistics, ship repairs, manufacturing, export-oriented and import-substituting industries, and agriculture.

Legislation creating the free port, as well as amendments to over 20 federal laws, are expected to ease customs procedures and the terms of stay for foreigners, and the new status will give the area a right to import and export certain goods without customs.

In December, Vladimir Putin said the port had been chosen for the status as part of his "state of the nation" address and legislation is expected to be passed later this year.

"This will provide an opportunity to start implementing it [the law] already in 2016," said Nekhaev.

According to the report, the move is seen as a way to bolster trade in response to western economic sanctions.

Figures released by the Russian Association of Commercial Seaports are said to show that Russian Far East ports handled 135.5 million tonnes of cargo during the first 10 months of 2014, accounting for about a quarter of the total turnover of Russian ports.

Most productive was Vostochny, which handled 48.5 million tonnes of cargo, with Vladivostok in fifth place, handling 12.9 million tonnes.

Vladivostok will benefit from "an attractive easy customs regime," said Putin.

"Let me remind you that this is available in respect of Sevastopol and other ports of Crimea."

Vladivostok, at the head of Golden Horn Bay is close to Korea and China, and is currently home to the Russian Pacific Fleet.

Late last year, Lukoil predicted big changes to Russia's bunker markets as a result of western sanctions and evolving tax structures.