Russian President Vladimir Putin has announced an ambitious plan to transform Russia into a high-wage economy while launching a “United Preferential Business Regime” for Far East investors starting January 1, 2027.
Under the scheme, investors will benefit from 0% federal tax for 5 years, reduced regional tax, low insurance premiums, and reimbursement of infrastructure costs. Putin insists this bold economic strategy will not only attract global investors but also raise living standards and reshape Russia’s economic future.
Is this the beginning of a new Russian economic powerhouse — or just political posturing?
00:00The government has repeatedly made decisions to expand the borders of specific advanced development territories to fit new projects.
00:08The united preferential regime for business starting from January 1st, 2027.
00:15I would like to say once again the economy of Russia should become the high wage economy.
00:20The forest of the Arctic building the economy of the future should improve the well-being of people, increase their income, lead to structural changes in employment in favor of the skilled and well-paid jobs.
00:35This is the logic and the cross-cutting theme of the strategy that we are implementing in this region and all over the country.
00:43I would like to say once again the economy of Russia should become the high wage economy.
00:49And it's not nothing.
00:52It's not populism.
00:53There is an economic idea behind this.
00:56In the last 10 years the average salary in the Far East increased 2.5 times.
01:00And by the result of the last year it was more than 100,000 rubles per month.
01:05Well, colleagues know about them mainly.
01:08Nevertheless, for our guests I would like to reiterate that.
01:11First of all, these are lowered insurance premiums rates.
01:157.6% for 10 years, the zero federal income tax for five years.
01:24Reduced regional income tax for the first five years it would be zero to 5% and 10% for the next five years.
01:34A preferential rate for mineral tax.
01:37Besides that, the advanced development territories provide for the free customs zone as well as partial reimbursement of infrastructure costs and preferential business loans.
01:50Why am I talking so much detail on the terms of the advanced development territories?
01:55They are unique for the business, not simply for our countries but also for many other countries, for our colleagues and friends from other countries.
02:04The instrument has proved to be efficient.
02:07It allowed us to launch many investment projects and to systemically support businessmen and companies at the most important stage, at the construction stage, when the production is streamlined and when the full design capacity is reached.
02:25Eighteen territories were established in the Far East where 300 residents are operating.
02:32They invested almost four trillion ribbons of investment, creating 95,000 jobs.
02:38The government has repeatedly made decisions to expand the borders of specific advanced development territories to fit new projects.
02:47And given the accumulated successful experience, I suggest we make a drastic step, seamlessly preserving terms for active investors to launch throughout the whole territory of the Russian Far East and Arctic,
03:08the United preferential regime for business starting from January 1st, 2027.
Be the first to comment