"Passing ball to new Duma convocation" and Far East’s development: Putin’s speech at EEF

Eastern Economic Forum"Passing ball to new Duma convocation" and Far East’s development: Putin’s speech at EEF The first oil from Vostok Oil will be shipped shortly, the Russian president said © Peter Kovalev/TASSVLADIVOSTOK, September 3. /TASS/. Russian President Vladimir Putin said at the plenary session of the Eastern Economic Forum (EEF) that he wants to "pass the ball to the new convocation of the State Duma," adding that he expects deputies to play an active role in improving the country’s business climate. The Russian leader also announced the move to the next stage of the development of the Far East, a renewed strategy for the coming decade. TASS has compiled the key statements by the head of state. Far East’s development Russia’s strategic policy is to turn the Far East into an area for cooperation and dynamic change: "Russia is an active participant in investment and trade cooperation in the Asia-Pacific region. We interact on an equal footing with our partners and the region’s leading integration associations. Our strategic policy is to make the Far East an area for cooperation and dynamic change in the economy and infrastructure, technological development, workforce training and, of course, the social area." Around 25 trillion rubles ($287 bln) in capital investments have been invested in the Russian Far East over the past 11 years, while the region's gross product has more than tripled: "I would like to point out that about 25 trillion rubles in capital investments have been attracted to Russia's Far Eastern regions over 11 years. The rates of investment activity, industrial growth, and construction here consistently surpass the national average. As a result, the gross regional product of the Far East has more than tripled over 11 years, which is a very rapid pace." Unemployment in the Far East has recently fallen fourfold to 2.2%, reaching the national average: "Unemployment in the Far East has decreased fourfold. This year it has been at 2.2%, which is the level of the national average. This unemployment figure is a record low for the region." The Russian Far East is currently experiencing growth, with high economic activity recorded in nearly all of its constituent entities: "High economic activity is recorded across practically all Far Eastern regions of the [Russian] Federation. This is particularly noticeable in small and medium-sized businesses, which employ approximately one-third of the working population. This is a strong indicator. What does it show? It shows that the Russian Far East is on the rise. Businesses and entrepreneurs see clear prospects for developing and expanding their enterprises. Whereas citizens understand that their in-demand knowledge and competencies can yield tangible results, both for the region and for the country as a whole, and for people individually." Russia is moving into the next stage of the Far East’s development, an updated development strategy for the next 10 years: "We are moving to the next stage - implementing an updated development strategy for the Far East, the Far Eastern Federal District, designed for the next 10 years, through 2036. The key task is to maintain the strong pace of development achieved so far and launch new investment cycles in the region." Quantum communication networks must be expanded to all regional capitals in the Far East by 2030: "As of today, the length of the main quantum network in Russia already exceeds 7,800 kilometers. It connects 27 constituent entities of the Russian Federation, including 13 cities with populations of over one million. I would like to draw the attention of the government and my colleagues at Russian Railways to the fact that quantum communication networks must be extended to the Far East by 2030, reaching all its regional capitals, thereby integrating them into a high-speed information and data exchange network." Infrastructure loans repaid by Far East regions may be reinvested into the implementation of master plans in those constituent entities. Unified preferential treatment Unified preferential treatment for the Far East and the Arctic will take effect on January 1, 2027: "We are launching a business support system that is unprecedented in scale and scope. A unified preferential regime will begin operating across the entire Far East and Arctic starting as early as January 1 of next year." The concept behind preferential treatment is to ensure that support tools are not tied to a specific special zone or priority development area, but are instead carefully and effectively tailored to specific types of activities across the entire region: "In other words, an investment project anywhere in the Far East or the Arctic will have access to its own specific menu of incentives." The full range of available mechanisms will include reduced insurance contributions, tax and customs incentives, and assistance with infrastructure connections and constructing production facilities, among other things. Existing benefits for residents of existing priority development areas in the Far East will remain even after the introduction of the unified preferential regime: "At the same time, existing benefits for current residents of priority development areas and the Free Port of Vladivostok will be preserved in full, of course." The system of preferential regimes has already been successfully implemented in the Far East and the Arctic zone: "They include priority development areas, the Free Port of Vladivostok, the special administrative region on Russky Island, and special tax treatment on the Kuril Islands." These tools have already made it possible to attract trillions of rubles in investment and generate 200,000 new jobs. "Passing ball to new Duma convocation" Putin would like to "pass the ball to the new convocation of the State Duma," counting on deputies to play an active role in improving the business climate: "I want to pass the ball, so to speak, to the new convocation of the Russian State Duma, which will be elected soon, in September. I am expecting deputies to take an active stance and engage in fruitful legislative work to improve the business climate." It is important to continue establishing favorable and predictable conditions for investors, relying on requests from entrepreneurs and needs of regions, being guided by Russia’s national interests. Need to remove barriers for business It is necessary to remove bureaucratic barriers for business and avoid excessive control and "tightening the screws": "We need to consistently lift bureaucratic barriers for entrepreneurs and reduce the administrative burden. It even makes no sense to introduce tax incentives while simultaneously, so to speak, tightening the screws through additional inspections and excessive control and oversight. I am saying excessive in particular. I believe colleagues from relevant ministries and agencies will hear the message." It is important to eliminate the risk of double taxation for businesses in the Far East: "I’m asking to adjust the legal framework accordingly. It is important to continue creating favorable, predictable conditions for investors, relying on the requests of entrepreneurs and the needs of the regions, being guided by Russia’s national interests." Extraction of resources Russia will continue to expand mineral extraction in the east and north of the country, including oil, gas, and gold: "For industrial growth and the development of high-tech industries of the future, we need to strengthen our foundation, our resource base. We will continue developing mineral extraction in the east and north of the country, including oil, gas, coal, gold, and rare earth metals. Of course, [we will do so] using clean technologies, as is already being done at a number of our enterprises." Natural resources extracted in the Far East and the Arctic should increasingly be processed locally: "This refers to metallurgical, gas, and petrochemical facilities, fertilizer production, etc. ensuring that value chains are established, jobs are created, and regional and municipal budget revenues grow right here, in the Far Eastern and Arctic constituent entities of the Federation." Special legal regime A special legal regime designed to rapidly test advanced technologies, including UAVs for use in the civilian economy, is set to launch in the Russian Far East starting January 1, 2027: "Its essence lies in the rapid, unhindered testing of cutting-edge technologies, such as agricultural drones, industrial robots, telemedicine, or artificial intelligence for medical diagnostics." Eased public procurement system A streamlined public procurement system, including through marketplaces, will launch in Russia on October 1 as a pilot project: "A new federal law enabling more active use of platform-based solutions for procurement at regional and local levels, initially on a trial basis, comes into force on October 1. This applies not only to the Far East and the Arctic but to all constituent entities of the Russian Federation. Their educational institutions, such as kindergartens, schools, and colleges, will be able to purchase goods directly, so to speak, from the shelf of domestic marketplaces." Transportation Russia plans to make navigation along the Northern Sea Route year-round. Authorities expect the volume of freight traffic along the Trans-Arctic Transport Corridor to reach at least 70 mln tons per year: "This means it will at least double from the current level." It is planned to link the Arctic marine terminals with rail and inland waterway networks to ensure cargo flows from Central Russia, the Urals, and Siberia: "We also plan to connect Arctic marine terminals with rail and inland waterway networks so that cargo flows from Central Russia, the Urals, and Siberia could gradually be tied to this route, and to facilitate the delivery of imported goods, of course." Transportation of civilian cargo using low-altitude drones needs to be tested in the regions of the Far East and the Arctic: "As unmanned aviation develops, low-altitude airspace is becoming a transport artery as busy as railways and waterways. It is essential to establish standards for autonomous transportation of civilian cargo using drones already now." Vostok Oil The first oil from Vostok Oil will be shipped shortly: "I would like to note a milestone event that will take place soon. At Vostok Oil, one of our largest Arctic projects located in the Krasnoyarsk Region, a trunk oil pipeline to the new Bukhta Sever terminal will be put into operation. The first oil will also be loaded and delivered to buyers via our Arctic sea routes." Creation of modern financial center on basis of Eastern Exchange The government and the Central Bank must carefully consider the creation of a modern financial center based on the Eastern Exchange: "To expand the participation of international capital in our Far Eastern and Arctic projects, we need to leverage the potential of the Eastern Exchange. As I said earlier, we plan to establish a modern financial center on its basis. I’m asking the government and the Bank of Russia to thoroughly address all these issues." 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