Asian investors drawn to Russia’s new TAD Far East economic zones

KhabarovskTAD: Russian Prime Minister Dmitry Medvedev has officially launched the country’s first three Territories of Accelerated Development (TADs), the new special Far East economic zones with preferential tax regimes designed to attract investors from Asia and Australia. The Khabarovsk and Komsomolskaya TADs are both in the Khabarovsk region, while the Nadezhdinskaya TAD is in Primorye.
The government is looking attract $620m, $210m and $120m of investment into each territory respectively, with Khabarovsk expected to create 3,000 jobs in the metallurgy, transport and logistics. Komsomolskaya is expected to generate a similar number of jobs in aircraft manufacturing, while it is hoped that a further 1,600 jobs will be created in Nadezhdinskaya in the transport, logistics, and food processing sectors.
 Investors in TADs will be eligible for tax breaks for 5 to 10 years, and companies that establish operations within the TADs will pay reduced customs duties and will be entitled to preferential rates of income tax and VAT.
Moscow has also approved the establishment of six more TADs, all also in the Far East.
All three of the new TADs have already attracted Russian investors, according to Ivan Tonkikh, the head of Direct Investments Department of Ministry for Development of Russian Far East, who claims that his ministry is also in talks with ten foreign investors, including Australia’s Tigers Realm Coal, Japan’s JGC Evergreen and Singapore’s Baoli Biutum.

Source: rbth