Chinese Investments in Russia's Far East Increased by One-Third in 2016

Russian Far East Development Minister Alexander Galushka stated on Friday that Chinese investment into the Far East region grew by one-third in 2016, noting that the Chinese investors appreciated the new opportunities of businesses in the region.on.

KHABAROVSK (Sputnik) — Nearly 30 projects worth $4 billion are currently being developed in the Russian priority development areas (PDA) and the Free Port of Vladivostok involving Chinese investments in the region have increased by one-third last year, Russian Far East Development Minister Alexander Galushka said Friday.

"[The number of investment projects in PDAs] is nearly 7 percent of all investments attracted in Far East in past three years," Galushka said at the first meeting of the Russian-Chinese intergovernmental commission for cooperation and development of Russia's Far East and China's northeast.

He noted that the Chinese investors had appreciated new opportunities for businesses in Russia's Far East.

Earlier, the Russian government has approved the establishing of 13 PDAs in the Far East, including the Vladivostok Free Port, since the law on PDAs came into force in early 2015. The law seeks to develop Russia's remote regions by providing tax breaks and other benefits to PDA resident companies, thus accelerating investment.

Russian President Vladimir Putin signed a legislation establishing the Vladivostok Free Port on July 13, 2015. The law, which came into force on October 12, 2015, allows for the establishment of special regulation procedures for certain industries in Vladivostok. A free port has the right to perform duty-free import and export of goods and is excluded from the state customs territory. Vladivostok previously had this status between 1861 and 1909.