Russia announced recently plans to build special economic zones in 14 sites in the Far East area to spur growth. Zhang Mengyuan shows us what that’s about.
The special economic zones will enjoy favourable policies in tax and land leasing, and will not be restricted by the quota limit of labour immigrants. Through these measures, Russia hopes to attract capital, technology and talent from surrounding areas to develop the Far East.
"If the special economic zones in the Far East succeed, the experience can be replicated in the European part of Russia. From a national strategy angle, this attempt is very important to Russia." Said Denis Raksha, Counsellor of Council on Science and Technology, State Duma Committee.
But there are still many challenges as the Far East regions have been underdeveloped for many years.
"Currently the Far East area lacks every thing - population, investment, technology, products, infrastructure. The construction of special economic zones is actually the startup of developing the Far East." Said Denis Raksha, Counsellor of Council on Science and Technology, State Duma Committee.
The Russian Far East Development Department has started negotiations with over 300 Russian companies in investing in the special economic zones. It also signed MOUs with several companies from China, New Zealand and Japan. The preparation work is expected to finish before September.