Russia's Far East has attracted a total of USD 55 billion in investments in the past three years, largely as a result of a wide ranging program of incentives introduced by the government.

Below is an overview of the key incentives available to foreign investors who are increasingly active in the region's numerous business projects. 

Key incentives in the Russian Far East

Territories of Advanced Development (TORs)

A “Territory of Advanced Development” (also known as TOR) is a special regime of treatment of foreign investors who injected funds and capabilities to Russia's Far East, whereby foreign investors are provided with certain incentives and benefits. So far, 18 TORs are established in various parts of Russia's Far East, in which 433 investment projects have been launched during last few years. Foreign investors enjoy the following benefits under TOR regime:

The term of CPT pay-back period (before the break-even period) for major investment projects is expected to be extended starting from 2018 (Draft Law No. 240980-7):

 5 years – for investments from USD 8.6 million to USD 17 million;

 6 years – for investments from USD 17 million to USD 1.7 billion;

 9 years – for investments over USD 1.7 billion.

During the Eastern Economic Forum held in Vladivostok in September 2017, new incentives were announced:

 a grandfathering clause guaranteeing 10 years stability of the tax regime;

 extension of the CPT incentives from 10 to 19 years for major projects;

 further social insurance incentives.

Special Investment Contracts (SPICs)

A “Special Investment Contract” (also known as SPIC) is an investment contract, under which a private investor undertakes to create, modernize or operate a production facility in Russia, while the Russian federal (or regional) government assumes the obligation to provide a private investor with certain benefits (e.g., a stable and preferential tax regime) to facilitate product manufacturing. Tax incentives for SPICs are currently being developed, e.g., Khabarovsk Region reduced CPT rate for SPICs from 17% to 0%, Kamchatka Region reduced CPT rate to 15%. Other regions may follow

Regional Investment Contracts (RICs)

A “Regional Investment Contracts” (also known as RIC) is an investment project, having a special tax incentives regime as summarized below:

Special Bodies Supporting the Activities in the Russian Far East 

The Russian Government established special bodies responsible for the development of the Russian Far East and planning of activities in the region:

 Ministry for the Development of the Russian Far East – responsible for the overall supervision and planning;

 Far East Investment and Export Agency – responsible for attracting investments;

 Agency for Development of Human Resources in the Far East – responsible for the procurement of sufficient human resources in the region;

 Corporation of Far East Development – responsible for the development of TORs and Free Port Vladivostok;

 Far East Development Fund – responsible for the financing of investment projects.

An interactive map of ongoing projects in the Russian Far East is available at