Creation of Free Port Magadan might help double GRP of Magadan region, local governor says
The Magadan region Governor Vladimir Pecheniy believes that the creation of the economic zone at the existing port in Magadan will attract new investors and will encourage economic development of Kolyma region, the regional government press office said.
"The economic zone on the basis of the existing port, similar to maritime porto franco, can more than double the gross regional product (GRP) in the Magadan region. It could be a great help to our fishermen, who do not presently have capabilities to process the catch in large quantities in the capital of Kolyma. The logistics and business solutions at reduced rates in Magadan would be a plus for opening and doing business in Kolyma," the press service quoted Magadan Gov. Vladimir Pecheniy as saying.
The governor noted that the draft federal law "On Free Ports in the Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation" includes a procedure of free customs zone and creates economically attractive conditions for individual entrepreneurs and legal entities, including foreign businesses.
Thus, the benefits extend not only to the construction and operation of port infrastructure, storage of goods and equipment of ships, but also the production and processing of goods (including aquatic biological resources), operations on preparation of commodities for sale and transportation, as well as wholesale and trading.
The law on special economic zone, which is effective in Magadan region until 2025, has already provided a number of preferences to its participants, the official said. He believes the new incentives will attract additional investors, who have not yet considered the Kolyma as a promising business area due to high transport and other costs as the this Russia's North-East region is quite remote from the center of the country.
Earlier, the presidential envoy in the Far Eastern Federal District Yuri Trutnev said that he has received a lot of proposals from regional governors for the creation of economic zones on the basis of operating ports, similar to the seaside porto franco.
On July 13, 2015 Russian President Vladimir Putin signed the bill “On the Free Port Vladivostok” into the federal law, after the draft law had passed through all the procedures and approvals. The law becomes effective 90 days after its signing, that is, on October 12, 2015.
