A new offshore zone will be created on the Kuril Islands. Russian President Vladimir Putin said this at the Eastern Economic Forum.

"We hope that preferential treatment in the Kuril Islands will bring tangible results for the development of the islands, for launching promising projects, first of all in such areas as tourism, sea-culture and processing," the president said.

According to him, the preferential treatment will include the complete abolition of taxes on income, property and land for ten years. In addition, residents will be entitled to pay insurance premiums at a reduced rate of 7.6 per cent and a free customs zone will appear on the territory of the offshore.

Foreign companies will also be able to take advantage of the special regime, provided that they will actually work in the Kuril Islands, the president said.

As a reminder, there are two special administrative areas (SARs) in Russia since 2017, which are unofficially called Russian offshores: in Primorsky Krai and in Kaliningrad Oblast.

Made in Russia / Made in Russia

Author: Maria Buzanakova