9 Apr 2018 12:47

Russia to close priority development zones where investment projects not being implemented - ministry

VLADIVOSTOK. April 9 (Interfax) - Russia's priority development zones will undergo review in 2018, the Russian Far East Development Ministry said in a statement.

"Some of the priority development zones at which investment projects are not being implemented right now will be closed. Their number [percentage share] does not exceed 5%," Russian Far East Development Minister Alexander Galushka is quoted in the statement as saying.

The priority development zones in the Far East are being created in clusters, in which several territories are united by government resolution into a single territory. "There is no investor demand for some of these territories. At the same time, we currently have an intensive process underway to increase the number of sites for specific investment projects," he said.

If there are requests to implement investment projects on the site of closed priority development zones, they will be reopened, Galushka said.

Deputy Prime Minister Yury Trutnev, who is the presidential envoy in the Far Eastern Federal District, has spoken in January of the need to conduct a review of the priority development zones.

Investment in the Far East increased more than 17.1% in 2017 compared with the nationwide average of 4.4%. Half of the growth was investment by residents of the priority development zones and the Free Port of Vladivostok, including foreign investment. The Far East accounts for 26% of foreign investment in Russia.