Vladivostok's free port to boost regional economy: official

The creation of Russia's first free port, which is now underway here in Russia's largest Far Eastern city, will boost trade and regional economy, a local official said.

The move will ease customs regulations, lead to the introduction of tax incentives for port operators, and lower the costs for ships coming into the port, said Primorsky Territory Governor Vladimir Miklushevsky.

It will make the city an attractive option for overseas trade and help stimulate the economy, said Miklushevsky.

The main privileges for residents will be the possibility of obtaining state land, tax benefits on property and land, and the free customs zone. Direct state aid can be obtained for the construction of infrastructure, but the principal source of financing must be personal resources and the territory's budget.

The free port is being created for a period of 70 years and will include four territories: the port and airport zone, an industrial zone, a scientific-promotional zone and a tourist-recreational zone.

In April, Russian President Vladimir Putin said the development of the Far East regions is a priority for the Russian government, urging the administration of the Primorsky Territory to accelerate the creation of a free port, on which a legislation would be adopted by the State Duma during the spring session. Endi