People visit the exhibition hall of the 9th Eastern Economic Forum in Vladivostok, Russia, Sept. 3, 2024. (Xinhua/Cao Yang)

Russia invites international investors, notably from China, to fully utilize the new investment-attraction mechanism of the International Advanced Development Zones (IADs), said Aleksey Chekunkov, Russian minister for the Development of the Far East and Arctic.

The new preferential regime for Russia's Far East came into force on Jan. 1, 2026. Unlike previously introduced preferential regimes, IADs are specifically aimed at foreign investors and offer substantial benefits, Chekunkovin said in a recent interview with Xinhua.

Chekunkov noted that IADs offer enterprises a large package of benefits, including a zero corporate profit tax rate for 10 years, social insurance contribution rates significantly below the Russian average, access to land plots with infrastructure and a free customs zone regime.

The key advantage of IADs, he stressed, lies in providing investors with long-term stability guarantees -- tax and regulatory conditions remain unchanged throughout the entire project lifecycle for a maximum of 15 years. Moreover, the commercial information of resident companies will enjoy special protection.

According to Chekunkov, Russian authorities currently plan to establish IADs in five Far Eastern regions: Primorsky Krai, Khabarovsk Krai, Amur Oblast, Zabaikalsky Krai and the Jewish Autonomous Oblast. The minimum investment threshold for IAD residents is 5 billion rubles (62 million U.S. dollars). Projects must be aimed at producing high-value-added goods or carrying out activities from a special list approved by the Russian government.

Chekunkov added that the Russian-Chinese agro-industrial park in Primorsky Krai will become the pilot project of the IADs and will represent an industrial cluster, including agricultural product processing plants, agricultural machinery manufacturing factories, grain terminals and other facilities.

He added that under the existing preferential regimes, including the IADs and the Free Port of Vladivostok, more than 100 projects with foreign participation are being implemented, with about 1.2 trillion rubles (15 billion dollars) in investment attracted, 854 billion rubles (10 billion dollars) utilized, and 36 projects commissioned.

He said that the main sectors for foreign capital are oil and gas, chemical industry, mining and metallurgy, agriculture, food processing, and logistics.

Chekunkov believes that the main advantages of Russia's Far East for attracting Chinese investment are its geographical proximity to China, tax incentives and other preferences. Furthermore, the China-Russia comprehensive strategic partnership of coordination for a new era has also laid the foundation for the two countries to jointly carry out agricultural cooperation, resource processing, transportation and logistics projects.

Moreover, the minister said that Russia is ready for mutually beneficial cooperation with China and other partners in the field of high-tech manufacturing and hopes to jointly implement projects with Chinese enterprises for the production of equipment for the mining industry and agriculture.