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11 September 2018

Vladimir Rashevsky spoke about business incentives for the development of projects in the Far East

Incentives for investment development should be targeted not only at new projects and companies, but also at existing legal entities, SUEK’s CEO Vladimir Rashevsky said at the session of the Eastern Economic Forum (EEF) ‘The Far East As The Centre Of Economic Cooperation With APR: Business And Government Dialogue’.

‘Now all the incentive regimes are tailored to suit new and dedicated companies, whereas for the existing legal entities, everything is more complicated,’ he said. At the same time, it is inconvenient to create new companies for a specific project, the executive explained, because often this is a matter of licences and labour resources.

Vladimir Rashevsky called for amendments to the Tax Code, which would allow for the differentiation of the accounting of expenses and profits of old and new businesses within the same company, old and new tax bases, in order to receive benefits for new projects within the existing legal entities.

He also pointed to the problems of obsolete infrastructure and the lack of affordable quality housing in the region. The business is ready to solve these independently, but would like to receive compensation in the future, in the form of tax incentives for future investment projects, he noted. Vladimir Rashevsky proposed to solve the problem of affordable housing by subsidising the mortgage rate.

In total, SUEK invested over 53 billion roubles (about $759 million) in Far Eastern projects, SUEK’s CEO said.

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