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Kuril Islands lure investors with tax breaks and Asia-Pacific trade perks

A strategic gateway to Asia with zero taxes for two decades? The Kuril Islands are rewriting the rules for ambitious investors. See how 67 firms already turned opportunity into billions.

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The image shows a poster with a map of the Russian Federation, featuring text and a logo. The map...
The image shows a poster with a map of the Russian Federation, featuring text and a logo. The map is detailed, showing the various geographical features of the region, such as rivers, mountains, and cities. The text on the poster provides additional information about the region and its inhabitants.

Kuril Islands lure investors with tax breaks and Asia-Pacific trade perks

SakhalinMedia, April 30 – Sakhalin Region Governor Valery Limarenko spoke at a presentation in Moscow showcasing the investment potential of the Kuril Islands, an event attended by nearly 200 participants. The focus was on business opportunities under two of Russia's most favorable preferential regimes—the Kurils Advanced Special Economic Zone (ASEZ) and the Free Port of Kurils—both established by Russian President Vladimir Putin, according to the Sakhalin regional government's press service.

"I invite you to the Kuril Islands, to Sakhalin Region—a place where new opportunities for business growth are opening up!" Limarenko declared as he opened Kuril Investor Day. The event was organized by Russia's Ministry for the Development of the Far East and Arctic, the Far East and Arctic Development Corporation, and the Sakhalin regional government.

The governor highlighted the Kurils' strategic advantages: proximity to the fast-growing Asia-Pacific markets, abundant natural resources, and unique natural landscapes. Businesses operating there enjoy a 20-year exemption from profit, property, land, and transport taxes, while payroll contributions for employees are reduced fourfold.

"Today, these incentives could be the decisive factor," Limarenko emphasized.

The Kurils also operate as a free customs zone, with imported foreign equipment and materials exempt from duties. Sergey Skaliy, deputy director general of the Far East and Arctic Development Corporation, reported:

"Sixty-seven companies are currently implementing projects on the Kuril Islands under the ASEZ and Free Port regimes. The regional economy has attracted 17.7 billion rubles in investment and created over 2,000 jobs. These include a fish processing plant, premium hotel complexes with restaurants and spas, and service-oriented businesses."

Vyacheslav Alenkov, deputy chairman of the Sakhalin regional government, outlined plans for the islands' technological development, while Natalia Stokalotskaya, executive director of VEB.RF's business division, detailed the mechanisms for preferential financing. Through the Ministry for the Development of the Far East, VEB.RF is currently supporting over 50 projects in the Far East with concessional funding. The event concluded with an invitation for investors to engage in substantive discussions.

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