The development of the far-flung regions of Siberia, the Arctic and the Far East has become a strategic priority of Russia. It furthers Russia’s broader plan to establish itself as an important Asia-Pacific player, and diversify and forge partnerships with key regional players.
Poor infrastructure and sparse population in these areas, however, sit in high contrast to the developed and densely populated borders of China- the consequences of which can be destabilising for Russia. These regions are home to one of the largest reserves of hydrocarbon, metallurgical coke, rare-earth and precious metals in the world. Russia wants to develop these regions by wooing investors and forging regional value chains, integrating them with the developed economies of China, Japan, Korea and now India.
Reduced tax rates on the extraction of minerals and grant of rights to acquire land to exploit them for commercial purposes under the Homestead Act are some of the measures that the Putin administration has undertaken to promote balanced regional development. Read More
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