The capital of the Far East and Baikal Region Development Fund can be increased from 15 billion rubles to 100 billion rubles.

President Vladimir Putin announced this on November 29 at a meeting of the State Council Presidium dedicated to the socio-economic and demographic development of the Far East and Transbaikalia, RIA Novosti reports.

“If the fund shows its effectiveness, we will continue to replenish its capital so that it ultimately reaches 100 billion rubles,” the head of state said.

A little earlier, Putin said that the Ministry for the Development of the Far East has not yet lived up to its purpose. “Considerable resources” that are allocated for the development of the region are “eroded”, and the approved plans remain “on paper”. Putin added that he is ready to return to discussing the issue of creating a state corporation for the development of the Far East.

The head of state also proposed to exempt new production facilities in the Far East with investments of at least 500 million rubles from the federal part of the income tax for 10 years, and new deposits of solid minerals with a similar amount of investment - from the mineral extraction tax for the same period.

At the same time, Putin stated that “we do not have the right to consider the Far Eastern regions solely as raw materials”; it is necessary to ensure “modern balanced development” of these subjects.

100 billion rubles may be allocated to the Far East