TOP and the Free Port Policy in the Russian Far East and Directions for the Korea-Russia Partnership

The objective of this study is to analyze the policies of ‘Territories of Advanced Social and Economic Development (TOP)’ and ‘Free Port’, and to seek implications for the direction of the Korea-Russia partnership in connection with the development policy of the Russian Far East. Under the common goal of regional development and a higher living standard, the TOP in the Russian Far East and the Free Port of Vladivostok have been materialized. But the former is focusing on greater production through attracting investments, while the latter puts its priority on expediting customs clearance and logistics stream aiming at increasing exports of goods to the Asia Pacific region. Companies resided in the TOP and the Free Port are expected to see a wide range of benefits including tax cuts, preferential tariff, easy customs clearance, better access to government bodies via a professional management entity, etc. Recently, the development policy of the Russian Far East seems to be focused on the TOP and the Free Port of Vladivostok. It is closely tied with Moscow’s ‘Shift to East’ agenda as well as industry relocation and re-industrialization policy, which have been implemented across the nation. In the mid to long term, the development policy of the Russian Far East is anticipated to bring sizable impacts on (1) the economic order in the Asia Pacific region, (2) development of resources and value chains in the Eastern Siberia due to climate change and (3) changes in the Eurasian logistics environments (vitalizing the Arctic Route.) Once succeeded, the development policy of the Russian Far East is expected to increase the odds of the sustainable development in the entire region of the Northeast Asia by adding growth engines.