China Is The Largest Foreign Investor In The Russian Far East

China ranks first among foreign investor countries by the volume of investment in projects implemented using investment incentive preferential schemes in the Russian Far East, according to Alexey Chekunkov, the Russian Minister for the Development of the Far East and the Arctic.

Discussing the advantages of the Russian Far East for Chinese investors compared to other areas of Russia, Chekunkov identified fundamental factors, saying, “The main advantage is a unique geographical proximity, as well as a comprehensive partnership and strategic interaction between our countries, aimed, among other things, at implementing projects in the agro-industrial complex, deep processing of resources, transport, and logistics.”

Chekunkov said that a unique system of preferential regimes also operates in the Far East, with tax and administrative benefits provided for investors, while support is also provided through the Corporation for the Development of the Far East and the Arctic. He said that over 100 foreign-invested projects have been implemented using the available tax incentives, the Vladivostok free port, and the Arctic free trade zone. He said that about ₽1.2 trillion (US$15.3 billion) of foreign investment has been committed to the area. Of this, ₽854 billion has been invested, with 36 projects now operational. The main FDI sectors are in the petrochemical, mining, agriculture, logistics, and construction industries.

According to Chekunkov, one of the largest regional foreign-invested projects is the construction of the Amur Gas Chemical Complex. A joint venture between Russia’s Sibur and China’s Sinopec, it is expected to become operational in the TAD Amurskaya Economic Zone in August this year, with the full production design capacity planned for January 2028. It will be the world’s largest polymer manufacturing facility.

In another example, Legendagro has successfully developed regional agricultural projects, while its logistics business, including road and rail transport and stevedoring operations in Primorsky ports, is carried out by a subsidiary in the Vladivostok Free Port. The total volume of investment in projects of this group alone exceeded ₽4 billion (US$50 million). Legendagro is a Russian-Chinese joint venture in the agricultural sector, focused on grain and oilseed development in Russia’s Far East, with major Chinese shareholders like Legend Holdings and Beidahuang Agricultural. They operate in Russia but have strong Chinese backing and are involved in crop production, processing, and logistics for export to China.

These successes are paving the way for additional developments, designed to attract still more investment and simplify the procedures. A unified preferential regime is being created in the Far East and the Arctic, which will combine all existing support mechanisms. That will allow investors to implement projects according to unified rules and simplify the procedures for interaction between the Russian state and corporate investors. That is expected to be introduced in 2027.