The Japan Bank for International Cooperation (JBIC) will establish a company in Vladivostok to support Japanese firms’ business expansion in the Russian Far East region. It will provide co-financing with a Russian semi-public organization and fund, and advise Japanese firms to set up shop in special economic zones and free ports where preferential tax treatment is available. The move is expected to facilitate a set of economic cooperation programs that Japan has proposed in an effort to make headway in negotiations over the Northern Territories.
JBIC reached a final agreement on the plan with an external organization of the Ministry for the Development of the Russian Far East and a fund affiliated with a Russia’s economic development bank in Sochi on Feb. 16. It will start operations within the month. The new firm will receive inquiries from companies that are interested in doing business in the Far East region but lack information about it and propose business tie-ups with local firms. It will also communicate with local authorities regarding approval procedures and act as a mediator when problems arise. (Abridged)