On the 9th in Russia, a law was passed to provide tax incentives for companies expanding into the Northern Territories.
While Japan imposes strict economic sanctions on Russia, which continues its military invasion of Ukraine, the Putin administration seems to have a desire to proceed with development by regarding the northern territory as its own territory.
Russian President Vladimir Putin signed a bill to amend the tax law on the 9th, and the amended law was enacted.
It states that tax systems on islands, including northern territories, will be exempted from corporate tax, property tax, land tax, etc. for up to 20 years for companies registered by the Russian government. ..
President Putin announced in September last year that he would like to actively attract investment from foreign companies in the Northern Territories, but the Japanese side has so far done so without harming the legal positions of both Japan and Russia. He expressed his position that it was incompatible with the purpose of joint economic activities.
On the other hand, in response to Japan's strict sanctions against Russia, which continues to invade Ukraine, along with Western countries, the Russian government unilaterally repays its external debt in its own currency ruble on the 7th of this month. Japan has been included in the list of recognized "unfriendly countries and regions".
Under these circumstances, the Putin administration seems to have a desire to proceed with development by regarding the Northern Territories as its own territory.