Kuril Islands
Economy

Fishing is the primary occupation. The islands have strategic and economic value, in terms of fisheries and also mineral deposits of pyrite, sulfur, and various polymetallic ores. There are hopes that oil exploration will provide an economic boost to the islands.

In 2014, construction workers built a pier and a breakwater in Kitovy Bay, central Iturup, where barges are a major means of transport, sailing between the cove and ships anchored offshore. A new road has been carved through the woods near Kurilsk, the island's biggest village, going to the site of Yuzhno-Kurilsk Mendeleyevo Airport.

Gidrostroy, the Kurils' biggest business group with interests in fishing, construction and real estate, built its second fish processing factory on Iturup island in 2006, introducing a state-of-the-art conveyor system.

To deal with a rise in the demand of electricity, the local government is also upgrading a state-run geothermal power plant at Mount Baransky, an active volcano, where steam and hot water can be found.

In 2022, a special economic zone was established on the Kuril islands with special tax regimes, exemption from corporate income tax, VAT with reduced customs duties for 20 years. It is an important part of Russian government's plan to develop the Russian far east.
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