Special economic zones

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SIMPLIFIED RELATIONS WITH GOVERNMENTAL AGENCIES

To establish a most favourable environment and reduce bureaucratic obstacles, the ‘single window’ administrative treatment applies in all SEZs.

Representatives of various agencies have their windows in the same room located in a business centre. These regulators can include the Ministry of Natural Resources of the Russian Federation, the Federal registration Service, the Federal Migration Service, the Pension Fund etc.—this list is made on a case-by-case basis depending on investors’ needs.

This system allows residents to stay within the SEZ whenever they have to deal with governmental agencies, e.g. to obtain a construction permit or file financial statements.

 READY-MADE INFRASTRUCTURE

The infrastructure of special economic zones is funded by the federal budget.

Utilities: an investor is provided with the required area of land with all utility connections (heating, power, gas, water, and telecom cables) already in place.

Ready-made infrastructure enables investors to slash the costs of establishing new enterprises and to save time.

Customs: customs posts are open 24 hours a day, reducing the time for clearance of goods or equipment imported to the SEZs, which essentially operate as free customs areas.

Business: modern business centres, conference rooms, bank offices, equipped office buildings, restaurants, fitness centres—all the amenities necessary to ensure pleasant working conditions are provided.

Transport and logistics: SEZs proactively build roads, logistic centres and container yards. Industrial zone residents have immediate access to railroads.

 DISCOUNTS FOR LAND ACQUISITION AND OFFICE LEASE

One of the privileges granted to SEZ residents is the option to buy land at discounted prices. According to federal law, an investor has the right to purchase land lying under the buildings and structures existing upon it, upon commissioning of the facilities. Pending commissioning, investors take the plot on lease at a preferential rate that averages 2% of the land’s cadastral value.

Investors may also lease office premises in business centres and engineering buildings in the SEZ at discounted rates.

CUSTOMS PREFERENCES

The free customs zone treatment established in SEZs creates advantageous conditions for technology-intensive enterprises, which often require importing expensive equipment and components from outside of the country.

Foreign goods (equipment, raw materials, components, construction materials) imported into SEZs are exempt from customs duties, taxes and non-tariff regulation.

Goods produced within the Customs union (Russia, Kazakhstan and Belarus) are imported into SEZs are also exempt from export duties, any exclusions and limitations.

Until the 1st of January, 2017 SEZ investors (applied to investors registered before the 1st of January, 2012 only) are allowed  to import their products, which were manufactured within the SEZ using imported raw materials, into the territory of the  Customs union free from duties and taxes conditional upon sufficient processing of the goods.

There is also an option of choosing the customs duty rate to be applied, i.e. the rate for raw  materials or the rate for finished goods.

 

FREE CUSTOMS ZONE REGIME

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Tax Incentives


SEZ

Russia

Profit tax

15,5% - 16%

20%

Property tax

0%

2,2%

Land tax

0%

1,5%

Transport tax (USD/h.p.)

0

0,4 - 5,4

Social insurance funds *

14%

34%

*Limited to residents of innovation zones

ACCELERATED DEPRECIATION OPTION

Residents of industrial SEZs and SEZs for tourism and recreation are entitled to apply accelerated depreciation of fixed assets by setting a multiplier (max. 2).

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Types of Special economic zones

INDUSTRIAL SEZ

  • Republic of Tatarstan
  • Lipetsk Region
  • Samara Region
  • Sverdlovsk Region

SEZ for Innovation

  • Moscow
  • St. Petersburg
  • Moscow Region
  • Tomsk Region

SEZ for tourism and recreation

  • Kaliningrad Region
  • Republic of Altai
  • Altai Territory
  • Stavropol Territory
  • Primorye Territory
  • Republic of Buryatia
  • Irkutsk Region
  • North Caucasus Touristic cluster 

PORT SEZ

  • Ulyanovsk Region
  • Khabarovsk Territory
  • Murmansk Region

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INDUSTRIAL SEZ

Industrial SEZs are located in Russia’s most economically developed regions where most industries are concentrated. These areas are rich in transport infrastructure, natural resources, and skilled workforce.

Alabuga SEZ

Republic of Tatarstan

The Alabuga SEZ is located in the heart of the Volga Automotive Cluster represented by AvtoVAZ, GAZ, Sollers, KAMAZ and other manufacturers. Moreover, the area is also known for its petrochemical industry, with giants like Nizhnekamskneftekhim, Kazanorgsintez, Ufakhimprom and Salavatnefteorgsintez producing the entire range of polymers.

Priority industries:

• Motor vehicles and components

• Petrochemicals

• Construction materials

• Consumer goods

SEZ area: 1,997.34 ha.

Total infrastructure investment: over US$70 million.

Already spent: over US$350 million.

Lipetsk SEZ

Lipetsk Region

The Lipetsk SEZ is situated in European Russia, in the very heart of a major metal-processing region. It is here that large volumes of steel and ferrous metal products are manufactured. In addition, Lipetsk enterprises manufacture refrigerators and other home appliances. Novolipetsk Steel (NLMK), one of the world’s largest fully-integrated steel companies, is a stone’s through from the SEZ.

Priority industries:

• Finished metal products

• Mechanical engineering

• Vehicles, machines and components

• Construction materials

SEZ area: 1,024.34 ha.

Total infrastructure investment: over US$600 million.

Already spent: over US$180 million.

Tolyatti SEZ

Samara Region

Tolyatti SEZ is situated near major car makers (AvtoVAZ, GAZ and others). Thee Samara Regions also has a well developed chemical industry represented by TolyattiAzot (ammonia), KuybishevAzot (mineral fertilisers) and TolyattiKauchuk (synthetic rubber).

   Priority industries:

• Motor vehicles and components

• Construction materials

• FMCG.

SEZ area: 660 ha.

Total infrastructure investment: over US$263 million.

Titanium Valley SEZ

Sverdlovsk Region

Sverdlovsk Region is one of the most densely populated and industrially developed areas in the  Urals.  It is also one of the largest transport and logistics hub in Russia. The region’s rich natural resource base makes it attractive for the wide variety of businesses. The world’s leading titanium producer “VSMPO – AVISMA” is located next to the SEZ borders.

Priority industries:

  • Aircraft engineering and shipbuilding
  • Motor vehicles
  • Equipment engineering
  • Chemicals

SEZ area: 721 ha.

Total infrastructure investments: US$340 million.

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SEZ for Innovation

SEZs for innovation are situated in major Russian scientific centres, with high research and development potential.

Advantages for residents:

• Access to Russia’s rapidly developing IT and R&D market

• Skilled workforce

• Strong potential for cooperation with R&D centres

• Business incubators for start-up projects.

Zelenograd SEZ

Moscow

Zelenograd is a recognized centre of the Russian electronic industry. The district is known for its agglomeration of research and production companies with high scientific potential and modern technologies.

Priority industries:

• Micro-electronics

• Optical electronics

• Nanotechnology

• Information technology

• Biotechnology

SEZ area: 207 ha.

Total infrastructure investment: over US$1 billion.

Already spent: over US$350 million. 

St. Petersburg SEZ

St. Petersburg

St. Petersburg is a centre of precision instruments and electronics industries, which are built upon a solid scientific base with numerous research centres, think tanks, affiliated institutes of the Russian Academy of Sciences, and academic institutions.

Priority industries:

• Information technology and telecommunications

• Medical technology

• Nanotechnology

• Precision instruments industry.

SEZ area: 129 ha.

Total infrastructure investment: over US$500 million.

Already spent: over US$100 million.

Dubna SEZ

Moscow Region

Dubna is a recognized centre of science and the headquarters of the United Institute for Nuclear Research, Space Communications Centre, the Lomonosov Nuclear Physics Research Institute, and other specialised institutions.

Priority industries:

• Software

• Information technology and telecommunications

• Nanotechnology

• Nuclear technology

• Biotechnology.

SEZ area: 187.7 ha.

Total infrastructure investment: over US$605 million.

Already spent: over US$250 million.

Tomsk SEZ

Tomsk Region

Tomsk is one of country’s oldest educational and scientific centres and the cradle of Russian nanotechnologies. It boasts the highest number of researchers holding doctoral degrees.

Priority industries:

• IT and electronics

• Medicine and biotechnology

• Nanotechnology and nanomaterials

• Resource saving technologies

SEZ area: 207 ha.

Total infrastructure investment: over US$680 million.

Already spent: over US$140 million.

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SEZ for tourism and recreation

Tourism and recreation zones are situated in the most picturesque regions, with opportunities for development of beaches and resorts, ecological and adventure tourism, and extreme sports.

Curonian Spit SEZ

Kaliningrad Region

Located in Russia’s westernmost exclave, the Curonian Spit is a sand peninsula that separates the salt-water Baltic Sea from the fresh-water Curonian Lagoon. This national park is a unique tourist site with inimitably beautiful landscapes, in which pine forests interleave with snow-white quartz sand beaches and dunes. The climate is favourable for holidaymaking from May to November. 450,000 tourists visited the Curonian Spit in 2009.

Altai Valley SEZ

Republic of Altai

The Republic of Altai is a wonderful mountainous area, which is multifaceted, versatile and extremely beautiful. The purest air, magnificent mountains, and numerous rivers, lakes and waterfalls are favourable for developing all types of tourism.

The Turquoise Katun SEZ

Altai Territory

The Altai Territory incorporates the entire variety of Siberian nature, from mirror-like lakes and white-water rivers to dry steppes and valleys and from virgin boreal forest to Alpine meadows and glaciered mountain peaks. The Altai Territory is rich in curative mineral springs. Thousands of tourists come here every year.

Grand Spa Yutsa SEZ

Stavropol Territory

The Stavropol Territory has long been famous for its mineral waters and peloids. Salubrious natural resources make it the best spa resort in Russia. The area has a great potential for hospitality and health industries.

Russky Island SEZ

Primorye Territory

The Primorye Territory attracts tourists with its natural bays and diverse beaches. Abundance of vegetation, proximity to Japan, potential for marina construction and sea tour business make the island a lucky site for tourist facilities. The island will host an APEC summit in 2012.

Baikal Harbour SEZ

Republic of Buryatia

Baikal Gates SEZ

Irkutsk Region

Lake Baikal is the deepest and oldest lake on the planet, and the biggest natural fresh water reservoir. The water surface area is 31,722 sq. km, which is roughly equal to the area of such countries as Belgium, the Netherlands, or Denmark. According to scientists, the lake originated 25 to 35 million years ago. Its depth is 1,642 m. Baikal water is extremely pure and saturated with oxygen; its transparency reaches to 40 metres. Lake Baikal is surrounded by Siberian boreal forests, mountain ridges and steppes. The region is favourable for developing all types of tourism. Located in the geographical centre of Russia, Lake Baikal is annually visited by more than 800,000 tourists from all over the world.

North Caucasus Touristic cluster (6 zones) 

North Caucasus is one of the most popular touristic and recreational areas. It hosts millions of tourists from Russia and other countries annually. Various climatic and landscape conditions allow for both seasonal (mountain skiing and snowboarding, etc.) and all-the-year-round resorts.

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PORT SEZ

Port SEZs are located in close proximity to global marine trade routes and air corridors.

Ulyanovsk SEZ

Ulyanovsk Region

• Close proximity to transport corridors that handle 19% of global air traffic

• Access to the foreign-manufactured aircraft maintenance and repair market

• Access to a developed air transport infrastructure

• Access to skilled workforce

• Existing aircraft component manufacturers

• World’s second longest runway.

SEZ area: 120 ha (with subsequent expansion up to 640 ha).

Total infrastructure investment: over US$35 million.

Sovetskaya Harbour SEZ

Khabarovsk Territory

• Access to the Tartar Strait, the only natural shelter that protects ships from any wind direction

• Proximity to global trade routes

• Access to the Baikal—Amur Mainline, a transfer point on the West/East transit corridor

• Access to a high-speed transit route that reaches the Pacific Coast of the U.S. and Canada

SEZ area: 290 ha (with further expansion to 450 ha).

Total infrastructure investment: more than US$130 million.

Murmansk SEZ

Murmansk Region

  • Access to transport and power infrastructure
  • Access to the Northern and Transatlantic transport corridors
  • Proximity to the Arctic oil and gas deposits

SEZ area - 3,050 ha

 

INVESTORS

More than 250 resident investors are registered in Russia’s special economic zones.

These include such global giants as Yokohama, Isuzu, Air Liquide, Bekaert, Rockwool, Novartis, Plastic Logic and others.

More than 7,000 new jobs were created in all SEZs; volume of planed investments – about US$10 billion.

Products worth US$920 million were manufactured in the last three years.

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GOVERNING BODIES

Ministry of Economic Development of the Russian Federation decides on the key policy issues in creating, regulating, and managing the SEZs.

24 existing zones along with the ones in progress are controlled by Special Economic Zones JSC.

SEZ JSC was established in 2006 and is wholly controlled by the state. Since adoption of the SEZ Law in 2005 and until 2010, the company managed the construction of infrastructure. In 2006 to 2010, 258 investors from 18 countries came to SEZ, and this process is gaining momentum.

Information brochure on SEZ

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