Udmurtia Horizons of Cooperation

1200px-Coat_of_arms_of_Udmurtia_svgThe Udmurt Republic is one of the rapidly developing and investment-attractive regions of the Russian Federation with great potential for innovation and big competitive advantage.
The republic’s enterprises, along with military equipment, produce equipment for nuclear power plants, telecommunications systems for space, sporting and hunting weapons, communications equipment, radio electronics, medical equipment, oil and gas equipment, food products and so on. All products manufactured in Udmurtia are known for being high quality, reliable, innovative, environmentally-friendly and much in demand in home and foreign markets.
The Udmurt Republic is always open to new ideas and technologies and committed to boosting foreign economic activity. We support the existing exporters and help new companies to promote their products in the world markets.

Download full presentation of the Udmurt Republic.

Contact information

THE GOVERNMENT OF THE REPUBLIC OF UDMURTIA
Republic of Udmurtia, Izhevsk, Pushkinskaya Street, 214
Phone:+7 (3412) 497-010
Email: gov@udmnet.ru
Web site: http://www.udmurt.ru

MINISTRY OF ECONOMY OF THE REPUBLIC OF UDMURTIA
Republic of Udmurtia, Izhevsk, Pushkinskaya Street, 214
Phone: + 7 (3412) 497-015, 497-441
Email: mail@economy.udmlink.ru
Web site: http://economy.udmurt.ru

UDMURT CHAMBER OF COMMERCE
Republic of Udmurtia, Lenin Street, 101
Phone:+7(3412)900-210
Web site: http://www.udmtpp.ru/

EC «UDMURTIA»
Tel. / Fax: + 7 (3412) 733-532, 733-581, 733-585,
733-587, 733-591, 733-624, 733-664
E-mail: office@vcudm.ru
Web Website: http://www.vcudm.ru
Executive Director – Yevgeniya Vitaliyevna Trofimova

The SEZ «Аlabuga».

Analysis of over six hundred zones from hundred and twenty countries conducted by experts of British edition of Foreign Direct Investment allowed to assign to the SEZ “Alabuga” a place among top 40 zones list. Such a recognition from professionals in investment field contributed to the impressive development pace of the SEZ “Alabuga”.
Just six years ago, it seemed unlikely that a Greenfield near the town of Yelabuga will turn into an industrial site with operating factories of world-known international and Russian companies.
However, the fact remains that the unprecedented tax and customs preferences, low prices for raw materials and energy, prepared industrial infrastructure and a lot of attention to each project by the President of the region allowed the SEZ “Alabuga” very quickly to make its mark on the international stage as a serious business partner. As an accomplishment of these years of hard work “Alabuga” raised up to one billion dollars of investments.
These are the investments of private companies that obtained a resident status of the SEZ “Alabuga” and put up a construction and brought in equipment to their own plants. So far one billion invested, three thousand jobs created which are main indicators of the effectiveness of the Special economic zone.
In 2012 the SEZ “Alabuga” introduced a new bonus for investors. Earlier, Tatarstan Parliament has approved an additional tax credit for resident companies. Subsequently republican part of income tax was set to zero percent for five years since tax base introduction date.
The second development stage of the SEZ “Alabuga” was officially unveiled for its full use for construction purposes. And the managing company plans to increase the total area of the Special economic zone by preparing third development stage territory with up to 4000 hectares or 40 square kilometers. To imagine the whole scale of the project it is noteworthy that famous English city of Cambridge is of the same space.
As already mentioned, one of the key indicators of the special economic zone’s success is a number of attracted investors. The managing company of the SEZ “Alabuga” reached an agreement with 12 investors with a total announced investment volume of 14.3 billion rubles which is half a billion USD. Among them: international brands like 3M and Armstrong that over many years made it into the “Fortune” list of the world largest corporations.
Invaluable in choosing the SEZ “Alabuga” as a site for the production is a meeting with potential investors during an event: “The success story of the SEZ” Alabuga”, held on September, 2012 in Moscow. Positive evaluation of the Special Economic Zone, obtained from direct participants of the event: President of the Republic of Tatarstan Rustam Minnikhanov, Vice-President of “Sberbank” Sergey Borisov, President of American Chamber of Commerce in Russia Andrew Somers, as well as executives of residents, persuaded a number of companies to sign an agreement on industrial activity and allowed to open a constructive dialogue with a number of potential new investors.
On current rate of investment activity by the end of next year the total number of residents will increase to 45. According to a long-term development strategy of the SEZ “Alabuga” until 2020 the SEZ will gather up to 120 resident companies with a total investment volume of $ 12 billion which will turn the site into a powerful industrial center.
The managing company in the current 2012 along with organizing a direct contact with investors and building up of an industrial infrastructure came up with a strong and consistent work with employees, future residents’ personnel and the managing company. Top managers of the SEZ “Alabuga” shared with high school and college students of Yelabuga, Naberezhnye Chelny and Kazan their own working experience and put forward to think about the beginning of their own careers. About one hundred best students of them were invited and passed internships at SEZ “Alabuga”. As for plans, the company will continue to work with young specialists. The best of the students will have practical internships in overseas factories and will have an opportunity to be employed in the SEZ “Alabuga” factories.
A tremendous value in reporting the advancements of the Special economic zone “Alabuga” belongs to mass media. The activities of the managing company, opening of factories, new residents are great news hooks, actively replicated by local, federal and foreign media. The managing company will continue to pursue a policy of openness and transparency of information, and will render all possible assistance to journalists in organizing press tours and preparing materials about the Special economic zone “Alabuga”.

What does the Special economic zone «Alabuga» expect? Predicting the future is rather an ungrateful task, though the analysis of macroeconomic indicators, investment volume and last year positive practice statistics enables us to suggest that among operating and recently established special economic zones in Russia the SEZ «Alabuga» will maintain leading positions in key figures such as attracted and factual investments and number of created jobs.
The SEZ «Alabuga» will launch six new productions, including JSC «ZIO» (Russian manufacturer of power tools and equipment by «Interskol» company), CJSC «Trakya Glass Rus» (production of float glass by «Sisecam» holding), CJSC «Automotive Glass Alliance Rus» (production of automotive glass by «Sisecam» holding), LLC «SARIA Bio-Industries Volga» (production of meat-bone and animal fat by German «Rethmann» holding), LLC «Kastamonu Integrated Wood Industry» (MDF and particleboards producing plant), LLC «Alabuga-Fiber» (production of carbon fiber by «Composit» holding company). In a short period of time «Dzhoshkunoz-Alabuga», a company which recently (in November, 2012) obtained a resident status, plans to complete site and construction works and start the production.
The SEZ «Alabuga» will continue an active search of new investors. Today the managing company has built a constructive work with over 1000 companies specializing in manufacturing of various industrial products starting from engineering tools and chemical industries to light and food industries.
Development program of the SEZ «Alabuga» till 2020 presupposes that the SEZ «Alabuga» will host almost 120 residents, so, at least another fifteen companies will obtain a resident status till the end of the current year.
A particular attention will be also paid to social infrastructure development, because in addition to job positions with good wages, people will also need social benefits. A pilot project of the managing company the SEZ «Alabuga» in this regard will be the development of a residential complex for executives and employees of resident companies in the vicinity of the special economic zone. The territory of the complex will include an international school with education in English. The learning process will be organized according to a worldwide recognized educational brand.

Read more information about SEZ “Alabuga”.

CONTACTS
The Special economic zone “Alabuga”
b 4/1, SH-2 St., SEZ “Alabuga” area, Yelabuga municipal district, the municipality of “Yelabuga town”,
the Republic of Tatarstan, Russia, 423602

INVESTOR RELATIONS DEPARTMENT
Phone: +7 (85557) 5–90–30
Cell: +7 (927) 480–02–21
Fax: +7 (85557) 5–90–84
E-mail:
invest@sezalabuga.ru

Website:
www.sezalabuga.ru
eng.russez.ru/oez/industrial/tatarstan/

Special Economic Zones in Russia

SEZThe Special Economic Zones (SEZ) of the Russian Federation are a large-scale federal project aimed to bring in investments and advanced scientific, manufacturing, and management technologies.

The zones provide companies with a unique opportunity to use the full range of Russia’s investment opportunities while avoiding the typical concerns related to non-market business pressures and inefficient administration.

Vast territories located in Russia’s major industrial regions. Proximity to production resources, access to existing infrastructure and key thoroughfares — these are the main advantages of the Industrial Zones. With manufacturing facilities in an Industrial Zone, companies can reduce cost to make their products more competitive on the Russian market.

The Industrial Zones are located in the Yelabuga District of the Republic of Tatarstan and the Gryazi District of Lipetsk Region. On August 12, 2010, the Russian Government signed a decree establishing an Industrial Zone in Samara Region in immediate proximity to Tolyatti.

Located in major centres of science and education with long-standing scientific traditions and recognised research schools, the Innovation Zones offer great opportunities for innovative businesses to manufacturescience-intensive products and sell them on the domestic and international markets.

A set of customs and tax privileges and access to professional personnel resources combined with growing demand for new technologies and modernisation of various sectors of Russian economy make the Innovation Zones attractive for venture funds and developers/manufacturers of technology-intensive products.

The Innovation Zones
The four existing Innovation Zones are situated in Tomsk, St. Petersburg, Moscow, and Dubna, Moscow Region.
The Innovation Zones’ priority sectors are:

  • Nano and biotechnologies
  • Medical technology
  • Electronic and telecom equipment
  • Information technology
  • Precise and analytical instruments
  • Nuclear physics

Industrial Zones
The Industrial Zones’ priority industries include:

  • Motor vehicles and components
  • Construction materials
  • Chemicals and petrochemicals
  • Household appliances and retail equipment

Tourist Zones
Located in Russia’s most picturesque and popular destinations, the Tourism & Recreation Zones offer favourable conditions for tourism, sports, recreation and other activities.
The four Tourism Zone are located in Irkutsk Region, Altai Territory, the Altai Republic, the Republic of Buryatia, and Primorye Territory.

Port and Logistic Zones
Located in immediate proximity to global transit corridors, the Port Zones provide access to the fast-growing market for port and logistic services in the Russian Far East and in central Russia.
The distinction of the Special Economic Zone based on Ulyanovsk Vostochny Airport is its proximity to the Ulyanovsk Aircraft Cluster factories. This creates development opportunities for aircraft maintenance and reconfiguration businesses.
The Port and Logistic Zone in Khabarovsk Territory is focused on creating a modern diversified port and dockyard centre that will take advantage of the favourable geographic position and the existing infrastructure.

Download full presentation about The Special Economic Zones in Russian Federation.

To watch video about Russian Special Economic Zones please visit https://www.youtube.com/watch?v=HvZqVKP1QkE

Contact Information:
Ministry of Economic Development of the Russian Federation
Regional Development Department
123242, Russia, Moscow, Krasnaya Presnya str., 3
+7 (495) 650-87-00 (ext. 1401)
Website: www.economy.gov.ru

Managing Company «Special Economic Zones» JSC
125009, Russia, Moscow, Tverskoy Boulevard, 6
+7 (495) 645-27-60
Email: sez@russez.ru
Website: eng.russez.ru

The Titanium Valley – special economic zone

titaniumvalleyThe Titanium Valley special economic zone is an investment-industrial platform where world business leaders lay the foundation for reliable and effective businesses.
Titanium Valley is located in a region with a strong economy, well developed industry and infrastructure, creating unique opportunities for industrial cooperation with leading Russian and foreign companies.
We are forming Titanium Valley as a specialized platform, supporting and stimulating development of such prospective industries as manufacturing of titanium products, components and equipment for metallurgy and mechanical engineering, and production of construction materials. In the region, creation of a titanium cluster is in progress, and this, of course, will allow us to increase the industrial and scientific potential and will become the most important factor in the development of the titanium industry.
In this special economic zone, very attractive business conditions for investors have been created – tax and customs privileges and preferences, and a special tariff policy. Today on the Titanium Valley site, stage-by-stage construction of industrial and social infrastructure is ongoing which will provide for not only the current, but also the long-term requirements of residents.
This combination of a unique geographical position and economic benefits makes it possible to use the capabilities of Titanium Valley for business development, forming industrial technological chains with links located in different countries of the world.
Within the framework of investor’s attracting in Sverdlovsk region the team of the Titanium valley SEZ are open for business dialog. Titanium valley is ready to participate in exhibitions and business missions in foreign countries with the purpose of discussing aspects of possible cooperation.

Download presentation of the Special economic zone Titanium Valley.

Contact Information:
Special economic zone Titanium Valley
Verkhnyaya Salda
Sverdlovsk Region, Russian Federation
Titanium Valley OJSC SEZ in Ekaterinburg
address: 620075,51, Malysheva str.,
office 2102 tel.:+7 (343) 283-08 83
e-mail: welcome@titanium-valley.com
General Director ARTEMIY KYZLASOV
e-mail: kyzlasov@titanium-valley.com
Tel: +7 (912) 0401333

Auto–tourism cluster «Zadonschina»

 

LipetskRegionwlogo

Presentation of the Auto–tourism cluster «Zadonschina».

 

Contact Information:
«Tourism development center of Lipetsk region»
10, Frunze street, Lipetsk City,
Lipetsk region, Russia, 398059

Website: www.liptour48.ru
e-mail: oby.crt48@gmail.com
tel./fax: 8 800 100 30 48

Astrakhan Region: Special Economic Zone “LOTUS”

SEZ_LotusThe Government of Russian Federation took the decision to create a Special Economic Zone of industrial-production type in the Astrakhan Region.

There are several agreements have been signed with 9 residents of a Special Economic Zone (SEZ) in the Astrakhan region. As it is announced by the Ministry of Industry, Transport and Natural Resources of the Astrakhan region, SEZ will be located at the territory of Lotos Shipyard OJSC.
Press center of the regional Ministry, the agreement have been signed with Lotos Shipyard OJSC (modernization of production facilities for implementation of production program for 52,000 tons of steel per year), Astrflot LLC (construction of production facilities), TRANSOIL-Terminal LLC (terminal transshipping cargo from/to railway transport to/from water transport), ASK LLC (production of PVC profile and), Caspian ElectroTransport LLC (production of electric vehicles), Duna-AST LLC (construction of mini-plant), NGK LLC (creation of production facilities for production of hi-tech wind-diesel generators), Company Management Innovations Development LLC (Construction of a plant for fitting production) and NPO Ferrit LLC (production of electro-magnetic materials).

The key element of the future SEZ will be the most developed industry in the region – shipbuilding industry. Its development prospects are determined by the participation of Astrakhan-based shipyards in implementation of large-scale offshore projects in the sector of oil fields development.

In particular, Lotos Shipyard has a unique possibility to build vessels in a set of workshops to the degree of 100% which contributes to work quality and better working conditions. Over the recent decade, Lotos has been specializing in production of deck-mudules for topsides of offshore fixed platforms. It can also produce vessels and barges of any degree of complexity.

The possibility is being considered now for a location of Siemens screw-rudder manufacture in SEZ.

The total area of Astrakhan SEZ is to make 9.9 sq. km. The SEZ participants are provided with the major infrastructure facilities and the territory has a highway link with the federal highway М6 as well as a railway approach. Elimination of tax duties, decrease of major taxes, ability to apply mechanisms on cost optimization will make it possible to decrease expenses by 15% of the vessel price and will considerably raise the competitiveness of Russian shipbuilding sector.

Establishment of the SEZ in the Astrakhan region is highly supported by regional authorities to provide industrialists with better manufacturing conditions is a significant step as such and that the Astrakhan region has all the opportunities for successful project implementation.

Download Presentation of the Astrakhan Region’s Special Economic Zone “Lotus”.

Contact Information:

Ministry of Economic Development of the Astrakhan Region
Astrakhan, the Astrakhan Region, the Russian Federation
Tel. 007 (8512) 51 49 93
Fax 007 (8512) 52 50 66
www.minec.astrobl.ru
Elina Polyanskaya
Deputy Chairwoman of the Astrakhan Region
Government  – Minister of Economic Development
of the Astrakhan Region
Ministry of Industry, Transport and Natural Resources of the
Astrakhan Region
Astrakhan, the Astrakhan Region, the Russian Federation
Tel. 007 (8512) 51 46 97
Fax 007 (8512) 51 46 98
www.mptpr.astrobl.ru
Sergey Krzhanovskiy
Deputy Chairman of the Astrakhan Region
Government  – Minister of Industry, Transport and
Natural Resources of the Astrakhan Region

Special economic zone “Togliatti”

seztogliattiSpecial economic zone “Togliatti” Samara Region.

By virtue of the Federal Law of July 22, 2005 No. 116-FZ “On Special Economic Zones in the Russian Federation”, a special economic zone is a territory with a special regime for entrepreneurship activities defined by the Russian Government.

The industrial and production special economic zone “Togliatti” was established in Stavropolsky municipal district of Samara region on the basis of Resolution of the Russian Government of August 12, 2010 No. 621.

SEZ “Togliatti” specializes in the following fields of activities:

  • Automotive manufacturing (vehicles and vehicle components)
  • Machinery
  • Construction materials
  • Mass consumer goods

Prerequisites for the establishment of industrial and production SEZ in Samara region are as follows:

  • high industrial potential of the region;
  • high investment attractiveness of the region;
  • high labor potential;
  • advantageous economic and geographic location, extensive transport and logistics infrastructure.

One stop shop concept

There will be an effective system of public administration in thespecial economic zone: “One stop shop” scheme to ensure forthe businessmen most convenient contacts with public and municipalbodies of management and control. “One stop shop” systemshall allow to facilitate paperwork for the residents, reduce administrative barriers with the use of a single contact point forall types of business cooperation with the state.

Governmental structures represented in the “One stop shop”system in SEZ “Togliatti”:

 

Become a SEZ resident

A commercial organization registered in accordance with the Russian legislation in a municipal entity, where a SEZ is located, which have concluded with the managerial bodies of the SEZ an agreement on industrial and production activities in such manner and on such terms and conditions as stipulated by the Federal Law of 22.07.2005 No. 116-FZ is recognized as a resident of an industrial and production SEZ.

A resident of an industrial and production SEZ shall have right to conduct within the SEZ only such industrial and production activities as defined in the agreement on industrial and production activities. Industrial and production activities are recognized as manufacturing and or processing of goods (products) and sales there of.

pdfDownload full Special economic zone “Togliatti” presentation.

Contact Information:
JSC «SEZ «Togliatti»
Russia, Samara region
Togliatti, Str.Frunze, 8, office 508
Web site:  www.oeztogliatti.ru/en

Assistant to General Director
Tel +7 (8482)555 179
Fax +7 (8482) 555177
e-mail AS.Kashtanova@oeztlt.ru

Department for work with investors
Tel +7 (8482)555 163
Fax +7 (8482) 555177
e-mail AV.Mezina@oeztlt.ru

Capital construction department
Tel +7 (8482)555 235
Fax +7(8482) 555 177
e-mail SV.Skryabin@oeztlt.ru

Property and legal department
Tel +7 (8482)555 178
Fax+7 (8482) 555 178
e-mail AS.Ochirov@oeztlt.ru

SEZ Innopolis, Tatarstan

innopolislogoThe Innopolis project involves the creation of a new city. The new city is designed to bring together young highly qualified specialists from all over the country, thus strengthening the innovative capacity of the Russian Federation.

The prospective population of Innopolis is 155 000 people, of which 60 000 will be highly qualified specialists. Innopolis will be a smart city with an extensive business infrastructure (technology parks, development centers, etc.), Russia’s first IT University (in partnership with Carnegie Mellon University, USA), a full range of social and commercial infrastructure (schools, kindergartens, hospitals, shopping centers, restaurants, etc.) and accommodating a diverse social spectrum (from multi-family houses to townhouses and cottages), most of which will be provided to employees of the resident companies for rent with the right to purchase.

Start of construction of the Innopolis was at June 2012, The first intake of the IT University were in September 2013.

The first stage of construction of Innopolis (infrastructure for living and working of around 5 000 people) will be completed in August 2014.

Mission

Create the opportunities for economic growth through information technologies, improving the welfare of the nation and the creation of a highly professional and intellectual society.
Strategy

Attract the best IT professionals to create innovative products in the field of information technology, and the best IT Education center in the country.
Learn, live, work, relax

The Basic principle of Innopolis is to create an environment of comfortable living and working in the best companies, with the coexistence of a great recreation and educational environment.

pdf

Download Innopolis Presentation.

Contact information

Ludinovo – Special Economic Zone area

Lyudinovo special economic zone area

On December 31, 2012 Russian Prime Minister Dmitry Medvedev signed a decree to establish Lyudinovo industrial special economic zone. Pursuant to a regulation of the government each special economic zone has a special legal status. Thus, its residents enjoy a number of tax and customs benefits and have a guaranteed access to utilities, transport and business infrastructure.

The area of Lyudinovo special economic zone equals 316 ha. The land plot is located at a 0.1 km distance from Lyudinovo, near Voylovo, Lyudinovo District, Kaluga Region.
Government Investments

According to preliminary expert estimates, the total cost of the project will be around RUR 3,200 million.
The project is to be financed out of Kaluga Region and federal budget funds. Kaluga Region will invest RUR 600 million (19% of the total cost of works), and the federal government will invest RUR 2,600 million (81%).

Number of Residents
A number of Russian and foreign companies are included in the list of potential Lyudinovo special economic zone residents. Two investment applications were submitted as of September 2012 (Magnat and Farmakom MB). The aggregated amount of investments equals RUR 9.2 billion, 860 new jobs are to be created.

By 2021, when all Lyudinivo special economic zone sites are to be occupied, about 22 production facilities will be fully operational and 3,900 new jobs will be created.

Industrial infrastructure

Access roads

The site is located at a 60-km distance from A-101 Moscow-Maloyaroslavets-Roslavl highway and at a 30-km distance from M-3 Ukraine federal highway.

There is Lyudinovo-Zhizdra-M3 Ukraine through road along the southern border of the site (0.02 km) connecting Bryansk-Lyudinovo-Kirov road with A-101 Moscow-Maloyaroslavets-Roslavl M-3 Ukraine highways.

The density of paved public federal and regional roads in Lyudinovo District equals 16 km per 100 km².

Lyudinovo is located at Vyazma-Fayansovaya-Bryansk single-track railway. There are two railway stations in Lyudinovo: Lyudinovo-1 (Class III) and Lyudinovo-2 (Class IV).
Kaluga_map-eng
Lyudinovo-1 serves all industrial facilities. The distance between Lyudinovo-1 and the site border is 5.0 km.

There are no commercial airports within the 80-km radius from Lyudinovo. Bryansk commercial airport is located in Bryansk (at a 100-110-km distance from Lyudinovo).

Utility networks

There are no water and sewage systems on-site.

Possible water system draw-off point (municipal water supply system) is located at a 1.6 km distance (north-westward direction). Water supply system design capacity is 32,000 m³/day, current consumption – 17,000 m³/day.

The nearest sewage pipeline is located at Industrialnaya St. The draw-off point (pump station) is located on the border of Remputmash KZ OAO facility at a distance of 1.2 km from the site.

The capacity of the existing water treatment facilities equals 22,000 m³/сутки, current load – 17,000 m³/day (up to 20,000 m³/day in case of rainy weather).

It is planned to ensure power supply to the site from Tula power system through Liteynaya substation (220/110/10 kW). Liteynaya substation installed capacity is 2х200 MW, the current utilization factor – 30% of the installed capacity. Distance to Liteynaya substation – 3.5 km.

There is a high pressure gas pipeline at a 3.5-km distance from the site. The gas distribution plant is located at a 4.0-km distance. The capacity of the gas distribution plant is 80,000 m³/hour, the current load is 30 m³/hour. There is a medium pressure gas pipeline (d=219 mm, pressure 0.6 MPa) along Industrialnaya St. The gas supply system draw-off point is located at a 1.2-km distance.
Land plots

Lease

The following formula is applied to calculate lease costs under agreements concluded with legal entities and individual entrepreneurs registered as Lyudinovo industrial special economic zone residents:

LP1 = Рmax x Ki, where

LP1 – lease payment under a lease agreement concluded with legal entities registered as Lyudinovo industrial special economic zone residents;

Рmax – maximum amount of lease for land plots, i.e. 2 per cent of their cadastre value per annum;

Ki – coefficient impacting the amount of the lease payment for Lyudinovo special economic zone residents, namely:

for residents making capital investments in Russian rubles in the amount of not less than EUR 10 (ten) million (excluding intangible assets) – 0.9;

for residents making capital investments in Russian rubles in the amount of not less than EUR 20 (twenty) million (excluding intangible assets) – 0.7;

for residents making capital investments in Russian rubles in the amount of not less than EUR 30 (thirty) million (excluding intangible assets) – 0.5.

The above coefficients shall be unchanged for a period of 5 (five) years from the date of their first application to calculate the lease payments under the lease agreements.

(Order of the Ministry for Economic Development of the Russian Federation No. 190 of July 14, 2006)

Cadastre land value as of December 1, 2012 – RUR 1,331,121,615.12.

Land plot acquisition

Lessees of land plots located inside the special economic zone territory, who own newly built property, shall have a right to acquire land plots under their facilities. The price of the land plot shall be determined by the land plot owner pursuant to the Land Code of the Russian Federation.

The price of the acquired land plot equals 15% of its cadastre value.

The cost of 1 ha of land plot in the special economic zone territory is RUR 4,437,072 (as of December 1, 2012).

Infrastructure facilities to be built
The following infrastructure facilities are to be built within the framework of Lyudinovo special economic zone creation project:

External (off-site) infrastructure:

  • double circuit line (110 kW,  63 MVA, 10 km);
  • substation 110/20, 63 MVA, two sections with a single distributing point RP-20 kV, 20 MW, up to 10 consumers;
  • water supply line, length –  5 km, dia 300 mm, capacity – 10,000 m3/day, including 3 (three) switching chambers and a flow metering unit;
  • water discharge network (industrial and domestic effluents), including the sewage collector: length – 5 km, dia 300 mm, capacity -10,000 m3/day, pressure-type, including the pump station, as well as the pump station power supply and construction of 2хTS-160kVA-20/0.4 kW;
  • Treatment facilities for the industrial and domestic effluents, capacity: 10,000 m3/day;
  • medium-pressure gas pipeline, dia 159 mm, length – 2 km, capacity 130 million m3/annum, including a gas distribution station and an access road;
  • storm water collector, dia 2,000 mm, with two discharges with the length of 1.5 km each, capacity –  20 m3/s;
  • storm water treatment facilities: gabion filtering treatment facilities (2), two-section, effluent treatment to comply with regulations for fishery water bodies, with relevant access road for maintenance;
  • access railways (2.5 km length);
  • access road.

 

Internal (on-site) infrastructure:

  • site (45 ha) grading and  leveling;
  • DP-20 kW, 20 MW, Reliability Category II, up to  10 consumers (2);
  • Ring two-pipe water supply line, dia 300 mm, length – 6 km, 4 (four) switching chambers;
  • self-drained/pumped sewage collector,  dia 300 mm, construction of two sewage pumping stations, power supply from 2хTS-250kVA-20/0.4 kW;
  • gas supply networks, length – 6 km, dia 159 mm, with installation of section taps and cathodic protection;
  • storm water collector, dia 2 000 мм, length – 6 km;
  • on-site roads and passes (Category IV), total length – about 6 km;
  • on-site railways,  total length – about 5 km;
  • chain link fencing (length – 10,500 m);
  • customs post and administrative buildings.

Benefits

Tax

Tax rate (incl. tax breaks)

Tax break validity term

Legal grounds

1. Corporate income tax(tax component payable to the federal budget – current rate: 2 %; component payable to the regional budget – current rate: 18%)

For special economic zone residents the tax rate component payable to the regional budget may be decreased and cannot be higher than  13.5 %

Determined by the regional law

para.1., Art. 284 of the Tax Code of the Russian Federation

Other benefits to be taken into account when calculating the corporate income tax for the entire duration of the special economic zone existence (49 years).

R&D costs, including costs associated with unsuccessful R&D projects shall be recorded in the reporting (tax) period when they were borne (actual sum of relevant costs).

Additional coefficient is applied to the depreciation rate (not higher than 2) in respect of fixed assets depreciation.

(para.2, Art.262, item3, para.1, Art. 259.3 of the Tax Code of the Russian Federation)

Corporate property tax(tax rates are determined in accordance with the law of the relevant region of the Russian Federation and cannot be higher than  2.2 %)

Special economic zone residents are relieved of the corporate property tax provided that the relevant property:

  • is included in the special economic zone resident’s balance sheet
  • manufactured or purchased for production purposes for the special economic zone facility
  • used in the territory of the special economic zone under the special economic zone establishment agreement
  • is placed  in the territory of the special economic zone

10 years from the date of the relevant property official registration  

The benefit validity term may be extended by the law of  the region of the Russian Federation

para.17, Art. 381 of the Tax Code of the Russian Federation 

 

 

 

3.

Land tax

(current rate –

1.5 %)

The special economic zone residents are relieved from paying the land tax (in relation to the land plots located in the territory of the special economic zone)

5 years from the date of official registration of a title to the land plot  

The benefit validity term may be extended by the law of  the region of the Russian Federation

para.9 Art. 395 of the Tax Code of the Russian Federation

4.

Value Added Tax and Customs Duties

Special economic zones residents may apply customs procedures relieving them from paying customs duties and taxes for the goods placed and used in the territory of the special economic zone.

Additional special economic zone benefits

The personal income tax of foreign nationals belonging to the category of highly-qualified personnel employed by special economic zone residents equals 13% (para. 3, Art. 224 of the tax code of the Russian Federation). The personal income tax rate for foreign nationals who are not tax residents of the Russian Federation is 30%. Individuals who reside in the territory of the Russian Federation for at least 183 days in a year belong to the category of tax residents.

Guarantees against negative changes in tax legislation

Legislation acts on taxation shall not apply to special economic zone residents throughout the validity term of the agreement on industrial and production activities in case they negatively impact the taxpayers, residents of special economic zones (however, this provision does not apply to excise goods manufacturers) (Article 38 of Federal Law On special economic zones in the Russian Federation No. 116 of July 22, 2005)
Expected results

Social and economic effects of the project implementation for 10 years (2013-2023):

3,900 jobs are to be created;

RUR 33.6 billion of investments are to be attracted;

Total output of Lyudinovo special economic zone enterprises is to be RUR 87 billion;

Tax proceeds to be received by budgets of different levels will be RUR 7.8 billion, including :
· federal budget – RUR 3.9 billion;
· Kaluga Region budget – RUR3.6 billion;
· Lyudinovo and Lyudinovo District municipality budget – RUR0.3 billion.

Contact information:

Representative office of the region of Kaluga at the Federal Government of. Russia
Tel./Fax: +7 499 241 6636. E-mail: p.aldakov@gmail.com

More information at sites: investkaluga.com/en/ and invest.kaluga.ru/en.

 

Special Economic Zone “ALABUGA”

The Special Economic Industrial Zone “Alabuga” in the Elabuga district of the Republic of Tatarstan

The Special Economic Industrial Zone “Alabuga” was created on December 21, 2005 by the Order N 784 of the Government of the Russian Federation.

The main objective of the SEZ “Alabuga” is to contribute to the development of the economies of the Republic of Tatarstan and the Russian Federation by establishing the most favourable business environment for the realization of industrial investment projects by Russian and international companies.

The industrial orientation of the SEZ “Alabuga” includes the production of automobile components, car manufacturing, petrochemistry, a processing of polymers, pharmaceutics, airspace components production, woodworking etc.

The SEZ “Alabuga” is located in the central part of the Russian Federation, therefore the import of raw materials just for processing and their following re-export seems to be meaningless. On the contrary, Russia possesses a huge resource base for the processing and production of final goods. With Russian domestic market rapidly growing at the moment, there is a strong demand to develop import-substituting production. Hence, the practical objective of creating the SEZ “Alabuga” is to establish different kinds of import-substituting production from Russian raw materials. That is the mean of creation of the infrastructure of the SEZ as well.

The creation of the industrial and business infrastructure on an international standarts, establishment of a debugged mechanism of joint work of all state agencies and services, an advanced system of information technologies, efficient Investor relations practices, support of residents’ activity, progressive HR policy and development of a social sphere – all this would mean the goal is achieved.

For more information, please, use this link: http://eng.www.alabuga.rosoez.ru/

Article about the SEZ Alabuga

Presentation of SEZ Alabuga

Brief info about Special Economic Industrial Zone “Alabuga”

How to become a resident of the Special Economic Zone “Alabuga”

Guide to investment