Fifty enterprises in the new regions with a total sum of declared investments at some 32 billion rubles have become Free Economic Zone (FEZ) participants, said Russian Deputy Prime Minister Marat Khusnullin.
“Fifty companies have joined the FEZ in less than six months,” Khusnullin said. “The purpose of the FEZ is to create favorable conditions for companies to enable them to use their potential and contribute to the relaunching of the economy in the new regions.”
FEZ participants include large enterprises in the mining, machine-building, steel-making, food and construction industries as well as chain stores, he said. FEZ residents are expected to create some 3,000 new jobs. The implementation of investment projects will involve some 38,000 people, the official said.
The Free Economic Zone is managed by the Russian Construction Ministry through the Territorial Development Fund which was appointed the managing company.
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The Free Economic Zone law adopted in June sets a favorable business climate in the new Russian territories. FEZ companies are exempt from paying property tax a period of ten years and land tax for three years. They also enjoy lower insurance fee rates. The Free Economic Zone will function until January 31, 2050.*i
