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Index cards by country RUSSIA SPECIAL ECONOMIC ZONES Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Russia Year of promulgation of the first text Official Terms for Free Zones of law concerning the Free Zones Special economic zones (SEZ) 1988 Exact number of Free Zones Possibility to be established as Free Points 27 Special economic zones (include 8 in project) No TABLE OF CONTENTS Free Zones ..........................................................................................................................................4 General information ........................................................................................................................................................................4 List of operating Free Zones .........................................................................................................................................................6 Contacts ............................................................................................................................................................................................ 16 2 WFZO Index cards - Russia UNITED STATES Oslo Berlin Stockholm 22 27 Helsinki 12 05 Minsk 21 11 10 Kyiv 04 Moscow 15 Chisinau 08 25 01 14 26 24 06 02 Volgograd RUSSIA 03 Sverdlovsk Ufa 07 Chelyabinsk Omsk 13 Yerevan Astana Novosibirsk Baku 20 23 16 18 KAZAKHSTAN 17 Tehran Tashkent Ulaanbaatar Ashgabat 09 Bishkek IRAN MONGOLIA 19 Dushanbe Tokyo Beijing Kabul JAPAN CHINA Seoul Islamabad Lahore FREE ZONES IN RUSSIA 500 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones 01 - Industrial and production zone Lipetsk 15 - Technology and innovation zone Istok 02 - Industrial and production zone Alabuga 16 - Tourist and recreation Altai Valley 03 - Industrial and production zone Togliatti 17 - Tourist and recreation Baïkal Gates 04 - Industrial and production zone Lyudinovo 18 - Tourist and recreation Baikal Arbor 05 - Industrial and production zone Moglino 19 - Tourist and recreation Russky Island 06 - Industrial and production zone Titanium Valley 20 - Tourist and recreation Turquoise Katun 07 - Industrial and production zone Lotus 21 - Tourist and recreation Zavidovo Sez 08 - Industrial and production Stupino Quadrat (SEZ) 22 - Murmansk SEZ (Logitics zone) 09 - Industrial and production zone Vladivostok 23 - Sovetskaya Haven SEZ (Logitics zone) 10 - Technology and innovation zone Dubna 24 - Ulyanovsk Vostochny SEZ (Logitics zone) 11 - Technology and innovation zone Zelenograd 25 - Logistics zone of the Republic of Crimea and Sevastopol (SEZ) 12 - Technology and innovation zone Saint-Petersburg 26 - Logistics zone of the Magadan Region (SEZ) 13 - Technology and innovation zone Tomsk 27 - Logistics zone of the Kaliningrad Region (SEZ) 14 - Technology and innovation zone Innopolis © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: Asia Lambert Conformal Conic 3 WFZO Index cards - Russia FREE ZONES GENERAL INFORMATION Official definition “A special economic zone (SEZ) is an area in Russia with a special legal status and economic benefits designed to bring Russian and foreign companies into priority sectors of the Russian economy. SEZs are formed under a federal program overseen by the Russian Ministry for Economic Development. The state management company Special Economic Zones OJSC (SEZ OJSC) manages the majority of SEZs and is responsible for recruiting and assisting resident compa- nies. A special economic zone (SEZ) is an area in Russia with a special legal status and economic benefits designed to bring Russian and foreign companies into priority sectors of the Russian economy. SEZs are formed under a federal program overseen by the Russian Ministry for Economic Development. The state management company Special Economic Zones OJSC (SEZ OJSC) manages the majority of SEZs and is responsible for recruiting and assisting resident compa- nies”. http://www.ey.com/ru/en/industries/real-estate/ey-russia-industrial-and-innovation-infrastructure-special-economic-zones Types of SEZ There are four types of special economic zones in Russia: -“Industrial SEZs are extensive territories in industrially developed regions. Proximity to industrial resources, available utility capacity, and accessibility to all forms of ground transport are only the most important of an industrial zone’s advantages. Reduced expenses make the output of facilities in industrial zones more competitive on the Russian mar- ket”. -“Technology implementation SEZs are located in major centers of science and education that have rich scientific traditions and recognized research institutions. Customs and tax benefits, the availability of professional staff, and a growing demand for new technologies and modernization in various sectors of the Russian economy make techno- logy implementation SEZs attractive for venture capital funds as well as for developers and producers of high-tech products.” -“Port SEZs are located in proximity to key transport routes and waterways. A logistics SEZ may become a site for shipbuilding, ship repairs and logistics services and also serve as a base for new land and sea delivery routes”. -“Tourist and recreation SEZs are located in scenic areas and regions popular as tourist destinations. Tourist and recreation SEZs offer favorable conditions for tourism, sports activities, recreation and other forms of business”. Source: http://www.ey.com/ru/en/industries/real-estate/ey-russia-industrial-and-innovation-infrastructure-special-economic-zones Number of free zones Russia has 27 Special Economic zones (SEZ) operating in 2017 of 4 different types, in 33 different regions: 9 Industrial production SEZ, 6 Technology and Innovation SEZ, 15 Tourist and Recreational SEZ (but 8 other are in project), and 5 Logistics SEZ (or Port SEZ). http://www.investinrussia.ru/sez https://www.econjournals.com/index.php/ijefi/article/viewFile/2398/pdf http://www.investinrussia.ru/sez Number of active compa- 375 registered residents in 2015. nies in Free Zones Sources: SEZ OJSC and https://www.econjournals.com/index.php/ijefi/article/view- File/2398/pdf Main sectors of activity Hi-technology enterprises, scientific and research laboratories, cars production, production of engines and other high-tech components, repair and servicing aircraft equipment, ready-made metal products, production of transportation vehicles, equipment and components, construction materials, consumer goods production, petroleum chemistry, pharmaceutical industry, Micro-and na- no-electronics, organic electronics, energy saving technologies and renewable energy sources, information and communication equipment, complex technical systems, nanotechnologies, software, nuclear technologies, biotechnologies, medicine technologies, precision instruments engineering. 4 WFZO Index cards - Russia Total job numbers 13,608 people of all types employing in 2014. Sources: SEZ OJSC and https://www.econjournals.com/index.php/ijefi/article/view- File/2398/pdf Distribution of investors 375 residents in the special economic zones, including leading foreign compa- nies from 24 countries, among them there are the major transnational compa- nies: Ford, Yokohama, 3M, Air Liquide, Rockwool, Hayat, Novartis, etc. Exports and sales No information Free zones contribution According to SEZ OJSC, proposed investments by residents total some RUB 500 to the national economy billion. As of today, more than RUB 145 billion in investments have been rea- lized, and residents have paid over RUB 14 billion in taxes. http://www.ey.com/ru/en/industries/real-estate/ey-russia-industrial-and-innovation-in- frastructure-special-economic-zones “The industrial production and technology development SEZs are the most effective. The potential of the tourism and recreation and port SEZs is not realized. Only industrial production SEZs can have a real impact on the regional economy. They can attract large companies and significant private investments, which will provide a large number of new jobs, high revenue and tax payments into the budget”. https://www.econjournals.com/index.php/ijefi/article/viewFile/2398/pdf Corporate Tax and Incen- 1. Tax preferences: tives Income tax: for the SEZ residents tax rate is 0-13.5% instead of 20%; The residents of technology and innovation and tourist and recreational special economic zones which are combined into cluster are exempt from income tax; Property and transport tax exemption for 10-15 years; At the federal level investors are exempt from land tax for 5-10 years. 2. Investors receive modern transport, social, customs and other infrastructure for business development created at the expense of state budget; 3. Special custom regime – is a regime of free customs area which means that investors in the special economic zones’ territory don’t have to pay customs duty and value-added tax for foreign goods and it is also forbidden to use prohibitions and restrictions of economic character; 4. Reduced administrative barriers (the system «single window» simplifies the interaction with regulatory authorities). Single window means that investor give all documents to one special agency and this agency assist in agreement procedures that reduce the time on initial stage of the investment project. 5. Access to the qualified personnel resources. 6. There is simplified migration regime for highly qualified foreign staff, involved
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