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MIL OSI Translation. Region: Russian Federation –

Yuri Trutnev held a meeting of the interdepartmental working group on the creation of SEZs and ASEZs in single-industry towns

The issues of creating special economic zones of an industrial production type in the Kemerovo, Kursk and Leningrad regions, attracting investors to the SEZ “Baikal Harbor” of the Republic of Buryatia were considered at a meeting of the interdepartmental working group on the creation of SEZs and ASEZs in single-industry towns, held under the leadership of the Deputy Prime Minister – Plenipotentiary Representative of the President in the Far Eastern Federal District Yury Trutnev.

“Preferential regimes created on the territory of the Russian Federation – priority development areas, special economic zones, the regime of the free port of Vladivostok – bring quite a lot of benefits to the development of the economy. Thanks to them, about 150 thousand new jobs have already been created. These regimes help build new enterprises and make a significant contribution to the development of the country’s economy, including in difficult regions. Now there are 42 special economic zones in the country. Today we are considering the creation of three more special economic zones – the “Third Pole” in the Kursk region and the special economic zones “Kuzbass” in the Kemerovo region and “Ust-Luga” in the Leningrad region, created in accordance with the instructions of the President of the Russian Federation,” he said. opening the meeting, Yuri Trutnev.

As Deputy Minister of Economic Development Sergey Galkin reported, 11 investors intend to become residents of three special economic zones in Kemerovo, Kursk and Leningrad regions. More than 6 thousand jobs will be created.

The creation of an industrial production type SEZ (IPT SEZ) “Kuzbass” in the Kemerovo Region – Kuzbass was approved. A new SEZ will appear in the west of the city of Topki (Topkinsky municipal district). The region received written confirmations from six anchor investors about their intentions to implement their projects in the SEZ. Among them are a complex for the liquefaction of natural gas, a plant for the production of mineral wool, the production of medical products and equipment, and others. The total investment of residents will amount to 10.4 billion rubles. The region plans to allocate about 1.2 billion rubles for the development of the infrastructure of the SEZ.

A decision was made to extend until 2030 the existence of four priority development areas in the single-industry towns of Yurga, Anzhero-Sudzhensk, Novokuznetsk and Prokopyevsk in the Kemerovo Region. “More than 1.1 thousand residents are registered in the priority development areas in single-industry towns throughout the country. 63 thousand new jobs were created. 175 billion rubles of investments have been invested. Obviously, there is a benefit from these TOPs,” said Yuri Trutnev.

“The creation of the Kuzbass SEZ and the extension of the existing ASEZs until 2030 will provide the region with new industries and high-paying jobs. We also expect to increase revenues to the regional budget from the development of these large-scale projects, and this, in turn, will allow us to allocate more funds to social needs and improve the living standards of people,” said Sergey Tsivilev, Governor of the Kemerovo Region.

Support was given to the initiative of the administration of the Kursk region to create the Third Pole IP SEZ in the city of Zheleznogorsk and the Zheleznogorsk region. “At the first stage of the project, agreements of intent were signed with three residents. More than 90% of the planned products belong to the segment of non-commodity non-energy exports. It is planned to create about 600 jobs,” said Governor of the Kursk Region Roman Starovoit.

Three companies informed about their intentions to become residents of the SEZ. Investors intend to implement projects for the construction of factories for the production of hot briquetted iron, rubber products and the creation of production for the production of innovative railway equipment. According to the region, the total investment in projects will be about 40 billion rubles.

In the Leningrad region, it is planned to create a SEZ Ust-Luga near the second largest seaport of Ust-Luga in the Kingisepp municipal district of the Leningrad region to implement an investment project that is unique in its scale to create gas chemical and gas processing complexes as part of an ethane-containing gas processing complex.

“In Ust-Luga, the largest project is being implemented for the construction of an ethane-containing gas processing complex, where it is planned to process up to 45 billion cubic meters. m of raw gas annually. Taking into account the large anchor residents, tax incentives and geographical advantages, we expect that there will be associated production facilities for the processing of gas fractions, polymers, small-scale chemicals and other enterprises and research centers. If we talk about the results of the creation of the SEZ in numbers, then we expect an increase in the gross regional product of the Leningrad Region by more than 300 billion rubles a year, an increase in tax revenues to budgets of all levels, more than 2.3 trillion rubles of investments and more than 5.6 thousand permanent jobs,” commented Alexander Drozdenko, Governor of the Leningrad Region.

It was noted that in order to implement the presented projects in the SEZ Ust-Luga, it is necessary to amend the legislation. The relevant draft law was submitted by the Government to the State Duma. After the adoption of the law, the decision to create the Ust-Luga IP SEZ will come into force.

The implementation of the Government’s instructions on the issue of attracting residents and financing investment projects in the Baikalskaya Gavan SEZ of the Republic of Buryatia was discussed. SEZ residents are four investors. Key projects are related to the construction of hotel complexes.

As the head of the Republic of Buryatia Alexei Tsydenov noted, in terms of tourist flow Buryatia ranks third among the regions of the Far East after the Primorsky and Khabarovsk Territories. “Demand for recreation on Lake Baikal is high. We expand opportunities for recreation by creating tourist complexes with high quality service. Favorable conditions for investment projects have been created on the territory of Baikalskaya Gavan – engineering and transport infrastructure, tax preferences. Active work is underway to attract investors for the construction of a number of rooms on the territory of the SEZ,” he said.

In October last year, Green Flow Baikal, a resident of the Baikal Harbor SEZ, began construction of a 153-room hotel in Turka. The project involves the creation of a thermal complex and a treatment center. Completion of construction is expected in the third quarter of 2023.

Another investor, Cosmos Hotel Group, has begun the implementation of the project at the Bezymyannaya Bay site. The project is being worked out on the ground according to master plans, development, and infrastructure. The first phase involves the construction of a five-star hotel with 100 rooms, 14 duplexes and 12 cottages. The implementation period is 2022–2024. Until 2027, it is planned to implement two more phases of the project, including the construction of a spa, a congress hall, detached houses with a lounge area, and 10 glampings.

Investors are being sought for the construction of a ski resort on Mount Bychya, three investors have announced their projects.

As Gadzhimagomed Huseynov, First Deputy Minister for the Development of the Far East and the Arctic, reported, the Ministry for the Development of the Russian Far East continues to improve the mechanisms for supporting investment projects in the Far East. Additional measures are being considered to support projects aimed at developing the tourism industry. Proposals for the introduction of such preferences have been prepared and will be submitted to the Government in the near future.

The issue of establishing a single list of types of economic activities prohibited for implementation within the framework of the implementation of investment projects by residents in all ASEZs created in single-industry towns was considered. On behalf of the Government of the Ministry of Economic Development, a corresponding draft resolution was developed. The adoption of a single limited list will make it possible to establish common rules for the activities of residents of all ASEZs and expand the opportunities for residents to implement projects in industries that were previously prohibited.

“The principle of regulation of economic activity will be changed. This is a transition from a limited number of activities to a prohibitive principle, that is, prohibited activities will be determined, and all others are proposed to be allowed. This is a much more transparent and understandable mechanism,” Yury Trutnev explained.

Summing up the results of the meeting, the Deputy Prime Minister reminded the representatives of the federal ministries of the need to improve mechanisms to support investors in preferential regimes. “We are obliged to constantly analyze the effectiveness of our work in order to learn how to work better, to understand what can be done better. We must understand where and what preferential regimes have worked well, and where we need help,” Yury Trutnev emphasized.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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