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MIL OSI Translation. Region: Russian Federation –

Source: Ministry of Economic Development (Russia) – An important disclaimer is located at the bottom of this article.

The Government of the Russian Federation, at a meeting on Friday, April 5, supported a bill to extend the free economic zone (FEZ) regime in force in new regions to border entities.

As the Chairman of the Government of the Russian Federation Mikhail Mishustin said, benefits from SEZs in the Belgorod, Kursk and Bryansk regions will allow enterprises not only to recover, but also to implement investment plans. Preferential regimes are planned to be established this summer.

“We hope that the decisions taken will help, first of all, entrepreneurs not only to reduce costs, but also to increase the volume of production of products and services. Create new jobs and provide citizens who live there, in the border regions, with all the necessary range of goods and services,” emphasized Mikhail Mishustin.

The experience of the Far East is taken as a basis – by analogy with priority development territories, preferences will not be given to the entire region, but to specific locations that will be approved by the Government. The approach itself was carefully worked out with the constituent entities of the Russian Federation and business. Including the Belgorod region, where the President instructed to establish a pre-regime in Shebekino.

According to the Ministry of Economic Development, taking into account the regions’ proposals for sites and residents, about 300 affected companies, employing 20 thousand people, will receive support.

The SEZ will support three categories of investors. These include enterprises damaged by shelling. Production facilities that need to be moved to safer locations. And a business for which benefits will become an argument to start new projects.

The benefits that will be provided to residents of border regions include reduced rates of insurance premiums (7.6% with a base rate of 30%), a zero tax rate on profits received from the implementation of an investment project, exemption from property tax of organizations from the moment of their adoption registration, zero excise tax on liquid steel, exemption from mineral extraction tax on coal and iron ore. In particular, the SEZ also has a free customs zone regime.

Also during the meeting, the Government supported the allocation of grants from the reserve fund for enterprises affected in 2023. Companies that have come under fire again or have lost more than 30% of their income for the year will be able to cover half of the debt on income taxes and insurance premiums for the previous year. The funds will be used to support 14 enterprises. Previously, 45 companies had already taken advantage of the measure, thereby saving more than 1 billion rubles in operating expenses.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

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

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