ADVANCED SPECIAL ECONOMIC ZONES
Advanced Special Economic Zones (ASEZ) in the Russian Far East are established in accordance with Federal Law 473-FZ, ‘On Priority Socioeconomic Development Areas in the Russian Federation’, which took effect on 30 March 2015.
So far, 17 ASEZs have been created in the Russian Far East:
— Khabarovsk ASEZ (manufacturing; transport and logistics), Khabarovsk Territory
— Komsomolsk ASEZ (manufacturing), Khabarovsk Territory
— Nadezhdinsky ASEZ (consumer goods and food industry; transport and logistics), Primorsky Territory
— Mikhailovsky ASEZ (livestock and crop farming; food production), Primorsky Territory
— Bolshoi Kamen ASEZ (manufacturing; shipbuilding), Primorsky Territory
— Priamursky ASEZ (manufacturing; transport and logistics), Amur Region
— Belogorsk ASEZ (agricultural industry), Amur Region
— Gorny Vozdukh ASEZ (tourism), Sakhalin Region
— Yuzhnaya ASEZ (agriculture; food production), Sakhalin Region
— Kamchatka ASEZ (tourism and recreation; port and manufacturing; agricultural industry), Kamchatka Territory
— Beringovsky ASEZ (mining), Chukotka Autonomous Area
— Kangalassy ASEZ (industrial park), Sakha Republic (Yakutia)
— Yuzhnaya Yakutia ASEZ (mining industry), Yakutia (Saha) Republic
— Neftekhimichesky ASEZ (oil and gas industry), Primorye Territory
— Amuro-Khinganskaya ASEZ (light and food industry, tourism and recreation), Jewish — Autonomous Region
— Nikolaevsk ASEZ (fishery, water transport, equipment assembly and repair), Khabarovsk Region
— Svobodny ASEZ (gas chemical industry), Amur Region.
The law does not specify how many ASEZs can be created. In the event of interest from investors, new platforms will be created in regions of the Russian Far East.
BENEFITS FOR INVESTORS
- A one-stop shop for investors.
- Swift processing of all administrative procedures, including granting of permits.
- Any inspection of an investor by the supervisory authorities can be carried out only with the agreement of the Ministry for the Development of the Russian Far East.
- In the event of a dispute with the supervisory authorities, the interests of an Indian investor may be defended in court by the Russian Far East Development Corporation, a company wholly owned by the Russian Government.
- A free customs zone: exemptions from import duties and advantageous customs duties; fast and convenient customs procedures.
- Easier regulations for employing foreign staff (in the event of a shortage of local workers).
- The opportunity to receive co-financing from the sovereign Russian Far East Development Fund.
- Exemption from taxes on revenue, property and land for the first five years of the investment project’s implementation. For the first 10 years, social security payroll tax is reduced from 30% to 7.6%. Income tax is 13%.
- No VAT or import duties are charged on imports for processing.
- Discounts of up to 60% on the use of land and infrastructure support.
ASEZ MANAGEMENT COMPANY
The management company for the ASEZ is the Russian Far East Development Corporation (RFEDC), which is wholly owned by the Russian Government.