Russia Considers A Special Economic Zone At Belgorod
SEZ close to the border with Ukraine
Russian President Vladimir Putin has supported the idea of creating a special economic zone in the Belgorod region. The acting governor of the region Vyacheslav Gladkov has voiced plans to double the gross regional product by 2030. In his opinion, this can be done by implementing several investment projects, and attract MNCs by creating a regional special economic zone.
Belgorod is in Russia’s south-west and close to the border with Ukraine. It has an international airport and rail connections with Moscow.
Developing a Belgorod SEZ – which would provide tax incentives in addition to duty free importation of certain products – would cost an estimated US$3.4 billion. However, it would benefit local residents, many of whom are ethnic Russians who have fled conflict in Ukraine. Belgorod is also connected via road and rail to Belarus. It is an agricultural region with opportunities in this commercial sector and capable of supporting light industrial manufacturing.
President Putin has stated “As for the Belgorod free economic zone, we need to figure it out. But in general, of course, if there are conditions for ongoing investment processes in the region, it is very important, we will definitely consider it. I would support this idea.”
Russia Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Eurasia, including China, Russia, India, and the ASEAN nations, assisting foreign investors into the Eurasian region. Please contact Maria Kotova at firstname.lastname@example.org for Russian investment advisory or assistance with market intelligence, legal, tax and compliance issues throughout Asia.