Russia to Establish Overseas Industrial Investment Zones

Posted by

russia-briefing-russia-to-establish-overseas-industrial-investment-zonesRussia’s Industry and Trade Minister Denis Manturov has stated that the country will launch four industrial and investment zones overseas as part of its Export Development Plan. Russia recently set up such a facility near Port Said in Egypt.

Manturov stated at the Far Eastern Economic Forum last week in Vladivostok, “We are developing a program for the creation of industrial zones abroad. We should establish at least four zones in six years. We have one in Egypt, and we must form them in Latin America too – it could be Mexico, Uruguay or Paraguay, in Southeast Asia – Vietnam, Malaysia or Indonesia – and in eastern or western Africa. We will analyze where it will be advantageous”.

The East Port Said Industrial Zone is based near the Suez Canal, and offers favorable treatment and preferences for Russian resident companies, covering an area of 2 million square meters in the east of Port Said. Russian car-makers, petrochemical enterprises, energy, and medical companies are expected to locate their production facilities within the zone,which is currently under construction.

Chris Devonshire-Ellis of Dezan Shira & Associates comments: “This strategy is designed to get Russian owned product brands manufactured overseas. This is partly to avoid sanctions on Russian-made goods, and partly to encourage Russian manufacturers to look at new overseas markets. The reach out to Africa, Asia, and Latin America is an interesting one and we shall be keeping tabs on the Asian facilities for our Russian clients as they come online.”

 

About Us

Russia Briefing is produced by Dezan Shira & Associates. The firm provides business advisory and foreign investment services to international businesses throughout Asia and maintains partners in Moscow, St.Petersburg and Vladivostok. Please contact the firm at russia@dezshira.com or visit www.dezshira.com

 

related-readings_rb-icons_2017 Related Reading:

Establishing a Foreign Business in Russia

In this issue of Russia Briefing, we explain the basics of business set up for foreign investors, from trademark registration, representation, trading mechanisms, and manufacturing. With low corporate tax rates, Russia is set to become the most dynamic of the trade corridors opening up to Asia.


An Introduction to Doing Business in ASEAN 2017

Doing Business in ASEAN introduces the fundamentals of investing in the 10-nation ASEAN bloc, concentrating on economics, trade, corporate establishment and taxation. We also include the latest development news in our “Important Updates” section for each country, with the intent to provide an executive assessment of the varying component parts of ASEAN, assessing each member state and providing the most up-to-date economic and demographic data on each. Additional research and commentary on ASEAN’s relationships with China, India and Australia is also provided.

 

Leave a Reply

Your email address will not be published. Required fields are marked *