Russia to Establish Overseas Industrial Investment Zones
Russia’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.”
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 email@example.com or visit www.dezshira.com
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