Selects twenty regions for territorial development zones

The Russian Government has approved a list of twenty regions of the Russian Federation in which territorial development zones can be created. Pursuant to the 2011 law on territorial development zones in the Russian Federation, a territorial development zone "is a part of the territory of a region of the Russian Federation where state support is provided to residents of the territorial development zone to speed up the socio-economic development of the region of the Russian Federation by forming favorable conditions for attracting investment to its economy". The comments to the document state the purpose of the law is to reduce the differences in the level of the socio-economic development of the Russian regions by "forming favorable conditions for attracting investment" to the economies of the so-called depressive regions. The approved regions may now file with the Russian Government requests for the creation of territorial development zones in which they will identify, inter alia, specific incentives and benefits that will be granted to the residents (in accordance with the law, they may include tax benefits, lease of land on advantegous terms, subsidies, state guarantees on loans and some others). Under the law, a territorial development zone can exist for 12 years.

• Type:

  • Promotion and facilitation (Special economic zones)

• Industry:

  • Not industry specific

• Sources:

  • Government of Russia, Government Resolution No.326, http://www.government.ru/media/2013/4/15/55911/file/326.pdf, 16 Apr 2013
  • Interfax news, Russian govt selects twenty regions in which territorial development zones can be created, http://search.proquest.com/docview/1347564503/13DD07D8956180A24B/8?accountid=28970, 18 Apr 2013