More than 40 companies from the Lugansk People’s Republic have submitted applications to the Territorial Development Fund for participation in the Free Economic Zone (FEZ), said LPR deputy prime minister Svetlana Podlipayeva.
Regulations require prospective FEZ participants to send their applications to the LPR government first. If approved, the applications are forwarded to the Territorial Development Fund.
The Alchevsk Metallurgical Works, the Stakhanov Ferroalloy Plant and the Lugansk Pipeline Accessories Plant “Marshal” have already been granted the status of FEZ participant, Podlipayeva said.
“More than 40 businesses and large enterprises in various fields have already registered on the Territorial Development Fund website. They are now preparing documents to complete the necessary procedures,” she said.
The LPR government supports each potential FEZ participant. “Our priority is to develop regional economy, using among other things, stronger economic ties with other Russian regions,” the official said.
The free economic zone law adopted in June sets a favorable business climate in the new territories and exempts resident companies from paying property tax a period of ten years and land tax for three years. It also offers a number of other incentives such as lower insurance fee rates. The Free Economic Zone will function until January 31, 2050. *i*ie