Half of LPR companies expected to become Free Economic Zone residents in 2023

The Industry and Trade Ministry of the Lugansk People’s Republic expects more than 50 percent of LPR companies to become Free Economic Zone participants by yearend, an LPR official said.

 

“Some 40 percent of enterprises are currently entering the Free Economic Zone,” Deputy Industry and Trade Minister Dmitry Chastnikov said. “We hope that more than 50 percent will become FEZ participants by the end of this year.”

 

The FEZ will enable the region to relaunch its industrial sector and develop new production sites.

 

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The Free Economic Zone law adopted in June sets a favorable business climate in the new Russian territories. FEZ companies are exempt from paying property tax for a period of ten years and land tax for three years. They also enjoy other incentives such as lower insurance fee rates. The Free Economic zone will function until January 31, 2050.  *i*ie