A Lugansk People’s Republic company that has joined the Free Economic Zone (FEZ) plans to produce equipment for the mining and steel-making industries to phased out imported machinery, LPR Head Leonid Pasechnik said on his Telegram channel.
“The LPR leadership, in cooperation with federal authorities, continues to implement President Vladimir Putin’s policy towards restoring the Donbass industrial potential,” Pasechnik said.
The Free Economic Zone and easy-term loans to businesses contribute to the revival of the regional industrial sector, he said.
The regional Industry Development Fund has approved projects of another six LPR companies. More than 330 million rubles worth of loans will be extended to companies from Alchevsk, Rovenki, Lugansk and the Antratsit district, Pasechnik said.
The Free Economic Zone law adopted in June creates a favorable business climate in the new Russian territories. FEZ companies are exempt from paying property tax a period of ten years and land tax for three years. They also enjoy lower insurance fee rates.
The Free Economic zone will function until January 31, 2050.*i*sb