A poultry farm, a flour and pastry producer and a manufacturer of car parts from the Lugansk People’s Republic have become Free Economic Zone (FEZ) participants, said Territorial Development Fund Director General Ilshat Shagiakhmetov.
“Three new FEZ participants with declared investments of some 500 million rubles plan to modernize their production capacities and employ about 1,200 people,” the Fund’s press service quoted Shagiakhmetov as saying.
The new status will enable the “Avis” poultry farm to boost egg production by 22.5 million pieces a year; “Avtomotozapchast” will modernize its engine valve and radiator production and “Veresk” will install an automatic flour packaging line, the Fund said.
The FEZ investment portal currently lists 360 prospective resident companies; the Territorial Development Fund has provided consultations and tutorials to 136 companies.
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