MOSCOW (Pakistan Point News / Sputnik - 06th August, 2020) The so-called special economic zones (SEZ) with preferential taxation and customs regulations are the best tool for foreign businesses to enter the Russian market, Vittorio Torrembini, the president of the Association of Italian Entrepreneurs in Russia (GIM-Unimpresa), told Sputnik in an interview.
Since 2005, the Russian government has designated 25 special economic zones across the country. Torrembini himself was one of the initiators of Russia's special economic zones and has partaken in the project since it was under review in the Russian parliament in 2004. He was the director of the four Italian companies that made the first investments in the Lipetsk SEZ, created in 2005. Presently, Torrembini is a member of the expert council in the Lipetsk SEZ and the Voronezh SEZ, created last year.
"I believe that the creation of special economic zones was the Russian government's best political experiment. These zones have all the conditions both for the Italian and Russian entrepreneurs to arrange for good investments," the GIM-Unimpresa chief said.
"We saw that the experiment was extremely beneficial for the Russian economy, but people only recently began to realize that this process should be developed," Torrembini said.
According to the GIM-Unimpresa president, there are three key advantages to special economic zones for foreign investors in Russia.
The first is land, in that purchasing state-owned land, rather than privately-owned, carries fewer risks for a business and also costs much less � Torrembini called it "a symbolic price." The second is access to energy infrastructure � gas, electricity, water, roads and drainage � which Torrembini said was "unaffordable" for investors in the rest of Russia, but is free in the special economic zones. Lastly, administrative barriers are absent there.
These details add up to tax exemptions and preferential customs conditions that are standard for all SEZs.
Torrembini said there were currently four Italian companies in the Lipetsk SEZ, two in the Kaluga SEZ and another in the Alabuga SEZ, and three or four others were anticipated to join their ranks soon.
In Russia, each SEZ is created for a period of 49 years. They all fall under one of the four specialty target rubrics, including industry, technologies, tourism and logistics.
