The Federal Agency for Management of Special Economic Zones (RosOEZ) is a federal executive authority subordinated to the Ministry for Economic Development and Trade. It performs functions of providing state services and law application services in the sphere of managing special economic zones, functions of controlling fulfillment of agreements on industrial, manufacturing, research and development, and tourist and recreational activities in special economic zones, in special economic zones in ports, and ensuring a special legal mode of the Special Economic Zone in the Kaliningrad Region.
The essence of the agency's activity is facilitating the implementation of such governmental investment tools as investment sites with special economic mode (tax and customs preferences) and preliminary analysis of projects eligible for support from the investment fund. Between 2005 and 2011 the government intends to invest some RUR 43 billion in creating special economic zones.
Official website: http://eng.www.rosoez.ru/
OAO Special Economic Zones (OAO OEZ). In 2006, the federal state enterprise "Foreign Economic Association Vneshstroyimport" was transformed into open joint-stock company "Special Economic Zones" (OAO OEZ).
Official website: http://eng.oao-oez.rosoez.ru/
A special economic zone is a part of Russian territory identified by the Russian government, where a special mode of entrepreneurial activity is effective.
Pursuant to the July 22, 2005 Federal Law No. 116-FZ "On special economic zones in the Russian Federation", as amended on June 3, 2006, special economic zones of three types can be created in the Russian Federation: industrial manufacturing, technical R&D, and tourist and recreational.
The main objectives of creating special economic zones:
- developing processing and hi-tech industries of the economy;
- manufacturing new product types, developing import-replacing industries;
- developing tourism and the health resort sector.
Industrial and manufacturing special economic zones
An industrial and manufacturing zone is a part of the national customs territory within which there is ongoing production of specific industrial products; investors qualify for a variety of preferences.
- A special economic zone in the Lipetsk region;
- A special economic zone in the Republic of Tatarstan
Characteristics of an industrial and manufacturing special economic zone:
- Industrial facilities;
- Area of no more than 20 square kilometers;
- May not be located on the territories of several municipal entities;
- May not include the entire territory of any administrative and territorial entity;
- Implementation timeframe may not exceed 20 years;
- Capital investments - at least 10 million euros, in the first year - at least 1 million euros.
43 bids were submitted for the competitive bidding process for the organization of industrial and manufacturing zones from November 2 to November 28, 2005. On November 28, 2005, competitive bidding commission selected 2 regions - the Lipetsk region and Tatarstan - as winners to create industrial and manufacturing special economic zones.
R&D special economic zones
An R&D zone is a territory taken outside of the national customs territory, housing R&D, design bureaus and organizations. Examples of R&D zones: technology parks, technology polises.
- " Special economic zone in St. Petersburg
- " Special economic zone in the Zelenograd administrative district of Moscow
- " Special economic zone in the town of Dubna (Moscow region)
- " Special economic zone in Tomsk (Tomsk region)
Characteristics of an R&D special economic zone:
- R&D activities;
- Created on no more than two parcels of territory with a combined area of no more than three square kilometers;
- May not be located on the territories of several municipal entities;
- May not include the entire territory of any administrative and territorial entity. (part three of the July 3, 2006 edition of the Federal Law No. 76-FZ);
- Implementation timeframe may not exceed 20 years.
29 bids were submitted for the competitive bidding process to select R&D economic zones on November 2 - 28, 2005. Four regions won the right to create R&D special economic zones: St. Petersburg, Moscow (Zelenograd), Moscow region (Dubna), Tomsk region (Tomsk).
Tourist and recreational special economic zones
A tourist and recreational zone is a territory where tourist and recreational activities are taking place - creation, reconstruction, development of tourism and recreation infrastructure facilities, development of tourist services.
Under the Russian government decrees dated February 2, 2007, Nos. 67, 68, 69, 70, 71, 72, 73, the following tourist and recreational special economic zones have been created:
- Special economic zone in the Kaliningrad region
- Special economic zone in the Krasnodar Krai
- Special economic zone in the Stavropol Krai
- Special economic zone in the Altai Krai
- A special economic zone in the Altai Republic
- A special economic zone in the Buryat Republic
- A special economic zone in the Irkutsk region
Characteristics of a tourist and recreational special economic zone:
- Created on one or several parcels of territory determined by the Russian government
- May not be located on the territories of several municipal entities
- Tourist and recreational special economic zones may include the entire territory of any administrative and territorial entity
- Residential buildings may be built in tourist and recreational special economic zones
- Provision of tourist and health services
Port special economic zones
The bill "On amendments to certain legislative acts of the Russian Federation as regards creating port special economic zones" envisions the possibility of creating special economic port zones on Russian territory. The objective of creating special economic port zones on Russian territory is to stimulate development of the port economy and develop port services that could compete internationally.
A lengthy payback period of the port economy, high cost of capital assets used in the port economy, and the need for unchangeable legislative conditions over long time periods to guarantee appropriate conditions of doing entrepreneurial and investment business in the conditions of adoption of regulations worsening the conditions of business envisions creating special economic port zones for periods of up to 49 years.
Conditions of creation
The Federal Law "On Special Economic Zones in the Russian Federation" dated July 22, 2005, stipulates several conditions for creating special economic zones on Russian territory:
- Only three types of special economic zones may be created on Russian territory:
- R&D zones (with an area of no more than 2 square kilometers);
- Industrial and manufacturing zones (with an area of no more than 20 square kilometers);
- Tourist and recreational special economic zones.
- No special economic zone other than a tourist and recreational zone may be located on the territory of several municipal entities or include the entire territory of a municipal entity
- On the territory of a special economic zone it is prohibited:
- To product and process minerals;
- To product and process excise goods other than passenger cars and motorcycles;
Objectives of creation from the standpoint of the government
- Special economic zones, other than tourist and recreational special economic zones, may be created only on land parcels in state ownership;
- The decision to create a special economic zone is made by the Russian government based on the results of a competitive bidding process.
Objectives of creation from the standpoint of investors
- To attract FDI, advanced technologies at least to a limited part of the country's territory.
- Creating new jobs for highly-skilled personnel.
- Developing exports.
- Replacing imports.
- Testing new labor management and organization methods.
- Expanding to new sales markets.
- Bring production facilities closer to consumers.
- Minimizing costs due to the absence of export and import customs duties.
- Access to infrastructure.
- Access to cheaper labor.
- Attempt to reduce the impact of bureaucracy.