New regions will receive a single regional subsidy for the first time

The Ministry of Industry and Trade distributed 3.3 billion rubles. a single regional subsidy for co-financing the development of industry in 2024 among 73 constituent entities of the Russian Federation. For the first time, the Donetsk and Lugansk People’s Republics, Zaporozhye and Kherson regions will receive subsidy funds, reported government press office.

“The unified regional subsidy makes it possible to reimburse part of the costs of industrial enterprises for technical connection, the payment of the first installment (advance) when concluding a leasing agreement, the purchase of new equipment, as well as the additional capitalization of regional industrial development funds, this is an effective tool that is in demand today in the regions,” the Minister of Industry and trade Denis Manturov.

Total for a single regional subsidy for 2021–2024. allocated 11.3 billion rubles.

On June 21, the Federation Council approved a draft law on the creation of a free economic zone in the territories of the Donetsk and Lugansk People’s Republics, as well as the Zaporozhye and Kherson regions. According to the bill, the new territories will be subject to a special regime of taxation and the calculation of insurance premiums. Among the benefits offered are a zero rate of income tax, exemption from corporate property tax, as well as land tax on plots of the SEZ territory for three years. In addition, reduced rates of insurance premiums will operate in the zones – 7.6% instead of 30%. Businesses in new regions can also be provided with subsidies for bank loans. The free economic zone will operate from January 1, 2024 until January 31, 2050.