The DPR is waiting for miners from all over Russia: what does a free zone mean for the republic

Must ensure socio-economic development

A Free Economic Zone has opened in the DPR. Let us remind you that the SEZ on the territory of the new constituent entities of the Russian Federation was created at the end of June this year. Today, according to the Territorial Development Fund, the SEZ in the DPR already has 49 participants, almost 38 thousand workers are planned to be involved in the implementation of projects, and the volume of declared investments is approaching the mark 32 million rubles. What does joining the FEZ mean for Donetsk business?

The creation of a zone until December 31, 2050 should ensure the socio-economic development of the annexed regions, that is, enterprises will receive preferential taxation, subsidies that will reimburse the interest rate on the loan, and a free customs zone will be created, allowing imported foreign equipment to be exempt from customs duties .

This will, firstly, create new jobs and help enterprises from the state. The mechanism for doing business is simplified, the state provides guarantees and an investment tax credit.

Secondly, SMEs can count on both property support in the form of the use of state or municipal property, and in the form of financial support.

Thirdly, the SEZ helps strengthen interregional cooperation between enterprises and companies.

For example, Russian state corporations are already cooperating with the South Mining and Metallurgical Complex, which unites the seven largest metallurgical and coke-chemical industries in Donbass. Among them are the metallurgical plants Enakievo, Makeevki, Yasinovatsky Koksohim, Alchevsk Metallurgical Plant, Komsomolsk Mining Plant and Stakhanov Ferroalloy Plant.

At the beginning of November, two more enterprises entered the SEZ – Donbass Aerated Concrete and Anthracite-Region, which expect to receive investments of 200 and 42 million rubles, respectively.

The DPR’s entry into the SEZ facilitates the transition of the region’s mines and energy sector to new standards. The reconstruction of the Republic’s coal enterprises requires an almost complete replacement of equipment and the attraction of miners from other regions of Russia to the region.

Not only large companies can enter the SEZ, but also SMEs and IT companies with registration in new regions and with obligations to make capital investments in the first three years of the project.