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Law on territorial development zones in Russia

December 6, 2011

Dmitry Medvedev signed Federal Law On Territorial Development Zones in the Russian Federation and Amendments to Certain Legislative Acts of the Russian Federation.

The Federal Law regulates relations in connection with creation, operation, and disestablishment of territorial development zones in the Russian Federation.

A territorial development zone is a part of territory in one of Russia’s federal constituent entities where a special legal status is in effect to implement measures of state support for residents in that zone. The goal of these zones is to boost socio-economic development in the federal constituent entity and create favourable conditions for attracting investments in its economy.

In particular, the special legal status in a territorial development zone involves tax benefits to residents, budgetary appropriations from the Investment Fund of the Russian Federation to implement investment projects, preferences for land rent and construction of energy and transport facilities that are necessary for the residents’ entrepreneurial activities, and other measures of state support.

December 6, 2011