Russia To Invest Millions Into The Creation Of New Industrial Parks

The Russian government will allocate nearly ₽860 million (US$11 million) this year to finance the development of industrial parks and techno parks in numerous regions. Industrial and technological parks were a key component of China’s manufacturing success from the early 2000’s to the present day. They offer investment incentives, such as tax breaks, reduced utility overheads, and other subsidies, and are designed to help spur local investment and exports.

The Russia government’s press release on the subject states “The (Russian) Republics of Bashkortostan and Tatarstan as well as the city of Moscow will receive additional funding in 2025 to compensate for costs associated with implementing projects to develop industrial parks and techno parks. A directive to this effect has been signed.”

Over ₽520 million will be allocated for implementing projects at the Laishevo Industrial Park and the Innopark Advanced Techno Park in Tatarstan. Subsidies will also be increased for developing the Ufimsky Industrial Park in Bashkortostan and Rudnevo in Moscow, with over ₽219 million and ₽127 million respectively, to be provided to these regions for these purposes.

The Government directive said that “These subsidies will allow the parks’ management companies to partially reimburse costs for design, construction or modernization of industrial infrastructure facilities, for the purchase of equipment and for the technological connection of industrial buildings to utility networks.”

The mechanism for state support of infrastructure development for industrial parks, techno parks and special economic zones was launched in 2014. Regions receive federal funding based on a selection process conducted by the Industry and Trade Ministry. To receive funding for development, projects in the aviation industry, automotive manufacturing, light industry, oil and gas and power engineering, children’s goods production, the machine tool industry and more than 30 other fields must be implemented at these sites.

Typical tax breaks are at zero profits tax for the initial three years of productivity, gradually increasing to 15%. The standard corporate profits tax in Russia is 20%.