Ministry of Economic Development of Russia Recognizes Effectiveness of SEZ "Ulyanovsk"

The Ministry of Economic Development of the Russian Federation reviewed work of special economic zones both in 2020 and for the entire period since they were created. Port Special Economic Zone "Ulyanovsk" proved to be fully efficient.

“The port special economic zone is a promising territory for the region development. First of all, as far as new enterprises and jobs for residents of the Ulyanovsk region are concerned. Almost 800 jobs have been created at the site since it was established. We expect that the new enterprises, which are to be opened this year, will create several hundred more workplaces for Ulyanovsk residents,” said Aleksey Russkikh, Acting Governor of Ulyanovsk Region.

Experts of the Ministry of Economic Development evaluated performance of the SEZ by a number of indicators such as effectiveness of residents' activities, the return on investments used to build facilities for utility, transport, social, innovative and other types of infrastructure in special zones, operating efficiency of the SEZ management, and plans used when designing the investment site. An assessment also considered contribution of the SEZ to national development goals of the Russian Federation set by Presidential Executive Order No. 204 dated May 7, 2018 ("On National Goals and Strategic Objectives of the Russian Federation through to 2024").

Enterprises operating at the PSEZ have created 785 jobs, which is 114% of the planned indicators. Despite the pandemic in 2020, the port special economic zone managed to prevent job cuts and even created additional 103 jobs. According to Sergey Vasin, CEO of the Ulyanovsk Region Development Corporation, investments of the companies that placed their facilities in the port zone exceeded planned indicators by more than 2.5 times in 2020 and amounted to 2.1 billion rubles. In total, investors provided over 4.7 billion rubles for development of the site.

In 2020, residents of the PSEZ provided 274 million rubles of taxes and insurance instalments to budgets of all levels (excluding actual VAT reimbursed to SEZ residents and the management company according to Russian Tax Code).

Customs duties paid by residents during the same period totaled more than 227 million rubles.

Alexander Smekalin, Head of the regional Cabinet, explains that one of the reasons why PSEZ is so attractive for investors is development of necessary infrastructure. He said, “Favorable conditions and preferences created for residents and implementation of their projects, as well as development of important infrastructure, are essential to attract investors to our sites.” Ulyanovsk PSEZ has

built all the necessary utilities and transport facilities. Last year, three utility infrastructure facilities (150% of planned indicators) were completed and commissioned there; and in total, 34 facilities (100% of planned indicators) have been built since the PSEZ was created.

“This year we expect that ten new enterprises will be commissioned and opened in different manufacturing sectors such as production of packaging, plastics, inspection and climate control equipment, fire protection systems, composites, and other spheres,” said Oleg Barabanov, Head of SEZ "Ulyanovsk".