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Russian Special Economic Zones: Business Navigator

Research
11 December 2019

Study of investment activity in Russian SEZs


The all-round analysis and comprehensive assessment of investment activity in Russian Special Economic Zones (SEZs) offered in this publication provide investors with essential information concerning the Russian SEZs, which intensifies cooperation in investment projects and has a positive effect on innovative enterprises.

The publication examines the practice of establishing and developing SEZs and the specifics of their functioning in various countries, such as Japan and Singapore. Then, the authors proceed to cite key indicators of the Russian SEZs which demonstrate positive dynamics.

For example, the total number of SEZ residents increased from 246 in 2012 to 656 in 2017, while their aggregate revenue reached 156,101 million rubles in 2017. Notably, labor productivity of the SEZ residents in 2017 was 38% higher than the all-Russian average.
The authors of the report give full consideration to the specifics of SEZ operating in Russia, such as the procedure for acquiring a SEZ resident status, main requirements for SEZ residents depending on the type of SEZ, and principal features of the process of SEZ establishment depending on its type.

SEZs Investment Attractiveness Index


The report lists the primary privileges available to SEZ residents, such as federal and regional tax exemptions, national guarantees, advanced infrastructure, preferential lease price and purchase of land, and a free customs zone, with special emphasis on the tax privileges in SEZs.

A large section of the publication is devoted to profiles of the Special Economic Zones of the Russian Federation. The publication also offers the National SEZ Investment Attractiveness Index. Importantly, the authors provide the methodology for calculating the index which makes the results easier to understand.

This publication has been posted in the Roscongress Information and Analytical System on the recommendation of the Roscongress Foundation expert community.

Anlytics on the topic

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Research
26 September 2019
Structured Notes: Criteria For Retail Investors
The placement of SNs under the Russian law can be incentivized by the introduction of access criteria for non-qualified investors. Federal Law 75-FZ introducing SNs in the Russian securities market entered into force in October 2018. The SNs novelty rests in that under certain circumstances, specified in issue documents, their issuer is allowed to pay the note holders less than the face value of the notes. Those circumstances include a range of triggers, such as changes in the costs of goods and securities, currency exchange rate, interest rates, official statistic data, inflation rate, etc. Circumstances determining the payments to note holders also include the default by corporate, sovereign and municipal entities (reference entities), which laid the groundwork for the issuance of Russian CLNs.

So far, there have been no SN offerings under the new law. Structured products (including those originated in overseas jurisdictions) were available to Russian investors previously. The notion of a ‘structured instrument’ is broader than that of a ’structured note’. Structured products include not only instruments that do not guarantee the face value of a note, but also those that protect the investors’ capital against loss (the so-called investment bonds). The latter entitle their holders to claim from the issuers the repayment of their face amount, a minimal fixed-rate coupon and additional sums (depending, e.g., on prices for some assets. Typical examples of these products are deposits and bonds whose issuer has a sovereign-grade rating, which also contain a derivative component (a put option on some asset).The embedded derivative component allows a higher yield, while the interest income on the note ensures the repayment of the face amount.

On June 30, 2019, there were 168 structured instruments issued by Russian market participants, including capital-protected products, , equivalent to around $2.15 billion, of which 109 issues ($90.366m) were denominated in rubles, 52 ($654.7m) in US dollars, and 7 ($71.6m) in euro.
Research
8 July 2020
The US Sovereign Debt Is No Longer The #1 Asset

Expert RA, Russia’s largest rating agency issues the analysis ‘The US Sovereign Debt Is No Longer The #1 Asset. It is the first report on international financing and investment, which also touches on strategies and development projects, including Public Private Partnerships.


Articles
1 November 2019
Provision of Technology Transfer at the National Level

The paper analyses the concept of technology transfer as the main element of scientific and technological development. The relationship of technology transfer with basic and applied research is defined. The tools of forecasting as a means of analysis and planning of scientific and technical development, as well as the position of the Russian Federation on technology transfer are considered.

Analytical digest
15 August 2018
Outcomes of SPIEF 2018
The theme of this year’s St. Petersburg International Economic Forum was ‘Building a Trust Economy’