Russian govt approves expansion of Nizhny Novgorod special economic zone to create port

NIZHNY NOVGOROD. Nov 1 (Interfax) - The interdepartmental working group on the creation and development of special economic zones (SEZ) has approved expanding the Kulibin SEZ in the Nizhny Novgorod Region, with a river port and new production facilities are planned for the new site, the regional government press service said.

The Kulibin SEZ currently has a site in Dzerzhinsk. The new 117.7-hectare site is located in the town of Bor. After the expansion, The SEZ will increase over 15% to 842 hectares after expansion.

Ten companies operating in metalworking, logistics, and the agro-industrial complex have signed letters of intent to implement investment projects at the new site.

"A distinctive feature of the Bor site will be a multimodal port. We expect it to boost river freight volumes significantly and enable Nizhny Novgorod companies to access international markets via the Caspian Sea and the Black Sea basin," Nizhny Novgorod Region Governor Gleb Nikitin said in the statement.

Nikitin said that the regional government would consider other territories for the SEZ if necessary.

In April 2024, the berth in Bor was transferred from federal ownership to the Nizhny Novgorod Region. The Regional Development Corporation told Interfax that the territory is necessary to implement the project to create a multimodal river cargo port.

The Kulibin SEZ was established in May 2020. The SEZ's preferential terms reduce income tax rates for its residents from 25% to 2% for the first five years after receiving their first profit, to 5% for the next five years, and 14.5% thereafter. It also establishes zero rates for property, land, and transport taxes.