Moscow, Moscow region, other Russian regions invite Elon Musk to build Tesla plant
MOSCOW. May 21 (Interfax) - The authorities of Moscow, the Moscow region and other Russian regions expressed readiness to localize Tesla manufacturing after Elon Musk had expressed interest in expanding Tesla, Inc.'s presence in Russia.
"The city is open for cooperation with innovative and cutting-edge companies and ready to provide all necessary assistance with localizing production in the capital," Vladimir Yefimov, the deputy mayor for economic policy and property and land relations, said on the Telegram channel of the Moscow city complex for economic policy.
Necessary conditions for the development of innovative manufacturing, including for foreign investors, have been created in Moscow, the Telegram channel said.
Alexander Prokhorov, the director of the Moscow city department for investment and industry policy told Interfax that Moscow is ready to provide investors with an area to localize production and considerable tax exemptions as part of the development of priority projects, as well as a location in an industrial park or a special economic zone.
"We're providing land without auctions as part of large-scale investment projects and giving considerable tax exemptions to priority projects. Additionally, there are options of location in industrial parks or a special economic zone," Prokhorov told Interfax.
Residents of special economic zones receive tax exemptions and conditions of a customs-free zone.
"We're ready to discuss the conditions with Mr. Musk and make specific offers," Prokhorov said.
Enterprises with which a Tesla plant could create efficient production chains operate in Moscow, he said. For instance, those include manufacturers of charging stations for electric cars, composite materials, and robotic systems.
"The Russian developer and manufacturer of power conversion equipment, the Parus Electro company, produces charging stations for electric cars. Production lineup includes power capacities from 22 to 180 kWt for light vehicles and public and corporate electric transport," Parus Electro General Director Vladimir Khlebnikov told Interfax.
Moscow Region Governor Andrei Vorobyov earlier invited Elon Musk to build a Tesla plant in the Moscow region. "Elon Musk, Moscow region is definitely best for a Tesla factory. Best talent, perfect logistics, Mercedes production already here! We'll find you a perfect spot," Vorobyov said in an English-language comment on Musk's Twitter page.
Heads of other regions also made similar offers to the entrepreneur from the United States remotely. One of them was the governor of the Sverdlovsk region, Yevgeny Kuivashev.
"Tesla founder Elon Musk announced in his speech at the Russian forum New Knowledge on Friday that an electric car factory would soon appear in Russia. Titanium Valley in the Sverdlovsk region is an ideal venue for it. No kidding. It is a special economic zone with full infrastructure and privileges for investors," Kuivashev wrote in an Instagram post.
Privileges of a special economic zone enable cutting the expenses for a new plant by 30%, the governor said.
"In addition, the Sverdlovsk region is an industrial area with tremendous innovation potential. We have everything: science, education, high-class specialists and other enterprises with which it is convenient and beneficial to establish cooperation ties. And most importantly, the wish to help with the implementation of new breakthrough projects. Mr. Musk, I would like to invite you to the INNOPROM international industrial exhibition in Yekaterinburg in July to discuss the capabilities and details of the project. Welcome to the Sverdlovsk region," he said.
Udmurtia head Alexander Brechalov also expressed readiness to host Tesla manufacturing. "Welcome to Udmurtia! The venue is ready for you," he wrote on Twitter.
"Udmurtia can offer you tax exemptions and industrial parks. And our staff is the best in the country! Invest in Udmurtia! Welcome to the most entrepreneurial region of Russia!" Brechalov wrote on Twitter.
Speaking at the New Knowledge marathon via videoconference on Friday, Musk said that Tesla may enter the Russian market soon and build its plant in the country.