19 Oct 2023 15:02

Russia considering creating industrial zones in India, Iran and Latin America - Ministry of Industry and Trade

MOSCOW. Oct 19 (Interfax) - Russian industrial zones, similar to the one that is now being set up in Egypt, can be created in a number of African countries, as well as in India, Iran and Latin American countries, Russian First Deputy Head of the Ministry of Industry and Trade Vasily Osmakov told reporters, noting that the main task is to determine the status zones of this type.

"The problem is not where to build it, but how to build it. That is, what sort of presence it should have. It is under consideration in Africa, Egypt, India, Iran, and in Latin American countries. We are thinking about how to construct them," he said.

Currently, Russia is completing work on an industrial zone in Egypt. An intergovernmental agreement on the creation of a Russian industrial zone in the economic zone of the Suez Canal was signed by Russia and Egypt in 2018. As part of the agreement, it is planned to launch the zone at two sites with a total planned area of 525 hectares, in the Ain Sokhna area on the Red Sea coast (first stage) and on the eastern bank of the Suez Canal in northern Egypt.

It is expected that products manufactured in the Russian industrial zone (if localization conditions of more than 30% are met) will receive 'Made in Egypt' status, which will exempt them from paying customs duties when exporting them to countries in Africa, the Middle East, Latin America and other countries included in trade agreements with Egypt. In addition, up to 100% of the products produced in the zone can be sold on the Egyptian market itself. Zone residents also receive benefits for the import of equipment and materials, the opportunity to receive an income tax deduction, and are exempt from paying property tax.

The volume of budget financing for the creation and development of the Russian industrial zone in Egypt through 2026 is 9.5 billion rubles, the Russian Ministry of Industry and Trade reported.