SEZ Lotus and port SEZ are located in Astrakhan region at the intersection of the International North-South Transport Corridor (the INSTC) and the north part of the Great Silk Way. Astrakhan region borders other Caspian States. There are 8 states within a radius of 1000 km from Astrakhan with a total population of more than 300 million people.
Such advantageous geopolitical location of SEZ Lotus and a port SEZ makes them unique special economic zones in Russia that have access to the markets of the Caspian countries, India, Southeast Asia and the Middle East. Considering a dynamically developing International North-South Transport Corridor, the implementation of a project within these special economic zones in Astrakhan region seems to be the best solution for a company, contemplating market access.
The INSTC that runs through the Caspian Sea and Astrakhan region, is the shortest and the most cost-effective route for cargo deliveries from India, Southeast Asia, Africa and Middle Eastern countries to Europe and back. The main advantages of the INSTC compared to other routes, in particular the route running through the Suez Canal, are distance reduction by more than a half, time saving for container cargo transportation from 37 to 15-17 days, and a 30% reduction of transportation costs.
Industrial production special economic zone Lotus (SEZ Lotus) was incorporated in Astrakhan region under the Russian Federation Governmental Decree №1214 as of November 18th, 2014. Currently, in SEZ Lotus there are 16 tenants with more than 30 billion rubles of the declared investments, including companies from Russia, Italy, Azerbaijan and Iran. SEZ residents are provided with engineering infrastructure, access roads that are currently being built alongside the territory which nowadays is being developed.
According to the set of measures for the development of the INSTC transit potential on November 7, 2020 a Russian Federation Governmental Decree on setting up of a port special economic zone in Astrakhan region, which will be integrated with the industrial-production SEZ Lotus under the Caspian Cluster, was adopted. Construction of a new port and logistics complex boasting a modern container terminal will be the anchor project.
SEZ Lotus residents are eligible for carrying out various types of industrial and production activities. Starting up enterprises of 5 hazard classes is another option. Moreover, the proximity to the shipbuilding and oil and gas markets looks rather promising as well: oil and gas companies are implementing their long-term projects in Astrakhan region and the Caspian Sea offshore areas; large and medium-sized shipbuilding enterprises (including divisions of the United Shipbuilding Corporation) operate in the region.
Considering the current political and economic situation, the most promising industries for localizing production on the territory of SEZ Lotus are shipbuilding, production of equipment and components for oil and gas industry, chemical industry, food processing industry, pharmaceutical and other high-technology industries. The industries are determined on the basis of considerable level of resources in Astrakhan region and in the Southern Federal District. SEZ Lotus residents are provided with the required amount of resources such as water, gas, electricity.
A port SEZ resident is eligible for carrying out the following port activities:
- warehousing of goods, storage and other services typically provided in ports;
- provision and equipment of vessels;
- production, repair, maintenance, modernization of sea-going, river vessels and other components;
- water biological resources processing;
- preparation operations of goods for sale and transportation (packing, sorting, repacking, lot dividing, marking and similar operations);
- simple assembly and other operations, execution of which does not considerably change goods conditions according to the list approved by the Russian Federation Government;
- exchange trade in goods;
- wholesale trade in goods;
- provision of port special economic zone infrastructure object functioning;
- production activity according to the port special economic zone activity agreement.
SEZ residents enjoy the following preferences:
- tax and customs concessions (in compliance with the laws of the Russian Federation);
- free access to utility infrastructure;
- “one-stop shop” administrative streamlining;
- robust logistics capabilities (rail, road and ship transport);
- preferential land lease terms, possibility to secure land plots upon completing the construction of real estate on the land plot.
The project of a SEZ resident should provide at least 1,5 million USD investment in his own production and this amount contains such expenses as construction of industrial facilities, equipment costs and other operating expenses necessary for the commencement of works. The project of a port SEZ resident should provide at least 5,2 million USD investment for the construction of the port infrastructure and at least 1,5 million USD for the reconstruction of the port infrastructure.
Business plan should be submitted to secure the resident status. After a successful presentation of the business plan the company concludes an agreement on industrial production activity with the Government of Astrakhan region and SEZ Lotus. Within three years of the date of conclusion of the agreement on carrying out activities, a resident is obliged to make capital investments in the amount not less than 526,000 USD. The resident status is valid until the year 2063 for SEZ Lotus residents (until the year 2069 for the port SEZ residents).
For more information on the advantages of SEZ Lotus and port SEZ please visit the official website www.sezlotos.ru
8 reasons to choose the Lotos Special Ecomonic Zone in Astrakhan