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Tatarstan’s new Special Economic Zone Alabuga

As part of its policy initiative to encourage economic innovation and diversification away from oil and gas, the federal government is setting up several Special Economic Zones (SEZ) around Russia, companies in which will enjoy special tax privileges. One such zone is being set up in Tatarstan, near the historic city of Elabuga.

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The Alabuga Special Economic Zone is particularly special because, while most of the zones around Russia have been ear-marked for IT, the Alabuga zone is intended to become a ‘cluster’ for automobile construction.

What special tax privileges will companies enjoy? Sergei Narvatkin, expert from the department of foreign activity for the territorial board of RosOEZ for the Republic of Tatarstan, says: "Firstly, machinery and components imported to the zone are exempted from import duty and VAT for the duration of their stay in the zone.

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