The main advantages offered by ASIA to the manufacturers:
The opportunity to start investment and production within the earliest term possible in Russia (4-5 months)
The guarantee to complete the construction of the facility within the time period of the project and the proposed budget
Completion of the production facility and commencing production, in return for a letter of guarantee
It’s possible to analyse these advantages in three investment phases:
1. Pre-investment phase advantages
Organised Industrial Area with completed infrastructure: The companies avoid losing time with infrastructure permissions and installation. The manufacturers operating in ASIA are exempt from licence charges on installation and usage.
The opportunity to become a proprietor: ASIA belongs to Sefa LLC. and the manufacturers operating in ASIA have the right to purchase land and production facilities.
Moreover, exemption from customs duty and VAT on investment machinery is the standard practice in Russia.
The biggest state bank in Russian Federation; SBERBANK provides various options of long-term (10-15 years) and non-repayable for several years project finance, with rates below the market.
Finance is available for all types of projects (infrastructure. equipment etc.)
There’s no financial limit.
In addition, SBERBANK has stated that a branch may be opened at ASIA in the future.
2. The advantages during the construction phase:
ASIA guarantees the completion of investments within the planned budget, thanks to minimum levels of bureaucratic complications and risk factors.
All the project and construction licences are obtained: ASIA has all of the construction and project licences, including the licences for construction of production areas. It’s possible to design a project and complete the construction, by making alterations on the existing projects according to manufacturers’ demands, on short notice.
The shortest time period possible in Russia: The opportunity of completing the construction within such a short time period of 4-5 months and commencing the production on obtaining all required licences, including the business licence. This phase takes a minimum of 15-18 months in the most efficient regions of Russia and up to 24-30 months on average.
3. The advantages on administration and production phases:
Low energy costs
Exemption from electricity usage licence: Due to the privilege granted on ASIA by the Turkish-Russian Joint Economic Commission Protocol, the investors in the area are exempt from electricity usage licence.
Cogeneration facility: A cogeneration facility licence is available in ASIA, in order to minimise the electricity costs of the manufacturers. There are plans to establish a cogeneration facility in the area.
The gas prices are based on state enterprise rates: Due to the privilege granted on ASIA by the Turkish-Russian Joint Economic Commission Protocol, the investors in the area benefit from the state enterprise rates on gas bills. This rate is 20% lower than the normal rate.
4.5% deduction on corporate tax: The corporate tax in Russia is 20%. Tax reductions up to 15.5% are available for the manufacturers operating in ASIA, for the duration of the investment return specified in the business plan.
Exemption from property tax: It’s possible to benefit from an exemption of 2.2% of total investment value annually, for the duration of the period of investment return specified in the business plan.
The quotas on foreign workers and work permit guarantees:
Every region in Russia has its own foreign worker quota. The companies willing to recruit foreign personnel have to apply for quotas. The Governorate of Vladimir gives priority to ASIA manufacturers in quota allocation.
The governorate has given the guarantee to sort out the work and residence permits of the foreign personnel within the shortest time possible.
The governorate guarantees its support on the provision and training of the qualified personnel when necessary.
Lower costs compared to cities such as; Moscow and St. Petersburg (energy, workforce, properties etc.)
Customs Clearance: The manufacturers operating in ASIA will be unaffected from time and money consuming procedures experienced in border customs, thanks to a customs bureau, which will be established within the structure of ASIA.
The opportunity to benefit from social and organisational services as part of a package.
The Geographical Location: ASIA is situated only 100km away from the administrational and business centre of Russia and the biggest market for the majority of sectors: Moscow and within the proximity of three international airports. Therefore, it won’t be necessary for the manufacturers operating in ASIA to hire extra storages near Moscow.
ASIA is right next to the railway line. Transport can be made by railway within Russia.