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7 October 2014

The Special Economic Zone of Togliatti

The Special Economic Zone of Togliatti

The Special Economic Zone (SEZ) is a limited territory in the regions with a special legal status and favorable economic conditions for domestic and foreign entrepreneurs and companies. The main reason to create these zones is to solve the strategic objectives of the state or separate areas. Furthermore, it helps to deal with trade, general economic, social, regional, and scientific and technical problems of those areas.

SEZ "Togliatti" was established in Stavropolsky district of Samara region. It has enormous territory, so the total area of the SEZ is 660 hectares.

SEZ "Togliatti" specializes in the following fields of activities:

  • Automotive manufacturing (vehicles and vehicle components)
  • Construction materials
  • Mass consumer goods

There are some prerequisites for the establishment of industrial and production SEZ in Samara region:

  • high industrial potential of the region;
  • high investment attractiveness of the region;
  • high labor potential;
  • advantageous economic and geographic location, extensive transport infrastructure.

There shall be an effective system of public administration in SEZ "One stop shop" scheme. This system will allow facilitating paperwork, decreasing administrative barriers using a single contact point for all types of business cooperation with the state.

Another good feature is that during the first 5 years the SEZ residents are rid of property, land and transport taxes. Income tax is reduced down to 15.5%.

SEZ "Togliatti" is situated in one of the most populated Russian regions. Population within 500 km from the SEZ is about 20 million with huge millionaire cities like Samara, Kazan and Ufa. There are over 70 million people living in the 1 000-km radius from the SEZ. The area of traffic availability encloses such big cities as Moscow, Yekaterinburg, Nizhniy Novgorod and Volgograd. It represents about 50% of the country population, which is a big consumer market.

All these advantages and features show that SEZ Togliatti is one of the best SEZ in Russia as it provides everything that modern entrepreneurs would need not just right now but also in the nearest future.

by Valentin Popov, 3rd year student
Togliatti Academy of Management


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