The resolution was drafted by the Ministry of Economic Development in compliance with Government instructions.
In accordance with the agreement on the establishment of the Titanium Valley Special Economic Zone in the Sverdlovsk Region, the construction of the zone’s facilities is financed only from the Sverdlovsk Region budgetary and extra-budgetary sources and does not receive federal budget allocations. In 2011-2013, allocations from the Sverdlovsk Region budget reached 951 million roubles, and the 2014 funding has been approved at 841 million roubles.
The cost of the facilities that will be built during the first stage of the project in 2012-2016 has been estimated at 25 billion roubles, of which 9.5 billion roubles will be provided from the regional budget.
The financing of the economic zone exclusively from the Sverdlovsk Region budget will considerably increase the infrastructure construction timeframe and complicate the zone’s development.
The resolution, which has been drafted to remove this limitation, adds a clause on additional allocations of at least 4.7 billion roubles from the Sverdlovsk Region budget to Government Resolution No 1032 of 16 December 2010. It also instructs the Ministry of Economic Development and the Ministry of Finance to stipulate the allocation of up to 4.8 billion roubles for the development of the Titanium Valley when drafting the federal budget for 2015 and the planning period of 2016 and 2017.
This resolution is aimed at developing the special economic zone’s infrastructure and at ensuring the operation of its residents.
The potential zone residents’ investment has been estimated at approximately 12.4 billion roubles, which should suffice to create 2,160 jobs and to produce up to 11.5 billion roubles in tax deductions.
