Dmitry Medvedev’s opening remarks at the Government Commission meeting.
Excerpts from Dmitry Medvedev’s opening remarks:
Meeting of the Government Commission on Socio-Economic Development of the Kaliningrad Region
Last year, the Kaliningrad Region became a leader – it registered faster growth rates in several key indicators as compared to the national average.
During 2014, industrial production grew by almost nine percent (the national average was 1.7 percent). The housing sector grew by 75 percent (compared to the national average of 15 percent). As a result, the region ranked second in terms of commissioning new housing per 1,000 people. Agricultural production increased by over nine percent, and grain production went up by 30 percent.
By and large, the development rates of the region’s economy are sufficient for the transitional period of a special economic zone. During this period, goods that are produced in the region using imported parts enjoy duty relief.
This applies to about 100 resident companies and 785 legal entities. They employ about 50,000. This area accounts for about one-quarter of the gross regional product and the bulk of tax revenues.
However, duty relief will cease to exist as of 1 April. This step is part of our WTO commitments. Of course, it will create certain risks for entrepreneurs and be a serious challenge for the region’s economy and social sphere.
Last May, we held a meeting on this issue in Kaliningrad and drafted a number of decisions to adapt the region’s economy for the completion of the transition and to retain a favourable business climate.
These decisions simplified customs rules and procedures, reduced the minimum investment from 150 million to 50 million roubles for residents of the economic zone, included in the zone entrepreneurs who are prepared to invest in tourism and its infrastructure and provided for subsidies to support the regional labour market, reimburse some of the expenses for freight senders and regulate electricity prices and the development of port activities.
Meeting of the Government Commission on Socio-Economic Development of the Kaliningrad Region
Some decisions have already entered into force as normative acts.
Others are still at the draft law stage and are being cleared in Government bodies. It is important to implement them as soon as possible.
In September, we will hold another meeting of the
Government Commission. We should be 100-percent sure that we have adopted
exhaustive decisions to ensure the sustainable development of the Kaliningrad
Region.
