Special economic zone of technology innovative type “Istok”

SEZ TIT “Istok” IS CREATED ON THE BASIS OF A LEADING RUSSIAN CORPORATION IN THE FIELD OF MICROWAVE ELECTRONICS - JSC “RPC “ISTOK” N.A. SHOKIN” (30% OF THE RUSSIAN MARKET)

In accordance with the Decree of the Government of the Russian Federation № 1538 dated 31.12.2015 a special economic zone of technology innovative type “Istok” (SEZ TIT “Istok”) was created on the territory of the urban district of Fryazino, Moscow region. The location of the SEZ TIT “Istok” in one of the largest Russian scientific centers with high scientific and technical potential determines the type of SEZ.

SEZ TIT “Istok” was created to provide conditions for research and development, creation of prototypes and production of pilot batches of high-tech products in accordance with the priority areas of scientific, technical and innovative activities, experimental developments, testing and training personnel assigned to the urban district of Fryazino as a science city.

Special economic zones are an integrated tool for economic development. The state creates special territories and gives them a special legal status and economic benefits to attract investors to priority sectors for Russia.

In our country special economic zones began to develop since July 22, 2005 when Federal Law № 116 “On the special economic zones in the Russian Federation” was adopted, due to the creation of favorable conditions for investors through the provision of tax, customs and administrative preferences. Following the interests of investors the state is building innovative, engineering, transport and social infrastructure in special economic zones at the expense of budgetary funds.

The creation of SEZ TIT “Istok” gives a new impulse to the implementation of investment projects in the field of microwave electronics, and in the future – the formation of the National Center of microwave electronics, which will unite Russian enterprises working in the microwave electronic industry with the aim of making a breakthrough in this area.

The following companies operate on the territory of Fryazino:

JSC “RPC “ISTOK” N.A. SHOKIN”
Лидер отечественной СВЧ-электроники (30% российского рынка)
STC Ltd. “IRE-POLUS”
The leading developer of laser instrumentation as part of one of the world leaders in this field – the scientific and technical group “IPG Photonics Corporation” (15% of the world market of all lasers and 75% of fiber lasers)
FRYAZINO BRANCHES of:
ACADEMIC INSTITUTES

(FIRE named after V.A. KOTELNIKOV RAS, SDB IRE RAS)

HIGHER EDUCATION INSTITUTIONS
Moscow State University named after M.V. Lomonosov (MSU), Russian technological university (MIREA),
Moscow state engineering university (MSEU), etc.

As the main results of the creation of the SEZ TIT “Istok” on the territory of Fryazino science city the following is expected:

  • Growth of investments in the development of high-tech production, improvement of the investment and business climate as a whole.
  • Improving the competitiveness of enterprises and organizations of SEZ TIT “Istok” residents.
  • Placement of research, development and engineering centers of Russian and foreign companies on the territory of Fryazino.
  • Stimulating the transfer and localization of production technologies for innovative products as well as commercialization of scientific and technical developments.
  • Intensifying production volumes, increasing the share of high-tech and science intensive products of SEZ TIT “Istok” enterprises in the gross domestic product of the country.
  • Increasing the number of jobs at enterprises and in organizations of SEZ TIT “Istok” residents, raising wages, improving the working conditions.
  • Increasing tax revenues to budgets of all levels.

Description of ground areas and real estate
(zonal planning of the territory)

Technology Innovative SEZ “Istok” on the territory of the urban district of Fryazino, Moscow region is formed on the following ground areas:
  • The ground area of JSC “RPC “Istok” n.a. Shokin” with the adjacent territory – 57.9 hectares;
  • The ground area of JSC “RI “Platan” with a factory at RI” - 2.6 hectares;;
  • The ground area of JSC Ltd. “May” – 2.1 hectares;
Perspective ground area 12 hectares.

Management company

Joint Stock Company “Management company for special economic zone “Istok” (JSC “MC SEZ “Istok”) performs the following functions:

Ensuring the creation of infrastructure facilities of the special economic zone and other facilities intended for its functioning.

Attracting residents and investors to the special economic zone.

Legal framework and regulations:

  • The Federal Law № 116-ФЗ dated from 22.07.2005 (ed. 18.07.2017) «On special economic zones in the Russian Federation».
  • The Decree of the Government of the Russian Federation № 1538 dated from 31.12.2015 “ On creating a special economic zone of technological innovative type on the territory of the urban district of Fryazino, Moscow region”.
  • The Tax Code of the Russian Federation.
  • The Law of the Moscow region № 151/2004-ОЗ dated from November 24, 2004 as amended on 28.06.2019 г. “On preferential taxation in Moscow region”.
  • The Agreement of June 18, 2010 “On the issues of free (special, specific) economic zones in the customs territory of the Customs Union and the customs procedure of the free customs zone”.