MOSCOW, August 2 (RIA Novosti) - The creation of special economic zones (SEZ) will not only attract investment but also stem Russia's brain drain, a Russian official said Tuesday.
Yury Zhdanov, head of Russia's recently created Federal Agency for the Management of Special Economic Zones, said the agency would focus on new opportunities for economic development, attracting investment, and preventing brain drain from Russia.
However, the agency does not plan to replace the Russian economy with unlimited SEZs.
"Ten special economic zones will be created soon," Zhdanov said, adding that SEZ projects will be selected in a bidding process.
New SEZ laws passed in July and subsequent regulations address the prevention of tax evasion resulting from Russia's negative experience with offshore zones. "This is our main problem," Zhdanov said.
Legally SEZs are created to develop the processing industry, high technology, new products, and transportation infrastructure. The agency envisions the creation of two types of SEZs, including industrial (less than 20 square kilometers) and technological (less than two square kilometers).
Under the law, mining and natural resources processing is prohibited in an SEZ, including scrap metal processing, as well as the production and reprocessing of excise goods, excluding the production of cars and motorcycles.
