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THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SUPPORTS RUZAEVKA’S APPLICATION FOR PRIORITY SOCIAL AND ECONOMIC DEVELOPMENT AREA

Ruzaevka is the first single-industry town of the Republic of Mordovia to submit an application for the status of priority social and economic development area. On June 28 a special commission of the Ministry of Economic Development of the Russian Federation supported the Ruzaevka’s application. The status of priority social and economic development area will contribute to attracting investments due to tax incentives and other benefits.

In Russia, there are 319 towns with most of working-age population employed in one or several enterprises (as a rule, of the same industry). In November 2016 the Presidential Council for Strategic Development and Priority Projects of Russia has approved of a master plan for single-industry towns development. In Mordovia they are Umyot, Kadoshkino, Turgenevo, Komsomolskiy, Atyashevo and Ruzaevka.


The master plan of the priority project sets some objectives for the towns such as jobs creation, attracting investments and development of comfortable environment. Project office of Mordovia has approved of a master plans for the development of single-industry towns of the republic. It includes activities to improve the following areas:

  • investment attractiveness;

  • efficiency of municipal management in the towns; 

  • favorable conditions for development of small and medium enterprises;

  • assistance in implementation of investment projects; 

  • Federal and regional state support for the towns;

  • urban environment.

Igor Zhuravlyov, a deputy Minister of Economy of the Republic of Modovia, pointed out that each single-industry town has a different social and economic situation as well as potential for development. According to him, the situation in Ruzaevka is the most difficult, but at the same time the town has great development opportunities. They are favorable location in the center of the most densely populated regions, equal distance to big cities, good logistic opportunities of a large railway hub, federal highways and an airport, proximity to the capital of Mordovia Saransk with all its opportunities.


The status of priority social and economic development area will significantly contribute to Ruzaevka development. The status is assigned for 10 years and can be prolonged for another 5 years. Residents of the area are granted special legal regime for doing business. It includes tax incentives, such as the reduction of income tax and property tax as well as insurance premium benefits.


To become a resident of the priority social and economic development area one should create 10 new jobs and invest 2.5 million rubles to their project implemented in the single-industry town for the first year.


Today in Ruzaevka, there are six projects with 1.1 billion rubles of investments that will create 650 new jobs. Three other projects to create 500 new jobs are under consideration now.