Econ Min approves creation of priority development areas in 11 mono-cities

St. Petersburg. Aug 11 (Interfax) – The Russian Economic Development Ministry has approved the creation of priority development areas (PDA) in 11 mono-cities – cities that are predominantly dependant on one industry or factory – in nine constituent members of the Russian Federation, the minstry’s press service said.

The Economic Development Ministry commission has approved the creation of PDAs in Zarinsk in Altai Territory, Serdobsk in Penza Region, Kondopoga in Karelia, Dalmatovo in Kurgan Region, Sayansk in Irkutsk Region, Kanash in Chuvashia, Pikalevo in Leningrad Region, Vyatskiye Polyany in Kirov Region and Zelenodolsk, Chistopol and Nizhnekamsk in Tatarstan.

The projects aim to create at least 14,000 jobs in the mono-cities within 10 years and attract no fewer than 170 residents.

“The creation of a PDA allows for mono-cities to diversify their economies and reduce dependence on the town’s core enterprise. PDA residents in mono-cities will receive a wide range of preferences. In particular investors will be provided with tax breaks and exemptions from mineral extraction tax. In addition, premiums to non-budgetary funds are reduced almost 75%,” the statement said.

As of August 11, 2017, 42 companies were registered as residents of PDAs in mono-cities.

The final decision on the creation of PDAs in these mono-cities will be taken by Russian Prime Minister Dmitry Medvedev.