Econ ministry, big cos mull re-registering in Russian special zones

MOSCOW, Jun 1 (PRIME) -- The Economic Development Ministry is discussing with several large holdings the possibility of re-registering their businesses in special administrative zones in Russia, which the ministry offers to create on the Oktyabrsky Island near Kaliningrad and on the Russky Island in the Far East, Minister Maxim Oreshkin told reporters on Friday following a meeting of WTO trade ministers.

“Some progress has been made. A package of bills (on establishment of special zones) is ready,” Oreshkin said.

“We are at an active stage of discussion with large Russian holdings. Some of them show direct interest in re-registration,” he said.

A source in the government told PRIME that aluminum giant UC RUSAL, which was hit by the U.S. sanctions in April and is currently registered on Jersey, can become a resident of one of the special administrative zones in order to receive preferential legal terms for its activities.

“The negotiations are being held on RUSAL as well,” the source said.

Earlier in May, Oreshkin said that the proposed zones might start operations already in 2018 if a corresponding bill is approved. There is a joint position on creation of the zones in the government and consultations with business have been held, he also said, adding that the zones must be transparent for any regulatory authorities.

End