Three more priority development areas will appear in Bashkortostan

UFA, 7 February 2019. /Bashinform News Agency, Gulfiya Akulova/ translated by Tatiana Aksyutina/.

Three more priority development areas will appear in Bashkortostan - in the mono-cities of Beloretsk, Neftekamsk, and Blagoveshchensk. Applications for the creation of PDAs are approved by the Ministry of Economic Development of Russia. It was discussed yesterday at a working meeting chaired by the Minister of Economic Development of the Russian Federation Maxim Oreshkin with remote participation of representatives of constituent entities of the Russian Federation.

There are six single-industry formations in the republic: Neftekamsk, Beloretsk, Uchaly, Blagoveshchensk, Belebey, and Kumertau. PDAs are formed within the last two. Seventeen residents are registered in these territories. As of January 1, 2019, they created more than one thousand jobs and attracted about 1.8 billion investments.

Maxim Oreshkin noted that the department was preparing a draft law, which suggests a possibility of removing the PDA status.

“The main criterion is non-fulfillment of plans announced by the regions. It is an insufficient number of jobs, current residents and investment. The document is scheduled for adoption during the spring session. In the autumn, we will be making the first selection among the regions, which single-industry towns that are at risk”, the minister outlined.

According to him, after the creation of PDA in 22 Russian mono-cities, the acceptance of applications from the regions stops: “No more PDA will be created in mono-cities. However, the government will continue its policy of supporting employment and developing activity in single-industry towns. The key channel will be the Mono-Cities Development Fund and its new program”.

The main focus will be the mechanisms of additional support for small and medium-sized businesses. In particular, the new program provides for an extension of the term for granting a soft loan from 8 to 15 years. The minimum amount of Mono-Cities Development Fund’s participation in financing an investment project has been reduced from 100 to 10 million rubles. Moreover, now the Fund finances 80% not 40% of the project cost. At the same time, a zero interest rate is set for loans up to 250 million rubles with a bank guarantee.

“This will be the most beneficial program on credit resources. By the way, it is already running and you can start working with the Fund”, concluded Maxim Oreshkin.