President Vladimir Putin on Tuesday announced a plan to diversify Russia's economy and develop its high technology sector by creating special zones where high-tech companies would enjoy tax breaks and other incentives.
Speaking in Akademgorodok, a Siberian center of Soviet-era scientific might, Putin ordered the government to draft legislation by March 1 for the creation of zones meant to foster the development of Russian information technology and other high-tech industries.
"One of the most important tasks in the sphere of the economy is its diversification, Putin told a conference. "The need to move away from the focus on raw materials is obvious. We have talked about this a lot, but unfortunately little has been done in practical terms."
Russia has enjoyed five years of oil-fueled economic growth during Putin's presidency, but economists repeatedly have warned of the need to diversify. Putin said Russia must "create conditions for speeding up the development" of manufacturing and technology.
"While creating order quite firmly in the sphere of tax administration of the raw materials sector, we must not create barriers for the economy itself and especially for the manufacturing industry, including the sphere of information technology," he said.
The special economic zones would nurture high-tech companies by offering them lower tax rates, favorable customs regimes, less of the red tape that stifles businesses and fosters corruption, and state aid in funding infrastructure, he said.
By: N. Peter Kramer
