MOSCOW — Russian President Vladimir Putin has signed the federal law “on special economic zones,” the presidential press service reported. The bill, which defines the legal framework for such areas, procedures for their creation and rules governing business activity, was passed by the state duma on July 8 and approved by the federation council on July 13.

A federal agency for the administration of special economic zones would be set up, Putin’s decree said. The new agency will be controlled by the economy ministry.

As we previously reported, special economic zones are part of Russian state and customs territory where special regulations apply to business. The bill introduces customs and tax privileges for enterprises operating there.

Two kinds of zone will be set up - classified as technical and promotional, and industrial and manufacturing. The first will be created in an area of up to 2,000 square kilometers, the second across 10,000 square kilometers, for lifetimes of 20 years and open to both Russian and foreign businesses.

The single social tax will be reduced from 26 to 14 percent for businesses operating in technical and promotional zones. Companies will be exempt from tax on property and land for five years, and freed from import taxes in a move to stimulate export businesses and attract investment into manufacturing.

Zones will be customs-free areas where foreign goods will be moved without payment of customs tariffs or taxes and free of other economic restrictions envisaged by legislation on state regulation of foreign trade.

Operations in manufacturing and industrial economic zones must invest at least EUR 10 million to win permission to do business there. Another EUR 1 million must be invested within a year of the agreement being signed.

Thirty regions have already applied for the creation of special economic zones on their territories, among them Moscow, Moscow region, St. Petersburg, Novosibirsk and Tomsk. Kaliningrad region became the first to get a special economic zone status.

The bill comes into force 30 days after official publication.