Performance issues of special economic zones in Russia

Abstract

This article provides an overview of the issues experienced by Russia’s special economic zones. One of the first steps taken by the Russian government to promote regional development and industrial support was the creation of special economic zones (SEZ) in the country. Despite the fact that certain SEZs were established more than 10 years ago, their performance is significantly lagging behind the forecasted indicators. This is due to the problems that arise at different stages of establishment and functioning of SEZ, including the lack of control over spending the budget funds and inefficient management of the zone. Increasing investment into a SEZ requires the use of integrated measures that should improve the zone’s performance.