The networking technology company Cisco concluded an agreement with the Development Corporation of the Kaliningrad region to provide information and communication technology (ICT) solutions for innovative development. The Kaliningrad enclave is the westernmost federal subject of Russia that is not contiguous with the main country, lying between Poland and Lithuania on the Baltic Sea. In line with the memorandum of understanding between Cisco and the Kaliningrad company, a standing committee is to be formed to draft a scheme for implementing the ICT concept within the region. The basic scheme envisions the construction of industrial clusters in the region, which are to go hand in hand with scientific parks, business incubators, engineering centers, and other infrastructural objects tailored to the needs of an innovative and industrial economy.

In particular, the regional corporation and Cisco plan to join efforts in the development of IT projects to further regional progress in the areas outlined in the Moll. Great emphasis will be placed on technologies enhancing vocational training, e-government services, e-commerce, and healthcare, which includes telemedicine.

As the centerpiece of the memorandum of understanding, the Kaliningrad company engaged Cisco’s services to devise an innovative development cluster named Ingrad Baltica, the purpose of which would be to harness innovation within the region. As per the agreement, the region seeks to establish an information technology park that would become home to over 120 high-tech companies. According to plans, the development should generate 2,500 new jobs by the time it is completed in 2014. Additionally, a business incubator is to be established in the park’s vicinity.

According to analysts, the experience of Cisco in devising “Smart+Connected” communities around the world in a number of nations will be instrumental in realizing the project that the Kaliningrad Region Development Corporation commissioned. Cisco’s collaborative efforts with the Russian company will lead to the development of smart infrastructural solutions that are aimed at enhancing the delivery of city services.

As part of its work in the Kaliningrad region, Cisco will use the experience it gained from working at the Skolkovo center for innovation, which has now become one of the most high-tech science centers around the globe. In effect, Cisco has become an important player within the Skolkovo project thanks to its significant commitment to that project.

Primorsky krai gives privileges to investors

The Primorsky krai, which is one of Russia’s far eastern regions, is among the first to extend tax privileges to significant investors. The territorial legislature amended regional laws to provide substantial tax breaks to commercial entities and natural persons investing a considerable amount of money in the region effective January 2014. As such, corporations whose projects result in the creation of high-efficiency jobs will be relieved from the assessment of income taxes, as well as property taxes for a term of five years.

The tax breaks and incentives are to be in force for all enterprises that began their operations in the Primorsky krai on or after January 1, 2013. The minimum investment commitment for the privileges to apply is RUR150 million in three years or RUR500 million in five years. The figures are equivalent to USD4.56 million and USD15.18 million respectively. Moreover, to qualify for the benefits, the projects initiated must come from priority economic areas, including the chemical industry, the electricity generation and distribution sector, farming, fishing, the mineral processing industry, and mining.

According to Viktor Gorchakov, the speaker of the territorial legislative assembly, the Primorsky krai is among the first in Russia to grant such tax incentives that are targeted at improving the investment situation in the region and at attracting businesses to the region. According to the Primorsky krai’s Governor Vladimir Miklushevsky, the tax benefits offered will ensure that the new businesses starting their operations in the region enjoy competitive advantages. The Governor is convinced that the year 2014 will witness a giant leap forward for territorial development.