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Industrial parks in Russia offer attractive gas tariffs for corporate residents

Gas for legal entities in Russia is affordable for majority of enterprises

Those entrepreneurs, who wish to deploy a manufacturing enterprise in industrial parks in Russia are often concerned about the availability and cost of energy resources, and in particular, cost of gas for legal entities. Currently land plots under industrial sites of Russia generally match the required category for construction of production and storage facilities. They are normally equipped with all necessary communications and infrastructure for future operations of enterprises to be localized on the areas thereof. The management companies of industrial parks provide their residents with a set of services to ensure uninterrupted and trouble-free operation of gas distribution and gas consumption systems at the facilities in accordance with the gas tariff approved for legal entities. Therewith, the cost of gas for legal entities in Russia, even despite the regular indexation of the gas tariff, remains affordable for both Russian and foreign legal entities.

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What factors affect the cost of gas for legal entities in 2017?

The gas tariff for legal entities, who are end users is made up of the following components: • regulated wholesale gas price for legal entities in 2017, • tariff for gas transportation via gas distribution networks, • special mark-ups to the tariff for gas transportation via gas distribution networks, • fees for supply and marketing services. All these components are subject to state regulation. It should be also remembered that the final gas price for legal entities in 2017 and consumption standard rates are calculated individually for each subject of the Russian Federation. Currently Russia is among the top six countries with the most affordable gas price for legal entities in 2017. The balanced gas tariff for legal entities in Russia gives a huge advantage to those residents of industrial parks who localized their production in Russia.

The best offers for gas prices for legal entities in 2017

Today, industrial parks in Russia offer their residents land plots equipped with all necessary communications required to start production operations. Apart from strategic location guaranteeing convenient logistics and distribution of products, an important role in selection of industrial sites for localization of project is the availability of the agreed development plan and permits, as well as in-house self-contained infrastructure. Heating communications, along with other vital components of the engineering and technical infrastructure, are supplied to each facility of the industrial site. Therewith, the gas prices for companies have been the most attractive in Russia for many years. This is especially appreciated by investors with experience in the countries of Europe, as European gas tariffs for legal entities may tenfold exceed the price per cubical meter of gas in the Russian Federation. It is exactly owing to their saving on, energy resources, labour resources, transport, logistics costs (so far as the operations of the European enterprises in the Russian and Asian markets are concerned), and raw materials, the enterprises localized in industrial parks of the Russian Federation are distinguished by high profitability rates and long life.