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Ambassador of Ukraine visited businesses at the Rēzekne special economic zone
31 July 2019 12:26

On July 30, 2019, Ambassador of Ukraine Olexandr Mischenko payed a visit to the Rēzekne special economic zone (RSEZ) on his regional trip to Latgale (East of Latvia) through which he particularly visited such local businesses as NewFuels and Energy Resources CHP, as well as held a meeting with the RSEZ’s senior authorities.

While visiting the RSEZ, there was a meeting with Board Chairman of the noted enterprises Roman Vdovychenko (a Ukrainian citizen) and Production Director Vitold Dura. A focussed meeting was held with Sandra Ezmale, Chief Executive Officer at the Rēzekne Special Economic Zone.

Within the visit, the Ambassador of Ukraine was given exposure to the key operating assets, as well as to the specific patterns of the production cycle of the above-mentioned enterprises – starting from the logging of timber and wood storage to the production of the final product – fuel pellets (biofuels), material supplied to the EU countries and certified in accordance with the EU standards.

Furthermore, RSEZ’s CEO Sandra Ezmale briefed the Ambassador of Ukraine on the distinctive elements of the activities within the Special Economic Zone. It was highlighted that the RSEZ was keen to be instrumental in attracting the Ukrainian export-oriented enterprises to operate within the Special Economic Zone. Such lines of cooperation would open the opportunities for the Ukrainian businesses to receive incentives, inter alia, in terms of the application of taxes and customs duties in the context of existing gateways for ramping up the joint production capacity with supplying products to third markets.

 

 

For reference: the Rēzekne SEZ was established in 1997. The RSEZ is one of the five similar entities in Latvia. The total area of RSEZ is 1155 ha. The RSEZ is located in the territory of the city of Rēzekne (the population of the city – 30 thousand people and with adjacent agglomeration – about 80 thousand people) with delivering broad access to raw materials (in particular, wood material). Among the practical beneficial aspects: Rēzekne is one of the locations within the West-East Transit Corridor and the Trans-European Transport Network (TEN). The basic conditions of the economic activity within the RSEZ are regulated by the Law of the Republic of Latvia “On the Application of Taxes in Free Ports and Special Economic Zones” № 117 (2504) as of 2001. Tax incentives in the RSEZ are applicable until 31 December 2035. The residents of Luxembourg and Sweden appeared to be the main investors within the RSEZ. The main activities embrace woodworking, cargo transportation, warehousing, metal working and mechanical engineering. There is also a logistics park in the territory of the RSEZ.

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