ASU Destroys Myths about Lotos Economic Development Zone

A delegation of Astrakhan State University has visited the Lotos Economic Development Zone located in Astrakhan Region. It followed a discussion that took place at our University and concerned economic development zones with Astrakhan Region as an example.

The research paper “Development of Free Economic Zone in Astrakhan Region: Myths & Reality” by Dr. Ekaterina Kryukova, an Associate Professor of Astrakhan State University, was discussed actively. It was decided to destroy widely spread myths and demonstrate efficiency of such zones.

According to Mr. Sergey Milushkin, Director of the Lotos Zone, there is an incorrect comprehension of a special economic development zone; there are myths and misconceptions. So it was decided to go on an excursion to the Lotos Zone.

The delegation of ASU included professors and students. One should remark that following the recently signed agreement, ASU is a basic research and educational center that trains highly qualified specialists to meet the needs of the Lotos Zone.

Guiding his visitors up and down the Lotos Zone, Mr. Milushkin remarked: “There are eight residents in our Zone now; each of them represents the hi-tech sphere and meets industrial needs of not just our region, but those of the entire country. We are planning to attract much more participants. Our Zone could host 40 companies”. He also paid the guests’ attention to favorable taxation conditions, customs benefits, and access to foreign markets.

Our delegation was shown all the 1, 000 hectares of the Lotos Zone. Construction works are being executed on most sites; engineering communications are being set up.

One of the key facilities for our delegation to visit was the Hexa-Lotos industrial facility; it is currently under construction. The facility is to manufacture especially strong and durable polymer threads for geosynthetic woven materials. Such materials are applicable for building roads and strengthening airfield runways. The excursion participants could see how efficient this technology is: the sandy road to the facility is paved with a special cellular confinement made of nonwoven materials. Under conditions of sand dunes, it makes it possible to provide a solid road covering within a short time.

Mr. Pavel Tsutsura, Director of Hexa-Lotos, told that the first production time would be launched this year; by 2020, the whole project will have been put into operation.

Another facility that our delegation visited was MedInTech, which specializes in production of third-generation self-destructive syringes. According to its Director Mr. Ramazan Fayziev, specialists working at this enterprise are going to train students of ASU, thanks to what our students will master the necessary professional competencies.

The final point of the excursion route was the Lotos shipbuilding facility; it is the largest enterprise in Astrakhan Region and Southern Russia. It specializes in civil and offshore shipbuilding, as well as in ship repair. Mr. Milushkin remarked that once this enterprise has become a resident of the Lotos Development Zone, it is modernizing and reconstructing its production lines, enhancing the quality of its output.

Our students shared their impressions of this excursion. “The shipbuilding plant amazed us. We also like ideas conceived by Hexa-Lotos, as solid and durable roads will always be crucial for Russia. We wish all the enterprises residing in this Zone worked at their full capacities soon. It is essential for both the Zone residents and our region and country in general”.

According to Dr. Ekaterina Kryukova, “My research paper “Development of Free Economic Zone in Astrakhan Region: Myths & Reality” was published in 2017. Many myths have been destroyed, but others emerged. I’m planning to publish more papers that would reflect up-to-date vision of the Lotos Zone and its developments prospects, considering with its existing facilities”.

This practice-oriented excursion helped involve students of ASU in the key economic and international projects of Astrakhan Region; it proved importance and real prospects of special economic zones.

The next stage of cooperation between the Lotos Zone and ASU will be a bilateral meeting at our University to discuss this visit, exchange ideas, and set new goals of further interaction.

Background

Special economic developments zones are a large-scale federal project whose aim is to develop Russian regions by attracting direct Russian and foreign investments in hi-tech industries.

The Lotos Economic Development Zone was established in 2014. It is located 40 km from the city of Astrakhan, at the crossroad of the North – South International Traffic Corridor, in the northern part of the Silk Road. Its main goal is to form a local chain of shipbuilding and machinery producing facilities.