Russia's Velomotors, the biggest manufacturer of bicycles in the post-Soviet economic space, indicated a few months ago its intention to launch six to eight new production lines in the Kaliningrad Oblast – the country's exclave between Poland and Lithuania that was called Königsberg in Prussian times. The project would boost the investment potential of the company “by tens times” from the current level, said Velomotors.
The projects may be implemented within the Special Economy Zone (SEZ). By operating in the SEZ, the company could apply for various forms of state aid, such as tax exemptions and the reimbursement of the logistics costs for the delivery of its products to foreign markets. Velomotors could receive state support both from the federal and the regional budget.
Velomotors is producing 1.5 million bicycles per year at several factories in Russia. The company has never disclosed any figures on its export operations.
