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Photo Victor Surikov,

Head

town administration

KRONSTADT: THE NEXT HONG KONG?
Report from the projected free economic zone.


For over a century, Kronstadt was beyond limits not only for foreigners, but for the citizens of the country as well. Finally, last autumn, Kronstadt became "open" last autumn and most Petersburgers still find it hard to believe there is no need to obtain a special permit or that one can just take bus 510 and reach the town in about forty minutes.

The fortress on the island of Kotlin used to be a naval base that closely guarded its secrets. It was no secret to anyone however that everything on the island was controlled by the Ministry of Defense: from the Naval plant to the docks and warehouses, from the Arsenal to the Cathedral.

Many believe that in the brave new world of a market economy Kronstadt cannot make ends meet. Can the town really not support itself?

- «Yes, it sure can!»- believes the head of the town administration, Victor Surikov, - «We will prove it as soon as we are granted the status of a free economic zone.»

Surikov hit upon the idea some five years ago and was supported by Margaret Thatcher who visited Kronstsdt while visiting St. Petersburg. It was then that she said: "Your town can become another Hong Kong". Everyone knows Albion’s "iron lady" did not tend to throw words into the wind or have a penchant for exaggeration.

So, what are the grounds for such bright prospects/ expectations? – «Quite solid,»- Victor Surikov insists. – «We have studied the experience of existing prosperous free zones and have come to the conclusion that on all counts Kronstadt meets all the requirements, including: an isolated location, proximity to a large city, developed infrastructure, and legislative support.

The first three preconditions are obviously there.

For over a century, Kronstadt was beyond limits not only to foreigners, but for the citizens of the country as well. Finally, last autumn, Kronstadt became "open" and most Petersburgers still find it hard to believe there is no need to obtain a special permit or that one can just take bus 510 and reach the town in about forty minutes.

The fortress on the Island of Kotlin used to be a naval base that closely guarded its secrets. It was no secret to anyone however that everything on the island was controlled by the Ministry of Defense: from the Naval Plant to the docks and warehouses, from the Arsenal to the Cathedral.

Many believe that in the brave new world of a market economy Kronstadt cannot make ends meet. Can the town really not support itself?

“It sure can!” believes the head of the town administration, Victor Surikov. “We will prove it as soon as we are granted the status of a free economic zone.”

Surikov hit upon the idea some five years ago and was supported by Margaret Thatcher who visited Kronstadt while on a visit to St. Petersburg. It was then that she said: "Your town can become another Hong Kong". Everyone knows Albion’s "iron lady" did not tend to throw words into the wind or have a penchant for exaggeration.

So, what are the grounds for such bright expectations? “Quite solid,” insists Victor Surikov. – “We have studied the experience of existing prosperous free zones and have come to the conclusion that on all counts Kronstadt meets all the requirements, including: an isolated location, proximity to a large city, developed infrastructure, and legislative support.

The first three preconditions are obviously there.
       Photo

Kronstadt is virtually on a peninsular now that a 11-km flood barrier links it with St. Petersburg. The distance is short enough to travel to Russia’s second city to take advantage of its administrative, financial and transport resources. By the same token, Kronstadt is far enough away from St.Petersburg to guard it from all the problems of a large city. As far as infrastructure is concerned, Surikov points out that the town has everything any big city has to offer, from a maternity hospital to a cemetery, and everything in between.

But there are also some very special things in the town, for instance, five dry-docks where ships of any size - from ocean-going liners to yachts - can tie up and be repaired. There are warehouses. There is the flood barrier that can be turned into a 20-km long mooring wall. Trucks will be able to transport freight from it straight to Moscow, Riga, Kazan and elsewhere else by a highway bypassing St. Petersburg. The water way "from the Varangians to the Greeks" leads from here to Astrakhan and from there on to Turkey, while by crossing the Baltic Sea one can reach European ports and the Atlantic.

Not surprisingly, then, as soon as the bans were lifted on visiting Kronstadt, representatives of various foreign companies began flocking to it.

“Over a dozen large foreign companies have clearly expressed their willingness to co-operate with us,” Surikov notes. “Samsung, for instance, is ready to open an assembly line for their TV sets here, a Chinese manufacturer will be producing toys in the town, while Disney is proposing to create a Disneyland in one of the forts in a year-and-a-half, something which will attract tourists from all over the world. SAS of Sweden is going to build a hotel and sport complex here in the foreseeable future.

"Is it only the bravest who are rushing into Kronstadt?"

“Actually the risk is not so great as it seems,” believes Surikov. “The town's legislative assembly has already passed the law on free economic zones. The federal law has gone through three readings in the Duma.”

Kronstadt is open.


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