The regional State Property Ministry has announced a policy change enabling residents and managers of companies operating within Special Economic Zones (SEZs) to pledge their leasehold rights to state-owned land plots as collateral. Previously, pledging such rights was prohibited.  

To initiate the process, SEZ residents must submit an application to Dagestan Government, including detailed information regarding the land parcel, progress on their SEZ agreement, a comprehensive action plan and a draft agreement outlining the terms with the prospective creditor. The Government has a 10-day period to review the application before forwarding it to the Ministry of Economic Development for final approval.  

The Ministry of Energy will ultimately render a decision and provide notification five days in advance. Importantly, this pledging mechanism is only permissible for the duration of the SEZ activity agreement.