Russian President Dmitry Medvedev on Monday submitted to the State Duma a draft law on the Skolkovo high-tech research hub, which is being built from scratch 20 km west of Moscow.
The law is designed to provide conditions for Skolkovo construction and development.
Under the law, Skolkovo would be declared a special territory to provide conditions for research and development in energy, information technologies, communications, biomedical research and nuclear technologies.
The innovation hub, dubbed Russia's Silicon Valley, will have its own police department, tax and customs services and patent authority.
The president also proposed another bill, introducing amendments to several existing laws, including tax exemption for a certain period. In addition, taxes will not be imposed on research equipment.
Individuals involved in research activities in Skolkovo will be exempt from VAT.
Russia considers the development of the high-tech and innovation sector its top priority, pledging billions of U.S. dollars to finance the sector.
In February 2010, Medvedev said Russia was planning to establish a modern powerful center for research and development, similar to the U.S. Silicon Valley.
MOSCOW, May 31 (RIA Novosti)