Authorities in Russia’s westernmost enclave, Kaliningrad are parceling out land in the Yantarnaya gambling zone to allow for more investment, according to a state news agency.
Regional governor Anton Alikhanov said: “Now we are at the final stage of delimitation, we [will] parcel it [the land] out to lease it in parts. The asset is very large so it might be difficult for a single investor to implement it alone. Therefore, we decided to play it safe, delimit into many parts to allow several legal entities to divide these plots. I think that we will finish this process in the coming months, and by the summer it will come if not to signing [an agreement] then to serious negotiations.”
Alikhanov noted that there is interest in the zone from investors representing gambling businesses.
The decision to parcel out the land came after the termination of a contract with a major investor in the zone.
In 2014, CJSC STK Group of Companies concluded a lease agreement for a land plot of 99.5 hectares in Yantarnaya and an investment deal. It intended to invest at least RUB 44.5 billion (US$704 million) in the infrastructure.
In 2018, the company transferred all rights and obligations under the lease agreement to LLC GOSLOT-39. In late 2019, the agreement with GOSLOT-39 was terminated as investment was slowing.
The first gambling facility n the zone – Magic Crystal with 150 slot machines – opened in April 2016. A year later the Sobranie casino started operating. Both are not expected to be affected by the developments, according to regional officials.