These laws have been drafted to promote socioeconomic development in Crimea, create better conditions for doing business and ensure maximal use of Crimea’s economic potential.
Reference
Federal draft laws “On the Development of the Crimean Federal District and a Free Economic Zone in the Republic of Crimea and the Federal City of Sevastopol,” “On Amending the Tax Code of the Russian Federation Following the Adoption of the Federal Law ‘On the Development of the Crimean Federal District and a Free Economic Zone in the Republic of Crimea and the Federal City of Sevastopol’” and “On Amending Some Enactments of the Russian Federation Following the Adoption of the Federal Law ‘On the Development of the Crimean Federal District and a Free Economic Zone in the Republic of Crimea and the Federal City of Sevastopol’” (hereinafter referred to as draft laws) have been drafted by the Ministry of Crimean Affairs to fulfil the instructions issued following a meeting on acute socioeconomic development issues in the Republic of Crimea and the Federal City of Sevastopol on 24 March 2014.
These draft laws would introduce a special legal regime in the Republic of Crimea and the City of Sevastopol due to the creation of a free economic zone there. They would also stipulate a free customs zone procedure.
The draft laws would also establish specific terms for federal and municipal control in these territories, for hiring foreigners, for the entry, residence and exit of foreigners, for the operation of seaports (free ports), and for the registration of vessels with the Russian International Register of Ships.
They would also introduce a number of tax incentives for taxpayers in the free economic zone.
Simultaneously with the draft law “On the Development of the Crimean Federal District and a Free Economic Zone in the Republic of Crimea and the Federal City of Sevastopol,” amendments would be made to the following enactments:
- Tax Code of the Russian Federation, 31 July 1998, Federal Law No.146-FZ;
- Russian Merchant Marine Code, 30 April 1999, Federal Law No.81-FZ;
- Federal Law No.137-FZ “On the Enforcement of the Land Code of the Russian Federation,” 25 October 2001;
- Federal Law No.167-FZ “On Mandatory Pension Insurance in the Russian Federation,” 15 December 2001;
- Federal Law No.115-FZ “On the Legal Status of Foreign Citizens in the Russian Federation,” 25 July 2002;
- Federal Law No.212-FZ “On Insurance Deductions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation and the Federal Mandatory Medical Insurance Fund,” 24 July 2009.
To encourage investment, insurance rates would be reduced for investors in the free economic zone to 7.6 percent for a period of ten years after they receive the respective status. Starting in 2018, new investors in the free economic zones will not be offered reduced insurance rates.
These
draft laws were discussed and approved at a Russian Government meeting on 30 October
2014.