MOSCOW - The Russian State Duma passed several bills in their first reading to create a free economic zone (FEZ) in Crimea and Sevastopol, as well as tax and insurance tariffs for FEZ participants.
The first bill, which was introduced by the Russian government, envisions a special legal regime in Crimea and Sevastopol in order to attract and carry out investments. The bill also calls for the use of a customs procedure for the FEZ, as well as the creation of free ports. The FEZ regime is expected to last for 25 years with a possible extension.
A second bill, which was also approved in its first reading, calls for insurance fees to be lowered for FEZ members to 7.6 percent from the existing 30 percent. Of this, 6 percent will go to the Pension Fund, 1.5 percent to the Social Insurance Fund and 0.1 percent to the Federal Compulsory Medical Insurance Fund. This tariff will be in effect for participants registered in the first three years of the FEZ’s existence. The tariff will last for 10 years from the date the entity receives the status of official FEZ participant.
