Free economic zone of Crimea
October 17, 2014

Free economic zone of Crimea

ESTABLISHMENT OF FREE ECONOMIC ZONE OF CRIMEA AND SPECIAL ASPECTS OF BUSINESS ACTIVITY IN CRIMEA 

On September 27, 2014, the Law of Ukraine “On Establishment of Free Economic Zone of Crimea and Special Aspects of Economic Activity in the Temporarily Occupied Territory of Ukraine” No. 1636-VII dd. 12.08.2014 (hereinafter – the Law of Ukraine on the FEZ) took effect.

The Law of Ukraine on the FEZ stipulates the establishment of a free economic zone of Crimea (hereinafter – the FEZ of Crimea) in the territory of the Autonomous Republic of Crimea and Sevastopol City. Herewith, a special legal status of economic activity as well as a special regulatory, tax and customs procedure under the legislation of Ukraine are established on the territory of the FEZ of Crimea.

Meantime, the Ministry of Economic Development of the Russian Federation has developed the Draft Law “On Development of the Crimean Federal District and the Free Economic Zone on the Territory of the Republic of Crimea and Sevastopol City of Federal Significance” (hereinafter – the “Draft Law of the Russian Federation on the FEZ”), which provides for other conditions to create a free economic zone in Crimea based on the Russian legislation.

The interindustry working group “Crimea” consisting of Arzinger lawyers continues to work on practical business issues regarding economic activities associated with the territory of Crimea.

We offer you our regular news release covering the following issues:

1) legal analysis of the Law of Ukraine on the FEZ and its impact on business associated with the territory of Crimea in the following scopes:

• general issues of the FEZ of Crimea operation;

• trade issues between the Crimea and mainland Ukraine;

• currency regime specifics;

• taxation issues;

• labour and migration issues;

• corporate issues;

• land and property;

2) an overview of the Draft Law of the Russian Federation on the FEZ.

The above mentioned legal issues relate in any respect to all industries, including the food industry and retail, healthcare and pharmacy, agriculture, hotel business, automobile industry, energy sector, etc.

However, new issues arise in the course of daily practice and regular responses thereto are found as well. We will inform you about them in the future issues of Arzinger newsletter on business activities in Crimea.

We also develop possible schemes of collaboration with contractors from the Crimean Peninsula under the new conditions for our clients as well as provide advice on the optimal and safe (in legal terms) business schemes concerning product supply to the territory of Crimea (taking into consideration the actual extension of jurisdiction of both Ukraine and Russia on the territory of Crimea).

Read more Arzinger_Crimea_Alert_October_2014_eng

Sincerely yours,
Lana Sinichkina

Partner

Lana.Sinichkina@arzinger.ua

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