State Duma passes bills on creating FEZ in Crimea, Sevastopol in first reading
MOSCOW. Nov 11 (Interfax) - 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% from the existing 30%. Of this, 6% will go to the Pension Fund, 1.5% to the Social Insurance Fund and 0.1% 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.
