Free economic zones to be created in LNR, DNR, Kherson and Zaporozhye regions

Russian President Vladimir Putin has signed a law establishing a free economic zone (FEZ) in the Donetsk and Lugansk People's Republics and the Kherson and Zaporozhye regions. The document was published on the official portal of legal information.

The law provides for the establishment of free economic zones in these regions for a period until the end of 2050, which may be extended. The authorized body on regulation of this FEZ will become the Ministry of Construction of Russia, and its managing company - the public-law company "Fund of Development of Territories".

Individual entrepreneurs or Russian commercial organizations must be registered in the new regions or have a branch there in order to obtain the status of a FEZ participant. At that volume of capital investments of such participant in the first three years must be: for realization of investment project in the field of computer technologies and creation of software, scientific researches and developments - not less than 1 million rubles; for subjects of small and medium business - not less than 3 million rubles; for other persons - not less than 30 million rubles.

The law establishes a special regime of entrepreneurial activity in the FEZ, which provides for specific features of urban planning and land use, as well as tax benefits and the application of the free customs zone procedure.