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The new regions of Russia will become a free economic zone: how it will work and who will win

Date: June 5, 2023 Time: 06:00:45

Economist Andrey Podoynitsyn. Photo: Valery Sharifulin/TASS

The Kherson and Zaporozhye regions, as well as the Donetsk and Lugansk People’s Republics will receive special economic status; they may soon become a single free economic zone (FEZ). This was reported by the press service of the Cabinet of Ministers, which recently approved the corresponding bill. This measure should activate local commerce and encourage entrepreneurs from other regions to start their activity in the “new territories”.

According to RBC, the law may enter into force on January 1, 2024 and will be valid until 2050. The special regime provides for tax incentives (for example, exemption from property tax and land tax for a certain period), subsidies for the reimbursement of interest on loans, exemption from customs duties on foreign equipment, etc.

The government trusts that the initiative will lead to the sustainable socio-economic development of new entities.

– To be honest, I have not seen the specification documents and papers yet, but it can be assumed that this will be a special preferential tax regime, and a special preferential investment regime, and many other aspects will be taken into account, which will facilitate the investment processes and attract financial resources there, – said economist Andrey Podoynitsyn on the air of Radio Komsomolskaya Pravda. – I would say that the new territories are just an excellent opportunity to fully practice the principle of free issuance (increase in the money supply, – Ed.) for a new economic body. Still, almost 9 million people are joining our economic space, these are new territories with great industrial and agricultural potential, with developed infrastructure… This is an excellent reason to issue a new ruble mass and use it according to design goals and patterns.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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