Crimean Special Economic Zone to be Extended to Russia’s Maritime Borders

The special economic zone in Crimea will include peninsula's coastal line and Russia's territorial waters.

The Russian government is preparing changes to the law on the special economic zone in Crimea. The Crimean SEZ will include the entire coastal line of the peninsula and will be extended on to Russia’s territorial waters (22.2 km).

The status of a special economic zone presumes taxation preferences and state subsidies for residents.

"The new norm will apply for all participants of the Crimean special economic zone. They will be able to run business in Russia’s territorial waters," a representative of the Ministry of Economic Development said.

The initiative is also expected to help develop transport infrastructure, tourism, and passenger and cargo transportation, an article in the Russian newspaper Izvestia read.

"The upgraded SEZ status will give new opportunities to Crimean tourist areas. There are some world class resorts projects in development. The special economic zone which includes territorial waters would also motivate investors," Alexander Murychev, vice president of The Russian Union of Industrialists and Entrepreneurs, told Izvestia.

Thus far, 490 agreements have been reached with companies and businessmen willing to work in the Crimean special economic zone. The deals presume investments of nearly 75 billion rubles ($1.2 billion) and the creation of nearly 27,000 new jobs.

Crimea presented its project to potential investors at the recent international economic forum in St. Petersburg. Companies from Italy, France, Germany, Iran, Greece, and China have shown much interest in investing in Crimea.

In particular, China is interested in building hotels in the peninsula. According to the Crimean customs, last year China became the forth-biggest Crimea’s trade partner, after Ukraine, Turkey, and Panama. China accounted for 8.6 percent of the overall foreign trade of Crimea and Sevastopol.