Investment climate in the Republic of Crimea

 

Current state

Currently in the Republic of Crimea has a Procedure for consideration of appeals of investors, conclusion of agreements on implementation of investment projects, monitoring the execution of the agreement and implementation of investment projects as well as support of investment projects on the territory of the Republic of Crimea, approved by the decree of Council of Ministers of the Republic of Crimea on October 07, 2014 No. 368 (hereinafter - the Order), which calls for a 15-day review procedure for the treatment of the investor and the conclusion of an investment agreement.

The Procedure for consideration of investor appeals and conclusion of agreements on the implementation of investment projects in the territory of the Republic of Crimea
(as amended on 31.05.2019)

Resolution 368 (PDF, 3.34 Mb)
 

In accordance with the procedure, within the framework of signed agreements, 182 investment projects, have been launched with a total investment of about 148.8 billion rubles, within which it is planned to create more than 13.2 thousand jobs.

The most attractive for investors are resort and tourism, agriculture, construction, industry, fuel and energy.

The implementation of major investment projects, such as:

  • investment project «Construction of a modern residential microdistrict «Zhigulina Rosha», initiated by LLC «Capital commercial group», with a total investment of 16.1 billion rubles;
  • investment project «Multifunctional sports and recreation complex», initiated by LLC «Eco-tourism center in Parkovoe», with a total investment of 9.7 billion rubles;
  • investment project «Creation of a wine tourism center in the Republic of Crimea», initiated by «Horizon-Service» LLC, with an investment volume of 4.7 billion rubles;
  • investment project «Construction of «Belogorsky» greenhouse complex in the Republic of Crimea», initiated by «Belogorsky» greenhouse complex LLC, with an investment volume of 3.9 billion rubles;
  • investment project «Autocamping for 500 rooms with subsequent conversion to a hotel complex for 1000 rooms», initiated by «Olenevka Village» LLC, with an investment volume of 3.4 billion rubles;
  • investment project «Construction of a residential complex in the city of Evpatoria», initiated by «Petrokomplekt» LLC, with a total investment of 2.5 billion rubles.
 

In order to improve the quality and speed of preparation of documents, their interdepartmental coordination and practical implementation of investment projects in the Republic of Crimea, investment projects are supervised by members of the Council of Ministers of the Republic of Crimea, depending on the volume of investment. Support of investment projects concluded in accordance with the Procedure is assigned to the Head of the Republic of Crimea with an investment volume of 5 billion rubles or more.

By order of the Ministry of Economic Development of the Republic of Crimea dated 14.07.2017 No. 370-RG, a corresponding working group was established to appoint officials responsible for reviewing and supporting investment projects and investment agreements.

The Law of the Republic of Crimea was adopted on July 2, 2019 No. 624-LRC/2019 «On investment policy and state support for investment activities in the Republic of Crimea».

The Law of the Republic of Crimea dated July 2, 2019 No. 624-LRC/2019 «On investment policy and state support for investment activities in the Republic of Crimea»
(as amended on 02.07.2019)

The Law 624-LRC (PDF, 308 Kb)
 

The law was developed taking into account the peculiarities of the Republic of Crimea as defined by Federal legislation and allows significantly expanding the region's ability to stimulate investment activity.

The document defines the functions and powers of the Republic's authorities in the investment sphere, defines the status of a specialized organization for working with investors and its powers.

The Law also provides for financial, property and organizational support for investment activities and defines the legal basis for the formation of investment platforms and investment proposals of the Republic of Crimea.

The investment policy is implemented in accordance with the practices of the Standard of activity of Executive authorities of the Russian Federation to ensure a favorable investment climate in the region. The best practices are being implemented of the National rating of the investment climate.

Thus, according to the results of St. Petersburg international economic forum, the Republic of Crimea rose by 16 points in the National rating of the investment climate in the Russian Federation (increasing its integral index by 19.3 points from 225.5 to 244.8).

In the Republic of Crimea, it operates «Crimea Development Corporation of the Republic of Crimea» JSC. Its tasks include consulting support for investors, project support and providing investment entities with services related to the preparation and implementation of projects on the principle of «one-stop-shop».

Regulation of interaction of a specialized organization with investors on the principle of «one-stop-shop» under implementing investment projects in the territory of the Republic of Crimea
(as amended by order No. 9 of 13.01.2020)

Regulation 102 (PDF, 525 Kb)
 

The geography of investors is expanding. Currently, there are about 3,400 business entities registered on the territory of the Republic of Crimea, whose founders are foreign organizations and individuals from 60 countries. These are mainly companies and individuals from Ukraine, Cyprus, The Republic of Belarus, Armenia, Turkey, Kazakhstan, Germany, The British Virgin Islands, Great Britain, Seychelles, Israel, The United States of America, etc.

 

Action plan for improving the investment climate

The Order of the Council of Ministers of the Republic of Crimea dated September 30, 2016 No. 1217-R «On approval of the Action plan («road map») for the implementation in the Republic of Crimea of the best practices of the National rating of the investment climate in the subjects of the Russian Federation»
(as amended on 11.02.2020)

CMRC Order №1217-R (PDF, 1.01 Mb)
 

The Council for improving the investment climate in the Republic of Crimea

In order to develop a unified investment policy, review investment projects and help solve problems arising in the course of their implementation, the Council for improving the investment climate of the Republic of Crimea was established in the Republic of Crimea by the decree of the Head of the Republic of Crimea No. 215-U dated August 22, 2014.

In the Decree 215-U have been amended changes from 23.09.2014 № 303-U, changes from 02.12.2014 No. 499-U, changes from 10.04.2015 No. 98-U, changes from 07.08.2015 No. 205-U, changes from 28.09.2015 No. 264-U, changes from 11.02.2016 No. 46-U, changes from 13.07.2016 No. 260-U, changes from 06.09.2016 No. 339-U, changes from 02.11.2016 No. 406-U, changes from 22.02.2017 No. 89-U, changes from 11.04.2017 No. 183-U changes from 19.06.2017 No. 283-U, changes from 09.10.2017 No. 423-U, changes from 25.10.2017 No. 461-U, changes from 31.01.2018 No. 28-U, changes from 23.05.2018 No. 170-U, changes from 01.10.2018 No. 293-U, changes from 21.11.2018 No. 355-U, changes from 19.12.2018 No. 392-U, changes from 06.03.2019 No. 91-U, changes from 03.06.2019 No. 247-U, changes from 11.09.2019 No. 340-U, changes from 21.02.2020 No. 47-U.

The main powers of the Council are:
  1. submission of recommendations to the Council of Ministers of the Republic of Crimea on the conclusion or termination of agreements between the Council of Ministers of the Republic of Crimea and investors on the implementation of investment projects in the territory of the Republic of Crimea;
  2. development of recommendations on the organization of interaction between the Executive bodies of state power of the Republic of Crimea and persons involved in the investment process, as well as on reducing administrative barriers, including in terms of reducing the time and simplifying the procedure for issuing permits;
  3. development of recommendations for state support of investment processes and promotion of investment activity in the region;
  4. development of common requirements for the main criteria of investment projects that apply for state support of the Republic of Crimea;
  5. review of the results of investment projects;
  6. implementation of measures to improve the indicators of the Republic of Crimea in the National rating of the investment climate in the subjects of the Russian Federation;
  7. consideration of other issues that ensure the adoption of operational measures taking into account the situation, aimed at creating favorable business conditions and reducing administrative barriers in the Republic of Crimea, as well as improving the indicators of the Republic of Crimea in the national rating of the investment climate in the subjects of the Russian Federation.
 
 
 
 
 

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