Currently, the Procedure for Consideration of Investors Applications and Making Agreements for Investment Projects Implementation in the Territory of Crimea approved by Decree of the Council of Ministers of the Republic of Crimea No. 368 dated October 7, 2014 (hereinafter referred to as the "Procedure") applies in the territory of the Republic of Crimea which envisages a 30 day period for considering investor applications and making investment agreements therewith.
Procedure for Consideration of Investors Applications and Making Agreements for Investment Projects Implementation in the Territory of Crimea
(as amended on November 10, 2016)
Subject to the terms and conditions of the Procedure, 182 investment projects are implementing under the signed Agreements (including all cancelled and suspended agreements) with the total amount of investments RUB 190.5 billion. Implementation of these projects will result in creation of about 15.6 thousand workplaces.
The most attractive areas for investors are the recreation and tourism sector, agriculture, construction, production industry and fuel and energy sector.
The following large investment projects are underway:
- "Construction of a New Air-Terminal Complex in Simferopol International Airport" investment project with the investment amount of around RUB 22.7 billion. This is one of the largest investment projects in the contemporary history of Crimea;
- "Construction of Belogorksy Greenhouse Facility in the Republic of Crimea" investment project initiated by Belogorksy Greenhouse Facility LLC with the investment amount of RUB 3.9 billion;
- "Multipurpose Sports and Fitness Complex" investment project initiated by Ecological Tourism Center in Parkovoye LLC with the total investment amount of RUB 9.7 billion;
- "Construction of a Residential Complex in Yevpatoria" investment project initiated by Petrokomplekt LLC with the total investment amount of RUB 2.5 billion, including the capital investment of RUB 2.0 billion and etc.
In order to improve the quality and speed up documents preparation process, their interdepartmental approval and practical implementation of investment projects in the Republic of Crimea, all investment projects are under supervisory control of members of the Council of Ministers of the Republic of Crimea, depending on the investment volume. The Head of the Republic of Crimea is responsible for support of all investment projects with the investment volume up to RUB 5 billion concluded in accordance with the Procedure.
A corresponding working group was created by Order of the Ministry of Economic Development of the Republic of Crimea No. 370-r dated July 14, 2017 aimed at appointing officials responsible for consideration and supervision of investment projects and investment agreements.
Draft law "On Investment Policy and State Support of Investors in the Republic of Crimea and on Amending Certain Laws of the Republic of Crimea" has been developed and is under approval.
The best practices of the National Investment Climate Ranking are being implemented, as well as the Operational Standards for Executive Authorities of Constituent Entities of the Russian Federation Regarding Creation of Favorable Investment Climate in the Region.
Thus, according to the results of the St. Petersburg International Economic Forum the Republic of Crimea climbed up 20 positions for 2017 compared to 2016 and now is on the 64 place now.
Crimea State Autonomous Institution "Center for Investment and Regional Development" is operating in Crimea based on which the Cluster Development Center and Crimea Development Corporation JSC are established which are responsible for consulting support for investors, project supervision and provision of the services connected with preparation and implementation of projects with application of the one-stop principle.
The geography of investors is expanding. Currently, about 2,930 legal entities have been registered in the Republic of Crimea that are founded by foreign entities (595) and individuals (2,335) from 33 countries. Mostly, these are the entities and individuals from the Ukraine, Cyprus, Virgin Islands, Great Britain, Austria, Belize, Panama, Seychelles, Turkey and etc.
The Republic of Crimea will continue improving the investment climate, ensuring the best performances as per many criteria of the National Ranking and target investment climate models, creating the image of the most investment-attractive region among the constituent entities of the Russian Federation.
Investment Climate Improvement Actions Plan
According to the Regulation of the Council of Ministers of the Republic of Crimea No. 201-r dated February 28, 2017, the action plan ("road map") was approved for implementation in the Republic of Crimea of the best practices of the National Investment Climate Ranking in the constituent entities of the Russian Federation and the targeted models of business activity simplification and region investment attractiveness improvementRegulation of the Council of Ministers of the Republic of Crimea No. 201-r (PDF, 1.0 Mb)
Project Management System
Currently, the process of cooperation with the investors implementing their projects in the territory of the Republic of Crimea is organized using the project management system, thus allowing to reduce approval time of investment projects, simplify the control procedure of their implementation, as well as to enable investors to follow the approval process through the Personal Account.
Automated Project Management Information System is put in place and successfully operates on the web-site pm.rk.gov.ru. The main regulatory framework governing the project activity in the Republic of Crimea was developed and approved by Decree of the Council of Ministers of Crimea No. 371 dated July 25, 2018 "On Approval of the Regulation on the System of Project Activity Management in Government Bodies of the Republic of Crimea and Local Government Agencies in Municipalities of the Republic of Crimea".
In 2017, the Project Committee of the Republic of Crimea and the Central Project Office were created and are operating; and functional and municipal project offices were established in the executive government bodies and municipalities.
The incentive system for participants of project activities was developed and approved by Decree of the Council of Ministers of the Republic of Crimea No. 654 dated December 5, 2017 "On Approval of the Regulation on Incentivization of Project Activity Participants in the Executive Government Bodies of the Republic of Crimea".
Thus, after considering the results of project management implementation, the Republic of Crimea was awarded with the third prize in the annual competition in professional management of project activities in the public sector "Project Olympus" conducted by the Analytical Center under the Government of Russian Federation.
A Regional Certification Center was registered based on Crimea State Autonomous Institution "Center for Investment and Regional Development". Currently, organization of training and certification is carried out, namely: a training schedule was developed; lists of prospective participants of certification tests are being prepared
Council for Investment Climate Improvement of the Republic of Crimea
The Council for Investment Climate Improvement of the Republic of Crimea was established in Crimea by Order of the Head of the Republic of Crimea No. 215-U dated August 22, 2014 to develop the unified investment policy, consideration of investment projects and facilitating the process of dealing with any challenges arising during their implementation.
Key Functions of the Council
- Promotion of implementation of the main principles of the Government Policy concerning attracting and effective use of investments in the Crimea economics
- Organization of effective interaction of the executive government bodies, local government authorities and businesses taking part in the investment process
- Presentation of justified proposals regarding feasibility of investment projects implementation aimed at development of the high priority economic areas and having strategically social and economic significance for the Republic of Crimea
- Consideration of a draft Investment Strategy of the Republic of Crimea. Analysis of the progress and implementation results of the Crimea Investment Strategy, preparation and consideration of any correction proposals
- Making proposals for conflict resolution between investors and the executive government bodies of the Republic of Crimea, local government authorities and district government administrations in the Republic of Crimea, facilitating the process of dealing with challenges interfering with the investment process
- Review of the results of investment projects implementation in the territory of the Republic of Crimea
- Improvement of the investment climate in the Republic of Crimea creating favorable conditions for business operations, reduction of administrative barriers in the Republic of Crimea, as well as implementation of actions ("Road Maps") for improvement of the Crimea positions in the National Investment Climate Ranking in the territory of the constituent entities of the Russian Federation