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Business transaction conditions similar to those on Cyprus to be created in Crimea

The Ministry for Crimean Affairs is working out measures to develop the region

MOSCOW, July 30 /ITAR-TASS/. The Western sectoral sanctions will not affect the operation of investors in Crimea, Oleg Savelyev, Russian Minister for Crimean Affairs, told the newspaper Vedomosti in an interview.

"There are those wishing to invest in Crimea," Savelyev said. "These include both European and American companies. We have held a good deal of talks with investors, both operating and potential ones. They have certain apprehensions but, as of now, one cannot say that prohibitive measures will be taken against companies investing in Crimea. The inputs launched continue to come in. New projects are under discussion. There is great interest in Crimea," the Minister emphasized.

There are also quite concrete and serious projects in such sectors as tourism, medicine, winemaking, harbours, airports and other infrastructure, and energy. Projects connected with waste processing and disposal are being discussed as well. Water supply and purification sector generates a great interest, he added.

The Ministry is working out measures to develop the region. Before the end of the year, a special Federal purpose-oriented programme for a period until the 2020 target year is to be approved, and a bill is to be referred to the State Duma lower house of the Russian parliament about a Free Economic Zone on the Peninsula.

"We want to create business transaction conditions similar to those on Cyprus," Savelyev said. "For example,(to introduce) privileges regarding passive income. This is the basis for establishing a civilized offshore (in Crimea)".

"The possibility of keeping capital in Crimea and working comfortably with it, even in the light of (Western) sanctions, will be one of the aspects of Crimea's competitive capacity," the Minister stressed.

"Risks are insured through various instruments, including a high profitability due to special tax-related measures. We suggest, for example, setting out in the bill additional tax privileges and a regime of a Free Customs Zone for large-scale investment projects by analogy with those that are currently inherent in the legislation on Special Economic Zone. Some privileges will be for export-oriented businesses and other ones for those oriented to the market of the Customs Union," the Minister said.