The State Duma of Russia approved at the first reading a draft law aimed at establishing a free economic zone (FEZ) in the regions newly incorporated into Russia — the Donetsk and Luhansk People’s Republics (DPR and LPR), along with Zaporozhye and Kherson. The government submitted the documents, and the information was reported by TASS, the Russian news agency.
Key provisions of the principal draft outline create a dedicated regime for entrepreneurship and related activities within the SEB at the new regional territories. The measure addresses urban planning and land use considerations necessary for investors who intend to implement large-scale projects. It also introduces a distinct taxation framework, including rules for social insurance contributions, and it envisions the operation of a free customs regime in the DPR, LPR, Zaporozhye, and Kherson regions.
Proposals in the bill call for the establishment of a management entity, PJSC Territorial Development Fund, to oversee the FEZ, coupled with a federal executive authority designated by the Council of Ministers to supervise the creation and ongoing operation of the zone.
Background context notes that Russia began a special operation in Ukraine on February 24, 2022. Subsequently, on October 6, the territories in question were formally incorporated as subjects of the Russian Federation, a status that was subsequently incorporated into the national constitution. The legislative package therefore aligns with a broader strategy to formalize governance and economic activity in the newly integrated regions and to provide a framework for investment and development within those territories (Source: TASS).