The Russian government has approved the creation of a special economic zone in the Crimea, Russia’s Prime Minister Dmitry Medvedev has announced. The Capital publication reported this, citing TASS.

According to the prime minister, investors in the Crimea will be exempt from several taxes for up to 10 years, depending on the category of taxes, and administrative barriers will also be lowered.

The rate of the profit tax for residents of the special economic zone in the annexed Crimea will be set at 13.5%.

In addition, according to Medvedev, "regimes of ‘free flag’ and the so-called port of convenience may be introduced in Crimea ports, which will greatly simplify customs procedures."

The Russian government is hoping that this will stimulate business activity on the peninsula and facilitate attraction of investment in industry, transport, infrastructure, logistics, tourism, sanatoriums, resorts, and agriculture. Medvedev said that the regulatory framework for draft laws on the special economic zone in the Crimea would be prepared "as soon as possible."