PRESS RELEASE: Crimea may attract $13 billion in investment and create 25,000 new jobs

Crimea is becoming a strategic region for investors: around $13 billion in potential investments may be attracted into the economy of the Autonomous Republic of Crimea as a result of realization of 70 promising projects that have been considered by the Council of Ministers of Crimea. The realization of these investment projects will also give the autonomy an opportunity to receive additional taxes and collections of $1.7 billions by 2019, as well as to create and save over 25,000 jobs. Among the numerous investment projects are: projects for the construction of large health resorts with year-round occupancy, the construction of yacht marinas, airports in Simferopol and Kerch, seaports, large traffic interchanges and highways, the construction of wind power plants, and agriculture projects, including the cultivation of cereal and industrial crops, the restoration of irrigated land, etc. Today the Crimean government is undertaking special activities to improve the region's investment climate, including establishing a network of unified authorization centers and the Council of Investors of Crimea, launching a unified investment window by the Agency of regional development, and constantly working to improve legislation. The draft law "On the principles of the Autonomous Republic of Crimea's development and specifics of investment activity on its territory" foresees the introduction of additional incentives for investors, among which are a five-year profit tax holiday, and zero VAT on the purchase of the equipment and components necessary for an investment project. To relax formal procedures, the draft law also increases the authorities of local administrations in terms of granting permits. Vasyl Dzharty, Head of Council of Ministers of the Autonomous Republic of Crimea, said: "The normalization of the social and political situation in the country, and the clearness and predictability of state economic policy have already significantly revived the interest of investors. However, we still have to convert this real interest into real projects, and for that purpose we have drawn up several draft laws and submitted them to the Cabinet of Ministers of Ukraine. In order to implement large-scale projects, a continual, constructive dialog between government and business is needed. The Black Sea Economic Forum, which will be held in November in Crimea, will logically precede a complex state policy on the improvement of investment attractiveness and competitiveness of Crimea, with the further transformation of the Autonomous Republic of Crimea into a springboard of geopolitical leadership of Ukraine in the Black Sea region. The investment potential of the Black Sea region will be one the key themes of a panel discussion of the Black Sea Economic Forum that will take place on November 26-27, 2010 in Yalta. The forum will be held under the auspices of President of Ukraine Viktor Yanukovych and at the initiative of the Council of Ministers of Autonomous Republic of Crimea. Today the Autonomous Republic of Crimea is in top ten Ukrainian regions in terms of volumes of foreign investment attracted. As of Octobers 1, 2010, the republic's economy has received foreign direct investments worth $784.7 million, including $66.4 million in the first nine months of this year. Investments came from 46 countries. Among the key investing counties, which made 90.3% of the total investments are: Russia, Germany, Cyprus, the British Virgin islands, Britain, the Seychelles, the United States, France, Uzbekistan, and Belarus. The Autonomous Republic of Crimea trades with partners from 123 countries. Contacts: Alexandra Hontar, Tel. +38 (044) 495-29-60; Cell:+38 (050) 525-58-84; e-mail: [email protected]; www.blackseaforum.com.ua
The Interfax-Ukraine news agency is the General News Partner of this event.