Putin signs law to create free economic zone in Crimea

Russian President Vladimir Putin signed the federal law "On the development of the Crimean Federal District and the creation of free economic zone on the territory of the Republic of Crimea and Sevastopol, a city of federal significance." The new economic regime is to be the most privileged in Russia. The Finance Ministry even expressed concerns about the emergence of a "Russian domestic offshore."

The law on the introduction of amendments and necessary changes to a number of legislative acts was published as well, Interfax reports. Both laws were adopted by the State Duma on November 21, and then approved by the Federation Council on November 26. The president signed the laws on November 29. The laws will come into effect from 1 January 2015.

In accordance with the law "On the development of the Crimean Federal District and the creation of the free economic zone,"  the zone will be established in the Crimea for the period of 25 years. The term can be extended afterwards.