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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of September 24, 1999 No. 1756

About actions for creation and functioning of special (free) economic zones and the territories with the special mode of investing activities

(as amended on on August 27, 2003)

For the purpose of generalization of experience of functioning of special (free) economic zones and the territories with the special mode of investing activities, assessment of social effects of their basis and permission of question concerning feasibility of development of such forms of economic activity and according to Item 10.1 of the resolution of the Verkhovna Rada of Ukraine of July 1, 1999 "About the main directions of budget policy for 2000 (the budget resolution)" the Cabinet of Ministers of Ukraine decides No. 795:

1. Ceased to be valid

2. Before receipt of practical results of functioning of special (free) economic zones and the territories with the special mode of investing activities, the conclusions of work of the Commission it is temporary to impose the moratorium on provision in the Cabinet of Ministers of Ukraine of offers on creation of new special (free) economic zones and the territories with special investment regime.

3. Concerning development and the European integration, State Tax Administration, the State Customs Service together with others central and local executive bodies to provide to the Ministry of Economics, the Ministry of Finance, the National agency project development of legal acts for creation of new special (free) economic zones and the territories with the special mode of investing activities taking into account requirements of the legislation for the tax matters and indicators of drafts of government budgets the next years.

4. To the Ministry of Finance, State Tax Administration, the State Customs Service together with the relevant regional public administrations to establish control of amounts of receipts in budgets of all levels in regions where special (free) economic zones are created and the special regime of investing activities is introduced and to quarterly inform the Cabinet of Ministers of Ukraine.

5. Approve the Development program in Ukraine of special (free) economic zones and the territories with the special mode of investing activities for the period till 2010 it (is applied).

6. To the state committee of statistics together with the Ministry of Economics, State Tax Administration, the National agency concerning development and the European integration and the State Customs Service to submit proposals on introduction since January 1, 2000 to the statistical reporting concerning activities of special (free) economic zones and the territories with the special mode of investing activities.

Prime Minister of Ukraine

V. Pustovoytenko

Approved by the Resolution of the Cabinet of Ministers of Ukraine of September 24, 1999 No. 1756

The development program in Ukraine of special (free) economic zones and the territories with the special mode of investing activities for the period till 2010

 

General provisions

Reforming of economic and social situation in Ukraine requires application of new forms of regional development which are based on opportunities of regions more full and more effective to use cash resources and benefits of favorable economical and geographical and geopolitical arrangement.

The most efficient forms of regional policy which are applied by the countries as with advanced, and transitional economy is creation of special (free) economic zones and implementation of complex of the events held central and local executive bodies by introduction of the special modes of investing activities.

As of September, 1999 in Ukraine the decision on creation of such special (free) economic zones is made (daleesez): Donetsk and Azov - in Donetsk, Transcarpathia - in Transcarpathian, "Yavoriv" and "Kurortopolis Truskavets" - in Lviv, "Slavutich" - in Kiev, "Interport Kovel" - in Volynsk, Nikolaev - in Nikolaev, "Free port" - in Odessa areas, "Crimea Port" - in the Autonomous Republic of Crimea and introduction of the special modes of investing activities in the territories of priority development (further - the special modes): in the Autonomous Republic of Crimea, the Donetsk, Luhansk, Transcarpathian, Lviv, Zhytomyr, Chernihiv, Volynsk regions, the cities of Shostka of the Sumy region and Kharkiv.

Regions of Ukraine continue to initiate creation in their territories of SEZ and introduction of the special modes. Uncontrollable increase in number of SEZ and the special modes is inadmissible as for economic, and social and political reasons.

The development program of special (free) economic zones and the territories with the special mode of investing activities for the period till 2010 (further - the Program) shall promote activation of development and process improvement of creation of SEZ and introduction of the special modes, at the same time preventing forming of their excessive quantity and the inefficient competition concerning attracting investors.

The program consists of two parts - Subprogrammes of development in Ukraine of special (free) economic zones and Subprogrammes of development in Ukraine of the territories with the special mode of investing activities.

I. The subprogramme of development in Ukraine of special (free) economic zones

In Ukraine special (free) economic zones of different functional types can be created: foreign trade, torgovoproizvodstvenny, scientific and technical, tourist and recreational and other. Separate zones can be complex, that is combine the functions inherent to different types of special (free) economic zones.

 

Purpose and tasks

The purpose of the Subprogramme is implementation of complex of actions for realization of the state strategy of creation of SEZ approved with programs of social and economic development and structural adjustment of economy of Ukraine for the period till 2010, concepts of the state regional economic policy and scientific and technology and innovative development, the concept of creation and functioning of national network of the international transport corridors in Ukraine.

The subprogramme is directed to creation of conditions for economic growth, development of foreign economic activity, investment attraction (including - foreign), recoveries of innovative processes, development of national production and the export potential, employment of the population, improvement of social and economic situation in regions.

The main objectives of the Subprogramme are:

effective use of the available and created transport and communication network of Ukraine;

attraction of internal and foreign investments to economic complex of certain regions;

creation new, preserving and upgrade of the existing workplaces;

increase in tax revenues and obligatory payments in the budget;

upgrade of material and technical resources of the production and non-productive sphere;

assistance to implementation of structural adjustment of economic complex of certain regions;

restructuring of the unprofitable companies;

implementation of new resource-saving technologies;

increase in the income of the population;

activation of business and foreign economic activity;

development of modern methods of management;

increase in export of products and services.

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