1. Odessa National economic university Trends in the development of free economic zones in Ukraine Speaker Mamontova I.V. Supervisor PhD, Prof. Baranova V.G.

2. Free economic zone - a part of the state territory with free regime for foreign investment and favorable economic conditions (favorable exchange rate regime, tax benefits, low customs duties, a feature of employment law, etc.)

3. Classification of free economic zones* 1. Foreign trade zone 2. Integrated production area 3. Scientific and technical areas 4. Recreational areas 5. Banking and insurance (offshore) zone 6. Border trade zone *according to resolution of the Cabinet of Ministers of Ukraine of 14 March 1994 № 167 "On the Concept of creation of special (free) economic zones in Ukraine"

4. Map of free economic zones in Ukraine FEZ “Porto-ranco ” FEZ “Porto- franco” FEZ “Porto-Franco” Odessa region: -SEZ “Porto-Franco” -SEZ “Reni” Mykolaiv region: -SEZ “Mykolaiv” Crimea region: -SEZ “Syvash” -SEZ “Port Crimea ” c. Mykachivo: -SEZ “Zakarpatya” Mariypol region: -SEZ “Azov” Donetsk region: -SEZ “Donetsk” t. Truskavez: -SEZ “Kurtopolis Truskavez” v. Yavoriv: -SEZ “Yavoriv” t. Slavutich: -SEZ “Slavutich” t. Kovel: -SEZ “Interport”

5. The actual steps of Ukrainian government in creating of Free economic zones Taxes policy creation of a special tax regime for businesses FEZ The Law of Ukraine "On general principles of creation and functioning of special (free) economic zones" The creation of 12 free economic zones on the territory of Ukraine abolition of the current taxation regime - the complete abolition of benefits The Law of Ukraine "On Amendments to the Law of Ukraine" On State Budget of Ukraine for 2005 " Legislative steps Foreign- economic steps

6. Ratings of the effectiveness of Free economic zones in Ukraine on 01.01.2005 (at the time of cancellation of privileges )

7. Reasons for cancellation of the preferential tax regime in Ukraine:  imperfect tax legislation  abuse of some concessionary clauses by some innovation and investment businesses  budgetary losses  absence of criteria for evaluating the expedience of FEZ creation on some territory or a region

8. Kherson region АР Крим Mykolaiv region Odessa region - Advantages of the Black Sea region compared to other regions of the country: - A favorable climate coastal zone - The presence of major sea and river ports -Availability of mineral resources and deposits of raw building materials - A variety of fish resources, fishing which put on an industrial basis - A powerful industrial and agricultural production, leading industries: engineering, food and light industry - Developed chemical industry - Developed transport infrastructure: rail, water, road

9. Economic results of free economic zones operation on the territory of Odessa region

10. Social results of free economic zones operation on the territory of Odessa region

11. Budgetary results of free economic zones operation on the territory of Odessa region

12. Disadvantages of the applied mechanism in creating and using FEZ in Ukraine: - No functioning of FEZ mainly for the long term - The absence of strict control over the targeted use of tax benefits by investors - Premature termination of tax benefits in 2005 - No systematic usage of financial instruments - Absence of legislative support for the special regime for SEZs (in Tax Code)

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