Blockchain, offshores and new legislation will be included in the DPR’s new economic model

Chairperson of the Facilitating Committee of the International Investment Forum, Rector of the Donetsk Academy of Management and Public Administration under the Head of the Donetsk People’s Republic Larisa Kostrovets gave details on the procedure for creating a new economic development model for Donbass at the Plenary of the Donetsk International Investment Forum.

Kostrovets clearly stressed that the Forum participants had proposed the creation of a new economic model for the development of Donbass.

“To attract foreign investment, we need special business conditions to be introduced for foreign investors, providing for the creation of an offshore envisaging full tax and customs duties exemption, simple and transparent corporate reporting rules, and absolute confidentiality of business owners’ records. There is also required is a declaratory procedure for registering legal entities on the day of submission of the documents that include only statements and the charter with a view to liberalize the economy and lift bureaucratic barriers,” she explained.

According to her, another point is the exemption from any kind of checks by State monitoring bodies.

“Free access to engineering infrastructure is required, otherwise it should be provided by the State if there is none,” Kostrovets added.

Another condition for attracting investment in the economy of the DPR is the rent-free and permanent transfer of land.

“We need to abolish the procedure of activities’ licensing and to adjust the regulatory framework to develop a specifically-designed environment for doing business. In addition, it is necessary to address the issues of ownership and use of real estate by concluding perpetual or long-term (up to the 50-year period) concession agreements, along with equity interest,” she added.

The introduction of blockchain infrastructure is another major step in the development of the economy of Donbass.

“Investors will be able to register unconditional ownership rights in the case of Greenfield projects’ implementation. Along with that, time limits for settlements on export-import contracts will be extended up to 210 days, and there will be legalized blockchain infrastructure and blockchain partnerships providing digital services, meeting the highest security standards, around the world,” Kostrovets explained.