On 27 September 2014, the Law of Ukraine "On Establishing
Free Economic Zone "Crimea" and Specifics of
Economic Activity on the Temporarily Occupied Territory of
Ukraine" (the "Law") came into force. Although the
initial draft intended to become a tool of
peninsula's economic blockade, the final version of the
Law proved to be much softer in its approaches. In a nutshell,
it simply acknowledges the status quo. Businesses
across administrative border between mainland Ukraine and
Crimea are allowed to trade with each other subject to a
number of reasonable limitations analysed in more detail below.
Legitimization of a Status Quo
Effective 27 September 2014, the territory of Crimea (Autonomous
Republic of Crimea and Sevastopol) is declared "free economic
zone" where all businesses, including those regulated by the
state, may be freely conducted. The lawmakers abandoned the initial
proposal to outlaw the businesses subject to state regulation.
