The President Victor Yushchenko thinks that the liquidation of the Special Economic Zones was a technical mistake and has noted that they may be reinstituted this September.  According to him, the decision to liquidate the twenty four SEZ’s could be seen from a number of angles.  "On the one hand, they were 'black holes,' where capital was held, 75% of products that were intended to be exported were sold on national markets, and only 15 out of 500 projects were completed according to the original concepts.  On the other hand, there are decent and indecent investors in every economic zone," as reported by "Interfax-Ukraine." 

"When the Parliament liquidated the economic zones, I think it was a mistake because new conditions, offered to the private businesses, were not discussed in the several of the economic policies, which significantly altered the logic of the project," said Yushchenko.

He added that the activities of each SEZ will be observed closely before September for the purposes of integrating the compensatory mechanism.

Moreover, Yushchenko noted that the changes for the budget for 2006 may include the reinstitution of the SEZ’s, following a review of certain projects.  "In a word, we will fix this situation," he assured the Australian businessmen. 

In 1998 two SEZ’s and 33 Territories of Priority Development (TPR) were created for the purpose of attracting investment and creating jobs.  They included an investment, customs benefit and taxing policies.  Benefits for the subjects of SEZ’s and TPR’s were canceled in March of this year. 


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