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Duma Extends Kaliningrad's Special Status

(RFE/RL) 23 December 2005 -- Russia's State Duma, the lower house of the parliament, passed a law today extending the regime of the special economic zone in the Kaliningrad Oblast exclave for 25 years.

During the first six years of the renewed regime, participants in the special economic zone will be exempt from the profit tax and in six subsequent years from 50 percent of it.

No customs duties will have to be paid for goods imported into the Kaliningrad region for production during the first six years.

The Russian exclave of Kaliningrad is sandwiched between the EU members Lithuania and Poland. It has enjoyed special economic status since 1996.


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