The parliament passed into law a bill that declares null and void Russia’s Black Sea Fleet treaty with Ukraine.

      According to the bilateral agreement, Kiev allowed Russia to maintain its navy base in Sevastopol in exchange for a price discount for natural gas supplies.

      After Crimea held a referendum on March 16 in favour of re-unification with Russia and was later incorporated as part of Russia, there was no point in complying with the treaty, say MPs of the State Duma.

      Crimea will have its own dedicated ministry working to develop the economy of the peninsula.

      Also, investors working in Crimea’s special economic zone will be exempt from any federal taxes.

      Earlier, Russia-IC reported that the government decided to offer tax privileges to companies seeking to expand their operations to Crimea during the remaining months of 2014.

      The Ministries of Finance and Economic Development have been ordered to draft the necessary bills.

      Earlier, the Economic Development Ministry said Crimea’s infrastructure needs some $5 billion in investment, both private and public.

      There’ve been many concerns about the economic impact of Russia’s move to incorporate Crimea.

      The Russian economy is unlikely to rise above 2 percent in 2014 amid investor uncertainty over the possible impact of sanctions, says the Economic Development Minister.

      According to Alexey Ulyukayev, GDP is expected to grow 1.8-1.9 percent undermined by capital flight worth $100 billion.