The urgency of the work is conditioned by the creation and functioning of a free economic zone in the Republic of Crimea. The purpose of this study is to analyze the functioning and monitoring of the activities of the free economic zone in the Republic of Crimea. The article considers the purpose, goals and tasks of creating such zones in the states, as well as the issues of the formation of free economic zones. Approaches to assessing the compliance of the regional environment with the conditions for the creation of free economic zones are described. Crimea is given the role of a region in which a preferential tax regime will be in place to create a favorable area for attracting investments. The introduced economic measures will allow developing the region, replenish the budget of the peninsula and improve the welfare of the population of the Crimea. The Russian Federation has rich experience in creating FEZ. Seventeen special economic zones are already operating on its territory. They differ in geography of location – from St. Petersburg to Khabarovsk, and in priority areas of development: tourism, technology, logistics, industry. For the Crimea, a model of the Kaliningrad SEZ has been chosen; Both areas have an advantageous geographical location and there is access to the seas (in the Crimea – to Black, in Kaliningrad – to the Baltic Sea). The aspects of creation and initial functioning of such a zone in the Crimean Federal District are revealed. The article describes tax and customs privileges for participants of the free economic zone. The analysis of the conditions of doing business in the free economic zone of the Crimea was conducted. The first results and problems of the functioning of enterprises in this zone are shown. The directions of further research assume the study of the further operation of the SEZ in the Crimea with consideration of promising areas of business development.