Crimea – Russia 2020: the realities of the economy

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For almost 6 years now, the return of Crimea to its “home harbor”, as the invaders say, has hit the Russian economy noticeably, and at the same time it can’t provide a normal standard of living on the peninsula. This conclusion does not consist of opinions, but of real numbers in statistics. OneNews prepared the economic results of the past year and put together plans for the 2020s.

At the end of November last year, deputies of the Russian-controlled Crimea adopted a budget for 2020, it amounted to 185.2 billion rubles, in 2019 the amount was 183.3 billion rubles. Well, of course, as in the past five years, federal subsidies remained the main source of filling the local budget, this year Crimean officials will receive 134 billion rubles from Moscow. That is, the Crimean budget will be subsidized by 70%. Tauris is one of the top most sponsored from the federal budget, and carries an insignificant percentage of its own earnings. For comparison, the allotted budget for 2020 of the entire Ulyanovsk region amounted to 78.4 billion rubles, the budget of Voronezh was 123.6 billion, and the neighboring Smolensk region was 50.9 billion rubles. Amounts of funds released by the Russian news agency REGNUM.

The situation with the Crimean budget remains unchanged: for 2015 – 2018, more than 488 billion rubles were invested in the maintenance of the peninsula only in the framework of the Russian program “Socio-economic development of Crimea and Sevastopol until 2022”. The main reason is that in the Crimea there is simply no development, therefore, the economy of the peninsula can no longer survive without subsidies from Russia, a territorially huge country whose budget is not designed to comfortably maintain its entire area.

Earlier, the publication Crimean Reales published an analytics according to which, according to the results of 11 months of 2019, an increase of 20.3% was recorded in the industry of the peninsula compared to 2018. Such a result could be a very positive indicator, but it was due not to the development of the Crimea, but to a sharp increase in electricity generation – 53.3% after the launch of new turbines at the Simferopol and Sevastopol TPPs.

And now we see that after 6 years “with Russia” the Crimea can’t even catch up with the level of 2013, here again, as an indicator, statistical data on volumes of sales: 2013 – 3315 million dollars, 2019 – 2060 million dollars. The difference today is 40%.

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And when there is no development, and Moscow invests, the inhabitants of “immense” Russia feel this financial breakdown. One of the top American financial informants – Bloomberg conducted a study according to which, they calculated the amount of losses for the Russian economy over the five years of the occupation of Tauris. Financial expert Scott Johnson said that the economy of the world’s largest energy exporter “dipped” by almost 10% or $ 150 billion, compared with the figures for the end of 2013. This is due to a drop in oil prices (about 4% in total losses), but the main reason is sanctions and other factors.

Most of Russia’s spending arose as a result of sanctions by the United States and the EU, which were introduced annually after the annexation. In addition to low oil prices, which is reflected in the aggressor country, and low incomes of its residents, there is a drop in foreign investment: after a slight increase in 2017, foreign direct investment declined.

A simple comparison of the figures shows that a comfortable standard of living is not observed either in the territory of neighboring Russia or in the territory of the occupied Crimea, the only question remains: on whose neck will the Putin policy rope be pulled faster?