Litwin
Platinum Member
Grand projects funded by muscovy can do little to cover up the lopsided and inadequate economy and infrastructure that Crimeans are now living with
Russian television’s number one propagandist Dmitry Kiselyov, “Crimea gave Russia inspiration and strengthened faith in our own strengths.” But five years on from annexation, in terms of economic successes in Crimea, these have come at great cost to Russia – if you can even call them successes. Subsidies from Moscow have led to a lopsided and highly militarized economy on the peninsula, squeezing out other sectors. In short, over the last five years Crimea has become more dependent on Moscow – and achieved the rare distinction of becoming both more expensive and poorer at the same time. Several grand projects have been completed in Crimea; but Moscow paid for all of them, and they have diverted resources from elsewhere. Opinion polls show that Russians increasingly complain about the expenditure. The Kerch Bridge officially cost 172.1 billion rubles ($2.6 billion), plus smaller contracts, but its prioritization “stopped construction of nearly all new roadways and bridges in Russia. In 2017, only 10 new roadways were built across Russia”. The cost of building the Tavrida highway to Sevastopol has tripled, from 41.8 billion rubles to 144 billion rubles ($0.6 billion to $2.2 billion). Completion is not due until September 2020. Before annexation the main supplier of power for Crimea was the Zaporizhzhia nuclear power plant to the north: 82 percent of energy supply came from outside Crimea. Since annexation, two new thermal power stations have been built, at no small cost of 49 billion rubles. Meanwhile, sanctions are having an effect: “44 Russian and Crimean companies and 155 individuals are currently under international sanctions”, as of September 2018. The last high-profile Western company, Best Western Hotels and Resorts, left Crimea last year. Fear of sanctions means that mainstream Russian banks do not operate in Crimea. The militarization of the economy and the strong criminal presence within the Crimean elite have shrunk the SME sector. There were 15,553 small private enterprises in 2014, but by 2018 only 1,382. Small businesses used to employ 31.2 percent of the workforce – now the figure is only 19.5 percent. A massive 77 percent of Crimea’s budget is currently paid by Moscow, and 60 percent for Sevastopol, rising to 79 percent for Crimea and 65 percent for Sevastopol in 2019-20. Before annexation, 85 percent of Crimea’s water supply came from further north in Ukraine via the North Crimea Canal built by the Soviet Union in the 1960s and 1970s. About 70 percent of the green steppe is now dried up or damaged, and therefore unsuitable for farming. After five years, Russia has not succeeded in creating a self-sustaining economy in Crimea. Instead, Crimea resembles the late Soviet Union: it is highly militarized, but it cannot solve basic questions of water and food. And nor is Crimea ‘stable under occupation’.
Crimea is a huge and increasing drain on Moscow's already shrinking federal budget. The Putin regime has ruined the local economies by turning the peninsula into a giant military base.
The indigenous Crimean Tatar people are under unceasing persecution from the Russian occupation authorities.
Crimea: Russia’s newest Potemkin Village
Russian television’s number one propagandist Dmitry Kiselyov, “Crimea gave Russia inspiration and strengthened faith in our own strengths.” But five years on from annexation, in terms of economic successes in Crimea, these have come at great cost to Russia – if you can even call them successes. Subsidies from Moscow have led to a lopsided and highly militarized economy on the peninsula, squeezing out other sectors. In short, over the last five years Crimea has become more dependent on Moscow – and achieved the rare distinction of becoming both more expensive and poorer at the same time. Several grand projects have been completed in Crimea; but Moscow paid for all of them, and they have diverted resources from elsewhere. Opinion polls show that Russians increasingly complain about the expenditure. The Kerch Bridge officially cost 172.1 billion rubles ($2.6 billion), plus smaller contracts, but its prioritization “stopped construction of nearly all new roadways and bridges in Russia. In 2017, only 10 new roadways were built across Russia”. The cost of building the Tavrida highway to Sevastopol has tripled, from 41.8 billion rubles to 144 billion rubles ($0.6 billion to $2.2 billion). Completion is not due until September 2020. Before annexation the main supplier of power for Crimea was the Zaporizhzhia nuclear power plant to the north: 82 percent of energy supply came from outside Crimea. Since annexation, two new thermal power stations have been built, at no small cost of 49 billion rubles. Meanwhile, sanctions are having an effect: “44 Russian and Crimean companies and 155 individuals are currently under international sanctions”, as of September 2018. The last high-profile Western company, Best Western Hotels and Resorts, left Crimea last year. Fear of sanctions means that mainstream Russian banks do not operate in Crimea. The militarization of the economy and the strong criminal presence within the Crimean elite have shrunk the SME sector. There were 15,553 small private enterprises in 2014, but by 2018 only 1,382. Small businesses used to employ 31.2 percent of the workforce – now the figure is only 19.5 percent. A massive 77 percent of Crimea’s budget is currently paid by Moscow, and 60 percent for Sevastopol, rising to 79 percent for Crimea and 65 percent for Sevastopol in 2019-20. Before annexation, 85 percent of Crimea’s water supply came from further north in Ukraine via the North Crimea Canal built by the Soviet Union in the 1960s and 1970s. About 70 percent of the green steppe is now dried up or damaged, and therefore unsuitable for farming. After five years, Russia has not succeeded in creating a self-sustaining economy in Crimea. Instead, Crimea resembles the late Soviet Union: it is highly militarized, but it cannot solve basic questions of water and food. And nor is Crimea ‘stable under occupation’.
Crimea is a huge and increasing drain on Moscow's already shrinking federal budget. The Putin regime has ruined the local economies by turning the peninsula into a giant military base.
The indigenous Crimean Tatar people are under unceasing persecution from the Russian occupation authorities.
Crimea: Russia’s newest Potemkin Village
