FX.co ★ Crimea: Russia's success or mistake

The annexation of the Crimea required from Russia certain financial investments in the economy of the republic. A number of expenses were connected with claims from Ukraine. For example, the Stockholm Arbitration Court accepted the lawsuits of the Ukrainian PrivatBank. Claims from the Ukrainian side arose because of the loss of assets in the Crimea in February last year. The value of claims is up to $1 billion.

In December of the last year, the Ukrainian state-owned company Naftogaz announced its intention to seek through international judicial instances compensation for damages that arose due to the entry of Crimea into the Russian Federation. According to Naftogaz, the price of lost assets is UAH 15.7 billion ($650 million). Earlier this year, it became known about two such lawsuits filed by Ukrnafta and eleven other companies. Russia refused to participate in litigation.

This year, the budget deficit of the republic will amount to 19.3 billion rubles, or 22% of the costs. The income of the Crimea is estimated at 67.4 billion rubles, expenses - 86.7 billion rubles. Revenues will consist of tax and other income (23.9 billion rubles), grant financing from the federal budget (43.5 billion rubles.). According to the chairman of the committee of the State Council of Crimea for the sanatorium and resort complex and tourism of Aleksei Cherniak, the budget of the peninsula received 1.8 billion rubles from the tourism industry.

Two years ago, Foros, the largest Crimean sanatorium owned by Ukrainian businessman Igor Kolomoisky, was nationalized, as the other things of the property of businessman and group Privat, and sold to the Federation of Trade Unions of Tatarstan for 1.4 billion rubles. According to the head of the Crimean Property Ministry Anna Anyukhina, the proceeds will be used to pay compensation to depositors of Ukrainian banks.

According to the head of the republic Sergey Aksenov, last year, 20 billion rubles were allocated for the repair and construction of roads in the Crimea, and the restoration of palaces and monuments cost 2 billion rubles. According to the Minister of Culture of Crimea Arina Novoselskaya, one of the symbols of the peninsula - Swallow's Nest - is in an emergency condition.

Significant losses arose also because of the power blockade of the Crimea. According to the ex-vice-premier of the Crimean government Eugenia Bavykinina, the expenses of industrial enterprises reach 900 million rubles. According to the estimates of the Chairman of the State Council of the Republic Vladimir Konstantinov, the amount of damage exceeds billions of rubles.

The Russian authorities intend to allocate about 10 billion rubles until 2020 to modernize the enterprises of the military-industrial complex of the peninsula. According to Oleg Bochkarev, a deputy chairman of the board of the Military-Industrial Commission of the Russian Federation, regional structures have already become a part of the all-Russian military-industrial complex, while the production load and the number of employees in the defense industry have increased.