Expert: Russia will face difficulties to find money for Crimea in 2017

According to Adviser on economy of the General Director of the Open Brokers Russian Company Sergei Khestanov, the annexed Crimea will not experience any economic advance in 2017 due to the big subvention part in the economy of the region.

“We must clearly understand the difference between the growth dynamics of the Russian economy and that one of the economy of Crimea that can be theoretically achieved simply by injecting from the Russian federal budget. The Russian federal budget is a deficit-plagued one; and the deficit is over 3%, so it will be difficult to find money. A 0.8% to -1% growth of the Russian economy is forecasted in 2016 and the next year’s one will be 0.5% by the buoyant hopes. So it is very problematic to invest in the growth of the economy of Crimea in such the circumstances,” said Khestanov.

On December 13 the Council of Ministers of Crimea approved the forecast of the socio-economic development of the region for the next three years. The document indicates that the local leadership hopes for the growth of the gross regional product. It is expected that the next year’s growth will be almost 5.5%, 9% in 2018 and a little bit more than 8% in 2019.


2 Comments on Expert: Russia will face difficulties to find money for Crimea in 2017

  1. Not as many difficulties as Ukraine will have finding money for Ukraine. If the next loans don’t come through it’s sawdust soup in March – well, actually, no new Mercedes for the ‘real’ EUkrainians.

  2. G Kaplan, MD // December 21, 2016 at 11:10 // Reply

    This contagion is taking over BREXIT, USA, Crimea etc. England is going to have a huge economic crunch, same as Crimea. Putin doesn’t care if nations he occupies or influences lose $, as long as he can control them, for that is his ultimate goal.

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