Russian official admits Crimean economy depends on links with Ukraine

Maidan Square file photo

(Interfax – Moscow, March 24, 2014) The potential of the Crimean economy will depend to a large extent on the development of its economic ties with Ukraine, Russian Deputy Minister of Economic Development Andrey Klepach told a briefing in Moscow on Monday.

Asked what contribution the Crimean economy would make to the Russian economy, the deputy minister said that “it is hard to assess right now – adding 4.3bn dollars (the estim ate of the Crimean economy – Interfax) to nearly 2,000bn dollars (the estimate of the Russian economy in 2013 – Interfax) makes little sense”.

“The analysis is under way, however, and a development programme for Crimea is being drawn up, and the projects that are now being announced and proclaimed will later become more specific. Proceeding from this, it will be possible to assess the potential of Crimea’s effect on the development of the Russian economy and to estimate the expenditure required for the development of Crimea in order to ! realize this potential,” the deputy minister said.

“In any case, however, Crimea is a territory which should definitely no longer be subsidized. I believe that it will, in the long term but not immediately, make a serious contribution to the development of the Russian economy. One has to realize, however, that Crimea’s economic ties with Ukraine cannot be severed. Crimea strongly depends on Ukraine economically, and it will cont inue to trade with it. Therefore we need a dual estimate here, because Crimea’s prospects and contribution to the potential of the Russian economy depend very strongly on how Crimea’s ties with Ukraine will develop,” Klepach said.

Map of Ukraine, Including Crimea, and Neighbors, Including Russia

Comment