Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

Govt Sets Up Crimea Ministry
31.03.2014 20:41
Govt Sets Up Crimea Ministry
Photo Credit:

Crimea will have its own dedicated ministry working to develop the economy of the peninsula that has been incorporated into Russia earlier this March.

      Also, investors working in Crimea’s special economic zone will be exempt from any federal taxes.

      Earlier, Russia-IC reported that the government decided to offer tax privileges to companies seeking to expand their operations to Crimea during the remaining months of 2014.

      The Ministries of Finance and Economic Development have been ordered to draft the necessary bills.

      Earlier, the Economic Development Ministry said Crimea’s infrastructure needs some $5 billion in investment, both private and public.

      There’ve been many concerns about the economic impact of Russia’s move to incorporate Crimea.

      The Russian economy is unlikely to rise above 2 percent in 2014 amid investor uncertainty over the possible impact of sanctions, says the Economic Development Minister.

      According to Alexey Ulyukayev, GDP is expected to grow 1.8-1.9 percent undermined by capital flight worth $100 billion.

      A military invasion of Crimea would cost the Russian economy some three percent of GDP, says Vedomosti.

      Earlier, Russia-IC reported on the possible repercussions of sanctions and investors’ fears on the pace of economic development.

      For example, Bank of America Merrill Lynch forecast that Russia’s GDP would shrink some three percent. The transit of natural gas to European consumers worth $30 billion may be disrupted, too.

      The EU may eventually block the construction of the South Stream pipeline and switch to other energy sources in a move towards an economic boycott.

      Public spending is bound to go up to pay for Crimea’s absorption. The Russian authorities have pledged financial aid to the residents of the autonomy whose budget is facing a $1 billion deficit. 

Author: Mikhail Vesely

Tags: Crimea Ukraine crisis    

Next Previous

You might also find interesting:

Russian Banks will get Compensation for their Lost Revenues
The Tax Rate on the Property of Companies will Grow in Moscow
The Decisions of Foreign Courts on Business Cases will Begin to be Executed in Russia
Russia has Made up a Schedule for Reducing Oil Production by Months
Gasoline Prices will Keep on Growing in 2019

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Russian regions  Russian Cinema  Alexei Popogrebsky  Russian tourism  Fyodor Chistyakov  Eurovision  Krasnodar  Russian Traditions  Charity  Street Art  Russian sacred places  Exhibitions in Moscow  Architecture  Grigori Chukhrai  St. Petersburg  Russia  Rock Festivals  Kaliningrad Region  Ryazhsk  Aleksey Navalny  Russian retail sector  Russian education  Russian business  Murmansk  Russian opera singers  Mariinsky theatre  Gusinoozyorsk  Concerts in Moscow  Wooden Sculptures  travel to Russia  Project Financing Bank  Russian medicine  Reindeer  Russian designers  Anna Chicherova  German Quarter  Sheremetyevo  Stavropol Territory  Mercedes-Benz Fashion Week Russia  Arkhangelsk region  Moscow  Finland  Red Square  Festivals in Moscow  Christmas fairs in Moscow  Cableway  Russian Theater  Russian cars  Botanical Garden   Tweed Run 

Travel Blogs
Top Traveling Sites