Kremlin Subsidies Keeping Crimea Afloat
Crimea is becoming a growing financial burden for the Russian government. Under a three-year budget plan set to start in 2018, Moscow is covering over three-quarters of the peninsula’s operating costs.
The de-facto State Council of the Republic of Crimea recently passed the territory’s budget for 2018-2020. That plan, along with relevant legislation, states the peninsula should be financially independent. Yet, the budget numbers indicate that the region’s dependence on the Kremlin is set to keep growing.
Under the 2018 budget, 77 percent of Crimea’s expenditures are projected to be covered by funds from Russia’s federal budget; the Kremlin will also pay for 60 percent of Sevastopol’s 2018 budget. The city, home to the Black Sea Fleet, is administered directly by the federal government.
In 2019-20, Moscow is expected to provide almost 79 percent of the Crimean government’s operating expenses. For Sevastopol, the share is expected to grow to 65 percent.
To read the full story