Last year we wrote about the idea to send young people to the construction site on the Crimean Peninsula. “For today’s youth a work experience would be a good start to the adult life, responsible and truly independent. Moreover I’m sure, will be the real competition for going to Sevastopol and Crimean construction.” Now, February, 28 on the Kremlin website an information about the list of Presidential instructions following meeting with participants of the Forum of leaders of student and youth organizations held on January, 25 appeared.
Vladimir Putin authorized to “create conditions to bring student building groups to contruction of the infrastructure of Federal importance including the bridge across the Kerch Strait. The term is June, 1, 2017. The Responsible is D. A. Medvedev”.
Photo by: Konstantin Khodakovskiy. The part of the bridge on the Taman side. There are two stations passing to the left of a new gas lins to Crimea on the foreground.
How will the Crimea and Sevastopol meet the youth that will came from the mainland? Obviously with economic development which will further grow thanks to the efforts of those who will be happy to apply their knowledge and experience for the transformation of this Russian region.
A number of enterprises shown the growth of net production in 2015 comparative to 2014
On the website of Crimean Statistical department it was reported about the end of 2015 which was a very difficult period when all Russia led a hard job of adapting to the regime of sanctions and landslide of prices for the main raw materials base of export goods. A number of branches shown a growth of production level. Fisheries and aquaculture sectors gave a growth by 22.6% and I remember that last winter it was possible to buy a tasty sprat from the Black sea in Moscow and remember the summer. It was the most delicious preserves I have ever eaten and unexpectedly the cheapest. A price was twice cheaper than the fare in the Moscow metro.
“Voted to secession from Ukraine the Crimeans saved their lives. And most importantly, saved their future”
The electrical energy industry, distribution of gas and water began to develop dynamically In the Crimea. In such a way that in 2015 they showed the result — plus 26.4% for the year. By the way the construction of a thermal electric power station near Sevastopol has to be completed this year. There was the energy blockade of the Crimea from Ukraine but Russian region have successfully manage it. Many Crimeans who in November 2015 were getting warm at the fires remember that they team up. They were encouraged by the fact that the energy from the mainland came two times faster than expected thanks to Vladimir Putin. There near fires they recalled the events of the spring of 2014. As the press Secretary of the President of Russia Dmitry Peskov noticed “we see a civil war in Ukraine. Voted to secession from Ukraine the Crimeans saved their lives. And most importantly, saved their future.”
The economy went ahead as is shown by the statistic data in 2015. The delivery of healthcare and social services grew by 19.4%, education — by 26.1%, community and personal services — by 50.6%. Hotels and restaurants showed a growth of volumes by 11.1%.
The GRP of the Crimea in 2015 has increased over the year in physical terms by 8.5% and in monetary unit by almost 21%. The average income has increased by 2.79 times to 26 thousand 300 rubles per month
Special call attention the following data. wholesale and retail trade and repair of vehicles, household goods and personal items added 23.1%. It means that trade turnover increased and people began to buy more goods. Is a good sign for gross regional product. The base of the GRP of the Crimea and Sevastopol is formed by such services as trade and repairs (15.8%), agriculture, agriculture, hunting and forestry (17%), transport (10.9 %), health and social services (10.2 %). In the whole it gives more than half of the economy of the Crimean Peninsula. The GRP of the Crimea has increased over the year in 2015 in physical units by 8.5% in monetary unit by almost 21% and average income has increased by 2.79 times to 26 thousand 300 rubles per month.
A number of registered legal entities and businessmen without forming of a legal entity is growing: in 2016, legal entities become more by 14.5%, and businessmen without forming of a legal entity by 26%
What’s next? Treasury revenues of the region are rising and therefore its capabilities. Last year revenues were 40.6 billion, a third more than in 2015. This year revenues in the amount of 45 billion rubles are expected. A number of registered legal entities and businessmen without forming of a legal entity is growing: in 2016, legal entities become more by 14.5%, and businessmen without forming of a legal entity by 26%. Entrepreneurs tend to work legal and it caused that personal income tax for the year grew by a third.
Free economic zone did not lead a decrease of budget revenue. The profit tax is less but revenue for personal income tax compensated this reduction.
The Federal Target Program “Social and economic development of the Republic of Crimea and city of Sevastopol until 2020” accepted in August 2014 is carried out this year. This means that new roads, new water pipelines, kindergartens will appear. The Federal Target Program for the time of its implementation will create 600 new objects. Investments in the amount of 769,5 billion rubles in infrastructure are clear as together with Sochi the Crimea became one of the noticeable points of domestic tourism in Russia.
Crimea has received the budget loan last year in the amount of 5 billion rubles with percentage rate 0.1%
The Crimea, as well as some other regions of Russia has received the budget loan last year in the amount of 5 billion rubles with percentage rate 0.1%. These loans almost at zero rate can become an example for private investments. It is known that in Arab countries there is a practice of Islamic loans and in Israel — kosher finance. In fact the investor doesn’t provide a loan, and becomes one of conditional co-founders of the business where he invests. This is not the same as investing own capital. The absence of percent in such credit provision is one of the important features. A lot is based on trust to each other. This form of financing exists together with banking accommodation or venture business.
The way the region develops in conditions of financial restrictions should become a main subject of study of economic policy
Interest-free private loan products have historically appeared when there were difficult economic conditions associated with expensive financing. For the economy of the Crimea and Sevastopol the development of such products would be very important. The difficult economic conditions in the Crimea and Sevastopol are dictated by sanctions of some Western countries. The way the region develops in conditions of financial restrictions should become a main subject of study of economic policy. After all, the entire economy of Russia is under sanctions. This means that the example of the Crimea and Sevastopol will allow to study various economic approaches that can be applied at the level of the whole country. Obviously in this case Crimea becomes an idea provider for the whole Russia.