On the last day of 2021, the Russian government issued Resolution № 2519, which approved a new version of the so-called “State Program” “Socio-Economic Development of Republic of Crimea and City of Sevastopol”, approved by the aggressor State in 2019. The previous version of the “program” amended in March 2021 provided almost 846 billion rubles of “federal costs”, and at the same time it was expected to spend 1270 billion rubles in 2022-2025 for the needs of this “program”.
The new version of the “program” does not mention its next amount of funding, but it requires increased tourist flow to the Crimea, up to 11 million people a year and to increase investment in the peninsula to 143 thousand rubles per capita. At the same time, the new version of the “program” states the alleged success of Russia’s infrastructure and energy projects in the occupied Crimea and that “the dynamics of the region’s development shows the stability of the economy”. De facto, the Russian government, by Resolution № 2519, waives its commitment to the corresponding expenses for the next three years.
Prior to the approval of Resolution № 2519, Russian Deputy Minister of Economic Development Sergei Nazarov announced in an interview with “Rossiyskaya Gazeta” a “reassessment” in 2022 of another “federal target program”, implemented by the Russian invaders in the Crimea by 2025 with a total “budget” in 1373 billion rubles, of which 55 billion were allegedly spent in 2021, and 770 billion were allegedly “mastered” in 2015-2020. At the same time, in measuring the new steps of the Russian invaders for water supply in the Crimea, Mr. Nazarov acknowledged that all the announced projects of “new reservoirs” and “water mains” remain “at the level of ideas until the decisions are not approved”.
Stating about the alleged need to build the desalination plant near Yalta, the Deputy Minister stated that in this area “pre-project work has been carried out, the design itself has not yet begun and today we are talking about choosing a place” which is “also problematic”. As for the “Pivdenny” (“Yuzhnyue”) city treatment plant in Sevastopol, Nazarov said that “the project is currently being adjusted” and that it will be allegedly implemented no earlier than 2024. This interview was a factual response to the statements of the so called “head of Crimea” Sergey Aksyonov about the alleged extension of the “federal target program” until 2030 and the alleged increase in its “federal funding” by 200 billion rubles.
Moreover, Nazarov announced the transfer of the “federal target program” to the “state program” from 2022 through the “transition to a new governing system”, saying that “nothing is changing in terms of financing facilities”. At the same time, in contrast to the “federal target program”, the funds of the “state program” have defined and quite strict mechanisms to control their spending by the aggressor State. Thus, the general approach of the Russian invaders to the peninsula’s economy will be a clear reduction in the corresponding “federal funding”, the attempts to “tighten control” over spending “on the ground» and an increase of the region’s economic exploitation in the coming years.
This dimension is characterized by the “voluntary dismissal” at the end of 2021 of the head of the “directorate for the management of the federal target program” Andriy Nikitchenko and the appointment of its new “Director General” Vladimir Dedov. It is noteworthy that a native of Sevastopol and a graduate of the Moscow State Institute of International Relations Mr. Nikitchenko in 1998-2002 worked in the London branch of the German financial giant “Commerzbank” and was “responsible for investment in Eastern Europe”, and later he worked for many years in financial institutions of Vologda Region, and was elected as regional deputy there. The transfer of his functions to Mr. Dedov, a graduate of the Moscow Military University of Finance and Economics, is quite a characteristic feature in the sense of reducing “federal funding” and “strengthening control” over it.