Embassy of the Russian Federation in the Republic of Botswana
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24 july

Press-Release concerning Crimea's Development within Russia

24.07.2019

The structural integration of the Republic of Crimea and the federal city of Sevastopol into the Russian Federation has been finalized. The region's legislation has been harmonized with the federal law. Crimea is one of the most dynamically developing Russian regions.

Despite the challenging legacy of the "Ukrainian period", including poor state of the majority of the key assets, as well as the accruing sanctions pressure, Crimea's social and economic situation is improving. Since it's reunion with Russia, actual wages of people working in the public sector as well as pensions and allowances in Crimea have increased by 2 - 2.5 times and approached the all-Russia level. Positive dynamics is observed in almost all main economy sectors of Crimea. Regional budget revenue is steadily increasing, residential development and industry are gaining momentum, agriculture is showing signs of recovery, and traditionally important resort and tourism industry is flourishing. The Federal Special Purpose Program "The Social and Economic Development of the Republic of Crimea and the City of Sevastopol until 2022" with a budget of about 1 trillion rubles (16 billion USD) has been implemented since 2015. It is designed to redress imbalances in regional development, upgrade the living standards of the population and the rate of economic development of Crimea to the all-Russia level, as well as to establish conditions conducive to sustainable economic growth in the peninsula.

On the whole, the industrial production continues its upward trend, many enterprises have undergone modernization. From January 2015 to December 2018, the index of industrial production rose from 90.1 per cent to 108 per cent in the Republic of Crimea and from 87.7 per cent to 129.2 per cent in Sevastopol. The share of industry in the gross regional product (GRP) in Crimea has increased from 10 to 18 per cent, while on the whole GRP has more than doubled since 2014.

There is a free economic zone in the territory of Crimea. Within its development framework, over 250 investment agreements were signed, 183 projects with a total investments of over 156 billion rubles (2,6 billion USD) are being implemented, and 14,000 jobs are to be created (including 34 investment agreements worth 12 billion rubles (200 million USD) and providing 1,300 jobs that were signed in 2018). Major investment areas include agriculture (60 investment projects), construction (39), industry (32), resorts and tourism (26) and transport (10).

Due to "energy blockade" of Crimea by Ukraine in November 2015, interim schemes were promptly established to supply power via an "energy bridge": hundreds of mobile higher-capacity generators were brought in and supply cables and a cross-country twin gas pipeline were laid from Kuban through the Kerch Strait. Thus, the problem of power supply has been successfully resolved in Crimea. To ensure a stable generating capacities surplus and to end Crimea's energy dependence on Ukraine, two high-capacity thermal power plants – Balaklavskaya TPP (Sevastopol) and Tavricheskaya TPP (Simferopol district) have been constructed and already put into operation. The Sakskaya CHP Plant has also become operational.

The opening of the Crimean Bridge for road traffic in May 2018 has significantly benefited the dynamics of Crimea's socio-economic development. In autumn 2019, a regular railway communication through the transport passage across the Kerch Strait will be put into operation.

Additional impetus to the region's development is expected to be given by the construction of the four-lane federal highway "Tavrida" stretching across the entire peninsula from east to west (Kerch – Simferopol – Sevastopol, about 250 km long, total cost – 130 billion rubles (2,16 billion USD)). Its first section, Kerch – Simferopol, has been put into operation at the beginning of 2019.

From 2015 to date, more than 600 kilometers of roads were repaired in Crimea, and 700 more kilometers of roads will be upgraded by 2021. The commissioning of Simferopol International Airport in 2018 significantly facilitated passenger flow to the peninsula. The new international airport terminal is capable of receiving up to 7 million people annually.

After the North Crimean Canal was shut off by Kiev, the issue of safe and secure water supply has been the only problem not yet completely resolved. To ensure stable water supply for the population of Crimea, 100 kilometers of new water pipelines have been built, multi-pipe water conduits are to be completed by 2020 to replenish the North Crimean Canal and overcome the after-effects of its shut-off. By 2030, a 36 billion rubles - worth water quality improvement program is to be carried out as well.

The continuous growth of the tourist flow to Crimea over the recent years accelerated tangibly to reach 6.5 million people in 2018 (during the "Ukrainian period" the peninsula was visited by about 5.5 million tourists annually; for instance, in 2014 the peninsula was visited by less than 4 million people).

The re-registration of citizens' associations, including religious organizations, has been completed. Federal and regional authorities work towards promoting cultural, religious and other interests of all national minorities in Crimea, including Crimean Tatars, which are set forth in the Constitution of the Republic.

The Embassy of the Russian Federation in the Republic of Botswana