21 April 2015 ~ rus.newsru.ua
Speaking at a meeting of the State Duma on the annual report of the government, Prime Minister Dmitry Medvedev announced that ‘if the external pressure increases, and the price of oil remains at an extremely low level for a long time, then we are going to have to develop a different economic reality.’
This was reported by Новости@Mail.Ru.
According to Medvedev, the cause of this is the unprecedented pressure created by the ‘merger’ of the Crimea with Russia.
Talking about the circumstances in which the Russian economy exists, Medvedev stressed that ‘the serious external economic pressure on our country was caused by a major political decision last year – the return of the Crimea to the Russian Federation.’
At the same time, Medvedev insisted that no other scenario was possible, and placed responsibility on the entire country, stressing that ‘all of us – the country as a whole, the government, the parliament’ are responsible for the decision.
It is noteworthy that the responsibility of the government and the State Duma came after that of ‘the whole country.’
Speaking about the ‘world-historical significance’ of the annexation of Crimea, Medvedev said that the development of the peninsula was ‘an exceptional case for our country.’
At the same time, he recalled that funding for the ‘socio-economic development of Crimea and Sevastopol up to 2020’ would be about 700 billion rubles, of which 660 billion rubles would come from the federal budget.
That is, Crimea had become a 95% subsidized region, which was very costly for the Russian budget.
In general, the incorporation of Crimea into Russia was worth even more. ‘If the external pressure increases, and the price of oil remains at an extremely low level for a long time, then we are going to have to develop a different economic reality,’ warned the prime minister. It is noteworthy that Russians did not really think about the ‘price’ of the annexation of Crimea a year ago.
According to him, there is not a single sector of the economy that would not be touched by the sanctions. In total, Medvedev said, the damage to the Russian economy in 2014 from the impact of sanctions is estimated at 25 billion euros, or about $30 billion (1.5% of GDP). In 2015, this could increase by several times.
Medvedev said that Russia’s regions, which were now deprived of a substantial part of budget finances, were already suffering from the annexation of Crimea. And these losses would only increase against the background of rising costs and falling budget revenues. ‘The revenues of the Russian Federation budget have fallen, while the costs, by contrast, have increased.’
Having read the mantra that ‘the overall situation is stabilizing,’ Medvedev was compelled to admit that ‘there should be no illusions.’
Recall that after the annexation of Crimea, the peninsula became almost completely subsidized: it has no electricity generation, is sorely lacking fresh water, and has almost completely severed its transport links, which is why last summer Russians had to wait in line for 40 hours in the heat for the Kerch ferry.