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Is there any profit for the Russian economy from Crimea accession? It seems like it is not a profitable region, so to me it seems it would be another region which would waste taxpayers money, but actually I didn't do deep research on this, so I still got doubts.

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    @Chad haha, well, it's not socialist state. But yes, government really like to interfere in economics – Danil Gholtsman Mar 11 '14 at 14:57
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    @DanilGholtsman - that's called "Eminent Domain" laws and even USA has them. – user4012 Mar 11 '14 at 22:54
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    @Chad "Russia is a socialist state, there is no such thing a taxpayer money all of the money belongs to the government and is allotted to the people as the government deems appropriate." I suggest you learn what socialism is, and about modern Russia. By your logic the feudal kingdoms of Europe were socialist because the land was owned by the crown, which could requisition property on a whim. Socialism is a big tent of ideas, from British socialism after the second world war to Soviet. Russia abandoned socialism with the fall of the USSR. Your definition is erroneously simplistic. – inappropriateCode Sep 23 '16 at 10:26
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    @Chad What references do you need? I'm really struggling to understand your argument. It doesn't make sense. What happens if Washington decides that you longer deserve that property? Is the USA socialist? Socialist by what measure? Socialism, for example: Britain's post war socialist government? Socialism requires state ownership of the means of production; at least theoretically for the benefit of the people. If we just say any state which can seize property- – inappropriateCode Sep 23 '16 at 15:17
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    @Chad -on a whim is socialist, and that this is what it is to be socialist, then the feudal kingdoms of medieval Europe were socialist. Ancient Egypt is socialist. Everyone's socialist because any government can do that. Which is why I am very confused by your definition. – inappropriateCode Sep 23 '16 at 15:18
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Crimea is a very fertile agricultural region, and is often seen as a vacation spot for Russians. Those are two economic activities that while not economic powerhouses can still usually be net positives for a state economy.

That said, Russia's interests in Crimea are far more geopolitically strategic than economic. The Crimean port of Sevastopol is home to the only Russian warm water port, and provides a strategic buffer against invasion by sea. The Crimean War of 1853-56 was a humiliating defeat for the nascent Russian empire, and is one that Russians never again want to suffer. When Khrushchev gave the Crimea to Ukraine in the 1950s, it was widely unpopular for that reason.

  • Well, thank you for the answer! Actually I know about Putin's geopolitically strategic interests, so I just asked myself, is there any profit for people like me (by myself I don't like what Russia doing there but whatever). Is there any statistic data about Crimea income/expenditure? – Danil Gholtsman Mar 11 '14 at 14:01
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    I read some articles in russian, wich say that Crimea expenses was much more than income from tourism there. Actually there is natural gas in crimea, but Ukrainians say that it is very difficault to extract. I think Crimea is more geo-political for Russia – Arsen Mkrtchyan Mar 11 '14 at 16:21
  • @ArsenMkrt could you share with me, pls? – Danil Gholtsman Mar 11 '14 at 17:48
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    sure. please find it here(interfax.ru/business/362320) – Arsen Mkrtchyan Mar 11 '14 at 22:27
  • The fertility of Crimea this year is doubtful, as its agriculture relies on freshwater supplies from Ukraine that have been cut off. This will have an impact on this years harvest, and possibly also long-term damage to multiyear cultures simply due to lack of hydration. – Peteris May 9 '14 at 9:46
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Let's take the official numbers. Sorry for links in Ukrainian and Russian.

Profits

Budget for Republic of Crimea, signed by Parliament of Ukraine on Jan/21/2014. It is 5,377 bn UAH, or, at the rate of 8,4560 UAH/USD, is roughly $636 million.

GDP of Crimea in 2011 was $2,452 per capita or $5.88 billion.

Also, The Crimean tourism industry generates over 50% of the Crimean GDP, evidencing the significance of this sector for the republic. Obviously, this sector of economy has been completely eliminated after the invasion.

Expenses

After anschluss, director of an official Russian "Institute of Strategic Analysis" suggests the following amounts of subsidies:

  • Annually 250 billion RUR or, at today's rate of 35.0343 RUR/USD, is roughly $7.14 billion;
  • Kerch Strait Bridge, single time 100 billion RUR or $2.85 billion;

There are other losses Russian economy suffers due to invasion:

  • According to Centrobank of Russia, net capital outflow ranged just during Q1/2014 $50.6 billion;
    Other sources:

    The Telegraph: ECB: capital flight from Russia has hit $220bn

    The (optimistic) estimate of Ministry of Finances of Russia predicts annual net capital outflow at $70 to 80 billion;

  • Direct effect of sanctions is still counting, since international organizations keep finding and freezing assets of personals and companies involved in Russian war against Ukraine.
  • Keeping army active (not in barracks) and mobilized also has costs. I don't have numbers however.
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    Shouldn't the budget be listed under expenses? Also, over half of the budget was supposed to be paid for by the Ukraine. Russia is now responsible for that. The article I read that in lists some other expenses as well. – Louis May 8 '14 at 23:04
  • @Louis Well, budget is revenues and expenses. Revenues will certainly change due to loss of existing economic ties and obtaining some new ones. The structure of spending will, most likely, change as well — simply because the whole economy of an occupied territory is dramatically different to economy of a peaceful region. As per other expenses, yes, there are many, including need of establishing water and electricity supplies. – bytebuster May 8 '14 at 23:18
  • For now, situation has changed, don't you want to correct your answer, @bytebuster? – user2501323 May 24 '18 at 10:44

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