The consequences of the degradation of Russian-Ukrainian relations on the Russian economy

Andrej R. c Ermakov (), Natal’ja J. Dmitrieva () and Evgeniya M. Rubtsova ()
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Andrej R. c Ermakov: National Research Lobachevsky State University of Nizhni Novgorod
Natal’ja J. Dmitrieva: National Research Lobachevsky State University of Nizhni Novgorod
Evgeniya M. Rubtsova: National Research Lobachevsky State University of Nizhni Novgorod

Economic Consultant, 2019, vol. 28, issue 4, 52-61

Abstract: In March 2014, the Crimean Peninsula joined our country on the basis of the will of the majority of the Crimean population. As a result of this situation, two new subjects of the federation appeared on the geographical map: the Republic of Crimea and the city of Sevastopol. Russia has received a number of economic as well as political benefits, but also large-scale federal budget costs. The Republic of Crimea has become one of the most subsidized subjects of the Russian Federation, and the share of subsidies and transfers from the federal budget to the revenues of the consolidated budget of the Republic of Crimea in recent years was increased (67.2% in 2015 and 77.6% in 2009) and, first of all, to provide social payments to the population. In addition, significant capital investments are being made in the development of the infrastructure of Crimea, namely the construction of a road and railway bridge across the Strait of Kerchen, a gas branch, a new water pipeline, a new power line, roads on the territory of the Republic and much more. It should also be noted that the annexation of Crimea was followed by a "sanctions" war, which led to a stagnation-recession regime of functioning of Russia 's economy, and to a sharp decline in trade between Russia and Ukraine. In studying the information collected for the writing of the article, methods of analysis and synthesis were used, as well as methods of observation and collection of facts were used on the basis that the accession of the Crimean peninsula to Russia took place more than 5 years ago. The deterioration of Russian-Ukrainian relations has an extremely unfavourable impact on Russia 's economy. The losses of the domestic economy here do not lend themselves to simple arithmetic summation, but it is obvious that they are large and continue to grow. Of course, sooner or later the crisis scenario will end. In the interest of both sides of the conflict so that it will happen as soon as possible. Key words: economic sanctions, Crimea, the budget of the Republic of Crimea, financing of the development of the Republic of Crimea, investments in the economy of Crimea, integration of the Republic of Crimea and Sevastopol into the space of Russia (economy, transport, energy, gas, water), trade between Russia and Ukraine

Keywords: economic sanctions; Crimea; the budget of the Republic of Crimea; financing of the development of the Republic of Crimea; investments in the economy of Crimea; integration of the Republic of Crimea and Sevastopol into the space of Russia (economy; transport; energy; gas; water); trade between Russia and Ukraine (search for similar items in EconPapers)
JEL-codes: R19 (search for similar items in EconPapers)
Date: 2019
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