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Russia to stop financing Crimea

The Russian State Duma prepared a draft law on the transition of Crimea to complete self-sufficiency 
Russia to stop financing Crimea

According to the Russian media, the State Duma prepared a draft law on the transition of Crimea to complete self-sufficiency, in order to stop financing of the peninsula from the federal budget, Joinfo.ua reports with reference to KrymRealii.

The document would allow the so-called Crimean “government” not to rely on federal subsidies, but make money on their own. If adopted, the law will free the Kremlin from any financial commitments to Crimea.

Russian authorities say financing for the Crimea is “impossible to supervise,” and the Crimean collaborators accused the federal government of the permanent underfunding, the edition reports.

The true reason of the quarrel is a simple fact: the Kremlin has no money for the maintenance of Crimea.

The author of the draft law, the State Duma deputy Mikhail Bryachak said: “It is clear that because of the deteriorating situation in the (Russian – Ed.) economy we will not be able to provide Crimea with money, as it was with some Russian regions. So we have to come up with an original idea and put it into practice. If you do not give money, give an instrument, to let Crimea to earn the most, “- admitted member of parliament. So far only he dared to call a spade a spade.

According to Bryachak, the new document is a rewritten last year’s law on “Free Economic Area” in the peninsula, which did not work. Now, the federal government plans to introduce in Crimea a “special regime” of taxation, land use, regulation of urban activities, etc. Some Russian laws and regulations will not be valid there.

The declared goal is to attract foreign investors, flanking the anti-Russian sanctions, and to return Russian capital in the framework of the “financial amnesty”. The law will provide foreigners with a visa-free entry to the annexed territories on the basis of the migration card. The authors of the document have not specified yet, how they will involve foreign entrepreneurs. It was clearly voiced that “the obligation of the Russian Federation to other states under international treaties, agreements and conventions to which the Russian Federation is a party, are not implemented in Crimea for those states that do not recognize the independence of Crimea and its entry into the Russian Federation “.

In the case of the adoption of the new law, it will not bring the desired result. Firstly, the Crimea is “a gray area” in which serious investors will not invest. You can not drum up big business, but to recognize that international law does not apply in the territory. Secondly, last year Putin proclaimed “financial amnesty” failed right at the start. Since the beginning of the annexation of Ukrainian peninsula and the war in Donbas, capital flees the country and no one is going to return it.

According to the edition, a free economic area, even under the most favorable conditions, can provide tangible results only in the medium term.

The Law on the notorious “free economic area” did not work, and why the new instrument should give the result is unclear. These are the reasons for the actual cancellation of the federal financing program for Crimea, stated the edition.