Russia Economy Minister: Crimea to Add $2.8 Billion a Year to Budget MOSCOW–The cost of integrating Crimea into Russia will be about 100 billion rubles ($2.8 billion) a year, Russia’s economy minister said Monday. Speaking to Rossiyskaya Gazeta, Russia’s official government newspaper, Alexei Ulyukayev said Russia will support Crimea to the tune of 100 billion rubles a year from 2015, not taking into account investment in infrastructure of the peninsula. Mr. Ulyukayev said Western sanctions represent “not even a zero-sum game, but a game with a negative result.” He said that while Western business opposes any sanctions, he admitted the “nervous environment of instability doesn’t give business and incentive to invest.” Mr. Ulyukayev said he expects Russia economy to grow 2% in 2014, below 2.5% outlook the ministry published at the end of 2013. The minister sees a deterioration of inflation environment, and expects inflation to hit an annualized 6.5% in March and soon to reach 7%. However, he said the central bank’s target of 5% is still attainable in 2014 due to expected slowing of price rise in the second half of the year. “I suppose, we have all the possibilities to remain within this target,” he said. Russia’s ruble, which has lost about 11% of its value since the start of the year, has more chances to “strengthen somewhat” than to weaken in the foreseeable future, Mr. Ulyukayev said. –Alexander Kolyandr
Posted on: Tue, 25 Mar 2014 08:12:09 +0000
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