North Caucasus to receive 2 trillion rubles in investments

The 4th Invest in Caucasus Business Forum was held in Mineralnye Vody on December 3-4. Within its framework, Russian Deputy Prime Minister Vitaly Mutko said that the North Caucasus is Russia's important geostrategic region, so its development is a priority for the state. The main tasks, according to him, are improving the quality of life and improving the investment climate in the North Caucasus Federal District.

In the framework of national projects, the district will receive about 200 billion rubles until 2024. In general, about 2 trillion rubles will be invested in the North-Caucasian Federal District in the coming years.

Investments will be aimed at supporting small business, developing tourism potential, Mutko said. "Almost every year, the tourist flow increases by 15-20%," he noted.

Mutko emphasized that for now the government remains the main investor in the North Caucasus, therefore, the role of both federal and regional authorities is to create favorable conditions for people and business, improve macroeconomic indicators, and promote the development of education and human capital.

The political scientist, director of the expert council of the 'South' think tank Sergey Starovoitov, speaking with the correspondent of Vestnik Kavkaza, 2 trillion can be invested in all areas of the economy of the North Caucasus. "Wherever you invest in the North Caucasus, everything will benefit the region. Now literally everything should be developed - the social sphere, industry, high technology, and much more. Since Mutko talked about national projects in the first place, I think the funds will be used to create industrial production and a comfortable urban environment, as well as medicine and education," he said.

"Since funds from national projects and state programs are distributed on the basis of co-financing, local authorities should find certain sources of local budget funding, draw up appropriate programs, after which they will receive money under federal target programs," Sergey Starovoitov pointed out.

A scientist of the Institute for Economics of the RAS, Alexander Karavaev, in turn, noted that the declared volume of four-year investments corresponds to the scale of federal target programs involved in the region before the idea of ​​national projects was drawn up. "They were about 500 billion rubles a year, which means exactly 2 trillion rubles in 4 years. And it is important that they continue to develop the region, it indicates the importance attached to the Caucasus by the government," he said.

"Part of these investments will be used in road construction. According to recently announced Rosavtodor programs until 203, the Kavkaz highway will be modernized. Another part of the funds will be used to increase energy capacity and develop the port facilities in Novorossiysk, Tuapse, Taman. Of course, resorts also require investments," Alexander Karavaev said.

"It should also be noted that domestic investment in the Caucasus will stimulate the interest of external investors. The money allocated to national projects implies that financing schemes are built in collaboration with private investors. Azerbaijan and Turkey can be one of the main investors. And a wider flow of other investors can be expected," the scientist of the Institute for Economics of the RAS concluded.