Chechnya-2011: round up - 1

Chechnya-2011: round up - 1

Author: Timur Utsayev, Grozny, exclusively for VK

A statement was made in Grozny in mid-2011, saying that Chechnya may become a donor region in 5-7 years. Chechen Speaker of Parliament Dukuvakha Abdurakhmanov said that a little more time is needed and the republic will fill the federal budget: “Through development of agriculture, tourism, mineral sources, new factories, development of business and attracting investments.”

Chechen leader Ramzan Kadyrov recently told Prime Minister Putin in Moscow about fulfillment of the federal purpose program for socio-economic development of Chechnya in 2008-2011, the framework of which continues restoration of the republic. 120 billion rubles were provided for the program. Federal donations in 2011 relaunched over a hundred social facilities – hospitals, schools, nurseries. Kadyrov said that many facilities planned to open in 2012 were opened in 2011.

At the same time, the Chechen Minister for Economic Development and Trade, Abdula Magomadov, said that republican ministries and departments invited additional funds to regional economies in Russia as part of the federal purpose program. The list of federal purpose programs and regional purpose programs for realization in 2011 included 54 programs, 24 on the basis of co-financing from the federal budget and 30 from republican budgets. Agriculture and industry were set as priorities in 2011.

Agriculture


The Chechen parliament passed a bill on state support and stimulation of agriculture in 2011. The Federal Agriculture Ministry supported the Chechen agriculture sector in the first half of 2011 with additional funds. Agriculture Minister Yelena Skrynik visited Grozny and noted that the federal budget spent 1.5 billion rubles on agriculture. Reformation of agriculture was also realized, with implementation of new property forms which had been in equal conditions when state support had been provided. Chechnya started forming agricultural consumer cooperatives, logistical centers for storage, primary processing and packaging of agricultural products. Concerning problems of Chechen agriculture, specialists cite lack of financing melioration, restoration of facilities, poor access to credits and problems in promoting investment projects and the need for mine clearance on agricultural lands and in forests. These problems are to be resolved in 2012 and the next few years.


Industry

As a result of cabinet reshuffles in the Chechen government in mid-2011, Galas Taymaskhanov, former deputy head of the Presidential Administration of Chechnya, became Minister for Industry and Energy. He presented a program for development of local industry in two months. Funds were immediately issued for realization of the program. Enterprises were selected to spend the funds. The republic was to organize the assembling of photodiode illumination by the end of the year and prepare the scientific-industrial basis for production of solar cells. The Gudermes medical instrument factory has manufactured the first portion of products. The Orgtekhnika State Enterprise was launched, solving the problem of electrodes in Chechnya. Another sphere is repairs and production of petroleum equipment. Repairs of drilling machines and pumps have already started. The Chechenavto Enterprise as launched in Argun in August. It produced the first Lada-Priora cars, replacing the 7th model Zhiguli.

Transport

The related ministry developed a project to form a port-based special economic zone (PBSEZ) in the area of the Grozny Airport. The administration, residents, border and customs services may be based on 157 hectares near the airport. There will be two facilities for packaging tea, coffee and other food products. There are also plans to establish enterprises to repair aircraft. “Preliminary agreements have already been reached with a South Korean company providing components for household appliances at the PBSEZ. “Development of the special port-based zone will open 6,500 workplaces and attract foreign capital, bring serious receipts to the republican budget, allow development of the airport, its full reconstruction, make it advanced, build the second runway, purchase new aircraft and equipment for the republican harbor,” Minister for Transport and Communications Ramzan Cherkhigov said.

The first plane carrying 58 passengers made its flight on the Astana-Grozny route in 2011. Another route was opened after Turkey decided to carry out transits through Grozny to Surgut. Besides, the Chechen capital may soon establish a direct air link with Europe. Such a proposal was made at Grozny Airport by the authorities of UTair, one of the largest Russian air companies.


To be continued.

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